Document:

CONFIDENTIAL

 

AGREEMENT

 

This
Agreement (the “Agreement”), entered into this 16th day of March, 2017 (“the “Effective Date”),
by and between Faller & Williams Technology LLC, with a place of business at 1809 Linden Lake Road, Fort Collins, CO 80524
(“FWT”) and Sapientia Pharmaceuticals, Inc., with a place of business at 2015 N. Federal Hwy, #303, Delray Beach,
FL 33483 (“Sapientia”), collectively referred to hereinafter as the “Parties” or individually referred
to hereinafter as a “Party”.

 

WHEREAS,
FWT is the owner, by assignment from the inventors recorded at Reel/Frame 041014/0095 on January 19, 2017, by the U.S. Patent
and Trademark Office, of certain patents and patent applications as set forth in attached Exhibit A (defined below as the
“Patents”), which is incorporated and made a part of this Agreement;

 

WHEREAS,
the inventors of the Patents are university professors and researchers and subject to the intellectual property policies of the
universities, which may include an obligation to assign new inventions to their respective universities, and have obtained waiver
letters therefrom indicating that each respective university takes no title interest in the Patents (attached as Exhibit B),
which are incorporated and made a part of this Agreement;

 

WHEREAS,
Sapientia is in the business of developing and selling pharmaceuticals and is interested in developing pharmaceuticals disclosed
and/or claimed under the Patents; and

 

WHEREAS,
the Parties desire to enter into an agreement to license the Patents to Sapientia, in accordance with the terms and conditions
disclosed herein.

 

NOW,
THEREFORE, in consideration of the mutual promises contained herein, and other good and valuable consideration, the receipt
and sufficiency of which are hereby mutually acknowledged, the Parties, intending to be legally bound, agree as follows.

 

1.
Definitions of Terms. The following terms have the meanings indicated.

 

1.1
“Confidential Information” means any and all confidential or proprietary information or materials of, or relating
directly or indirectly to a Party, this Agreement, Products, and the Patents, including but not limited to business interests,
technology, financial information, information related to new discoveries, inventions, whether or not patentable, information
related to clinical and non-clinical studies, information related to devices, equipment, or machines, or their construction, information
related to methodologies or processes; information related to computations, algorithms, systems information, statistics, formulae,
software, interfaces, computer code, source code, object code, interface code, or mask works, whether or not copyrightable or
otherwise protectable, information related to instructions, methods of operation, specifications, materials, plans, hardware,
designs, schematics, reports, studies, notes, analyses, summaries, business, marketing, and development plans, information related
to or received from clients or customers of a Party including the relationship of that Party to the client or customer, information
related to corporate opportunities and contacts, and other related information and materials that contain or reflect in whole
or in part any of the aforesaid information or materials.

 

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1.2
“FDA” means the United States Food and Drug Administration.

 

1.3
“Field” means the prevention and/or treatment of fibrosis and neoplastic diseases and disorders in humans and
animals. The Field may be further modified by mutual written agreement of the Parties.

 

1.4
“Improvements” means all new intellectual property conceived, created, reduced to practice, or otherwise made
by a Party, including but not limited to new discoveries, process and inventions, whether patentable or not, and all new technical
developments and know-how related to or advances regarding the Products. Improvements that result in the submission of a patent
application shall be included on Exhibit A as a part of the Patents.

 

1.5
“MAA” means a Marketing Authorization Application for submission to the Medicines and Healthcare Products Regulatory
Agency of United Kingdom, the Committee for Medicinal Products for Human Use of the European Commission, or an equivalent authority.

 

1.6
“Net Sales” means the gross amounts of monies or cash equivalents or other consideration that is billed, invoiced
or received (whichever occurs first) for sales, leases, or other modes of transfer of Products by Sapientia or Sapientia’s
sublicensees, if any, less: (i) customary trade, quantity, or cash discounts and rebates to the extent taken; (ii) amounts repaid
or credited to customers by reason of rejections or returns; (iii) taxes and/or other governmental charges (except filing fees)
which are actually paid by or on behalf of Sapientia or sublicensees for the production, sale, transportation, delivery, or use
of a Product; and (iv) charges for delivery or transportation of Licensed Products to customers through the use of third party
delivery or transportation services, if separately stated. When “Net Sales” is used in the case of non-cash sales,
it shall mean the fair market value of all equivalent or other consideration received by Sapientia or sublicensees for the sale,
lease, or transfer of Products. For the avoidance of doubt, if Sapientia sells or transfers Products to a distributor, wholesaler,
or a similar entity that provides Products to end users, Net Sales are to be calculated on the greater of: Sapientia’s sale
or transfer price to that party, or sixty percent (60%) of Sapientia’s list price. In no event shall the royalty paid to
FWT be less than sixty percent (60%) of what would be owed to FWT if Sapientia had made the sale to a Third Party. If a list price
is not available, the Parties will agree on a fair market value to determine Net Sales.

 

1.7
“NDA” means a New Drug Application as set forth in 21 C.F.R. Part 314.

 

1.8
“Patents” means the patents and patent applications listed on Exhibit A, including patents that may issue
from the applications, divisional applications, continuation applications (but not new subject matter of continuations-in-part
applications), and extensions of the any of the foregoing. Exhibit A may be amended by a Party from time to time to add
new patents and/or new patent applications.

 

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1.9
“Products” means the goods made, used, sold, offered for sale, imported, or exported that are disclosed
and/or described in the Patents.

 

1.10
“Term” means the period of time that commences on the Effective Date and continues to the date of the last to
expire of a valid Patent, plus ten years, unless earlier terminated as provided in this Agreement.

 

1.11
“Territory” mean worldwide.

 

1.12
“Third Party” means a party that is not a Party to this Agreement.

 

2.
License Grant.

 

2.1
License Grant. FWT hereby grants to Sapientia an exclusive license, subject to the reservation of rights as set
forth in Section 2.4, to make, use, sell, offer to sell, import, and export the rights afforded under the Patents in
the Field and in the Territory.

 

2.2
Sublicense Grant. FWT hereby grants to Sapientia the right to grant one or more exclusive or non-exclusive sublicenses of
the exclusive rights granted in Section 2.1. All sublicenses granted by Sapientia of its rights hereunder shall be subject
to the terms of this Agreement. Sapientia shall be responsible for its sublicensees and shall not grant any rights that are inconsistent
with the rights granted to, and obligations of, Sapientia hereunder. Any act or omission of a sublicensee that would be a breach
of this Agreement if performed by Sapientia shall be deemed to be a breach by Sapientia of this Agreement. Each sublicense agreement
granted by Sapientia shall include an audit right by FWT of the same scope as provided in Section 5.

 

2.3
Rights to Improvements. Subject to any Third Party limitations that FWT may have with respect to any assignment, license,
or transfer of Improvements, FWT grants to Sapientia an exclusive license to make, use, sell, offer to sell, import, and export
the rights afforded under the Improvements in the Field and in the Territory, with the right to sublicense or assign such rights
in accordance with Sections 2.2 and 27, respectively.

 

2.4
Reserved Rights. FWT retains all rights to use and practice the Patents and any Improvement for research, education, and other
non-commercial purposes, and may exercise those rights with or without Notice or compensation to Sapientia.

 

2.5
Government Reservations. Rights under this Agreement are subject to rights required to be granted to the Government of the
United States of America pursuant to 35 U.S.C. Section 200-212, including a nonexclusive, nontransferable, irrevocable, paid-up
license to practice or have practiced for or on behalf of the United States the subject inventions throughout the world.

 

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3.
Consideration.

 

3.1
Prior Prosecution Expenses. Within thirty (30) days of Effective Date of this Agreement, Sapientia shall pay to FWT $75,000.00,
which represents Sapientia’s reimbursement of FWT’s prior expenses associated with the prosecution of the Patents
and the expenses associated with the preparation of this Agreement as of the Effective Date. The $75,000.00 fee is to be paid
half in cash ($37,500.00) and the other half in Sapientia common stock, fully vested, valued at $37,500.00 as of the stock price
as of the Effective Date.

 

3.2
Milestone Fees.

 

(i)
Within thirty (30) days following the filing of each NDA with the FDA directed to a Product, Sapientia shall pay to FWT US$5,000,000.00.

 

(ii)
Within thirty (30) days following receipt of final approval of each NDA by the FDA for the marketing of a Product, Sapientia
shall pay to FWT US$25,000,000.00.

 

(iii)
Within thirty (30) days following the filing of each MAA with the Medicines and Healthcare Products Regulatory Agency of United
Kingdom or the Committee for Medicinal Products for Human Use of the European Commission, directed to a Product, Sapientia shall
pay to FWT US$1,000,000.00.

 

(iv)
Within thirty (30) days following receipt of final approval of each MAA by the Medicines and Healthcare Products Regulatory
Agency of United Kingdom or the Committee for Medicinal Products for Human Use of the European Commission for the marketing of
a Product, Sapientia shall pay to FWT US$5,000,000.00.

 

3.3
Royalties. Following the first Commercial Sale of a first Product in the United States, Sapientia shall thereafter pay to
FWT five percent (5%) of Net Sales of Products encompassed by one or more valid claims of the Patents and/or the Improvement within
the Territory, and two and one half percent (2.5%) of Net Sales of Products not encompassed within one or more valid claims of
the Patents within the Territory. Payment to FWT shall be made on or before January 1st and on or before July 1st
of every year during the Term of this Agreement. Should sales of Product require the payment of a royalty to a Third Party
for a prior art patent, Royalties payable to FWT shall be reduced by the amount of the Third Party royalty actually paid, but
in no event shall the Royalty payments payable to FWT be reduced by more than one half of the amounts set forth in this Section.
For the avoidance of doubt, a prior art patent is a patent with a valid and enforceable claim that encompass the relevant claim
of the Patent and was filed prior to the relevant Patent.

 

3.4
Royalty Reports. Beginning after the First Commercial Sale of Product and for the Term of this Agreement, Sapientia shall
submit to FWT within forty-five (45) days after every March 31 and September 30 a written report setting forth for such period
the number of Products sold by Sapientia, any sublicensee(s) in each jurisdiction encompassed by the Patent rights, and the amount
of royalties due thereon, or, if no Royalties are due to FWT for any reporting period, the statement that no Royalties are due.
The royalty report shall be certified as correct by an officer of Sapientia.

 

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3.5
Minimum Royalties. Beginning three (3) years after receiving marketing approval for a first Product from the FDA, the Medicines
and Healthcare Products Regulatory Agency of United Kingdom, the Committee for Medicinal Products for Human Use of the European
Commission, or an equivalent authority, Sapientia shall make minimum royalty payments to FWT of US$250,000.00 per year.

 

3.6
Sublicense and Assignment Fees. Within thirty (30) days of the sublicense to a Third Party of the rights granted to Sapientia
as set forth in Section 2.2, or of the assignment of all or part of this Agreement, as set forth in Section 27,
Sapientia shall pay to FWT twenty-five percent (25%) of all consideration received by Sapientia for the sublicense and/or the
assignment.

 

3.7
Form of Payments. All payments to FWT shall be in U.S. dollars and nonrefundable. For payments made by wire transfer, Sapientia
shall responsible for all costs and fees associated with currency conversion, bank fees, taxes attributable to the transfer, and
any other expenses associated with the transfer of funds.

 

3.8
Interest on Overdue Payments. Failure of Sapientia to make one or more payments when due shall incur interest on payments
at one percent (1.0%) per month, and shall accrue and be compounded monthly. The payment of interest shall not negate any rights
FWT may have for any failure of Sapientia to make any payments to FWT when due.

 

4.
Due Diligence and Due Diligence Milestones.

 

4.1
Due Diligence and Milestones. Sapientia shall exercise best efforts to obtain marketing approval for the sale of one or more
Products in the United States, to include preclinical, Phase I, Phase II, and Phase III clinical trials, and submission of a New
Drug Application under the provisions of 21 C.F.R. Part 314 for one or more Products to the U.S. Food and Drug Administration,
and thereafter sales of Products. Best efforts includes, but is not limited to, continuation of the Consulting Agreement, as set
forth in Section 9, and Milestones for Due Diligence as follows:

 

(i)
Sapientia shall initiate the first Phase I Trial, or any other-named first clinical trial, of a Product by no later than June
1, 2022;

 

(ii)
Sapientia shall initiate the first Phase II Trial, or any other-named subsequent clinical trial, of a Product by no later
than January 1, 2024;

 

(iii)
Sapientia shall initiate the first Phase III Trial, or any other-named subsequent clinical trial, of a Product by no later
than June 1, 2027;

 

4.2
Either Party may request of the other Party a meeting to review of the activities, or lack of activities, regarding Due Diligence
including the Due Diligence Milestones. If mutually agreed, the Parties may modify the Due Diligence requirements set forth in
this Agreement. Such modifications shall be in writing and signed by an authorized representative of each Party. Any such writing
shall be considered incorporated into this Agreement and shall not in any way be construed as a modification or renegotiation
of any other portion of this Agreement.

 

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4.3
Missed Milestones. Should Sapientia anticipate an inability to meet a Due Diligence Milestone, an authorized representative
of each Party shall conduct a face-to-face meeting to discuss Due Diligence. Should Sapientia fail to meet a Due Diligence Milestone,
FWT hereby agrees to provide Sapientia, at no cost, a cure period of six (6) months (the “Cure Period”), beginning
on the date of the missed Due Diligence Milestone, to meet the conditions of the missed Due Diligence Milestone. Absent a written
agreement between the Parties to extend the date of the missed Due Diligence Milestone, this Agreement shall terminate at the
expiration of the Cure Period in accordance with this Section 4.3.

 

4.4
Due Diligence Reports. Sapientia shall provide written reports to FWT every calendar quarter with regard to its Due Diligence
efforts. Either Party may request a meeting with the other Party, which request shall be accommodated as soon as practicable,
and no less than sixty (60) days from the date of a written request.

 

5.
Record and Inspection.

 

5.1
Accounting Records. Sapientia shall maintain, and shall cause its sublicensees to maintain, complete and accurate records
relating to the rights and obligations under this Agreement and any amounts payable to FWT in relation to this Agreement, which
records shall contain sufficient information to permit FWT to confirm the accuracy of any reports delivered to FWT and compliance
in other respects with this Agreement. The relevant party shall retain such records for at least three (3) years following the
end of the calendar year to which they pertain.

 

5.2
Audit by FWT. During the Term of this Agreement and for a period of two (2) years thereafter, FWT or its representatives shall
have the right to inspect the books and records of Sapientia in conjunction with the performance of Sapientia’s obligations
under the terms and conditions of this Agreement. The scope of such audit and inspection activities may include the review of
records supporting activities performed by Sapientia in conjunction with its obligations under this Agreement. Sapientia agrees
to provide representatives of FWT reasonable access to books, records, systems, and processes, and shall cooperate in good faith
with FWT’s representatives in support of their inspection and audit activities during Sapientia’s normal business
hours. It is agreed by FWT that all such records of Sapientia shall be considered Confidential Information of Sapientia and shall
not be disclosed to any Third Party pursuant to Section 6. All auditors and representatives of FWT shall be subject to
obligations of confidentiality with regard to such records.

 

5.3
Payment Deficiency. If a payment deficiency is determined, Sapientia and its sublicensee(s), as applicable, shall pay the
outstanding amounts within sixty (60) days of receiving written notice thereof, plus interest on such outstanding amounts as described
in Section 3.10.

 

5.4
Responsibility for Audit Costs. FWT shall pay for any audit done under Section 5.2. However, in the event that the
audit reveals an underpayment of royalties or fees by more than five percent (5%) for the period being audited, the cost of the
audit shall be paid by Sapientia or promptly reimbursed to FWT if already paid.

 

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6.
Confidentiality.

 

6.1
Confidential Treatment. The Parties agree to hold Confidential Information in strict confidence and shall not disclose
such information to any Third Party, except as permitted by Sections 6.3 and 6.4, for a period of time not less than seven
(7) years from the date of receipt of that Confidential Information (with the exception of any trade secrets,
whereby confidentiality shall be maintained in perpetuity).

 

6.2
Use of Confidential Information. Confidential Information may only be used for purposes related to this Agreement (the “Permitted
Purpose”) and only by those persons who need to review the Confidential Information in connection with the Permitted Purpose.

 

6.3
Exceptions to Definition of Confidential Information. The obligations of confidentiality under Section 6.1 shall not
apply to any information, as shown with written documents, that:

 

(i)
is in the public domain as of the Effective Date;

(ii)
enters the public domain after the Effective Date intentionally by the Party for which the information was considered confidential;

(iii)
enters the public domain after the Effective Date through no fault of a Party;

(iv)
enters the public domain with the advance written permission of the Party holding the confidentiality; or

(v)
is provided to a Party after the Effective Date by a Third Party which is not under any confidentiality obligation with respect
to the Confidential Information.

 

6.4
Disclosure by Court Order. A Party may disclose Confidential Information without the prior written consent of the other Party
to the extent that such disclosure is required by law, court order, or government authority, provided that the Disclosing Party:
(a) promptly notifies the other Party of the disclosure that is required by law, court order, or government authority; (b) disclosure
is limited to only those Third Parties and only to such Confidential Information as needed to comply with a law, rule, or authority;
(c) Confidential Information disclosed pursuant to law, court order, or government authority is marked as confidential; and (d)
the other Party is provided an opportunity to seek a protective order or otherwise prevent or restrict such disclosure. The Parties
agree to work together and in good faith to address any disclosure of Confidential Information.

 

6.5
Notification of Unauthorized Disclosure. In the event that a Party becomes aware of an unauthorized disclosure or use of Confidential
Information by a Third Party, that Party shall promptly notify the other Party of the unauthorized use or disclosure of Confidential
Information.

 

7.
Infringement.

 

7.1
Notice of Infringement. In the event either Party becomes aware of an infringement or possible infringement of one or more
of the Patents, the Party becoming aware of such infringement shall promptly notify the other Party. In the event of an infringement,
the Parties will fully cooperate with each other and in good faith in enforcing the Patents.

 

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7.2
Obligation to Enforce and/or Defend the Patents. Sapientia shall have the right and

 

obligation
to enforce and/or defend the Patents against any and all Third Parties. Sapientia may bring an infringement action in its own
name and shall be responsible for all costs and expenses, including attorney fees, litigation costs, and other expenses associated
with or related to any such legal actions. The Parties agree to work together and in good faith with regard to any legal actions.
Should any legal action or settlement with respect to the Patents result in an award of damages or the payment of consideration
to Sapientia, Sapientia shall promptly transfer to FWT twenty-fine percent (25%) of the damages and/or consideration received
by Sapientia less Sapientia’s expenses associated with the legal action.

 

8.
Patent Prosecution and Expenses. FWT shall prosecute and maintain the Patents and Sapientia shall have the right to
contribute to, review and opine on the patent prosecution. All costs and expenses attributed to the prosecution and maintenance
of the Patents, the financial obligations of Robert M. Williams and Douglas V. Faller set forth in Exhibit B, and this Agreement,
including attorney fees and costs shall be promptly paid by Sapientia or, if paid by FWT, shall be promptly reimbursed by Sapientia
to FWT.

 

9.
Consulting Agreement. Sapientia represents and warrants that during the Term of this Agreement it shall annually provide
at least $350,000.00 of financial support to be directed to Douglas V. Faller and Robert M. Williams for research related to Products.
This financial support shall be divided equally between Robert M. Williams and Douglas V. Faller or, upon mutual written agreement
of Sapientia and the intended recipients, Dr. Faller and Dr. Williams, may be, in whole or in part, apportioned differently and/or
directed to a mutually agreed Third Party. Sapientia shall be provided a copy of the research materials created that is attributed
to the financial support provided under this Section. Failure of Sapientia to meet these payments will constitute a missed milestone
subject to the provisions set forth in Section 4.3.

 

10.
Compliance with Federal and State Laws. Sapientia represents and warrants that it shall comply with all laws, rules,
and regulations applicable to activities contemplated or undertaken under this Agreement, including complying with any U.S. government
rights, and shall fully indemnify and hold harmless FWT from any failure to so comply.

 

11.
Indemnification/Liability Insurance.

 

11.1
Sapientia Indemnification. Sapientia represents and warrants that it shall indemnify and hold harmless FWT and its officers,
employees, affiliates, agents, and representatives (“Indemnified Parties”) from and against any and all claims, causes
of action, lawsuits, or proceedings of any kind (the “Claims”) filed or otherwise instituted against any of the Indemnified
Parties, related directly or indirectly to, arising from, or relating to this Agreement, one or more of the Products, Patents,
Sapientia’s obligations hereunder, any actions and/or inactions of Sapientia, including any negligence and/or misconduct,
or based upon doctrines of strict liability or product liability, on the part of Sapientia and/or its employees, directors, officers,
agents, representatives, affiliates, divisions, and any parent organizations. Sapientia agrees to secure and maintain reasonable
liability insurance that includes the Indemnified Parties, for any and all possible Claims.

 

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11.2
General Indemnification Procedures. Each party shall notify the other of any claim, lawsuit, or other proceeding related to
the Patents, the Products, or this Agreement. Sapientia agrees not to settle any Claim against an Indemnified Party without the
Indemnified Party’s written consent, which consent shall not be unreasonably withheld. Sapientia further agrees to keep
the Indemnified Parties fully apprised of any Claims.

 

11.3
Disclaimer of All Warranties. FWT makes no representations or warranties, express or implied, including but not limited to
any warranties of fitness or merchantability, relating to or with regard to the Patents, the Products, or any know how attributable
thereto. FWT specifically disclaims all representations and warranties including any representation or warranty that the Patents
are free from infringement of a Third Party right, and, as such, any rights attributable to the Patents are provided “as
is,” that any Product is either safe or suitable for the treatment of a patient, or that any Product will achieve FDA approval
or marketing approval from the FDA or any authority.

 

12.
Intellectual Property.

 

12.1
Ownership of Patents. Sapientia agrees that the Patents are the property of FWT and agrees not to challenge validity or ownership
of any of the Patents. It is agreed by the Parties that Sapientia has no rights in the Patents except as expressly contained within
this Agreement.

 

12.2
Improvements Made by FWT. Subject to any obligations that the inventors of the Patents may have to assign their rights in
Improvements to their respective universities, Improvements made by FWT during the Term of this Agreement shall be assigned to
FWT and included as a part of this Agreement, including but not limited to the Grant of License as set forth in Section 2.
Should an Improvement not be assigned to Sapientia, at the request of Sapientia, FWT shall cooperate in good faith with Sapientia
to obtain a license thereto.

 

12.3
Improvements Made by Sapientia. Improvements made by Sapientia during the Term of this Agreement shall be promptly assigned
to FWT and included as a part of this Agreement, including but not limited to the Grant of License set forth in Section 2.

 

13.
Term and Termination. The term of this Agreement shall commence on the Effective Date and shall expire ten (10) years
after the date of the last to expire of a valid Patent, unless earlier terminated as provided herein (the “Term”).

 

13.1
Termination by FWT. Notwithstanding the foregoing, FWT may elect to terminate this Agreement for cause in accordance with:

 

(i)
Termination for Disclosure of Confidential Information. Except for termination provided for under Sections 13.1(ii) and
13.3, if Sapientia fails to meet an obligation hereunder, including but not limited to failure to make a payment when due,
the unauthorized disclosure of FWT Confidential Information, the unauthorized assignment of this Agreement, or the unauthorized
violation of the scope of the license grant, FWT shall have the right to terminate this Agreement and the rights granted to Sapientia
hereunder by providing Sapientia with sixty (60) days advance written Notice, which shall state in sufficient detail the reason
for such termination; or

 

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(ii)
Termination for Failure to Exercise Due Diligence. If Sapientia fails to exercise its Due Diligence or meet the Due Diligence
Milestones set forth in Section 4.1, FWT shall have the right to terminate this Agreement and the rights granted to Sapientia
hereunder at the expiration of the Cure Period upon written Notice to Sapientia, which shall state in reasonable detail the reason
for such termination.

 

13.2
Termination by Sapientia. Provided that all prior terms and conditions have been met and that all payments due FWT have been
timely paid, and excluding termination under Section 13.3, Sapientia may terminate this Agreement without cause by providing
FWT with six (6) months advance written Notice of termination and by promptly transferring and/or assigning all Products, documents,
materials, and other information necessary and sufficient for FWT to continue development of any Products that were being developed
and/or sold by Sapientia prior to the date of termination.

 

13.3
Termination for Bankruptcy. If either Party (1) becomes insolvent; (2) is subject to any proceeding, voluntary or involuntary,
with a view to postponing or rescheduling its debts generally or of distributing its assets among its creditors under the provisions
of any applicable law for the benefit of creditors; (3) is liquidated; (4) is wound up either voluntarily or under an order of
a court of competent jurisdiction; (5) makes a general assignment for the benefit of its creditors; or (6) otherwise takes any
action that acknowledges its inability to pay its debts as they become due, this Agreement and all rights and obligations hereunder
shall be subject to termination, pending review by FWT. Without limiting the generality of the foregoing, if there is named a
receiver or trustee of all or any part of the Agreement, this Agreement and all rights and obligations hereunder shall automatically
terminate unless expressly deemed to survive under the terms of this Agreement.

 

13.4
Actions Following Termination. In the event of termination by either Party, thereafter Sapientia and/or its sublicense(s)
shall cease and desist any and all use of Products; Sapientia and/or its sublicense(s) shall promptly assign to FWT any Improvements
or other intellectual property related directly or indirectly to the Products, the Patents, and/or the Improvements not previously
assigned to FWT; and Sapientia and/or its sublicense(s) shall transfer and/or assign to FWT any clinical studies, clinical results,
all Sapientia Confidential Information related to the Agreement, which thereafter shall be considered FWT Confidential Information,
and any associated written materials and market approvals received from one or more authorities such as the FDA, and take all
actions necessary and sufficient for FWT to continue with the development of Products.

 

13.5
Remedies upon Termination. Any election to terminate this Agreement shall be in addition to, and not in limitation of, other
remedies that may be available at law or in equity.

 

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14.
Surviving Sections. Sections 3.9, 3.10, 4.4, 5, 6, 7, 11, 12 and 15-19, and all enforcement and interpretative
provisions of this Agreement, shall survive any expiration or termination of this Agreement.

 

15.
Governing Law. Except for alternative dispute resolution procedures, as set for in Section 17, this Agreement
shall be considered to have been made in, and construed and interpreted in accordance with the substantive laws of, the State
of Delaware, without regard to its conflict of laws principles. The Parties hereby submit to the sole and exclusive jurisdiction
of, and waive any venue objections against, the state and federal courts located in the State of Delaware.

 

16.
Exclusive Jurisdiction. Except for alternative dispute resolution procedures, as set for in Section 17 ,the Parties
consent to the exclusive personal jurisdiction of the federal and state courts of the State of Delaware for any and all disputes
regarding, arising under, and/or related to this Agreement.

 

17.
Mediation and Arbitration. Both Parties irrevocably consent to first present any dispute related to this Agreement
in writing to the other Party. Within two (2) months of receipt of the written Notice, the Parties shall attend a face-to-face
meeting which shall include at least one individual from each Party who is authorized to make decisions for and settle the dispute.
Such a meeting would be held in the geographical region of Fort Collins, Colorado. In the event that good faith negotiations are
unsuccessful, the Parties shall present the dispute to non-binding mediation before a single mediator in the geographical region
of Fort Collins, Colorado. The Party first initiating the dispute shall present a list of no less than five potential mediators
to the other Party and that Party shall promptly select one mediator therefrom. Should nonbinding mediation be unsuccessful, as
determined by the chosen mediator, the dispute shall be presented to binding arbitration before a single arbitrator also in the
geographical region of Fort Collins, Colorado. The Party initiating the dispute shall present a list of no less than five potential
arbitrators to the other Party and that Party shall promptly select one arbitrator therefrom. The arbitration shall be administered
by JAMS pursuant to its International Arbitration Rules and Procedures. These rules and JAMS’ fee schedule are available
at https://www.jamsadr.com/rules-international. Judgment on the Award may be entered in any court having jurisdiction. Each Party
shall pay its own expenses with regard to any mediation and arbitration, including any attorney fees, and shall share the cost
of the mediation and arbitration equally. Each Party further agrees that any action commenced by the other Party that is not in
conformity with this Paragraph shall be subject to summary dismissal with all costs and fees, including all actual attorney fees,
incurred to accomplish dismissal, removal, or any termination of the action, borne by the other Party.

 

18.
Excluded Damages. Neither Party may request or receive special, incidental, or consequential damages pursuant to any
dispute or action regarding, arising under, or related to this Agreement.

 

    	11

    	 

    

 

19.
Notices. All Notices and other communications given to any Party hereto pursuant to this Agreement shall be in writing
and shall be sent either by (i) certified mail, postage prepaid, return receipt requested; (ii) an overnight express courier service
that provides written confirmation of delivery; or (iii) facsimile transmission with written confirmation by the sending machine
or with telephone confirmation of receipt, addressed as follows:

 

If
to FWT Technology LLC:

ATTN:
Douglas V. Faller or Robert M. Williams

Faller
& Williams Technology LLC

1809
Linden Lake Road

Fort
Collins, CO 80524

Tel:
1 (970) 231-3204

Fax:

 

If
to Sapientia Pharmaceuticals, Inc.:

ATTN:
Martin Schmieg

2015
N. Federal Hwy, #303

Delray
Beach, FL 33483

Tel:
1 (215) 300-9400

Fax:

 

Any
communication given in conformity with this Section 19 shall be deemed to be delivered upon receipt or refusal. Any Party
may change its address for receiving communications pursuant to this Section 19 by giving written Notice of a new address
in the manner provided herein.

 

20.
Entire Agreement, Amendments, and Waivers.

 

20.1
Amendments. Any prior agreements between the Parties covering the subject matter hereof are hereby superseded and replaced
by this Agreement, which contains the entire agreement of the Parties with respect to the subject matter hereof. This Agreement
is the product of arms- length negotiations and each Party has had the benefit of advice of counsel. Any ambiguity in construction
or interpretation shall not be construed against any drafter. Any provision of this Agreement may be amended or waived if such
amendment or waiver is in writing and signed by each Party, or in the case of a waiver, by the Party against whom the waiver is
to be effective.

 

20.2
Waivers. Sapientia recognizes that the principals of FWT are also investors in Sapientia and members of the Scientific Advisory
Board of Sapientia, and hereby waives any and all issues relating to potential or actual conflicts of interest. No failure or
delay by either Party in exercising any right, power, or privilege hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise thereof preclude any other or further exercise thereof, or the exercise of any other right, power,
or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided
by law.

 

21.
Force Majeure. The Parties shall be relieved of their obligations hereunder (except for the payment of money), if and
to the extent that any of the following events hinder, limit, or make commercially impracticable the performance by either party
of any of its obligations hereunder: act of God, war, civil commotion, riot, acts of public enemies, blockade or embargo, fire,
explosion, lightning, casualty, accident, flood, sabotage, national defense requirements, labor trouble, strike, lockout or injunction,
governmental requests, laws, regulations, orders or actions, breakage or failure of machinery or apparatus, or any other event,
whether or not of the class or kind enumerated herein, beyond the control of either Party such as cannot be circumvented by reasonable
diligence and without unusual expense. The Party claiming relief hereunder shall notify the other party in writing of the events
causing delay or default in performance. The Party failing to fulfill its obligations shall, however, take reasonable steps to
remove or otherwise mitigate the impediment to action.

 

    	12

    	 

    

 

22.
Headings. The headings used in this Agreement are for reference only, and do not define, limit, or otherwise affect
the meaning of any provisions hereof.

 

23.
Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the Parties
hereto and their respective successors and assigns.

 

24.
No Third Party Beneficiaries. The rights granted hereunder are rights personal to the Parties to this Agreement. No
provision of this Agreement is intended, nor shall it be interpreted, to provide or create any Third Party beneficiary rights
or any other rights of any kind except as expressly set forth in this Agreement in any person other than a Party to this Agreement.

 

25.
Use of Terms. Whenever the context may require, any pronoun includes the corresponding masculine, feminine, and neuter
forms. Words in the singular or the plural include the plural or the singular, as the case may be. The use of the word “or”
is not exclusive. All references herein to Articles and Sections shall be deemed to be references to Articles and Sections of
this Agreement unless the context otherwise requires. The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation.” The words “hereof,” “herein,”
and “hereunder” and words of similar import when used in this Agreement refer to this Agreement as a whole and not
to any particular provision of this Agreement. Unless otherwise expressly provided herein, any agreement, statute, or law defined
or referred to herein means such agreement, statute, or law as from time to time amended, modified, or supplemented, including
by succession of comparable successor agreements or statutes.

 

26.
Entire Agreement. This Agreement constitutes the entire agreement between the Parties concerning the subject matter
hereof, and supersedes all written and oral prior agreements and understandings with respect thereto.

 

27.
Assignment of Agreement. This Agreement may be assigned by FWT, or its assigns, for any or no reason. Sapientia may
assign this Agreement, in whole or in part, upon the sale by Sapientia of substantially all of the assets of Sapientia having
to do with development of one or more Products, or with the written approval of FWT or its assigns. Any assignment by a Party
must include advance written Notice to the other Party. In the event of acquisition, merger, change of corporate name, or change
of make-up, organization, or identity, Sapientia shall notify FWT in writing within thirty (30) days of such event.

 

    	13

    	 

    

 

28.
Signature Authority. Each person signing this Agreement represents that they are duly authorized, with full authority
to bind the Parties, and that no signature of any other person or entity is necessary to bind the Parties.

 

29.
Counterparts. This Agreement may be signed in any number of counterparts, each of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same instrument.

 

30.
Electronic Transmission. Each of the Parties hereto agrees that (a) any Notice, consent, or signed document transmitted
by electronic transmission (meaning a facsimile, e-mail, or e-mail attachment) to a Party at the e-mail address stated herein
shall be treated as an original, written document, with the same binding effect; (b) at the request of either Party, any such
document shall be re-executed and redelivered in hard-copy form to the address stated herein; and (c) a Party will not raise the
transmission of a Notice, consent, or document by electronic transmission as a defense in any proceeding or action in which the
validity of such consent or document is at issue, and hereby forever waives such defense.

 

31.
Further Assurances. At any time, and from time to time from and after the date hereof, each Party shall, at the reasonable
request of the other Party, execute, acknowledge, and deliver such instruments and other documents and perform such acts and make
available such information, as may reasonably be required to evidence or effectuate the performance of the responsibilities of
the Parties under this Agreement.

 

32.
Severability. If any provision hereof is or becomes illegal, invalid, or unenforceable under the laws of a particular
jurisdiction, such provision shall be fully severable with respect to such laws; this Agreement shall be construed and enforced
in such jurisdiction as if such provision had never comprised a part hereof; the remaining provisions hereof shall remain in full
force and effect in such jurisdiction and shall not be affected by such provision or by its severance herefrom; and all of the
provisions hereof shall remain in full force and effect in all other jurisdictions and shall not be affected by the severance
of such provision under the laws of such jurisdiction. Furthermore, in lieu of such provision there shall be added automatically
for purposes of such jurisdiction as part of this Agreement a provision as similar in terms to such illegal, invalid, or unenforceable
provision as may be possible, and be legal, valid, and enforceable in such jurisdiction.

 

[Signatures
on the following page]

 

    	14

    	 

    

 

IN
WITNESS WHEREOF, the duly authorized officers of the parties to this Agreement have executed and delivered this Agreement
effective on the date first above written.

 

	FOR: 	 	FOR: 
	FALLER & WILLIAMS TECHNOLOGY LLC.	 	SAPIENTIA PHARMACEUTICALS, INC.
	 	 	 	 	 
	By:		 	By:	
	Name: 	Robert M. Williams, Ph.D. 	 	Name:	William V. Williams, M.D. 
	Title: 	Co-managing Member 	 	Title:	President
and CEO 
	Date: 	March 16, 2017	 	Date:	March
16, 2017
	 	 	 	 	 
	By:		 	 	 
	Name:	Douglas V. Faller, M.D., Ph.D.	 	 	 
	Title: 	Co-managing Member 	 	 	 
	Date: 	March 16, 2017	 	 	 

 

    	15

    	 

    

 

EXHIBIT
A

 

(the
Patents)

 

U.S.
Provisional Application No. 61/703,081 entitle “PKC Delta Inhibitors for use as Therapeutics” filed 19 September 2012.

 

International
Application No. PCT/US2013/60638 entitled “PKC Delta Inhibitors for use as Therapeutics” filed 19 September 2013.

 

U.S.
Patent No. 9,364,460 entitled “PKC Delta Inhibitors for use as Therapeutics” issued 14 June 2016.

 

U.S.
Patent Application No. 15/148,420 entitled “PKC Delta Inhibitors for use as Therapeutics” filed 06 May 2016.

 

U.S.
Patent Application No. 15/425,381 entitled “PKC Delta Inhibitors for use as Therapeutics” filed 06 February 2017.

 

EP
Patent Application No. 13839158.6 “PKC Delta Inhibitors for use as Therapeutics” filed 25 March 2015.

 

    	16

    	 

    

 

EXHIBIT
B

 

1.
Invention Release Agreement between Robert M. Williams and Colorado State University Research Foundation dated March 14, 2014.

 

2.
Letter Agreement from Brian D. Gildea, Executive Director, Intellectual Property & Licensing, Boston University Technology
Development, to Douglas V. Faller and Robert Williams and dated December 17, 2013.

 

    	17Master
Services Agreement

 

This
Master Services Agreement (this “Agreement”) dated March 17, 2017 (the “Effective
Date”), between BriaCell Therapeutics Corporation, having a place of business at 820 Heinz Ave.,
Berkeley, CA 94710 (“Client”) and KBI Biopharma, Inc., having a place of business at 1101 Hamlin
Road, Durham, North Carolina 27704 (“KBI Biopharma”) (Client and KBI Biopharma, each a “Party”,
and collectively, the “Parties”).

 

Whereas,
Client is engaged in the discovery and development of new biological therapeutics;

 

Whereas,
KBI Biopharma is in the business of providing biological development and clinical manufacturing services; and

 

Whereas,
Client desires KBI Biopharma to perform certain services in accordance with the terms of this Agreement and KBI Biopharma desires
to perform such services.

 

Now,
therefore, in consideration of the above statements, which form part of this Agreement, and other good and valuable consideration,
the sufficiency and receipt of which are hereby acknowledged, the Parties hereto agree as follows:

 

	1.	Services
    to be Performed
	 	 
	1.1	Scope.
    KBI Biopharma shall use reasonable commercial efforts to perform the services (the “Services”) detailed
    in the applicable proposal, the first of which has been executed by the Parties and attached hereto as Attachment One
    and incorporated herein by reference (each referred to as a “Proposal”). Any deliverables to be
    provided to Client as a result of the performance by KBI Biopharma of the Services shall be set forth in the Proposal (the
    “Deliverables”). In the event that Client requests KBI Biopharma to perform services beyond the
    scope of services specifically stated in the Proposal, KBI Biopharma shall have no obligation to perform such supplemental
    services unless and until a Change Order or new a Proposal is executed in accordance with Article 5 below, or unless the Parties
    agree in writing on a proposal for additional services to be performed under this Agreement.
	 	 
	1.2	Additional
    Services. The Parties may agree upon additional services to be performed under the terms of this Agreement, as may be
    described in purchase orders or proposals to be mutually agreed upon by the Parties in writing. Such additional proposals
    or purchase orders, when signed by both Parties, shall be included in the term “Proposal” as used in this Agreement
    and the additional services described therein shall be included in the term “Services” as used in this Agreement.
	 	 
	1.3	Compliance
    with Laws. As applicable to the Services, KBI Biopharma shall perform the Services in all material aspects in compliance
    with current cGMP and other applicable rules, regulations and guidelines of the U.S. Food and Drug Administration (“FDA”),
    as then in effect, governing the manufacture, testing and quality control of investigational drugs. For purposes of the foregoing,
    “cGMP” means the current Good Manufacturing Practices as promulgated under each of the following
    as in effect on the date of this Agreement and as amended or revised after the date of this Agreement and in effect at the
    time of the performance of the Services: (a) the U.S. Food, Drug & Cosmetics Act (21 U.S.C. § 301 et seq.)
    and related U.S. regulations, including 21 Code of Federal Regulations (Chapters 210 and 211) and (b) the ICH guide Q7 “ICH
    Good Manufacturing Practice Guide for Active Pharmaceutical Ingredients” as applied to investigational drugs (Section
    19). Client shall have responsibility for determining regulatory strategy and for all regulatory decisions except for those
    matters that KBI Biopharma, in its reasonable discretion deems contrary to regulatory requirements or commitments made by
    KBI Biopharma to regulatory authorities, of which matters KBI Biopharma shall promptly notify Client in writing. Should the
    U.S. government regulatory requirements change, KBI Biopharma will use reasonable efforts to satisfy the new requirements.
    Notwithstanding the foregoing, in the event that compliance with such new U.S. regulatory requirements necessitates a change
    in the scope or nature of the Services to be completed, KBI Biopharma will submit to Client a Change Order in accordance with
    Article 5.

 

    	 	1	 

    	 

    

 

	2.	Client
    Obligations
	 	 
	2.1	General.
    Unless otherwise agreed to by the Parties in writing, in each case in accordance with the Proposal, Client is solely responsible
    for, and performance hereunder by KBI Biopharma is contingent upon: (a) provision of complete and accurate scientific data
    regarding the product which is the subject of the Proposal (the “Product”) and such other data that
    is to be supplied by Client pursuant to the Proposal; (b) provision of all information necessary to effect the reliable transfer
    of methods to KBI Biopharma; (c) provision of specific reagents, reference standards or other materials necessary for execution
    of Services, as may be described in the Proposal; (d) if applicable, review and approval of in-process and finished product
    test results to ensure conformity of such results with required Product specifications, regardless of which Party is responsible
    for finished Product release; (e) preparation of all submissions to regulatory authorities; and (f) performance of all other
    obligations of Client set forth in the Proposal. Client shall perform its obligations as set forth in this Agreement, support
    and cooperate with KBI Biopharma in the execution of the Services and shall not engage in any act or omission, which may reasonably
    be expected to prevent or delay the successful execution of the Services. Such support and cooperation shall include, but
    not be limited to, informing KBI Biopharma of global regulatory strategy for development and approval of the Product to the
    extent relevant to the Proposal, prompt review and approval of documents requiring Client’s signature, timely delivery
    of methods and materials and prompt response to other similar issues.
	 	 
	2.2	Provision
    of Regulatory Submissions. Prior to making any submission for regulatory approval of the Product, upon the request of
    KBI Biopharma, Client shall provide copies of all relevant regulatory submissions relating to KBI Biopharma’s manufacturing
    procedures (if applicable to the Services) to KBI Biopharma for review and reasonable opportunity to comment.
	 	 
	2.3	Information
    Regarding Hazardous Materials. Client shall provide to KBI Biopharma, on an on-going basis throughout the Term (as defined
    below), any applicable safe handling instructions for any substance or material provided by or on behalf of Client to KBI
    Biopharma in sufficient time for review and training by KBI Biopharma prior to delivery of any such substance or material
    to KBI Biopharma. Where appropriate or required by law, Client shall provide a Material Safety Data Sheet and instructions
    for proper storage for all Client-provided materials, finished product and reference standards.
	 	 
	2.4	Other
    Company Materials. As soon as practicable following the execution of this Agreement, Client shall provide to KBI Biopharma
    all materials, know-how, information and technical assistance under Client’s control which is associated with the Product
    or otherwise required for the performance of the Services in accordance with the Proposal. Client agrees that such materials,
    know-how, information and technical assistance shall be complete and accurate to the extent required for KBI Biopharma to
    perform the Services. Client hereby grants to KBI Biopharma during the Term of this Agreement the right to use any and all
    patent rights, trade secrets, intellectual property and other materials under Client’s control solely in accordance
    with terms and conditions of this Agreement and to the extent necessary for KBI Biopharma to perform the Services.

 

    	 	2	 

    	 

    

 

	3.	Performance
	 	 
	3.1	Schedule.
    Due to the unpredictable nature of biological processes, the timelines and schedules for the performance of the Services (including
    without limitation the dates for production and delivery of Product) and the yield or quantity of Product as set out in the
    Proposal are estimates. KBI Biopharma shall keep Client regularly informed in writing of any such changes that are necessary
    to the Proposal, and agrees that such changes will be made to the minimum extent reasonably necessary and KBI Biopharma will
    not make any changes in the specifications covering the manufacturing or processing of the Product or the production process
    without the express written consent of Client. Client shall not be entitled to cancel any unfulfilled part of the Services
    or refuse acceptance of Product related to the Proposal on reasonable grounds of late performance of the Services or late
    delivery of the Product subject to the provisions of this Section 3.1, provided that Client has received regular communications
    during the development process and is aware of the reasons for such late delivery or late performance. If Client has not received
    regular communications during the development process and is not aware of the reasons for such late delivery or late performance,
    Client shall be entitled to cancel any unfulfilled part of the Services or refuse acceptance of Product related to the Proposal.
    In such event, KBI Biopharma shall not be liable for any loss, damage, costs or expenses of any nature, whether direct, indirect,
    incidental or consequential, arising out of any delay in performance or delivery howsoever caused or arising out of any failure
    to produce the estimated quantities of Product for delivery on the estimated schedule, except to the extent caused by the
    gross negligence of KBI Biopharma, or otherwise specifically agreed to in a Proposal.
	 	 
	3.2	Technical
    Difficulties. If it becomes apparent to either KBI Biopharma or Client at any stage in the provision of any Services that,
    as a result of scientific or technical reasons out of the reasonable control of either Party, it will not be possible to complete
    the Services in the manner described in this Agreement or the Proposal or any Change Order thereto, the Parties will (a) identify
    the problem, (b) submit the problem in writing to senior management of each Party, and (c) negotiate in good faith for a thirty
    (30) day period from the date senior management of the Parties first convene regarding how to resolve such problem in a commercially
    reasonable manner. If the Parties do not agree on a commercially reasonable resolution to the problems within such thirty
    (30) day period, KBI Biopharma and Client shall each have the right to terminate this Agreement by written notice to the other
    Party, subject to Section 24.2.
	 	 
	3.3	Quality
    Agreement. In the event that the Proposal specifically enumerates Services that include the contract manufacturing and
    performance of the activities are subject to cGMP, within fifteen (15) days of the execution of this Agreement, or as soon
    as practicable after the execution hereof, the Parties shall develop and agree upon the outline of a quality agreement describing
    the regulatory and compliance roles and responsibilities of each Party, including without limitation, procedures for handling
    Product recalls and non-conforming Product, the format and content of which shall be agreed upon by the Parties (the “Quality
    Agreement”). Within sixty (60) days of the execution of this Agreement, the Parties shall agree to and execute
    a definitive Quality Agreement. Upon execution by both Parties, the Quality Agreement shall be incorporated herein and attached
    hereto as Attachment Two.
	 	 
	3.4	Non-Conforming
    Services. Within thirty (30) days of delivery of the Product, Client shall inform KBI Biopharma of any material non-conformity
    with required specifications set forth in the Proposal, as may be further provided in the Quality Agreement. In the event
    that such non-conformity is attributable to KBI’s breach of its obligations under this Agreement, then, as Client’s
    initial remedy, KBI Biopharma shall, subject to Client providing the active pharmaceutical ingredient, biological material
    or other source materials, as applicable, re-perform such non-conforming Services as soon as possible with no additional fees
    to Client. If upon repeat of the Services, KBI Biopharma is unable to deliver a conforming Product, either party may terminate
    this Agreement or if the Parties so agree, they shall work together in good faith generate a Product that conforms to the
    specifications.

 

    	 	3	 

    	 

    

 

	4.	Work
    Output
	 	 
	 	All
    reports specified in the Proposal and other applicable cGMP documentation (“Work Output”) will be
    prepared using KBI Biopharma’s standard format(s) unless otherwise specified in the Proposal or this Agreement. Client
    will be supplied with copies of Work Output generated as a result of the Services as set forth in the Proposal or Quality
    Agreement. All Work Output and any required Product samples will be at Client’s option, (a) delivered to Client at any
    address as Client may specify in such request, or (b) archived by KBI Biopharma for a period of five (5) years following completion
    of the Services unless otherwise provided in the Proposal or required by applicable U.S. laws or regulations. At such time
    after completion of the Services, Work Output and Product samples will be sent to Client and a reasonable return fee will
    be charged. If Client chooses to have KBI Biopharma dispose of Work Output and Product samples, a reasonable disposal fee
    will be charged. Not more than once annually, KBI Biopharma shall, during normal working hours, and with reasonable advance
    notice, permit Client or its authorized agents to inspect, audit and/or reproduce Records (i) to the extent necessary to adequately
    evaluate invoices submitted to Client by KBI Biopharma hereunder, (ii) as required by governmental authorities or (iii) as
    desired by Client for any other valid business purpose related to this Agreement.
	 	 
	5.	Change
    Orders
	 	 
	5.1	Change
    Orders. The budget for the Services specified in the Proposal and the estimated timelines specified therein are subject
    to a number of general and Proposal-specific assumptions. The assumptions relate to the design and objectives of the Proposal,
    manpower requirements, timing, capital expenditure requirements, if any, and other matters relating to the completion of the
    Services as may be set forth in the Proposal (“Proposal Assumptions”). KBI Biopharma also assumes
    that Client will cooperate and fully perform its obligations under this Agreement and the Proposal in a timely manner, that
    no event outside of KBI Biopharma’s control will occur (including without limitation a Force Majeure Event), and that
    there are no changes to any applicable laws, rules or regulations relating to the performance of the Services (the foregoing
    assumptions together with the Proposal Assumptions, collectively, the “Assumptions”). In the event
    of a failure of any of the Assumptions, the objectives of the Proposal cannot be achieved based on the Assumptions, or Client
    requests a change to the Proposal, then the scope of services to be performed shall be amended as provided in this Article
    5 (a “Modification”). Modifications shall also arise in the event (i) Client revises KBI Biopharma’s
    responsibilities, the specifications, the Proposal instructions, procedures, Assumptions, processes, test protocols, test
    methods, or analytical requirements; or (ii) Client’s requirements or any Client provided information is inaccurate
    or incomplete.
	 	 
	5.2	Change
    Order Process. In the event a Modification is requested by Client or by KBI Biopharma, KBI Biopharma shall provide Client
    with a change order containing an estimate of the required Modifications to the budget, activities and/or duration specified
    in the Proposal (“Change Order”). Client and KBI Biopharma shall negotiate in good faith for a period
    of ten (10) business days following receipt of such Change Order by Client (the “Change Order Negotiation Period”)
    to agree on a Change Order that is mutually acceptable. If practicable, and agreed to by Client, KBI Biopharma shall continue
    work on the Services during any such negotiations, but shall have no obligation to commence work with respect to any Change
    Order unless authorized in writing by Client. In the event the Parties are unable to agree upon such Change Order within the
    Change Order Negotiation Period, KBI Biopharma may elect to terminate this Agreement, or if reasonably possible, to perform
    the Services without regard to the unresolved Change Order; provided, however, that the estimated timelines shall be adjusted
    to reflect any delay during the Change Order Negotiation Period. In the event that this Agreement is so terminated, the provisions
    with respect to the effect of termination set forth in Section 24.5 shall apply. Any disputes arising from this Section 5.2
    shall be resolved in accordance with the dispute resolution procedures set forth in Article 22.

 

    	 	4	 

    	 

    

 

	5.3	Regulatory
    Changes. Notwithstanding the foregoing, with respect to any changes or modifications to the Proposal, Services or Product
    specifications dictated by the FDA or other applicable law or authority, Client shall be responsible for the costs of making
    such changes (including without limitation capital costs), validating the manufacturing process after any such change is made,
    and any increases in the cost of manufacturing the Product or provision of Services as a result of such change. With respect
    to any such changes dictated by the FDA or other applicable law or authority, the Parties will promptly meet to discuss the
    actions necessary to comply with such changes and the costs associated therewith. If, after reasonable efforts, the Parties
    are unable to agree on such changes (including the costs payable by Client pursuant to this Section 5.3), or if KBI Biopharma
    is unable to comply with such changes or modifications through the exercise of commercially reasonable efforts, KBI Biopharma
    may, in its sole discretion, terminate this Agreement upon written notice to Client.
	 	 
	5.4	Non-Material
    Changes. Notwithstanding the foregoing, Client acknowledges, however, that KBI Biopharma is given flexibility to conduct
    the Services, although not expressly stated in the Proposal, at the time and in the manner that KBI Biopharma deems reasonably
    necessary to fulfill its obligations under this Agreement. Such flexibility includes the right to make non-Material Changes
    to the Services and the Proposal, provided that KBI Biopharma implements all such changes only (a) in accordance with KBI
    Biopharma’s written standard operating procedures governing change control and (b) after confirming that such change
    does not affect either the related Product specifications if such specifications and requirements are fixed in writing by
    the Parties. As used herein, “Material Change” is defined as any variation, alteration or modification
    of activities, materials, or methods provided in the Proposal that (i) impacts the regulatory commitments or filings for the
    Product, (ii) affects the quality, purity, identity or strength of the Product, or (iii) materially increases the cost of
    manufacturing the Product.
	 	 
	6.	Compensation
	 	 
	6.1	Fees
    and Invoices. In consideration for KBI Biopharma performing the Services, Client shall pay to KBI Biopharma such amounts
    as described in the Price and Payment Terms section of the Proposal and as otherwise described in this Agreement. Following
    payment of an initial fee as provided in Section 6.2, the remainder of the service fees may be invoiced by KBI Biopharma monthly
    based on a billing schedule derived from the project schedule. Payments are due thirty (30) days from the date of receipt
    of each invoice, except as specifically provided in this Agreement. Charges for materials may be invoiced to Client and are
    payable at the time that KBI Biopharma orders such materials for Client’s project. Client agrees to pay to KBI Biopharma
    the cost of materials, consumables, and third party services plus a 5% fee to compensate KBI Biopharma for the cost of purchasing,
    material handling, inventory and administration and management of third party services necessary for KBI Biopharma to perform
    the Services. Late payments are subject to an interest charge of one and one half percent (11⁄2%) per month or, if less, the
    maximum legal interest rate per month. Failure to bill for interest due shall not be a waiver of KBI Biopharma’s right
    to charge interest. All payments are non-refundable. If paid by wire transfer, any applicable wire transfer fees must be included
    in the payment issued to KBI Biopharma. Client shall be responsible for, and shall promptly pay to KBI Biopharma upon demand,
    all costs and expenses (including without limitation reasonable attorneys’ fees and court costs) incurred by KBI Biopharma
    in connection with the collection of payments due under this Agreement. Unless within thirty (30) days of the date of invoice,
    Client has advised KBI Biopharma in good faith and in writing the specific basis for disputing an invoice, Client’s
    failure to promptly pay an invoice may, at KBI Biopharma’s election, constitute a material breach of this Agreement,
    and in addition to other remedies available to KBI Biopharma under Section 24.3, KBI Biopharma shall be entitled to suspend
    performance of Services until Client has paid any past due invoices.

 

    	 	5	 

    	 

    

 

	6.2	Start-up
    Payment. KBI Biopharma requires payment of an initial fee of one third of the service fees specified in the Proposal,
    prior to commencement of Services, and before KBI Biopharma will begin facilities preparation and resource allocation commitments
    with respect to Client’s project(s). Initial fees are due upon execution of this Agreement or the applicable Proposal,
    whichever occurs later. The initial fee shall be applied to the final project invoice. Upon termination of a Proposal or this
    Agreement, any remaining portion of the initial fee shall be applied to any outstanding amounts due from Client under the
    applicable Proposal. Unless otherwise provided in this Agreement or the applicable Proposal, initial fees are non-creditable,
    nonrefundable, non-transferable to any Services other than under the applicable Proposal.
	 	 
	6.3	Client
    Delays. KBI Biopharma has allocated resources to the Services that may be difficult or impractical to reallocate to other
    programs in the event of a delay attributable to Client’s failure to comply with its obligations under this Agreement,
    Client’s written request for delay, or scientific or technical issues related to Client’s Product which are outside
    of KBI Biopharma’s control. In recognition of this, KBI Biopharma shall be entitled to charge reasonable wind down and
    restart fees resulting from such delays. Where the Services include manufacturing Services, in the event that Client cancels
    or postpones a manufacturing run (based on the manufacturing slots reserved for Client in the most recent schedule provided
    to Client) for any reason other than a material breach of this Agreement by KBI Biopharma, or in the event that a manufacturing
    run is cancelled or postponed for scientific or technical issues related to Client’s Product which are outside of KBI
    Biopharma’s control, Client shall pay KBI Biopharma, upon receipt of an invoice, the following amounts, less all amounts
    already paid to KBI Biopharma for the applicable manufacturing Services:

 

	 	(i)	One
    hundred percent (75%) of the price of the Services for the applicable manufacturing run if such cancellation or postponement
    occurs thirty (30) days or fewer prior to the scheduled vial thaw date (as communicated by KBI Biopharma to Client in writing)
    or at any time following the scheduled vial thaw date;
	 	 	 
	 	(ii)	Seventy-five
    percent (50%) of the price of the Services for the applicable manufacturing run if such cancellation or postponement occurs
    from thirty-one (31) to sixty (60) days prior to the scheduled vial thaw date;
	 	 	 
	 	(iii)	Fifty
    percent (25%) of the price of the Services for the applicable manufacturing run if such cancellation or postponement occurs
    from sixty-one (61) to ninety (90) days prior to the scheduled vial thaw date; or

 

	6.4	Taxes.
    Any federal, state, county or municipal sales or use tax, excise tax, customs charges, duties or similar charge, or any other
    tax assessment (other than that assessed against KBI Biopharma’s income), license, fee or other charge lawfully assessed
    or charged on the manufacture, sale or transportation of Product sold or Services performed pursuant to this Agreement, and
    all government license filing fees and, if applicable, Prescription API User (PDUFA) annual establishment fees with respect
    to all Products and Services shall be paid by Client.
	 	 
	7.	Confidentiality
	 	 
	7.1	Confidential
    Information. During the Term and for a period of five (5) years thereafter, each Party shall maintain in confidence all
    information and materials of the other Party disclosed or provided to it (the “Recipient”) by the
    other Party (the “Disclosing Party”) including the terms and conditions (but not the existence)
    of this Agreement. Confidential information shall be identified as confidential in writing or, if disclosed verbally or by
    observation, summarized in writing and submitted to Recipient within thirty (30) days of the oral or visual disclosure thereof
    (together with all embodiments thereof, the “Confidential Information”); provided, however, (a)
    information need not be labeled or marked “confidential” to be deemed Confidential Information hereunder, if under
    the circumstances it is, or should be, understood to be confidential; and (b) in accordance with Section 7.2, information
    learned, observed or obtained by Client during any visit to KBI Biopharma’s facilities shall be deemed “Confidential
    Information” of KBI Biopharma hereunder, regardless of whether such information is marked “confidential”
    or subsequently summarized in writing.

 

    	 	6	 

    	 

    

 

	7.2	Exceptions.
    Notwithstanding the foregoing, Confidential Information shall not include that portion of information or materials that the
    Recipient can demonstrate by contemporaneous written records was:

 

	 	(i)	known
    to the public at the time of its disclosure to the Recipient, or thereafter became generally known to the public, other than
    as a result of actions or omissions of the Recipient in violation of this Agreement;
	 	 	 
	 	(ii)	disclosed
    to the Recipient on an unrestricted basis from a source unrelated to the Disclosing Party and not known by the Recipient to
    be under a duty of confidentiality to the Disclosing Party, as evidenced by competent written proof; or
	 	 	 
	 	(iii)	independently
    developed by the Recipient, or known by the Recipient prior the date of disclosure by the Recipient, without the use of Confidential
    Information of the Disclosing Party, as evidenced by competent written proof.

 

	7.3	Additional
    Protections. Each Party shall take all reasonable steps to maintain the confidentiality of the Confidential Information
    of the other Party, which steps shall be no less protective than those that such Party takes to protect its own information
    and materials of a similar nature, but in no event less than a reasonable degree of care. Neither Party shall use or permit
    the use of any Confidential Information of the other Party except for the purposes of carrying out its obligations or exercising
    its rights under this Agreement. All Confidential Information of a Party, including all copies and derivations thereof, is
    and shall remain the sole and exclusive property of the Disclosing Party and subject to the restrictions provided for herein.
    Neither Party shall disclose any Confidential Information of the other Party other than to those of its directors, officers,
    employees, independent contractors, and external advisors directly concerned with the carrying out of this Agreement, on a
    strictly applied “need to know” basis, provided that any such disclosure is made subject to obligations of confidentiality
    no less stringent than the obligations provided herein.
	 	 
	7.4	Permitted
    Disclosures. The obligations set forth in this Article 7 shall not apply to the extent that Recipient is required to disclose
    information by law, judicial order by a court of competent jurisdiction, or the rules of a securities exchange or requirement
    of a governmental agency for purposes of obtaining approval to test or market Product, or disclosures of information to a
    patent office for the purposes of filing a patent application as permitted in this Agreement; provided, however, that the
    Recipient shall provide prior written notice thereof to the Disclosing Party and sufficient opportunity for the Disclosing
    Party to review and comment on such required disclosure and request confidential treatment thereof or a protective order therefore
    and shall reasonably cooperate with the disclosing Party, at the disclosing Party’s expense, to seek appropriate measures
    requiring, amongst other things, that the Confidential Information so disclosed be used only for the purposes for which the
    order was issued and the Confidential Information so disclosed be redacted to limit the extent of disclosure to the minimum
    extent required to comply with the relevant court or government body order or law. Any disclosure permitted pursuant to this
    Section 7.4 shall not be considered an exception under Section 7.2.
	 	 
	7.5	Iniunctive
    Relief. The Parties acknowledge that either Party’s breach of this Article 7 may cause the other Party irreparable
    injury for which it may not have an adequate remedy at law. In the event of a breach, the non-breaching Party shall be entitled
    to seek injunctive relief in addition to any other remedies it may have at law or in equity, in accordance with Article 21.
	 	 
	8.	Inventions
	 	 
	8.1	Inventions.
    At Client’s request, KBI Biopharma will, at no cost, assign to Client any all data, ideas, information, developments,
    and inventions that are Product improvements, or improvements to Client Materials discovered by KBI Biopharma employees exclusively
    as a result of performing the Services under this Agreement (“Product Invention”); provided Client
    requests such assignment, in writing, within one (1) year of notification of such Product Invention. If Client requests and
    at Client’s expense, KBI Biopharma will execute any and all applications, assignments or other instruments and give
    testimony which shall be necessary to apply for and obtain letters of patent of the US or of any foreign country with respect
    to the Product Invention and Client shall compensate KBI Biopharma for the time devoted to such activities and reimburse it
    for expenses incurred. For Product Inventions assigned pursuant to this section, Client shall provide KBI Biopharma a royalty-free
    license to use such Product Inventions to the extent necessary to perform the Services.

 

    	 	7	 

    	 

    

 

	8.2	Process
    Technology and Process Inventions. Notwithstanding the foregoing, Client acknowledges that KBI Biopharma possesses and
    shall retain full ownership of information and technology relating to general manufacturing and analytical methods and processes,
    (“Process Technology”) and KBI Biopharma shall retain all rights to any data, ideas, know-how, information,
    developments, and inventions related to the Process Technology that are developed, conceived or reduced to practice in connection
    with the Services which can be generally applied to the production of biologics other than the Product and which do not use,
    reference, rely on or incorporate Client Materials (collectively, “Process Inventions”).
	 	 
	8.3	Process
    Technology and Process Inventions License. For Process Technology and Process Inventions, KBI Biopharma will grant to
    Client a perpetual, world-wide, royalty-free, non-exclusive license under terms mutually agreed to by the Parties for Client
    to use such Process Technology and/or Process Inventions to manufacture or have manufactured the Product. If KBI Biopharma
    requests, and at KBI Biopharma’s expense, Client will execute any and all applications, assignments or other instruments
    and give testimony which shall be necessary to apply for and obtain letters of patent of the US or of any foreign country
    with respect to the Process Inventions and KBI Biopharma shall compensate Client for the time devoted to such activities and
    reimburse it for expenses incurred.
	 	 
	8.4	Client
    Materials. All Client Materials that KBI Biopharma may have access to in order to perform the Services shall be owned
    exclusively by the Client. Nothing in this Agreement shall be deemed to grant any rights to KBI Biopharma in any Client Materials,
    other than the right for KBI Biopharma to use such Client Materials to perform the Services. For the purposes hereof, “Client
    Materials” means all Client proprietary materials and information, intellectual property and developments, including
    without limitation, all patents, patent applications, know-how, inventions, designs, concepts, technical information, manuals,
    or instructions which, as of the Effective Date, are owned, licensed or controlled by Client relating to the development,
    formulation, manufacture, processing, packaging, analysis or testing of the Product. In the event that Client loses or forfeits
    its rights in such proprietary Client Materials during the Term of this Agreement for any reason, Client shall provide notice
    of same to KBI Biopharma immediately and this Agreement shall be subject to immediate termination by KBI Biopharma at that
    time, subject to Section 24.2.
	 	 
	9.	Use
    of Intellectual Property Rights

 

Except
as expressly stated in this Agreement, no intellectual property rights of any kind or nature are conveyed by this Agreement and
neither Party shall have any right, title or interest in or to the other Party’s intellectual property rights for any purpose
whatsoever without such other Party’s prior written consent.

 

	10.	Facility
    Visits and Audits
	 	 
	10.1	Scope
    of Visit. Client shall have the right, upon no less than thirty (30) days’ prior written notice to KBI Biopharma,
    to visit KBI Biopharma and during regular business hours to observe the progress of the Services (i.e., person in the plant)
    and to inspect related records and data for the purpose of making quality control inspections so as to assure compliance with
    this Agreement. The form, participants, duration and procedures of all visits shall be subject to KBI Biopharma’s reasonable
    approval.

 

    	 	8	 

    	 

    

 

	10.2	Client
    Obligations. It shall be the duty of Client to follow KBI Biopharma’s reasonable safety rules while in, on or about
    KBI Biopharma’s premises. In addition, Client agrees that it and its subcontractors, employees, representatives, and
    guests of any of them shall: (a) be subject to the nondisclosure obligation described in Article 7, (b) follow such security
    and facility access procedures as are designated by KBI Biopharma, (c) be accompanied by a KBI Biopharma representative, (d)
    not enter areas of any KBI Biopharma facility at times when any third party’s products are being manufactured to assure
    protection of KBI Biopharma’s or third party’s confidential information, (e) stay within the areas of KBI Biopharma’s
    facilities designated for the visit and shall not visit areas of the facility other than those areas necessary for the performance
    of the facility visit provided for herein without KBI Biopharma’s prior written permission, and (f) use good faith efforts
    to avoid disrupting KBI Biopharma’s operations. All information learned, observed or obtained by Client during any visit
    to KBI Biopharma’s facilities shall be deemed “Confidential Information” of KBI Biopharma under Article
    7, regardless of whether such information is marked “Confidential” or subsequently summarized in writing. Client
    warrants that it, and its subcontractors, employees, agents, representatives, and any personnel acting on behalf of Client
    hereunder who visit the KBI Biopharma facility: (i) are not debarred, under subsections 306(a) or (b) of the Generic Drug
    Enforcement Act of 1992, as each may be amended from time to time, and (ii) will at all times comply with all safety and security
    regulations in effect from time to time and communicated by KBI Biopharma, and (iii) will at all times comply with Article
    7 with respect to the confidentiality and use of KBI Biopharma Confidential Information.
	 	 
	10.3	Costs.
    Client may conduct one (1) such quality assurance facility visit per calendar year using no more than two (2) auditors for
    a maximum of two (2) days at no cost to Client. Additional audits will be invoiced separately on a time and materials basis
    at the then current rate for such services.
	 	 
	11.	Regulatory
    Inspections
	 	 
	11.1	General.
    KBI Biopharma will promptly notify Client of any regulatory inspections directly relating to the Services, in accordance with
    the terms of the Quality Agreement (if applicable). KBI Biopharma agrees to reasonably cooperate with all regulatory authorities
    and submit to reasonable inspections by such authorities.
	 	 
	11.2	Costs.
    Client shall be responsible for, and shall promptly pay, all documented costs charged by a regulatory authority for inspections
    directly related to the Services to be provided in the Proposal. Subject to advance written approval of Client, KBI Biopharma’s
    costs in connection with regulatory inspections will be invoiced separately on a time and materials basis at the then current
    rate for such services.
	 	 
	12.	Warranties
	 	 
	12.1	Warranties
                                         of KBI Biopharma.

         

        12.1.1
        As of the Effective Date, KBI Biopharma represents and warrants to Client that it has all requisite corporate power and
        authority to enter into and perform all of its obligations under this Agreement. The execution and delivery of this Agreement
        and the consummation of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate
        action in respect thereof on the part of KBI Biopharma. Neither the execution and delivery of this Agreement nor the performance
        of the transactions contemplated hereby, nor compliance by KBI Biopharma with the provisions hereof, shall conflict with
        any obligations or agreements of KBI Biopharma to any person, contractual or otherwise.

         

        12.1.2
        KBI Biopharma warrants to Client that it will render the Services with due care, consistent with industry standards for
        work of a similar nature.

         

        12.1.3
        KBI Biopharma represents to Client that it is not debarred, and warrants to Client that it will not knowingly use in any
        capacity the services of any person debarred, under subsections 306(a) or (b) of the Generic Drug Enforcement Act of 1992,
        as each may be amended from time to time.

 

    	 	9	 

    	 

    

 

	 	12.1.4
                                         EXCEPT AS EXPRESSLY WARRANTED IN THIS SECTION 12.1, KBI BIOPHARMA MAKES NO REPRESENTATION
                                         OR WARRANTY WITH RESPECT TO THE SERVICES OR PRODUCT, EXPRESS OR IMPLIED, IN ANY MANNER
                                         AND EITHER IN FACT OR BY OPERATION OF LAW, AND SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED
                                         OR STATUTORY WARRANTIES, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY,
                                         FITNESS FOR A PARTICULAR PURPOSE, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF
                                         TRADE OR NONINFRINGEMENT. KBI BIOPHARMA MAKES NO WARRANTIES THAT THE EXECUTION OF THE
                                         SERVICES WILL RESULT IN ANY SPECIFIC QUANTITY OR AMOUNT OF PRODUCT.

         

        12.1.5
        KBI Biopharma has warranted, in Section 12.1.2, that the Services will be rendered with due care; however, no predetermined
        results are assured. Client understands and agrees that the Services are experimental in nature, that biopharmaceutical
        process development is subject to certain inherent risks, and as such, nothing in this Agreement shall be construed as
        a guarantee or warranty by KBI Biopharma that the Services, the Products, the Deliverables, or the materials, data, information
        of other results produced in connection therewith, will meet or otherwise satisfy any of the objectives, goals or targets
        stated in the Proposal. Client hereby acknowledges and agrees that there is absolutely no guarantee:

 

	 	(i)	that
    the results of the Services will be successful in any way or will be commercially exploitable, profitable or approved by any
    regulatory authority;
	 	 	 
	 	(ii)	that
    the Product, or any product, resulting from the Services will fulfill certain specifications or certain yields; or
	 	 	 
	 	(iii)	the
                                         Products, the Services and/or the results of the Services will satisfy the requirements
                                         of any regulatory agencies at the time of submission of such results to such agencies.

        

	 	 	 
	 	12.1.6 Client’s sole and exclusive remedy and KBI Biopharma’s sole and exclusive obligation under the warranties provided in this Agreement shall be the remedy provided in Section 3.4.

 

	12.2	Warranties
                                         of Client.

         

        12.2.1
        As of the Effective Date, Client represents and warrants to KBI Biopharma that it has all requisite corporate power and
        authority to enter into and perform all of its obligations under this Agreement. The execution and delivery of this Agreement
        and the consummation of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate
        action in respect thereof on the part of Client. Neither the execution and delivery of this Agreement nor the performance
        of the transactions contemplated hereby, nor compliance by Client with the provisions hereof, shall conflict with any
        obligations or agreements of Client to any person, contractual or otherwise.

         

        12.2.2
        Client represents and warrants to KBI Biopharma that it holds legal title to, or is fully entitled to provide, the materials,
        methods, plans, processes and other intellectual property necessary to conduct the Services and that KBI Biopharma’s
        performance of the Services will not violate or infringe on the patents, trademarks, service marks, copyrights, or intellectual
        property of any nature of any third party.

         

        12.2.3
        Client represents and warrants to KBI Biopharma that all materials provided by Client for use in the performance of the
        Services shall be free of contaminants and shall be fit for use in the performance of the Services.

         

        12.2.4
        Client represents and warrants to KBI Biopharma that it will hold, use and/or dispose of Product and all materials provided
        by KBI Biopharma in accordance with all applicable laws, rules and regulations.

 

    	 	10	 

    	 

    

 

	 	12.2.5
    Client represents and warrants to KBI Biopharma that no specific safe handling instructions are applicable to any substance
    or material provided by Client to KBI Biopharma, except as disclosed to KBI Biopharma in writing in sufficient time for review
    and training by KBI Biopharma prior to delivery of any such substance or material to KBI Biopharma.
	 	 
	13.	Indemnification
	 	 
	13.1	Indemnification
    by KBI Biopharma. Subject to Section 13.2 below, KBI Biopharma will indemnify, defend and hold harmless Client and its
    shareholders, directors, officers, employees and agents (each, a “Client Indemnitee”) from and
    against     all costs, losses, expenses (including reasonable attorneys’ fees) and direct damages (collectively,
    “Losses”)     resulting from all lawsuits, claims, demands, actions and other
    proceedings by or on behalf of any third party (collectively     “Claims”) to the extent arising
    out of or resulting from: (i) KBI Biopharma’s material breach     of any covenant, warranty, or a failure of any
    material representation made hereunder by KBI Biopharma; or (ii) KBI Biopharma’s     gross negligence or intentional
    misconduct, except in each case to the extent such Claims or Losses arise from negligence     or intentional misconduct on
    the part of a Client Indemnitee or a breach of this Agreement by Client.
	 	 
	13.2	Indemnification
    by Client. Client will indemnify, defend and hold harmless KBI Biopharma and its shareholders, directors, officers, employees
    and agents (each, a “KBI Biopharma Indemnitee”) from and against all Losses resulting from all Claims
    to the extent arising out of or resulting from: (i) Client’s material breach of any covenant, warranty, or a failure
    of any material representation made hereunder by Client; (ii) Client’s development (including the conduct of clinical
    trials in humans), handling, manufacturing, testing, storage, transportation, disposal, marketing, commercialization (including
    any recalls, field corrections or market withdrawals), distribution, promotion, sale or use of the Product or Deliverables
    (including without limitation as a result of any illness, injury or death to persons, including employees, agents or contractors
    of Client or damage to property); (iii) Client’s gross negligence or intentional misconduct; (iv) the infringement or
    alleged infringement as a result of, or arising from, the scope of the Services (or execution thereof), as requested by Client
    the Client Materials or the Product on the intellectual property rights of a third party, except in each case to the extent
    such Claims or Losses arise from negligence or intentional misconduct on the part of a KBI Biopharma Indemnitee or a breach
    of this Agreement by KBI Biopharma.
	 	 
	13.3	Indemnification
                                         Procedure. If any Claim covered by Article 13 is brought:

         

        13.3.1
        the indemnified Party shall promptly notify the indemnifying Party in writing of such Claim, provided, however, the failure
        to provide such notice within a reasonable period of time shall not relieve the indemnifying Party of any of its obligations
        hereunder except to the extent the indemnifying Party is prejudiced by such failure or delay;

         

        13.3.2
        the indemnifying Party shall assume, at its cost and expense, the sole defense of such Claim through counsel selected
        by the indemnifying Party and reasonably acceptable to the other Party, except that those indemnified may at their option
        and expense select and be represented by separate counsel;

         

        13.3.3
        the indemnifying Party shall maintain control of such defense and/or the settlement of such Claim;

         

        13.3.4
        the indemnified Party may, at its option and expense, participate in such defense, and if it so participates, the indemnifying
        Party and the indemnified Party shall cooperate with one another in such defense;

         

        13.3.5
        the indemnifying Party will have authority to consent to the entry of any settlement or otherwise to dispose of such Claim
        (provided and only to the extent that an indemnified Party does not have to admit liability and such judgment does not
        involve equitable relief), and an indemnified Party may not consent to the entry of any judgment, enter into any settlement
        or otherwise to dispose of such Claim without the prior written consent of the indemnifying Party (not to be unreasonably
        withheld or delayed); and

 

    	 	11	 

    	 

    

 

	 	13.3.6
    the indemnifying Party shall pay the full amount of any judgment, award or settlement with respect to such Claim and all other
    costs, fees and expenses related to the resolution thereof; provided, however, that such other costs, fees and expenses have
    been incurred or agreed, as the case may be, by the indemnifying Party in its defense or settlement of the Claim.
	 	 
	14.	Limitations
    of Liability
	 	 
	14.1	Notwithstanding
    anything herein to the contrary, KBI Biopharma and Client’s total liability for any loss, including without limitation
    Losses indemnifiable by KBI Biopharma pursuant to Article 13, suffered by the other party resulting from this Agreement, work
    conducted pursuant to any Proposal or any other liability of any nature, shall be limited to the payment of damages which
    shall not exceed the amount paid by Client to KBI Biopharma under the Proposal under which the loss arose. However, the foregoing
    limitations of liability will not apply to breaches of confidentiality obligations under Article 7 or Client’s obligations
    to KBI Biopharma under Section 13, Indemnification.
	 	 
	14.2	EXCEPT
    AS EXPRESSLY PROVIDED IN THIS AGREEMENT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY INCIDENTAL, INDIRECT, PUNITIVE,
    CONSEQUENTIAL (INCLUDING WITHOUT LIMITATION, LOST PROFITS), EXEMPLARY OR SPECIAL DAMAGES OF ANY TYPE, ARISING IN CONNECTION
    WITH THIS AGREEMENT, ANY PROPOSAL, QUALITY AGREEMENT OR ATTACHMENTS OR DOCUMENTS RELATED THERETO, WHETHER OR NOT FORESEEABLE
    AND WHETHER SUCH DAMAGES ARISE IN TORT, CONTRACT, EQUITY, STRICT LIABILITY, OR OTHERWISE, EVEN IF THE PARTY HAS BEEN ADVISED
    OF THE POSSIBILITY OF SUCH DAMAGES.

 

15
Force Majeure

 

Except
for each Party’s payment, confidentiality and indemnity obligations, the obligations of either Party under this Agreement
shall be excused during each period of delay caused by matters such as acts of God, strikes, supplier delays, shortages of raw
materials, power failure, government orders, changes in governmental regulation (including without limitation, acts of the FDA
or an applicable foreign equivalent), or acts of war or terrorism, which are reasonably beyond the control of the Party obligated
to perform (each, a “Force Majeure Event”). A Force Majeure Event shall not include a lack of funds,
bankruptcy or other financial cause or disadvantage. Nothing contained in this Agreement shall affect either Party’s ability
or discretion regarding any strike or other employee dispute or disturbance and all such strikes, disputes or disturbances shall
be deemed to be beyond the control of such Party. A Force Majeure Event shall be deemed to continue only so long as the affected
Party shall be using its commercially reasonable effort to overcome such condition. If either Party shall be affected by a Force
Majeure Event, such Party shall give the other Party prompt notice thereof, which notice shall contain the affected Party’s
estimate of the duration of such condition and a description of the steps being taken or proposed to be taken to overcome such
Force Majeure Event. Any delay, or invalidity in the results delivered, in the performance of the Services occasioned by any such
cause shall not constitute a default under this Agreement, and the obligations of the Parties shall be suspended during the period
of delay so occasioned. During any period of any Force Majeure Event, the Party that is not directly affected by such Force Majeure
Event may take any reasonable action necessary to mitigate the effects of such Force Majeure Event. If any part of the Services
is invalid as a result of such disability, KBI Biopharma will, upon written request from Client, but at Client’s sole cost
and expense, repeat that part of the Services affected by the Force Majeure Event.

 

	16.	Insurance
	 	 
	16.1	KBI
    Biopharma Insurance. KBI Biopharma shall secure and maintain in full force and effect throughout the Term policies of
    insurance for (a) workers’ compensation in accordance with applicable statutory requirements, employer’s liability
    in an amount not less than $1,000,000, and automobile liability in an amount not less than $1,000,000, (b) commercial general
    liability in an amount not less than $2,000,000 per occurrence and $2,000,000 in the aggregate, and (c) products liability
    in an amount not less than $2,000,000 per occurrence and $2,000,000 in the aggregate.

 

    	 	12	 

    	 

    

 

	16.2	Client
    Insurance. Client shall secure and maintain in full force and effect throughout the Term, and for a period of three (3)
    years after completion of any clinical trials in which any Product provided under this Agreement is used, policies of insurance
    for (a) workers’ compensation in accordance with applicable statutory requirements, employer’s liability in an
    amount not less than $1,000,000, and automobile liability in an amount not less than $1,000,000, (b) primary and noncontributory
    commercial general liability in an amount not less than $2,000,000 per occurrence and $2,000,000 in the aggregate, (c) primary
    and noncontributory products/completed operations liability in an amount not less than $5,000,000 per occurrence and $5,000,000
    in the aggregate, and (d) primary and noncontributory umbrella liability in an amount not less than $5,000,000 per occurrence
    and $5,000,000 in the aggregate.
	 	 
	17.	Independent
    Contractor; Non-Solicitation
	 	 
	17.1	Independent
    Contractor. KBI Biopharma shall perform the Services as an independent contractor of the Client. The relationship between
    the Parties shall not constitute a partnership, joint venture or agency nor constitute either Party as the agent, employee
    or legal representative of the other. The Parties agree that neither shall have power or right to bind or obligate the other,
    nor shall either hold itself out as having such authority.
	 	 
	17.2	Non-Solicitation.
    During the Term of this Agreement and for one (1) year thereafter, each Party agrees not to directly or indirectly solicit
    to hire or hire (in any capacity) any person who is an employee, contractor, consultant or representative of the other Party;
    provided that newspaper, internet or other advertisements to fill job openings shall not be deemed to be “solicitation”
    hereunder. Any exceptions to this provision must be in writing and signed by each Party and, for each person that is hired
    in such manner, the hiring Party shall compensate the other Party at the rate of 30% of such person’s annualized base
    salary.

 

	18.	 Publicity

 

Either
Party may only issue press releases or public disclosures describing the Services provided hereunder with the prior written consent
of the other Party. The use of the name, trademark, logo, or other identifying materials of either Party or its employees in any
publicity, advertising or promotional material shall require the other Party’s express prior written consent.

 

	19.	Shipment
	 	 
	19.1	General.
    Unless otherwise agreed in writing by the Parties, all Deliverables, products, raw materials, samples components or other
    materials provided hereunder by KBI Biopharma shall be made available for shipment Ex Works (INCOTERMS 2010) KBI Biopharma’s
    facilities. For purposes of clarification, Ex Works means that carriage of goods shall be arranged by Client, and the cost
    of such carriage and risk of loss shall transfer to Client when the goods have been made available for shipment at KBI Biopharma’s
    facilities. KBI Biopharma shall package for shipment such product, raw materials, samples, components or other materials at
    Client’s expense (including insurance) and in accordance with Client’s reasonable written instructions.
	 	 
	19.2	Shipping
    Charges. Client shall pay to KBI Biopharma, in addition to actual shipping costs, a handling fee of One Hundred Dollars
    ($100) for each standard shipment of any Deliverables, products, raw materials, samples, components or other materials provided
    hereunder.

 

    	 	13	 

    	 

    

 

	20.	Notices

 

Any notice required to be given pursuant to the terms and provisions hereof shall be in writing and shall
be sent by certified or registered mail, postage prepaid with return receipt requested, or by nationally recognized overnight courier,
postage prepaid with return receipt requested, or by confirmed facsimile (with printed confirmation of receipt), to the other Party
at the following address:

 

If
to Client:

 

BriaCell
Therapeutics Corporation

820
Heinz Ave.

Berkeley,
CA 94710 Attention: William V. Williams, M.D., President and CEO

 

If
to KBI Biopharma:

 

KBI
Biopharma, Inc.

1101
Hamlin Road

Durham,
North Carolina 27704

Attention:
Vice President Finance

 

with
a copy to the Vice President and General Counsel, at the same address.

 

Each
notice shall be deemed sufficiently given, served, sent, or received for all purposes at such time as it is delivered to the addressee
or at such time as delivery is refused by the addressee upon presentation.

 

	21.	Choice
    of Law

 

This
Agreement shall be construed and enforced in accordance with the laws of and in the venue of the State of California, without
regard to its, or any other jurisdiction’s, rules regarding conflicts or choice of laws. The Parties waive application of
the provisions of the 1980 U.N. Convention on Contracts for the International Sale of Goods, as amended.

 

	22.	Dispute
    Resolution
	 	 
	22.1	Initial
    Attempts to Resolve Disputes. If a dispute arises between the Parties in connection with this Agreement, the respective
    presidents or senior executives of KBI Biopharma and Client shall first meet as promptly as practicable and attempt to resolve
    in good faith such dispute. If such parties cannot resolve the dispute within thirty (30) days after written notice given
    by one Party to the other specifically invoking this stage in the dispute resolution procedure, either Party may by written
    notice to the other commence the arbitration process set forth in Section 22.2 below.
	 	 
	22.2	Arbitration.
    If a dispute has not been resolved by negotiation as provided in Section 22.1 above, then, except as otherwise provided in
    this Section 22.2, the dispute will be finally settled by binding arbitration in accordance with the Commercial Arbitration
    Rules of the AAA then in effect, by three (3) arbitrators, one of whom will be designated by each Party and the third of whom
    will be designated by the two so designated. The arbitration, it shall be conducted in English and held in New York, New York.
    The arbitrators will render their award in writing and, unless all Parties agree otherwise, will include an explanation in
    reasonable detail of the reasons for their award. Judgment upon the award rendered by the arbitrators may be entered in any
    court having jurisdiction thereof. The Parties expressly waive any putative right they may otherwise have to seek an award
    arising out of any dispute hereunder of punitive damages or any other damages limited or excluded by this Agreement. The arbitrator
    will have the authority to grant injunctive relief and other specific performance. The arbitrator will, in rendering its decision,
    apply the substantive law of the State of New York, without regard to its conflict of laws provisions. The decision and/or
    award rendered by the arbitrator will be final and non-appealable (except for an alleged act of corruption or fraud on the
    part of the arbitrator).

 

    	 	14	 

    	 

    

 

	22.3	Expenses.
    All expenses and fees of the arbitrators and expenses for hearing facilities and other expenses of the arbitration will be
    borne equally by the Parties unless the Parties agree otherwise or unless the arbitrators in the award assess such expenses
    against one of the Parties or allocate such expenses other than equally between the Parties. Each of the Parties will bear
    its own counsel fees and the expenses of its witnesses except (i) to the extent otherwise provided in this Agreement or by
    applicable law or (ii) to the extent the arbitrators in their discretion determine for any reason to allocate such fees and
    expenses among the Parties in a different manner. Any attorney or retired judge who serves as an arbitrator will be compensated
    at a rate equal to his or her current regular hourly billing rate unless otherwise mutually agreed upon by the Parties and
    the arbitrator.
	 	 
	22.4	Interlocutory
    Relief. Compliance with this Article 22 is a condition precedent to seeking relief in any court or tribunal in respect
    of a dispute, but nothing in this Article 22 will prevent a Party from seeking interlocutory relief in the courts of appropriate
    jurisdiction provided in Article 21, pending the arbitrator’s determination of the merits of the controversy, if applicable
    to protect the Confidential Information, property or other rights of that Party. For such disputes, the Parties agree to and
    submit to the sole and exclusive jurisdiction of the New York courts, both state and federal.
	 	 
	23.	Assignment
    and Delegation
	 	 
	23.1	Assignment.
    This Agreement between the Parties shall not be assigned in whole or in part by either Party without the prior written consent
    of the other, which consent shall not be unreasonably withheld or delayed; provided, however, either Party may assign this
    Agreement in its entirety without the other Party’s consent, upon written notice to the other Party, as part of: (a)
    the sale of all or substantially all of the assets or the entire business to which this Agreement relates, or (b) a merger,
    consolidation, reorganization or other combination with or into another person or entity, in each case, pursuant to which
    the surviving entity or assignee assumes in writing the assigning or merging Party’s obligations hereunder. Any attempt
    to assign, or purported assignment of, this Agreement in contravention to this Section 23.1 shall be void ab initio
    and of no effect. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective
    successors and permitted assigns.
	 	 
	23.2	Delegation.
    Neither Party may delegate any performance under this Agreement; however, performance of the Services hereunder may be delegated
    or subcontracted by KBI Biopharma with the written consent of Client, which consent shall not be unreasonably withheld.
	 	 
	24.	Term
    and Termination
	 	 
	24.1	Term.
    The term of this Agreement (the “Term”) shall be from the Effective Date until the fifth
    anniversary thereof, unless extended or earlier terminated as provided herein. If the Services have not been completed at
    the end of the initial term, the Term will thereafter be extended for successive one year periods until the Services have
    been completed. Additionally, the Agreement may be terminated sooner as provided in Section 24.2 or 24.3, or the Term may
    be extended by written agreement of the Parties.
	 	 
	24.2	Termination
    without Breach. Client may terminate this Agreement or a Proposal prior to completion of the Proposal by providing sixty
    (60) days written notice to KBI Biopharma, subject to the conditions of this Section 24.2. Upon receipt of such notice of
    termination, KBI Biopharma will promptly scale down the affected portion of the Proposal and use reasonable commercial efforts
    to avoid (or minimize, where non-cancellable) additional expenses. It is understood between the Parties that KBI Biopharma
    will incur substantial costs for reservations of resources and planning in order to undertake the provision of Services. Therefore,
    in the event that this Agreement or a Proposal is terminated for any reason other than (i) by Client for KBI Biopharma’s
    material breach in accordance with Section 24.3 or (ii) by Client in accordance with Section 24.4, Client shall pay KBI Biopharma
    upon receipt of invoice all of its costs for Services performed and expenses incurred or irrevocably obligated related to
    the Proposal and wind down of activities, plus, as liquidated damages and not as a penalty, an amount equal to the greater
    of (a) twenty percent (20%) of the cost of the Services not yet performed as of the effective date of termination for any
    Proposal terminated under this Section 24.2; or (b) the amounts due pursuant to Section 6.3 for cancellation or postponement
    of any manufacturing runs scheduled within 180 days of the termination.

 

    	 	15	 

    	 

    

 

	24.3	Termination
    for Breach. In the event of a material breach of this Agreement by a Party that is not cured within thirty (30) days of
    written notice of such breach by the non-breaching Party, the non-breaching Party may terminate this Agreement or a Proposal
    immediately upon written notice. Upon such termination, KBI Biopharma will promptly scale down the affected portion of the
    Proposal and use its reasonable commercial efforts to avoid (or minimize, where non-cancellable) additional expenses. It is
    understood between the Parties that KBI Biopharma will incur substantial costs for reservations of resources and planning
    in order to undertake the provision of Services. Therefore, in the event of termination under this Section 24.3 by KBI Biopharma,
    Client shall pay KBI Biopharma upon receipt of invoice all of its costs incurred or irrevocably obligated related to the Proposal
    and wind down of activities, plus, as liquidated damages and not as a penalty, an amount equal to the greater of (a) fifty
    percent (50%) of the cost of the Services not yet performed as of the effective date of termination for any Proposal terminated
    under this Section 24.2; or (b) the amounts due pursuant to Section 6.3 for cancellation or postponement of any manufacturing
    runs scheduled within 180 days of the termination. . In the event of termination under this Section 24.3 by Client, Client’s
    sole remedy shall be a reduction in the total contract price for the Services in an amount equal to the difference between:
    (i) the total contract price for the Proposal; and, (ii) the price of the Services properly performed.
	 	 
	24.4	Bankruptcy.
    This Agreement may be terminated upon written notice by a Party in the event: (i) the other Party voluntarily enters into
    bankruptcy proceedings; (ii) the other Party makes an assignment for the benefit of creditors; (iii) a petition is filed against
    the other Party under a bankruptcy law, a corporate reorganization law, or any other law for relief of debtors or similar
    law analogous in purpose or effect, which petition is not stayed or dismissed within thirty (30) days of filing thereof; or
    (iv) the other Party enters into liquidation or dissolution proceedings or a receiver is appointed with respect to any assets
    of the other Party, which appointment is not vacated within one hundred and twenty (120) days.
	 	 
	24.5	Effects
    of Termination. Upon termination of this Agreement for any reason, each Party shall, as soon as practicable, but in any
    event within ten (10) business days of the effective date of termination, return to the other all Confidential Information
    which it possesses that belongs to the other Party, except that each may retain a copy in its law department for record keeping
    purposes. Upon termination of this Agreement, KBI Biopharma will furnish to Client a complete inventory of all work in progress
    and an inventory of all Product processed pursuant to the Proposal. Upon termination of this Agreement, neither Party shall
    use or exploit in any manner whatsoever any intellectual property rights or Confidential Information of the other Party, except
    as may be specifically provided in this Agreement. With respect to the liquidated damages set forth in Section 24.2 and Section
    24.3, the Parties acknowledge and agree that (i) actual damages would be difficult or impracticable to ascertain, (ii) the
    amounts set forth in Section 24.2 or Section 24.3, as applicable, represent the Parties reasonable estimate of such damages,
    and (iii) the amounts set forth in this Section 24.2 or Section 24.3, as applicable, are not unreasonable under the circumstances
    existing at the time this Agreement was entered.
	 	 
	25.	Survival

 

Articles
4, 7, 8, 9, 13, 14, 18, 20, 21, 22, 25, 26, and Sections 6.4, 12.2.4, 16.2, 24.2, 24.3 and 24.5 hereof shall survive
termination or expiration of this Agreement. Expiration or termination shall not extinguish the rights and remedies of
either Party with respect to any antecedent breach of any of the provisions of this Agreement or payments due or earned under
this Agreement.

 

    	 	16	 

    	 

    

 

	26.	Severability

 

In
the event that any one or more of the provisions of this Agreement should be held for any reason by any court or authority having
final jurisdiction over this Agreement, or over any of the Parties to this Agreement, to be invalid, illegal, or unenforceable,
such provision or provisions shall be reformed to approximate as nearly as possible the intent of the Parties, and if not reformable,
shall be divisible and deleted in such jurisdictions; elsewhere, this Agreement shall not be affected.

 

	27.	Waiver
    and Remedies

 

The
delay or waiver (or single or partial exercise) by either Party hereto of any right, power, or privilege hereunder, or of any
failure of the other Party to perform, or of any breach by the other Party, shall not be deemed a waiver of any other right, power,
or privilege hereunder or of any other breach by or failure of such other Party, whether of a similar nature or otherwise. Any
such waiver must be made in writing. Except as may otherwise be specifically set forth in this Agreement, no remedy referred to
in this Agreement is intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to in
this Agreement or otherwise available under law or equity. No Party shall have any right of set off with respect to amounts it
has an obligation to pay hereunder. No provision of this Agreement shall in any way inure to the benefit of any third person so
as to constitute to any such person a third-party beneficiary of this Agreement or otherwise give rise to any cause of action
in any person not a Party hereto.

 

	28.	Entire
    Agreement, Amendment, Construction, Precedence

 

This
Agreement, the Proposal(s), and any applicable Quality Agreement constitute the entire agreement between the Parties and supersede
all prior and contemporaneous negotiations, representations, commitments, agreements and understandings between the Parties (whether
written or oral) relating to the subject matter hereof. This Agreement may not be amended or modified without the mutual written
consent of both Parties. In the event of any conflict among the components of this Agreement, the following order of precedence
shall apply: (i) the terms and conditions of the Agreement, (ii) the Quality Agreement (if existing), and (iii) the Proposal.
If Client chooses to issue a purchase order for the delivery of the Services or any component thereof, such purchase order should
reference this Agreement and shall be issued solely for the convenience of Client and to provide subject matter description; however,
any legal terms and conditions contained or referenced therein shall be of no effect.

 

	29.	Counterparts

 

This
Agreement, the Quality Agreement(s), the Proposal(s) and any other attachment may be executed in counterparts, each of which will
be deemed an original but all of which together will constitute a single instrument. A facsimile or electronic transmission of
the above referenced documents, or a counterpart, shall be legal and binding on the Parties.

 

[Signature
Page Follows.]

 

    	 	17	 

    	 

    

 

The
Parties by their authorized representative execute this Agreement as of the Effective Date.

 

	KBI BIOPHARMA, INC.	 	BRIACELL THERAPEUTICS CORPORATION
	 	 	 	 	 
	By:	 	 	By	
	Name:	Tim Melly	 	Name	William V. William
	Title:	President	 	Title	PRESIDENT & CEO
	Date	17 May 2017	 	Date	17 May 2017

 

    	 	18	 

    	 

    

 

Attachment
One: Proposal

 

    	 	19	 

    	 

    

 

Attachment
Two: Quality Agreement

 

    	 	20

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