Document:

Exhibit 10.9

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(the “Agreement”), dated as of May 27, 2022 (the “Effective Date”), is made by and between
Estrella Biopharma, Inc. a Delaware corporation (the “Company”), and Qian Yang (“Executive”).
This Agreement shall govern the employment relationship between Executive and the Company from and after the Effective Date.

 

NOW, THEREFORE, in
consideration of the above recitals incorporated herein and the mutual covenants and promises contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, the parties agree as follows:

 

		1.	Retention and Duties.

 

(a)           The
Company hereby engages and employs Executive for the Period of Employment (as defined in Section 2) on the terms and conditions
expressly set forth in this Agreement. Executive hereby accepts and agrees to such engagement and employment, on the terms and
conditions expressly set forth in this Agreement.

 

(b)           During
the Period of Employment, Executive shall serve as Chief Operating Officer of the Company and shall have the powers, authorities
and duties customarily vested in such office in the industry of the Company and as reasonably determined board of directors of
the Company (the “Board”) from time to time. Executive shall report directly to the Chief Executive Officer of the
Company during the Period of Employment. This position will be based in Emeryville, California and Executive may be required to
travel in fulfillment of Executive’s duties and responsibilities hereunder.

 

(c)           Executive
hereby represents to the Company that: (i) the execution and delivery of this Agreement and the performance by Executive of Executive’s
duties hereunder do not and shall not constitute a breach of, conflict with, or otherwise contravene or cause a default under,
the terms of any other agreement or policy to which Executive is a party or otherwise bound or any judgment, order or decree to
which Executive is subject; (ii) Executive has no information (including, without limitation, confidential information and trade
secrets) relating to any other person or entity that would prevent Executive under the terms of any other agreement or arrangement
from entering into this Agreement or carrying out Executive’s duties hereunder, or would give rise to a violation of such
other agreement or arrangement by virtue of Executive entering into this Agreement and carrying out Executive’s duties hereunder;
(iii) Executive is not bound by any employment, consulting, non-competition, confidentiality, trade secret or similar agreement
(other than this Agreement) with any other person or entity that would prevent Executive under the terms of any other agreement
or arrangement from entering into this Agreement or carrying out Executive’s duties hereunder, or would give rise to a violation
of such other agreement or arrangement by virtue of Executive entering into this Agreement and carrying out Executive’s duties
hereunder; and (iv) Executive understands the Company will rely upon the accuracy and truth of the representations and warranties
of Executive set forth herein.

 

2.            Period
of Employment. The “Period of Employment” shall be the period commencing on the Effective Date and
ending at the close of business on the day before the end of the 12th month period following the Effective Date (the “Initial
Term”), unless Executive’s employment with the Company terminates earlier pursuant to Section 5. The Period of
Employment shall be extended automatically at the close of business on the day before the end of the last day of the Initial Term
and on each successive anniversary of the Effective Date thereafter (each such anniversary, a “Renewal Date”)
by successive 1 year periods unless either the Company or the Executive provides written notice of an intention to terminate the
Agreement at least ninety (90) days prior to such Renewal Date. The term “Period of Employment” shall include
any such automatic 1 year extensions. The Period of Employment may be modified only by written agreement between the parties and
in such case, the term “Period of Employment” shall be deemed to mean the Period of Employment as so modified.
Notwithstanding anything to the contrary herein, Executive’s employment with the Company shall be “at will.”

 

    	 

    	Table of Contents 

    

 

		3.	Compensation and Reimbursement of Expenses.

 

(a)           Compensation.
Executive’s annual base salary for the Period of Employment shall be mutually agreed upon (as may be adjusted from time
to time, the “Base Salary”), shall be payable in accordance with the Company’s regular payroll practices
in effect from time to time and subject to all applicable taxes and withholdings. The parties acknowledge and agree that a portion
of Executive’s Base Salary shall constitute consideration for Executive’s compliance with the restrictions and covenants
set forth in Section 6 of this Agreement.

 

(b)           Annual
Cash Bonus. For each fiscal year ending during the Period of Employment, Executive shall be eligible to receive an annual cash
bonus (the “Annual Bonus”) to be determined by the Compensation Committee of the Board (the “Compensation
Committee”) based on financial, operational, individual and/or other targets established by the Compensation Committee
and subject to any annual cash incentive plan adopted by the Compensation Committee. The Compensation Committee will set Executive’s
target Annual Bonus opportunity, equal to a percentage of Base Salary, for each fiscal year. The Annual Bonus shall be subject
to Executive’s continuous employment through the payment date and shall be payable in the first payroll period following
the completion of the Company’s audited financials related to the performance year, which in no event shall be later than
December 31” of the year following the year to which such Annual Bonus relates.

 

(c)           Stock
Options. Subject to the approval of the Company’s Board, the Company shall grant Executive a stock option (the “Option”)
covering 3,600,000 shares of the Company’s Common Stock. The Option shall be granted as soon as reasonably practicable
after the Effective Date. The exercise price per share will be equal to the fair market value per share on the date the Option
is granted, as determined by the Company’s Board in good faith compliance with applicable guidance in order to avoid having
the Option be treated as deferred compensation under Section 409A of the Internal Revenue Code of 1986, as amended. There is no
guarantee that the Internal Revenue Service will agree with this value. Executive should consult with Executive’s own tax
advisor concerning the tax risks associated with accepting an option to purchase the Company’s Common Stock. All principal
and accrued interest shall be payable on the maturity date of the loan. So long as Executive’s service status is continuous,
the Option shall vest as follows: 1/48 of the total number of Option shares shall vest as of the Effective Date and 1/48th of the
remaining unvested Option shares shall vest in equal monthly installments thereafter so that all of the Options shall vest on the
48th month anniversary of the Effective Date. Upon the consummation of: (i) a Change in Control Transaction (as defined in the
Plan), (ii) a going public transaction in which the Company enters into one or a series of transactions for: (A) any merger, consolidation,
joint venture or other business combination pursuant to which a majority of the business of Company is combined with that of a
special purpose acquisition company or other blank-check company that has a class of equity securities publicly listed on the New
York Stock Exchange or Nasdaq (“SPAC”); (B) the acquisition by a SPAC, directly or indirectly, of a majority of
the capital stock of Company, by way of a negotiated purchase or any other means; and/or (C) the acquisition by a SPAC, directly
or indirectly, of a majority of the assets, properties and/or businesses of Company, by way of a direct or indirect purchase, lease,
license, exchange, joint venture or other means; or (iii) an initial public offering of the Company’s shares, 100% of the
remaining unvested Option shares shall be immediately vested and exercisable. The Option will be an incentive stock option to the
maximum extent allowed by the tax code. However, Executive may elect NSO treatment in Executive’s sole discretion. To the
extent not inconsistent with this Agreement, the Option shall be subject to the other terms and conditions set forth in the Company’s
2022 Equity Incentive Plan (the “Plan”) and in the Company’s standard form of Stock Option Agreement (the
“Stock Agreement”).

 

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(d)           Reimbursement
of Business Expenses. Executive is authorized to incur reasonable expenses (including telephone, commercial air travel, and entertainment)
in carrying out Executive’s duties hereunder and shall, upon receipt by the Company of proper documentation with respect
thereto (setting forth the amount, business purpose and establishing payment) be reimbursed for all such business expenses incurred
during the Period of Employment, subject to the Company’s written expense reimbursement policies and any written pre-approval
policies in effect from time to time.

 

(e)           Clawback
Policy. To the extent required by applicable law or regulation, any applicable stock exchange listing standards or any clawback
policy adopted by the Company pursuant to any such law, regulation or stock exchange listing standards, or to comport with good
corporate governance practices, the Annual Bonus and any other incentive compensation granted to Executive (whether pursuant to
this Employment Agreement or otherwise) shall be subject to the provisions of any applicable clawback policies or procedures, which
may provide for forfeiture and/or recoupment of such amounts paid or payable under this Employment Agreement or otherwise, including
incentive equity awards granted to Executive.

 

		4.	Executive Benefits.

 

(a)           Company
Executive Benefit Plans. During the Period of Employment, Executive shall be provided the opportunity to participate in all standard
employee benefit programs made available by the Company to the Company’s employees generally, in accordance with the eligibility
and participation provisions of such plans and as such plans or programs may be in effect from time to time. The Company reserves
the right to amend any employee benefit plan, policy, program or arrangement from time to time, or to terminate such plan, policy,
program or arrangement, consistent with the terms thereof at any time and for any reason without providing Executive with notice.

 

(b)           Vacation
and Other Leave. During the Period of Employment, Executive shall be eligible to receive paid vacation in accordance with and
subject to the Company’s vacation policies in effect from time to time. Vacations are to be taken at times mutually agreeable
to the Company and the Executive.

 

		5.	Termination of Employment.

 

(a)           Termination
by the Company; Termination Due to Death. Executive’s employment with the Company and the Period of Employment may be
terminated by the Company immediately upon notice to Executive or due to Executive’s Disability (as defined below). Executive’s
employment with the Company, and the Period of Employment, shall automatically terminate upon Executive’s death.

 

(b)           Termination
by Executive. Executive’s employment with the Company, and the Period of Employment, may be terminated by Executive for
any reason with no less than ninety (90) days’ advance written notice to the Company. Upon Executive’s resignation,
Executive shall cooperate as reasonably requested by the Board to effectuate an orderly transition.

 

(c)           Benefits
upon Termination. If Executive’s employment with the Company is terminated during the Period of Employment for any reason
by the Company or by Executive, the Company shall have no further obligation to make or provide to Executive, and Executive shall
have no further right to receive or obtain from the Company, any payments or benefits except as follows:

 

(i)       The
Company shall pay Executive (or, in the event of Executive’s death, Executive’s estate) any Accrued Obligations (as
defined below) within the thirty (30) day period following the date Executive’s employment terminates (the “Separation
Date”), or such earlier date as may be required by applicable law, and Executive shall receive any vested accrued benefits
for which Executive remains eligible under the Company’s employee welfare benefit and retirement plans, payable according
to the terms of such plans.

 

    	 	 	 

     

    

(ii)       Executive
and Executive’s eligible dependents shall be eligible for continued coverage under the group medical care plans provided
to employees of the Company in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”)
and/or state law, subject to the terms and conditions thereof, and at Executive’s own expense.

 

(d)           Executive
agrees that the payments and benefits contemplated by Section 5(c) shall constitute the exclusive and sole remedy for any termination
of Executive’s employment, and Executive covenants not to assert or pursue any other remedies, at law or in equity; provided
that, nothing herein shall preclude Executive from contesting the grounds for termination in the event of a termination due to
Disability, or otherwise interfere with Executive’s ability to apply for unemployment, workers’ compensation, or disability
insurance benefits.

 

		(e)	Certain Defined Terms. As used in this Agreement:

 

(i)       “Accrued
Obligations” means (A) any Base Salary that had accrued but had not been paid (including any amount for accrued and unused
vacation time payable in accordance with the Company’s vacation policy then in effect or applicable law) on or before the
Separation Date, (B) any reimbursement due to Executive pursuant to Section 3(c) for expenses incurred by Executive on or before
the Separation Date and (C) any other vested benefits or vested amounts due and owed to Executive under the terms of any plan,
program or arrangement of the Company.

 

(ii)       “Disability”
means a physical or mental impairment that renders Executive unable to perform the essential functions of Executive’s employment
with the Company, even with reasonable accommodation that does not impose an undue hardship on the Company, for ninety (90) days
(whether or not continuous) during any period of one-hundred eighty (180) consecutive days, unless a longer period is required
by federal or state law, in which case that longer period would apply.

 

(iii)       “Section
409A” means Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations,
rules and other guidance promulgated thereunder.

 

Officer/Board/Committee
Resignations. Unless as otherwise agreed to in writing by the Company and Executive, upon the termination of Executive’s
employment for any reason, Executive will be deemed to have resigned, without any further action by Executive, from any and all
positions including, but not limited to, any officer, board and/or director positions or positions as a fiduciary of any of the
employee benefit plans of the Company Group that Executive, immediately prior to such termination, (i) held within the Company
Group and (ii) held with any other entities at the direction of, or as a result of Executive’s affiliation with, the Company
Group. If, for any reason, this Section 5(f) is deemed to be insufficient to effectuate such resignations, then Executive will,
upon the Company’s request, execute any documents or instruments that the Company may reasonably deem necessary to effectuate
such resignations.

 

    	 

     

    

 

		(g)	Section 409A.

 

		(i)	It is the intention of the parties that Executive’s performance of the services under this
Agreement and payments to Executive under this Agreement shall not implicate Section 409A. In the event that Executive’s
performance of the services or any payment due to the Executive under the employment agreement would subject Executive to the additional
tax and interest imposed by Section 409A, or any interest or penalties with respect to such additional tax, the Company shall modify
this Agreement to make it compliant with Section 409A and maintain the value of the payments and benefits under the Agreement.
In no event, however, shall the Company be liable for any tax, interest or penalty imposed on Executive under Section 409A or any
damages for failing to comply with Section 409A.

 

(ii)           If
at the time of the Executive’s termination of employment, the Executive is a “specified employee,” under Section
409A, any and all amounts payable under the Agreement on account of such termination of employment that would (but for this provision)
be payable within six (6) months following the date of termination, shall instead be paid on the next business day following the
expiration of such six (6) month period or, if earlier, the date of the Executive’s death; except (A) to the extent of amounts
that do not constitute a deferral of compensation within the meaning of Section 409A; (B) benefits which qualify as excepted welfare
benefits pursuant to Section 409A-1(a)(5); or (C) other amounts or benefits that are not subject to the requirements of Section
409A. Each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments
under this Agreement is to be treated as a right to a series of separate payments.

 

(iii)           Any
reimbursement payment or in-kind benefit due to Executive pursuant to Section 3(c), to the extent that such reimbursements or in-kind
benefits are taxable to Executive, shall be paid on or before the last day of Executive’s taxable year following the taxable
year in which the related expense was incurred. Executive agrees to provide prompt notice to the Company of any such expenses (and
any other documentation that the Company may reasonably require to substantiate such expenses) in order to facilitate the Company’s
timely reimbursement of the same. Reimbursements and in-kind benefits pursuant to Section 3(c) are not subject to liquidation or
exchange for another benefit and the amount of such benefits that Executive receives in one taxable year shall not affect the amount
of such reimbursements or benefits that Executive receives in any other taxable year.

 

(iv)           For
purposes of Section 409A, Executive’s right to receive any installment payments hereunder shall be treated as a right to
receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with reference
to a number of days (e.g., payment shall be made within thirty (30) days following the date of termination), the actual date of
payment within the specified period shall be within the sole discretion of the Company.

 

		6.	Restrictive Covenants.

 

		(a)	Non-Disclosure and Non-Use of Confidential Information.

 

(i)            Executive
agrees that during the Period of Employment and following the termination thereof for any reason, the Executive shall not, and
shall cause his affiliates and representatives not to, disclose to any individual or natural person, partnership (including a limited
liability partnership), corporation, limited liability company, association, joint stock company, trust, joint venture, unincorporated
organization or governmental authority (each, a “Person”), except (i) to the Executive’s legal, financial,
tax or accounting advisors, or (ii) as compelled by law, any Confidential Information for any reason or purpose whatsoever, and
the Executive shall not, and shall cause Executive’s affiliates or representatives not to, make use of any of the Confidential
Information for their own purposes or for the benefit of any Person except any Company Group Member. In the event that Executive
or any of Executive’s affiliates or representatives are compelled by law to disclose any Confidential Information, the Executive
shall promptly provide written notice to the Company of the request or requirement so that the Company may seek (at the Company’s
sole cost and expense) an appropriate protective order or waive compliance with the provisions of this Section 6(a). If, in the
absence of a protective order or the receipt of a waiver hereunder, the Executive or any of the Executive’s affiliates or
representatives are compelled by law to disclose any Confidential Information to any tribunal, the Executive or the Executive’s
affiliates, as applicable, may disclose the Confidential Information to the tribunal; provided, that the Executive or the
Executive’s affiliates, as applicable, shall use commercially reasonable efforts to obtain, at the request and sole expense
of the Company, an order or other assurance that confidential treatment shall be accorded to such portion of the Confidential Information
required to be disclosed as the Company shall designate.

 

    	 

     

    

 

(ii)           For
purposes of this Agreement, “Confidential Information” shall mean any information of a confidential or proprietary
nature concerning the business or affairs of the Company Group; provided however, “Confidential Information”
shall not include information which (i) is or becomes generally available to the public other than as a result of disclosure by
Executive or any of the Executive’s affiliates to the receiving party in violation of this Agreement or (ii) becomes available
to the Executive or any of the Executive’s affiliates on a non-confidential basis from a source other than any Company Group
Member, so long as such source is not known by the Executive to be bound by a confidentiality agreement with any of the foregoing
prohibiting such disclosure.

 

(iii)          For
the avoidance of doubt, this Section 6(a) does not prohibit or restrict Executive (or Executive’s attorney) from responding
to any inquiry about this Agreement or its underlying facts and circumstances by the Securities and Exchange Commission, the Financial
Industry Regulatory Authority, or any other self-regulatory organization or governmental authority, or making other disclosures
that are protected under the whistleblower provisions of federal law or regulation. Executive understands and acknowledges that
Executive does not need the prior authorization of the Company to make any such reports or disclosures and that Executive is not
required to notify the Company that Executive has made such reports or disclosures.

 

(iv)          Notwithstanding
anything in this Section 6(a) or elsewhere in this Agreement to the contrary, Executive understands that Executive may, pursuant
to the U.S. Defend Trade Secrets Act of 2016 (“DTSA”), without informing the Company prior to any such disclosure,
disclose Confidential Information (A) in confidence to a federal, state, or local government official, either directly or indirectly,
or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law or (B) in a complaint or other
document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, without informing the Company
prior to any such disclosure, if Executive files a lawsuit against the Company for retaliation for reporting a suspected violation
of law, Executive may, pursuant to the DTSA, disclose Confidential Information to Executive’s attorney and use the Confidential
Information in the court proceeding or arbitration, provided that Executive files any document containing the Confidential Information
under seal and does not otherwise disclose the Confidential Information, except pursuant to court order. Without prior authorization
of the Company, however, the Company does not authorize Executive to disclose to any third party (including any government official
or any attorney Executive may retain) any communications that are covered by the Company’s attorney-client privilege.

 

		(b)	Intellectual Property Rights.

 

(i)       Executive
hereby assigns, transfers, and conveys to the Company all of Executive’s right, title and interest in and to all Work Product
(as defined below). Executive agrees that all Work Product belongs in all instances to the Company. Executive will promptly disclose
such Work Product to the Company and perform all actions reasonably requested by the Company (whether during or after the Period
of Employment) to establish and confirm the Company’s ownership of such Work Product (including, without limitation, the
execution and delivery of assignments, consents, powers of attorney, and other instruments) and to provide reasonable assistance
to the Company (whether during or after the Period of Employment) in connection with the prosecution of any applications for patents,
trademarks, trade names, service marks or reissues thereof or in the prosecution or defense of interferences relating to any Work
Product. Executive recognizes and agrees that the Work Product, to the extent copyrightable, constitutes works for hire under the
copyright laws of the United States.

 

    	 

     

    

 

(ii)       For
purposes of this Agreement, “Work Product” means all inventions, innovations, improvements, technical information,
systems, software developments, methods, designs, analyses, drawings, reports, service marks, trademarks, trade names, trade dress,
logos and all similar or related information (whether patentable or unpatentable) which relates to the actual business, operations,
research and development, or existing or future products or services of the Company Group and which are conceived, developed, or
made by Executive (whether or not during usual business hours and whether or not alone or in conjunction with any other person)
during the Period of Employment together with all patent applications, letters patent, trademark, trade name, and service mark
applications or registrations, copyrights and reissues thereof that may be granted for or upon any of the foregoing. Notwithstanding
the foregoing, “Work Product” shall not include the patents and other assets set forth on Exhibit A 
hereto. Executive hereby represents and warrants that the patents and other assets owned by Executive set forth on Exhibit A
are not related in any way to the Company Group, except as stated therein.

 

(c)           Non-Solicitation
and Non-Interference. During the Period of Employment, Executive will not, and will cause Executive’s affiliates not
to use confidential information to, directly or indirectly through any other Person (whether as an officer, manager, director,
employee, partner, consultant, holder of equity or debt investment, lender or any other manner or capacity): (i) directly or indirectly
contact, induce or solicit (or assist any Person to contact, induce or solicit) for employment any person who is, or within the
preceding 12 months was, an executive employed by a Company Group Member; or (ii) induce or attempt to induce any customer, supplier,
or licensee of the Company Group within the preceding 12 months to cease doing business with the Company Group or in any way interfere
with the relationship between the Company Group and any such customer, supplier, or licensee.

 

(d)           Non-Disparagement.
During the Period of Employment and following the termination thereof for any reason, Executive shall not make any negative
statements or communications about any Company Group Member or any of their respective direct or indirect equity holders, directors,
managers, officers or employees. Notwithstanding the foregoing, nothing in this Agreement is intended to require any person to
make any untruthful statement or to violate any law.

 

		7.	Acknowledgment and Enforcement of Covenants.

 

(a)           Acknowledgment.
Executive acknowledges that Executive has become familiar, or will become familiar, with the Company Group Members’ trade
secrets and with other Confidential Information concerning the Company Group Members and their respective predecessors, successors,
customers, and suppliers, and that Executive’s services are of special, unique, and extraordinary value to the Company. Executive
acknowledges and agrees that the Company would not enter into this Agreement, providing for compensation and other benefits to
Executive on the terms and conditions set forth herein, but for Executive’s agreements herein (including those set forth
in Section 6). Furthermore, Executive acknowledges and agrees that the Company will be providing Executive with additional special
knowledge after the Effective Date, with such special knowledge to include additional Confidential Information and trade secrets.
Executive agrees that the covenants set forth in Section 6 (collectively, the “Restrictive Covenants”) are reasonable
and necessary to protect the Company Group’s trade secrets and other Confidential Information, proprietary information, goodwill,
stable workforce, and customer relations.

 

    	 

     

    

 

(b)           Representations.
Without limiting the generality of Executive’s agreement with the provisions of Section 7(a), Executive (i) represents
that Executive is familiar with and has carefully considered the Restrictive Covenants, (ii) represents that Executive is fully
aware of Executive’s obligations hereunder, (iii) agrees to the reasonableness of the length of time, scope, and geographic
coverage, as applicable, of the Restrictive Covenants, (iv) agrees that the Company Group currently conducts business within the
United States, and (v) agrees that the Restrictive Covenants will continue in effect for the applicable periods set forth above
regardless of whether Executive is then entitled to receive severance pay or benefits from the Company. Executive understands that
the Restrictive Covenants may limit Executive’s ability to earn a livelihood in a business similar to the business of the
Company Group, but Executive nevertheless believes that Executive has received and will receive sufficient consideration and other
benefits as an employee of the Company and as otherwise provided hereunder or as described in the recitals hereto to clearly justify
such restrictions which, in any event (given Executive’s education, skills, and ability), Executive does not believe would
prevent Executive from otherwise earning a living. Executive agrees that the Restrictive Covenants do not confer a benefit upon
the Company disproportionate to the detriment of Executive.

 

(c)           Enforcement.
Executive acknowledges and agrees that money damages would not be an adequate remedy for any breach or threatened breach of
the provisions of the Restrictive Covenants and that the Company or any of its successors or assigns shall, in addition to any
other rights and remedies existing in their favor, be entitled to specific performance, injunctive and/or other relief from any
court of competent jurisdiction in order to enforce or prevent any violations of the Restrictive Covenants (including the extension
of the restricted periods set forth in Section 6 by a period equal to the length of any legal proceeding, arbitration, or other
action necessary to stop such violation), provided, that Executive is found to have been in violation of the Restrictive
Covenants by a court of competent jurisdiction. Any injunction shall be available without the posting of any bond or other security.
In the event of an alleged breach or violation by Executive of any Restrictive Covenant, the restricted period will be tolled for
the Executive until such alleged breach or violation is resolved; provided, that if Executive is found to have not violated
the Restrictive Covenants, then the restricted period will not be deemed to have been tolled.

 

(d)           Severability.
If, at the time of enforcement of the Restrictive Covenants, a court or arbitrator holds that the Restrictive Covenants are
unreasonable under the circumstances then existing, the parties agree that the maximum period, scope or geographical area reasonable
under such circumstances shall be substituted for the stated period, scope or area determined to be reasonable under the circumstances
by such court or arbitrator, as applicable. Executive covenants and agrees that Executive will not seek to challenge the enforceability
of the Restrictive Covenants against any Company Group Member, nor will Executive assert as a defense to any action seeking enforcement
of the Restrictive Covenants (including an action seeking injunctive relief) that such provisions are not enforceable due to lack
of sufficient consideration received by Executive.

 

8.            Withholding
Taxes/Authorized Deductions. Notwithstanding anything herein to the contrary, the Company may withhold (or cause to be
withheld) from any amounts otherwise due or payable under or pursuant to this Agreement such federal, state and local income, social
security, employment or other taxes as may be required to be withheld pursuant to any applicable law or regulation, and make such
deductions as may be applicable pursuant to the Company’s policies and employee benefit plans.

 

 

9.           Cooperation.
During and after the Period of Employment, Executive shall cooperate fully with any investigation or inquiry by the Company, or
any governmental or regulatory agency or body concerning the Company or any other member of the Company, provided that the Company
shall reimburse Executive’s reasonable expenses incurred in providing such cooperation (including, without limitation, attorneys’
fees and lodging and meals) subject to Executive’s delivery of written notice to the Company prior to the time such expenses
are incurred.

 

10.        Governing
Law. This Agreement will be governed by and construed in accordance with the laws of the State of California without giving
effect to any choice or conflict of law provision or rule (whether of the State of California or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State of California.

 

    	 

     

    

 

11.        Consent
to Jurisdiction. All judicial proceedings brought against any party arising out of or relating to this Agreement, or any
obligations or liabilities hereunder, shall be brought and maintained in the courts of the State of California or the federal courts
located in the State of California. By executing this Agreement, each party irrevocably: (a) accepts generally and unconditionally
the exclusive jurisdiction and venue of such courts; (b) waives, to the fullest extent permitted by applicable law any objection
which they may now or hereafter have to the laying of venue of any such dispute brought in such court or any defense of inconvenient
forum for the maintenance of such dispute; (c) agrees that service of all process in any such proceeding in any such court may
be made by nationally recognized overnight courier or by registered or certified mail, return receipt requested, to such party
at its address provided in accordance with Section 18; (d) agrees that service as provided in clause (c) above is sufficient to
confer personal jurisdiction over the party in any such proceeding in any such court, and otherwise constitutes effective and binding
service in every respect; (e) agrees that the parties retain the right to serve process in any other manner permitted by law but
shall not have any right to bring proceedings against the other party in the courts of any other jurisdiction; and (f) agrees that
the provisions of this Section 11 relating to jurisdiction and venue shall be binding and enforceable to the fullest extent permissible
under applicable law. Notwithstanding the foregoing, the Company may seek injunctive or equitable relief to enforce the terms of
this Agreement in any court of competent jurisdiction.

 

12.        Waiver
of Jury Trial. Each of the parties hereto hereby irrevocably waives all right to trial by jury in any action, proceeding
or counterclaim arising out of or relating to this Agreement.

 

13.         Severability.
It is the desire and intent of the parties hereto that the provisions of this Agreement be enforced to the fullest extent permissible
under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular
provision of this Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable
under applicable law, such provision, as to such jurisdiction, shall be ineffective without invalidating the remaining provisions
of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

 

14.         Indemnification.
The Company shall indemnify Executive in accordance with applicable law and to the extent set forth in the Company’s by-laws
and certificate of incorporation and the governing documents of any applicable Company Group Members. Executive shall also be entitled
to coverage under a director and officer liability policy at a level no less favorable than that made available to other similarly
situated employees of the Company or its affiliates.

 

15.         Entire
Agreement; Amendment. This Agreement embodies the entire agreement of the parties hereto respecting the matters within
its scope and supersedes all prior agreements (including, without limitation, any offer letters, term sheets, consulting agreements
and correspondence relating thereto), whether written or oral, that directly or indirectly bear upon the subject matter hereof,
excluding any restrictive covenant agreement by and between Executive and any Company Group Member. This Agreement may not be amended,
modified or changed (in whole or in part), except by written agreement executed by both of the parties hereto.

 

16.          Waiver.
No waiver of any of any provision of this Agreement will constitute or be deemed to constitute a waiver of any other provision
of this Agreement, nor will any such waiver constitute a continuing wavier unless otherwise expressly provided.

 

17.          Successors
and Assigns. This Agreement cannot be assigned by the Company without the prior written consent of Executive, other than
(a) an assignment to an affiliate of the Company made as part of an internal reorganization applicable to employees of the Company
generally or (b) to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all
or substantially all of the business or assets of the Company, and shall be binding and inure to the benefit of the Company, its
successors and any permitted assigns. No right, obligation or duty or duty of this Agreement may be assigned by Executive without
the prior written consent of the Company.

 

    	 

     

    

 

18.          Notices.
Any notice provided for in this Agreement must be in writing and must be either personally delivered, transmitted via telecopier
or email, mailed by first class mail (postage prepaid and return receipt requested) or sent by reputable overnight courier service
(charges prepaid) to the recipient at the address below indicated or at such other address or to the attention of such other person
as the recipient party has specified by prior written notice to the sending party. Notices will be deemed to have been given hereunder
and received when delivered personally, when received if transmitted via telecopier or email, five days after deposit in the U.S.
mail and one day after deposit with a reputable overnight courier service.

 

If to the Company:

 

Estrella Biopharma, Inc.

5858 Horton Street, Suite 170 

Emeryville, CA 94608

Attention: Cheng Liu

 

If to Executive, to the address most recently on file
in the payroll records of the Company.

 

19.          Section
280G. Payments under this Agreement shall be made without regard to whether the deductibility of such payments (or any
other payments to or for the benefit of the Executive) would be limited or precluded by Section 280G of the Code without regard
to whether such payments (or any other payments) would subject the Executive to the federal excise tax levied on certain “excess
parachute payments” under Section 4999 of the Code; provided, that if the total of all payments to or for the benefit of
the Executive (whether under this Agreement or otherwise), after reduction for all state and federal taxes (including the tax described
in Section 4999 of the Code, if applicable) with respect to such payments (“Executive’s Total After-Tax Payments”),
would be increased by the limitation or elimination of any payment under this Agreement, amounts payable under this Agreement shall
be reduced to the extent, and only to the extent, necessary to maximize the Executive’s Total After-Tax Payments. The determination
as to whether and to what extent payments under this Agreement are required to be reduced in accordance with the preceding sentence
shall be made at the Company’s expense by a nationally recognized accounting firm after considering in good faith all available
exemptions, including a fair valuation of reasonable compensation for services rendered by Executive and a fair valuation for any
post-employment covenants.

 

20.          Legal
Counsel; Mutual Drafting. Each party recognizes that this is a legally binding contract and acknowledges and agrees that
they have had the opportunity to consult with legal counsel of their choice. Each party has cooperated in the drafting, negotiation
and preparation of this Agreement.

 

 

Hence, in any construction to be made of
this Agreement, the same shall not be construed against either party on the basis of that party being the drafter of such language.
Executive agrees and acknowledges that Executive has read and understands this Agreement, is entering into it freely and voluntarily,
and has been advised to seek counsel prior to entering into this Agreement and has had ample opportunity to do so.

 

21.          Counterparts.
This Agreement may be executed in any number of counterparts, each of

which shall be deemed an original as against
any party whose signature appears thereon, and all of which together shall constitute one and the same instrument.

 

[Signatures on Following Page]

 

    	 

     

    

 

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

 

	 	“COMPANY”	 
	 	 	 	 
	 	Estrella Biopharma Inc. 	 
	 	 	 	 
	 	By:	/s/ Qian Yang	 
	 	 	 	 
	 	Name: 	Qian Yang	 
	 	Title: 	Chief Operating Officer	 

 

	 	“EXECUTIVE”	 
	 	 	 
	 	/s/Qian Yang	 
	 	Qian Yang	 

 

[Signature Page to Employment Agreement]

 

    	 

     

    

 

EXHIBIT A

 

EXCLUDED FROM WORK PRODUCT

 

I have no inventions.

 

The following is a complete list of
all pre-existing intellectual property and other assets to be excluded from the definition of Work Product relative to the subject
matter of my employment with the Company that have been created by me, alone or jointly with others, prior to the Effective Date,
which might relate to the Company Group’s present business:

  

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

 

_________ Additional sheets attached.

 

	Executive:	/s/Qian Yang	 	Date: 	May 27, 2022	 

 

    	 	A-1Exhibit 10.12

 

ESTRELLA
BIOPHARMA, INC.

OPTION GRANT NOTICE

(2022 EQUITY INCENTIVE PLAN)

 

Estrella Biopharma, Inc. (the “Company”),
pursuant to its 2022 Equity Incentive Plan (the “Plan”), hereby grants to Optionholder an option to purchase
the number of shares in the capital of the Company set forth below (this “Option”). This Option is subject
to all of the terms and conditions as set forth herein and in the US Option Agreement, the Plan, and the Notice of Exercise, all
of which are attached hereto and incorporated herein in their entirety. Capitalized terms not explicitly defined herein but defined
in the Plan or the US Option Agreement will have the same definitions as in the Plan or the US Option Agreement. If there is any
conflict between the terms herein and the Plan, the terms of the Plan will control.

 

	 	Optionholder:	 	 
	 	Date of Grant:	 	 
	 	Vesting Commencement Date:	 	 
	 	Number of Ordinary Shares Subject to Option:	 	 
	 	Exercise Price (US$ Per Share):	 	 
	 	Total Exercise Price (US$):	 	 
	 	Expiration Date:	 	 

 

	Type of Grant:	□  Incentive Share
Option1	□  Nonstatutory Share Option
	 	 
	Exercise Schedule:	□  Same as Vesting Schedule	□  Early Exercise Permitted
	 
	Vesting Schedule:	25% of the shares shall vest on the first anniversary of the Vesting Commencement Date; the balance of the shares vest in a series of thirty-six (36) successive equal monthly installments measured from the first anniversary of the Vesting Commencement Date, provided that the Optionholder continues to provide Continuous Services (as defined in the Plan) to the Company as of any each relevant vesting date.
	 	 
	Payment:	By one or a combination of the following methods (as such methods are described in the US Option Agreement):
	 	 
	 	☐By cash or check

    ☐Pursuant to a Regulation T Program if the Shares are publicly traded

    ☐By delivery of already-owned shares if the Shares are publicly traded

    ☐By net exercise2
	 	 	 	 

 

Additional Terms/Acknowledgements:
The undersigned Optionholder acknowledges receipt of, and understands and agrees to, this Option Grant Notice, the US Option Agreement
and the Plan. Optionholder acknowledges and agrees that this Option Grant Notice and the US Option Agreement may not be modified,
amended or revised except in writing signed by Optionholder and a duly authorized officer of the Company. Optionholder further
acknowledges that as of the Date of Grant, this Option Grant Notice, the US Option Agreement, and the Plan set forth the entire
understanding between Optionholder and the Company regarding the acquisition of shares of the Company and supersede all prior oral
and written agreements, promises and/or representations on that subject with the exception of (i) options previously granted and
delivered to Optionholder under the Plan, and (ii) the agreement between the Optionholder and the Company listed below only.

 

	 	Other Agreements:	 	 

 

	Estrella Biopharma, Inc.	Optionholder:
	 	 
	By:_______________________________________	 
	Name:	Signature
	 	 
	 	 
	 	 
	Title:	 
	Date:_____________________________	Date:______________________

 

Attachments: US Option Agreement,
2022 Equity Incentive Plan and Notice of Exercise

 

 

 

		1	If this is an Incentive Share Option, it (plus other outstanding
Incentive Share Options) cannot be first exercisable for more than US$100,000 in value (measured by exercise price) in
any calendar year. Any excess over US$100,000 is a Nonstatutory Share Option.

		2	An Incentive Share Option may not be exercised by a net
exercise arrangement.

 

    	 	 	 

     

    

 

ATTACHMENT
I

 

ESTRELLA
BIOPHARMA, INC.

2022 EQUITY INCENTIVE PLAN

 

US OPTION
AGREEMENT

 

Pursuant to your Option
Grant Notice (“Grant Notice”) and this US Option Agreement, Estrella Biopharma, Inc. (the “Company”)
has granted you an Option under its 2022 Equity Incentive Plan (the “Plan”) to purchase the number of
Ordinary Shares indicated in your Grant Notice at the exercise price indicated in your Grant Notice. The Option is granted to you
effective as of the date of grant set forth in the Grant Notice (the “Date of Grant”). If there is any
conflict between the terms in this US Option Agreement and the Plan, the terms of the Plan will control. Capitalized terms not
explicitly defined in this US Option Agreement or in the Grant Notice but defined in the Plan will have the same definitions as
in the Plan.

 

The details of your
Option, in addition to those set forth in the Grant Notice and the Plan, are as follows:

 

1.             VESTING.
Your Option will vest as provided in your Grant Notice. Vesting will cease upon the termination of your Continuous Service.

 

2.             NUMBER
OF SHARES AND EXERCISE PRICE. The number of Ordinary Shares subject to your Option and your exercise price per share
in your Grant Notice will be adjusted for Capitalization Adjustments.

 

3.             EXERCISE
RESTRICTION FOR NON-EXEMPT EMPLOYEES. If you are an Employee eligible
for overtime compensation under the Fair Labor Standards Act of 1938, as amended (that is, a “Non-Exempt Employee”),
and except as otherwise provided in the Plan, you may not exercise your Option until you have completed at least six (6) months
of Continuous Service measured from the Date of Grant.

 

4.             EXERCISE
PRIOR TO VESTING (“EARLY EXERCISE”). If permitted in your Grant Notice (i.e., the “Exercise
Schedule” indicates “Early Exercise Permitted”) and subject to the provisions of your Option, you may elect at
any time that is both (i) during the period of your Continuous Service and (ii) during the term of your Option, to exercise all
or part of your Option, including the unvested portion of your Option; provided, however, that:

 

(a)       a
partial exercise of your Option will be deemed to cover first vested Ordinary Shares and then the earliest vesting installment
of unvested Ordinary Shares;

 

(b)       any
Ordinary Shares so purchased from installments that have not vested as of the date of exercise will be subject to the purchase
option in favor of the Company as described in the Company’s form of Early Exercise Share Purchase Agreement;

 

(c)       you
will enter into the Company’s form of Early Exercise Share Purchase Agreement with a vesting schedule that will result in
the same vesting as if no early exercise had occurred; and

 

(d)       if
your Option is an Incentive Share Option, then, to the extent that the aggregate Fair Market Value (determined at the Date of Grant)
of the Ordinary Shares with respect to which your Option plus all other Incentive Share Options you hold are exercisable for the
first time by you during any calendar year (under all plans of the Company and its Affiliates) exceeds one hundred thousand dollars
($100,000), your Option(s) or portions thereof that exceed such limit (according to the order in which they were granted) will
be treated as Nonstatutory Share Options.

    	 	 	 

     

    

 

5.             METHOD
OF PAYMENT. You must pay the full amount of the exercise price for the shares you wish to exercise. You may pay the
exercise price in cash or by check, bank draft or money order payable to the Company or in any other manner permitted by your Grant
Notice, which may include one or more of the following:

 

(a)       Provided
that at the time of exercise the Ordinary Shares are publicly traded, pursuant to a program developed under Regulation T as promulgated
by the Federal Reserve Board that, prior to the issuance of Ordinary Shares, results in either the receipt of cash (or check) by
the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds.
This manner of payment is also known as a “broker-assisted exercise”, “same day sale”, or “sell to
cover”.

 

(b)       Provided
that at the time of exercise the Ordinary Shares are publicly traded, by delivery to the Company (either by actual delivery or
attestation) of already-owned Ordinary Shares that are owned free and clear of any liens, claims, encumbrances or security interests,
and that are valued at Fair Market Value on the date of exercise. “Delivery” for these purposes, in the sole discretion
of the Company at the time you exercise your Option, will include delivery to the Company of your attestation of ownership of such
Ordinary Shares in a form approved by the Company. You may not exercise your Option by delivery to the Company of Ordinary Shares
if doing so would violate the provisions of any law, regulation or agreement restricting the redemption of the Company’s
shares.

 

(c)       If
this Option is a Nonstatutory Share Option, subject to the consent of the Company at the time of exercise, by a “net exercise”
arrangement pursuant to which the Company will reduce the number of Ordinary Shares issued upon exercise of your Option by the
largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price. You must pay any remaining
balance of the aggregate exercise price not satisfied by the “net exercise” in cash or other permitted form of payment.
Ordinary Shares will no longer be outstanding under your Option and will not be exercisable thereafter if those shares (i) are
used to pay the exercise price pursuant to the “net exercise,” (ii) are delivered to you as a result of such exercise,
and (iii) are withheld to satisfy your tax withholding obligations.

 

6.             WHOLE
SHARES. You may exercise your Option only for a whole number of Ordinary Shares.

 

7.              SECURITIES
LAW COMPLIANCE. In no event may you exercise your Option unless the Ordinary Shares issuable upon such exercise are
then registered under the Securities Act or under the applicable laws of another jurisdiction under which such securities may be
listed, or if not registered, the Company has determined that such exercise and the issuance of the shares would be exempt from
the registration requirements of the Securities Act. The exercise of your Option also must comply with all other applicable laws
and regulations governing your Option, including those of the United States, the State of Delaware and your country of residence,
and you may not exercise your Option if the Company determines that such exercise would not be in material compliance with such
laws and regulations (including any restrictions on exercise required for compliance with Treas. Reg. 1.401(k)-1(d)(3), if applicable).
You understand that the Company is under no obligation to register or qualify the Ordinary Shares with any securities commission
(including U.S. Securities and Exchange Commission) or to seek approval or clearance from any governmental authority for the issuance
or sale of the shares. Further, you agree that the Company shall have unilateral authority to amend the Plan and the Agreement
without your consent to the extent necessary to comply with securities or other laws applicable to issuance of shares.

 

    	 	 	 

     

    

 

8.             TERM.
You may not exercise your Option before the Date of Grant or after the expiration of the Option’s term. The term of your
Option expires, subject to the provisions of Section 5(h) of the Plan, upon the earliest of the following:

 

(a)       immediately
upon the termination of your Continuous Service for Cause;

 

(b)       three
(3) months after the termination of your Continuous Service for any reason other than Cause, your Disability or your death (except
as otherwise provided in Section 8(d) below); provided, however, that if during any part of such three (3) month
period your Option is not exercisable solely because of the condition set forth in the Section above relating to “Securities
Law Compliance,” your Option will not expire until the earlier of the Expiration Date or until it has been exercisable for
an aggregate period of three (3) months after the termination of your Continuous Service; provided further, if (i) you are
a Non-Exempt Employee, (ii) your Continuous Service terminates within six (6) months after the Date of Grant, and (iii) you have
vested in a portion of your Option at the time of your termination of Continuous Service, your Option will not expire until the
earlier of (x) the later of (A) the date that is seven (7) months after the Date of Grant, and (B) the date that is three (3) months
after the termination of your Continuous Service, and (y) the Expiration Date;

 

(c)       twelve
(12) months after the termination of your Continuous Service due to your Disability (except as otherwise provided in Section 8(d))
below;

 

(d)       eighteen
(18) months after your death if you die either during your Continuous Service

 

(e)       within
three (3) months after your Continuous Service terminates for any reason other than Cause or your death or Disability;

 

(f)       the
Expiration Date indicated in your Grant Notice; or

 

(g)       the
day before the tenth (10th) anniversary of the Date of Grant.

 

If your Option is an Incentive Share Option,
note that to obtain the federal income tax advantages associated with an Incentive Share Option, the Code requires that at all
times beginning on the Date of Grant and ending on the day three (3) months before the date of your Option’s exercise, you
must be an employee of the Company or an Affiliate, except in the event of your death or Disability. The Company has provided for
extended exercisability of your Option under certain circumstances for your benefit but cannot guarantee that your Option will
necessarily be treated as an Incentive Share Option if you continue to provide services to the Company or an Affiliate as a Consultant
or Director after your employment terminates or if you otherwise exercise your Option more than three (3) months after the date
your employment with the Company or an Affiliate terminates.

 

9.             EXERCISE.

 

(a)       You
may exercise the vested portion of your Option (and the unvested portion of your Option if your Grant Notice so permits) during
its term by (i) delivering a Notice of Exercise (in a form designated by the Company) or completing such other documents and/or
procedures designated by the Company for exercise and (ii) paying the exercise price and any applicable withholding taxes to the
Company’s Secretary, share plan administrator, or such other person as the Company may designate, together with such additional
documents as the Company may then require.

    	 	 	 

     

    

 

(b)       By
exercising your Option you agree that, as a condition to any exercise of your Option, the Company may require you to enter into
an arrangement providing for the payment by you to the Company of any tax withholding obligation of the Company arising by reason
of (i) the exercise of your Option, (ii) the lapse of any substantial risk of forfeiture to which the Ordinary Shares are subject
at the time of exercise, or (iii) the disposition of Ordinary Shares acquired upon such exercise.

 

(c)       If
your Option is an Incentive Share Option, by exercising your Option you agree that you will notify the Company in writing within
fifteen (15) days after the date of any disposition of any of the Ordinary Shares issued upon exercise of your Option that occurs
within two (2) years after the Date of Grant or within one (1) year after such Ordinary Shares are transferred upon exercise of
your Option.

 

(d)       By
exercising your Option you agree that you will not sell, dispose of, transfer, make any short sale of, grant any option for the
purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale with respect to any Ordinary
Shares or other securities of the Company held by you, for a period of one hundred eighty (180) days following the effective date
of a registration statement of the Company filed under the Securities Act or under the applicable laws of another jurisdiction
under which such securities may be listed or such longer period as the underwriters or the Company will request to facilitate compliance
with FINRA Rule 2711 or NYSE Member Rule 472 or any successor or similar rule or regulation (the “Lock-Up Period”);
provided, however, that nothing contained in this section will prevent the exercise of a repurchase option, if any,
in favor of the Company during the Lock-Up Period. You further agree to execute and deliver such other agreements as may be reasonably
requested by the Company or any underwriters of the Company’s shares that are consistent with the foregoing or that are necessary
to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with
respect to your Ordinary Shares until the end of such period. You also agree that any transferee of any Ordinary Shares or other
securities) of the Company held by you will be bound by this Section 9(d). The underwriters of the Company’s shares are intended
third party beneficiaries of this Section 9(d) and will have the right, power and authority to enforce the provisions hereof as
though they were a party hereto.

 

(e)       You
agree, with effect from the date of the exercise of your Option, to be bound by the terms of any and all Shareholders Agreements
as if the same were set forth herein and will observe and discharge the terms and conditions of such Shareholders Agreements in
all respects as if you had been a party thereto, and you shall be deemed to be comprised in the expressions “the holder of
Ordinary Shares” and the “parties” as therein mentioned. By exercising your Option you agree that, as a condition
to any exercise of your Option, the Company may require you to execute and deliver a deed of adherence to any Shareholders Agreement
and require you to represent and warrant that you have the capacity to enter into, exercise your rights and lawfully perform and
comply with the terms of any Shareholders Agreement; and that your obligations under any Shareholders Agreement are valid and binding
upon you. The agreement set forth in this Section 8(c) is supplemental to and, except only where the context does not so admit,
shall be construed as one and interpreted in accordance with any Shareholders Agreement and subject only to the agreements and
variations herein expressly agreed and declared. All other conditions, covenants, provisions, powers and terms contained or subsisting
in any Shareholders Agreement shall remain in full force and effect and shall be read and construed and be enforceable as if the
agreements and variations herein were inserted therein by way of addition or substitution, as the case may be, and nothing herein
shall affect or impair any Shareholders Agreement or its enforceability. For purposes of this US Option Agreement, the “Shareholders
Agreement(s)” shall mean any and all agreements between the Company and all or certain shareholders of the Company
that may be entered into from time to time, and/or one or more agreements among the Company, you and other parties thereto in such
form determined from time to time by the Company in its sole discretion, that include terms and conditions that provide or impose
in respect of the Company and/or any shareholders restrictions and obligations with respect to the transfer or voting of equity
securities of the Company and such other terms and conditions as the Board may require, if any, including any amendment or supplement
to or restatement of any such agreement from time to time.

 

    	 	 	 

     

    

 

10.           TRANSFERABILITY.
Except as otherwise provided in this Section 10, your Option is not transferable, except by Will or by the laws of descent and
distribution, and is exercisable during your life only by you.

 

(a)       Certain
Trusts. Upon receiving written permission from the Board or its duly authorized designee, you may transfer your Option to a trust
if you are considered to be the sole beneficial owner (determined under Section 671 of the Code and applicable state law) while
the Option is held in the trust. You and the trustee must enter into transfer and other agreements required by the Company.

 

(b)       Domestic
Relations Orders. Upon receiving written permission from the Board or its duly authorized designee, and provided that you and the
designated transferee enter into transfer and other agreements required by the Company, you may transfer your Option pursuant to
the terms of a domestic relations order, official marital settlement agreement or other divorce or separation instrument as permitted
by Treasury Regulation 1.421-1(b)(2) that contains the information required by the Company to effectuate the transfer. You are
encouraged to discuss the proposed terms of any division of this Option with the Company prior to finalizing the domestic relations
order or marital settlement agreement to help ensure the required information is contained within the domestic relations order
or marital settlement agreement. If this Option is an Incentive Share Option, this Option may be deemed to be a Nonstatutory Share
Option as a result of such transfer.

 

(c)       Beneficiary
Designation. Upon receiving written permission from the Board or its duly authorized designee, you may, by delivering written notice
to the Company, in a form approved by the Company and any broker designated by the Company to handle option exercises, designate
a third party who, on your death, will thereafter be entitled to exercise this Option and receive the Ordinary Shares or other
consideration resulting from such exercise. In the absence of such a designation, your executor or administrator of your estate
will be entitled to exercise this Option and receive, on behalf of your estate, the Ordinary Shares or other consideration resulting
from such exercise.

 

11.           RIGHT
OF FIRST REFUSAL. Ordinary Shares that you acquire upon exercise of your Option are subject to any right of first refusal
that may be described in the Company’s memorandum or articles of association or other constitutional or governance documents
(including any Shareholders Agreement) in effect at such time the Company elects to exercise its right. Any Company right of first
refusal will expire on the first date upon which then Ordinary Shares (or any other securities issued in exchange for or upon conversion
of the Ordinary Shares)is listed (or approved for listing) upon notice of issuance on a national securities exchange or quotation
system.

 

12.           RIGHT
OF REPURCHASE. To the extent provided in the Company’s memorandum or articles of association or other constitutional
or governance documents (including any Shareholders Agreement) in effect at such time the Company elects to exercise its right,
the Company will have the right to repurchase all or any part of the Ordinary Shares you acquire pursuant to the exercise of your
Option.

 

13.           OPTION
NOT A SERVICE CONTRACT. Your Option is not an employment or service contract, and nothing in your Option will be deemed
to create in any way whatsoever any obligation on your part to continue in the employ of, or as a provider of services to, the
Company or an Affiliate, or of the Company or an Affiliate to continue your employment or to continue to engage you to provide
services. In addition, nothing in your Option will obligate the Company or an Affiliate, their respective shareholders, boards
of directors, officers or employees to continue any relationship that you might have as a Director or, a member of the board of
directors of, or a Consultant, for the Company or an Affiliate.

 

    	 	 	 

     

    

 

14.           WITHHOLDING
OBLIGATIONS.

 

(a)       At
the time you exercise your Option, in whole or in part, and at any time thereafter as requested by the Company, you hereby authorize
withholding from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for (including by
means of a “same day sale” pursuant to a program developed under Regulation T as promulgated by the Federal Reserve
Board to the extent permitted by the Company), any sums required to satisfy the federal, state, local and foreign tax withholding
obligations of the Company or an Affiliate, if any, which arise in connection with the exercise of your Option.

 

(b)       If
this Option is a Nonstatutory Share Option, then upon your request and subject to approval by the Company, and compliance with
any applicable legal conditions or restrictions, the Company may withhold from fully vested Ordinary Shares otherwise issuable
to you upon the exercise of your Option a number of whole Ordinary Shares hare having a Fair Market Value, determined by the Company
as of the date of exercise, not in excess of the minimum amount of tax required to be withheld by law (or such lower amount as
may be necessary to avoid classification of your Option as a liability for financial accounting purposes). If the date of determination
of any tax withholding obligation is deferred to a date later than the date of exercise of your Option, share withholding pursuant
to the preceding sentence shall not be permitted unless you make a proper and timely election under Section 83(b) of the Code,
covering the aggregate number of Ordinary Shares acquired upon such exercise with respect to which such determination is otherwise
deferred, to accelerate the determination of such tax withholding obligation to the date of exercise of your Option. Notwithstanding
the filing of such election, Ordinary Shares shall be withheld solely from fully vested Ordinary Shares determined as of the date
of exercise of your Option that are otherwise issuable to you upon such exercise. Any adverse consequences to you arising in connection
with such share withholding procedure shall be your sole responsibility.

 

(c)       You
may not exercise your Option unless the tax withholding obligations of the Company and/or any Affiliate are satisfied. Accordingly,
you may not be able to exercise your Option when desired even though your Option is vested, and the Company will have no obligation
to issue any Ordinary Shares (or any certificate therefor) or release such Ordinary Shares from any escrow provided for herein,
if applicable, unless such obligations are satisfied.

 

15.           TAX
CONSEQUENCES. You hereby agree that the Company does not have a duty to design or administer the Plan or its other compensation
programs in a manner that minimizes your tax liabilities. You will not make any claim against the Company, or any of its Officers,
Directors, Employees or Affiliates related to tax liabilities arising from your Option or your other compensation. In particular,
you acknowledge that this Option is exempt from Section 409A of the Code only if the exercise price per share specified in the
Grant Notice is at least equal to the “fair market value” per Ordinary Share on the Date of Grant and there is no other
impermissible deferral of compensation associated with the Option. Because the Ordinary Shares are not traded on an established
securities market, the Fair Market Value is determined by the Board, perhaps in consultation with an independent valuation firm
retained by the Company. You acknowledge that there is no guarantee that the Internal Revenue Service will agree with the valuation
as determined by the Board, and you will not make any claim against the Company, or any of its Officers, Directors, Employees or
Affiliates in the event that the Internal Revenue Service asserts that the valuation determined by the Board is less than the “fair
market value” as subsequently determined by the Internal Revenue Service.

 

16.           PERSONAL
DATA. You understand that your Employer, if applicable, the Company, and/or its Affiliates hold certain personal information
about you, including but not limited to your name, home address, telephone number, date of birth, social security or equivalent
tax identification number, salary, nationality, job title, and details of your Option (the “Personal Data”).
Certain Personal Data may also constitute “Sensitive Personal Data” or similar classification under applicable
local law and be subject to additional restrictions on collection, processing and use of the same under such laws. Such data include
but are not limited to Personal Data and any changes thereto, and other appropriate personal and financial data about you. You
hereby provide express consent to the Company or its Affiliates to collect, hold, and process any such Personal Data and Sensitive
Personal Data. You also hereby provide express consent to the Company and/or its Affiliates to transfer any such Personal Data
and Sensitive Personal Data outside the country in which you are employed or retained, including transfers to the United States.
The legal persons for whom such Personal Data are intended are the Company, any broker company, registered office provider, or
professional adviser providing services to the Company in connection with the administration of the Plan or the Company. You have
been informed of your right to access and correct your Personal Data and/or Sensitive Personal Data by applying to the Company
representative identified on the Grant Notice.

    	 	 	 

     

    

 

17.           ADDITIONAL
ACKNOWLEDGEMENTS. You hereby consent and acknowledge that:

 

(a)       Participation
in the Plan is voluntary and therefore you must accept the terms and conditions of the Plan and this US Option Agreement as a condition
to participating in the Plan and receipt of your Option.

 

(b)       The
Plan is discretionary in nature and the Company can amend, cancel, or terminate it at any time in its sole discretion.

 

(c)       Your
Option and any other Share Awards under the Plan are voluntary and occasional and do not create any contractual or other right
to receive future awards or other benefits in lieu of future awards, even if similar awards have been granted repeatedly in the
past.

 

(d)       All
determinations with respect to any such future awards, including, but not limited to, the time or times when such awards are made,
the size of such awards and performance and other conditions applied to the awards, will be at the sole discretion of the Company.

 

(e)       The
value of your Option is an extraordinary item of compensation, which is outside the scope of your employment, service contract
or consulting agreement, if any. This Share Award shall not form part of any past, current or future entitlement to remuneration
or benefits which you may have under any contract of employment, service contract or consulting agreement with the Company or Affiliate
nor form any part of any such contract of employment, service contract or consulting agreement between you and the Company or any
Affiliate.

 

(f)       Your
Option, and any income derived therefrom are a potential bonus payment not paid in lieu of any cash salary compensation and not
part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any termination,
severance, resignation, redundancy, end of service payments, bonuses, long-service awards, life or accident insurance benefits,
pension or retirement benefits or similar payments.

 

(g)       In
the event of the involuntary termination of your Continuous Service, your eligibility to receive payments under this Share Award
or the Plan in respect of the unvested portion of your Share Award, if any, will terminate effective as of the date that you are
no longer actively employed or retained regardless of any reasonable notice period mandated under local law, except as expressly
provided in this US Option Agreement.

 

(h)       The
future value of your Option is unknown and cannot be predicted with certainty. You do not have, and will not assert, any claim
or entitlement to compensation, indemnity or damages arising from the termination of your Option or diminution in value of your
Option and you irrevocably release the Company, its Affiliates and, if applicable, your Employer, if different from the Company
or any Affiliate, from any such claim that may arise.

 

    	 	 	 

     

    

 

(i)       For
purposes of this US Option Agreement, your Continuous Service will be considered terminated as of the date you are no longer actively
providing services to the Company or an Affiliate (regardless of the reason for such termination and whether or not later found
to be invalid or in breach of employment laws in the jurisdiction where you are employed or the terms of your employment agreement,
if any), and unless otherwise expressly provided in the Agreement or determined by the Company, (i) your right to vest in the Option
under the Plan, if any, will terminate as of such date and will not be extended by any notice period (e.g., your period
of service would not include any contractual notice period or any period of “garden leave” or similar period mandated
under employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any); and (ii) the
period (if any) during which you may exercise the Option after such termination of your Continuous Service will commence on the
date you cease to actively provide services and will not be extended by any notice period mandated under employment laws in the
jurisdiction where you are employed or the terms of your employment agreement, if any; the Board or its duly authorized designee
shall have the exclusive discretion to determine when you are no longer actively providing services for purposes of your Option
(including whether you may still be considered to be providing services while on a leave of absence).

 

(j)       Neither
the Company, the Employer nor any Affiliate of the Company shall be liable for any foreign exchange rate fluctuation that may affect
the value of the Option or of any amounts due to you pursuant to the exercise of the Option or the subsequent sale of any Ordinary
Shares acquired upon exercise.

 

(k)       The
Plan and this US Option Agreement set forth the entire understanding between you, the Company and any Affiliate regarding your
Option and supersedes all prior oral and written agreements pertaining to your Option.

 

18.           NOTICES.
Any notices provided for in your Option, this US Option Agreement or the Plan will be given in writing (including electronically)
and will be deemed effectively given upon receipt or, in the case of notices delivered by mail by the Company to you, five (5)
days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company.
The Company may, in its sole discretion, decide to deliver any documents related to participation in the Plan, this US Option Agreement
and your Option by electronic means or to request your consent to participate in the Plan by electronic means. By accepting your
Option, you consent to receive such documents by electronic delivery and to participate in the Plan through an on-line or electronic
system established and maintained by the Company or another third party designated by the Company.

 

19.           GOVERNING
PLAN DOCUMENT. Your Option is subject to all the provisions of the Plan, the provisions of which are hereby made a part
of your Option, and is further subject to all interpretations, amendments, rules and regulations, which may from time to time be
promulgated and adopted pursuant to the Plan. If there is any conflict between the provisions of your Option and those of the Plan,
the provisions of the Plan will control.

 

20.           EFFECT
ON OTHER EMPLOYEE BENEFIT PLANS. The value of the Option will not be included as compensation, earnings, salaries, or
other similar terms used when calculating your benefits under any employee benefit plan sponsored by the Company or any Affiliate,
except as such plan otherwise expressly provides. The Company expressly reserves its rights to amend, modify, or terminate any
of the Company’s or any Affiliate’s employee benefit plans.

 

    	 	 	 

     

    

 

21.           VOTING
RIGHTS. You will not have voting or any other rights as a shareholder of the Company with respect to the shares to be
issued pursuant to this US Option Agreement. Nothing contained in this US Option Agreement, and no action taken pursuant to its
provisions, will create or be construed to create a trust of any kind or a fiduciary relationship between you and the Company or
any other person.

 

22.           SEVERABILITY.
If all or any part of this US Option Agreement or the Plan is declared by any court or governmental authority to be unlawful or
invalid, such unlawfulness or invalidity will not invalidate any portion of this US Option Agreement or the Plan not declared to
be unlawful or invalid. Any Section of this US Option Agreement (or part of such a Section) so declared to be unlawful or invalid
shall, if possible, be construed in a manner which will give effect to the terms of such Section or part of a Section to the fullest
extent possible while remaining lawful and valid.

 

23.           WAIVER.
You acknowledge that a waiver by the Company of breach of any provision of the US Option Agreement shall not operate or be construed
as a waiver of any other provision of the US Option Agreement, or of any subsequent breach of the US Option Agreement.

 

24.           GOVERNING
LAW. The grant of the Option and the provisions of this US Option Agreement are governed by, and subject to, the laws
of the State of Delaware, without regard to the conflict of law provisions. You and the Company each hereby irrevocably submit
to the non-exclusive jurisdiction of the courts of the State of Delaware.

 

25.           LANGUAGE.
If you have received this US Option Agreement, or any other document related to the Option and/or the Plan translated into a language
other than English and if the meaning of the translated version is different than the English version, the English version will
control.

 

26.          IMPOSITION
OF OTHER REQUIREMENTS. The Company reserves the right to impose other requirements on your participation in the Plan,
on the Option and on any Ordinary Shares purchased upon exercise of the Option, to the extent the Company determines it is necessary
or advisable for legal or administrative reasons, and to require you to provide additional information and documentation and /
or sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

 

27.           MISCELLANEOUS.

 

(a)       The
rights and obligations of the Company under your Option will be transferable to any one or more persons or entities, and all covenants
and agreements hereunder will inure to the benefit of, and be enforceable by the Company’s successors and assigns.

 

(b)       You
agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company
to carry out the purposes or intent of your Option.

 

(c)       You
acknowledge and agree that you have reviewed this US Option Agreement and the Plan in their entirety, have had an opportunity to
obtain the advice of counsel prior to executing and accepting your Option, and fully understand all provisions of this US Option
Agreement, the Plan and your Option.

 

(d)       This
US Option Agreement will be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies
or national securities exchanges as may be required.

 

    	 	 	 

     

    

 

(e)       All
obligations of the Company under the Plan and this US Option Agreement will be binding on any successor to the Company, whether
the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or
substantially all of the business and/or assets of the Company.

***

This US Option Agreement will be deemed
to be signed by you upon the signing by you of the Option Grant Notice to which it is attached.

 

    	 	 	 

     

    

 

ATTACHMENT
II

 

2022 EQUITY
INCENTIVE PLAN

 

    	 	 	 

     

    

 

ATTACHMENT
III

 

NOTICE OF
EXERCISE

 

	Estrella Biopharma, Inc.	 	 
	 	 	 
	 	Date of Exercise:	 
	 	 	 

 

Ladies and Gentlemen:

 

This constitutes notice
under my Option that I elect to purchase the number of Ordinary Shares of Estrella Biopharma, Inc. (the “Company”)
for the price set forth below (all amounts are in US dollars).

 

	 	Type of option (check one):	Incentive  ̈	Nonstatutory  ̈
	 	 	 	 
	 	Option dated:	 	 
	 	 	 	 
	 	Number of Ordinary Shares as to which	 	 
	 	option is exercised:	 	 
	 	 	 	 
	 	Certificates to be	 	 
	 	issued in name of:	 	 
	 	 	 	 
	 	Total exercise price:	$ ___________________	 
	 	 	 	 
	 	Cash, check, bank draft or money order	 	 
	 	delivered herewith:	$ ___________________	 
	 	 	 	 
	 	Regulation T Program (cashless	 	 
	 	exercise):	$ ___________________	 
	 	 	 	 
	 	Value of___________ shares of the	 	 
	 	Company delivered herewith3:	$ ___________________	 
	 	 	 	 
	 	Value of__________ shares of the	 	 
	 	Company pursuant to net exercise1:	$ ___________________	 

 

 

By this exercise, I
agree (i) to provide such additional documents as you may require pursuant to the terms of the Estrella Biopharma, Inc. 2022 Equity
Incentive Plan, (ii) to provide for the payment by me to you (in the manner designated by you) of your withholding obligation,
if any, relating to the exercise of this Option, and (iii) if this exercise relates to an incentive share option, to notify you
in writing within fifteen (15) days after the date of any disposition of any of the shares of the Company issued upon exercise
of this Option that occurs within two (2) years after the date of grant of this Option or within one (1) year after such shares
are issued upon exercise of this Option.

 

 

		3	Shares must meet the public trading requirements set forth
in the option. Shares must be valued in accordance with the terms of the option being exercised, and must be owned free and clear
of any liens, claims, encumbrances or security interests. Certificates must be endorsed or accompanied by an executed assignment
separate from certificate.

		4	Estrella Biopharma, Inc. must have established net exercise
procedures at the time of exercise in order to utilize this payment method.

 

    	 	 	 

     

    

 

I hereby make the following
certifications and representations with respect to the number of shares of the Company listed above (the “Shares”),
which are being acquired by me for my own account upon exercise of this Option as set forth above:

 

I acknowledge that
the Shares have not been registered or qualified under the Securities Act of 1933 as amended (the “Securities Act”),
or other applicable securities laws on the ground that the sale of the Shares is exempt from such registration or qualification.
I further acknowledge that the Shares are deemed to constitute “restricted securities” under Rule 701 and Rule 144
promulgated under the Securities Act. I warrant and represent to the Company that I have no present intention of distributing or
selling said Shares, except as permitted under the Securities Act and any other applicable securities laws and any applicable state
securities laws and applicable securities laws of any other jurisdiction.

 

I further acknowledge
that I will not be able to resell the Shares for at least ninety (90) days after the shares of the Company becomes publicly traded
(i.e., subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934) under Rule 701
and that more restrictive conditions apply to affiliates of the Company under Rule 144.

 

I further acknowledge
that all certificates representing any of the Shares subject to the provisions of this Option shall have endorsed thereon appropriate
legends reflecting the foregoing limitations, as well as any legends reflecting restrictions pursuant to the Company’s memorandum
and articles of association and other constitutional and governance documents (including any Shareholder Agreements) and/or applicable
securities laws.

 

I further agree that,
if required by the Company (or a representative of the underwriters) in connection with the first underwritten registration of
the offering of any securities of the Company under the Securities Act or under the applicable laws of another jurisdiction under
which such securities may be listed, I will not sell, dispose of, transfer, make any short sale of, grant any option for the purchase
of, or enter into any hedging or similar transaction with the same economic effect as a sale, any shares or other securities of
the Company for a period of one hundred eighty (180) days following the effective date of a registration statement of the Company
filed under the Securities Act or under the applicable laws of another jurisdiction under which such securities may be listed,
or such longer period as necessary to permit compliance with NASD Rule 2711 or NYSE Member Rule 472 and similar rules and regulations
(the “Lock-Up Period”). I further agree to execute and deliver such other agreements as may be reasonably
requested by the Company and/or any underwriter(s) that are consistent with the foregoing or that are necessary to give further
effect thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to securities
subject to the foregoing restrictions until the end of such period.

 

	 	Very truly yours,
	 	 
	 	 
	 	Address:

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