Document:

Exhibit 10.15

 

EXCLUSIVE

SUPPLY AGREEMENT

 

THIS

EXCLUSIVE SUPPLY AGREEMENT (this “Agreement”), dated as of 31 August 2018 (the “Effective

Date”), is entered into by and between CLENE NANOMEDICINE, INC., a Delaware corporation having its principal

place of business at 3615 Millrock Dr., Salt Lake City, Utah 84121 (“Seller”), and 4LIFE RESEARCH,

LLC, a Utah limited liability company having its principal place of business at 9850 S. 300 W., Sandy, UT 84070 (“Buyer”,

and together with Seller, the “Parties”, and each, a “Party”).

 

RECITALS

 

A.            Seller

is in the business of researching, developing and manufacturing metallic constituents, including nanocrystals and ions, in water

made utilizing Seller’s Electrical Techniques (collectively, “Nanoforms”).

 

B.             Seller

is also researching and developing Nanoforms to be utilized in dietary supplements, topical creams and lotions, in foods and in

other non-pharmaceutical applications.

 

C.             Buyer

wishes to purchase certain Licensed Products exclusively from Seller.

 

D.             Buyer

and Seller have contemporaneously entered into the License Agreement, which is complementary to this Agreement, under which Seller

has granted Buyer the License to certain Licensed Patents and Licensed Know-How of Seller related to the manufacturing of the

Licensed Products.

 

E.             Seller

desires to sell the Licensed Products to Buyer on an exclusive basis, and Buyer wishes to purchase or manufacture the Licensed

Products on an exclusive basis, as set forth in this Agreement.

 

AGREEMENT

 

NOW,

THEREFORE, in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable

consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

1.             Definitions.

Capitalized terms used herein and not herein defined shall have the meanings set forth or referred to on Exhibit A hereto

or in the License Agreement.

 

2.             Purchase

and Sale of Licensed Products; Exclusive Rights of Buyer.

 

2.1           Purchase

and Sale. Subject to the terms and conditions of this Agreement, during the Term, Buyer Purchasing Parties shall purchase

the Licensed Products within the Field exclusively from Seller, and Seller shall exclusively sell the Licensed Products within

the Field to Buyer Purchasing Parties, at the Prices and in the quantities determined in accordance with this Agreement. The Parties

shall, from time to time, amend Schedule 1 to reflect any agreed revisions to any new Licensed Products; provided, that,

no such revisions will modify this Agreement or be binding on the Parties unless such revisions have been fully approved in a

signed writing by authorized Representatives of both Parties. The Licensed Products may also be combined with other ingredients

mutually agreed upon between the Parties, for commercialization (including, without limitation, developing, researching

and marketing) within the Field, including, without limitation, by Buyer or Seller for the purpose of creating Combination Products,

in compliance with this Agreement, the License Agreement and applicable Law.

 

     

     

    

 

2.2           Terms

of Agreement and Buyer’s Purchase Order Prevail; Order of Precedence. The Parties intend for the express terms and conditions

contained in this Agreement (including any Schedules and Exhibits hereto) and in any Purchase Order that are consistent with the

terms and conditions of this Agreement to exclusively govern and control each of the Parties’ respective rights and obligations

regarding the purchase and sale of the Licensed Products, and the Parties’ agreement is expressly limited to such terms

and conditions. Notwithstanding the foregoing, if any terms and conditions contained in a Purchase Order supplement or conflict

with any terms and conditions contained in this Agreement, the applicable term or condition of this Agreement will prevail and

such additional, contrary or different terms will have no force or effect. Except for such additional and contrary terms, the

terms and conditions of all Purchase Orders are incorporated by reference into this Agreement for all applicable purposes hereunder.

Without limitation of anything contained in this Section 2.2, any additional, contrary or different terms contained in any Purchase

Order, Confirmation or any of Seller’s invoices or other communications, and any other attempt to modify, supersede, supplement

or otherwise alter this Agreement, are deemed rejected by Buyer Purchasing Parties and Seller, as applicable, and will not modify

this Agreement or be binding on the Parties unless such terms have been fully approved in a signed writing by authorized Representatives

of both Parties in accordance with Section 15.9 below. In the event any terms or conditions of this Agreement conflict with the

License Agreement’s terms and conditions relating to the purchase and sale of the Licensed Products, the terms and conditions

of this Agreement shall control. In the event any terms or conditions of this Agreement conflict with the License Agreement’s

terms and conditions relating to the License or otherwise to the licensing or ownership of Intellectual Property Rights, the terms

and conditions of the License Agreement shall control.

 

2.3           Exclusivity

of Supply. Subject to Section 6.4, during the Term, Buyer (and Buyer Purchasing Parties, as directed by Buyer) shall have

the exclusive right to purchase the Licensed Products within the Field and Seller shall not sell the Licensed Products for use

within the Field to any Person other than Buyer (and Buyer Purchasing Parties, as directed by Buyer), or enter into any agreement

with any Person other than Buyer or Buyer Purchasing Parties (as directed by Buyer) for the sale of, the Licensed Products within

the Field.

 

2.4          

Exclusive Right to Manufacture Licensed Products.

 

(a)           Buyer

shall have the exclusive right to manufacture, in the Field, the Licensed Products and the Combination Products in accordance

with the License upon the occurrence any of the following events:

 

(i)           if

Buyer has achieved its Minimum Sales Commitment for at least two years as set forth in Section 5.5, and continues to do so;

 

(ii)          if

Seller experiences a Change in Control;

 

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(iii)         if

Buyer terminates this Agreement for cause as set forth in Section 6.3; or

 

(iv)

       upon mutual, written

agreement of the Parties.

 

This

Section 2.4(a) will survive the expiration or termination of this Agreement.

 

(b)           If

Buyer is entitled to exercise its exclusive right to manufacture the Licensed Products and the Combination Products in accordance

with the License, Seller covenants and agrees to use commercially reasonable efforts to transfer to Buyer the Licensed Know-How,

and, at Buyer’s expense, provide all other reasonable assistance within Seller’s ability that is necessary for Buyer

to manufacture the Licensed Products and the Combination Products in the Field in accordance with the License Agreement. Buyer

shall be responsible for all costs to support such manufacture of the Licensed Products and the Combination Products. This Section

2.4(b) will survive the expiration or termination of this Agreement for a commercially reasonable period of time to enable Buyer

to commence its own manufacture and supply of the Licensed Products and Combination Products in accordance with the License.

 

3.             Ordering

Procedure.

 

3.1           Purchase

Orders; Forecasts. Buyer Purchasing Parties shall issue Purchase Orders to Seller in written or electronic form via e-mail

or US mail. From time-to-time, Buyer Purchasing Parties may also issue Releases to Seller. For the avoidance of doubt, Buyer Purchasing

Parties shall only be obligated to purchase from Seller, and Seller shall be obligated to sell to Buyer Purchasing Parties, the

quantities of Licensed Products in a Purchase Order (including any related Release). Buyer Purchasing Parties will confer with

Seller on forecasts and projections of its planned purchases of Licensed Products at least six (6) months in advance and will

provide Purchase Orders for the Licensed Products at least 120 days in advance of Buyer Purchasing Parties’ required Delivery

Date. Any such forecasts shall be within Seller’s then-current manufacturing capabilities, projections of which shall be

provided to Buyer on a periodic basis throughout the Term as such capabilities change. In the event that forecasted Buyer Purchasing

Party requirements exceed Seller’s then-current manufacturing capabilities, the Parties agree to discuss in good faith either

(a) funding the acquisition and fabrication of additional manufacturing equipment, (b) Buyer manufacturing the Licensed Products

in accordance with Section 2.4(a)(iv), or (c) a combination of (a) and (b).

 

3.2           Acceptance,

Rejection, and Cancellation of Purchase Orders. Seller shall confirm to the respective Buyer Purchasing Party the receipt

of each Purchase Order issued hereunder (each, a “Confirmation”) within five (5) business days following

Seller’s receipt thereof in written form via e-mail. Each Confirmation must reference the Purchase Order number, confirm

acceptance of the Purchase Order or, solely if permitted under this Section 3.2, advise the Buyer Purchasing Party of Seller’s

rejection of such Purchase Order, the date of acceptance or rejection and the basis for rejection, if applicable. Buyer Purchasing

Parties may withdraw any Purchase Order prior to Seller’s acceptance thereof. Seller may only reject a Purchase Order if:

(a) Seller has sent Buyer a Notice of termination under Section 6.4; (b) the applicable Purchase Order includes terms and conditions

that supplement those contained

in this Agreement, which Seller is unwilling to accept; (c) the applicable Purchase Order fails to conform with the terms and

conditions of this Agreement; (d) the applicable Purchase Order (together with any other applicable Purchase Order) exceed the

forecasts provided in accordance with Section 3.1; (e) the Purchase Order exceeds Seller’s then-current manufacturing capabilities;

or (f) the requested Delivery Date is not within the lead times specified herein. Neither Party may cancel any previously accepted

Purchase Order hereunder without the prior written consent of the other Party.

 

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4.             Shipment,

Delivery, Acceptance, Inspection; Quality Controls; and Return.

 

4.1           Shipment

and Delivery Requirements. Seller shall use commercially reasonable efforts to assemble, pack, mark and ship Licensed Products

in the quantities, by the methods, to the Delivery Locations and by the Delivery Dates, specified in this Agreement or in an applicable

Purchase Order or Release. Delivery times will be measured to the time that Licensed Products are actually received at the Delivery

Location. If Seller does not comply with any of its delivery obligations under this Section 4, Buyer may, in Buyer’s sole

discretion and at Seller’s sole cost and expense: (a) approve a revised Delivery Date; (b) require expedited or premium

shipment; or (c) cancel the applicable Purchase Order. Unless otherwise expressly agreed to by the Parties in writing, Seller

may not make partial shipments of Licensed Products to Buyer Purchasing Parties.

 

4.2           Transfer

of Title and Risk of Loss.

 

(a)           Title

to Licensed Products shipped under any Purchase Order passes to Buyer upon the earliest to occur of (i) delivery of the Licensed

Products to the Buyer Purchasing Party; (ii) the Buyer Purchasing Party’s acceptance of the Licensed Products; and (iii)

delivery of the Licensed Products to the Delivery Location. Title will transfer to Buyer even if Seller has not been paid for

such Licensed Products, provided that the Buyer Purchasing Party will not be relieved of its obligation to pay for Licensed Products

in accordance with the terms hereof.

 

(b)           Notwithstanding

any Purchase Order or Confirmation, risk of loss or damage to Licensed Products shipped under any Purchase Order passes to Buyer

upon receipt by the Buyer Purchasing Party at the Delivery Location.

 

4.3           Packaging

and Labeling. Seller shall use commercially reasonable efforts to pack, mark and ship Licensed Products as instructed by Buyer

in writing and otherwise in accordance with applicable Law and industry standards, and shall provide the Buyer Purchasing Party

with shipment documentation showing the Purchase Order number, Seller’s identification number for the subject Licensed Products,

the quantities included in shipment, the number of cartons or containers in shipment, Seller’s name, the bill of lading

number, and the country of origin.

 

4.4           Inspection;

Rejected Licensed Products.

 

(a)           Prior

to the first shipment of Licensed Products hereunder and as reasonably required throughout the Term, Seller shall provide Buyer

(or other Buyer Purchasing Parties or third party laboratories, if directed by Buyer) with reasonable training concerning the

testing, analysis, evaluation and inspection procedures of Licensed Products to ensure that the Licensed Products conform, in

all material respects,

to the specifications, standards, samples, descriptions, quality requirements, performance requirements, statements of work, and

fit, form and function requirements mutually agreed upon between the Parties (as set forth in the Product Warranty). Buyer shall

be solely responsible for (i) the cost of any required testing and evaluation equipment and (ii) the training of any applicable

Buyer Purchasing Parties or third party laboratories.

 

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(b)           Licensed

Products are subject to Buyer Purchasing Party’s inspection and approval or rejection notwithstanding the Buyer Purchasing

Party’s prior receipt of or payment for the Licensed Products. The Buyer Purchasing Party shall have a reasonable period

of time, not to exceed ten (10) business days, following delivery of the Licensed Products to the Delivery Location (“Inspection

Period”), to inspect all Licensed Products received under this Agreement and to inform Seller, in writing, of the

Buyer Purchasing Party’s rejection of any Licensed Products and the reason for such rejection, including, without limitation,

any results of testing or analysis of the Licensed Products, and shall describe such rejected Licensed Products therein (such

writing a “Rejection Notice”). Following the receipt of a Rejection Notice, Seller may issue to the

Buyer Purchasing Party a RA pursuant to Section 4.6 below.

 

(c)           Following

its receipt of a Rejection Notice from Buyer Purchasing Party in accordance with Section 4.4(b), Seller shall: (i) within five

(5) business days, inform Buyer in writing of the Seller’s dispute of such rejection; and (ii) at its own expense, and in

consultation with Buyer, conduct good-faith testing and analyses on such Licensed Products to determine whether or not they are

Nonconforming Licensed Products. If Seller’s testing and analysis finds that the Licensed Products are Nonconforming Licensed

Products, Buyer shall be entitled to the remedies as outlined in Section 4.4(e) below in addition to reimbursement of any shipping

and transportation costs.

 

(d)           If

Seller determines that the Licensed Products are not Nonconforming Licensed Products, Seller shall subsequently provide to the

Buyer Purchasing Party additional information and documentation regarding such testing and analyses within a reasonable period

of time following such request, not to exceed fifteen (15) days. If the Parties mutually agree that the Licensed Products are

not Nonconforming Licensed Products, then Buyer Purchasing Party will reimburse Seller for Seller’s reasonable costs incurred

in connection with the testing and analysis. If the Parties cannot agree whether or not the Licensed Products are Noncomforming

Licensed Products after working together in good faith pursuant to this Section 4.4(d), they shall resolve the dispute in accordance

with Section 14. If the Parties are unable to resolve the dispute as set forth in Section 14, then Buyer may obtain an independent

analysis from a third party laboratory trained to test the Licensed Products as described in Section 4.4(a) above. If such third

party analysis determines that the Licensed Products are Nonconforming Products, then Seller shall reimburse Buyer for Buyer’s

reasonable costs incurred in connection with the third party testing and analysis, and Buyer shall be entitled to the remedies

as outlined in Section 4.4(e). If such third party analysis determines that the Licensed Products are not Nonconforming Products,

then Buyer Purchasing Party will (i) reimburse Seller for Seller’s reasonable costs incurred in connection with Seller’s

testing and analysis described in Section 4.4(c) and (ii) be solely

responsible for the costs incurred in connection with the third party testing and analysis described in this Section 4.4(d).

 

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(e)           If

it is determined that that rejected Licensed Products constitute Nonconforming Licensed Products, Buyer may elect to: (a) require

Seller, at Seller’s sole cost, to replace the rejected Nonconforming Licensed Products at the location specified by Buyer

(which may include Seller’s location, Buyer’s location or the location of a third party); or (b) retain the rejected

Licensed Products; in each case without limiting the exercise by Buyer of any other rights available to Buyer under this Agreement

or pursuant to applicable Law.

 

(f)           Licensed

Products that are not rejected within the Inspection Period will be deemed to have been accepted by the applicable Buyer Purchasing

Party; provided, however, that the Buyer Purchasing Party’s acceptance of any Licensed Products will not be deemed to be

a waiver or limitation of Seller’s obligations pursuant to this Agreement (or any breach thereof), including those obligations

with respect to Seller’s Product Warranty and Seller’s duty to indemnify Buyer.

 

4.5           Quality

Control Measures. Buyer Purchasing Parties shall institute and undertake quality control measures with respect to their storage,

shipment, handling and distribution of Licensed Products and Combination Products that comply with applicable Seller instructions,

Law, and generally accepted industry standards. Seller shall have the right to audit all facilities used by Buyer Purchasing Parties

to fulfill their obligations under this Section 4.5.

 

4.6           Return

Requirements. If a Buyer Purchasing Party wishes to return Licensed Products to Seller, whether as a result of rejection pursuant

to Section 4.4, withdrawal or recall pursuant to Section 9.5, or failure of Licensed Products to conform to the Product Warranty

in Section 9.3, it shall request a Return Authorization (“RA”) number from Seller. Within ten (10) business

days of receiving an RA number, Buyer Purchasing Party shall return the applicable Licensed Products to Seller accompanied by

such RA number. Any Licensed Products returned to Seller by a Buyer Purchasing Party as authorized under this Agreement shall:

(a) be shipped, properly insured, freight prepaid, DDP (per Incoterms 2010) to Seller’s facility or such other location

as Seller may designate in writing, at the expense of the responsible Party pursuant to Section 4.4, 9.3, or 9.5, as applicable,

(b) packed in its original packing material or the equivalent with the RA number prominently displayed, and (c) include any reasonable

documentation or information requested by Seller. Seller may refuse to accept returns of any Licensed Products not packed and

shipped as provided in this Section 4.6.

 

5.             Price

and Payment; Minimum Sales Commitment.

 

5.1           Price.

Buyer Purchasing Parties shall purchase the Licensed Products from Seller at an amount equal to Seller’s “cost”

plus twenty percent (20%) (“Prices”). For purposes of calculating Prices, Seller’s “cost”

shall mean all costs directly related to the production and manufacturing of the Licensed Products and include the cost of raw

materials, manufacturing labor and allocation of capital equipment and overhead of the manufacturing activities, as well as costs

related to packing, crating, boxing, transporting, and loading and unloading. In addition to Prices, Buyer Purchasing Parties

shall also be responsible for paying any and all customs, Taxes, tariffs and duties, insurance and any other

similar financial contributions or obligations associated with their purchases of Licensed Products, excluding Taxes based solely

on Seller’s net income. All Prices include, and Seller is solely responsible for, all costs and expenses relating to production,

manufacturing, packing, crating, boxing, transporting, and loading and unloading the Licensed Products.

 

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5.2           Invoices.

Seller shall issue a monthly invoice to the Buyer Purchasing Parties for all Licensed Products ordered in the previous month.

Each invoice for Licensed Products must set forth in reasonable detail the amounts payable by the Buyer Purchasing Parties under

this Agreement and contain commercially reasonable detail for such monthly invoice, as applicable, which may include, Purchase

Order number, Seller’s name; carrier name; ship-to address; quantity of Licensed Products shipped; number of cartons or

containers in shipment; bill of lading number; country of origin; and any other information necessary for identification and control

of the Licensed Products. Buyer reserves the right to return and withhold payment due to any invoices or related documents that

are inaccurate or incorrectly submitted to Buyer Purchasing Parties. The Parties shall seek to resolve any invoice disputes expeditiously

and in good faith. Any payment by Buyer Purchasing Parties of an invoice is not an acceptance of any nonconforming element or

terms on such invoice or the related Licensed Products.

 

5.3           Payment.

Except for any amounts disputed by Buyer in good faith, Seller’s accurate and correctly submitted invoices will be payable

within thirty (30) days following the later of: (a) the Buyer Purchasing Party’s receipt of Seller’s invoice; or (b)

the Buyer Purchasing Party’s receipt of the applicable Licensed Products. Any payment by the Buyer Purchasing Party for

Licensed Products will not be deemed acceptance of the Licensed Products or waive the Buyer Purchasing Party’s right to

inspect. The Buyer Purchasing Parties shall make all payments in US dollars by check, wire transfer or automated clearing house

to the address or account designated by Seller.

 

5.4           No

Setoff; Contingent or Disputed Claims. All amounts are due from the Buyer Purchasing Parties to Seller without regard to any

indebtedness of Seller to Buyer or any right of set-off, deduction or recoupment provided or allowed by Law. Notwithstanding the

foregoing, Buyer may, upon prior written notice to Seller, set off against, and deduct and recoup from, any amounts due or to

become due from Buyer to Seller, any amounts due or to become due from Seller to Buyer hereunder that are not subject to a good

faith dispute. If an obligation of Seller is disputed in good faith, contingent or unliquidated, payment by the Buyer Purchasing

Parties of all or any portion of the amount due may be deferred until such dispute or contingency is resolved or the obligation

is liquidated. In the event of Seller’s bankruptcy, if all of the contracts (including this Agreement) between Buyer and

Seller have not been promptly assumed by Seller (under applicable Law), to the extent permitted by Law, Buyer may withhold payment

to Seller for Licensed Products previously delivered (via administrative hold or otherwise) until the risk of potential rejection

and other losses is eliminated.

 

 

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5.5           Minimum

Sales Commitment. During the Term, Buyer covenants and agrees to sell the following amounts of the Licensed Products or Combination

Products (the “Minimum Sales Commitment”) for the calendar years following the Minimum Sales Commencement

Date; however, the amounts set forth below for years 3, 4 and 5 shall be reduced by 25% for any year during which Buyer is unable

to sell the Licensed Products or Combination Products in at least half of its Major International Markets based on regulatory

issues that Buyer is unable to overcome through the exercise of commercially reasonable efforts:

 

(a)           Year

1 – $500,000 per month average for the number of months Licensed Products or Combination Products were available for

sale during the year of introduction.

 

(b)          Year

2 – $12 million

 

(c)

         Year

3 – $30 million

 

(d)

         Year

4 – $60 million

 

(e)

         Year

5 – $100 million

 

(f)           Minimum

Sales Commitments for subsequent years shall be negotiated between the Parties in good faith no later than six months prior to

the expiration of Year 5; if the Parties cannot agree after negotiating in good faith pursuant to this Section 5.5(f) and/or attempting

to resolve the dispute in accordance with Section 14, then the rights of exclusivity granted in this Agreement with respect to

the Licensed Products and Combination Products shall be converted to non-exclusive rights.

 

“Minimum

Sales Commencement Date” means the date that the Buyer commences selling dietary supplement (as that term is defined

in the Dietary Supplement Health and Education Act of 1994, as amended) Licensed Products or Combination Products, which Buyer

anticipates will be at Buyer’s first international convention after such dietary supplement Licensed Products or Combination

Products have obtained regulatory approval to be sold in the US, and which is anticipated to be at Buyer’s international

convention that will be held in Salt Lake City, Utah on or about April 2021, provided that if the actual Minimum Sales Commencement

Date does not occur earlier, Minimum Sales Commencement Date will be deemed to occur on January 1, 2023.

 

6.             Term;

Termination.

 

6.1           Initial

Term. The term of this Agreement commences on the Effective Date and shall continue for a period of five (5) years after the

Minimum Sales Commencement Date, unless it is earlier terminated pursuant to the terms of this Agreement (the “Initial

Term”).

 

6.2           Renewal

Term. Upon expiration of the Initial Term, the term of this Agreement may be renewed for additional five (5) year terms upon

mutual written agreement of the Parties prior to expiration of the Initial Term (each, a “Renewal Term”

and together with the Initial Term, the “Term”), unless any Renewal Term is earlier terminated pursuant

to the terms of this Agreement. If the Initial Term or any Renewal Term is renewed for any Renewal Term(s) pursuant to this Section

6.2, the terms and conditions of this Agreement during each such Renewal Term will be the same as the terms in effect immediately

prior to such renewal. In the event either Party provides timely Notice of its intent not to renew this Agreement, then, unless

earlier terminated in accordance with its terms,

this Agreement terminates on the expiration of the Initial Term or then-current Renewal Term, as applicable.

 

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6.3           Buyer’s

Right to Terminate for Cause. Buyer may terminate this Agreement, by providing written Notice to Seller:

 

(a)            if

Seller repudiates this Agreement and does not withdraw such repudiation within thirty (30) days following Seller’s receipt

of written Notice of such breach from Buyer;

 

(b)           except

as otherwise specifically provided under this Section 6.3, if Seller is in material breach of any material representation, warranty

or covenant of Seller under this Agreement and either the breach cannot be cured or, if the breach can be cured, it is not cured

by Seller within a commercially reasonable period of time under the circumstances, in no case exceeding thirty (30) days following

Seller’s receipt of written Notice of such breach from Buyer;

 

(c)           if

Seller: (i) becomes insolvent or is generally unable to pay, or fails to pay, its debts as they become due; (ii) files or has

filed against it, a petition for voluntary or involuntary bankruptcy or otherwise becomes subject, voluntarily or involuntarily,

to any proceeding under any domestic or foreign bankruptcy or insolvency Law, which is not dismissed within ninety (90) days;

(iii) makes or seeks to make a general assignment for the benefit of its creditors; or (iv) applies for or has appointed a receiver,

trustee, custodian or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell any material

portion of its property or business;

 

(d)           if

Seller fails to provide Buyer, within a commercially reasonable time after Buyer’s request (but in no case exceeding thirty

(30) days after such request) with reasonable assurance of Seller’s financial and operational capability to perform timely

any of Seller’s material obligations under this Agreement;

 

(e)           if

Seller experiences a Change in Control and does not: (i) provide prior written notice to Buyer or 120 days written notice to Buyer

under certain circumstances in Section 15.13 of this Agreement, or (ii) comply with its obligations under Section 2.4(b) of this

Agreement; or

 

(f)           upon

the occurrence of any other event constituting grounds for termination set forth in any other sections of this Agreement (including

Section 15.20).

 

Any

termination under this Section 6.3 will be effective on Seller’s receipt of Buyer’s written Notice of termination

or such later date (if any) set forth in such termination Notice. If Buyer does not terminate this Agreement upon the occurrence

of any of the events described under this Section 6.3, Buyer may, in addition to any of its other rights to suspend performance

under this Agreement or applicable Law:

 

(i)            immediately

suspend its performance under all or any part of this Agreement, without any liability of Buyer to Seller, and, at its election,

seek to recover any direct damages (including attorneys’ and other professional fees and costs), expenses

and losses incurred by Buyer as a result of any event described under this Section 6.3 at law in accordance with Sections 15.16

through 15.18 of this Agreement, notwithstanding any obligation to comply with Section 14 of this Agreement; and

 

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(ii)       exercise

Buyer’s right to manufacture the Licensed Products and Products as set forth in the License Agreement.

 

6.4

          Seller’s Rights.

 

(a)           If

either of the following events occur, Seller shall have the right to permanently convert Buyer’s exclusive rights to purchase

the Licensed Products in the Field to non-exclusive rights by providing thirty (30) days’ written notice of such change

to Buyer:

 

(i)           Buyer

fails to achieve its Minimum Sales Commitment for any two consecutive years following the Minimum Sales Commencement Date (excluding

the initial year);

 

(ii)          Buyer

fails to pay additional Royalties to maintain exclusivity, as further set forth in Section 2.4 of the License Agreement; or

 

(b)

          Seller may terminate

this Agreement, by providing written Notice to Buyer:

 

(i)           if

Buyer repudiates this Agreement and does not withdraw such repudiation within thirty (30) days following Buyer’s receipt

of written Notice of such breach from Seller;

 

(ii)          except

as otherwise specifically provided under this Section 6.4, if Buyer is in material breach of any material representation, warranty

or covenant of Buyer under this Agreement or the License Agreement (including Buyer’s payment obligations) and either the

breach cannot be cured or, if the breach can be cured, it is not cured by Buyer within a commercially reasonable period of time

under the circumstances, in no case exceeding thirty (30) days following Buyer’s receipt of written Notice of such breach

from Seller; or

 

(iii)         Buyer

(A) becomes insolvent or is generally unable to pay, or fails to pay, its debts as they become due, (B) files or has filed against

it, a petition for voluntary or involuntary bankruptcy or otherwise becomes subject, voluntarily or involuntarily, to any proceeding

under any domestic or foreign bankruptcy or insolvency Law, which is not dismissed within ninety (90) days, (C) makes or seeks

to make a general assignment for the benefit of its creditors, or (D) applies for or has appointed a receiver, trustee, custodian

or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell any material portion of its

property or business.

 

For

the avoidance of doubt, if Seller exercises its right to convert Buyer’s exclusive rights to non-exclusive rights as set

forth in Section 6.4(a) above, Buyer shall retain its rights to purchase the Licensed Products at the Prices and, as set forth

in the License

Agreement, to manufacture the Licensed Products and Combination Products (if applicable) on a non-exclusive basis.

 

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6.5           Effect

of Expiration or Termination.

 

(a)           Immediately

upon the effectiveness of a Notice of termination delivered by Buyer to Seller hereunder (as stated in such Notice), Seller shall,

unless otherwise directed by Buyer based on Buyer’s rights to purchase and manufacture the Licensed Products under Sections

2.3 and 2.4, and subject to Seller’s obligation to provide resourcing cooperation under Section 6.6, promptly terminate

all performance under this Agreement and under any outstanding Purchase Orders.

 

(b)           Expiration

or termination of the Term will not affect any rights or obligations of the Parties that:

 

(i)           come

into effect upon or after termination or expiration of this Agreement; or

 

(ii)          otherwise

survive the expiration or earlier termination of this Agreement pursuant to Section 15.4 and were incurred by the Parties prior

to such expiration or earlier termination.

 

(c)           Subject

to Buyer’s rights under Sections 2.3 and 2.4, upon the expiration or earlier termination of this Agreement, each Party shall:

 

(i)           destroy

all documents and tangible materials (and any copies) containing, reflecting, incorporating or based on the other Party’s

Confidential Information;

 

(ii)          permanently

erase all of the other Party’s Confidential Information from its computer systems, except for copies that are maintained

as archive copies on its disaster recovery and/or information technology backup systems. Each Party shall destroy any such copies

upon the normal expiration of its backup files; and

 

(iii)         upon

the other Party’s written request, certify in writing to such other Party that it has complied with the requirements of

this Section 6.5(c).

 

6.6           Resourcing

Cooperation. Upon the expiration or earlier termination of this Agreement for any reason, to the extent requested by Buyer

in writing, Seller will use commercially reasonable efforts to take the following actions and such other actions as may be reasonably

required by Buyer to transition production of the Licensed Products from Seller to Buyer (if applicable) without production disruptions:

 

(a)           manufacture,

deliver and sell to Buyer an inventory bank of Licensed Products without interruption or delay to Buyer’s production of

Licensed Products and Combination Products, with pricing equivalent to the pricing in effect immediately before expiration or

termination;

 

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(b)           Promptly:

 

(i)           provide

to Buyer all information and documentation regarding and access to Seller’s Electrical Techniques, including bill-of-material

data, and process detail and samples of supplies and components; and

 

(ii)          allow

Buyer to access any or all supply contracts or orders for raw materials or components relating to this Agreement;

 

(c)           sell

to Buyer, at Seller’s actual cost, any or all work-in-process and any raw-materials inventory solely relating to this Agreement

and any outstanding Purchase Orders; and

 

(d)           sell

to Buyer any or all finished Licensed Products at the Prices.

 

7.             Certain

Obligations of Seller.

 

7.1           Quality.

 

(a)           Seller

shall meet or exceed quality standards for the Licensed Products mutually agreed upon by the Parties from time to time in writing.

At Buyer’s request, Seller shall furnish to Buyer test samples of Licensed Products as reasonably required by Buyer to determine

if their manufacture is in accordance with the applicable specifications and quality standards mutually agreed upon by the Parties.

 

(b)           (i)

Seller shall provide commercially reasonable support as requested by Buyer to address and correct quality concerns, and (ii) without

limiting its other rights and remedies set forth herein, Buyer may hold Seller responsible for costs associated with quality issue

investigation and containment to the extent attributable to a final determination that Licensed Products are Defective Licensed

Products or Nonconforming Licensed Products; provided in each case that Seller shall not be required to address and correct quality

concerns resulting from a Buyer Purchasing Party’s failure to undertake or exercise a quality control measure described

in Section 4.5 of this Agreement or for any issues arising from the exclusions from the Product Warranty described in Section

9.3(a)(i) below.

 

7.2           Protection

Against Supply Interruptions. Seller shall take commercially reasonable steps to manufacture, deliver and sell to Buyer an

inventory bank of Licensed Products, with pricing equivalent to the pricing in effect immediately upon Seller’s becoming

aware of any reasonably foreseeable or anticipated event or circumstance that could interrupt or delay Seller’s performance

under this Agreement, including any labor disruption, whether or not resulting from the expiration of Seller’s labor contracts

(and whether or not such occurrence constitutes a Force Majeure Event hereunder).

 

7.3           Duty

to Advise. Seller shall promptly provide written Notice to Buyer upon becoming aware of any of the following events or occurrences,

or any facts or circumstances reasonably likely to give rise to any of the following events or occurrences: (a) any failure or

delay in delivery of Licensed Products; (b) any material defects or quality problems relating to Licensed Products; (c) any Seller

Change in Control; (d) any deficiency in Buyer specifications, samples, prototypes or test results relating to this Agreement;

or (e) any failure

by Seller, or its subcontractors or common carriers, to comply with Law applicable to its manufacture and sale of Licensed Products

within the Field pursuant to this Agreement. In addition, Seller shall promptly notify Buyer in writing of any change in Seller’s

authorized Representatives, insurance coverage or professional certifications.

 

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7.4           Seller’s

Financial Condition. Seller shall promptly notify Buyer, in writing, of any and all events that have had or may have a material

adverse effect (in Seller’s sole reasonable discretion) on Seller’s business or financial condition.

 

8.             Compliance

with Laws.

 

8.1           Compliance.

Seller shall at all times comply with all Laws applicable to its manufacture and sale of Licensed Products within the Field pursuant

to this Agreement. Buyer shall at all times comply with all Laws applicable to its manufacture, marketing, labeling and sale of

Licensed Products or Combination Products within the Field. Without limitation of the foregoing, Seller shall use commercially

reasonable efforts to ensure that the Licensed Products and any related packaging, upon delivery by Seller to Buyer or a Buyer

Purchasing Party, conform fully to any Law applicable to the Licensed Products in the Field. Upon Buyer’s reasonable request,

Seller shall provide Buyer with (a) written certification of Seller’s compliance with Laws applicable to its manufacture

and sale of Licensed Products within the Field; (b) written certification of the origin of any ingredients or materials in the

Licensed Products; and (c) any additional information in its possession, custody or control regarding the Licensed Products that

Buyer reasonably requires in order to comply with its obligations under applicable Law such that Buyer may comply in a timely

manner with such obligations.

 

8.2           Permits,

Licenses, and Authorizations. Seller shall obtain and maintain all Permits necessary for the exercise of its rights and performance

of Seller’s obligations under this Agreement, including any Permits required for production and manufacture of the Licensed

Products in the Field, and the shipment of hazardous materials, as applicable. Additionally, Seller shall reasonably assist Buyer

with respect to Buyer’s obtaining and maintenance of any Permits required for the import of Licensed Products or any raw

materials and other items used in the production and manufacture of the Licensed Products in the Field, and the shipment of hazardous

materials, as applicable.

 

9.

            Representations

and Warranties; Product Warranty.

 

9.1           Seller’s

Representations and Warranties. Seller represents and warrants to Buyer that:

 

(a)           it

is a corporation, duly organized, validly existing and in good standing under the laws of the state of Delaware;

 

(b)           it

is duly qualified to do business and is in good standing in every jurisdiction in which such qualification is required for purposes

of this Agreement;

 

(c)           it

has the full right, corporate power and authority to enter into this Agreement and to perform its obligations hereunder;

 

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(d)           the

execution of this Agreement by its Representative whose signature is set forth at the end of this Agreement, and the delivery

of this Agreement by Seller, have been duly authorized by all necessary corporate action on the part of Seller;

 

(e)           the

execution, delivery, and performance of this Agreement by Seller will not violate, conflict with, require consent under or result

in any breach or default under (i) any of Seller’s organizational documents (including, without limitation, its Certificate

of Incorporation, Bylaws, Voting Agreement or Investors’ Rights Agreement, as such may be amended from time to time), (ii)

any material Law; or (iii) with or without notice or lapse of time or both, the provisions of any Seller Contract;

 

(f)           this

Agreement has been executed and delivered by Seller and (assuming due authorization, execution and delivery by Buyer) constitutes

the legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, except as may be limited

by any applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws and equitable principles related to or affecting

creditors’ rights generally or the effect of general principles of equity;

 

(g)           it

is in material compliance with all Laws applicable to the manufacture or sale of the Licensed Products within the Field, and has

obtained all Permits that Seller is required to obtain pursuant to this Agreement for the exercise of its rights and performance

of its obligations under this Agreement;

 

(h)           it

is not insolvent; and

 

(i)            all

financial information that it has provided to Buyer is true and accurate and fairly represents Seller’s financial condition

in all material respects.

 

9.2           Buyer’s

Representations and Warranties. Buyer represents and warrants to Seller that:

 

(a)           it

is a limited liability company, duly organized, validly existing and in good standing under the laws of the state of Utah;

 

(b)           it

is duly qualified to do business and is in good standing in every jurisdiction in which such qualification is required for purposes

of this Agreement;

 

(c)           it

has the full right, company power and authority to enter into this Agreement and to perform its obligations hereunder;

 

(d)           the

execution of this Agreement by its Representative whose signature is set forth at the end of this Agreement, and the delivery

of this Agreement by Buyer, have been duly authorized by all necessary company action on the part of Buyer;

 

(e)           the

execution, delivery, and performance of this Agreement by Buyer will not violate, conflict with, require consent under or result

in any breach or default under (i) any of Buyer’s organizational documents (including its Certificate of Organization and

Operating Agreement, as amended from time to time), (ii) any material Law, or (iii) with or without notice or lapse of time or

both, the provisions of any material Buyer Contract; and

 

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(f)            this

Agreement has been executed and delivered by Buyer and (assuming due authorization, execution, and delivery by Seller) constitutes

the legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, except as may be limited

by any applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws and equitable principles related to or affecting

creditors’ rights generally or the effect of general principles of equity.

 

9.3           Product

Warranty. Seller warrants to the Buyer Purchasing Parties that (the “Product Warranty”):

 

(a)           for

the period provided by applicable Law, or for such longer period as may be mutually agreed by the Parties, the Licensed Products

manufactured by Seller will:

 

(i)           conform,

in all material respects, to the specifications, standards, samples, descriptions, quality requirements, performance requirements,

statements of work, and fit, form and function requirements mutually agreed upon by the Parties for the Licensed Products, provided

that the foregoing warranty does not apply to any non-conformity of Licensed Products resulting (A) from accident, negligence

or misuse on the part of anyone other than Seller; (B) from a Buyer Purchasing Party’s failure to undertake or exercise

a quality control measure described in Section 4.5, or from any other handling or usage of the Licensed Products that is inconsistent

with the manner agreed upon by the Parties; or (C) by alteration by any party other than the Seller. Seller’s obligations

with respect to Licensed Products that do not meet the warranty contained herein is limited to those set forth in Section 4.4,

provided that such Licensed Products are returned to Seller in accordance with Section 4.6 and only if Seller has made a determination

(or the Parties have mutually agreed) that such Licensed Products are Nonconforming Licensed Products; or

 

(ii)          not

infringe upon, violate or misappropriate the Intellectual Property Rights of any Person, provided that the foregoing warranty

shall not apply with respect to any Licensed Products or portions or components thereof to the extent (a) not created or provided

by Seller, (b) modified or adulterated after delivery by Seller, (c) stored in accordance with Seller’s instructions; (d)

combined by Seller without Seller’s approval with third-party products or materials, or (e) where used in violation of this

Agreement.

 

(b)           each

of the Licensed Products will be conveyed by Seller to Buyer with good title, free and clear of all Encumbrances.

 

9.4           Disclaimer.

EXCEPT AS EXPRESSLY SET FORTH IN SECTION 9.3, THE LICENSED PRODUCTS ARE PROVIDED “AS-IS” WITHOUT ANY OTHER WARRANTIES

OF ANY KIND AND SELLER AND ITS SUPPLIERS AND SERVICE PROVIDERS HEREBY DISCLAIM ALL WARRANTIES OF ANY KIND, WHETHER EXPRESS OR

IMPLIED, ORAL OR WRITTEN, RELATING TO THE PRODUCTS AND ANY SERVICES PROVIDED HEREUNDER OR SUBJECT MATTER OF THIS AGREEMENT OR

OTHERWISE, INCLUDING BUT NOT LIMITED TO ANY WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY, TITLE OR FITNESS FOR A PARTICULAR

PURPOSE. WITHOUT LIMITING THE FOREGOING LIMITATION, SELLER DOES NOT WARRANT THAT THE LICENSED PRODUCTS WILL MEET THE REQUIREMENTS

OF BUYER, BUYER PARTIES, OR ANY END-USERS OF THE LICENSED PRODUCTS, OR GUARANTEE ANY RESULTS OR OUTCOMES WITH RESPECT TO THE LICENSED

PRODUCTS.

 

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9.5           Withdrawal

or Recall of Licensed Products. If any Governmental Authority determines that any Licensed Products as delivered to Buyer

by Seller hereunder are Defective and a recall campaign is necessary, Buyer and Seller will consult on a response in good faith,

provided that Buyer will have the right to implement such recall campaign and return Defective Licensed Products to Seller or

destroy such Licensed Products, as determined by Buyer in its reasonable discretion, at Seller’s sole cost and risk. If

a recall campaign is implemented in accordance with this Section 9.5, at Seller’s sole cost, Seller shall promptly replace

any Defective Licensed Products and provide such replacement Licensed Products to Buyer or Buyer’s designee or, if such

replacement is beyond Seller’s then-current manufacturing capabilities, refund to Buyer the payment attributable to such

Defective Licensed Products. Seller will be liable for all of Buyer’s costs associated with any recall campaign if such

recall campaign is based upon a reasonable determination that the Licensed Products are Defective. Where a recall campaign is

implemented in accordance with this Section 9.5, Seller shall pay all reasonable expenses associated with determining whether

a recall campaign is necessary. For clarity, in the event that any recall is as a result of (a) the Combination Product and not

attributable to the Licensed Product as delivered to Buyer hereunder or (b) the result of a Buyer Purchasing Party’s failure

to undertake or exercise a quality control measure described in Section 4.5, Buyer will be liable for all of Buyer’s costs

associated with any recall campaign, including all reasonable expenses associated with determining whether a recall campaign is

necessary.

 

10.

          Indemnification.

 

10.1         Indemnification.

Subject to the terms and conditions of this Agreement, each Party (as an “Indemnifying Party”) shall

indemnify, defend and hold harmless the other Party and their Representatives, officers, directors, members, managers employees,

agents, affiliates, successors and permitted assigns (collectively, “Indemnified Parties”) against any

and all Losses relating to any third-party Claim or any direct Claim against Indemnifying Party arising out of or resulting from:

 

(a)           a

material breach of any of Indemnifying Party’s representations or warranties set forth in Sections 9.1 or 9.2 (as applicable)

of this Agreement.

 

(b)           any

grossly negligent or more culpable act or omission of Indemnifying Party or any of its Representatives (including any recklessness

or willful misconduct) in connection with Indemnifying Party’s performance under this Agreement;

 

(c)           any

bodily injury, death of any Person or damage to real or tangible personal property caused by the willful or grossly negligent

acts or omissions of Indemnifying Party or any of its Representatives;

 

(d)           any

failure by Indemnifying Party or its Personnel to materially comply with any applicable Laws;

 

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(e)           an

allegation that any of Indemnifying Party’s Intellectual Property used in the design or production of the Licensed Products

or Combination Products, or that is embodied in the Licensed Products or Combination Products, infringes any Intellectual Property

Right of a third party; or

 

(f)           any

failure by Indemnifying Party or its Personnel to comply with Seller instructions, Law, or generally accepted industry standards

applicable to the use, labeling, storage, handling, marketing, promotion, import, export, sale or distribution of Licensed Products

or Combination Products.

 

10.2         Exceptions

and Limitations on Indemnification. Notwithstanding anything to the contrary in this Agreement, Indemnifying Party is not

obligated to indemnify or defend any Indemnified Party against any Claim or corresponding Losses (a) unless the Indemnifying Party

is given prompt notice, full cooperation and control of defense and settlement or (b) resulting directly from, in whole or in

part, Indemnified Party’s or its Affiliates or Representatives or their Personnel’s:

 

(a)           negligence

or more culpable act or omission (including recklessness or willful misconduct); or

 

(b)           failure

to materially comply with any of its obligations set forth in this Agreement or applicable Law.

 

11.           NO

LIABILITY FOR CONSEQUENTIAL OR INDIRECT DAMAGES. EXCEPT FOR LIABILITY FOR INDEMNIFICATION, LIABILITY FOR BREACH OF CONFIDENTIALITY,

OR LIABILITY FOR INFRINGEMENT OR MISAPPROPRIATION OF INTELLECTUAL PROPERTY RIGHTS, IN NO EVENT SHALL EITHER PARTY OR THEIR REPRESENTATIVES

BE LIABLE FOR CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR ENHANCED DAMAGES, LOST PROFITS OR REVENUES

OR DIMINUTION IN VALUE, ARISING OUT OF OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF (A) WHETHER SUCH DAMAGES WERE

FORESEEABLE, (B) WHETHER OR NOT IT WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND (C) THE LEGAL OR EQUITABLE THEORY (CONTRACT,

TORT OR OTHERWISE) UPON WHICH THE CLAIM IS BASED, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL

PURPOSE.

 

12.           Intellectual

Property.

 

12.1         Ownership.

Except as otherwise set forth in the Licensing Agreement, each of the Parties acknowledges and agrees that:

 

(a)           each

Party retains exclusive ownership of its Background Intellectual Property Rights;

 

(b)           Buyer

does not transfer to Seller any of Buyer’s Background Intellectual Property Rights;

 

(c)           Seller

does not transfer to Buyer any of Seller’s Background Intellectual Property Rights; and

 

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(d)           all

New Intellectual Property will be owned by Buyer, as set forth in the License Agreement.

 

12.2         Prohibited

Acts. Each of the Parties shall not:

 

(a)           take

any action that may interfere with the other Party’s Intellectual Property Rights, including such other Party’s ownership

or exercise thereof;

 

(b)           challenge

any right, title or interest of the other Party in such other Party’s Intellectual Property Rights without cause;

 

(c)           make

any claim or take any action adverse to such other Party’s ownership of its Intellectual Property Rights without cause;

 

(d)           register

or apply for registrations, anywhere in the world, the other Party’s Trademarks or any other Trademark that is confusingly

similar to such other Party’s Trademarks or that incorporates such Trademarks in whole or in confusingly similar part;

 

(e)           use

any mark, anywhere, that is confusingly similar to the other Party’s Trademarks; or

 

(f)           misappropriate

any of the other Party’s Trademarks for use as a domain name without such other Party’s prior written consent.

 

13.          Confidentiality.

 

13.1         Scope

of Confidential Information. From time to time during the Term, either Party (as the “Disclosing Party”)

may disclose or make available to the other Party (as the “Receiving Party”) information about its business,

technical, financial or legal affairs, goods and services (including any forecasts), confidential information and materials comprising

or relating to Intellectual Property Rights, trade secrets, third-party confidential information and other sensitive or proprietary

information. Such information, as well as the terms of this Agreement, whether orally or in written, electronic or other form

or media, and whether or not marked, designated or otherwise identified as “confidential” collectively constitutes

“Confidential Information” hereunder. Confidential Information does not include information that at

the time of disclosure and as established by documentary evidence:

 

(a)           is

or becomes generally available to and known by the public other than as a result of, directly or indirectly, any breach of this

Section 13 by the Receiving Party or any of its Representatives;

 

(b)           is

or becomes available to the Receiving Party on a non-confidential basis from a third-party source, provided that such third party

is not and was not prohibited from disclosing such Confidential Information;

 

(c)           was

rightfully known by or in the possession of the Receiving Party or its Representatives without restriction prior to being disclosed

by or on behalf of the Disclosing Party; or

 

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(d)           was

or is independently developed by the Receiving Party without reference to or use of, in whole or in part, any of the Disclosing

Party’s Confidential Information.

 

13.2         Protection

of Confidential Information. The Receiving Party shall, during the Term of this Agreement and continuing until such Confidential

Information falls into one of the exceptions set forth in Section 13.1(a) – (d) above:

 

(a)           protect

and safeguard the confidentiality of the Disclosing Party’s Confidential Information with at least the same degree of care

as the Receiving Party would protect its own Confidential Information, but in no event with less than a commercially reasonable

degree of care;

 

(b)           not

use the Disclosing Party’s Confidential Information, or permit it to be accessed or used, for any purpose other than to

exercise its rights or perform its obligations under this Agreement; and

 

(c)           not

disclose any such Confidential Information to any Person, except to the Receiving Party’s Representatives who need to know

the Confidential Information to assist the Receiving Party, or act on its behalf, to exercise its rights or perform its obligations

under this Agreement.

 

The

Receiving Party shall be responsible for any breach of this Section 13 caused by any of its Representatives. If required by Law,

the Receiving Party may disclose Confidential Information of the Disclosing Party, but will give adequate prior notice of such

disclosure to the Disclosing Party to permit the Disclosing Party to intervene and to request protective orders or other confidential

treatment therefor. On the expiration or earlier termination of this Agreement, at the Disclosing Party’s written request,

the Receiving Party and its Representatives shall, pursuant to Section 6.5(c), promptly destroy all Confidential Information and

copies thereof that it has received under this Agreement.

 

14.           Dispute

Resolution. Within thirty (30) days after the Effective Date, Buyer and Seller shall each name two (2) individuals to

act as their respective representatives for the purpose of settling of issues, disputes or disagreements between the Parties,

which representatives shall have authority to negotiate and settle any such issues, disputes or disagreements (“Dispute

Resolution Representatives”). Each Party may substitute one or more of its representatives, from time to time in

its sole discretion, effective upon Notice to the other Party of such change. Through their respective Dispute Resolution Representatives,

the Parties shall use their good faith efforts to resolve such issues, disputes and disagreements to the mutual agreement of the

Parties. If the Dispute Resolution Representatives are deadlocked on any approval, decision, dispute or other action, the deadlocked

matter will be referred for resolution to an officer of Seller and an officer of Buyer with the corporate authority to resolve

the dispute. If the officers do not resolve the matter within thirty (30) days, each Party may, subject to the terms of this Agreement,

seek all other remedies available to it.

 

15.           Miscellaneous.

 

15.1         Further

Assurances. Upon a Party’s reasonable request, the other Party shall, at its sole cost and expense, execute and deliver

all such further documents and instruments, and take all such further acts, necessary to give full effect to this Agreement.

 

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15.2         Relationship

of the Parties. The relationship between Seller and Buyer is solely that of vendor and vendee and they are independent contracting

parties. Nothing in this Agreement creates any agency, joint venture, partnership or other form of joint enterprise, employment

or fiduciary relationship between the Parties. Neither Party has any express or implied right or authority to assume or create

any obligations on behalf of or in the name of the other Party or to bind the other Party to any contract, agreement or undertaking

with any third party.

 

15.3         Entire

Agreement. This Agreement and the License Agreement, including and together with any related exhibits, schedules and the applicable

terms of any Purchase Orders, constitutes the sole and entire agreement of the Parties with respect to the subject matter contained

herein and therein, and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both

written and oral, with respect to such subject matter.

 

15.4         Survival.

Subject to the limitations and other provisions of this Agreement: (a) the representations and warranties of the Parties contained

herein will survive the expiration or earlier termination of this Agreement; and (b) Sections 10, 11, 12 and 13 of this Agreement,

as well as any other provision that, in order to give proper effect to its intent, should survive such expiration or termination,

will survive the expiration or earlier termination of this Agreement.

 

15.5         Notices.

All notices, requests, consents, claims, demands, waivers and other communications under this Agreement (each, a “Notice”)

must be in writing and addressed to the other Party at its address set forth below (or to such other address that the receiving

Party may designate from time to time in accordance with this section). All Notices must be delivered by personal delivery, nationally

recognized overnight courier or certified or registered mail (in each case, return receipt requested, postage prepaid). Except

as otherwise provided in this Agreement, a Notice is effective only (a) on receipt by the receiving Party, and (b) if the Party

giving the Notice has complied with the requirements of this Section.

 

 

	 	Notice

    to Seller:	3615

    Millrock Dr.,
	 	 	Salt

    Lake City, Utah 84121
	 	 	Facsimile:

    615-676-9696
	 	 	Email:

    rob@clene.com
	 	 	Attention:

    Rob Etherington, CEO
	 	 	 
	 	With

    a Copy To:	GUNDERSON

    DETTMER STOUGH VILLENEUVE
	 	 	FRANKLIN

    & HACHIGIAN
	 	 	220

    West 42nd Street
	 	 	New

    York, NY 10036
	 	 	Facsimile:

    646-797-5459
	 	 	Email:

    dsharrow@gunder.com
	 	 	Attention:

    David P. Sharrow

 

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	 	Notice

    to Buyer:	9850

    S. 300 W.,
	 	 	Sandy,

    UT 84070
	 	 	Facsimile:

    801-562-3611
	 	 	Email:

    Danny@4life.com
	 	 	Attention:

    Danny Lee, CEO
	 	 	 
	 	With

    a Copy To:	JONES

    WALDO HOLBROOK & MCDONOUGH
	 	 	170

    S. Main, Suite 1500
	 	 	Salt

    Lake City, UT 84101
	 	 	Facsimile:

    801-328-0537
	 	 	Email:

    ddaines@joneswaldo.com
	 	 	Attention:

    Daniel Daines

  

15.6         Interpretation.

For purposes of this Agreement: (a) the words “include,” “includes” and “including” is deemed

to be followed by the words “without limitation”; (b) the word “or” is not exclusive; (c) the words “herein,”

“hereof,” “hereby,” “hereto” and “hereunder” refer to this Agreement as a whole;

(d) words denoting the singular have a comparable meaning when used in the plural, and vice-versa; and (e) words denoting any

gender include all genders. Unless the context otherwise requires, references in this Agreement: (x) to sections, exhibits, schedules,

attachments, and appendices mean the sections of, and exhibits, schedules, attachments and appendices attached to, this Agreement;

(y) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented

and modified from time to time to the extent permitted by the provisions thereof; and (z) to a statute means such statute as amended

from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. The Parties drafted

this Agreement without regard to any presumption or rule requiring construction or interpretation against the Party drafting an

instrument or causing any instrument to be drafted. The exhibits, schedules, attachments, and appendices referred to herein are

an integral part of this Agreement to the same extent as if they were set forth verbatim herein.

 

15.7        Headings.

The headings in this Agreement are for reference only and do not affect the interpretation of this Agreement.

 

15.8        Severability.

If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality

or unenforceability does not affect any other term or provision of this Agreement or invalidate or render unenforceable such term

or provision in any other jurisdiction.

 

15.9        Amendment

and Modification. No amendment to or rescission, termination or discharge of this Agreement is effective unless it is in writing,

identified as an amendment to or rescission, termination or discharge of this Agreement and signed by an authorized Representative

of each Party.

 

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15.10      

Waiver.

 

(a)           No

waiver under this Agreement is effective unless it is in writing, identified as a waiver to this Agreement and signed by an authorized

representative of the Party waiving its right.

 

(b)           Any

waiver authorized on one occasion is effective only in that instance and only for the purpose stated, and does not operate as

a waiver on any prior, concurrent or future occasion.

 

(c)           None

of the following constitutes a waiver or estoppel of any right, remedy, power, privilege or condition arising from this Agreement:

 

(i)           any

failure or delay in exercising any right, remedy, power or privilege or in enforcing any condition under this Agreement; or

 

(ii)

         any

act, omission or course of dealing between the Parties.

 

15.11       Cumulative

Remedies. All rights and remedies provided in this Agreement are cumulative and not exclusive, and the exercise by either

Party of any right or remedy does not preclude the exercise of any other rights or remedies that may now or subsequently be available

at law, in equity, by statute, in any other agreement between the Parties or otherwise.

 

15.12       Equitable

Remedies. Each Party acknowledges and agrees that (a) a breach or threatened breach by such Party of any of its obligations

under Sections 2.3, 2.4, 12 and 13 would give rise to irreparable harm to the other Party for which monetary damages would not

be an adequate remedy and (b) in the event of a breach or a threatened breach by such Party of any such obligations, the other

Party shall, in addition to any and all other rights and remedies that may be available to such Party at law, at equity or otherwise

in respect of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance

and any other relief that may be available from a court of competent jurisdiction, without any requirement to post a bond or other

security, and without any requirement to prove actual damages or that monetary damages will not afford an adequate remedy. Each

Party agrees that such Party will not oppose or otherwise challenge the appropriateness of equitable relief or the entry by a

court of competent jurisdiction of an order granting equitable relief, in either case, consistent with the terms of this Section

15.12.

 

15.13       Assignment.

Neither Party may assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent

of the other Party, except that a Seller Change in Control shall not constitute an assignment or delegation for purposes of this

Agreement and Seller may so assign and delegate to a successor in a Change in Control so long as Seller has provided prior written

notice to Buyer. Notwithstanding the preceding sentence, at any time that Buyer is no longer a shareholder of Seller with the

right to designate a member of Seller’s board of directors, Seller shall provide 120 days prior written notice to Buyer

in the event of a Change in Control. Any purported assignment or delegation in violation of this Section is null and void. No

assignment or delegation relieves the assigning or delegating Party of any of its obligations under this Agreement.

 

     22

     

    

 

15.14       Successors

and Assigns. This Agreement is binding on and inures to the benefit of the Parties and their respective permitted successors

and permitted assigns.

 

15.15       No

Third-Party Beneficiaries. Except as expressly set forth in the second sentence of this Section 15.15, this Agreement benefits

solely the Parties to this Agreement and their respective permitted successors and permitted assigns and nothing in this Agreement,

express or implied, confers on any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under

or by reason of this Agreement. The Parties hereby designate each Indemnified Party as a third-party beneficiary of Section 10.1.

 

15.16       Governing

Law. This Agreement, including all exhibits, schedules, attachments and appendices attached hereto and thereto, and all matters

arising out of or relating to this Agreement, are governed by, and construed in accordance with, the Laws of the State of Delaware,

United States of America, without regard to the conflict of laws provisions thereof. The Parties agree that the United Nations

Convention on Contracts for the International Sale of Goods does not apply to this Agreement.

 

15.17       Choice

of Forum. Subject to compliance with Section 14, each Party irrevocably and unconditionally agrees that it shall not commence

any action, litigation or proceeding of any kind whatsoever against the other Party in any way arising from or relating to this

Agreement, including all exhibits, schedules, attachments and appendices attached hereto and thereto, and all contemplated transactions,

including contract, equity, tort, fraud and statutory claims, in any forum other than U.S. District Court for the District of

Utah or, if such court does not have subject-matter jurisdiction, the courts of the State of Utah sitting in Salt Lake County,

and any appellate court from any thereof. Each Party irrevocably and unconditionally submits to the exclusive jurisdiction of

such courts and agrees to bring any such action, litigation or proceeding only in U.S. District Court for the District of Utah

or, if such court does not have subject-matter jurisdiction, the courts of the State of Utah sitting in Salt Lake County. Each

Party agrees that a final judgment in any such action, litigation or proceeding is conclusive and may be enforced in other jurisdictions

by suit on the judgment or in any other manner provided by Law.

 

15.18       Waiver

of Jury Trial. Each Party acknowledges and agrees that any controversy that may arise under this Agreement, including any

exhibits, schedules, attachments, and appendices attached to this Agreement, is likely to involve complicated and difficult issues

and, therefore, each such Party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of

any legal action arising out of or relating to this Agreement, including any exhibits, schedules, attachments, and appendices

attached to this Agreement, or the transactions contemplated hereby. Each Party certifies and acknowledges that (a) no Representative

of the other Party has represented, expressly or otherwise, that such other Party would not seek to enforce the foregoing waiver

in the event of a legal action, (b) such Party has considered the implications of this waiver, (c) such Party makes this waiver

voluntarily, and (d) such Party has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications

in this Section.

 

15.19       Counterparts.

This Agreement may be executed in counterparts, each of which is deemed an original, but all of which together is deemed to be

one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission

is deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

     23

     

    

 

15.20       Force

Majeure. Any delay or failure of either Party to perform its obligations under this Agreement will be excused to the extent

that the delay or failure was caused directly by an event beyond such Party’s control, not attributable to such Party’s

fault or negligence, and that by its nature was unavoidable (which events may include natural disasters, embargoes, explosions,

riots, wars or acts of terrorism) (each, a “Force Majeure Event”) provided that the delayed Party: (i)

gives the other Party prompt notice of such cause, and (ii) uses its commercially reasonable efforts promptly to correct such

failure or delay in performance. Seller’s financial inability to perform, changes in cost or availability of materials,

components or services, market conditions or supplier actions or contract disputes will not excuse performance by Seller under

this Section 15.20. In the event that any Force Majeure Event lasts sixty (60) days or longer, Buyer may, at its option: (a) exercise

its exclusive right to manufacture the Licensed Products under Section 2.4; or (b) require Seller to take commercially reasonable

steps to manufacture, deliver and sell to Buyer an inventory bank of Licensed Products, with pricing equivalent to the pricing

in effect immediately prior to the applicable Force Majeure Event. If the delay attributable to a Force Majeure Event lasts more

than sixty (60) days, Buyer may immediately terminate this Agreement under the terms of Sections 6.3 and 6.5. The rights granted

to Seller with respect to excused delays under this Section 15.20 are intended to limit Seller’s rights under theories of

force majeure, commercial impracticability, impracticability or impossibility of performance, or failure of presupposed conditions

or otherwise, including any rights arising under Section 2-615 or 2-616 of the UCC.

 

15.21       No

Public Announcements or Trademark Use. Unless expressly permitted under this Agreement, neither Party shall either:

 

(a)           make

any statement (whether oral or in writing) in any press release, external advertising, marketing or promotion materials regarding

the subject matter of this Agreement, the other Party or its business unless:

 

(i)

          it

has received the express written consent of the other Party, or

 

(ii)         

it is required to do so by Law; or

 

(b)           use

any of the other Party’s Trademarks without the prior written consent of the other Party.

 

     24

     

    

 

The

Parties hereto have executed this Agreement as of the date first set forth above.

 

	 	SELLER:
	 	 	 
	 	CLENE

    NANOMEDICINE, INC.,
	 	a

    Delaware corporation
	 	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 	 
	 	 	 
	 	BUYER:
	 	 	 
	 	4LIFE

    RESEARCH, LLC,
	 	a

    Utah Limited Liability Company
	 	 	 
	 	By:	                
	 	Name:
	 	Title:

 

     25

     

    

 

SCHEDULE

1

 

Licensed

Products

 

Low

concentrations of metallic silver or gold in water, and other similar low-concentration metal products made utilizing Clene’s

Electrical Techniques.

 

     26

     

    

 

EXHIBIT

A

DEFINITIONS

“Action”

means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation,

citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or other, whether at law,

in equity or otherwise.

 

“Affiliate”

of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by,

or is under common control with, such Person. For purposes of this definition of Affiliate, “control”

shall mean (a) in the case of corporate entities, direct or indirect ownership of more than fifty percent (50%) of the stock or

shares having the right to vote for the election of directors, or (b) in the case of non-corporate entities, direct or indirect

ownership of more than fifty percent (50%) of the equity, voting share participation or other interest with the power to direct

the management and the policies of such non-corporate entities.

 

“Agreement”

has the meaning set forth in the preamble to this Agreement.

 

“Background

Intellectual Property Rights” means Buyer’s Background Intellectual Property Rights or Seller’s Background

Intellectual Property Rights, as applicable.

 

“Business

Day” means any day except Saturday, Sunday or any other day on which commercial banks located in Salt Lake City

are authorized or required by Law to be closed for business.

 

“Buyer”

has the meaning set forth in the preamble to this Agreement.

 

“Buyer

Contracts” means all contracts or agreements to which Buyer is a party or to which any of its material assets are

bound.

 

“Buyer’s

Background Intellectual Property Rights” means Buyer’s Intellectual Property created, conceived, or developed

either before the Effective Date or outside the scope of the License Agreement.

 

“Buyer’s

Intellectual Property” means all Intellectual Property Rights owned by or licensed to Buyer, including all New Intellectual

Property and any of Buyer’s Background Intellectual Property Rights used in the design, production, and manufacturing of

the Combination Products.

 

“Buyer

Purchasing Party” or “Buyer Purchasing Parties” means Buyer or Buyer’s third party

manufacturing vendors that have been mutually agreed upon by the Parties.

 

“Change

in Control” shall have the meaning specified in the License Agreement.

 

“Claim” means any

Action brought against a Person by a third party.

 

“Combination

Products” shall have the meaning specified in the License Agreement.

 

     27

     

    

 

“Confidential

Information” has the meaning set forth in Section 13.1.

 

“Confirmation” has the meaning

set forth in Section 3.2.

 

“Defective”

means not conforming to the Product Warranty under Section 9.3(a)(i).

 

“Defective

Licensed Products” means Licensed Products shipped by Seller to Buyer pursuant to this Agreement that are Defective.

 

“Delivery

Date” means the delivery date for Licensed Products ordered hereunder that is in a Purchase Order, which must be

a Business Day no less than 120 days following delivery of the applicable Purchase Order to Seller.

 

“Delivery

Location” means the street address within the Territory for delivery of the Licensed Products specified in the applicable

Purchase Order.

 

“Disclosing

Party” has the meaning set forth in Section 13.1.

 

“Effective

Date” means the date first set forth in the preamble of this Agreement.

 

“Electrical Techniques”

shall have the meaning specified in the License Agreement.

 

“Encumbrance” means any charge, claim, community

property interest, pledge, condition, equitable interest, lien (statutory or other), option, security interest, mortgage, easement,

encroachment, right of way, right of first refusal, or restriction of any kind, including any restriction on use, voting, transfer,

receipt of income or exercise of any other attribute of ownership.

 

“Field”

shall have the meaning specified in the License Agreement.

 

“Force Majeure Event” has the meaning set

forth in Section 15.20.

 

“Governmental

Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency

or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory

authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority

have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.

 

“Governmental

Order” means any order, writ, judgment, injunction, decree, stipulation, award or determination entered by or with

any Governmental Authority.

 

“Indemnified

Parties” has the meaning set forth in Section 10.1.

 

“Indemnifying Party” has the meaning

set forth in Section 10.1.

 

“Initial Term” has the meaning set forth in Section 6.1.

 

“Inspection

Period” has the meaning set forth in Section 4.4.

 

     28

     

    

 

“Intellectual

Property” means Buyer’s Intellectual Property or Seller’s Intellectual Property, as applicable.

 

“Intellectual

Property Rights” means all industrial and other intellectual property or proprietary rights comprising or relating

to: (a) Patents; (b) Trademarks; (c) internet domain names, whether or not Trademarks, registered by any authorized private registrar

or Governmental Authority, web addresses, web pages, website, and URLs; (d) works of authorship, expressions, designs and design

registrations, whether or not copyrightable, including copyrights and copyrightable works, software and firmware, data, data files,

and databases and other specifications and documentation; (e) Trade Secrets; and (f) all industrial and other intellectual property

rights, and all rights, interests and protections that are associated with, equivalent or similar to, or required for the exercise

of, any of the foregoing, however arising, in each case whether registered or unregistered and including all registrations and

applications for, and renewals or extensions of, such rights or forms of protection pursuant to the Laws of any jurisdiction throughout

in any part of the world.

 

“Law”

means any statute, law, ordinance, regulation, rule, code, constitution, treaty, common law, Governmental Order or other requirement

or rule of law of any Governmental Authority.

 

“License”

means the exclusive, royalty bearing, worldwide license to the Licensed Products, including the Patents and Licensed Know-How,

which is more fully described in the License Agreement.

 

“License

Agreement” means that license agreement of even date herewith between Buyer and Seller executed simultaneously with

this Agreement, and which further defines rights and obligations of the Parties.

 

“Licensed

Products” shall have the meaning specified in the License Agreement.

 

“Losses” means any

and all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines,

costs, or expenses of whatever kind, including reasonable attorneys’ fees, fees and the costs of enforcing any right to

indemnification under this Agreement and the cost of pursuing any insurance providers, incurred by any Indemnified Party.

 

“Major

International Markets” means the following markets of Buyer: South Korea, Ecuador, Mexico, Philippines, Spain, Malaysia,

Indonesia, Colombia, Germany, Peru, Hong Kong/China, Russia, Japan and the Dominican Republic.

 

“Minimum

Sales Commencement Date” has the meaning set forth in Section 5.5.

 

“Minimum Sales Commitment”

has the meaning set forth in Section 5.5.

 

“Nanoforms” has the meaning set forth in the Recitals to this

Agreement.

 

“New

Intellectual Property” shall have the meaning specified in the License Agreement.

 

     29

     

    

 

“Nonconforming

Licensed Products” means any Licensed Products received by Buyer from Seller that: (a) do not conform to the Licensed

Products listed in the applicable Purchase Order; (b) do not materially conform to the specifications for the Licensed Products;

(c) are otherwise Defective; or (d) exceed the quantity of Licensed Products ordered by Buyer pursuant to this Agreement or any

Purchase Order, unless such conditions result from a Buyer Purchasing Party’s failure to undertake or exercise a

quality control measure described in Section 4.5, from accident, negligence or misuse on the part of anyone other than Seller,

or from any alteration or other handling or usage of the Licensed Products that is inconsistent with the manner agreed upon by

the Parties. Where the context requires, Nonconforming Licensed Products are deemed to be Licensed Products for purposes of this

Agreement.

 

“Notice”

has the meaning set forth in Section 15.5.

 

“Party”

has the meaning set forth in the preamble to this Agreement.

 

“Patents”

shall have the meaning specified in the License Agreement.

 

“Permits”

means permits, licenses, franchises, approvals, authorizations, registrations, certificates, variances and similar rights obtained

or required to be obtained, from any Governmental Authority.

 

“Person”

means any individual, partnership, corporation, trust, limited liability entity, unincorporated organization, association, Governmental

Authority or any other entity.

 

“Personnel”

of a Party means any agents, employees, contractors or subcontractors engaged or appointed by such Party.

 

“Price”

has the meaning set forth in Section 5.1.

 

“Product

Warranty” has the meaning set forth in Section 9.3.

 

“Purchase

Order” means Buyer’s purchase order for Licensed Products issued to Seller hereunder, which may, among other

things, specify items such as: (a) the Licensed Products to be purchased; (b) the quantity of each of the Licensed Products ordered;

(c) the requested Delivery Date; (d) the billing address; and (e) the Delivery Location. For the avoidance of doubt, any references

to Purchase Orders hereunder also include any applicable Releases.

 

“Receiving

Party” has the meaning set forth in Section 13.1.

 

“Release”

means a document issued by Buyer to Seller pursuant to a Purchase Order that identifies (to the extent not specified in the original

Purchase Order) the quantities of Licensed Products constituting Buyer’s requirements or otherwise to be included in a particular

order, the Delivery Locations and requested Delivery Dates for such Licensed Products.

 

“Renewal

Term” has the meaning set forth in Section 6.2.

 

“Representatives”

means a Party’s Affiliates and each of their respective Personnel, officers, directors, partners, shareholders, attorneys,

third-party advisors, successors and permitted assigns.

 

“Seller”

has the meaning set forth in the preamble to this Agreement.

 

     30

     

    

 

“Seller

Contracts” means all contracts or agreements to which Seller is a party or to which any of its material assets are

bound.

 

“Seller’s

Background Intellectual Property Rights” means Seller’s Intellectual Property created, conceived, or developed

either before the Effective Date or outside the scope of the License Agreement, including the Licensed Patents, the Licensed Know-How,

and the Licensed Products.

 

“Seller’s

Intellectual Property” means all Intellectual Property Rights owned by or licensed to Seller, including any of Seller’s

Background Intellectual Property Rights used in the design, production, and manufacturing of the Licensed Products, and any Enhancements

or derivatives created therefrom. For the avoidance of doubt, Seller’s Intellectual Property does not include New Intellectual

Property.

 

“Taxes”

means any and all present and future sales, income, stamp and other taxes, levies, imposts, duties, deductions, charges, fees

or withholdings imposed, levied, withheld or assessed by any Governmental Authority, together with any interest or penalties imposed

thereon.

 

“Term”

has the meaning set forth in Section 6.2.

 

“Territory”

means the US, and its territories and possessions.

 

“Trademarks”

means all rights in and to US and foreign trademarks, service marks, trade dress, trade names, brand names, logos, symbols, trade

dress, corporate names and domain names and other similar designations of source, sponsorship, association or origin, together

with the goodwill symbolized by any of the foregoing, in each case whether registered or unregistered and including all registrations

and applications for, and renewals or extensions of, such rights and all similar or equivalent rights or forms of protection in

any part of the world.

 

“Trade

Secrets” means all inventions, discoveries, trade secrets, business and technical information and know-how, databases,

data collections, patent disclosures and other confidential and proprietary information and all rights therein.

 

“UCC”

means the Uniform Commercial Code, as adopted in the State of Utah.

 

“US” means the United States of

America.

 

     31Exhibit 10.16

 

ease

agreement between

 

UPPER

CHESAPEAKE FLEX ONE, LLC AND Clene Nanomedicine, Inc.

 

	 	Page
	Article

    1.   TERM:	1
	Article

    2A.   CONSTRUCTION AND IMPROVEMENTS:	1
	Article

    2B.   LETTER OF CREDIT:	2
	Article

    3.   COMMENCEMENT DATE:	2
	Article

    4A.   RENT:	2
	ARTICLE

    4B.   LATE PAYMENT CHARGES:	3
	article

    4C.   OPERATING EXPENSES:	3
	Article

    5.   OPTION TO RENEW:	5
	Article

    6.   USE OF PREMISES:	6
	Article

    7.   COMMON AREAS AND FACILITIES:	8
	Article

    8.   PAYMENT OF UTILITY CHARGES AND SERVICES:	8
	Article

    9.   REAL ESTATE TAXES:	8
	Article

    10.   PROPERTY INSURANCE:	9
	Article

    11.   LIABILITY INSURANCE:	9
	Article

    12.   WAIVER OF SUBROGATION CLAUSE:	9
	Article

    13.   INDEMNIFICATION:	9
	Article

    14.   MAINTENANCE AND REPAIRS:	11
	Article

    15.   ALTERATIONS AND ADDITIONS:	12
	Article

    16.   DAMAGE OR DESTRUCTION OF IMPROVEMENTS:	12
	Article

    17.   LANDLORD’S RIGHT TO ACCESS:	13
	Article

    18.   SURRENDER OF PREMISES:	13
	Article

    19.   SIGN:	14
	Article

    20.   ASSIGNMENT AND SUBLETTING:	14

 

    i

     

    

 

	Article

    21.   EMINENT DOMAIN:	14
	Article

    22.   SECURITY DEPOSIT:	15
	Article

    23.   financial statement:	16
	Article

    24.   DEFAULT:	16
	Article

    25.   SERVICE OF NOTICE:	18
	Article

    26.   QUIET ENJOYMENT:	19
	Article

    27.   SUBORDINATION AND NON-DISTURBANCE AND ESTOPPEL CERTIFICATE:	19
	Article

    28.   JURISDICTION FOR DISPUTES:	20
	Article

    29.   HOLD-OVER:	20
	Article

    30.   LANDLORD’S CONSENT:	20
	Article

    31.   GOVERNING LAW:	20
	Article

    32.   PARTIAL INVALIDITY:	21
	Article

    33.   INTERPRETATION:	21
	Article

    34.   ENTIRE AGREEMENT:	21
	Article

    35.   PARTIES:	21
	Article

    36.   BROKER:	21

 

    ii

     

    

 

LEASE

AGREEMENT

 

This

Lease, dated this ____ day of ___________________ 2016 by and between UPPER CHESAPEAKE FLEX ONE, LLC hereinafter referred

to as “Landlord” and CLENE NANOMEDICINE, INC., hereinafter referred

to as “Tenant”.

 

W

I T N E S S E T H:

 

The

Landlord, for and in consideration of the payment of rent and the performance of the covenants and agreements entered into herein

between the Landlord and the Tenant, does hereby lease to the Tenant, and the Tenant does hereby lease from the Landlord, the

following described premises:

 

Approximately

14,716square feet of space (the “Premises”) in an approximate 45,000 SF building constructed on the premises and property

known as Principio Flex A, Cecil Technology Campus, Principio Business Park, located at 500 Principio Parkway West, North East,

Maryland (the “Property”).

 

The

boundaries and location of the improvements and the land comprising the Premises are shown on the plans attached hereto and made

a part hereof and marked as Exhibit D -Site Plan, Exhibit E -Floor Plan and Exhibit G -Scope of Work

 

Article

1.TERM:

 

The

initial base term of this Lease shall begin on the Commencement Date and shall end one hundred twenty (120) months after the end

of the first complete calendar month containing the Commencement Date (the “Term”). By way of example, if the Commencement

Date isNovember 1, 2016, the initial base term will endOctober 31, 2026, subject to Tenant’s option to renew as described

in Article 5A of this Lease.

 

Landlord

shall not have the right to relocate Tenant during the term of the lease or any renewal periods. Landlord agrees that should Tenant

desire to expand or move within the existing building, or relocate to another building within the Park, and mutually satisfactory

leasing conditions have been negotiated for such expansion or relocation space, such conditions to include appropriate recapture

by the Landlord of unamortized leasehold improvement costs, Tenant shall be released from the terms of this lease.

 

Article

2A.CONSTRUCTION AND IMPROVEMENTS:

 

Landlord

shall be responsible for all costs associated with the Tenant Improvements listed on Exhibit E, including but not limited

to architectural fees, engineering fees, construction management, and building permits, not to exceed Seven Hundred Thousand and

00/100 ($700,000.00) Dollars.Tenant shall have the right, at its sole cost and expense and in conformity with applicable laws

and ordinances, to install a required modular clean room and associated fixtures, which are identified on Exhibit I, in

the interior of the Leased Premises. Tenant shall be responsible for all costs associated with its modular clean room, and shall

retain ownership of the same. Tenant may recover its modular clean room at any time during the Term of this Lease or any extension

thereof, and upon expiration of this Lease, Tenant has thirty (30) days to recover its modular clean room; provided, that Tenant

shall repair any damage caused to the Premises by such removal; all roof top units and mechanical fit-ins shall remain the property

of Landlord, except for the HVAC units and mechanical fit-ins specifically related to the clean room.

 

    1

     

    

 

Landlord

and Tenant shall mutually agree on all finishes for the Premises, the construction scope and schedule, which shall be incorporated

into a plan (“Scope of Work”), which shall be attached hereto and made a part hereof marked Exhibit G. Landlord

and Tenant shall mutually agree upon a construction schedule, which shall be attached hereto and made a part hereof marked Exhibit

H.

 

Article

2B.LETTER OF CREDIT:

 

Upon

the execution of this Lease, Tenant shall deliver to Landlord a letter of credit (“LOC”) in the amount of Seven Hundred

Thousand and 00/100($700,000.00) Dollarsin order to guaranty the Landlord’s costs associated with the Tenant Improvements

listed on Exhibit E. The full amount of the LOC shall be during year 1 of the Lease Term. Landlord shall reduce Tenant’s

LOC to Five Hundred Thousand and 00/100 ($500,000.00)Dollars at the end of year1 of the Lease Term so long as Tenant is current

on Base Rent and common area expenses. Landlord shall reduce Tenant’s LOC to Two Hundred Fifty Thousand and 00/100 ($250,000.00)

Dollarsat the end of year 2 of the Lease Term so long as Tenant is current on rent and common area expenses owed. At the end of

year 3 of the Lease Term, the Landlord will fully release the LOC, less any rent and common area expenses owed to Landlord.

 

Article

3.COMMENCEMENT DATE:

 

The

Commencement Date of this Lease Agreement shall be five (5) business days after Landlord obtains a Certificate of Occupancy for

the Premises. Landlord shall send Tenant a commencement letter in substantially the same form as shown on Exhibit “A”

attached. Tenant shall sign such commencement letter and return it to Landlord indicating its agreement with the terms of

such commencement letter. Notwithstanding the above, if there are any discrepancies between such commencement letter and this

Lease, this Lease shall govern, except the Commencement Date shall be as set forth in such commencement letter.

 

Article

4A.RENT:

 

The

Tenant, in consideration of the Lease, covenants and agrees to pay to the Landlord the annual rent for the Premises as set forth

below (hereinafter referred to as the “Base Rent”) payable on the first day of each and every calendar month during

the Term, in advance, in monthly installments, except that the payment that is due and owing for the second full month’s

rent shall be paid upon execution of this Lease Agreement.

 

    2

     

    

 

The

Base Rent for the entire Term shall be payable as follows:

 

	Period	 	Annual Base Rent	 	Monthly Base Rent
	Year 1	 	$220,740.00	 	$18,395.00
	Year 2	 	$226,184.92	 	$18,848.74
	Year 3	 	$231,924.16	 	$19,327.01
	Year 4	 	$237,663.40	 	$19,805.28
	Year 5	 	$243,696.96	 	$20,308.08
	Year 6	 	$249,730.52	 	$20,810.88
	Year 7	 	$255,911.24	 	$21,325.94
	Year 8	 	$262,386.28	 	$21,865.52
	Year 9	 	$269,008.48	 	$22,417.37
	Year 10	 	$275,630.68	 	$22,969.22

  

The

annual rent is payable in advance, in the equal monthly installment specified above on the first day of each and every calendar

month during the Term hereof, except that the rental payment for any fractional calendar month at the commencement of the Lease

Term shall be pro-rated based on the actual number of calendar days in the month in which the Commencement Date occurs. Any pro-rated

rent for such fractional month shall be reflected in the first full calendar month of the Lease Term.

 

ARTICLE

4B.LATE PAYMENT CHARGES:

 

In

the event payment for any charges due under the terms of this Lease is not received within thirty (30) calendar days of the due

date for such charges, a service charge of ten percent (10%) of the amount due shall be charged to and paid by Tenant to Landlord.

 

article

4C.OPERATING EXPENSES:

 

Tenant

shall pay to Landlord during the Term hereof, in addition to the Base Rent, Tenant’s share, as hereinafter described, of

all Operating Expenses, as hereinafter defined, during each calendar year of the Term of this Lease, in accordance with the following

provision:

 

“Operating

Expenses” are defined for purposes of this Lease, as all costs incurred by Landlord, if any, for:

 

1.       The

operation, repair and maintenance, in neat, clean, good, safe order and condition of the following:

 

A.       The

common areas, including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, driveways, landscaped areas,

lawn areas, striping, bumpers, common area light facilities and common signs.

 

    3

     

    

 

B.       Any

other service to be provided by Landlord that is elsewhere in this Lease stated to be an “Operating Expense”;

 

2.       The

cost of the premiums for the insurance policy to be maintained by Landlord under Article 10 hereof and Article 11

hereof.

 

3.       The

amount of the real estate tax to be paid by Landlord under Article 9 hereof.

 

4.       The

cost of water, gas and electricity to service the common areas.

 

5.       The

cost of all maintenance programs to service the Premises.

 

6.       The

cost of water and sewer service to the Property based on the pro-rata square footage of Premises to the total occupied square

footage of the Property.

 

The

inclusion of the improvements, facilities and services set forth by the definition of Operating Expenses shall not be deemed to

impose an obligation upon Landlord to either have said improvements or facilities or to provide those services unless the building

already has the same, Landlord already provides the services or Landlord has agreed elsewhere in this Lease to provide the same

or some of them.

 

Nothing

in this Lease shall be construed to impose any obligation on Tenant to bear the cost of any capital improvements to the property

whatsoever. No capital expenditures made by Landlord, whether made to improve the land, building or improvements, shall be allocated

to Tenant in any way.

 

The

responsibility of Tenant and Landlord with respect to Operating Expenses and structural repair items are further described in

Exhibit “B” Operating Expense Responsibility attached hereto and made a part hereof.

 

During

the Term of this Lease the Tenant will pay Landlord, as additional rent, it’s pro rata share of Landlord’s Operating

Expenses. The Tenant’s pro-rata share shall be the percentage of the Tenant’s total square footage divided by the

total square footage of the entire building. Landlord shall estimate for each calendar year the monthly additional rent to be

paid by the Tenant. If within 30 calendar days of receipt of Landlord’s statement, Tenant contests any increase in Operating

Expenses, Tenant shall have the right to inspect Landlord’s records relating to Operating Expenses and, if Landlord and

Tenant are still unable to agree on the increase in Operating Expenses for the current lease year, the matter shall be referred

to an independent certified public accountant who will calculate the increase to Tenant’s share of Operating Expenses. The

cost of such independent certified public accountant shall be shared equally by Landlord and Tenant. For the initial 12 months,

the Tenant’s estimated pro rata share of Landlord’s Operating Expenses shall not to exceed $3.13 per sq. ft. Each

installment of Tenant’s share of Operating Expenses shall be payable by Tenant on the first day of each month during the

Term with the Base Rent referred to in Article 4A. The total amount to be remitted by Tenant to Landlord during the initial

lease year shall be as follows:

 

	 	 	Monthly	 	 	Total Annual	 
	Base Rent	 	$	18,395.00	 	 	$	220,740.00	 
	Estimated Operating Expenses	 	$	3,838.42	 	 	$	46,061.04	 
	TOTAL	 	$	22,233.42	 	 	$	266,801.04	 

  

    4

     

    

 

Landlord

shall deliver to Tenant as soon as possible after the expiration of each calendar year a reasonably detailed statement showing

Tenant’s share of the actual Operating Expenses incurred during the preceding year. If Tenant’s payments under this

Article during said preceding year were less than Tenant’s share as indicated on said statement, Tenant shall pay to Landlord

the amount of the deficiency within thirty (30) calendar days after delivery by Landlord to Tenant of said Statement. If Tenant’s

payments under this Article during said preceding year were more than Tenant’s share as indicated on said statement, Tenant

shall receive a credit from Landlord equal to the amount of such overage. Such credit shall be applied against the charges due

from Tenant in the month following said statement. If such statement is delivered to Tenant during the last month of the Term

of this Lease or after the expiration of the Term of this Lease, Landlord shall reimburse Tenant in cash for any overpayment and

such responsibility shall survive the Term of this Lease.

 

Tenant’s

share of all of the Operating Expenses shall be determined by totaling all of those costs and multiplying it by a fraction, the

numerator of which shall be the number of square feet in the Premises and the denominator shall be the total number of gross leasable

square feet in the building of which the Premises is a part. If the floor area of the Premises or the building of which the leased

Premises are a part is changed during the original Term or any renewal Term of this Lease, Tenant’s pro rata share shall

be determined as provided above.

 

If

Tenant commences occupying the Premises other than on January 1 of any year, or vacates the Premises prior to December 31 of any

year, the charges for reimbursement of Landlord’s charges for Operating Expenses shall be pro-rated, based upon the actual

time Tenant was in possession of the Premises at the beginning of the Lease and also at the end of the Lease.

 

Article

5.OPTION TO RENEW:

 

Provided

Tenant is not in default of the terms, conditions, or covenants contained in this Lease, beyond any grace or cure period established

herein, Tenant shall have the right, and option to extend or renew this Lease for two (2) periods of five (5) years, commencing

immediately after the end of Lease term. The option to renew is only exercisable if Tenant is not in default of the Lease or in

the performance of any of its terms and conditions at the end of the Lease term or at the time of exercise of any of its options.

If any option to renew is exercised, all the terms and conditions of the Lease shall remain except that the rent shall be adjusted

as follows to the following:

 

    5

     

    

 

The

annual rent for the renewal periods shall be equal to the following:

 

	Period 1	 	Annual Base Rent	 	Monthly Base Rent
	Year 1	 	$282,547.20	 	$23,545.60
	Year 2	 	$289,610.88	 	$24,134.24
	Year 3	 	$296,821.72	 	$24,735.14
	Year 4	 	$304,326.88	 	$25,360.67
	Year 5	 	$311,832.04	 	$25,986.00

 

	Period 2	 	Annual Base Rent	 	Monthly Base Rent
	Year 1	 	$319,631.52	 	$26,635.96
	Year 2	 	$327,725.32	 	$27,310.44
	Year 3	 	$335,819.12	 	$27,984.93
	Year 4	 	$344,207.24	 	$28,683.94
	Year 5	 	$352,889.68	 	$29,407.47

 

Tenant

must give written notice to the Landlord one hundred eighty (180) calendar days prior to expiration of lease to exercise this

option.

 

Article

6.USE OF PREMISES:

 

Tenant

is hereby given the privilege and right to use the Premises for manufacturing of medical grade pharmaceutical products and general

office spay and any use related to the operation of said business. The Property is zoned Industrial, and Landlord represents that,

to the best of Landlord’s knowledge, use of the Premises for such business is permitted under currently applicable zoning

requirements, and there are no legislative, regulatory, or judicial proceedings underway that would render such use impermissible.

Tenant may utilize and use the Premises for any other lawful office or lawful commercial or industrial use only upon the prior

written consent of the Landlord.

 

    6

     

    

 

Tenant

shall at its own cost and expense, promptly observe and comply with all laws, ordinances, requirements, orders, directives, rules

and regulations of the federal, state, county, municipal or town governments and of all governmental authorities or agencies affecting

the Premises whether same are in force on the Commencement Date of this Lease or are passed, enacted or directed in the future

(collectively, “Legal Requirements”).

 

However,

the Tenant shall not be required to make any structural repairs or changes in the improvements, or any non-structural repairs

made necessary by defects in the construction or changes to the Property that may be required by any governmental agency or authority,

unless the required changes to the structure are the results of any changes or defects caused or initiated by the Tenant.

 

Tenant

shall not use or permit the Premises to be used for any purpose other than as specified herein and shall not use or permit the

Premises to be used for any unlawful, immoral, hazardous, or disreputable purpose. Furthermore, the use of the Premises shall

not be in violation of any laws, ordinances, regulations, or other applicable governmental regulations or any use which would

jeopardize or invalidate any of the insurance coverage on the Premises that are held by the Landlord.

 

Tenant

covenants and warrants that Tenant, Tenant’s work and Tenant’s use of Premises will at all time comply to all laws,

statutes, ordinances, rules and regulations of any governmental, quasi-governmental or regulatory authorities (“Laws”)

which relate to the transportation, storage, placement, handling, treatment, discharge, generation, production or disposal (collectively

“Treatment”) of any waste, petroleum product, waste products, radioactive waste, poly-chlorinated biphenyl’s,

asbestos, hazardous materials of any kind, any substance which is regulated by any law, statute ordinance, rule or regulation

(collectively “Waste”). Tenant further covenants and warrants that it will not engage in or permit any person or entity

to engage in any Treatment of any Waste on or which affects the Premises.

 

Immediately

upon receipt of any Notice (as hereinafter defined) from any person or entity, Tenant shall deliver to Landlord a true, correct

and complete copy of any written Notice. “Notice” shall mean any note, notice or report of any suit, proceeding, investigation,

order, consent order injunction, writ, award or action related to or affecting or indicating the Treatment of any Waste in or

affecting the Premises.

 

Tenant

hereby agrees to indemnify, defend, save and hold harmless Landlord and Landlord’s officers, directors, owners, employees,

agents and their respective heirs, successors and assigns (collectively “Indemnified Parties”) against and from, and

to reimburse the Indemnified Parties with respect to, any and all damages, claims, liabilities, loss, costs and expense (including,

without limitation, all attorneys’ fees and expenses, court costs, administrative costs and costs of appeals), incurred

by or asserted against the Indemnified Parties by reason of or arising out of: (a) the breach of any representation or undertaking

of Tenant under this Article 6 or (b) arising out of the Treatment of any Waste by Tenant or any licensee, concessionaire,

manager or other party occupying or using the Premises, in or affecting the Premises.

 

    7

     

    

 

Tenant

agrees to deliver upon request from Landlord estoppel certificates to Landlord expressly stipulating whether Tenant is engaged

in or has engaged in the Treatment of any Waste in or affecting the Premises, and whether Tenant has caused any spill, contamination,

discharge, leakage, release or escape of any Waste in or affecting the Premises, whether sudden, gradual, accidental or anticipated,

or any other nature at or affecting the Premises and whether, to the best of Tenant’s knowledge, such an occurrence has

otherwise occurred at or affecting the Premises.

 

Article

7.COMMON AREAS AND FACILITIES:

 

The

common areas and facilities which are provided by the Landlord in or near the Property for the general common use of the tenant,

their officers, agents, employees and customers shall include but not be limited to all parking areas, access road, loading docks,

sidewalks, landscape and planting areas, lighting facilities and other area of improvement. The common areas and facilities shall

at all times be under the exclusive control and management of the Landlord. Landlord shall have the right to establish, modify

and enforce reasonable rules and regulations with respects to the common areas and facilities.

 

Article

8.PAYMENT OF UTILITY CHARGES AND SERVICES:

 

Tenant

shall be solely responsible for the payment of its own gas, telephone, metered electricity, refuse disposal, and any other utility

services or charges that are used or wasted by said Tenant on the Premises. Gas and electricity shall be separately metered for

the Premises apart from other adjacent rental spaces that are owned, rented or reserved by the Landlord. Tenant shall be responsible

for contacting all of the applicable utility providers to ensure that the utilities described above are billed to Tenant beginning

on the Commencement Date. In addition, Tenant shall be responsible for contacting such utility providers upon the termination

of this Lease to cause such utilities to no longer be charged to Tenant.

 

Landlord

shall under no circumstances be liable to Tenant in damages or otherwise, for any interruption in the service of water, electricity,

gas, heating, air conditioning or other utilities or services caused by any unavoidable delay, by the making of any necessary

repairs or improvements, or by any cause beyond Landlord’s reasonable control.

 

Tenant

shall be responsible for and bear the cost of removal of all waste and refuse generated in his course of business.

 

Article

9.REAL ESTATE TAXES:

 

Landlord

shall pay all real estate taxes levied by a governmental entity against the Premises on or prior to the date same are due. All

real estate taxes shall be included in Operating Expenses as described in Article 4C hereof.

 

    8

     

    

 

Article

10.PROPERTY INSURANCE:

 

During

the Term of this Lease or any extensions or renewals thereof, Landlord covenants that it will insure the improvements now standing

upon the Premises, against loss or damage by fire and other perils covered under a special cause of loss form or on an all-risk

basis with a responsible insurance company or companies and will maintain such insurance at all times during the Term of this

Lease or any extensions or renewals hereof in an amount equal to not less than the full insurable value of said improvements on

a replacement cost basis. The policy or policies thereof shall be taken out by Landlord and the premiums for such policy or policies

shall be included in Operating Expenses as described in Article 4C hereof. Tenant shall be solely responsible for any premiums

or any increase in Landlord’s premium on account of changes of the premises caused by Tenant or hazardous activities of

Tenant, and shall be solely responsible for obtaining any fire or extended coverage insurance of its personal property, and materials

stored in or about the Premises. In addition, Landlord shall have the option of procuring rental loss insurance with respect to

the Premises.

 

Article

11.LIABILITY INSURANCE:

 

At

all times during the Term hereof or any extension thereof, Landlord shall maintain and keep in force, for the benefit of the Landlord

general public liability insurance against claims for personal injury, death, or property damage occurring in or about the Premises

or sidewalks or areas adjacent to the Premises to afford protection to the limit of not less than One Million Dollars ($1,000,000.00)

in respect to bodily injury or property damage and to the aggregate limit of not less than Three Million Dollars ($3,000,000.00)

in respect to bodily injury or property damage. The premiums for such insurance shall be included in Operating Expenses as described

in Article 4C hereof. During the entire Term of this Lease, the Tenant shall maintain in force general liability insurance

naming the Landlord as additional insured in respect to the Premises with a minimum limit as described in this Article 11.

 

The

Tenant must furnish the Landlord a certificate of insurance for the above coverage which contains a clause requiring a minimum

of thirty (30) calendar days’ notice of non-renewal or cancellation to the Landlord.

 

Article

12.WAIVER OF SUBROGATION CLAUSE:

 

Landlord

and Tenant each hereby waive any and all rights of recovery, by subrogation or otherwise, against each other and the officers,

employees, agents and representatives of such other party for loss of or damage to such waiving party or its property or the property

of others under its control, arising from any cause insured against by any insurance policy in force (whether or not described

herein) carried by such waiving party in lieu thereof, and each party shall cause each insurance policy obtained by it to provide

that the insurance company waives all right of recovery by way of subrogation against either party in connection with any damage

covered by any policy; provided, however, that in the event a loss or a damage incurred by the Landlord due to Tenant’s

negligence, this waiver shall not be applicable to the Landlord and the indemnification covenants of Section 13 hereof shall control.

 

Article

13.INDEMNIFICATION:

 

Tenant

shall defend, indemnify and save Landlord harmless from and against any and all liability, claims, damages, penalties, or judgments

arising from or in any way connected with injury to person or property sustained in and about the Premises in the custody and

control of Tenant. If Landlord shall, without fault on its part, be made a part of any litigation commenced by or against Tenant,

Tenant shall defend, indemnify and hold Landlord harmless, and Tenant shall pay all reasonable expenses, attorney fees, and costs

that may be incurred by Landlord, and Tenant will be kept informed of all such costs incurred by Landlord on a regular basis.

 

    9

     

    

 

Except

for the negligence of Landlord or the negligence of Landlord’s officers, agents, servants, employees, or contractors, Landlord

shall not be responsible or liable for any damage or injury to any property, fixtures, buildings, or other improvements, or to

any person or persons at any time on the Premises, including any damage or injury to Tenant or to any of Tenant’s officers,

agents, servants, employees, contractors, customers, or sublessee.

 

Landlord

shall defend, indemnify and save Tenant harmless from and against any and all liability, claims, damages, penalties, or judgments

arising from or in any way connected with injury to person or property sustained in and about the Premises in the custody and

control of Landlord. If Tenant shall, without fault on its part, be made a part of any litigation commenced by or against Landlord,

Landlord shall defend, indemnify and hold Tenant harmless, and Landlord shall pay all reasonable expenses, attorney fees, and

costs that may be incurred by Tenant, and Landlord will be kept informed of all such costs incurred by Tenant on a regular basis.

 

Except

for the negligence of Tenant or the negligence of Tenant’s officers, agents, servants, employees, or contractors, Tenant

shall not be responsible or liable for any damage or injury to any property, fixtures, buildings, or other improvements, or to

any person or persons at any time on the Premises, including any damage or injury to Landlord or to any of Landlord’s officers,

agents, servants, employees, contractors, customers, or sublessor.

 

    10

     

    

 

Article

14.MAINTENANCE AND REPAIRS:

 

Landlord

represents and warrants at the Commencement Date and for the duration of the lease Term that the Premises will be in good working

order and repair and maintain all equipment in good operating condition. Tenant accepts the property as of the Commencement Date

in an “AS IS” condition upon assuming possession of the Premises. Landlord will correct all construction defects,

whether structural or not, discovered within one year of the Commencement Date, or such longer period as may be specified in an

applicable contractor’s, subcontractor’s, or materialmen’s warranty. In addition, Landlord will make all necessary

structural repairs to the Premises throughout the Term of this Lease. The structural items for which Landlord shall be responsible

are the roof, exterior walls, the bearing walls (if such walls have not been changed by Tenant), the support beams, the columns,

the concrete floor slabs, the plumbing system below the floor level of the facility (obstruction caused by Tenant shall be Tenant’s

responsibility to correct), except those damages that are caused by the Tenant’s negligence. Tenant agrees to give prompt

notice to Landlord of any defects or other hazardous conditions required to be repaired or remedied by Landlord. If the repairs

required to be made by Landlord or Tenant are not completed within a reasonable time after request for such repair by the other

party, Landlord or Tenant, as the case may be, shall have the option to make such repairs after first giving the other party fifteen

(15) calendar days’ notice of its intention to do so, and any amounts expended by virtue thereof shall be added to or subtracted

from the next month’s rent in the full amount of the expenditures.

 

Landlord,

during the Term of this Lease, shall maintain and repair when needed all of the mechanical equipment (“HVAC system”),

including but not limited to heating and air conditioning units, plumbing, and electrical units, in a good condition and good

state of repair. Further, Landlord shall maintain a service contract on the HVAC system with a reputable heating and air conditioning

contractor, providing for regular routine maintenance, changing of filters and lubricating the HVAC system. Such maintenance and

repair and service contract shall be included in Operating Expenses as described in Article 4C hereof.

 

Tenant

shall keep the Premises free and clear of rodents, bugs and vermin, and Tenant shall use, at its cost and at such intervals as

Landlord shall reasonably require, a reputable pest extermination contractor to provide extermination services in the Premises.

Notwithstanding the above, if Landlord reasonably determines that an extermination service needs to be provided to the entire

Building in order to eliminate pests from the entire Building, Landlord shall contract for such extermination services and include

the cost of such services in Operating Expenses. Landlord shall provide Tenant with advance notice of any such extermination services

to be made to the Premises by Landlord within a reasonable period of time.

 

Tenant

shall keep the Premises clean and orderly and shall not cause the common areas to become disorderly, cluttered, dirty or

trashed at any times and shall not cause refuse to accumulate around any portion of the Property. Trash shall be stored in a

sanitary and inoffensive manner inside the Premises or in screened areas approved by Landlord, and Tenant shall cause

the same to be removed at reasonable intervals.

 

    11

     

    

 

Landlord

shall provide Tenant with five suite keys at no cost to Tenant. All keys are on “Do Not Duplicate” blanks, and

numbered for Tenant’s security. These keys cannot be reproduced unless they are done by Landlord’s locksmith. If

additional keys are required by Tenant, Tenant shall contact Landlord in order that Landlord may authorize the issuance of

such keys. The cost of any such additional keys shall be the responsibility of Tenant to pay.

 

Article

15.ALTERATIONS AND ADDITIONS:

 

Prior

to Tenant’s occupancy of the Premises, Landlord shall complete those improvements as shown and described on the attached

Exhibit “E”-Floor Plan and Exhibit “G”-Scope of Work.

 

After

Tenant occupies the Premises, Tenant, at its expense, shall have the right to make changes in the interior of the Premises, other

than major structural changes, as it shall deem necessary or advisable in adapting the Premises for its use. No structural changes

shall be made without the prior written consent of Landlord. Tenant shall be responsible for any and all costs associated with

said improvements made after Tenant occupies the Premises and shall be responsible to obtain any and all necessary building permits,

use and occupancy permits, etc. from any and all governmental agencies or authorities as may be applicable.

 

All

fixtures shall become a part of the Premises and the property of the Landlord at the termination of the Lease, except that trade

fixtures installed by Tenant shall be considered as its own, and Tenant may recover the same at any time during the Term of this

Lease or any extension thereof, provided that Tenant shall repair any damage caused to the Premises by such removal.

 

Article

16.DAMAGE OR DESTRUCTION OF IMPROVEMENTS:

 

In

the event the Premises shall be rendered untenable by fire or other casualty, Landlord will, within sixty (60) calendar days from

the date of said damage or destruction, repair or replace the Premises to substantially the same condition as prior to the damage

or destruction. If Landlord fails to commence repair of the damage or destruction within thirty (30) calendar days from the date

of such damage or destruction, or if the Premises have not been replaced or repaired to such condition within sixty (60) calendar

days, Tenant may, at its option, upon written notice to the Landlord, terminate this Lease. The rent herein required to be paid

shall abate during the period of such untenantability.

 

If

the Premises shall be damaged in part by fire or other casualty but still remains tenantable, Landlord shall repair the Premises

to substantially the same condition as prior to the damage. Landlord shall commence repair of the damage or destruction within

thirty (30) calendar days from the date of occurrence. During the period of such repairs and restoration, the Lease shall continue

in full force and effect; provided, however, that Tenant shall be required to pay the rent, herein reserved, abated by the percentage

of area destroyed as compared to the total area herein demised. Said percentage shall be established within ten (10) calendar

days following the damage.

 

Any

dispute which arises under this Article regarding the usability of the Premises and reasonable rent shall be settled by arbitration

pursuant to the provisions of Article 28.

 

    12

     

    

 

Article

17.LANDLORD’S RIGHT TO ACCESS:

 

Tenant

shall permit Landlord and its agents to enter upon the Premises at all reasonable times during business hours to examine the condition

of the same and that said inspection does not interfere adversely with the conduct of the Tenant’s daily business, except

in case of emergency, and shall permit Landlord to make such repairs as may be required.

 

Tenant

shall permit Landlord and its agents to enter upon the Tenant’s Premises at all reasonable times to make repairs or construct

improvements to the Building or the Premises for the benefit of Tenant or other occupants of the Building or Property provided

such repairs or additional improvements do not substantially impair or diminish the Tenant’s use of the Premises. Landlord

shall use its best efforts to minimize any disruption of the Tenant’s operations as a result of such entry into the Premises.

 

Tenant

shall permit Landlord, for a period of sixty (60) calendar days prior to the expiration of the Term of this Lease, to place upon

the Premises the usual “For Rent” or “For Sale” signs, and shall permit Landlord and its agents, at reasonable

times, to show the Premises to prospective tenants or purchasers.

 

Article

18.SURRENDER OF PREMISES:

 

Tenant

shall surrender and deliver up the Premises and appurtenances at the end of the Term broom clean and in as good condition and

order as they were on the Commencement Date of the Term hereof, reasonable use and ordinary wear and tear thereof and leasehold

improvements made with Landlord’s consent excepted. Tenant may remove all trade fixtures, signs, equipment, stock and trade,

and other items of a similar nature used in connection with its business, including such as may have been temporarily attached

to the realty, provided all rents stipulated to be paid hereunder have been paid and all damage to the Premises is properly repaired.

If said removal results in injury to or defacement of the Premises, Tenant shall immediately repair the Premises at its expense.

 

    13

     

    

 

Article

19.SIGN:

 

The

Tenant, at Tenant’s expense, shall have the privilege and right of placing one (1) sign on the Premises as it deems necessary

and proper in the conduct of its business subject to Landlord’s prior written approval, which approval may not be unreasonably

withheld. All signs will conform to the size, location, and quality as determined by the Landlord and as specified on Exhibit

“F”. Tenant shall comply with all laws, ordinances, plat and deed restrictions, and lawful municipal regulations

applicable to the erection, maintenance, and removal of such signs. Tenant shall be responsible for the removal of such signs

upon surrender of the Premises. Any damage to any improvements caused by such removal shall be repaired by Tenant within ten calendar

days’ written notice from Landlord at Tenant’s expense.

 

If

such damage has not been restored by Tenant within such ten (10) day notice period, Landlord may cause such damage to be repaired

and charge Tenant for the cost of such repairs.

 

Article

20.ASSIGNMENT AND SUBLETTING:

 

Tenant

shall have the unconditional right at any time during the Initial Lease Term and any Renewals thereof to sublet, assign or transfer

all or any portion of the Premises with Landlord’s prior consent, which consent shall not be unreasonably withheld, conditioned

or delayed. However, Tenant will not require Landlord’s consent to sublease or assign all or any portion of the Premises

to: a) any entity resulting from a merger or consolidation with Tenant, b) any entity succeeding to the business and assets of

Tenant, c) any affiliates of Tenant, or d) Desk Sharers (as that term will be defined in the Lease) in up to 15% of the Premises.

Landlord shall not have any rights to recapture any space sublet or assigned by Tenant; however, any net profits received from

subletting shall be split on a 50/50 basis between Landlord and Tenant.

 

Article

21.EMINENT DOMAIN:

 

If

the entire Premises, or such part thereof, as, in the Landlord’s judgment, renders the remainder unsuitable for Tenant’s

continued use, shall be taken in appropriate proceedings or by any rights of eminent domain, then this Lease shall terminate and

be utterly void from the time when possession thereof is required for public use, and such taking shall not operate as or be deemed

an eviction of Tenant or a breach of Landlord’s covenant for quiet enjoyment; but Tenant shall pay all rent due, and perform

and observe all other covenants hereof, up to the time when possession is required for public use. However, if only a part of

said Premises shall be so taken and in the parties’ mutual judgment the Premises remain suitable for Tenant’s continued

use, and if two (2) years or more of the Term hereof then remains unexpired, and if the remaining Premises can be substantially

restored within sixty (60) calendar days, then this Lease shall not be terminated. Landlord will, at its expense, restore the

Premises. The rent payable by the Tenant during the period of restoration shall be reduced by the apportioned amount. After such

restoration, the rent herein reserved shall be paid by Tenant as herein provided during the remainder of the Term hereof abated

by the percentage that the fair market value of the Premises, attributable solely to the land and improvements, has been reduced

because of such taking. Said market value immediately before and after such taking shall be determined by agreement of the parties

or, failing agreement of the parties, within thirty (30) calendar days of the effective date of such taking, by a local independent

fee appraiser selected by mutual agreement of Landlord and Tenant, which appraiser’s decision will be final and binding

on the parties. The cost of such appraiser shall be borne equally by Landlord and Tenant.

 

    14

     

    

 

Tenant

shall have the right at its sole cost and expense to assert a separate claim or join in Landlord’s claim in any condemnation

proceeding for its personal property, its improvements, loss of value in its leasehold estate, moving expenses, or any other claims

it may have.

 

Any

dispute which arises under this Article regarding the usability of the Premises after a taking and reasonable rent shall be settled

by arbitration pursuant and to the provisions of Article 28.

 

Article

22.SECURITY DEPOSIT:

 

Tenant

has deposited with Landlord a Security Deposit equal to one (1) month’s rent for the full and faithful performance of each

and every item, provision, covenant and condition of this Lease. In the event Tenant defaults in respect of any of the terms,

provisions, covenants or conditions of this Lease, including, but not limited to, the payment of rent or any other sum due from

Tenant, Landlord may use, apply or retain the whole or any part of such security for the payment of any rent or other sum in default

or for any other sum which Landlord may spend or be required to spend by reason of Tenant’s default. In the event Landlord

applies any part of the Security Deposit, Tenant shall, within five (5) days of Landlord’s demand, deposit with Landlord

the amount so applied so that Landlord shall have the full deposit on hand at all time during the Term. Should Tenant faithfully

and fully comply with all of the terms, provisions, covenants and conditions of this Lease, the Security Deposit or any balance

thereof shall be returned to Tenant or, at the option of Landlord, to the last assignee of Tenant’s interest in this Lease

at the expiration of the Term. Tenant shall not be entitled to any interest on the Security Deposit (notwithstanding that interest

may accrue on the account into which Landlord deposits the Security Deposit). In the event of a sale of the Building, Landlord

shall have the right to transfer the Security Deposit to the purchaser of the Building or to Tenant, and Landlord shall thereupon

be released by Tenant from all liability for the return of the Security Deposit; and Tenant agrees to look solely to the new owner

of the Building for the return of the Security Deposit; and it is agreed that the provisions hereof shall apply to every transfer

or assignment made of the Security Deposit to a new owner of the Building. Tenant further covenants that it will not assign or

encumber or attempt to assign or encumber the monies deposited herein as security and that neither Landlord nor its successors

or assigns shall be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.

 

    15

     

    

 

Article 23.financial statement:

 

Tenant shall supply Landlord updated annual

financial statements of Tenant as reasonably requested by Landlord.

 

Article 24.DEFAULT:

 

The following events shall be deemed to be

events of default by Tenant under this Lease:

 

a)       Tenant

shall fail to pay any installment of the rent or other charges hereby reserved and such failure shall continue for a period of

ten (10) calendar days after due written notice to Tenant. Notwithstanding the above, if Tenant shall fail to pay any installment

of rent or other charges by the dates set forth in this Lease more than twice in any calendar year, an event of default shall be

deemed to have occurred without written notice from Landlord.

 

b)       Tenant

shall fail to comply with any term, provision, or covenant of this Lease, other than the payment of rent, and shall not cure such

failure within thirty (30) calendar days after due written notice thereof to Tenant, or, if such failure shall be of such a nature

that the same cannot be completely cured within the said thirty (30) calendar days, if Tenant shall not have commenced to cure

such failure within such thirty (30) day period and shall not thereafter with reasonable diligence and good faith proceed to cure

such failure.

 

c)       Tenant

shall file a petition under any section or chapter of the National Bankruptcy Act, as amended, or under any similar law or statute

of the United States or any state thereof, or an involuntary petition in bankruptcy shall be filed against Tenant thereunder.

 

d)       A

receiver or trustee shall be appointed for all or substantially all of the assets of Tenant.

 

e)       Tenant

shall abandon or vacate the Premises during the Term of this Lease.

 

f)       Tenant

shall fail to occupy the leased Premises for fifteen (15) consecutive business days without prior written notice to Landlord of

such vacancy.

 

Upon the occurrence of any of such events

of default, Landlord shall have the right, at Landlord's election, to pursue, in addition to and cumulative of any other rights

Landlord may have at law or in equity, any one or more of the following remedies without any notice or demand whatsoever:

 

a)       Terminate

this Lease, in which event Tenant shall immediately surrender the Premises to Landlord, and if Tenant fails so to do, Landlord

may, without prejudice to any other remedy which it may have for possession or arrearage in rent, enter upon and take possession

of the Premises and expel or remove Tenant and any other person who may be occupying said Premises or any part thereof, without

being liable for prosecution or any claim of damages therefor; and Tenant agrees to pay to Landlord on demand the amount of all

loss and damage which Landlord may suffer by reason of such termination.

 

    16

     

    

 

b)       Enter

upon and take possession of the Premises and expel or remove Tenant and any other person who may be occupying the Premises or any

part thereof without being liable for prosecution or any claim for damages therefor, and relet the Premises and receive the rent

thereof; crediting Tenant therefor; and Tenant agrees to pay to Landlord on demand any deficiency that may arise by reason of such

reletting.

 

c)       Enter

upon the Premises without being liable for prosecution of any claim for damages therefor, and to do whatever Tenant is obligated

to do under the Terms of this Lease, and Tenant agrees to reimburse Landlord on demand for any expense which Landlord may incur

in thus effecting compliance with Tenant's obligations under the Lease, and Tenant further agrees that Landlord shall not be liable

for any damages resulting to Tenant from such action, whether caused by the negligence of Landlord or otherwise.

 

d)       Require

all rental payments by "subtenants", including within that term the third parties occupying various portions of the Premises

under the terms of Lease agreements with Tenant, as primary lessor or as sublessor, which would otherwise be paid to Tenant to

be paid directly to Landlord and apply such rentals so paid to or collected by Landlord against any rents or other charges due

to Landlord by Tenant hereunder. No direct collection by Landlord from such "subtenants" shall release Tenant from the

further performance of Tenant's obligations hereunder.

 

e)       Declare

all unpaid rental payments for the Term or renewal term of this Lease to be due and payable immediately and proceed to collect

the same.

 

f)       If

Tenant shall default in the payment of the rent herein reserved or in the payment of any other sums due hereunder by Tenant, Tenant

hereby authorizes and empowers any Prothonotary or attorney of any court of record to appear for Tenant in any and all actions

which may be brought for said rent and/or said other sums and/or to sign for Tenant an agreement for entering in any competent

court an amicable action or actions for the recovery of said rental and/or other sums; and, in said suits or in said amicable action

or actions, to confess judgment against Tenant for all or any part of said rental and/or said rental and/or said other sums, and

for interest and costs, together with any attorney’s commission for collection of ten percent (10%). Such authority shall

not be exhausted by one exercise thereof, but judgment may be confessed as aforesaid from time to time as often as any of said

rental and/or other sums shall fall due or be in arrears, and such powers may be exercised as well after the expiration of the

initial term of this Lease and/or during any extended or renewal term of this Lease and/or after the expiration of any extended

or renewal term of this Lease.

 

g)       When

this Lease and the term or any extension or renewal thereof shall have been terminated on account of any default by Tenant

hereunder, and also when the term hereby created or any extension or renewal thereof shall have expired, it shall be lawful

for any attorney of any court of record to appear as attorney for Tenant, as well as for all persons claiming by, through or

under Tenant, and to sign an agreement for entering in any competent court an amicable action in ejectment against Tenant and

all persons claiming by, through or under Tenant and therein confess judgment for recovery by Landlord of possession of the

Premises, for which this Lease shall be its sufficient warrant; thereupon, if Landlord so desires, an appropriate writ of

possession may issue forthwith without any prior writ or proceeding whatsoever, and provided that, if for any reason after

such action shall have been commenced, it shall be determined that possession of the Premises remain in or be restored to

Tenant, Landlord shall have the right for the same default and upon any subsequent default or defaults, or upon the

termination of this Lease or Tenant’s right of possession as herein before set forth, to bring one or more further

amicable action or actions as herein before set forth to recover possession of the Premises as herein before provided.

 

    17

     

    

 

h)       In

any amicable action of ejectment and/or for rent and/or other sums brought hereon, Landlord shall first cause to be filed in such

action an affidavit made by Landlord or someone acting for Landlord, setting forth the facts necessary to authorize the entry of

judgment, of which facts such affidavit shall be prima facie evidence, and, if a true copy of this Lease (and of the truth of the

copy such affidavit shall be sufficient evidence) shall be filed in such suit, action or actions, it shall not be necessary to

file the original as a warrant of attorney, any rule of court, custom or practice to the contrary notwithstanding.

 

Pursuit of any of the foregoing remedies

shall not preclude pursuit of any of the other remedies herein provided or any other remedies provided by law or equity, nor shall

pursuit of any remedy herein provided constitute a forfeiture or waiver of any rent due to Landlord hereunder or of any damages

accruing to Landlord by reason of the violation of any of the terms, provisions and covenants herein contained. Failure by Landlord

to enforce one or more of the remedies herein provided upon an event of default shall not be deemed or construed to constitute

a waiver of such default or of any other violation or breach of any of the terms, provisions and covenants herein contained.No

right or remedy herein conferred upon or reserved to Landlord is intended to be exclusive of any other right or remedy herein or

by law provided, but each shall be cumulative and in addition to every other right or remedy given herein or now or hereafter existing

at law or in equity or by statute.

 

Article 25.SERVICE OF NOTICE:

 

Every notice, approval, consent or other

communication authorized or required by this Lease shall be in writing and sent by certified or registered mail to the other party

at the following address or at such other address as may be designated by notice in writing given from time to time and shall be

deemed given as of the date of mailing.

 

    18

     

    

 

If notice is to be given to Landlord, it

shall be given at the following address:

 

UPPER CHESAPEAKE

FLEX ONE, LLC 

Attn: Gary A.

Stewart, Jr. 

950 Smile Way 

York, PA 17404

 

If notice is to be given to Tenant, it shall

be given at the following address:

 

CLENE

NANOMEDICINE, INC. 

3165 East Millrock Drive,

Suite 325

Salt lake City, UT 84121

 

Article 26.QUIET ENJOYMENT:

 

Landlord hereby covenants and agrees that

Tenant shall have the peaceable possession and enjoyment of the Premises throughout the Term of this Lease Agreement without any

hindrance, disturbance, or ejectment by Landlord, its successors and assigns, except as otherwise provided in this Lease Agreement

or as a result of a breach of said Lease. Landlord represents and warrants that it has full right and authority to enter into and

perform its obligation as Landlord under this Lease for the full Term hereof.

 

Article 27.SUBORDINATION

AND NON-DISTURBANCE AND ESTOPPEL CERTIFICATE:

 

This Lease and all of the rights of Tenant

hereunder, except Tenant's property or trade fixtures, shall be subject and subordinate to the lien of any mortgage or mortgages

now or hereinafter placed on the Premises or any part thereof, and any and all renewals, modifications, replacements, extensions,

or substitutions of any such mortgage or mortgages, all of which are hereinafter termed the "Mortgage" or "Mortgages".

Tenant agrees to attorn to any receiver appointed for the Property in connection with any Mortgage, to the holder of any Mortgage

(a “Mortgagee”) who acquires possession of the Property, and to any Mortgagee or other person who succeeds to the interest

of Landlord under this Lease or otherwise acquires title to the Property by foreclosure of a Mortgage or otherwise. Landlord represents,

warrants, and covenants that, so long as Tenant is not in default under this Lease Agreement, or any renewal thereof, no foreclosure

of the lien of said mortgage or any other proceeding with respect thereof shall divest, impair, modify, abrogate or otherwise adversely

affect any interest or rights whatsoever of Tenant under this Lease Agreement. Tenant, if requested by Landlord, shall execute

any instruments in recordable form as may be reasonably required by Landlord in order to confirm or effect the subordination or

priority of this Lease, as the case may be, and the attornment of Tenant to future landlords in accordance with the terms of this

Article.

 

From time to time upon the reasonable request

of Landlord, upon ten (10) business days notice, Tenant shall execute and deliver to Landlord a statement provided by Landlord

to Tenant indicating the commencement date of the Lease, the termination date of the Lease, Landlord’s compliance with the

terms of the Lease and such other items regarding the terms of the Lease that may be reasonably requested by Landlord.

 

    19

     

    

 

Article 28.JURISDICTION

FOR DISPUTES:

 

Any disputes arising out of or related to

this Agreement shall be brought before the appropriate state courts of Harford County, Maryland, and all parties hereto submit

to the jurisdiction of that Court for such purpose. Should any party hereto be required to take legal action to enforce its rights

hereunder and prevail in that legal action, then that party shall be entitled to the recovery of all costs incurred, including,

but not limited to, filing fees and reasonable attorney’s fees. ALL PARTIES HERETO WAIVE THE RIGHT TO TRIAL BY JURY.

 

Notwithstanding the above, in the event of

a dispute between the parties (excluding a dispute requiring an injunction or another action in equity), the parties hereto agree

to submit to non-binding mediation in Aberdeen, Maryland with an independent mediator, said mediation to be held within sixty (60)

days of one party delivering written notice of a dispute to all other concerned parties, and the parties agree to make a good faith

effort to resolve the dispute based on the recommendation(s) of the mediator. The parties hereby agree to agree on an acceptable

independent mediator within thirty (30) days of receiving notice of a dispute, and in the event that they cannot agree on an acceptable

independent mediator within thirty (30) days of receiving notice of a dispute, parties shall each select a person independent from

each of the respective organizations, and those two selected independent persons shall select the independent mediator.

 

Article 29.HOLD-OVER:

 

The initial three (3) months holdover following

the expiration of the lease term will be at 125% of the last month’s rental obligation, any additional holdover will be at

150% of the last month’s rental obligation. During the initial three (3) months of holdover, Tenant shall not be liable for

any damages either direct of consequential related to holdover.

 

Article 30.LANDLORD'S CONSENT:

 

Wherever and whenever the consent or approval

of Landlord is required hereunder, such consent or approval shall not be unreasonably withheld.

 

Article 31.GOVERNING LAW:

 

This Lease and the performance thereof shall

be governed, interpreted, construed, and regulated by the laws of the State of Maryland.

 

    20

     

    

 

Article 32.PARTIAL INVALIDITY:

 

If any term, covenant, condition, or provisions

of this Lease, or the application thereof, to any person or circumstances, shall at any time or to any extent be invalid or unenforceable,

the remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as to which

it is held invalid or unenforceable, shall not be affected thereby, and each term, covenant, condition, or provisions of this Lease

shall be valid and be enforced to the fullest extent permitted by law.

 

Article 33.INTERPRETATION:

 

Wherever in this Lease the singular number

is used, the same shall include the plural, and the masculine gender shall include the feminine and neuter genders, and vice versa,

as context shall require. The section headings used herein are for reference and convenience only and shall not alter the interpretation

thereof. This Lease may be executed in several counterparts, each of which shall be an original, but all of which shall constitute

one and the same instrument.

 

Article 34.ENTIRE AGREEMENT:

 

No oral statement or prior written agreement

relating to this matter shall have any force or effect. Tenant and Landlord agree that neither is relying on any representations

or agreements of the other except for those contained in this Lease. This Lease shall not be modified or canceled except by writing

subscribed by all parties.

 

Article 35.PARTIES:

 

Except as otherwise expressly provided herein,

the covenants, conditions, and agreements contained in this Lease shall bind and inure to the benefit of Landlord and Tenant and

their respective successors and assigns.

 

Article 36.BROKER:

 

Both parties represent

and warrant that neither of them has dealt with a broker or agent in connection with this Lease, except for Colliers International

(“Colliers”) and G&E Real Estate, Inc. d/b/a Newmark Grubb Knight Frank (“NGKF”). The commission due

Colliers and NGKF shall be paid pursuant to a separate agreement. Both parties covenant and agree to save the other harmless from

any claim to a fee or commission by any brokers or agents, due or alleged to be due by reason of acts of either party.

 

    21

     

    

 

IN WITNESS WHEREOF, the parties hereto

have hereunder set their hands and seals the day and year first above written.

 

	 	 	LANDLORD:
	 	 	UPPER CHESAPEAKE FLEX ONE, LLC
	 	 	By:  Sunrise Holdings, Inc.,general partner
	 	 	of Sunrise Holdings L.P., the
	 	 	sole member
	 	 	 	 
	/s/ Mark Harrold	 	By:	/s/ Gary A. Stewart, Jr.
	Witness Signature	 	 	Title: Vice President
	 	 	 	 
	Mark Harrold	 	 	 
	Print Name	 	 	 
	 	 	 	 
	 	 	TENANT:
	 	 	 	 
	 	 	CLENE NANOMEDICINE, INC.
	 	 	 	 
	/s/ Matthew Gardner	 	By:	/s/ Rob Etherington
	Witness Signature	 	 	Title: CEO and President
	 	 	 	 
	Matthew Gardner	 	 	 
	Print Name	 	 	 

 

    22

     

    

 

LIST OF EXHIBITS

 

Exhibit A - Commencement Letter

 

Exhibit B - Operating Expense Responsibility Table

 

Exhibit C - Emergency List

 

Exhibit D - Site Plan

 

Exhibit E - Floor Plan

 

Exhibit F - Sign Requirements

 

Exhibit G - Scope of Work

 

Exhibit H – Construction Schedule

 

Exhibit I – Clean Room

 

    23

     

    

 

EXHIBIT “A”

 

Date:

 

		RE:	Commencement of Lease Dated ________________________between UPPER CHESAPEAKE FLEX I, LLC and Clene

                                                                 Nanomedicine, Inc.

 

Dear Tenant:

 

We are writing to welcome you to your

new 14,716 sq. ft. space at Principio Flex Center, Cecil Technology Campus, Principio Business Park, North East,

Maryland. This letter will serve to establish the exact commencement and expiration dates of your Lease.

 

SECTION I. TERM:

 

Lease

Commencement Date:November 1, 2016

 

Lease Expiration

Date:October 31, 2026

 

Rent Commencement

Date:November 1, 2016

 

CAM Commencement

Date:November 1, 2016

 

You have the Following Lease

Renewal Options:

 

Two (2) five

(5) year renewals

 

SECTION

2.RENT:

 

The Base Rent for the term of this Lease

shall be payable as follows:

 

	Period	 	Annual Base Rent	 	Monthly Base Rent
	Year 1	 	$220,740.00	 	$18,395.00
	Year 2	 	$226,184.92	 	$18,848.74
	Year 3	 	$231,924.16	 	$19,327.01
	Year 4	 	$237,663.40	 	$19,805.28
	Year 5	 	$243,696.96	 	$20,308.08
	Year 6	 	$249,730.52	 	$20,810.88
	Year 7	 	$255,911.24	 	$21,325.94
	Year 8	 	$262,386.28	 	21,865.52
	Year 9	 	$269,008.48	 	$22,417.37
	Year 10	 	$275,630.68	 	$22,969.22

 

    24

     

    

 

Commencement Letter 

Dated ___________ 

Page -2-

  

For the first month’s rent, please

remit immediately the following based on a pro rata calculation of a 30-day month:

 

	Rent	 	$	18,395.00	 

 

	CAM	 	$	3,838.42	 

 

	TOTAL	 	$	22,233.42	 

 

Therefore, your rent and CAM payments are due the first of each

month and are as stated in the Lease. No invoices will be sent to you. Please make checks payable to:

 

PRINCIPIO FLEX

BUILDING A 

950 SMILE WAY 

YORK, PA 17404

 

SECTION 3. TENANT INFORMATION:

 

In order to facilitate a smooth transition

into the Premises, the following items must also be addressed:

 

		1.	Responsibility for trash disposal is addressed in the Exhibit “B” outline of financial responsibility.

 

		2.	Exhibit “B” indicates the division of responsibility for the cost of various operating costs with respect to the

property you are leasing from us. This Exhibit “B” is based on the terms of the Lease and will be used as a guideline

for determining whether the costs incurred are your responsibility as Tenant or our responsibility as Landlord. Where applicable,

we have indicated if the cost if paid for by Landlord is to be included in Common Area Maintenance or operating costs that are

billed to you as Tenant. If you are not in agreement with Exhibit “B”, please contact me immediately.

 

		3.	In accordance with the terms specified in the Lease agreement, please send a certificate of insurance to my attention at our

offices as soon as possible.

 

We have summarized some of the key terms

of the Lease in this letter in order to provide you with a quick reference. If there is a discrepancy between this letter and the

Lease Agreement, the Lease Agreement shall govern.

 

Again, we would like to welcome you to

your new suite. If you have any questions, please feel free to give me a call at717-771-3576.

 

Sincerely yours,

  

Ryan Woerner

 

Enclosure 

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

 

My signature indicates that I have read

and agree with the above commencement information.

 

 

 

Signature          Date

 

    25

     

    

 

EXHIBIT “B”

 

The following table delineates the financial responsibility

between Landlord and Tenant for the maintenance, repairs and alterations of all grounds and buildings of the Premises1

 

	 	Landlord	Tenant
	Maintenance Items:	 	 
	  Roof and roof membrane	X	 
	  Exterior walls	X	 
	  Interior weight bearing walls	X	 
	  Structural floor system	X	 
	  Foundations	X	 
	  Paved parking areas	X	 
	  Heating, ventilation and air conditioning	X	CAM
	  Electrical system	X	CAM
	  Plumbing	X	CAM
	  Windows	X	CAM
	  Curbs and bumpers	X	CAM
	Snow and ice removal  - parking lots	X	CAM
	Snow and ice removal - sidewalks	X	CAM
	Mowing	X	CAM
	Parking lot sweeping	X	CAM
	Parking lot striping	X	CAM
	Exterior landscaping	X	CAM
	Real estate taxes	X	CAM
	Preventive Maintenance Contracts on HVAC 	X	CAM
	Resurfacing and sealing parking lots	X	 
	Property Management	X	CAM
	Obtaining property and fire insurance on Property and general liability insurance for Landlord relating to Property	X	CAM
	Exterior doors	X	CAM
	Interior doors	 	X
	Exterior lighting	X	CAM
	Cleaning of interior and exterior windows	 	X
	Replacement of light bulbs, tubes, ballasts and starters	 	X
	Pest control-common areas	X	CAM
	Maintenance of fire extinguishers	 	X
	Tenant's trash removal (from outside dumpsters)	 	X
	Janitorial service within Tenant’s space	 	X
	Clogged toilets and other plumbing fixtures within Tenant's space	 	X
	Sign maintenance—Tenant’s space	 	X
	Telephone and communication systems	 	X
	Obtaining insurance on contents of Premises	 	X

 

1 If repairs and maintenance performed by Landlord

at Landlord's expense are found to have been necessary due to the negligence of Tenant, its employees, agents or customers, Tenant

shall reimburse Landlord for the cost of such repairs or maintenance.

 

CAM indicates that tenant will be billed for it’s pro

rata share of the cost of this Operating Expense item under the terms specified in the Lease.

 

    26

     

    

 

EXHIBIT “C”

 

 

 

OWNER:UPPER CHESAPEAKE FLEX 

 

OWNERS ADDRESS:        950

Smile Way 

York, PA 17404

 

OWNERS PHONE #:

 

 

TENANT:

 

TENANT ADDRESS:___________________________________________________

  

TENANT PHONE #:                               TENANT

FAX #:                                

 

TENANT EMAIL ADDRESS:                                

 

 

 

HOURS OF OPERATION:

 

SUN______________ WED____________SAT

____________ 

 

MON_____________ THR____________

 

TUE______________ FRI ____________

  

SECURITY PROVIDER:TELEPHONE #________________________

 

SECURITY CODE # ___________________

 

 

 

EMERGENCY RESPONDER

 

PHONE NUMBERS

 

	CONTACT PERSONS	 	 	BUSINESS	 	 	 	HOME	 	 	 	MOBILE	 	 	 	PAGE	 
	1.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

 

PLEASE INDICATE

THE NAME AND ADDRESS THAT YOU NEED NOTICES OR ANY OTHER COMMUNICATION SENT TO (IF OTHER THAN YOUR SUITE ADDRESS AS LISTED ABOVE):

 

NAME: ___________________

 

ADDRESS: ___________________

  

PLEASE RETURN THIS FORM TO:            Ryan

Woernerat the owners address above. 

 

    27

     

    

 

EXHIBIT “D”

 

SITE PLAN

 

    28

     

    

 

EXHIBIT “E”

 

FLOOR PLAN

 

 

 

    29

     

    

 

EXHIBIT “F”

 

SIGN REQUIREMENTS

  

		1.	Size and type of sign shall be in conformance with Principio Business P Park’s Covenants and Restrictions, as well as

any and all governmental laws and regulations.

 

		2.	Tenant shall be responsible for securing the permits necessary for sign installation.

 

		3.	Tenant shall submit drawings and sign specifications to Landlord for Landlord’s approval prior to the installation of

any signs on the exterior of the building or property. Tenant’s sign installer must obtain approval from Landlord for method

of attaching sign to the building.

 

    30

     

    

 

EXHIBIT “G”

 

SCOPE OF WORK 

 

    31

     

    

 

EXHIBIT “H”

 

CONSTRUCTION SCHEDULE

 

    32

     

    

 

EXHIBIT “I”

 

CLEAN ROOM

 

    33

     

    

 

FIRST AMENDMENT OF LEASE AGREEMENT

 

THIS FIRST AMENDMENT

OF LEASE AGREEMENT (“Amendment”) dated this 6th day of January, 2017, is made and entered into by and between

UPPER CHESAPEAKE FLEX ONE, LLC (hereinafter referred to as “Landlord”) and CLENE NANOMEDICINE, INC.,

hereinafter referred to as “Tenant”, upon the following terms and conditions:

 

WITNESSETH:

 

WHEREAS, Landlord

and Tenant executed and delivered a Lease Agreement dated May 9,2016 for 14,716 square feet of commercial space located at Principio

Flex Center, 500 Principio Parkway, Cecil Technology Campus, Perryville MD (hereinafter referred to as the “Lease Agreement”);

and

 

WHEREAS, Landlord

and Tenant desire to amend the Lease Agreement as set forth herein.

 

NOW, THEREFORE,

in consideration of the mutual covenants contained herein, as well as for other good and valuable consideration, the receipt and

adequacy of which is hereby acknowledged, and intending to belegally bound hereby, Landlord and Tenant hereby agree as follows:

 

1.       Article

3 “Commencement Date” shall be amended in its entirety as follows:

 

“ARTICLE 3. COMMENCEMENT

DATE:

 

The Commencement

Date of this Lease Agreement shall be January 1, 2017. Landlord shall send Tenant a commencement letter in substantially the same

form as shown on Exhibit “A” attached. Tenant shall sign such commencement letter and return it to Landlord

indicating its agreement with the terms of such commencement letter. Notwithstanding the above, if there are any discrepancies

between such commencement letter and this Lease, this Lease shall govern, except the Commencement Date shall be as set forth in

such commencement letter.”

 

    34

     

    

 

2.        Article

4A “Rent” shall be amended in its entirety as follows:

 

“ARTICLE 4A. RENT:

 

The Tenant,

in consideration of the Lease, covenants and agrees to pay to the Landlord the annual rent for the Premises as set forth

below (hereinafter referred to as the "Base Rent") payable on the first day of each and every calendar month during

the Term, in advance, in monthly installments, except that on Wednesday, December 28,2016, Tenant shall pay to Landlord the

lump sum of Four Hundred Forty-Six Thousand Nine Hundred Thirty-Four and 92/100 ($446,934.92) Dollars, which represents Year

1 and Year 2 of the Base Rent. The Tenant shall pay to Landlord on January 31,2019, the lump sum of Two Hundred Thirty-One

Thousand Nine Hundred Twenty-Four and 16/100 ($231,924.16) Dollars, which represents Year 3 of the Base Rent. Thereafter, the

Base Rent for the remainder of the Term shall be payableas follows:

 

	Period	 	Annual Base Rent	 	Monthly Base Rent
	Year 4	 	$237,663.40	 	$19,805.28
	Year 5	 	$243,696.96	 	$20,308.08
	Year 6	 	$249,730.52	 	$20,810.88
	Year 7	 	$255,911.24	 	$21,325.94
	Year 8	 	$262,386.28	 	$21,865.52
	Year 9	 	$269,008.48	 	$22,417.37
	Year 10	 	$275,630.68	 	$22,969.22

 

The annual rent is payable in advance, in the equal

monthly installments on the first day of each and every calendar month during the Term hereof, except that the rental payment for

any fractional calendar month at the commencement of the Lease Term shall be pro-rated based on the actual number of calendar days

in the month in which the Commencement Date occurs. Any pro-rated rent for such fractional month shall be reflected in the first

full calendar month of the Lease Term."

 

3.       During

Years 1,2 and 3 of the Lease Agreement, Landlord shall invoice Tenant monthly and Tenant shall pay monthly, the Estimated Operating

Expenses.

 

4.       Any

terms that are capitalized herein that are not defined herein shall have the same meaning as those defined terms in the Lease Agreement.

 

    35

     

    

 

5.       The

balance of the terms of the Lease Agreement that are not amended by this Amendment shall remain valid and bind and in full

force and effect. In the event of a conflict between the Lease Agreement and this Amendment, this Amendment shall

control.

 

IN WITNESS WHEREOF, the parties hereto have

executed this Amendment on the day and year first above written.

 

 

 

36

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