Document:

Exhibit 4.8 

 

	 

INVESTORS’
RIGHTS AGREEMENT

 

by
and among

 

Edge
Therapeutics, Inc.,

 

Venrock
Healthcare Capital Partners II, L.P.,

 

and

 

the
other Investors named herein

	 

April
6, 2015

 

    	 

    	 

    

 

	 	 	 	 	 	 
	 	 	 	TABLE OF CONTENTS	 	
	 	 	 	 	 	 
	 	 	 	 	 	 Page
	 	 	 	 	 	 
	1.	    Definitions	 	1
	 	 	 	 	 
	2.	    Registration Rights	 	4
	 	2.1.	 	Demand Registration	 	4
	 	2.2.	 	Company Registration	 	6
	 	2.3.	 	Underwriting Requirements	 	6
	 	2.4.	 	Obligations of the Company	 	7
	 	2.5.	 	Furnish Information	 	9
	 	2.6.	 	Expenses of Registration	 	9
	 	2.7.	 	Delay of Registration	 	9
	 	2.8.	 	Indemnification	 	9
	 	2.9.	 	Reports Under Exchange Act	 	12
	 	2.10.	 	Limitations on Subsequent Registration Rights	 	12
	 	2.11.	 	“Market Stand-off” Agreement	 	12
	 	2.12.	 	Restrictions on Transfer	 	13
	 	2.13.	 	Transfer of Registration Rights	 	15
	 	2.14.	 	Termination of Registration Rights	 	15
	 	 	 	 	 	 
	3.	    Information and Observer Rights	 	15
	 	3.1.	 	Information Rights	 	15
	 	3.2.	 	Inspection	 	16
	 	3.3.	 	Observer Rights	 	16
	 	3.4.	 	Termination of Information, Inspection and Observer Rights	 	16
	 	3.5.	 	Confidentiality	 	16
	 	 	 	 	 	 
	4.	    Rights to Future Stock Issuances	 	17
	 	4.1.	 	Right of First Offer	 	17
	 	4.2.	 	Termination	 	18
	 	 	 	 	 	 
	5.	    Additional Covenants	 	18
	 	5.1.	 	Indemnification Matters	 	18
	 	5.2.	 	Termination of Covenants	 	19

 

    	 

    	 

    

 

	 	 	 	 	 	 
	6.	    Miscellaneous	 	19
	 	6.1.	 	Successors and Assigns	 	19
	 	6.2.	 	Governing Law	 	19
	 	6.3.	 	Counterparts	 	19
	 	6.4.	 	Titles and Subtitles	 	20
	 	6.5.	 	Notices	 	20
	 	6.6.	 	Amendments and Waivers	 	20
	 	6.7.	 	Severability	 	21
	 	6.8.	 	Aggregation of Stock	 	21
	 	6.9.	 	Additional Investors	 	21
	 	6.10.	 	Entire Agreement	 	21
	 	6.11.	 	Delays or Omissions	 	21

  

	Schedule A 	-	     Schedule of Investors
	Schedule B	-	     Schedule of Stockholders

 

    	 

    	 

    

  

INVESTORS’
RIGHTS AGREEMENT

 

THIS
INVESTORS’ RIGHTS AGREEMENT (this “Agreement”), is made as of the 6th day of April 2015, by
and among Edge Therapeutics, Inc., a Delaware corporation (the “Company”), Venrock Healthcare Capital Partners
II, L.P. (the “Lead Investor”) and each of the other investors listed on Schedule A hereto, each of
which, together with the Lead Investor, is referred to in this Agreement as an “Investor” including any Additional
Purchaser (as defined in the Purchase Agreement) that becomes a party to this Agreement in accordance with Section 6.9
hereof.

 

RECITALS

 

WHEREAS,
the Company and the Investors are parties to the Series C-2 Preferred Stock Purchase Agreement of even date herewith (the “Purchase
Agreement”); and

 

WHEREAS,
in order to induce the Company to enter into the Purchase Agreement and to induce the Investors to invest funds in the Company
pursuant to the Purchase Agreement, the Investors and the Company hereby agree that this Agreement shall govern the rights of
the Investors to cause the Company to register shares of Common Stock issuable to the Investors, to receive certain information
from the Company, and to participate in future equity offerings by the Company, and shall govern certain other matters as set
forth in this Agreement;

 

NOW,
THEREFORE, the parties hereby agree as follows:

 

1.           Definitions. For purposes of this Agreement:

 

1.1.           
“Affiliate” means, with respect to any specified Person, any other Person who, directly or indirectly, controls,
is controlled by, or is under common control with such Person, including without limitation any general partner, managing member,
officer or director of such Person or any venture capital fund now or hereafter existing that is controlled by one or more general
partners or managing members of, or shares the same management company with, such Person.

 

1.2.           
“Common Stock” means shares of the Company’s common stock, par value $0.00033 per share.

 

1.3.            “Competitor” means a Person engaged, directly or indirectly (including through any partnership, limited
liability company, corporation, joint venture or similar arrangement (whether now existing or formed hereafter)), in the discovery
and development of hospital based therapies for the prevention or treatment of brain hemorrhages and associated complications.
but shall not include any financial investment firm or collective investment vehicle that, together with its Affiliates, holds
less than ten percent (10)% of the outstanding equity of any Competitor and does not, nor do any of its Affiliates, have a right
to designate any members of the Board of Directors of any Competitor.

 

1.4.           
“Damages” means any loss, damage, claim or liability (joint or several) to which a party hereto may become
subject under the Securities Act, the Exchange Act, or other federal or state law, insofar as such loss, damage, claim or liability
(or any action in respect thereof) arises out of or is based upon: (i) any untrue statement or alleged untrue statement of a material
fact contained in any registration statement of the Company, including any preliminary prospectus or final prospectus contained
therein or any amendments or supplements thereto; (ii) an omission or alleged omission to state therein a material fact required
to be stated therein, or necessary to make the statements therein not misleading; or (iii) any violation or alleged violation
by the indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state
securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law.

 

    	 

    	 

    

 

1.5.           
“Derivative Securities” means any securities or rights convertible into, or exercisable or exchangeable for
(in each case, directly or indirectly), Common Stock, including options and warrants.

 

1.6.           
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder.

 

1.7.           
“Excluded Registration” means (i) an IPO; (ii) a registration relating to the sale of securities to employees
of the Company or a subsidiary pursuant to a stock option, stock purchase, or similar plan; (iii) a registration relating to an
SEC Rule 145 transaction; (iv) a registration on any form that does not include substantially the same information as would be
required to be included in a registration statement covering the sale of the Registrable Securities; or (v) a registration in
which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered.

 

1.8.           
“Form S-1” means such form under the Securities Act as in effect on the date hereof or any successor registration
form under the Securities Act subsequently adopted by the SEC.

 

1.9.           
“Form S-3” means such form under the Securities Act as in effect on the date hereof or any registration form
under the Securities Act subsequently adopted by the SEC that permits incorporation of substantial information by reference to
other documents filed by the Company with the SEC.

 

1.10.         
“GAAP” means generally accepted accounting principles in the United States.

 

1.11.         
“Holder” means any holder of Registrable Securities who is a party to this Agreement.

 

1.12.       
  “Immediate Family Member” means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including, adoptive
relationships, of a natural person referred to herein.

 

1.13.         
“Initiating Holders” means, collectively, Holders who properly initiate a registration request under this Agreement.

 

    	 

    	 

    

  

1.14.         
“IPO” means the Company’s first firmly underwritten public offering of its Common Stock pursuant to a
registration statement under the Securities Act.

 

1.15.       
  “Major Investor” means any Investor that, individually or together with such Investor’s Affiliates, holds
at least 200,000 Series C-2 Shares (as adjusted for any stock split, stock dividend, combination, or other recapitalization or
reclassification effected after the date hereof).

 

1.16.       
  “New Securities” means, collectively, any Preferred Stock or Common Stock of the Company, whether or not currently
authorized, as well as rights, options, or warrants to purchase such Preferred Stock or Common Stock, or securities of any type
whatsoever that are, or may become, convertible or exchangeable into or exercisable for such Preferred Stock or Common Stock.

 

1.17.         
“Person” means any individual, corporation, partnership, trust, limited liability company, association or other
entity.

 

1.18.       
  “Preferred Stock” means, collectively, shares of the Company’s Series A Preferred Stock, Series B Preferred
Stock, Series B-1 Preferred Stock, Series C Preferred Stock, Series C-1 Preferred Stock and Series C-2 Preferred Stock.

 

1.19.         
“Registrable Securities” means (i) the Common Stock issuable or issued upon conversion of the Series
C-2 Preferred Stock to be issued; (ii) the Common Stock issuable or issued upon conversion of the Series C-1 Preferred
Stock to be issued pursuant to the exercise of warrants granted to Hercules Technology Growth Capital, Inc. pursuant to the Warrant
Agreement; and (iii) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, or other security
that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares referenced
in clause (i) or (ii) above; excluding in all cases, however, any Registrable Securities sold by a Person in a transaction
in which the applicable rights under this Agreement are not assigned pursuant to Subsection 6.1, and excluding for purposes
of Section 2 any shares for which registration rights have terminated pursuant to Subsection 2.14 of
this Agreement.

 

1.20.      
  “Registrable Securities then outstanding” means the number of shares determined by adding the number of shares
of outstanding Common Stock that are Registrable Securities and the number of shares of Common Stock issuable (directly
or indirectly) pursuant to then exercisable and/or convertible securities that are Registrable Securities.

 

1.21.         
“Restated Certificate” means the Company’s Amended and Restated Certificate of Incorporation, as amended
and in effect from time to time.

 

1.22.       
  “Restricted Securities” means the securities of the Company required to be notated with the legend set forth
in Subsection 2.12(b) hereof.

 

1.23.         
“SEC” means the Securities and Exchange Commission.

 

1.24.         
“SEC Rule 144” means Rule 144 promulgated by the SEC under the Securities Act.

 

    	 

    	 

    

 

1.25.       
“SEC Rule 145” means Rule 145 promulgated by the SEC under the Securities Act.

 

1.26.       
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

1.27.       
“Selling Expenses” means all underwriting discounts, selling commissions, and stock transfer taxes applicable
to the sale of Registrable Securities, and fees and disbursements of counsel for any Holder, except for the fees and disbursements
of the Selling Holder Counsel borne and paid by the Company as provided in Subsection 2.6.

 

1.28.       
“Series C-2 Preferred Stock” means shares of the Company’s Series C-2 Preferred Stock, par value $0.00033
per share.

 

1.29.       
“Stockholder” means any holder that, individually or together with such Stockholder’s Affiliates, holds
at least 1.0% of the Company’s outstanding Common Stock, after giving effect to conversion into Common Stock of all outstanding
Preferred Stock (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected
after the date hereof) and listed on Schedule B hereto.

 

1.30.       
“Warrant Agreement” means that certain Warrant Agreement, dated August 28, 2014, between the Company and Hercuules
technology Growth Capital, Inc.

 

2.            Registration
Rights. The Company covenants and agrees as follows:

 

2.1.         
Demand Registration.

 

  (a)               
Form S-1 Demand. If at any time commencing one hundred eighty (180) days after the effective date of the registration statement
for the IPO the Company receives a request from Holders of at least fifty percent (50%) of the Registrable Securities then outstanding
that the Company file a Form S-1 registration statement with respect to at least twenty-five percent (25%) of the Registrable
Securities then outstanding (or a lesser percent if the anticipated aggregate offering price, net of Selling Expenses, would exceed
$20 million), then the Company shall (x) within ten (10) days after the date such request is given, give notice thereof (the “Demand
Notice”) to all Holders other than the Initiating Holders; and (y) as soon as practicable, and in any event within sixty
(60) days after the date such request is given by the Initiating Holders, file a Form S-1 registration statement under the Securities
Act covering all Registrable Securities that the Initiating Holders requested to be registered and any additional Registrable
Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder
to the Company within twenty (20) days of the date the Demand Notice is given, and in each case, subject to the limitations of
Subsections 2.1(c), 2.1(d) and 2.3.

 

  (b)               
Form S-3 Demand. If at any time when it is eligible to use a Form S-3 registration statement, the Company receives a request
from Holders of at least twenty five (25%) of the Registrable Securities that the Company file a Form S-3 registration statement
with respect to outstanding Registrable Securities of such Holders having an anticipated aggregate offering price, net of Selling
Expenses, of at least $5 million, then the Company shall (i) within ten (10) days after the date such request is given, give a
Demand Notice to all Holders other than the Initiating Holders; and (ii) as soon as practicable, and in any event within forty-five
(45) days after the date such request is given by the Initiating Holders, file a Form S-3 registration statement under the Securities
Act covering all Registrable Securities requested to be included in such registration by any other Holders, as specified by notice
given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is given, and in each case, subject
to the limitations of Subsections 2.1(c), 2.1(d) and Section 2.3;

 

    	 

    	 

    

 

  (c)              
Notwithstanding the foregoing obligations, if the Company furnishes to Holders requesting a registration pursuant to this Subsection
2.1 a certificate signed by the Company’s chief executive officer stating that in the good faith judgment of the Company’s
Board of Directors it would be materially detrimental to the Company and its stockholders for such registration statement to either
become effective or remain effective for as long as such registration statement otherwise would be required to remain effective,
because such action would (i) materially interfere with a significant acquisition, corporate reorganization, or other similar
transaction involving the Company; (ii) require premature disclosure of material information that the Company has a bona fide
business purpose for preserving as confidential; or (iii) render the Company unable to comply with requirements under the Securities
Act or Exchange Act, then the Company shall have the right to defer taking action with respect to such filing for a period of
not more than ninety days (90) after the request of the Initiating Holders is given, and any time periods with respect to filing
or effectiveness thereof shall be tolled correspondingly; provided, however, that the Company may not invoke this
right more than twice in any twelve (12) month period; and provided further that the Company shall not register
any securities for its own account or that of any other stockholder during such ninety (90) day period other than an Excluded
Registration.

 

  (d)              
The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Subsection 2.1(a),
(i) during the period that is sixty (60) days before the Company’s good faith estimate of the date of filing of, and ending
on a date that is one hundred eighty (180) days after the effective date of, a Company-initiated registration, provided
that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become
effective; (ii) after the Company has effected two registrations pursuant to Subsection 2.1(a); or (iii) if the Initiating
Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request
made pursuant to Subsection 2.1(b). The Company shall not be obligated to effect, or to take any action to effect, any
registration pursuant to Subsection 2.1(b) (i) during the period that is sixty (60) days before the Company’s good
faith estimate of the date of filing of, and ending on a date that is one hundred eighty (180) days after the effective date of,
(i) a Company-initiated registration, provided that the Company is actively employing in good faith commercially reasonable
efforts to cause such registration statement to become effective; or (ii) if the Company has effected two registrations pursuant
to Subsection 2.1(b) within the twelve (12) month period immediately preceding the date of such request. A registration
shall not be counted as “effected” for purposes of this Subsection 2.1(d) until such time as the applicable
registration statement has been declared effective by the SEC, unless the Initiating Holders withdraw their request for such registration,
elect not to pay the registration expenses therefor, and forfeit their right to one demand registration statement pursuant to
Subsection 2.6, in which case such withdrawn registration statement shall be counted as “effected” for purposes
of this Subsection 2.1(d).

 

    	 

    	 

    

 

2.2.           
Company Registration. If the Company proposes to register (including, for this purpose, a registration effected by the
Company for stockholders other than the Holders) any of its Common Stock under the Securities Act in connection with the public
offering of such securities solely for cash (other than in an Excluded Registration), the Company shall, at such time, promptly
give each Holder notice of such registration. Upon the request of each Holder given within fifteen (15) days after such notice
is given by the Company, the Company shall, subject to the provisions of Subsection 2.3, cause to be registered all of
the Registrable Securities that each such Holder has requested to be included in such registration. The Company shall have the
right to terminate or withdraw any registration initiated by it under this Subsection 2.2 before the effective date of
such registration, whether or not any Holder has elected to include Registrable Securities in such registration. The expenses
(other than Selling Expenses) of such withdrawn registration shall be borne by the Company in accordance with Subsection 2.6.

 

2.3.           
Underwriting Requirements.

 

   (a)               
If, pursuant to Subsection 2.1, the Initiating Holders intend to distribute the Registrable Securities covered by
their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to Subsection
2.1, and the Company shall include such information in the Demand Notice. The underwriter(s) will be selected by the Company
and shall be reasonably acceptable to a majority in interest of the Initiating Holders. In such event, the right of any Holder
to include such Holder’s Registrable Securities in such registration shall be conditioned upon such Holder’s participation
in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided
herein. All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided
in Subsection 2.4(e)) enter into an underwriting agreement in customary form with the underwriter(s) selected for such
underwriting. Notwithstanding any other provision of this Subsection 2.3, if the managing underwriter advises the Initiating
Holders that marketing factors require a limitation on the number of shares to be underwritten, then the Initiating Holders shall
so advise all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of Registrable
Securities that may be included in the underwriting shall be allocated among such Holders of Registrable Securities, including
the Initiating Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned by each Holder
or in such other proportion as shall mutually be agreed to by all such selling Holders; provided, however, that
the number of Registrable Securities held by the Holders to be included in such underwriting shall not be reduced unless all other
securities not held by Holders are first entirely excluded from the underwriting. Notwithstanding the foregoing, in no event shall
the amount of securities of the selling Holders included in the offering be reduced below twenty-five percent (25%) of the total
amount of securities included in such offering, unless such offering is the IPO, in which case the selling Holders may be excluded
if the underwriters make the determination described above and no other stockholder’s securities are included in such offering.

 

    	 

    	 

    

 

(b)               
In connection with any offering involving an underwriting of shares of the Company’s capital stock pursuant to Subsection
2.2, the Company shall not be required to include any of the Holders’ Registrable Securities in such underwriting unless
the Holders accept the terms of the underwriting as agreed upon between the Company and its underwriters, and then only in such
quantity as the underwriters in their sole discretion determine will not jeopardize the success of the offering by the Company.
If the total number of securities, including Registrable Securities, requested by stockholders to be included in such offering
exceeds the number of securities to be sold (other than by the Company) that the underwriters in their reasonable discretion determine
is compatible with the success of the offering, then the Company shall be required to include in the offering only that number
of such securities, including Registrable Securities, which the underwriters and the Company in their sole discretion determine
will not jeopardize the success of the offering. If the underwriters determine that less than all of the Registrable Securities
requested to be registered can be included in such offering, then the Registrable Securities that are included in such offering
shall be allocated among the selling Holders in proportion (as nearly as practicable to) the number of Registrable Securities
owned by each selling Holder or in such other proportions as shall mutually be agreed to by all such selling Holders. Notwithstanding
the foregoing, in no event shall the number of Registrable Securities included in the offering be reduced unless all other securities
(other than securities to be sold by the Company) are first entirely excluded from the offering. For purposes of the provision
in this Subsection 2.3(b) concerning apportionment, for any selling Holder that is a partnership, limited liability company,
or corporation, the partners, members, retired partners, retired members, stockholders, and Affiliates of such Holder, or the
estates and Immediate Family Members of any such partners, retired partners, members, and retired members and any trusts for the
benefit of any of the foregoing Persons, shall be deemed to be a single “selling Holder,” and any pro rata reduction
with respect to such “selling Holder” shall be based upon the aggregate number of Registrable Securities owned by
all Persons included in such “selling Holder,” as defined in this sentence.

 

(c)               
For purposes of Section 2.1, a registration shall not be counted as “effected” if, as a result of an exercise
of the underwriter’s cutback provisions in Subsection 2.3(a), fewer than fifty percent (50%) of the total number of
Registrable Securities that Holders have requested to be included in such registration statement are actually included.

 

2.4.         Obligations
of the Company. Whenever required under this Section 2 to effect the registration of any Registrable Securities, the
Company shall, as expeditiously as reasonably possible:

 

(a)                 prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable
efforts to cause such registration statement to become effective and, upon the request of the Holders of a majority of the Registrable
Securities registered thereunder, keep such registration statement effective for a period of up to one hundred twenty (120) days
or, if earlier, until the distribution contemplated in the registration statement has been completed; provided, however,
that (i) such one hundred twenty (120) day period shall be extended for a period of time equal to the period the Holder refrains,
at the request of an underwriter of Common Stock (or other securities) of the Company, from selling any securities included in
such registration, and (ii) in the case of any registration of Registrable Securities on Form S-3 that are intended to be offered
on a continuous or delayed basis, subject to compliance with applicable SEC rules, such one hundred twenty (120) day period shall
be extended for up to an additional 30 days, if necessary, to keep the registration statement effective until all such Registrable
Securities are sold;

 

    	 

    	 

    

  

(b)               
prepare and file with the SEC such amendments and supplements to such registration statement, and the prospectus used in connection
with such registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of
all securities covered by such registration statement;

 

(c)               
furnish to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the
Securities Act, and such other documents as the Holders may reasonably request in order to facilitate their disposition of their
Registrable Securities;

 

(d)               
use its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such
other securities or blue-sky laws of such jurisdictions as shall be reasonably requested by the selling Holders; provided that
the Company shall not be required to qualify to do business or to file a general consent to service of process in any such states
or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities
Act;

 

(e)               
in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual
and customary form, with the underwriter(s) of such offering;

 

(f)                
use its commercially reasonable efforts to cause all such Registrable Securities covered by such registration statement to be
listed on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar
securities issued by the Company are then listed;

 

(g)               
provide a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and provide a CUSIP
number for all such Registrable Securities, in each case not later than the effective date of such registration;

 

(h)               
promptly make available for inspection by the selling Holders, any underwriter(s) participating in any disposition pursuant to
such registration statement, and any attorney or accountant or other agent retained by any such underwriter or selected by the
selling Holders, all financial and other records, pertinent corporate documents, and properties of the Company, and cause the
Company’s officers, directors, employees, and independent accountants to supply all information reasonably requested by
any such seller, underwriter, attorney, accountant, or agent, in each case, as necessary or advisable to verify the accuracy of
the information in such registration statement and to conduct appropriate due diligence in connection therewith;

 

(i)                
notify each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has
been declared effective or a supplement to any prospectus forming a part of such registration statement has been filed; and

 

(j)                
after such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend
or supplement such registration statement or prospectus.

 

    	 

    	 

    

  

In
addition, the Company shall ensure that, at all times after any registration statement covering a public offering of securities
of the Company under the Securities Act shall have become effective, its insider trading policy shall provide that the Company’s
directors may implement a trading program under Rule 10b5-1 of the Exchange Act.

 

2.5.          Furnish
Information. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this
Section 2 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company
such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities
as is reasonably required to effect the registration of such Holder’s Registrable Securities.

 

2.6.          Expenses
of Registration. All expenses (other than Selling Expenses) incurred in connection with registrations, filings, or
qualifications pursuant to Section 2, including all registration, filing, and qualification fees; printers’ and accounting
fees; fees and disbursements of counsel for the Company; and the reasonable fees and disbursements, not to exceed $25,000, of
one counsel for the selling Holders (“Selling Holder Counsel”), shall be borne and paid by the Company; provided,
however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to
Subsection 2.1 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the
Registrable Securities to be registered (in which case all selling Holders shall bear such expenses pro rata based upon the number
of Registrable Securities that were to be included in the withdrawn registration), unless the Holders of a majority of the Registrable
Securities agree to forfeit their right to one registration pursuant to Subsections 2.1(a) or 2.1(b), as the case
may be; provided further that if, at the time of such withdrawal, the Holders shall have learned of a material adverse
change in the condition, business, or prospects of the Company from that known to the Holders at the time of their request and
have withdrawn the request with reasonable promptness after learning of such information then the Holders shall not be required
to pay any of such expenses and shall not forfeit their right to one registration pursuant to Subsections 2.1(a) or 2.1(b).
All Selling Expenses relating to Registrable Securities registered pursuant to this Section 2 shall be borne and paid by
the Holders pro rata on the basis of the number of Registrable Securities registered on their behalf.

 

2.7.          Delay
of Registration.  No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any
registration pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or
implementation of this Section 2.

 

    	 

    	 

    

 

2.8.          Indemnification.     If
any Registrable Securities are included in a registration statement under this Section 2:

 

(a)          To
the extent permitted by law, the Company (for purposes of this Subsection 2.8(a) an “Indemnifying Party”)
will indemnify and hold harmless each selling Holder, and the partners, members, officers, directors, and stockholders of each
such Holder; legal counsel and accountants for each such Holder; any underwriter (as defined in the Securities Act) for each such
Holder; and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange
Act (each for purposes of this Subsection 2.8(a) an “Indemnified Party”), against any Damages, and the
Indemnifying Party will pay to each such Indemnified Party any legal or other expenses reasonably incurred thereby in connection
with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided,
however, that the indemnity agreement contained in this Subsection 2.8(a) shall not apply to amounts paid in settlement
of any such claim or proceeding if such settlement is effected without the consent of the Indemnifying Party nor shall the Indemnifying
Party be liable for any Damages to the extent that they arise out of or are based upon actions or omissions made in reliance upon
and in conformity with written information furnished by or on behalf of any such Indemnified Party expressly for use in connection
with such registration.

 

(b)          To
the extent permitted by law, each selling Holder, severally and not jointly (for purposes of this Subsection 2.8(a) an
“Indemnifying Party”), will indemnify and hold harmless the Company, and each of its directors, each of its
officers who has signed the registration statement, each Person (if any), who controls the Company within the meaning of the Securities
Act, legal counsel and accountants for the Company, any underwriter (as defined in the Securities Act), any other Holder selling
securities in such registration statement, and any controlling Person of any such underwriter or other Holder (each for purposes
of this Subsection 2.8(a) an “Indemnified Party”), against any Damages, in each case only to the extent
that such Damages arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information
furnished by or on behalf of such Indemnifying Party expressly for use in connection with such registration; and each Indemnifying
Party will pay to the Indemnified Party any legal or other expenses reasonably incurred thereby in connection with investigating
or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however,
that the indemnity agreement contained in this Subsection 2.8(b) shall not apply to amounts paid in settlement of any such
claim or proceeding if such settlement is effected without the consent of the Indemnifying Party; and provided further
that in no event shall the aggregate amounts payable by any Indemnifying Party by way of indemnity or contribution under Subsections
2.8(b) and 2.8(d) exceed the proceeds from the offering received by such Indemnifying Party (net of any Selling Expenses
paid by such Indemnifying Party), except in the case of fraud or willful misconduct by such Indemnifying Party.

 

(c)          Promptly
after receipt by an Indemnified Party under Subsection 2.8(a) or 2.8(b) of notice of the commencement of
any action (including any governmental action) for which a party may be entitled to indemnification hereunder, such Indemnified
Party will, if a claim in respect thereof is to be made against any Indemnifying Party under this Subsection 2.8, give
the Indemnifying Party notice of the commencement thereof. The Indemnifying Party shall have the right to participate in such
action and, to the extent the Indemnifying Party so desires, participate jointly with any other Indemnifying Party to which notice
has been given, and to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however,
that an Indemnified Party (together with all other Indemnified Parties that may be represented without conflict by one counsel)
shall have the right to retain one separate counsel, with the fees and expenses to be paid by the Indemnifying Party, if representation
of such Indemnified Party by the counsel retained by the Indemnifying Party would be inappropriate due to actual or potential
conflicts of interest between such Indemnified Party and any other party represented by such counsel in such action. The failure
to give notice to the Indemnifying Party within a reasonable time of the commencement of any such action shall relieve such Indemnifying
Party of any liability to the Indemnified Party under this Subsection 2.8, to the extent that such failure materially prejudices
the Indemnifying Party’s ability to defend such action. The failure to give notice to the Indemnifying Party will not relieve
it of any liability that it may have to any Indemnified Party otherwise than under this Subsection 2.8.

 

    	 

    	 

    

 

(d)          To
provide for just and equitable contribution to joint liability under the Securities Act in any case in which either: (i) any party
otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this Subsection 2.8 but it
is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of
time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding
the fact that this Subsection 2.8 provides for indemnification in such case, or (ii) contribution under the Securities
Act may be required on the part of any party hereto for which indemnification is provided under this Subsection 2.8, then,
and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which
they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of each
of the Indemnifying Party and the Indemnified Party in connection with the statements, omissions, or other actions that resulted
in such loss, claim, damage, liability, or expense, as well as to reflect any other relevant equitable considerations. The relative
fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether
the untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a material fact, relates to
information supplied by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge,
access to information, and opportunity to correct or prevent such statement or omission; provided, however, that,
in any such case (x) no Holder will be required to contribute any amount in excess of the public offering price of all such Registrable
Securities offered and sold by such Holder pursuant to such registration statement, and (y) no Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty
of such fraudulent misrepresentation; and provided further that in no event shall a Holder’s liability pursuant
to this Subsection 2.8(d), when combined with the amounts paid or payable by such Holder pursuant to Subsection 2.8(b),
exceed the proceeds from the offering received by such Holder, except in the case of willful misconduct or fraud by such Holder.

 

(e)          Notwithstanding
the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered
into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the
underwriting agreement shall control.

 

(f)          Unless
otherwise superseded by an underwriting agreement entered into in connection with the underwritten public offering, the obligations
of the Company and Holders under this Subsection 2.8 shall survive the completion of any offering of Registrable Securities
in a registration under this Section 2, and otherwise shall survive the termination of this Agreement.

 

    	 

    	 

    

 

2.9.          Reports
Under Exchange Act. With a view to making available to the Holders the benefits of SEC Rule 144 and any other rule
or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration
or pursuant to a registration on Form S-3, the Company shall:

 

 (a)          make
and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144, at all times
after the effective date of the registration statement filed by the Company for the IPO;

 

 (b)          use
commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company
under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements);
and

 

 (c)          furnish
to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) to the extent accurate, a written
statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days
after the effective date of the registration statement filed by the Company for the IPO), the Securities Act, and the Exchange
Act (at any time after the Company has become subject to such reporting requirements), or that it qualifies as a registrant whose
securities may be resold pursuant to Form S-3 (at any time after the Company so qualifies); and (ii) such other information as
may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such securities
without registration (at any time after the Company has become subject to the reporting requirements under the Exchange Act) or
pursuant to Form S-3 (at any time after the Company so qualifies to use such form).

 

2.10.        Limitations
on Subsequent Registration Rights. From and after the date of this Agreement, the Company shall not, without the prior
written consent of the Holders of a majority of the Registrable Securities then outstanding, enter into any agreement with any
holder or prospective holder of any securities of the Company that (i) would allow such holder or prospective holder (i) to include
such securities in any registration unless, under the terms of such agreement, such holder or prospective holder may include such
securities in any such registration only to the extent that the inclusion of such securities will not reduce the number of the
Registrable Securities of the Holders that are included; or (ii) allow such holder or prospective holder to initiate a demand
for registration of any securities held by such holder or prospective holder; provided that this limitation shall not apply to
any additional Investor who becomes a party to this Agreement in accordance with Section 2.9.

 

    	 

    	 

    

 

2.11.        “Market
Stand-off” Agreement. Each Holder hereby agrees that it will not, without the prior written consent of the managing
underwriter, during the period commencing on the date of the final prospectus relating to the registration by the Company of shares
of its Common Stock or any other equity securities under the Securities Act on a registration statement on Form S-1, and
ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred and eighty (180)
days in the case of the IPO, or such other period as may be requested by the Company or an underwriter to accommodate regulatory
restrictions on (1) the publication or other distribution of research reports, and (2) analyst recommendations and opinions, including,
but not limited to, the restrictions contained in FINRA Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or
amendments thereto, (i) lend; offer; pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option
or contract to sell; grant any option, right, or warrant to purchase; or otherwise transfer or dispose of, directly or indirectly,
any shares of Common Stock or any securities convertible into or exercisable or exchangeable (directly or indirectly) for Common
Stock held immediately before the effective date of the registration statement for such offering or (ii) enter into any
swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such
securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or
other securities, in cash, or otherwise. The foregoing provisions of this Subsection 2.11 shall apply only to the
IPO, shall not apply to the sales of shares to an underwriter pursuant to an underwriting agreement, or the transfer of any shares
to any trust for the direct or indirect benefit of the Holder or the immediate family of the Holder, provided that the
trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and provided further that
any such transfer shall not involve a disposition for value, and shall be applicable to the Holders only if all officers, directors
and Stockholders are subject to the same restrictions. The underwriters in connection with such registration are intended third-party
beneficiaries of this Subsection 2.11 and shall have the right, power and authority to enforce the provisions hereof as
though they were a party hereto. Each Holder further agrees to execute such agreements as may be reasonably requested by the underwriters
in connection with such registration that are consistent with this Subsection 2.11 or that are necessary to give further
effect thereto. Furthermore, prior to the IPO, the Company will require all future Stockholders and all future holders of options
or warrants to purchase the Company’s Common and/or Preferred Stock representing 1.0% of the Company’s outstanding
Common Stock, after giving effect to conversion into Common Stock of all outstanding Preferred Stock (as adjusted for any stock
split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof) to execute market
stand-off agreements consenting to lockups pursuant to such terms described above. Any discretionary waiver or termination of
the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to all Holders subject
to such agreements, based on the number of shares subject to such agreements.

 

2.12.        Restrictions
on Transfer.

 

 (a)          The
Series C-2 Preferred Stock and the Registrable Securities shall not be sold, pledged, or otherwise transferred, and the Company
shall not recognize and shall issue stop-transfer instructions to its transfer agent with respect to any such sale, pledge, or
transfer, (i) to any Competitor of the Company unless either (x) approved in advance by the Board of Directors or (y) unless such
sale occurs following the IPO in an open market transaction, or (ii) except upon the conditions specified in this Agreement, which
conditions are intended to ensure compliance with the provisions of the Securities Act. A transferring Holder will cause any proposed
purchaser, pledgee, or transferee of the Series C-2 Preferred Stock and the Registrable Securities held by such Holder to agree
to take and hold such securities subject to the provisions and upon the conditions specified in this Agreement.

 

    	 

    	 

    

 

 (b)          Each
certificate, instrument, or book entry representing (i) the Series C-2 Preferred Stock, (ii) the Registrable Securities, and (iii)
any other securities issued in respect of the securities referenced in clauses (i) and (ii), upon any stock split, stock dividend,
recapitalization, merger, consolidation, or similar event, shall (unless otherwise permitted by the provisions of Subsection
2.12(c)) be notated with a legend substantially in the following form:

 

THE
SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.
SUCH SHARES MAY NOT BE SOLD, PLEDGED, OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION
AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.

 

THE
SECURITIES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE
STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

 

The
Holders consent to the Company making a notation in its records and giving instructions to any transfer agent of the Restricted
Securities in order to implement the restrictions on transfer set forth in this Subsection 2.12.

 

 (c)          The
holder of such Restricted Securities, by acceptance of ownership thereof, agrees to comply in all respects with the provisions
of this Section 2. Before any proposed sale, pledge, or transfer of any Restricted Securities, unless there is in effect
a registration statement under the Securities Act covering the proposed transaction, the Holder thereof shall give notice to the
Company of such Holder’s intention to effect such sale, pledge, or transfer. Each such notice shall describe the manner
and circumstances of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by the Company,
shall be accompanied at such Holder’s expense by either (i) a written opinion of legal counsel who shall, and whose legal
opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction
may be effected without registration under the Securities Act; (ii) a “no action” letter from the SEC to the effect
that the proposed sale, pledge, or transfer of such Restricted Securities without registration will not result in a recommendation
by the staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel
to the Company to the effect that the proposed sale, pledge, or transfer of the Restricted Securities may be effected without
registration under the Securities Act, whereupon the Holder of such Restricted Securities shall be entitled to sell, pledge, or
transfer such Restricted Securities in accordance with the terms of the notice given by the Holder to the Company. Each certificate,
instrument, or book entry representing the Restricted Securities transferred as above provided shall be notated with, except if
such transfer is made pursuant to SEC Rule 144, the appropriate restrictive legend set forth in Subsection 2.12(b), except
that such certificate instrument, or book entry shall not be notated with such restrictive legend if, in the opinion of counsel
for such Holder and the Company, such legend is not required in order to establish compliance with any provisions of the Securities
Act.

 

    	 

    	 

    

 

2.13.        Transfer
of Registration Rights. The registration rights granted by this Section 2 may be transferred to any transferee
who, in compliance with Subsection 2.11 above, acquires at least 200,000 Registrable Securities, who is not a Competitor (unless
such transfer occurs following the IPO and in an open market transaction), and is acceptable to the Company provided that the
Company is given advance written notice thereof. Transfer of registration rights to a partner, member or Affiliate of a Holder
of Registrable Securities does not require approval of the Company or other stockholders.

 

2.14.        Termination
of Registration Rights. The right of any Holder to request registration or inclusion of Registrable Securities in any
registration pursuant to Subsections 2.1 or 2.2 shall terminate upon the earliest to occur of:

 

 (a)          the
closing of a Liquidation Transaction, as such term is defined in the Restated Certificate;

 

 (b)          such
time as Rule 144 or another similar exemption under the Securities Act is available for the sale of all of such Holder’s
shares without volume limitations during a three-month period without registration; and

 

 (c)          the
four (4) year anniversary of the IPO.

 

3.             Information
and Observer Rights.

 

3.1.          Information
Rights.

 

 (a)          Audited
Financials. The Company shall deliver to each Investor (other than an Investor reasonably determined by the Company to be
a Competitor of the Company), as soon as practicable, but in any event within 150 days after the end of each fiscal year of the
Company, a copy of its audited financial statements.

 

 (b)          Unaudited
Financials; Budget. In addition to the audited financial statements described above, the Company shall deliver to each Major
Investor (other than a Major Investor reasonably determined by the Company to be a Competitor), (i) a copy of the Company’s
annual budget and business plan for such fiscal year, as soon as practicable, but in any event within 30 days following approval
by the Board of Directors of the budget, and (ii) a copy of its unaudited quarterly and monthly financial statements, as soon
as practicable, but in any event within 40 days after the end of each fiscal quarter of the Company and 30 days after the end
of each month, as applicable. Furthermore, as soon as reasonably possible following delivery of the unaudited quarterly financial
statements pursuant to this clause (ii), the Company shall furnish to each Major Investor a report comparing the annual budget
delivered pursuant to clause (i) of this Section 3.1(b) to such quarterly financial statements.

 

All
financial information to be delivered pursuant to this Section 3.1(b) shall be prepared in accordance with GAAP (except
that such financial statements may (i) be subject to normal year-end audit adjustments, (ii) not contain all notes thereto that
may be required in accordance with GAAP and (iii) as to the monthly financial statements, not contain certain non-cash items that
are customarily included only in quarterly and year-end financial statements).

 

    	 

    	 

    

 

Notwithstanding
anything else in this Subsection 3.1(b) to the contrary, the Company may cease providing the information set forth in this
Subsection 3.1(b). during the period starting with the date sixty (60) days before the Company’s good-faith
estimate of the date of filing of a registration statement if it reasonably concludes it must do so to comply with the SEC rules
applicable to such registration statement and related offering; provided that the Company’s covenants under this
Subsection 3.1(b). shall be reinstated at such time as the Company is no longer actively employing its commercially
reasonable efforts to cause such registration statement to become effective.

 

3.2.          Inspection.
The Company shall permit each Major Investor (other than a Major Investor reasonably determined by the Company to be a Competitor
of the Company), at such Major Investor’s expense, to visit and inspect the Company’s properties; examine its books
of account and records; and discuss the Company’s affairs, finances, and accounts with its officers, during normal business
hours of the Company as may be reasonably requested by the Major Investor, but in no event upon less than ten (10) business days’
notice; provided, however, that the Company shall not be obligated pursuant to this Subsection 3.2 to provide
access to any information that it reasonably and in good faith considers to be a trade secret or confidential information (unless
covered by an enforceable confidentiality agreement, in form acceptable to the Company) or the disclosure of which would adversely
affect the attorney-client privilege between the Company and its counsel.

 

3.3.          Observer
Rights. As long as New Leaf Ventures III, L.P. (“New Leaf”) owns at least 25% of the shares of Series
C-2 Preferred Stock it is purchasing under the Purchase agreement (or any shares of Common Stock issued upon conversion thereof),
New Leaf shall have the right to designate one representative to attend all meetings of the Board of Directors and all of its
committees (including its pricing committee for the IPO) in a nonvoting observer capacity. The Company shall give such representative
copies of all notices, minutes, consents, and other materials that it provides to its directors; provided, however,
that such representative shall agree to hold in confidence and trust and to act in a fiduciary manner with respect to all information
so provided; provided further that the Company reserves the right to withhold any information and to exclude such
representative from (i) any executive session of the Board of Directors or (ii) any meeting or portion thereof if access to such
information or attendance at such meeting could (x) adversely affect the attorney-client privilege between the Company and its
counsel (y) result in disclosure of trade secrets or (z) a conflict of interest, or if New Leaf or its representative is a Competitor.

 

3.4.          Termination
of Information, Inspection and Observer Rights. The covenants set forth in Subsection 3.1 and Subsection
3.2 and Subsection 3.3 shall terminate and be of no further force or effect (i) upon the consummation of the IPO,
(ii) when the Company first becomes subject to the periodic reporting requirements of Section 12 or 15(d) of the Exchange
Act, or (iii) upon a liquidation, winding up, dissolution or Liquidation Transaction, as such term is defined in the Restated
Certificate, whichever event occurs first.

 

    	 

    	 

    

 

3.5.          Confidentiality.
Each Investor agrees that such Investor will keep confidential and will not disclose, divulge, or use for any purpose (other than
to monitor its investment in the Company) any confidential information obtained from the Company pursuant to the terms of this
Agreement (including notice of the Company’s intention to file a registration statement), unless such confidential information
(a) is known or becomes known to the public in general (other than as a result of a breach of this Subsection 3.5 by such
Investor), (b) is or has been independently developed or conceived by the Investor without use of the Company’s confidential
information, or (c) is or has been made known or disclosed to the Investor by a third party without a breach of any obligation
of confidentiality such third party may have to the Company; provided, however, that an Investor may disclose confidential
information (i) to its attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services
in connection with monitoring its investment in the Company; (ii) to any prospective purchaser, other than a Competitor, of any
Registrable Securities from such Investor, if such prospective purchaser agrees to be bound by the provisions of this Subsection
3.5; (iii) to any Affiliate, partner, member, stockholder, or wholly owned subsidiary of such Investor in the ordinary
course of business, provided that such Investor informs such Person that such information is confidential and directs such
Person to maintain the confidentiality of such information; or (iv) as may otherwise be required by law, provided that
the Investor promptly notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required
disclosure.

 

4.             Rights
to Future Stock Issuances.

 

 4.1.         Right
of First Offer. Subject to the terms and conditions of this Subsection 4.1 and applicable securities laws, if
the Company proposes to offer or sell any New Securities, the Company shall first offer such New Securities to each Major Investor.

 

  (a)          The
Company shall give notice (the “Offer Notice”) to each Major Investor, stating (i) its bona fide intention
to offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon
which it proposes to offer such New Securities.

 

  (b)          By
notification to the Company within fifteen (15) days after the Offer Notice is given, each Major Investor may elect to purchase
or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such New Securities which
equals the proportion that the Common Stock then held by such Major Investor (including all shares of Common Stock then issuable
(directly or indirectly) upon conversion and/or exercise, as applicable, of the Series C-2 Preferred Stock and any other Derivative
Securities then held by such Major Investor) bears to the total Common Stock of the Company then outstanding (assuming full conversion
and/or exercise, as applicable, of all Preferred Stock and other Derivative Securities). The closing of any sale pursuant to this
Subsection 4.1(b) shall occur within the later of ninety (90) days of the date that the Offer Notice is given and the date
of initial sale of New Securities pursuant to Subsection 4.1(c). At the expiration of such fifteen (15) day period, the
Company shall promptly notify each Major Investor that elects to purchase or acquire all the shares available to it (each, a “Fully
Exercising Investor”) of any other Major Investor’s failure to do likewise. During the ten (10) day period commencing
after the Company has given such notice, each Fully Exercising Investor may, by giving notice to the Company, elect to purchase
or acquire, in addition to the number of shares specified above, up to that portion of the New Securities for which Major Investors
were entitled to subscribe but that were not subscribed for by the Major Investors which is equal to the proportion that the Common
Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of Preferred Stock
and any other Derivative Securities then held, by such Fully Exercising Investor bears to the Common Stock issued and held, or
issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative
Securities then held, by all Fully Exercising Investors who wish to purchase such unsubscribed shares. The closing of any
sale pursuant to this Subsection 4.1(b) shall occur within the later of ninety (90) days of the date that the Offer Notice
is given and the date of initial sale of New Securities pursuant to Subsection 4.1(c).

 

    	 

    	 

    

 

 (c)          If
all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in Subsection 4.1(b),
the Company may offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not
less than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not
enter into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within
thirty (30) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities
shall not be offered unless first reoffered to the Major Investors in accordance with this Subsection 4.1.

 

 (d)          The
right of first offer in this Subsection 4.1 shall not be applicable to (i) Exempted Securities (as defined in the Restated
Certificate); (ii) shares of Common Stock issued in the IPO; and (iii) the issuance of shares of Series C-2 Preferred Stock
to Additional Purchasers pursuant to Subsection 1.2 of the Purchase Agreement.

 

4.2.          Termination.
The covenants set forth in Subsection 4.1 shall terminate and be of no further force or effect (i) immediately prior to the consummation
of the IPO, (ii) when the Company first becomes subject to the periodic reporting requirements of Section 12 or 15(d) of the Exchange
Act, or (iii) upon a liquidation, winding up, dissolution or Liquidation Transaction, as such term is defined in the Restated
Certificate, whichever event occurs first, and as to each Major Investor, in accordance with Subsection 4.1(e).

 

5.            Additional
Covenants.

 

5.1.          Indemnification
Matters. The Company hereby acknowledges that one (1) or more of the directors nominated to serve on the Board of Directors
by the Investors (each a “Fund Director”) may have certain rights to indemnification, advancement of expenses
and/or insurance provided by one or more of the Investors and certain of their affiliates (collectively, the “Fund Indemnitors”).
The Company hereby agrees (a) that it is the indemnitor of first resort (i.e., its obligations to any such Fund Director
are primary and any obligation of the Fund Indemnitors to advance expenses or to provide indemnification for the same expenses
or liabilities incurred by such Fund Director are secondary), (b) that it shall be required to advance the full amount of expenses
incurred by such Fund Director and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts
paid in settlement by or on behalf of any such Fund Director to the extent legally permitted and as required by the Restated Certificate
or Bylaws of the Company (or any agreement between the Company and such Fund Director), without regard to any rights such Fund
Director may have against the Fund Indemnitors, and, (c) that it irrevocably waives, relinquishes and releases the Fund Indemnitors
from any and all claims against the Fund Indemnitors for contribution, subrogation or any other recovery of any kind in respect
thereof. The Company further agrees that no advancement or payment by the Fund Indemnitors on behalf of any such Fund Director
with respect to any claim for which such Fund Director has sought indemnification from the Company shall affect the foregoing
and the Fund Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment
to all of the rights of recovery of such Fund Director against the Company.

 

    	 

    	 

    

 

5.2.          Termination
of Covenants. The covenants set forth in this Section 5, shall terminate and be of no further force or effect (i) immediately
before the consummation of the IPO or (ii) when the Company first becomes subject to the periodic reporting requirements of Section
12(g) or 15(d) of the Exchange Act, or (iii) upon a Liquidation Transaction, as such term is defined in the Restated Certificate,
whichever event occurs first.

 

6.            Miscellaneous.

 

6.1.          Successors
and Assigns. The rights under this Agreement may be assigned (but only with all related obligations) by a Holder
to a transferee of Registrable Securities that (i) is an Affiliate of a Holder; (ii) is a Holder’s Immediate Family Member
or trust for the benefit of an individual Holder or one or more of such Holder’s Immediate Family Members; or (iii) after
such transfer, holds at least 200,000 shares of Registrable Securities (subject to appropriate adjustment for stock splits, stock
dividends, combinations, and other recapitalizations); provided that the rights under this Agreement may not be
assigned to any Competitor of the Company; and provided further, however, that (x) the Company is, within a reasonable
time after such transfer, furnished with written notice of the name and address of such transferee and the Registrable Securities
with respect to which such rights are being transferred; and (y) such transferee agrees in a written instrument delivered to the
Company to be bound by and subject to the terms and conditions of this Agreement, including the provisions of Subsection 2.11.
For the purposes of determining the number of shares of Registrable Securities held by a transferee, the holdings of a transferee
(1) that is an Affiliate or stockholder of a Holder; (2) who is a Holder’s Immediate Family Member; or (3) that is a trust
for the benefit of an individual Holder or such Holder’s Immediate Family Member shall be aggregated together and with those
of the transferring Holder; provided further that all transferees who would not qualify individually for assignment
of rights shall have a single attorney-in-fact for the purpose of exercising any rights, receiving notices, or taking any action
under this Agreement. The terms and conditions of this Agreement inure to the benefit of and are binding upon the respective successors
and permitted assignees of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective successors and permitted assignees any rights, remedies, obligations or liabilities
under or by reason of this Agreement, except as expressly provided herein.

 

6.2.          Governing
Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, regardless
of the laws that might otherwise govern under applicable principles of conflicts of law.

 

6.3.          Counterparts.
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any
electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method
and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

    	 

    	 

    

 

6.4.          Titles
and Subtitles. The titles and subtitles used in this Agreement are for convenience only and are not to be considered
in construing or interpreting this Agreement.

 

6.5.          Notices.
All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively
given upon the earlier of actual receipt or: (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic
mail or facsimile (with delivery confirmation) during normal business hours of the recipient, and if not sent during normal business
hours, then on the recipient’s next business day, (c) five (5) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid, or (d) one (1) business day after the business day of deposit with a nationally recognized
overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications
shall be sent to the respective parties at their address as set forth on the signature page or Schedule A, or to the principal
office of the Company and to the attention of the Chief Executive Officer, in the case of the Company or to such email address,
facsimile number or address as subsequently modified by written notice given in accordance with this Section 6.5. If notice
is given to the Company, a copy shall also be sent to:

 

David
S. Rosenthal, Esq.

Dechert
LLP 

1095
Avenue of the Americas

New
York, NY 10036 

Tel.
(212) 698-3500

Fax.
(212) 698-3599 

david.rosenthal@dechert.com

 

6.6.          Amendments
and Waivers. Except as otherwise set forth herein, any term of this Agreement may be amended, terminated or waived
only with the written consent of the Company and the Purchasers holding a majority of the then-outstanding Series C-2 Preferred
Stock or shares of Common Stock issued upon conversion thereof; provided that Section 3.3 and this provision of Section
6.6 shall only be amended with the written consent of New Leaf. Any amendment or waiver effected in accordance with this Section
6.6 shall be binding upon the Investors and each transferee of the Series C-2 Preferred Stock (or the Common Stock issuable
upon conversion thereof), each future holder of all such securities, and the Company whether or not such party, assignee or other
shareholder entered into or approved such amendment, modification, termination or waiver. Notwithstanding the foregoing, this
Agreement may not be amended or terminated and the observance of any term hereof may not be waived with respect to any Investor
without the written consent of such Investor, unless such amendment, termination, or waiver applies to all Investors in the same
fashion (it being agreed that a waiver of the provisions of Section 4 with respect to a particular transaction shall be
deemed to apply to all Investors in the same fashion if such waiver does so by its terms, notwithstanding the fact that certain
Investors may nonetheless, by agreement with the Company, purchase securities in such transaction).

 

    	 

    	 

    

 

6.7.          Severability.
In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such
invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable
to the maximum extent permitted by law.

 

6.8.          Aggregation
of Stock. All shares of Registrable Securities held or acquired by Affiliates shall be aggregated together for the
purpose of determining the availability of any rights under this Agreement and such Affiliated persons may apportion such rights
as among themselves in any manner they deem appropriate.

 

6.9.          Additional
Investors. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of the
Company’s Series C-2 Preferred Stock after the date hereof (whether pursuant to the Purchase Agreement or otherwise), any
purchaser of such shares of Series C-2 Preferred Stock may become a party to this Agreement by executing and delivering an additional
counterpart signature page to this Agreement, and thereafter shall be deemed an “Investor” for all purposes hereunder.
No action or consent by the Investors shall be required for such joinder to this Agreement by such additional Investor, so long
as such additional Investor has agreed in writing to be bound by all of the obligations as an “Investor” hereunder.

 

6.10.         Entire
Agreement. This Agreement (including any Schedules and Exhibits hereto), the Restated Certificate and the other transaction
Documents, (as defined in the Purchase Agreement) constitutes the full and entire understanding and agreement among the parties
with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing
between the parties is expressly canceled.

 

6.11.         Delays
or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement,
upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching
or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or
of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a
waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind
or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of
any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set
forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative
and not alternative.

 

[Remainder
of Page Intentionally Left Blank]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

 

	 	COMPANY
	 	 
	 	EDGE THERAPEUTICS, INC.
	 	 
	 	By:	/s/ Brian A. Leuthner
	 	 	Name:
                                         Brian A. Leuthner 

Title:
President and Chief Executive Officer

 

	 	INVESTOR:
	 	 
	 	BMV Direct
                    II, LP,

                    a Delaware
                    limited partnership

	 	 
	 	By:	/s/
    Brian Wolfe
	 	Name:
                    Brian Wolfe 

Title:
Vice President

 

[SIGNATURE
PAGE TO INVESTORS’ RIGHTS AGREEMENT] 

 

    	 

    	 

    

 

	 	INVESTOR:
	 	 
	 	VENROCK
                    HEALTHCARE CAPITAL PARTNERS II, L.P.

	 	 
	 	By:	VHCP Management
    II, LLC
	 	 	its General Partner
	 	 	 
	 	VHCP CO-INVESTMENT HOLDINGS II, LLC
	 	 	 
	 	By:	VHCP Management
    II, LLC
	 	 	its Manager
	 	 	 
	 	By:	/s/
    Anders Hove
	 	Name:
                                         Anders Hove 

Title:
Authorized Signatory

 

[SIGNATURE
PAGE TO INVESTORS’ RIGHTS AGREEMENT] 

 

    	 

    	 

    

  

	 	

INVESTOR:

	 	 
	 	LEERINK HOLDINGS LLC
	 	 	 
	 	By:	/s/
    Joseph R. Gentile
	 	Name:
                                         Joseph R. Gentile 

Title:
Chief Accounting Officer

	 	 
	 	LEERINK SWANN CO-INVESTMENT FUND, LLC
	 	 	 
	 	By:	/s/
    Joseph R. Gentile
	 	Name:
                                         Joseph R. Gentile 

Title:
Manager

 

[SIGNATURE
PAGE TO INVESTORS’ RIGHTS AGREEMENT]

 

    	 

    	 

    

 

	 	

INVESTOR:

	 	 
	 	BioBritt, LLC
	 	 	 
	 	By:	/s/
    Daniel M. Bradbury
	 	Name:
                                         Daniel M. Bradbury 

Title:
Managing Member

 

[SIGNATURE
PAGE TO INVESTORS’ RIGHTS AGREEMENT]

 

    	 

    	 

    

 

	 	INVESTOR:
	 	 
	 	NEW LEAF
                    VENTURES III, L.P.

	 	 
	 	By:	New
    Leaf Venture Associates III, L.P.
	 	 	Its General Partner
	 	 	 
	 	By:	New Leaf Venture
    Management III, L.L.C.
	 	 	Its General Partner
	 	 	 
	 	By:	/s/
    Craig L. Slutzkin
	 	Name:
                                         Craig L. Slutzkin 

Title:
Chief Financial Officer

	 	 
	 	NEW LEAF
                    GROWTH FUND I, L.P.

	 	 
	 	By:	New
    Leaf Growth Associates I, L.P.
	 	 	Its General Partner
	 	 	 
	 	By:	New Leaf Venture
    Management III, L.L.C.
	 	 	Its General Partner
	 	 	 
	 	By:	/s/
    Craig L. Slutzkin
	 	Name:
                                         Craig L. Slutzkin 

Title:
Chief Financial Officer

  

[SIGNATURE
PAGE TO INVESTORS’ RIGHTS AGREEMENT]

 

    	 

    	 

    

 

	 	INVESTOR:
	 	 
	 	JANUS GLOBAL
                    LIFE SCIENCES FUND

	 	 
	 	By:	Janus
    Capital Management LLC, its advisor
	 	 	 
	 	By:	/s/
    Andrew Acker
	 	Name:
                                         Andrew Acker 

Title:
Vice President

 

[SIGNATURE
PAGE TO INVESTORS’ RIGHTS AGREEMENT]

 

    	 

    	 

    

  

	 	INVESTOR:
	 	 
	 	SOFINNOVA
                    VENTURE PARTNERS IX, L.P.

	 	 
	 	By:	Sofinnova Management IX, L.L.C.
	 	 	Its General Partner
	 	 	 
	 	By:	/s/
    James I. Healy
	 	Name:
                                         James I. Healy 

Title:
Managing Member

 

[SIGNATURE
PAGE TO INVESTORS’ RIGHTS AGREEMENT]

 

    	 

    	 

    

	 	INVESTOR:
	 	 
	 	KMD VENTURES,
                    INC.

	 		
	 	By:	/s/
    Mayukh Sukhatme
	 	Name:
                    Mayukh Sukhatme 

Title:
President

 

[SIGNATURE
PAGE TO INVESTORS’ RIGHTS AGREEMENT]

 

    	 

    	 

    

 

	 	INVESTOR:
	 	 
	 	HERCULES
                    TECHNOLOGY GROWTH CAPITAL, INC.

	 		
	 	By:	/s/
    Ben Bang
	 	Name:
                    Ben Bang 

Title:
Associate General Counsel

 

[SIGNATURE
PAGE TO INVESTORS’ RIGHTS AGREEMENT]

 

    	 

    	 

    

  

	 	INVESTOR:
	 	 
	 	Franklin
                    Strategic Series – Franklin Biotechnology Discovery Fund

	 	 
	 	By:	Franklin
    Advisers, Inc., as investment manager
	 	 	 
	 	By:	/s/
    Evan McCulloch
	 	Name:
                                         Evan McCulloch 

Title:
Vice President

 

	 	Franklin
                    Templeton Investment Funds - Franklin Biotechnology Discovery Fund

	 		
	 	By:	/s/
    Evan McCulloch
	 	Name:
                                         Evan McCulloch 

Title:
Vice President

 

[SIGNATURE
PAGE TO INVESTORS’ RIGHTS AGREEMENT]

 

    	 

    	 

    

 

	 	INVESTOR:
	 	 
	 	HARPUA,
                    LLC

	 		
	 	By:	/s/
    Andrew J. Einhorn
	 	Name:
                    Andrew J. Einhorn 

Title:
Member

 

[SIGNATURE
PAGE TO INVESTORS’ RIGHTS AGREEMENT]

 

    	 

    	 

    

  

	 	INVESTOR:
	 	 
	 	/s/ Brian A. Leuthner
	 	Name: Brian A. Leuthner

 

[SIGNATURE
PAGE TO INVESTORS’ RIGHTS AGREEMENT]

 

    	 

    	 

    

   

	 	INVESTOR:
	 	 
	 	/s/ Robert Spiegel
	 	Name: Robert Spiegel

 

[SIGNATURE
PAGE TO INVESTORS’ RIGHTS AGREEMENT]

 

    	 

    	 

    

 

	 	INVESTOR:
	 	 
	 	/s/ Meryl Barer
	 	Name: Meryl Barer

 

[SIGNATURE
PAGE TO INVESTORS’ RIGHTS AGREEMENT]

 

    	 

    	 

    

 

	 	INVESTOR:
	 	 
	 	/s/ James Loughlin
	 	Name: James Loughlin

 

[SIGNATURE
PAGE TO INVESTORS’ RIGHTS AGREEMENT]

 

    	 

    	 

    

 

SCHEDULE A

 

Investors

 

Venrock Healthcare Capital Partners
II, L.P.

 

Venrock

3340 Hillview Avenue

Palo Alto, CA 94304

Attention: Sherman Souther

 

VHCP Co-Investment Holdings II, LLC

 

Venrock

3340 Hillview Avenue

Palo Alto, CA 94304

Attention: Sherman Souther

 

Sofinnova Venture Partners IX, L.P.

 

Sofinnova Management IX, L.L.C.

3000 Sand Hill Road, Bldg. 4, Suite
250

Menlo Park, CA 94025

 

BMV Direct II LP

 

17190 Bernardo Center Drive

San Diego, CA 92128

 

BioBrit, LLC

 

5462 Soledad Road

La Jolla CA 92037

 

New Leaf Ventures III, L.P.

 

7 Times Square, Suite 3502

New York, NY 10036

Attention: Craig L. Slutzkin

 

New Leaf Growth Fund I, L.P.

 

7 Times Square, Suite 3502

New York, NY 10036

Attention: Craig L. Slutzkin

 

    	 

    	 

    

 

Franklin Templeton Investment Funds
– Franklin Biotechnology Discovery Fund (4912)

 

c/o Franklin Advisers, Inc.

One Franklin Parkway

San Mateo, CA 94403

Attn: Evan McCulloch & Christopher
Chen

 

Franklin Strategic Series – Franklin
Biotechnology Discovery Fund (4402)

 

c/o Franklin Advisers, Inc.

One Franklin Parkway

San Mateo, CA 94403

Attn: Evan McCulloch & Christopher
Chen

 

Janus Global Life Sciences Fund

 

BUOYBREEZE + CO.

DTCC

Newport Office Center

570 Washington Blvd

Jersey City, NJ 07310

5th floor/NY Window/Robert
Mendez

FBO: State Street Bank & Trust for
account NB32

 

Leerink Holdings LLC

 

1 Federal Street, 37th Floor

Boston, MA 02110

 

Leerink Swann Co-Investment Fund, LLC

 

1 Federal Street, 37th Floor

Boston, MA 02110

 

Meryl Barer

 

2 Barer Lane

Mendham, NJ 07945

 

Harpua, LLC

 

c/o Christiana Trust

c/o Monarch Entity Services, LLC

P.O. Box 957, Wilmington, DE 19899

 

    	 

    	 

    

 

Robert Spiegel

 

400 Elm Street

Westfield, NJ 07090

 

James Loughlin

 

273 Long Cove Drive

Hilton Head Island, SC 29928

 

KMD Ventures, Inc.

 

7 Bruce Road

Mamaroneck, NY 10543

Attn: Mayukh Sukhatme, President

 

Brian A. Leuthner

 

42 Overhill Road

Summit, NJ 07901

 

Hercules Technology Growth Capital,
Inc.

 

400 Hamilton Avenue, Suite 310

Palo Alto CA 94301

 

    	 

    	 

    

 

SCHEDULE B

 

Stockholders

 

ACNYC, LLC 

  

35 Ricky Rd

Ronkonkoma, NY 11779

 

Sol J. Barer

 

2 Barer Lane

Mendham, NJ 07945

 

Edge Therapeutics Canada ULC

 

20 Whitney Avenue

Toronto, ON M4W 2A8

Canada

 

William M. Kargman

 

221 Mt. Auburn St.

Unit 703

Cambridge, MA 02138-4852

 

Kurt Conti

 

160 Oakwood Drive

New Providence, NJ 07974

 

Robert Kargman Marjie Kargman JT TEN

 

151 Tremont St. PH

Boston, MA 02111-1125

 

Shamus, LLC

 

151 Tremont St. PH

Boston, MA 02111-1125

 

Carl J Soranno

 

136 Flanders Drakestown Road

Flanders, NJ 07836EXHIBIT 10.1

 

CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

DOUBLE ASTERISKS
DENOTE SUCH OMISSIONS.

 

LICENSE AGREEMENT

 

THIS LICENSE AGREEMENT
(this “Agreement””), effective as of October 20, 2010 (the “Effective Date”), is entered into
between SurModics Pharmaceuticals, Inc., a Delaware corporation (“SurModics”), having a place of business at
750 Lakeshore Parkway, Birmingham, Alabama 35211, U.S.A., and Edge Therapeutics, Inc. a Delaware corporation (“Edge”),
having a place of business at 211 Warren Street, Newark, NJ 07103, with respect to the following facts:

 

WHEREAS, SurModics
is the owner or exclusive licensee of certain technology, patent rights and know-how rights related to the SurModics IP Rights
(as defined below);

 

WHEREAS, Edge is the
owner or exclusive licensee of certain technology, patent rights and know-how rights related to Edge IP Rights (as defined below);
and

 

WHEREAS, Edge desires
to obtain from SurModics and SurModics desires to grant to Edge, a license under the SurModics IP Rights upon the terms and conditions
of this Agreement.

 

NOW, THEREFORE, in
consideration of the foregoing premises and the mutual covenants herein contained, the Parties hereby agree as follows:

 

	1.	DEFINITIONS.

 

1.1             
“Active Agent” shall mean (a) nimodipine, (b) **, or (c) any of the Other Active Agents for which
Edge has obtained rights to in accordance with Section 5.4.

 

1.2             
“Affiliate” shall mean, with respect to a Party, any entity that controls or is controlled by
such Party, or is under common control with such Party. For purposes of this definition, an entity shall be deemed to control another
entity if it owns or controls, directly or indirectly, at least fifty percent (50%) of the voting equity of another entity (or
other comparable interest for an entity other than a corporation).

 

1.3             
“Clinical Trial” shall mean a human clinical trial in any country the results of which could be
used to establish safety or efficacy of a product as a basis for an NDA or foreign equivalent.

 

1.4             
“Clinical Trial Material” shall mean the Product manufactured by SurModics to support Clinical
Trials.

 

1.5             
“Combination Inventions” shall mean those Research Inventions set forth in Section 6(e)
of the Development Agreement.

 

1.6             
“Combination IP Rights” shall mean, collectively, the Combination Inventions and the Combination
Patent Rights.

 

1.7             
“Combination Patent Rights” shall mean any Patent Rights that claim or cover the Combination Inventions.

 

    	 

    	 

    

1.8             
“Competitor” shall mean a company that makes a Formulation that competes against SurModics’
Formulation.

 

1.9             
“Commercial Supply” shall mean Product manufactured by SurModics that has been approved by the
FDA or its foreign equivalent for commercial release.

 

1.10         
“Commercially Reasonable Efforts” shall mean those efforts and resources consistent with the exercise
of prudent scientific and business judgment, as applied to other pharmaceutical products of similar market potential and market
size and at a similar stage in the development or life of such product.

 

1.11         
“Confidential Information” shall mean all information and data that (a) is provided by one Party
to the other Party under this Agreement in any form, whether oral, visual or other form, and (b) if disclosed in writing or other
tangible medium is marked or identified as confidential at the time of disclosure to the recipient, is acknowledged at the time
of disclosure to be confidential, or otherwise should reasonably be deemed to be confidential. Notwithstanding the foregoing, Confidential
Information of a Party shall not include that portion of such information and data which, and only to the extent, the recipient
can establish by written documentation: (i) is known to the recipient as evidenced by its written records before receipt thereof
from the disclosing party, (ii) is disclosed to the recipient free of confidentiality obligations by a third person who has the
right to make such disclosure, (iii) is or becomes part of the public domain through no fault of the recipient, or (iv) the recipient
can reasonably establish is independently developed by persons on behalf of recipient without access to or use of the information
disclosed by the disclosing party (each, a “Confidentiality Exception”).

 

1.12         
“Development Agreement” shall mean that certain Feasibility Evaluation Agreement between the Parties
dated February 14, 2010, as may be amended or restated from time to time by the mutual written agreement of the Parties.

 

1.13         
“Development Program” shall mean the development program conducted by the Parties pursuant to
the Development Agreement.

 

1.14         
“Directly Competing Product” shall mean a pharmaceutical and therapeutic equivalent pharmaceutical
microparticle product incorporating an Active Agent. In this context, equivalence means that the dose, dosage form, dosing frequency,
route of administration, strength, and concentration are similar to the Product and the therapeutic indications are the same.

 

1.15         
“Edge IP Rights” shall mean, collectively, the Edge Patent Rights and the Edge Technology.

 

1.16         
“Edge Patent Rights” shall mean, collectively, all Patent Rights owned or controlled by Edge that
claim or cover the Edge Technology, including Improvements and derivatives. The Edge Patent Rights covered by this Agreement existing
as of the Effective Date are set forth on Appendix B attached and incorporated by reference into this Agreement.

 

1.17         
“Edge Research Inventions” shall mean those Research Inventions set forth in Section 6(c)
of the Development Agreement.

 

    	2

    	 

    

1.18         
“Edge Research IP Rights” shall mean shall mean collectively the Edge Research Inventions and
the Edge Research Patent Rights.

 

1.19         
“Edge Research Patent Rights” shall mean all Patent Rights that claim or cover the Edge Research
Inventions.

 

1.20         
“Edge Technology” shall mean all Know-How owned or controlled by Edge, developed or acquired outside
of the Development Agreement, that is reasonably necessary or useful to develop, obtain regulatory approval for, manufacture, use,
or otherwise commercially exploit the Product. All Edge Technology that does not fall within the scope of a Confidentiality Exception
shall be the Confidential Information of Edge. The Edge Technology covered by this Agreement existing as of the Effective Date
is set forth on Appendix B attached and incorporated by reference into this Agreement.

 

1.21         
“Field” shall mean Intracranial Delivery for the prevention or treatment of delayed complications
following intracranial hemorrhage such as intracerebral, intraventricular, subdural or subarachnoid hemorrhage or a combination
thereof in humans.

 

1.22         
“First Commercial Sale” shall mean the first sale of the Product by Edge, its sublicensee or their
respective Affiliates to customers who are not Affiliates in any country after all applicable marketing approvals (if any) have
been granted by the applicable governing health authority.

 

1.23         
“Formulation” shall mean a biodegradable ** formulation imparting a controlled release of one
or more Active Agents.

 

1.24         
“Improvements” shall mean any and all enhancements, discoveries, inventions, additions, alterations,
modifications, design changes and other improvements, whether or not patentable, with respect to the Product owned or controlled
by a Party during the term of this Agreement.

 

1.25         
“including” shall mean including without limitation except to extent specifically provided herein.

 

1.26         
“IND” shall mean an Investigational New Drug application or similar application required to commence
human clinical testing of a product submitted to the FDA or its foreign equivalent.

 

1.27         
“Intracranial Delivery” shall mean the surgical placement by syringe, catheter or other
injection means directly into the intracerebral, intraventricular or subarachnoid space or other sites within the cranium. Intracranial
Delivery shall exclude intravascular procedures or techniques.

 

1.28         
“Know-How” shall mean any and all proprietary technical information, formulations, processes,
data, specifications, characterization methods, characterization results, and other proprietary information, excluding any Patent
Rights with respect thereto.

 

    	3

    	 

    

1.29         
“NDA” shall mean a New Drug Application or similar application for marketing approval of a product
submitted to the FDA or its foreign equivalent.

 

1.30         
“Net Sales” shall mean the gross sales price of each Product (in final form for end use) invoiced
by Edge, its sublicensee or their respective Affiliates to customers who are not Affiliates (or who are Affiliates but are the
end users of the Product) less, to the extent reasonable and customary in the pharmaceutical industry and actually paid or accrued
by Edge, its sublicensee or their respective Affiliates (as applicable), (a) credits, allowances, discounts and rebates to, and
chargebacks from the account of, such customers for spoiled, damaged, out-dated and returned Product; (b) freight and insurance
costs incurred by Edge, its sublicensee or their respective Affiliates (as applicable) in transporting the Product in final form
to such customers; (c) cash, quantity and trade discounts, rebates and other price reductions for the Product given to such customers
under price reduction programs that are consistent with price reductions given for similar products by Edge, its sublicensee or
their respective Affiliates (as applicable); (d) sales, use, value-added and other direct taxes incurred on the sale of the Product
in final form to such customers; and (e) customs duties, surcharges and other governmental charges incurred in exporting or importing
the Product in final form to such customers. Such amounts shall be determined in accordance with Generally Accepted Accounting
Principles consistently applied.

 

1.31         
“Party” shall mean Edge and SurModics, individually, and “Parties” shall mean
Edge and SurModics, collectively, and their successors or assigns pursuant to Section 10.3 hereof.

 

1.32         
“Patent Infringement Claim” shall mean a third party lawsuit (a) brought against either Party
before a court of competent jurisdiction, (b) that includes a claim alleging that the Product infringes such third party’s
Patent Rights and (c) such claim of infringement relates primarily to the SurModics IP Rights used or incorporated in the Product.

 

1.33         
“Patent Rights” shall mean any of the following, whether existing now or in the future anywhere
in the world (a) any issued patent, including inventor’s certificates, substitutions, extensions, supplemental protection
certificates, confirmations, reissues, reexaminations, renewals, or any like governmental grant for protection of inventions; and
(b) any pending applications for any of the foregoing, including any continuation, divisional, substitution, continuations-in-part,
provisional and converted provisional applications.

 

1.34         
“Phase II Clinical Trial” shall mean a controlled and lawful study in humans designed with the
purpose of determining dosing of Product in patients for the Field or that would otherwise satisfy 21 CFR 312.21(b).

 

1.35         
“Phase III Clinical Trial” shall mean a pivotal human clinical trial in any country the results
of which could be used to establish safety and efficacy of a product as a basis for an NDA or that would otherwise satisfy requirements
of 21 CFR 312.21(c).

 

1.36         
“Phase III Clinical Trial Material” shall mean Product manufactured by SurModics to support Phase
III Clinical Trials.

 

1.37         
“the/each Product” shall mean one or more of the Active Agents (separate or in any combination)
incorporated into the Formulation for use in the Field.

 

    	4

    	 

    

1.38         
“Research Inventions” shall mean collectively all inventions, Know-How, trade secrets, discoveries,
development, methods, techniques, formulae, processes and compositions of matter, whether or not patentable, resulting or derived
from or directly relating to SurModics’ and/or Edge’s activities under the Development Agreement or any other agreement
between the Parties.

 

1.39         
“Royalty Credit” shall mean an adjustment to the royalties owed to SurModics on Net Sales of a
Product following the adjudication of a Patent Infringement Claim involving such Product that is equal to the difference between
the royalties calculated using the royalty rate in Section 4.1.3 and the reduced royalty rate in Section 4.1.4 during
the pendency of the Patent Infringement Claim.

 

1.40         
“Royalty Term” shall mean, with respect to each country the longer of (a) the period of time during
which the manufacture, use or sale of each Product in such country is covered by a Valid Claim, or (b) the period ending twelve
(12) years from the First Commercial Sale of each Product in such country, if there is no Valid Claim that covers the manufacture,
use, or sale of the Product in such country.

 

1.41         
“Sublicensing Revenue” shall mean the aggregate cash consideration plus the fair market value
of any in kind consideration paid or payable to Edge or its Affiliates in connection with the grant of any sublicense, promotion,
marketing, distribution, joint venture, or other rights by Edge or its Affiliates to a third party relating to each Product including
sublicense fees, maintenance fees and milestone payments but excluding: (a) royalties calculated as a percentage of Net Sales of
the Product, (b) equity investments in Edge by a sublicensee for the fair market value of the equity purchased on the date of the
investment; however, the fair market value of any SurModics IP Rights transferred to such sublicensee as part of or coincident
with such investment shall not be excluded, (c) loan proceeds paid to Edge by a sublicensee in an arms length, full recourse debt
financing to the extent that such loan is not forgiven, and (d) sponsored research funding paid to Edge by a sublicensee in a bona
fide transaction for future research to be performed by Edge.

 

1.42         
“SurModics IP Rights” shall mean, collectively, the SurModics Technology and the SurModics Patent
Rights.

 

1.43         
“SurModics Patent Rights” shall mean, collectively, the Patent Rights that claim or cover the
SurModics Technology, including Improvements and derivatives. The SurModics Patent Rights covered by this Agreement existing as
of the Effective Date are set forth on Appendix A attached and incorporated by reference into this Agreement.

 

1.44         
“SurModics Research Inventions” shall mean those Research Inventions set forth in Section 6(d)
of the Development Agreement.

 

1.45         
“SurModics Research IP Rights” shall mean collectively the SurModics Research Inventions and the
SurModics Research Patent Rights.

 

1.46         
“SurModics Research Patent Rights” shall mean all Patent Rights that claim or cover the SurModics
Research Inventions.

 

    	5

    	 

    

1.47         
“SurModics Technology” shall mean all Know-How (including any Improvements thereto) owned or controlled
by SurModics, developed or acquired outside of the Development Agreement, that is reasonably necessary or useful to develop, obtain
regulatory approval for, manufacture, use, or otherwise commercially exploit the Product. All SurModics Technology that does not
fall within the scope of a Confidentiality Exception shall be the Confidential Information of SurModics. The SurModics Know-How
covered by this Agreement existing as of the Effective Date is set forth on Appendix A attached and incorporated by reference
into this Agreement.

 

1.48         
“Sublicense” shall mean any license granted by Edge (including its Affiliates or sublicensees)
of the rights granted under Section 3.1.1 hereof (including any promotion, marketing, distribution, joint venture or other
arrangement conferring such rights and intending to provide for the commercialization of products, including each Product in the
Field) to a third party other than an Affiliate.

 

1.49         
 “Valid Claim” shall mean either (a) a claim of an issued and unexpired patent included within
the SurModics Patent Rights or SurModics Research Patent Rights, which has not been held permanently revoked, unenforceable or
invalid by a decision of a court or other governmental agency of competent jurisdiction, unappealable or unappealed within the
time allowed for appeal, and which has not been admitted to be invalid or unenforceable through reissue or disclaimer or otherwise,
or (b) a claim of a pending patent application included within the SurModics Patent Rights or SurModics Research Patent Rights,
which claim was filed in good faith and has not been abandoned or finally disallowed without the possibility of appeal or refiling
of such application; provided, however, that if such pending claim has not issued as a claim or an issued patent within the SurModics
Patent Rights within ** years after the filing date from which such patent application takes priority, such pending claims shall
not be a Valid Claim for purposes of this Agreement.

 

	2.	REPRESENTATIONS AND WARRANTIES.

 

2.1             
Each Party represents and warrants to the other Party as follows:

 

2.1.1       
Organization. Such Party is duly organized, validly existing and in good standing under the laws of the jurisdiction
in which it is organized.

 

2.1.2       
Authorization and Enforcement of Obligations. Such Party (a) has the requisite power and authority and the
legal right to enter into this Agreement and to perform its obligations hereunder; and (b) has taken all requisite action on its
part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder. This Agreement
has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid, binding obligation, enforceable against
such Party in accordance with its terms.

 

2.1.3       
Consents. All necessary consents, approvals and authorizations of all governmental authorities and other persons
or entities required to be obtained by such Party in connection with this Agreement have been obtained.

 

2.1.4       
No Conflict. The execution and delivery of this Agreement and the performance of such Party’s obligations
hereunder (a) does not conflict with or violate any requirement of applicable laws, regulations or orders of governmental bodies;
and (b) does not conflict with, or constitute a default under, any contractual obligation of such Party or to which such Party
may be subject although not a Party.

 

    	6

    	 

    

2.2             
Edge represents and warrants to SurModics as follows:

 

2.2.1       
Edge shall at all times during the term of this Agreement comply and cause its sublicensees and Affiliates to comply
with all laws that may control or apply to the research, testing, development, distribution or marketing of each Product or any
other activity undertaken pursuant to this Agreement.

 

2.2.2       
To the best of Edge’s knowledge and belief Edge has sufficient and/or beneficial title under the Edge IP Rights
to enable SurModics to perform the activities contemplated under the Development Program and that SurModics’ use of the Edge
IP Rights in performance of the Development Program will not constitute infringement or misappropriation of the intellectual property
rights of any third party.

 

2.3             
SurModics represents and warrants to Edge as follows:

 

2.3.1       
As of the Effective Date, Appendix A sets forth and includes a true and correct listing of all SurModics Patent
Rights and all SurModics Technology. To SurModics actual knowledge, SurModics has sufficient and/or beneficial title under the
SurModics IP Rights to grant Edge the license contemplated hereunder. There are no pending or threatened suits, legal proceedings,
claims or governmental investigations against SurModics relating to any claim that the SurModics IP Rights infringe or violate
any third party’s patents, copyrights, trademarks, trade secrets or other proprietary rights.

 

2.3.2       
SurModics has not granted any right, license, or interest in, to, or under the SurModics IP Rights or the SurModics
Research IP Rights that is inconsistent with the rights, licenses, and interests granted to Edge under the terms and conditions
of this Agreement.

 

2.3.3       
Upon request SurModics will promptly make available to Edge information material to the development and commercialization
of each Product in the Field and is necessary for any regulatory submission for the development of the Product regarding the SurModics
IP Rights or the SurModics Research IP Rights and Edge shall treat such information as Confidential Information under this Agreement.
SurModics shall not unreasonably withhold such information. Edge shall have the right to share this Confidential Information with
third parties bound by a confidentiality agreement no less restrictive than the confidentiality provisions set forth in this Agreement.
If there is a disagreement to provide certain material, the Parties shall, within ten (10) days of reaching the conclusion that
the disagreement cannot be resolved between them, engage an independent consultant mutually acceptable to the Parties for the purpose
of providing within thirty (30) days, after consideration of all evidence submitted by the Parties, an opinion that shall be binding
on the Parties. If the Parties are unable to agree upon an independent consultant, the Parties’ respective independent consultants
shall mutually decide on a third independent consultant that shall be responsible for rendering a binding opinion on the Parties
with regard to the information to be provided by SurModics to Edge. The expense of the independent consultant shall be borne by
the non-prevailing party. SurModics will make available to Edge, promptly upon Edge’s request, every Material Safety Data
Sheet(s) associated with the components of the Formulation that are subject to the control of SurModics, and shall update such
Material Safety Data Sheet(s) as required by applicable law, statute or regulation. The Product supplied to Edge, if manufactured
by SurModics, shall be produced in compliance with the applicable federal, state, and local laws of the jurisdiction in which the
Product is produced and where it will be registered and all required certifications, registrations, or licenses with respect to
the Product will be obtained by SurModics, if manufactured by SurModics and subject to further clarification with regard to cost
and specific requirements in a manufacturing supply agreement to be executed by the Parties subject to Section 3.2.1 hereof.

 

    	7

    	 

    

2.3.4       
SurModics owns or controls the SurModics IP Rights.

 

2.3.5       
SurModics will not knowingly incorporate, infringe or misappropriate the intellectual property rights of a third
party during the course of the Development Program.

 

2.3.6       
EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 2, SURMODICS MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS
OR IMPLIED, REGARDING THE MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE FORMULATION AND EACH PRODUCT, OR ANY OF THE
RIGHTS LICENSED TO EDGE UNDER THIS AGREEMENT, INCLUDING ANY REPRESENTATION OR WARRANTY REGARDING VALIDITY, ENFORCEABILITY, OR NON-INFRINGEMENT.

 

 

	3.	LICENSE GRANT.

 

3.1             
License Grant to Edge.

 

3.1.1       
On the terms and conditions of this Agreement, SurModics hereby grants to Edge an exclusive (even as to SurModics),
worldwide, royalty-bearing license under the SurModics IP Rights, SurModics Research IP Rights, and SurModics’ rights under
the Combination IP Rights to make, have made (subject to Section 3.2.1) develop, use, offer for sale, sell, export and import
the Product for use in the Field.

 

3.1.2       
Edge shall have the right to grant Sublicenses and the recipient of a Sublicense from Edge shall have the right to
grant Sublicenses, provided that compensation to SurModics is not reduced or diminished by the Sublicense, subject to the Sublicensing
Revenue described in Section 4.1.5 hereof, to (a) third parties, other than Affiliates, for the purpose of developing or
commercializing each Product in each case jointly with, or for the benefit of, Edge, or (b) to Affiliates; provided, however, that
Edge shall allow its sublicensees only one layer of delegation with regard to Sublicensing. Additional Sublicensing layers must
be approved by SurModics; such approval shall not be unreasonably withheld. Edge shall provide SurModics with a copy of each Sublicense
agreement promptly after executing the same; provided, however, that Edge shall have the right to redact any confidential financial
terms from the copy provided to SurModics; provided, however, SurModics shall have the ability to access financial information
necessary to ascertain Edge’s compliance with the payment of Sublicensing Revenue. Any such Sublicense shall be subject and
subordinate to the terms and conditions of this Agreement and Edge shall remain responsible for all payments due to SurModics hereunder
and Edge shall remain liable for any breach of any Sublicenses.

    	8

    	 

    

 

3.2             
Manufacturing Rights to SurModics.

 

3.2.1       
SurModics shall manufacture all Clinical Trial Material necessary to support Phase II Clinical Trials and any earlier
Clinical Trials. Subject to execution of the agreement described in this Section 3.2 and unless otherwise agreed to by the Parties,
SurModics will have the right to manufacture (a) Phase III Clinical Trial Material and (b) Commercial Supply subject to the following:

 

(a)               
Edge shall negotiate in good faith and exclusively with SurModics, for a period of no less than three (3) months,
an agreement for SurModics to manufacture Phase III Clinical Trial Material and Commercial Supply.

 

(b)              
The negotiations of such manufacturing agreement shall commence promptly following successful completion of the Phase
II Clinical Trials and after finalization of the manufacturing process for each Product.

 

3.2.2       
Edge shall not engage any third party to manufacture Phase III Clinical Trial Material or Commercial Supply unless
and until SurModics and Edge fail to agree upon a mutually agreeable manufacturing agreement. Any such agreement shall address
a mutually agreeable price for each Product and SurModics meeting of Edge’s reasonable requirements for timeliness, quality,
and quantity criteria for the Product. As part of such manufacturing agreement and for the purposes of SurModics manufacturing
Clinical Trial Material to support the Phase II Clinical Trial(s) and any earlier Clinical Trials conducted by Edge, Edge shall
grant to SurModics a royalty-free, nonexclusive, worldwide license (with the right to grant sublicenses, such sublicenses must
be approved by Edge, such approval shall not be unreasonably withheld) as may be necessary other than sublicenses that are unacceptable
to Edge for commercially reasonable reasons to fulfill any manufacturing and development obligations for the Clinical Trial Material
and Commercial Supply under the Edge IP Rights, Edge Research IP Rights and Edge’s rights under the Combination IP Rights
to make and have made the Product in the Field solely for sale to Edge, its sublicensees and their respective Affiliates.

 

3.2.3       
In the event Edge fulfills its duties pursuant to Section 3.2.1 (e.g., negotiations in good faith and exclusively
with SurModics) and the Parties are unable to negotiate a mutually agreeable manufacturing agreement and as a result Edge engages
a manufacturer other than SurModics to make the Product, then SurModics will provide Edge and such manufacturer(s) with the necessary
documentation to manufacturer the Product, at Edge’s expense, including the following: copy of batch records, production
specifications, right to reference the drug master file, if it exists, raw material specifications and standard test methods. Any
information obtained by Edge and such manufacturer(s) for manufacturing purposes shall be treated as the Confidential Information
of SurModics, provided that Edge and such manufacturer(s) shall be permitted to disclose such information to third parties bound
by a confidentiality agreement no less restrictive than the confidentiality provisions set forth in this Agreement and to regulatory
authorities.

 

3.2.4       
In the event either Party engages a subcontractor to assist in the development and manufacturing, such Party shall
require the subcontractor to comply with every provision of this Agreement as if the subcontractor itself were a party and such
Party shall be liable for all Liabilities resulting from such subcontractor’s breach of the same.

 

    	9

    	 

    

3.3             
Inspection. SurModics will permit Edge or its duly authorized representatives (who is not a Competitor to
SurModics) to observe and consult with SurModics during the term of this Agreement. SurModics also agrees that Edge and its duly
authorized agents (who are not a Competitor to SurModics) will have access subject to request and approval by SurModics; during
normal operational hours and during active manufacturing of the Product, to inspect the facility and manufacturing process in regards
to (i) the equipment and materials, (ii) the storage facilities for the raw materials and the Product, and (iii) all records relating
to manufacturing of the Product. Edge’s right to access, inspect and audit the SurModics’ facility and manufacturing
process shall be subject to the following limitations:

 

3.3.1       
Any information obtained by Edge or its duly authorized representatives through such inspections and audits shall
be treated as the Confidential Information of SurModics, provided that Edge shall be permitted to disclose such information to
third parties under an obligation of confidentiality and to regulatory authorities.

 

3.3.2       
Edge’s access, inspection and audit of the SurModics’ facility and manufacturing process shall be at
Edge’s expense.

 

3.3.3       
SurModics shall be permitted to take reasonable measures to restrict Edge’s access, inspection and audit of
the SurModics’ facility and manufacturing process in order to protect the confidentiality of the SurModics’ other clients
and their products and processes including observation of the required security procedures at all facilities.

 

3.3.4       
Edge shall provide SurModics a summary of the findings from each report prepared in connection with any such access,
inspections and audits.

 

3.3.5       
Edge may access, inspect and audit the SurModics’ facility and manufacturing process not more than once per
calendar year; provided, however, that if Edge’s access, inspection or audit reveals a breach by the SurModics of its obligations
hereunder, then Edge may return until the breach has been cured.

 

3.3.6       
Edge shall provide SurModics no less than thirty (30) days advance notice of any access, inspection or audit visit
to the SurModics’ facility and the audit length will be no more than three (3) full business days, subject to necessary extension
by mutual agreement of the parties and the exact audit dates will be determined by mutual agreement of the Parties.

 

3.4             
No Implied Licenses; Reservation of Rights.

 

3.4.1       
Only the licenses and rights expressly granted herein shall be of legal force and effect. No license or other right
shall be created hereunder by implication, estoppel or otherwise. Edge acknowledges that SurModics’ business involves the
application of the SurModics Technology to numerous drugs and other products and that SurModics retains the right (expressly subject
to SurModics’ obligations under this Agreement or under any other agreement between the Parties) to apply its technology
to drugs or products owned by SurModics or any third party and to make, use or sell drugs or products owned by SurModics or any
third party. For the avoidance of doubt, no license is conferred to Edge under the SurModics IP Rights, SurModics Research IP Rights
or SurModics’ rights under the Combination IP Rights to research, develop, make, have made, use, offer to sell, sell, have
sold, import, export or otherwise deal in or with any product, item, device or technology other than the Product in the Field,
and SurModics retains and reserves all rights that are not explicitly granted to Edge herein including the sole and exclusive right
to use and exploit SurModics IP Rights, SurModics Research IP Rights and SurModics’ rights under the Combination IP Rights
to research, develop, make, have made, use, offer to sell, sell, have sold, import, export or otherwise deal in any product, process,
item, device, machine or other apparatus that is not the Product.

 

    	10

    	 

    

3.4.2       
Only licenses and rights expressly granted herein shall be of legal force and effect. No license or other right shall
be created hereunder by implication, estoppel or otherwise. SurModics acknowledges that Edge’s business involves the intracranial
delivery of other agent(s) or composition(s) through different depot formulation and that Edge retains the right (expressly subject
to Edge’s obligations under this Agreement or under any other agreement between the Parties) to apply its technology to different
depot formulations owned by any third party. For the avoidance of doubt, no license is conferred to SurModics under the Edge IP
Rights, Edge Research IP Rights or Edge’s rights under the Combination IP Rights to research, develop, make, have made, use,
offer to sell, sell, have sold, import, export or otherwise deal in or with any product, item, device or technology, and Edge retains
and reserves all rights that are not explicitly granted to SurModics herein including the sole and exclusive right to use and exploit
Edge IP Rights, Edge Research IP Rights and Edge’s rights under the Combination IP Rights to research, develop, make, have
made, use, offer to sell, sell, have sold, import, export or otherwise deal in any product, process, item, device, machine or other
apparatus that is not the Product without SurModics.

 

	4.	FINANCIAL TERM.

 

4.1             
Royalties.

 

4.1.1       
Within thirty (30) days following the First Commercial Sale of each Product and achievement of a Milestone (as defined
below), Edge shall give written notice to SurModics thereof.

 

4.1.2       
Edge shall owe SurModics the following non-refundable, non-creditable amounts set forth below upon satisfaction of
the applicable Milestone for each Product (on a Product-by-Product basis including combinations thereof with the exception of the
“Initial Milestone” and Edge shall pay SurModics the following non-refundable, non-creditable amounts as set
forth below. For each Product developed by Edge (all references to regulatory milestones are intended to mean with the United States
FDA or the first agency applied to in any jurisdiction) each a “Milestone.”

 

    	11

    	 

    

	Milestone 	Milestone

Payment

Amount
	Milestone Payment Due
	Upon execution of this Agreement “Initial Milestone”	** U.S. Dollars	The first ** paid within thirty days of execution of this Agreement, an additional ** within six months of execution of this Agreement (April 15, 2010) and the final ** no later than September 30, 2011.
	Upon dosing of first patient in the first Phase III Clinical Trial for a Product	** U.S. Dollars	Within ** of satisfaction of the Milestone
	Upon acceptance for review of the first application with the FDA (or foreign equivalent) for the purpose of obtaining regulatory approval to promote, market, distribute or sell a Product	** U.S. Dollars	Within ** of satisfaction of the Milestone
	Upon first approval from the FDA granting permission to promote, market, distribute or sell a Product in the United States	** U.S. Dollars	Within ** of satisfaction of the Milestone
	Upon first approval from a European regulatory agency granting permission to promote, market, distribute or sell a Product in Europe	** U.S. Dollars	Within ** of satisfaction of the Milestone
	Upon first approval from a Japanese regulatory agency granting permission to promote, market, distribute or sell a Product in Japan	** U.S. Dollars	Within ** of satisfaction of the Milestone
	Upon first achievement of worldwide Net Sales of Product in an amount equal or greater than ** U.S. Dollars in any calendar year	** U.S. Dollars	Within ** of satisfaction of the Milestone
	Upon first achievement of worldwide Net Sales of Product in an amount equal or greater than ** U.S. Dollars in any calendar year	** U.S. Dollars	Within ** of satisfaction of the Milestone
	Upon first achievement of worldwide Net Sales of Product in an amount equal or greater than ** U.S. Dollars in any calendar year	** U.S. Dollars	Within ** of satisfaction of the Milestone

    	12

    	 

    

 

4.1.3       
Earned Royalties. During the applicable Royalty Term, Edge shall pay to SurModics a royalty of ** of Net Sales
of each Product within forty-five (45) after the end of each calendar quarter following the First Commercial Sale of each Product
by Edge, its sublicensees or their respective Affiliates. For clarity sake, if Edge introduces more than one Product, Edge will
owe a royalty of ** of Net Sales on every Product regardless of which or if more than one of the compounds including combinations
thereof identified as Active Agent are commercialized utilizing SurModics IP Rights.

 

4.1.4       
Royalty Abatements. Edge shall be entitled to the following royalty reductions:

 

(a)               
Know-How Royalty. If, during any calendar quarter during the applicable Royalty Term there is no Valid Claim
in a country that covers the manufacture, use, offer for sale, sale or import of the Product then the applicable royalty rate in
such country shall be reduced by **.

 

(b)              
Directly Competing Product. In the event that a Directly Competing Product is sold by a third party in a particular
country and such Directly Competing Product attains in such country a market share of more than ** of aggregate gross dollar sales
of each Product in a calendar year then the applicable royalty rate in such country shall be reduced by **. For clarity, the royalty
rate payable to SurModics will not be reduced by more than ** and shall only be reduced with respect to the Product to which such
Directly Competing Product relates.

 

(c)               
Patent Infringement Claim. During the pendency of a Patent Infringement Claim in a particular country, the
applicable royalty rate in such country shall be reduced by **; provided, however, following an adjudication of the Patent Infringement
Claim (i) without a finding of infringement (final and non-appealable), the royalty rate shall return to the rate set forth in
Section 4.1.3 and Edge shall promptly pay SurModics the Royalty Credit associated with such Patent Infringement Claim, or (ii)
with a finding of infringement (final and non-appealable), the applicable royalty rate (as defined in Section 4.1.3) in such country
shall thereafter be further reduced by **.

 

(d)              
Maximum Royalty Reduction. For clarity, except as set forth in Section 4.1.4(c)(ii), during the applicable
Royalty Term, the royalty rate payable to SurModics will not be reduced by more than **.

 

4.1.5       
Sublicensing Revenue. In addition, in the event that Edge Sublicenses its rights under the SurModics IP Rights,
SurModics Research IP Rights, and SurModics rights under the Combination IP Rights to develop, use, offer for sale, sell, export
or import the Product for use in the Field to a third party, then Edge shall pay to SurModics ** of its Sublicensing Revenue. For
the avoidance of doubt, the Sublicensing Revenue shall be in addition to the royalties due and owing under Section 4.1.3
and Section 4.1.4 of this Agreement.

    	13

    	 

    

 

4.1.6       
If Edge, its sublicensees or their respective Affiliates sells the Product to a third party who also purchases other
products or services from Edge, its sublicensees or their respective Affiliates, and Edge, its sublicensees or their respective
Affiliates discounts the purchase price of each Product to a greater degree than it generally discounts the price of its other
products or services to such customer, then in such case the Net Sales for the sale of each Product to such third party shall equal
the arm’s length price that third parties would generally pay for each Product alone when not purchasing any other product
or service from Edge, its sublicensees or their respective Affiliates. For purposes of this provision “discounting”
includes establishing the list price at a lower-than-normal level.

 

4.2             
Royalty Reports.

 

4.2.1       
Within sixty (60) days after the end of each calendar quarter following the First Commercial Sale of each Product
by Edge, its sublicensees or their respective Affiliates, Edge shall furnish to SurModics a written report showing in reasonably
specific detail, on a country-by-country basis, (a) the gross sales of each Product sold by Edge, its sublicensees and their respective
Affiliates during such calendar quarter and the calculation of Net Sales from such gross sales; (b) the calculation of the royalties,
if any, which shall have accrued based upon such Net Sales; (c) the withholding taxes, if any, required by law to be deducted from
such royalties; and (d) the exchange rates, if any, used in determining the amount of United States dollars.

 

4.2.2       
With respect to sales of each Product invoiced in United States dollars, all such amounts shall be expressed in United
States dollars. With respect to sales of each Product invoiced in a currency other than United States dollars, all such amounts
shall be expressed both in the currency in which the sale is invoiced and in the United States dollar equivalent. The United States
dollar equivalent shall be calculated using the exchange rate (local currency per US$1) published in The Wall Street Journal,
United States Western Edition, under the heading “Currency Trading” on the last business day of the applicable calendar
quarter. All royalties payable hereunder shall be calculated based on Net Sales expressed in United States dollars.

 

4.2.3       
Edge shall keep complete and accurate records in sufficient detail to properly reflect all gross sales and Net Sales
and to enable the royalties payable to be determined.

 

4.2.4       
All royalties shown to have accrued by each royalty report provided under this Section 4.2 shall be payable
on the date such royalty report is due. Payment of royalties in whole or in part may be made in advance of such due date.

 

4.3             
Audits.

 

4.3.1       
Upon the written request of SurModics and not more than once in each calendar year, Edge shall permit an independent
certified public accounting firm of nationally recognized standing, selected by SurModics and reasonably acceptable to Edge, at
SurModics’ expense, to have access during normal business hours to such records of Edge as may be reasonably necessary to
verify the accuracy of the royalty reports hereunder for any year ending not more than thirty-six (36) months prior to the date
of such request. The accounting firm shall disclose to SurModics only whether the reports are correct or not and the specific details
concerning any discrepancies. No other information shall be shared.

 

    	14

    	 

    

4.3.2       
If such accounting firm concludes that additional royalties were owed during the audited period, Edge shall pay such
additional royalties within thirty (30) days of the date SurModics delivers to Edge such accounting firm’s written report
so concluding. The fees charged by such accounting firm shall be paid by SurModics; provided, however, if the audit discloses that
the royalties payable by Edge for such period are more than ** of the royalties actually paid for such period, then Edge shall
pay the reasonable fees and expenses charged by such accounting firm.

 

4.3.3       
SurModics shall treat all financial information subject to review under this Section 4.3 as confidential,
and shall cause its accounting firm to retain all such financial information in confidence.

 

4.4             
Withholding Taxes. Edge shall be entitled to deduct from the royalty payments otherwise due to SurModics hereunder
the amount of any withholding taxes, value-added taxes or other taxes, levies or charges with respect to such royalty payments
that are required to be withheld by Edge, to the extent Edge pays to the appropriate governmental authority on behalf of SurModics
such taxes, levies or charges. Edge shall use reasonable efforts to minimize any such taxes, levies or charges required to be withheld
on behalf of SurModics by Edge. Edge promptly shall deliver to SurModics proof of payment of all such taxes, levies and other charges,
together with copies of all communications from or with such governmental authority with respect thereto.

 

4.5             
Payment Method. All payments by Edge to SurModics hereunder shall be in United States Dollars in immediately
available funds and shall be made by wire transfer from a United States bank located in the United States to such bank account
as designated from time to time by SurModics to Edge.

 

4.6             
Interest. Edge additionally shall pay SurModics interest on all amounts due hereunder which are not paid on
or before the due date therefore, calculated at a rate equal to the lesser of **, or the maximum rate permitted by law, whichever
is lower, calculated on the number of days such payment is past due, compounded monthly.

 

	5.	DEVELOPMENT PROGRAM.

 

5.1             
Conduct. The Parties shall perform their respective obligations under the Development Agreement. Each Party
shall use its Commercially Reasonable Efforts to perform its obligations under the Development Agreement within the proposed time
schedules set forth therein. Any intellectual property rights (including any Know-How or Patent Rights) developed or conceived
by either Party shall be governed in accordance with the terms of the Development Agreement.

 

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5.2             
Term. The Development Program shall terminate upon the completion of the activities described in the Development
Agreement, or such other date as the Parties mutually agree in writing.

 

5.3             
No Warranty. SurModics does not represent, warrant, or guarantee that the results or outcome of the Development
Program (or any portion thereof), or any products produced therefrom are merchantable or satisfactory for any particular purpose,
and there are no warranties, express or implied, to such effect. Edge bears the sole risk of acceptance, reliance on or use of
the results provided to Edge by SurModics under the Development Program.

 

5.4             
Other Active Agents. In the event the feasibility of using ** or ** (each, an “Other Active Agent”)
with the Formulation in the Field is demonstrated under a separate agreement between SurModics and Edge, then the meaning of the
term Active Agent shall be expanded to include such Other Active Agent (or both, as the case may be) (the “Active Agent
Option”). As long as Edge has an Active Agent Option, SurModics shall not sell, license, or grant rights to SurModics
IP Rights, SurModics Research IP Rights, and SurModics’ rights under the Combination IP Rights for use with the Other Active
Agents for use in the Field other than with Edge. The Active Agent Option shall be time limited for a ** period beginning with
the Effective Date of this Agreement. Edge may extend the Active Agent Option for an additional ** period subject to payment of
an extension fee of ** U.S. Dollars on or prior to the expiration of the initial ** period. The parties agree that each Product
incorporating an Other Active Agent (and each unique combination of Active Agents) shall be considered separate Products and shall
require payment of all the enumerated Milestones in Section 4 as the new Product meets the enumerated Milestones with the
exception of the Initial Milestone due upon execution of this Agreement and no credit will be given for previously paid Milestone
amounts. In addition, Edge shall owe the royalty pursuant to Section 4.1.3 and Sublicensing Revenue pursuant to Section
4.1.5 on each Product.

 

	6.	DEVELOPMENT AND COMMERCIALIZATION BY EDGE.

 

6.1             
Responsibility. Except as otherwise set forth in the Development Program and this Section 6.1, Edge
shall be solely responsible, at its sole cost, for conducting the development including Clinical Trials, regulatory approval and
commercialization of each Product, and shall own all regulatory applications, filings, approvals and licenses for each Product.

    	16

    	 

    

 

6.2             
Diligence.

 

6.2.1       
Edge shall use Commercially Reasonable Efforts to actively develop and obtain regulatory approvals to market each
Product in major markets throughout the world as expeditiously as possible, and following such approval, shall use Commercially
Reasonable Efforts to maximize Net Sales. Without limiting the generality of the foregoing, Edge shall use Commercially Reasonable
Efforts to achieve the following milestones within the applicable period commencing on the Effective Date:

 

	 	Period	 	Milestone
	 	**	 	**
	 	**	 	**

	 	**	 	**
	 	**	 	**
	 	**	 	**
	 	**	 	**

 

6.2.2       
The foregoing milestones are estimates only and shall not be interpreted as firm deadlines; provided, however, that,
unless the Parties otherwise mutually agree in writing, Edge’s failure to use Commercially Reasonable Efforts to achieve
the diligence obligations of this Section 6.2.1 shall constitute a material breach of this Agreement unless the delay is
solely attributable to SurModics.

 

6.3             
Development and Commercialization Reports. Edge shall keep complete and accurate records of its activities
conducted under this Agreement and the results thereof. Within thirty (30) days after the end of each calendar quarter until the
First Commercial Sale of each Product on a country-by-country basis, Edge shall prepare and provide SurModics with a reasonably
detailed written report of the activities conducted under this Agreement, and the results thereof, through such date of such report
to develop and obtain regulatory approvals to market each Product in major markets throughout the world.

 

6.4             
Regulatory Communications.

 

6.4.1       
If the FDA or the governing health authorities of any country initiates any oral communication with Edge directly
regarding the SurModics Technology and/or SurModics IP Rights, Edge shall have the right to respond to such communication to the
extent reasonably necessary or appropriate under the circumstances; provided, however, that (a) Edge shall use reasonable efforts
to limit the communications regarding the SurModics Technology and/or SurModics IP Rights that are conducted without the participation
of SurModics; (b) promptly thereafter, Edge shall provide SurModics with written notice thereof in reasonably specific detail describing
the communications regarding the SurModics Technology and/or SurModics IP Rights; and (c) Edge promptly shall provide SurModics
with copies of all minutes and other materials resulting therefrom directly regarding the SurModics Technology and/or SurModics
IP Rights.

 

6.4.2       
Edge promptly shall provide SurModics with copies of all written communications from the FDA or the governing health
authorities of any country directly regarding the SurModics Technology and/or SurModics IP Rights. With respect to any filing,
communication or other submission with the FDA or the governing health authorities of any country directly regarding the SurModics
Technology and/or SurModics IP Rights, (a) Edge shall provide SurModics with an advance copy of the reasonably complete draft thereof;
(b) SurModics shall have a reasonable opportunity (not to exceed ten (10) business days) to review, comment and consult on each
such draft, taking into consideration any response deadline; (c) the Parties shall discuss SurModics’ comments relating to
the SurModics Technology and/or SurModics IP Rights; and (d) Edge shall in good faith incorporate the reasonable comments of SurModics.

    	17

    	 

    

 

	7.	CONFIDENTIALITY.

 

7.1             
Confidentiality. During the term of this Agreement and for a period of seven (7) years following the expiration
or earlier termination hereof, each Party shall maintain in confidence the Confidential Information of the other Party, shall not
use or grant the use of the Confidential Information of the other Party except as expressly permitted hereby, and shall not disclose
the Confidential Information of the other Party except on a need-to-know basis to such Party’s Affiliates, directors, officers,
employees, sublicensees, and consultants, to the extent such disclosure is reasonably necessary in connection with such Party’s
activities as expressly authorized by this Agreement. To the extent that disclosure to any person is authorized by this Agreement,
prior to disclosure, a Party shall obtain written agreement of such person to hold in confidence and not disclose, use or grant
the use of the Confidential Information of the other Party except as expressly permitted under this Agreement. Each Party shall
notify the other Party promptly upon discovery of any unauthorized use or disclosure of the other Party’s Confidential Information.

 

7.2             
Terms of Agreement. Neither Party shall disclose any terms or conditions of this Agreement to any third party
without the prior consent of the other Party; provided, however, that a Party may disclose the terms or conditions of this Agreement,
(a) on a need-to-know basis to its legal and financial advisors to the extent such disclosure is reasonably necessary, and (b)
to a third party in connection with (i) an equity investment in such Party, (ii) a merger, consolidation or similar transaction
by such Party, or (iii) the sale of all or substantially all of the assets of such Party. Notwithstanding the foregoing, prior
to execution of this Agreement, the Parties have agreed upon the substance of information that can be used to describe the terms
and conditions of this transaction, and each Party may disclose such information, as modified by mutual written agreement of the
Parties, without the consent of the other Party.

 

7.3             
Permitted Disclosures. The confidentiality obligations under this Section 7 shall not apply to the
extent that a Party is required to disclose information by applicable law, regulation or order of a governmental agency or a court
of competent jurisdiction; provided, however, that such Party shall provide written notice thereof to the other Party, consult
with the other Party with respect to such disclosure and provide the other Party sufficient opportunity to object to any such disclosure
or to request confidential treatment thereof. In the event that confidential treatment or other remedy is not obtained, the receiving
Party shall furnish only that portion of the Confidential Information that is legally required to be furnished in the opinion of
the receiving Party’s counsel. Such disclosed information shall remain Confidential Information.

 

	8.	INDEMNIFICATION AND INSURANCE.

 

8.1             
By Edge. Edge shall indemnify and hold harmless SurModics, and its directors, officers, employees and agents,
from and against all losses, liabilities, damages and expenses, including reasonable attorneys’ fees and costs (collectively,
“Liabilities”), resulting from any claims, demands, actions or other proceedings brought or initiated by any
third party to the extent resulting from (a) the material breach of any representation, warranty or covenant by Edge under this
Agreement; or (b) the manufacture, use, sale, testing, handling or storage of each Product by or on behalf of Edge, its sublicensees
or their respective Affiliates, customers or end-users (including with respect to the infringement or misappropriation of intellectual
property rights of third parties) other than Liabilities arising from SurModics’ material breach of its obligations to Edge
or SurModics’ gross negligence or willful misconduct, or (c) the use of the Confidential Information of SurModics by Edge,
its sublicensees or their respective Affiliates in violation of this Agreement.

 

    	18

    	 

    

8.2             
By SurModics. SurModics shall indemnify and hold harmless Edge, and its directors, officers, employees and
agents, from and against all Liabilities resulting from any claims, demands, actions or other proceedings brought or initiated
by any third party to the extent resulting from (a) the material breach of any representation, warranty or covenant by SurModics
under this Agreement; or (b) the use of the Confidential Information of Edge by SurModics, its sublicensees or their respective
Affiliates in violation of this Agreement.

 

8.3             
Procedure. If a Party (the “Indemnitee”) intends to claim indemnification under this Section
8, it shall promptly notify the other Party (the “Indemnitor”) in writing of any claim, demand, action or
other proceeding for which the Indemnitee intends to claim such indemnification, and the Indemnitor shall have the right to participate
in, and, to the extent the Indemnitor so desires, to assume the defense thereof with counsel mutually satisfactory to the Parties;
provided, however, that an Indemnitee shall have the right to retain its own counsel, with the fees and expenses to be paid by
the Indemnitor, if representation of such Indemnitee by the counsel retained by the Indemnitor would be inappropriate due to actual
or potential differing interests between the Indemnitee and any other Party represented by such counsel in such proceeding. The
obligations of this Section 8 shall not apply to amounts paid in settlement of any claim, demand, action or other proceeding
if such settlement is effected without the consent of the Indemnitor, which consent shall not be withheld or delayed unreasonably.
The failure to deliver written notice to the Indemnitor within a reasonable time after the commencement of any such action, if
prejudicial to its ability to defend such action, shall relieve the Indemnitor of any obligation to the Indemnitee under this Section
8, but the omission so to deliver written notice to the Indemnitor shall not relieve it of any obligation that it may have
to any Party claiming indemnification otherwise than under this Section 8. The Indemnitee, its employees and agents, shall
reasonably cooperate with the Indemnitor and its legal representatives in the investigation of any claim, demand, action or other
proceeding covered by this Section 8.

 

8.4             
Enforcement. At any time during the term of this Agreement, SurModics and Edge shall each promptly notify
the other in writing upon learning of any Infringing Product. As used herein, “Infringing Product” shall mean
any product sold by a third party that (a) is formulated as a biodegradable **; (b) contains the Active Agent; (c) infringes or
is alleged to infringe any of the SurModics IP Rights, SurModics Research IP Rights or the SurModics’ rights under the Combination
IP Rights licensed to Edge hereunder covering each Product.

 

8.4.1       
SurModics IP Rights. SurModics shall have the sole right, at its discretion and expense, to enforce the SurModics
IP Rights and any SurModics Research IP Rights against an Infringing Product to the extent such enforcement relates to the SurModics
Technology. Upon receipt of a written notice from Edge requesting that SurModics initiate legal proceedings against an Infringing
Product, SurModics agrees that it shall use its Commercially Reasonable Efforts to evaluate (a) whether it believes that such Infringing
Product infringes the SurModics IP Rights or the SurModics Research IP Rights, and (b) the merits of any and all appropriate legal
actions that may be brought against such third party to enforce the SurModics IP Rights or the SurModics Research IP Rights, taking
into consideration such factors as the likelihood of success on the merits of any such action, the likelihood that any such action
might impair or otherwise affect the scope of such rights, the likelihood that failure to initiate legal proceedings might impair
or otherwise negatively affect Edge’s ability to commercialize Product and other similar factors. In the event that SurModics
initiates an enforcement action, Edge shall assist SurModics in connection with any such action, upon request and at SurModics’
sole expense, and to the extent commercially reasonable; and in any event, SurModics shall keep Edge reasonably informed of the
progress of any such enforcement action. Any settlement or recovery shall be distributed in the following order: (i) to SurModics
for reimbursement of expenses related to such claim, including but not limited to attorneys’ fees and expenses associated
with the legal proceedings; and (ii) ** to Edge and ** to SurModics for damages related to the infringement, including lost profits.
SurModics shall not make any settlement or compromise that adversely affects the interests of Edge with respect to the Product
without the prior consent of Edge.

 

    	19

    	 

    

Notwithstanding the
foregoing, in the event SurModics chooses not to initiate an enforcement action, Edge shall have the right but not the obligation
to initiate and prosecute such an action at its cost and expense provided, however that SurModics shall use its Commercially Reasonable
Efforts to cooperate with Edge, at Edge’s sole expense. The amount of any settlement or recovery obtained in such enforcement
action shall be retained by Edge, except that SurModics shall receive a portion equivalent to the royalties it would have received
in accordance with the terms of this Agreement as if such amount were Net Sales of Edge. Edge shall not make any settlement or
compromise that adversely affects the interests of SurModics without the prior consent of SurModics.

 

8.4.2       
Combination IP Rights. 

 

Edge shall have the
right, at its discretion and expense to enforce Combination IP Rights against an Infringing Product to the extent such enforcement
relates to the Product for use in the Field. If both Parties wish to participate in such action, the action shall be brought jointly
by both Parties and they will jointly select counsel and equally share any expenses. The Parties shall use their Commercially Reasonable
Efforts to cooperate with each other in connection with any such action to enforce Combination IP Rights.

 

Any settlement or recovery
shall be distributed in the following order: (i) to Edge (or pro rata to each Party if the Parties proceed jointly) for reimbursement
of expenses related to such claim, including but not limited to attorneys’ fees and expenses associated with the legal proceedings;
(ii) to Edge for any damages related to the license rights granted to it, including lost profits related to sales of Product in
the Field; provided, however, that any such amounts (after relevant adjustment to convert to Net Sales of Products) shall be subject
to the royalty obligations under this Agreement; and (iii) to the extent any settlement or recovery remains, to each Party equally.

 

No settlement, consent
judgment or other voluntary final disposition of a suit under this Section 8.4.2 may be undertaken without the prior consent of
the other Party if such settlement would require the other Party to be subject to an injunction or to make a monetary payment or
would otherwise adversely affect the other Party’s rights under this Agreement or the validity of the Combination IP Rights.

    	20

    	 

    

 

8.4.3SurModics
Costs. In any action brought by Edge pursuant to Section 8.4.1 (other than an action brought jointly by the Parties)
in which SurModics is named or becomes involuntarily involved (including, for example, as a result of a counterclaim by Edge, or
is required to respond to a subpoena), Edge shall indemnify and hold SurModics harmless from any damages, liabilities, costs or
expenses resulting from any such action, and in such event, SurModics may be represented by counsel, of its own choice, and Edge
shall promptly reimburse SurModics for its costs of retaining counsel.

 

8.5             
Insurance. Each Party shall maintain insurance, including product liability insurance, with respect to its
activities under this Agreement regarding each Product in such amount as such Party customarily maintains with respect to similar
activities for its other products, but not less than such amount as is reasonable and customary in the industry. Each Party shall
maintain such insurance for so long as it continues its activities under this Agreement, and thereafter for so long as such Party
customarily maintains insurance for itself covering similar activities for its other products.

 

	9.	TERM AND TERMINATION.

 

9.1             
Term. This Agreement shall commence on the Effective Date and, unless earlier terminated pursuant to this
Section 9, shall continue in effect until the expiration of Edge’s obligation to pay royalties hereunder.

 

9.2             
Termination for Breach. If a Party has materially breached this Agreement (other than a breach by Edge of
its obligations under Section 6.2 hereof), and such material breach shall continue for thirty (30) days after written notice
of such breach was provided to the breaching party by the nonbreaching party, the nonbreaching party shall have the right at its
option to terminate this Agreement effective at the end of such thirty (30) day period.

 

9.2.1       
If Edge has breached its obligations under Section 6.2 hereof, then, as its sole remedy for such breach, SurModics
shall have the right at its sole discretion either (a) to terminate this Agreement, or (b) to convert the license granted to Edge
to non-exclusive, in either case effective upon written notice to Edge.

 

9.3             
Termination by Edge. Edge may terminate this Agreement at any time upon ninety (90) days prior written notice
to SurModics.

 

9.4             
Effect of Expiration or Termination.

 

9.4.1       
Expiration or termination of this Agreement shall be without prejudice to any rights which shall have accrued to
the benefit of a Party prior to such expiration or termination. Without limiting the foregoing, Sections 7, 8,
9.4 and 10 hereof shall survive any expiration or termination of this Agreement.

 

    	21

    	 

    

9.4.2       
Except as otherwise expressly set forth in this Agreement, promptly upon the expiration or earlier termination of
this Agreement, (a) Edge promptly shall prepare and provide SurModics with a final royalty report through the date of expiration
or termination, and shall pay to SurModics all royalties owing through such date, and (b) each Party shall return to the other
Party all tangible items regarding the Confidential Information of the other Party and all copies thereof; provided, however, that
each Party shall have the right to retain one (1) copy for its legal files for the sole purpose of determining its obligations
hereunder.

 

9.4.3       
Following termination of this Agreement, Edge may continue to sell the Product inventory for a wind-down period of
twelve (12) months subject to the required royalty payments, at which time any remaining Product shall be destroyed at Edge’s
expense.

 

	10.	MISCELLANEOUS.

 

10.1         
Governing Law. This Agreement shall be governed by, interpreted and construed in accordance with the laws
of the State of New Jersey, without regard to the conflicts of law principles thereof.

 

10.2         
Waiver. No waiver by a Party hereto of any breach or default of any of the covenants or agreements herein
set forth shall be deemed a waiver as to any subsequent and/or similar breach or default.

 

10.3         
Assignment. Neither this Agreement nor any right or obligation hereunder may be assigned or delegated, in
whole or Part, by either Party without the prior express written consent of the other; provided, however, that either Party may,
without the written consent of the other, assign this Agreement and its rights and delegate its obligations hereunder in connection
with the transfer or sale of all or substantially all of its business, or in the event of its merger, consolidation, change in
control or similar transaction. Any permitted assignee shall assume all obligations of its assignor under this Agreement. Any purported
assignment in violation of this Section 10.3 shall be void.

 

10.4         
Independent Contractors. The relationship of the Parties hereto is that of independent contractors. The Parties
hereto are not deemed to be agents, partners or joint venturers of the others for any purpose as a result of this Agreement or
the transactions contemplated thereby.

 

10.5         
Further Actions. Each Party shall execute, acknowledge and deliver such further documents and instruments
and to perform all such other acts as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 

10.6         
Amendment. No amendment or modification hereof shall be valid or binding upon the Parties unless made in writing
and signed by both Parties.

 

    	22

    	 

    

10.7         
Notices. All requests and notices required or permitted to be given to the Parties hereto shall be given
in writing, shall expressly reference the section(s) of this Agreement to which they pertain, and shall be delivered to the other
Party, effective on receipt, at the appropriate address as set forth below or to such other addresses as may be designated in
writing by the Parties from time to time during the term of this Agreement.

 

	 	If to SurModics:	SurModics Pharmaceuticals Inc.

                           750 Lakeshore Parkway

                           Birmingham, Alabama 35211

                           U.S.A.

                           Attn: License Administration

	 	 	 
	 	with a copy to:	SurModics, Inc

        9924 West 74th Street

        Eden Prairie, Minnesota 55344

	 	 	U.S.A.

        Attention: General Counsel

	 	 	 
	 	If to Edge:	NJIT-EDC Biotechnology Incubator

        Edge Therapeutics, Inc.

        211 Warren Street

        Newark, New Jersey 07103

	 	 	Attn: Brian A. Leuthner, President &
CEO
	 	 	 
			
	 	With a copy to:	Fox Rothschild LLP

        2700 Kelly Road, Suite 300

        Warrington, PA 18976

        Attn: Loren D. Danzis

	 	 	 

 

10.8         
Force Majeure. Nonperformance of a Party (other than for the payment of money) shall be excused to the extent
that performance is rendered impossible by strike, fire, earthquake, flood, governmental acts or orders or restrictions, failure
of suppliers, or any other reason where failure to perform is beyond the reasonable control and not caused by the negligence, intentional
conduct or misconduct of the nonperforming Party; provided, however, that the nonperforming Party shall use Commercially Reasonable
Efforts to resume performance as soon as reasonably practicable.

 

10.9         
Bankruptcy; Intellectual Property. All rights and licenses granted under or pursuant to this Agreement by
a bankrupt Party to the other Party are, and shall be deemed to be, for purposes of Section 365(n) of the Bankruptcy Code and any
similar law or regulation in any other country, license of rights to “intellectual property” as defined under Section
101(35A) of the Bankruptcy Code. The Parties agree that all intellectual property rights licensed hereunder are part of the “intellectual
property” as defined under Section 101(35A) of the Bankruptcy Code subject to the protections afforded the non-terminating
Party under Section 365(n) of the Bankruptcy Code, and any similar law or regulation in any other country. Each Party shall be
entitled to all similar protections as licensee under bankruptcy laws of other countries.

 

10.10     
No Consequential Damages. IN NO EVENT SHALL A PARTY BE LIABLE FOR SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL
DAMAGES ARISING OUT OF THIS AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, INCLUDING LOST PROFITS ARISING FROM OR RELATING
TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF SUCH DAMAGES, PROVIDED THAT THE FOREGOING LIMITATION ON LIABILITY
SHALL NOT APPLY TO THE LIABILITIES ARISING FROM EITHER PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. NOTHING IN THIS SECTION
10.10 IS INTENDED TO LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER PARTY UNDER SECTION 8 ABOVE
OR A PARTY’S RIGHT TO OBTAIN SUCH DAMAGES FOR A BREACH OF SECTION 7. A PARTY’S LIABILITY FOR THE SPECIAL, INCIDENTAL
OR CONSEQUENTIAL DAMAGES OF A THIRD PARTY SHALL CONSTITUTE THE DIRECT DAMAGES OF THE PARTY INCURRING THE LIABILITY.

 

    	23

    	 

    

10.11     
Complete Agreement. This Agreement constitutes the entire agreement between the Parties regarding the subject
matter hereof, and all prior representations, understandings and agreements regarding the subject matter hereof, either written
or oral, expressed or implied, are superseded and shall be and of no effect with the exception of the Development Agreement.

 

10.12     
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original
and together shall be deemed to be one and the same agreement.

 

10.13     
Headings. The captions to the several sections hereof are not a part of this Agreement, but are included merely
for convenience of reference only and shall not affect its meaning or interpretation.

 

10.14     
Severability. Should one or several provisions of this Agreement be or become invalid, then the Parties shall
substitute such invalid provisions by valid ones, which in their economic effect come so close to the invalid provisions that it
can be reasonably assumed that the Parties would have contracted this Agreement also with those new provisions. In case such provisions
cannot be found, the invalidity of one or several provisions of this Agreement shall not affect the validity of the Agreement as
a whole, unless the invalid provisions are of such essential importance for this Agreement that it is to be reasonably assumed
that the Parties would not have contracted this Agreement without the invalid provisions.

 

    	24

    	 

    

IN WITNESS WHEREOF, the Parties hereto have
each caused this License Agreement to be executed by their duly-authorized representatives as of the Effective Date.

 

 

	 	SURMODICS PHARMACEUTICALS, INC.
	 
	 	 	 
	 	By:	/s/ Arthur Tipton

	 
	 	 	 	 
	 	Name:	Arthur Tipton	 
	 			 
	 	Title:	President	 
	 	 	 	 
	 	 	 	 
	 	EDGE THERAPEUTICS, INC.	 
	 	 	 	 
	 	By:	/s/ Brian A. Leuthner	 
	 	 	 	 
	 	Name:	Brian A. Leuthner	 
	 	 	 	 
	 	Title:	President & CEO	 

 

    	25

    	 

    

 

Appendix A

 

SurModics Patent Rights

 

**

 

**

 

**

 

**

 

**

 

**

 

**

 

**

 

**

 

**

 

AND ANY U.S. CONTINUATION(S), CONTINUATION(S) IN PART, OR
DIVISIONALS AND ANY FOREIGN COUNTERPART OF THE ABOVE.

 

SurModics Technology

 

Proprietary Know-How Owned or Controlled by SurModics relating
to:

 

**

 

    	

    	 

    

Appendix B

 

Edge’s Technology

 

Proprietary Know-How Owned or Controlled by Edge Therapeutics
Relating to:

 

**

 

Edge Patent Rights

 

**

 

Edge Trademark Rights

 

**

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