Document:

Exhibit
10.1

 

SUBSCRIPTION
AGREEMENT

AND
INVESTMENT LETTER

 

Date:
July 23, 2020

 

To
the Board of Directors

J H Darbie & Co., Inc.

40
Wall Street 30th Floor

New
York, New York 10005

Attention: Xavier Vicuna

 

	Re:	Subscription
    to Purchase Units of Mateon Therapeutics, Inc.

 

Ladies
and Gentlemen:

 

This
Subscription Agreement (this “Subscription Agreement”) is being delivered to the purchaser identified on the
signature page to this Agreement (the “Undersigned” or “Subscriber”) in connection with
its investment in the securities of Mateon Therapeutics, Inc., a Delaware corporation (the “Company”). The
Company is conducting a private placement (the “Offering”) of a minimum of 40 and a maximum of 100 Units (the
“Units”), each of which consists of 25,000 shares of the Common Stock of the Company’s wholly owned subsidiary
called EdgePoint AI, Inc., a Delaware corporation (“EdgePoint”), and one note issued by the Company (a “Note”
and collectively, the “Notes”), in the principal amount of $25,000.00, bearing annual interest at the rate
of 16%. Each Note will be convertible into up to 25,000 shares of EdgePoint’s Common Stock (conversion price $1.00 per share)
or up to 138,889 shares of Mateon’s Common Stock (conversion price approximately $0.18 per share), subject to applicable
anti dilution provisions. Each Unit will also consist of 100,000 (the “Warrants”), 50,000 Warrants (the “EdgePoint
Warrants”) each to purchase one share of EdgePoint’s Common Stock at $1.00 per share, and 50,000 Warrants (the “Company
Warrants”) each to purchase one share of Mateon’s Common Stock at $0.20 per share. The the exercise price of each
Warrant will be subject to applicable anti dilution provisions set forth therein and, except as set forth in the next succeeding
sentence, each Warrant will be exercisable for three years after issuance. Each time EdgePoint Warrants are exercised a comparable
number of Company Warrants, or parts thereof, will terminate and each time Company Warrants are exercised a comparable number
of EdgePoint Warrants, or parts thereof, will terminate.

 

This
will acknowledge that the Subscriber hereby agrees to irrevocably purchase from the Company_Unit(s) as set forth in the Subscription
Signature Section below in accordance with the terms of this Subscription Agreement and Investment Letter (the “Subscription
Agreement”) and pursuant to the terms and conditions set forth in the Confidential Offering Memorandum dated July
23, 2020, including Appendices attached thereto (the “Memorandum”).

 

    	Appendix H, Page 1

     

    

 

 1. Terms of the Offering.

 

The
Offering is being made on a “best efforts, all or none” basis with respect to the first 40 Units, and, thereafter,
on a “best efforts only” basis until the remaining 60 Units are sold, the Company terminates the Offering, which it
can do in its complete discretion at any time, or the Offering Period, as hereinafter defined, expires, whichever occurs first
(the “Termination Date”). Unless at least 40 Units (the “Minimum”) are sold on or before June 30,
2020, or September 30, 2020 if extended by the Company and the Placement Agent (the “Offering Period”) and
paid for with collected funds received in escrow as noted in the next succeeding paragraph within two Business Days thereafter,
the Offering will terminate and all funds collected from subscribers will be promptly returned to them without interest thereon
or deduction therefrom. A “Business Day” means any day except Saturday, Sunday and any day that shall be a federal
legal holiday or a day on which banking institutions in the State of New York are authorized or required by law or other governmental
action to close. Persons affiliated and/or otherwise related to the Company may purchase Units in the Offering and the Units purchased
by them will be included in the number of Units needed to satisfy the Minimum. The Placement Agent and persons affiliated with
it also may purchase Units in the Offering but the Units purchased by them will not be included in the number of Units needed
to satisfy the Minimum.

 

Because
the Minimum of forty Units must be sold in order to make the Offering effective, all funds received will be held in escrow
with Texas Capital Bank, N.A. (the “Escrow Agent”). No funds will be remitted to the Company until at
least forty Units have been sold and paid for. Thereafter, funds will continue to be held in escrow and released to the
Company at each subsequent closing, which shall be at the discretion of the Company and the Placement Agent and which shall
occur on the earlier of June 30, 2020, which date may be extended to September 30, 2020, by agreement between the Company and
the Placement Agent, or when all 100 Units on an accumulative basis have been sold and paid for (each a
“Closing” and, collectively, the “Closings”) against delivery of the appropriate number
of subscribed Units. Each Closing of the purchase and sale of the Units following acceptance by the Company of subscriptions,
as evidenced by the Company’s execution of the applicable Subscription Agreements, shall take place at the Placement
Agent’s offices, or such other place as the Placement Agent and the Company shall determine, on such date as the
Placement Agent and the Company shall determine. The date on which a Closing is consummated is the “Closing
Date.”

 

The
Offering is being made only to “accredited investors” as defined under Regulation D under the Securities Act and up
to 35 non-accredited investors. It is being conducted pursuant to the exemption from the registration provisions of the Securities
Act set forth in Section 4(a)(2) thereof and applicable Rules and Regulations promulgated thereunder, including Rule 506(b) of
Regulation D. Section 4(a)(2) requires, among other things, that each purchaser acquire the Units, and Notes, Common Stock and
Warrants which are a part thereof, and the Common Stock underlying the Notes and the Warrants (collectively, the “Underlying
Securities”) with investment intent and not with a view to distribution. The Units being offered hereby and the Underlying
Securities will be “restricted securities” under the Securities Act and may not be resold publicly except in compliance
with Rule 144 promulgated thereunder or unless subsequently registered.

 

Although
the Common Stock is traded on the OTCQB Marketplace under the symbol “MATN,” there is no public market for the Units,
the Notes, EdgePoint’s Common Stock or the Warrants and, except for EdgePoint’s Common Stock, it is not anticipated
that a public trading market for them will ever develop.

 

    	Appendix H, Page 2

     

    

 

As
set forth above, the Company has agreed to file a registration statement with the Commission covering the Underlying Securities,
but cannot assure that such a filing will be made or, if it is, that it will be declared effective by the Commission. In the event,
however, that the registration statement is declared effective, the Company cannot assure that the Underlying Securities will
be readily tradable.

 

ACCORDINGLY,
THE UNDERSIGNED UNDERSTANDS AND ACKNOWLEDGES THAT, EVEN AFTER THE TERMINATION OF THE RESALE RESTRICTION PERIODS ON THE UNITS AND
THE UNDERLYING SECURITIES, AND/OR THE UNDERLYING SECURITIES ARE REGISTERED, SHE/HE MAY BE UNABLE TO RESELL THESE SECURITIES FOR
A SIGNIFICANT PERIOD OF TIME, IF EVER.

 

Execution
of this Subscription Agreement shall constitute an offer by the Undersigned to purchase the number of Units set forth in the Subscription
Signature Section below on the terms specified herein. If the Undersigned’s offer is accepted, the Company will execute
a copy of the Signature Section and return it to the Undersigned.

 

 2. The Placement Agent.

 

The
Placement Agent, a member firm of the Financial Industry Regulatory Authority (“FINRA”), is acting as the exclusive
placement agent for the Company in placing this Offering. If all of the Units are sold, the Company will receive gross proceeds
of $5,000,000 less the expenses of this Offering. Management estimates that these expenses, including the fee and expense allowance
payable to the Placement Agent described below, will be approximately $10,000.

 

The
Placement Agent will receive a fee equal to 10%, due diligence fee of up to $150,000, and will also reimburse the Placement
Agent for all reasonable out-of-pocket expenses incurred by Agent in performing its services hereunder, including reasonable
attorney’s fees incurred by the Placement Agent in connection with a Placement in an amount not to exceed $10,000. The
Company will also grant to the Placement Agent, for nominal consideration, a warrant, exercisable over a five-year period
commencing on the final Closing Date of the Offering, to purchase such number of Units, including the Notes, the EdgePoint
Common Stock and the Warrants included therein, as shall equal 10% of the number of Units sold in the Offering at an exercise
price equal to 100% of the Unit offering price.

 

The
undersigned understands that, except as may be required by applicable regulations of FINRA, the Placement Agent has not independently
verified the information provided to her/him with respect to the Company. Accordingly, there is no representation by the Placement
Agent as to the completeness or accuracy of such information.

 

    	Appendix H, Page 3

     

    

 

 3. Suitability Requirements; Transferability.

 

An
investment in the Company involves a high degree of risk and is suitable only for those qualified persons who have substantial
financial resources and who, alone or together with their purchaser representatives (see the definition below), have such knowledge
and experience in financial and business matters that they are capable of evaluating the merits and risks of purchasing the Units.
Satisfaction of these suitability standards by a person does not represent a determination by the Company that the Units are a
suitable investment for such person. Each person must consult such person’s own professional advisors in order to determine
the suitability of the investment. The Company may make or cause to be made such further inquiry and obtain such additional information
as it deems appropriate with regard to the suitability of prospective investors.

 

The
Undersigned must complete, sign and return a Purchaser Questionnaire to the Company in order to assist it in determining whether
the Undersigned is an accredited or sophisticated investor and satisfies the minimum suitability requirements. The form of Purchaser
Questionnaire is attached to the Confidential Offering Memorandum as Appendix E.

 

The
term “purchaser representative” means any person who satisfies all of the following conditions or who the Company
reasonably believes satisfies all of the following conditions:

 

(a) she/he
is not an affiliate, director, officer or other employee of the Company or beneficial owner of 10% or more of any class of the
Company’s equity securities, except where the purchaser is:

 

(i) A
relative of the purchaser representative by blood, marriage or adoption and not more remote than a first cousin;

 

(ii) A
trust or estate in which the purchaser representative and any persons related to her/him as specified in Paragraph (h)(1)(i) or
(h)(1)(iii) of Rule 501 under Regulation D, collectively have more than 50 percent of the beneficial interest (excluding contingent
interest) or of which the purchaser representative serves as trustee, executor, or in any similar capacity; or

 

(iii) A
corporation or other organization of which the purchaser representative and any persons related to her/him as specified in Paragraph
(h)(1)(i) or (h)(1)(ii) of Rule 501, collectively are the beneficial owners of more than 50 percent of the equity securities (excluding
directors’ qualifying shares) or equity interests;

 

(b) she/he
has such knowledge and experience in financial and business matters that she/he is capable of evaluating, alone, or together with
other purchaser representatives of the purchaser or together with the purchaser, the merits and risks of the prospective investment;

 

(c) she/he
is acknowledged by the purchaser in writing, during the course of the transaction, to be her/his purchaser representative in connection
with evaluating the merits and risks of the prospective investment; and

 

(d) she/he
discloses to the purchaser in writing prior to the acknowledgment specified in Paragraph (h)(3) of Rule 501, any material relationship
between herself/himself or her/his affiliates and the Company or its affiliates that then exists, that is mutually understood
to be contemplated or that has existed at any time during the previous two years and any compensation received or to be received
as a result of such relationship.

 

    	Appendix H, Page 4

     

    

 

If
the Undersigned is using a purchaser representative, the purchaser representative must complete, execute and return a Purchaser
Representative’s Questionnaire to the Company. A form of Purchaser Representative’s Questionnaire is attached to the
Confidential Offering Memorandum as Appendix F.

 

 4. Subscription Procedure and Effect.

 

The
subscription price shall be payable upon execution of this Subscription Agreement in accordance with the terms set forth herein.
In order to subscribe for the Units, a qualified prospective investor must deliver the following to the Placement Agent, at 40
Wall Street, 30th Floor, Suite 3002, New York, New York 10005, Attention: Xavier Vicuna.

 

	 	●	an executed copy
    of the Subscription Signature Section of this Subscription Agreement, with all blanks properly completed, indicating all of
    the Units subscribed for;
	 	 	 
	 	●	an executed copy
    of the Registration Rights Agreement;
	 	 	 
	 	●	an executed copy
    of a Purchaser Questionnaire, with all questions properly completed;
	 	 	 
	 	●	if applicable, an
    executed copy of a Purchaser Representative Questionnaire, with all questions properly completed;

 

A
certified check, in the amount of the purchase price for the Units to be purchased, payable to Texas Capital Bank N.A. for “Mateon
Therapeutics, Inc.” Wired funds are also acceptable. The Company would prefer that the funds be wired. Money Orders are
not an acceptable form of payment. The wiring instructions are:

 

Texas
Capital Bank, N. A.

2000
McKinney Ave. Dallas, Texas 75201 ABA: 111017979

Account
Name: TCB Escrow and Specialized Services as Escrow Agent for Mateon Therapeutics/JH Darbie & Co.

Account
Number: 7700001360

Comment:
FBO [insert purchaser’s name]

 

On
delivery of the executed Subscription Signature Section of this Subscription Agreement, the Subscriber will become bound by its
terms. Unless otherwise required by applicable state securities laws, the Subscriber may not withdraw or revoke her/his executed
Subscription Agreement in whole or in part without the consent of the Company.

 

The
Company may accept this Subscription Agreement at any time on or before the Termination Date. This Subscription Agreement is not
binding on the Company until it is accepted as evidenced by the signature of an officer of the Company. The Company, in its sole
discretion, has the right to accept or reject this Subscription Agreement in whole or in part and accept Subscription Agreements
other than in the order received. In the event of rejection of this Subscription Agreement, or in the event that, for any reason,
none of the Units are sold (in which case this Subscription Agreement will be deemed to be rejected), the Company will thereafter
promptly return or cause to be returned to the Subscriber by mail, a check in the amount paid by the Subscriber in this Offering,
without interest thereon or deduction therefrom for expenses or otherwise, and this Subscription Agreement shall thereafter have
no further force or effect except for the provisions of Section 7.

 

    	Appendix H, Page 5

     

    

 

5. T he Company’s Representations, Warranties and Covenants. The Company represents, warrants and covenants to the Undersigned and the Placement Agent that:

 

(a) Subsidiaries.
The Company has no direct or indirect subsidiaries other than those set forth in the SEC Documents, as defined below in Subsection
5(e), (individually a “Subsidiary” and, collectively, the “Subsidiaries”). Except as
disclosed in the SEC Documents, the Company owns, directly or indirectly, all of the capital stock of each Subsidiary free and
clear of any and all liens, charges, encumbrances, security interests, rights of first refusal or other restrictions of any kind
(each a “Lien” and, collectively, “Liens”), and all the issued and outstanding shares of
capital stock of each Subsidiary are validly issued and are fully paid, non- assessable and free of preemptive and similar rights.

 

(b) Organization
and Qualification. Each of the Company and each Subsidiary is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the
requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither
the Company nor any Subsidiary is in violation of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and each Subsidiary is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not, individually or in the aggregate, have or reasonably be expected to result in (i) an adverse effect
on the legality, validity or enforceability of any agreement or other document executed by the Company relating to the Offering
(each a “Transaction Document” and, collectively, the “Transaction Documents”), (ii) a material
and adverse effect on the results of operations, assets, prospects, business or condition (financial or otherwise) of the Company
and the Subsidiaries, taken as a whole, or (iii) an adverse impairment to the Company’s ability to perform on a timely basis
its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”).

 

(c) Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by each of the Transaction Documents and otherwise to carry out its obligations thereunder. The execution and delivery
of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated thereby have been
duly authorized by all necessary corporate action on the part of the Company and no further corporate action is required by the
Company in connection therewith. Each Transaction Document has been (or upon delivery will have been) duly executed by the Company
and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except as rights to indemnity and contribution may be limited by state or federal
securities laws or the public policy underlying such laws, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and except
as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law).

 

    	Appendix H, Page 6

     

    

 

(d) No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by
the Company of the transactions contemplated thereby do not and will not (i) conflict with or violate any provision of the
Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter
documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become
a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without
notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or
Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any
property or asset of the Company or any Subsidiary is bound or affected, or (iii) result in a violation of any law, rule,
regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the
Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or
asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as
could not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse
Effect.

 

(e) Representations
and Warranties relating to the SEC Documents. The Company has filed all reports, schedules, forms, statements and other documents
(collectively, the “SEC Documents”) required to be filed by it with the Commission pursuant to the Securities
Exchange Act of 1934 (the “Exchange Act”), in a timely manner within the past three years. The SEC Documents
have complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the Commission
promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the Commission,
contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under which they were made, not misleading. As of their
respective dates, to the best of the Company’s knowledge during those respective dates, the Company’s financial statements
included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published
rules and regulations of the Commission with respect thereto. Such financial statements have been prepared in accordance with
accounting principles generally accepted in the United States as in effect from time to time, consistently applied (“GAAP”),
during the periods involved (except (a) as may be otherwise indicated in such financial statements or the notes thereto, or (b)
in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements)
and fairly present in all material respects the Company’s financial condition as of the respective dates thereof and the
results of the Company’s operations and cash flows for the respective periods then ended (subject, in the case of unaudited
statements, to normal year-end audit adjustments). The Company has not received notification from the Commission, and/or any federal
or state securities bureaus that any investigation (informal or formal), inquiry or claim is pending, threatened or in process
against the Company and/or relating to any of its securities.

 

    	Appendix H, Page 7

     

    

 

(f) Material
Changes. Since the date of the latest audited financial statements included within the SEC Documents, except as specifically
disclosed in the SEC Documents, (i) there has been no event, occurrence or development that has had or is reasonably likely to
result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A)
trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice, and (B) liabilities
not required to be reflected in the Company’s financial statements pursuant to GAAP or required to be disclosed in filings
made with the Commission, (iii) the Company has not altered its method of accounting or the identity of its auditors, (iv) the
Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed
or made any agreements to purchase or redeem any shares of its capital stock, and (v) the Company has not issued any equity securities
to any officer, director or affiliate, except pursuant to existing Company stock option or stock purchase plans or disclosed in
SEC Documents. Except as specified in the SEC Documents, the Company does not have pending before the Commission any request for
confidential treatment of information.

 

(g) Litigation.
Except as disclosed in the SEC Documents, (i) there is no action, suit, inquiry, notice of violation, proceeding (including any
partial proceeding such as a deposition) or investigation pending or threatened in writing against or affecting the Company, any
Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency, regulatory
authority (federal, state, county, local or foreign), stock market, stock exchange or trading facility (individually an “Action”
and, collectively, “Actions”), which (A) adversely affects or challenges the legality, validity or enforceability
of any of the Transaction Documents or the Units or Underlying Securities or (B) could, if there were an unfavorable decision,
individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, (ii) neither the Company
nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation
of or liability under federal or state securities laws or a claim of breach of fiduciary duty, and (iii) there has not been, and
to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company
or any current or former director or officer of the Company. The Commission has not issued any stop order or other order suspending
the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities
Act.

 

(h) Employment
Matters. The Company and the Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations
respecting employment and employment practices, terms and conditions of employment and wages and hours except where failure to
be in compliance would not have a Material Adverse Effect. Neither the Company nor any Subsidiary is bound by or subject to (and
none of the Company’s or any of its Subsidiaries’ assets or properties are bound by or subject to) any written or
oral, express or implied, contract, commitment or arrangement with any labor union, and no labor union has requested or, to the
Company’s knowledge, has sought to represent any of the employees, representatives or agents of the Company or the Subsidiaries.
There is no strike or other material labor dispute involving the Company or the Subsidiaries pending, or to the Company’s
knowledge, threatened, that could have a Material Adverse Effect nor is the Company aware of any labor organization activity involving
its or its Subsidiaries’ employees. The Company is not aware that any officer or key employee intends to terminate her or
his employment with the Company, nor does the Company have a current intention to terminate the employment of any officer or key
employee.

 

    	Appendix H, Page 8

     

    

 

(i) Compliance.
Neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has
the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is
bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or
governmental body, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority, including
without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health
and safety, product quality and safety and employment, labor matters and gaming matters, except in each case as could not, individually
or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect. The Company is in compliance with
the applicable requirements of the Sarbanes-Oxley Act of 2002 and the rules and regulations thereunder promulgated by the Commission,
except where such noncompliance could not have or reasonably be expected to result in a Material Adverse Effect.

 

(j) Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Documents,
except where the failure to possess such permits would not, individually or in the aggregate, have or reasonably be expected to
result in a Material Adverse Effect (each a “Material Permit”), and neither the Company nor any Subsidiary
has received any notice of proceedings relating to the revocation or modification of any Material Permit.

 

(k) Title
to Assets. The Company and the Subsidiaries have good and marketable title in all personal property owned by them that is
material to their respective businesses, in each case free and clear of all Liens. Any real property and facilities held under
lease by the Company and the Subsidiaries are held by them under valid, subsisting and, to the Company’s knowledge, enforceable
leases of which the Company and the Subsidiaries are in compliance, except as could not, individually or in the aggregate, have
or reasonably be expected to result in a Material Adverse Effect.

 

(l) Patents
and Trademarks. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks,
trademark applications, service marks, trade names, copyrights, licenses and other similar rights that are necessary or material
for use in connection with their respective businesses as described in the SEC Documents and which the failure to so have could,
individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect (collectively, the “Intellectual
Property Rights”). Neither the Company nor any Subsidiary has received a written notice that the Intellectual Property
Rights used by the Company or any Subsidiary violates or infringes upon the rights of any individual or corporation, partnership,
trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or
an agency or subdivision thereof) or other entity of any kind (a “Person”). To the knowledge of the Company,
all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual
Property Rights.

 

    	Appendix H, Page 9

     

    

 

(m) Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks
and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged. The
Company does not believe that it will be unable to renew its existing insurance coverage as and when such coverage expires or
to obtain similar coverage from similar insurers as may be necessary to continue its business without a material increase in cost.

 

(n) Transactions
With Affiliates and Employees. Other than set forth in the SEC Documents, none of the officers or directors of the Company
and, to the knowledge of the Company, none of the employees of the Company is currently a party to any transaction with the Company
or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which
any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner.

 

(o) Internal
Accounting Controls. The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to
provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific
authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in
accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any
differences.

 

(p) Certain
Fees. Except for transactions with the Placement Agent, no brokerage or finder’s fees or commissions are or will be
payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other
Person with respect to the transactions related to the Offering.

 

(q) Investment
Company. The Company is not, and is not an affiliate of, an “investment company” within the meaning of the Investment
Company Act of 1940.

 

(r)
Taxes. The Company and the Subsidiaries have timely made or filed all federal, state and foreign income and all other tax
returns, reports and declarations required by any jurisdiction to which the Company or such Subsidiaries are subject (unless and
only to the extent that the Company or such Subsidiaries have set aside on their books provisions reasonably adequate for the
payment of all unpaid and unreported taxes) and have timely paid all taxes and other governmental assessments and charges that
are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested
in good faith, and have set aside on their books provisions reasonably adequate for the payment of all taxes for periods subsequent
to the periods to which such returns, reports or declarations apply. To the Company’s knowledge, there are no unpaid taxes
of the Company and the Subsidiaries in any material amount claimed to be due by the taxing authority of any jurisdiction. Neither
the Company nor the Subsidiaries have executed a waiver with respect to the statute of limitations relating to the assessment
or collection of any foreign, federal, state or local tax. None of the Company’s or any of its Subsidiaries’ tax returns
is currently being audited by any taxing authority.

 

    	Appendix H, Page 10

     

    

 

(s) Disclosure.
The Company confirms that neither it, nor to its knowledge, any other Person acting on its behalf has provided any prospective
purchasers of the Securities or their agents or counsel with any information that the Company believes constitutes material, non-public
information. The Company understands and confirms that the prospective purchasers will rely on the foregoing representations and
covenants in effecting transactions in securities of the Company. All disclosure provided to the prospective purchasers regarding
the Company, its business and the transactions contemplated hereby, furnished by or on behalf of the Company (including the Company’s
representations and warranties set forth in this Subscription Agreement) are true and correct in all material respects and do
not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements
made therein, in light of the circumstances under which they were made, not misleading.

 

(t) Foreign
Corrupt Practices. Neither the Company, nor to the knowledge of the Company, any agent or other Person acting on behalf of
the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful
expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials
or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully
any contribution made by the Company (or made by any Person acting on its behalf of which the Company is aware) which is in violation
of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

6. Validity
of Securities. The Company represents and warrants to the Undersigned that the Units, the Notes and the shares of Common Stock
being sold as part of the Units have been duly authorized and, when issued and paid for in accordance with the terms of the Transaction
Documents, will be duly and validly issued, fully paid and nonassessable and free and clear of all liens, other than restrictions
on transfer provided for in the Transaction Documents or imposed by applicable securities laws, and shall not be subject to preemptive
or similar rights of stockholders. The Warrants have been duly authorized, and, when issued and paid for in accordance with the
terms of the Transaction Documents, will be duly and validly issued, free and clear of all Liens, other than restrictions on transfer
provided for in the Transaction Documents or imposed by applicable securities laws, and shall not be subject to preemptive or
similar rights of stockholders. The shares of Common Stock issuable upon conversion of the Notes and exercise of the Warrants
have been duly authorized, and when issued upon conversion of the Notes and paid for in accordance with the terms of the Transaction
Documents and the Warrants, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens, other
than restrictions on transfer provided for in the Transaction Documents or imposed by applicable securities laws, and shall not
be subject to preemptive or similar rights of stockholders. Assuming the accuracy of the representations and warranties of the
Purchasers in this Agreement, the Securities will be issued in compliance with all applicable federal and state securities laws.

 

7. Indemnity.
The Subscriber agrees to indemnify and hold harmless the Company, EdgePoint, the Placement Agent, and their respective officers,
directors, employees, attorneys and agents, and any other Persons authorized by the Company to participate in the offer and/or
sale of the Units against any and all loss, liability, claim, damage and expenses (including, but not limited to, any and all
expenses reasonably incurred in investigating, preparing or defending against litigation commenced or threatened or any claim
whatsoever) arising out of or based upon any breach of or failure by the Subscriber to comply with any representation, warranty,
covenant or agreement made by the Subscriber herein or in any other document furnished by the Subscriber to any of the foregoing
in connection with this transaction.

 

    	Appendix H, Page 11

     

    

 

8.
Representation and Covenant Relating to Short Sales. The Purchaser represents that she/he has never held a short position
in the Company’s Common Stock and covenants that she/he will never short the Common Stock as long as she/he owns the Common
Stock or securities convertible into shares of the Company’s Common Stock.

 

9.
Modification. Neither this Subscription Agreement nor any provisions hereof shall be modified, changed, discharged or terminated
except by an instrument in writing signed by the party against whom any waiver, change, discharge or termination is sought.

 

10.
Notices. All notices, consents, requests, demands, offers, reports and other communications required or permitted to be
given pursuant to this Subscription Agreement shall be in writing and shall be considered properly given or made when personally
delivered to the party entitled thereto, or when sent by a nationally recognized overnight delivery service, confirmed electronic
or facsimile transmission, or by United States mail in a sealed envelope, with postage prepaid, addressed, if to the Company,
to the address given above, and if to the Subscriber, to the address set forth opposite the Subscriber’s signature on the
counterpart of this Subscription Agreement that the Subscriber originally executes and delivers to the Company. The Company may
change its address by giving notice thereof to all Unit purchasers.

 

11.
Counterparts. This Subscription Agreement may be executed in multiple counterpart copies, each of which shall be considered
an original and all of which shall constitute one and the same instrument binding on all the parties, notwithstanding that all
parties are not signatures to the same counterpart.

 

12.
Successors and Assigns. This Subscription Agreement and all of the terms and provisions hereof shall be binding upon and
inure to the benefit of the parties and their respective heirs, executors, administrators, successors, trustees, legal representatives
and assigns. If the Subscriber is more than one person, the obligation of the Subscriber shall be joint and several and the agreements,
representations, warranties and acknowledgments herein contained shall be deemed to be made by and be binding upon each such person
and her/his heirs, executors, administrators, successors, trustees, legal representatives and assigns.

 

13.
Transferability. The Undersigned may not transfer or assign this Subscription Agreement or any interest of the Undersigned’s
herein and any attempt to effect such a transfer shall be void. The assignment and transferability of the Units and Underlying
Securities acquired by the Undersigned pursuant hereto shall be made only in accordance with the provisions of this Subscription
Agreement, the Securities Act and the Rules and Regulations promulgated thereunder and applicable state securities laws.

 

14.
Applicable Law and Venue. This Subscription Agreement shall be governed by and construed in accordance with the laws of
the State of California applicable to contracts made and to be performed entirely within such State and the venue for all legal
action that may be instituted relating to this Agreement and the Offering will be the county of Los Angeles in the State of California.

 

    	Appendix H, Page 12

     

    

 

15.
Gender. The use herein of the masculine pronouns or similar terms shall be deemed to include the feminine and neuter genders
as well and vice versa and the use of the singular pronouns shall be deemed to include the plural as well and vice versa.

 

16.
Severability. If one or more of the provisions or portions of this Subscription Agreement shall be deemed by any court
or quasi-judicial authority to be invalid, illegal or unenforceable in any respect, the invalidity, illegality or unenforceability
of the remaining provisions, or portions of provisions contained herein shall not in any way be affected or impaired thereby.

 

(Subscription
Signature Section to follow)

 

    	Appendix H, Page 13

     

    

 

SUBSCRIPTION
SIGNATURE SECTION MATEON THERAPEUTICS, INC.

 

July
23, 2020

SUBSCRIPTION
AGREEMENT AND INVESTMENT LETTER

 

The
undersigned (the “Undersigned” or “Subscriber”) hereby purchases Units from Mateon Therapeutics,
Inc. (the “Company”) pursuant to the terms of the Subscription Agreement dated July 23, 2020 (the “Subscription
Agreement”) of which this Subscription Signature Section is a part. All terms in this Subscription Signature Section
have the meanings defined elsewhere in this Subscription Agreement.

 

Subscriber
Representations.

 

The
Subscriber hereby acknowledges, represents and warrants to, and agrees with the Company as follows:

 

(a)
The Subscriber is acquiring the Units and Underlying Securities for the Subscriber’s own account as principal for investment
and not with a view to resale, distribution or fractionalization in whole or in part, and has no current agreement, understanding
or arrangement to subdivide, sell, assign or otherwise dispose of all or any part of the Units and/or Underlying Securities and
understands that there is no public market for the Units, the Notes, EdgePoint’s Common Stock, or the Warrants, and, except
for EdgePoint’s Common Stock, none is expected to develop in the foreseeable future, if ever. She/he does not have any contract,
undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third
Person, with respect to the Units and/or Underlying Securities for which she/he is subscribing.

 

(b)
The Units and Underlying Securities that the Subscriber is purchasing and the Underlying Securities into which the Notes may be
converted and the Warrants may be exercised have not been registered under the Securities Act or qualified under applicable state
securities laws and the registration provisions of the Securities Act as well as the qualification provisions of such state laws
thereof restrict their transferability. Based upon the representations and agreements being made by her/him herein, the Subscriber
acknowledges that the offering and sale of the Units are intended to be exempt from registration under the Securities Act by virtue
of Section 4(a)(2) thereof and applicable Rules and Regulations adopted thereunder, and that:

 

1.
the Undersigned’s Units and Underlying Securities cannot be sold, pledged, assigned or otherwise disposed of unless they
are subsequently registered under the Securities Act and/or qualified under applicable state securities laws or, in the reasonable
opinion of the Company’s counsel, an exemption from such registration and/or qualification is available;

 

2.
Sales or transfers of the Undersigned’s Units and Underlying Securities are further restricted by the provisions of state
securities laws;

 

3.
the Company is under no obligation to assist the Undersigned in complying with any exemption from registration under the Securities
Act or qualification under any state securities law, or, except
as may be provided in the Registration Rights Agreement, to register the Units or Underlying Securities on the Undersigned’s
behalf;

 

    	Appendix H, Page 14

     

    

 

4.
the certificates or other documentation representing the Undersigned’s Underlying Securities will bear, in substance, the
following legend:

 

These
securities have not been registered under the Securities Act of 1933. They may not be sold or transferred in the absence of an
effective Registration Statement under that Act without an opinion of counsel satisfactory to the Company that such Registration
is not required.;

 

5.
the Company will place stop-transfer instructions on its books and with the transfer agent of its securities with respect to the
Units and Underlying Securities registered in the name of the Undersigned or beneficially owned by her/him.

 

The
Undersigned further acknowledges that the basis for these exemptions may not be available if, notwithstanding such representations,
she/he only intends to hold these securities for a fixed or determinable period in the future, or until the market price rises
or falls and she/he hereby represents and warrants that she/he does not have any such intention.

 

(c)
The Subscriber: (A) by herself/himself or together with her/his Purchaser Representative, if any, has such knowledge and experience
in financial, business and tax matters that she/he is capable of evaluating the merits of the prospective purchase of the Units
and making an investment decision with respect to the Company and EdgePoint; (B) has had substantial experience in previous private
and public purchases of speculative securities and is not relying on the Company, the Placement Agent, or any of their respective
affiliates or attorneys with respect to economic, tax or other considerations involved in this investment; and (C) is able to
bear the economic risk of this investment (i.e., she/he can afford a complete loss of her/his investment). In this
regard, her/his overall commitment to investments, which are not readily marketable, is not disproportionate to her/his net worth,
and her/his purchase of the Units will not cause such overall commitment to become excessive.

 

(d)
The Subscriber understands and acknowledges that an investment in the Company and EdgePoint is speculative and subject to many
risks. In this regard, the Company cannot assure her/him that all of the Units will be sold. Accordingly, the Company’s
operations and financial condition will be adversely affected to the extent that less than all of the Units are sold, especially
because it currently has no commitment for any financing.

 

(e)
_________ (insert name of Purchaser Representative: if none, leave blank) has acted as the Undersigned’s Purchaser
Representative for purposes of the private placement exemption under the Securities Act. If the Undersigned has appointed a
Purchaser Representative (which term is used herein with the same meaning as given in Rule 501(h) of Regulation D), she/he
has been advised by her/his Purchaser Representative as to the merits and risks of an investment in the Company in general
and the suitability of the Units as an investment for the Undersigned in particular, and is aware that the Purchaser
Representative may be receiving compensation from the Company in connection with the services being performed by such
Purchaser Representative for the Undersigned relating to her/his purchase of the Units.

 

    	Appendix H, Page 15

     

    

 

(f)
If applicable, the Subscriber has reviewed carefully the definition of “accredited investor” as set forth below, and
the particular subparagraph or subparagraphs by which the Undersigned qualifies as such is (are) checked by her/him below.

 

(g)
The Subscriber has carefully reviewed the Confidential Offering Memorandum dated July 23, 2020 including the Risk Factors
section set forth therein and in the SEC Documents

 

THE
UNDERSIGNED UNDERSTANDS THAT, BECAUSE OF THE SIGNIFICANT RISK FACTORS SET FORTH IN THE CONFIDENTIAL OFFERING MEMORANDUM AND IN
THE SEC DOCUMENTS, INCLUDING BUT NOT LIMITED TO THE RISK FACTORS SET FORTH IN THE DESCRIPTION OF RISK FACTORS DISCLOSED IN THE
CONFIDENTIAL OFFERING MEMORANDUM AND THE SEC DOCUMENTS, IF THE OFFERING IS CONSUMMATED, SHE/HE COULD LOSE HER/HIS ENTIRE INVESTMENT.

 

(balance
of this page left blank intentionally)

 

    	Appendix H, Page 16

     

    

 

Definition
of Accredited Investor

 

The
Undersigned represents that she/he is an “accredited investor” as that term is defined in Rule 501 (a) of Regulation
D promulgated under the Securities Act as follows (CHECK APPLICABLE BOXES):

 

(A)
Certain banks, savings and loan institutions, broker-dealers, investment companies and other entities including an employee benefit
plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974 with total assets in excess of $5,000,000;
any private business development company as defined in Section 202 (a) (22) of the Investment Advisers Act of 1940; any organization
described in Section 501 (c) (3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership,
not formed for the specific purpose of acquiring the Units, with total assets in excess of $5,000,000; or any trust with total
assets in excess of $5,000,000 not formed for the specific purpose of acquiring the securities offered, whose purchase is directed
by a sophisticated person as described in Section 230.506(b) (2) (ii) of Regulation D;

 

(B)
Any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of her/his purchase
exceeds $1,000,000 excluding the value of that person’s personal residence;

 

(C)
Any natural person who had an individual income in excess of $200,000 or, with that person’s spouse a joint income in excess
of $300,000 in each of the two most recent years and who reasonably expects an income in excess of $200,000, or $300,000 with
that person’s spouse, in the current year;

 

(D)
Any Individual Retirement Account and the individual who established the IRA is an accredited investor on the basis of (B) or
(C) above;

 

(E)
Any director, executive officer or general partner of the issuer of the securities being offered or sold, or any director, executive
officer or general partner of a general partner of that issuer; or

 

(F)
Any entity in which all of the equity owners are accredited investors under any of the paragraphs above.

 

In
connection with the foregoing representations the Undersigned has appended hereto as Appendix F, a Purchaser Questionnaire that
she/he has completed and executed. She/he represents and warrants that the information set forth therein as well as all other
information which she/he is furnishing to the Company with respect to her/his financial condition and business and investment
experience is accurate and complete as of the date hereof and she/he covenants that, in the event a material change should occur
in such information, she/he will immediately provide the Company with such revised or corrected information.

 

(h)
The Subscriber has adequate means of providing for her/his current needs and possible personal contingencies, has no need for
liquidity of this investment and has no reason to anticipate any change in personal circumstances, financial or otherwise, which
might cause or require any sale or distribution of the Units and/or Underlying Securities.

 

    	Appendix H, Page 17

     

    

 

(i)
The Subscriber is familiar with the nature of the risks attending investments in securities and has determined that the purchase
of the Units is consistent with her/his investment objectives and income prospects.

 

(j)
The Subscriber’s purchase of the Units has not been solicited by means of general solicitation or general advertisement,
and the Subscriber has not been furnished with any oral representation or oral information in connection with the Offering which
is not set forth in the Confidential Offering Memorandum or herein or in the Exhibits thereto or hereto or in the SEC Documents.

 

(k)
The Subscriber has received, reviewed and understands the Confidential Offering Memorandum and this Subscription Agreement, including
all of the Exhibits attached thereto and hereto, has reviewed the SEC Documents, and has been granted a reasonable time prior
to the date hereof during which she/he has had the opportunity to obtain such additional information as she/he deemed necessary
to permit her/him to make an informed decision with respect to the purchase of her/his Units. She/he also represents and warrants
that she/he (A) has reviewed such other documents and obtained such other information from the Company as she/he deems necessary
in order for her/him to make an informed investment decision; (B) has had access to all relevant documents, instruments, books,
and other records of or pertaining to the Company and has had the opportunity to ask questions of and receive answers from management
and other representatives of the Company and requires no additional information or documentation; and (C) is fully aware of the
current business prospects, financial condition, and operating history as set forth herein and in the Exhibits to the Confidential
Offering Memorandum and hereto and in the SEC Documents relating to the Company.

 

(l)
Other than information given to the Subscriber as described in Paragraph (k) above, no representations or warranties have
been made to the Undersigned by the Company, the Placement Agent or any other Person in connection with this Offering, or any
officer, employee, agent or affiliate of the Company or the Placement Agent, other than the representations made by the Company
set forth in the Confidential Offering Memorandum or herein and she/he is not relying upon any representations other than those
described in Paragraph (k) above.

 

(m)
The Subscriber is not relying on the Company, the Placement Agent or this Subscription Agreement with respect to individual tax
and other economic considerations involved in this investment and acknowledges that her/his investment in the Company is not a
tax shelter.

 

(n)
If for any reason this Offering does not close or the Company does not accept the Undersigned’s subscription, the Undersigned
shall have no claims against the Company, the Placement Agent, or their respective officers, directors, employees, attorneys or
affiliates, and shall have no interest in the Units, the Underlying Securities or the Company.

 

(o)
If the Subscriber is a corporation, limited liability company, partnership, trust or other entity: (A) it is authorized and qualified
to become a stockholder in, and authorized to make its investment in, the Company as provided herein; (B) it was not formed for
the purpose of purchasing the Units; (C) the person signing this Subscription Agreement on behalf of such entity has been duly
authorized by such entity to do so and by her/his execution of the Subscription Agreement, the Subscription Agreement constitutes
a valid and legally binding obligation by the Subscriber; and (D) the Undersigned is duly organized and validly existing under
the laws of its state of organization.

 

    	Appendix H, Page 18

     

    

 

(p)
If the Subscriber is an individual, she/he is over 21 years of age; or, if the Subscriber is a partnership, trust or other entity,
each equity owner of such entity is over 21 years of age.

 

(q)
The Undersigned has full power and authority to enter into this Subscription Agreement and, upon execution by the Undersigned,
the Subscription Agreement will constitute the Undersigned’s valid and legally binding obligation.

 

(r)
This Subscription Agreement, together with the Exhibits hereto, constitutes the entire agreement of the parties hereto, and supersedes
all prior understandings with respect to the subject matter hereof.

 

(s)
The address set forth below is the Undersigned’s (if an individual) true and correct residence, and the Undersigned has
no current intention of becoming a resident of any other state or jurisdiction prior to the date on which payment in full for
her/his Units will be made. If the Undersigned is a partnership, corporation or other entity, such address is such entity’s
principal place of business.

 

(t)
All information which the Subscriber has heretofore furnished to the Company in this Subscription Agreement or any Exhibits thereto,
is correct and complete as of the date of this Subscription Agreement and if there should be any material change in such information
prior to her/his purchase of the Units she/he will immediately furnish such revised or corrected information to the Company.

 

(u)
The foregoing representations, warranties and agreements shall survive the date of this Subscription Agreement and the final Closing
of the Offering.

 

THE
UNDERSIGNED ACKNOWLEDGES THAT THIS SUBSCRIPTION AGREEMENT CONSISTS OF 27 PAGES AND ALSO INCLUDES APPENDICES A THROUGH H WHICH
ARE PART OF THE MEMORANDUM ATTACHED AS EXHIBIT A.

 

(Subscription
Page to follow)

 

    	Appendix H, Page 19

     

    

 

Subscription
Page

 

A.
SUBSCRIPTION:

 

Number
of Units purchased ________________________ Aggregate Purchase Price ___________________

 

B.
MANNER IN WHICH TITLE IS TO BE HELD (Please check One):

 

	1.	□	Individual
	2.	□	Joint
    Tenants with Right of Survivorship
	3.	□	Community
    Property
	4.	□	Tenants
    in Common
	5.	□	Corporation/Partnership/
    Limited Liability Company
	6.	□	IRA
	7.	□	Trust/Estate/Pension
    or Profit Sharing Plan, and date opened: ___________
	8.	□	As
    a Custodian for__________________UGMA____________(State)
	9.	□	Married
    with Separate Property
	10.	□	Keogh
	11.	□	Tenants
    by Entirety
	12.	□	Other:
    ______________________________________________

 

C.
TITLE:

 

PLEASE
GIVE THE EXACT AND COMPLETE NAME IN WHICH TITLE TO THE UNITS ARE TO BE HELD:___________

 _____________________________________________________________________________________________

______________________________________________________________________________________________

 

(signature
page to follow)

 

    	Appendix H, Page 20

     

    

 

Signature
Page

 

IN
WITNESS WHEREOF, the Purchaser has executed this Subscription Agreement on the day______
of _____, 2020.

 

Name
(of Entity if applicable):

 

	 	 Signature:
	 	 
	 	 Signature:
	 	 
	 	 Name:
	 	 
	 	 Name:
	 	 
	 	 Title (if applicable):
	 	 
	 	 

 

Address:

 

	Street or City State Zip	 	 

 

Address for Notices:

 

	Street or City State Zip

                           P.O. Box No.
	 	 

 

	Facsimile Number: ___________________________	Email	_______________________________________

 

	Address: Social Security or Federal Tax ID
    Number:	 ______________________________________________

 

	ACCEPTED
    ON BEHALF OF THE COMPANY: MATEON THERAPEUTICS, INC.	 
	 	 	 
	BY:	 	 
	Name:	Vuong
    Trieu Title: President and CEO	 

 

    	Appendix H, Page 21Exhibit
10.2

 

 

 

February
25, 2020

 

Mateon
Therapeutics, Inc.

29397
Agoura Road

Suite
107

Agoura
Hills, CA 91501

 

Re:
Proposed Financing

 

Dear
Vuong Trieu, Chief Executive Officer:

 

This
letter will confirm the understanding and agreement (the “Agreement”) between J H Darbie & Co., Inc. (“JHD”),
and Mateon Therapeutics, Inc. (the “Company”), as follows:

 

1.
Engagement. The Company has a wholly owned subsidiary called EdgePoint (the “Subsidiary”). The Company
hereby engages JHD on a nonexclusive basis to conduct a review of the business and financial condition of the Company and the
Subsidiary and the Company’s proposed financing (“Offering”) to be used in connection with the Offering,
with a view toward possibly participating as a sales agent in the private placement of shares of the Subsidiary’s Common
Stock (the “Subsidiary’s Common Stock”), notes to be issued by the Company (the “Notes”),
which will be convertible into the Subsidiary’s Common Stock) and the Company’s Common Stock (the “Company’s
Common Stock” collectively with the the Subsidiary’s Common Stock the (“Common Stock”) and
warrants exercisable to purchase the Subsidiary’s Common Stock and the Company’s Common Stock (the “Warrants”)
all in the form of units (the “Units”) collectively with the Notes, the Subsidiary’s Common Stock, the
Company’s Common Stock, and the Warrants referred to as the (“Securities”). The Securities will be offered
for sale to a limited number of sophisticated investors (“Investors”) to be introduced to the Company by JHD
and other authorized securities broker-dealers that are members in good standing of The Financial Industry Regulatory Authority,
Inc. (“FINRA”). Such private placement will be referred to as the “Transaction.” Each Unit
will consist of 25,000 shares of the Subsidiary’s Common Stock, one Note, in the principal amount of $25,000 bearing interest
at the annual rate of 16% and each initially convertible into up to 25,000 shares of the Subsidiary’s Common Stock or up
to 138,889 shares of the Company’s Common Stock subject to adjustments for reverse and forward splits, stock dividends,
stock combinations transactions and other similar transactions relating to the Common Stock, and 50,000 Warrants each exercisable
to initially purchase one share of the Subsidiary’s Common Stock at $1.00 per share or one share of the Company’s
Common Stock at $0.20 per share also subject to adjustments for reverse and forward splits, stock dividends, stock combinations
transactions and other similar transactions relating to the Common Stock,. Currently, the Company plans to sell up to 100 Units
at $50,000 per Unit, for a total Offering of up to $5,000,000. The Company will invest the entire net proceeds that it receives
after all offering expenses from the sale of the Units into the Subsidiary. The anti dilution provisions will provide that, if
during the period that any of the Notes and/or the Warrants remain outstanding the Company or the Subsidiary sells the Subsidiary’s
Common Stock at a price lower or issues notes convertible at or warrants exercisable for a price lower than the Notes are then
convertible and/or the Warrants are then exercisable, the Note conversion prices and the Warrant exercise prices, as applicable,
shall be reduced to those lower prices. The number and price of the Units the Company will ultimately agree to sell and the Investors
to whom the Units are sold pursuant to the Subscription Documents (defined below) are entirely within the Company’s discretion.

 

J.H.
Darbie & Co.

40
Wall Street New York, NY 10005 

Telephone:
212-269-7271 Fax: 212-269-7330

www.jhdarbie.com

 

    	 

    	 

    

 

J
H DARBIE & CO., INC.

 

Mateon
Therapeutics, Inc.

February
25, 2020

Page
2

______________________

 

2.
Offering Materials. The Company will prepare and deliver to JHD copies of subscription materials including a private placement
memorandum, relating to, among other things, the Company, the Securities, and the terms of the Offering. These subscription materials,
including all exhibits thereto and all documents delivered therewith and incorporated by reference therein, are referred to herein
as the “Memorandum,” unless the subscription material (including exhibits or documents) is supplemented or
amended in accordance with this Agreement, in which event, the term “Memorandum” refers to such subscription
material, exhibits, and documents as so supplemented or amended from and after the time of its delivery to JHD. The Company is
responsible for reviewing and finally approving the Memorandum and all related documents used by JHD in the Transaction.

 

3.
JHD’s Role. JHD hereby accepts the engagement described herein and, in that connection, agrees to:

 

(a)
conduct a review of the business and financial condition of the Company and its proposed Offering in accordance with its obligations
under FINRA Regulatory Notice 10-22 (April 22, 2010) (“Due Diligence”);

 

(b)
assist and advise the Company respecting the terms of the Securities from a marketing perspective.

 

4.
Due Diligence. It is understood that JHD’s assistance in the Transaction will be subject to the completion, satisfactory
to JHD in its sole discretion, of its Due Diligence and the approval of JHD’s supervisory personnel of the undertaking.
JHD will have the right, in its sole discretion, to terminate this Agreement if the outcome of the Due Diligence is not satisfactory
to JHD or if approval of its supervisory personnel is not obtained (“Early Termination”).

 

5.
Term; Nonexclusivity.

 

(a)
The term of JHD’s engagement hereunder will extend from the date hereof until: (i) Early Termination; (ii) 90 days from
the date of this agreement; (iii) all offered Securities are sold; (iv) the Offering is terminated by the Company; or (v) this
Agreement is terminated by either party as provided below, whichever first occurs.

 

(b)
During the term of JHD’s engagement hereunder: (i) the Company will have the right to contact or solicit institutions, corporations,
or other entities as potential purchasers of the Securities; and (ii) the Company will have the right to pursue any financing
transaction that would be in lieu of a Transaction. The Company may reject a potential Investor if, in its sole discretion, the
Company believes that the inclusion of such Investor in the Company would be incompatible with the Company’s best interests.
The Company will not be obligated to sell the Securities or to accept any offer therefor, and the terms of the Securities and
the final decision to issue the same will be subject to the Company’s sole discretionary approval.

 

    	 

    	 

    

 

J
H DARBIE & CO., INC.

 

Mateon
Therapeutics, Inc.

February
25, 2020

Page
3

______________________

 

(c)
Either party may terminate this Agreement at any time by giving the other party at least 30 days’ prior written notice of
such termination. Termination will not alter the Company’s obligation to pay JHD’s fees in accordance with Section
9. Any obligation pursuant to this Section 5 will survive the termination or expiration of this Agreement.

 

(d)
No offers or sales of any securities of the same or similar class as the Securities will be made by the Company or any affiliate
during the six-month period after the completion of the Offering, in each case, except in compliance with the registration requirements
of the Securities Act of 1933 (the “Securities Act”) or an exemption therefrom.

 

6.
Best Efforts/Minimum. Subject to the satisfactory completion of its Due Diligence and election to participate in the Transaction,
the Company acknowledges that JHD’s involvement in the Transaction is strictly on a “best-efforts $2,000,000 Minimum”
basis and that the consummation of the Transaction will be subject to, among other things, market conditions.

 

7.
Information. The Company will furnish, or cause to be furnished, to JHD all information reasonably requested by JHD and
its counsel for the purpose of rendering services hereunder (all such information being the “Information”).
In addition, the Company agrees to make available to JHD and its counsel upon request, from time to time, the officers, directors,
accountants, counsel, and other advisors of the Company. The Company recognizes and confirms that JHD and its counsel: (a) will
use and rely on the Information and on information available from generally recognized public sources in performing the services
contemplated by this Agreement without having independently verified the same; (b) do not assume responsibility for the accuracy
or completeness of the Information and such other information; and (c) will not make an appraisal of any of the Company’s
assets or liabilities.

 

8.
Company’s Responsibilities, Representations, and Warranties.

 

(a)
The Company represents and warrants to JHD that: (i) the Memorandum (excluding any documents attached as exhibits or incorporated
by reference to the Memorandum) is or will be, as of their respective dates, true and accurate in all material respects and do
not and will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements made therein, in light of the circumstances under which they were made, not misleading; and (ii) any projected financial
Information or other forward-looking Information that the Company provides to JHD will be made by the Company in good faith and
based on facts and assumptions that the Company believes to be reasonable.

 

(b)
The sale of Securities to any Investor will be evidenced by a subscription agreement and related subscription documents, in forms
reasonably satisfactory to the Company and JHD (collectively, “Subscription Documents”), between the Company
and such Investor. Prior to the signing of any Subscription Documents, officers of the Company with responsibility for financial
affairs will be available to answer inquiries from prospective Investors.

 

(c)
The selling price of the Securities and the number to be issued and sold by the Company pursuant to the Subscription Documents
will be specified in writing by the Company.

 

(d)
The Company will perform the covenants set forth in the Subscription Documents.

 

    	 

    	 

    

 

J
H DARBIE & CO., INC.

 

Mateon
Therapeutics, Inc.

February
25, 2020

Page
4

______________________

 

(e)
The Company: (i) represents and warrants that the representations and warranties contained in the Subscription Documents will
be true and correct in all respects on the date of the Subscription Documents and on the closing date; and (ii) agrees that JHD
will be entitled to rely on such representations and warranties as if they were made directly to JHD.

 

(f)
The Company agrees that it will comply with all applicable terms and conditions of the Securities Act to ensure that the sale
of Securities contemplated by this Agreement will be exempt from the registration requirements, and the Company will otherwise
comply with the securities laws of any applicable country or other jurisdiction. The Company will not take any action or permit
any action to be taken on its behalf that would cause the sale of any Securities to fail to qualify for such an exemption or otherwise
comply with applicable securities laws.

 

(g)
The Company warrants and represents that none of their directors, executive officers, other officers participating in the Offering,
or any soliciting associated person of the Company compensated in connection with this Offering (each, a “Covered Person”
and collectively, “Covered Persons”) is subject to any of the “bad actor” disqualifying events described
in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualifying Event”). The Company warrants and represents
that it has exercised reasonable care to determine whether any Covered Person is subject to a Disqualifying Event. The Company
has complied, to the extent applicable, with its disclosure obligations under Rule 506(e) and further agrees to promptly notify
the Placement Agent in writing should any Disqualifying Events come to the attention of the Company during the term of this Agreement
which could be reasonably expected to have a material adverse consequence on the Offering or Placement Agent’s services
provided in connection therewith.

 

(h)
The Company represents and warrants to JHD that there are no brokers, representatives, or other persons who have an interest in
compensation due to JHD from any Transaction contemplated herein or who would otherwise be due any fee, commission, or remuneration
upon consummation of any Transaction.

 

9.
Fees.

 

(a)
As compensation for the Due Diligence performed by JHD hereunder, the Company will pay $10,000 (the “Due Diligence
Fee” to JHD. The funds will be wired to JHD simultaneously with the execution of this agreement.

 

(b)
As compensation for the services to be rendered by JHD hereunder, the Company will (i) pay to JHD a fee equal to 10% of the gross
proceeds raised from the sale of the Securities to customers of JHD and 4% of sales to others; (ii) issue to JHD Placement Agent’s
Warrants to purchase a number of Units equal to 10% of the aggregate number of Units sold on the same terms and conditions as
the Units are sold to the Investors in the Offering; and (iii) pay to JHD a non-accountable expense allowance equal to 3% of the
gross proceeds raised from the sale of all of the Securities less the Due Diligence Fee.

 

(c)
The Company’s obligations under this Section will survive the termination or expiration of this Agreement.

 

    	 

    	 

    

 

J
H DARBIE & CO., INC.

 

Mateon
Therapeutics, Inc.

February
25, 2020

Page
5

______________________

 

10.
Indemnity. In addition to the fees provided for above, the parties agree to the following indemnification provisions:

 

(a)
Each party (the “Indemnifying Party”) agrees to indemnify and hold harmless the other party and its affiliates,
and their respective directors, officers, employees, agents, and controlling persons (each such person, including the other party
an “Indemnified Party”), from and against any losses, claims, damages, and liabilities, joint or several (collectively,
the “Damages”), to which an Indemnified Party may become subject in connection with or otherwise relating to
or arising from: (i) any Transaction or the engagement of, or performance of services by, an Indemnified Party hereunder; or (ii)
any untrue statement of a material fact or omission to state a material fact necessary in order to make the statements made, in
the light of the circumstances under which they were made, not misleading. The Indemnifying Party agrees to reimburse each Indemnified
Party for all fees and expenses (including the fees and expenses of counsel) (collectively, “Expenses”) as
incurred in connection with investigating, preparing, pursuing, or defending any threatened or pending claim, action, proceeding,
or investigation (collectively, the “Proceedings”) arising therefrom, whether or not the Indemnified Party
is a formal party to such Proceeding; provided, that the Indemnifying Party will not be liable to any Indemnified Party
to the extent that any Damages are found in a final, nonappealable judgment by a court of competent jurisdiction to have resulted
from the gross negligence or willful misconduct of the Indemnified Party seeking indemnification hereunder. The Indemnifying Party
also agrees that no Indemnified Party will have any liability (whether direct or indirect, in contract, tort or otherwise) to
the Indemnifying Party or any person asserting claims on the Indemnifying Party’s behalf arising out of or in connection
with any Transactions or the engagement of, or performance of services by, any Indemnified Party thereunder, except to the extent
that any Damages are found in a final, nonappealable judgment by a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of the Indemnified Party.

 

(b)
If for any reason, other than in accordance with this Agreement, the foregoing indemnity is unavailable to an Indemnified Party
or insufficient to hold an Indemnified Party harmless, then the Indemnifying Party will contribute to the amount paid or payable
by an Indemnified Party as a result of Damages (including all Expenses incurred) such proportion as is appropriate to reflect
the relative benefits to the Indemnifying Party and its stockholders, on the one hand, and Indemnified Parties, on the other hand,
in connection with the matters covered by this Agreement. If the foregoing allocation is not permitted by applicable law, the
Indemnifying Party will contribute to the amount paid or payable by an Indemnified Party as a result of Damages (including all
Expenses incurred) such proportion as is appropriate to reflect not only the relative benefits but also the relative faults of
the parties as well as any relevant equitable considerations. The Indemnifying Party agrees that for purposes of this section,
the relative benefits to the Indemnifying Party and Indemnified Party in connection with the matters covered by this Agreement
will be deemed to be in the same proportion that the total value paid or received or to be paid or received by the Indemnifying
Party in connection with the Transactions, whether or not consummated, bears to the fees paid to Indemnified Party under this
Agreement; provided, that in no event will the total contribution of all Indemnified Parties to all Damages exceed the
amount of fees actually received and retained by Indemnified Party hereunder (excluding, in the case of JHD if it is the Indemnified
Party any amounts received by it for performing Due Diligence).

 

    	 

    	 

    

 

J
H DARBIE & CO., INC.

 

Mateon
Therapeutics, Inc.

February
25, 2020

Page
6

______________________

 

(c)
The Indemnifying Party agrees not to enter into any waiver, release, or settlement of any Proceedings (whether or not the Indemnified
Party is a formal party to such Proceedings) in respect of which indemnification may be sought hereunder without the prior written
consent of Indemnified Party (which consent will not be unreasonably withheld), unless the waiver, release, or settlement includes
an unconditional release of the Indemnified Party from all liability arising out of the Proceeding.

 

(d)
The indemnity, reimbursement, and contribution obligations of the Indemnifying Party hereunder will be in addition to any liability
that the Indemnifying Party may otherwise have to any Indemnified Party and will be binding upon and inure to the benefit of any
successors, assigns, heirs, and personal representatives of the Indemnifying Party or an Indemnified Party.

 

(e)
The provisions of this indemnification section will survive the modification, termination, or expiration of this Agreement.

 

11.
Governing Law. This Agreement will be governed by and construed and interpreted in accordance with the laws of the state
of New York, without giving effect to any choice or conflict of law provision or rule (whether the state of New York or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the state of New York. All disputes
respecting this Agreement will be resolved through arbitration.

 

12.
Notices. All offers, acceptances, notices, requests, demands and other communications under this Agreement shall be in
writing and, except as otherwise provided herein, shall be deemed to have been given only: (i) when delivered in person; (ii)
one day after deposit with a nationally recognized overnight courier service; or, (iii) five days after having been mailed by
certified or registered mail prepaid, to the parties at their respective addresses first set forth above, or at such other address
as may be given in writing in future by either party to the other. Notice may also be given via electronic or facsimile transmission
to a party who provides such party’s fax number or email address to the other party and shall be deemed to have been given
if receipt thereof is confirmed by the recipient.

 

13.
Confidentiality. Except for disclosure to the Investors and as otherwise required by law, this Agreement and the services
and advice to be provided by JHD hereunder will not be disclosed to third parties without JHD’s prior written permission.
Notwithstanding the foregoing, JHD will be permitted to advertise the services it provided in connection with the Transaction
subsequent to the consummation of the Transaction.

 

14.
Compliance by JHD. Notwithstanding the Company’s obligations in subsection 8(f), JHD agrees that it will comply with
the applicable terms and conditions of the Securities Act to ensure that the sale of Securities by it contemplated by this Agreement
will be exempt from the registration requirements, and JHD will otherwise comply with applicable securities laws in connection
with the services it provides pursuant to this Agreement.

 

15.
Authorization. Each of the Company and JHD represent and warrant that it has all requisite power and authority to enter
into and carry out the terms and provisions of this Agreement and the execution, delivery, and performance of this Agreement does
not breach or conflict with any agreement, document, or instrument to which it is a party or bound.

 

    	 

    	 

    

 

J
H DARBIE & CO., INC.

 

Mateon
Therapeutics, Inc.

February
25, 2020

Page
7

______________________

 

16.
Miscellaneous. This Agreement constitutes the entire understanding and agreement between the Company and JHD respecting
the subject matter hereof and supersedes all prior understandings or agreements between the parties with respect thereto, whether
oral or written, express or implied. Any amendments or modifications must be executed in writing by both parties. This Agreement
and all rights, liabilities, and obligations hereunder will be binding upon and inure to the benefit of each party’s successors,
but may not be assigned without the prior written approval of the other party. This Agreement may be executed in any number of
counterparts, each of which will be deemed to be an original, but all of which will, together, constitute only one instrument.
The descriptive headings of the sections of this Agreement are inserted for convenience only, do not constitute a part of this
Agreement, and will not affect in any way the meaning or interpretation of this Agreement.

 

_________________________

 

JHD
looks forward to working with you. Please confirm that the foregoing correctly sets forth our agreement by signing the enclosed
duplicate of this letter in the space provided and returning it to us, whereupon this letter will constitute a binding agreement
as of the date first above written.

 

	 	Sincerely,
	 	 
	 	J
    H DARBIE & CO., INC.
	 	 
	 	/s/
    Xavier Vicuña
	 	Xavier
    Vicuña
	 	Vice
    President

 

Agreed
to and accepted this 25th day of February 2020.

 

	 	Mateon
    Therapeutics, Inc.
	 	 	 
	 	By:	/s/
    Vuong Trieu
	 	Name:	Vuong
    Trieu
	 	Title:	CEO

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