Document:

Exhibit 10.2

 

CERTAIN INFORMATION IDENTIFIED IN THIS DOCUMENT,
MARKED BY BRACKETS AND ASTERISKS (“[***]”), HAS BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.

 

EXECUTION VERSION

 

 

 

 

 

 

 

 

 

 

 

 

EXCLUSIVE LICENSE AGREEMENT

 

BY AND BETWEEN

 

CLS Therapeutics Ltd

 

AND

 

Xenetic Biosciences, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

EXCLUSIVE LICENSE AGREEMENT

 

This Exclusive License Agreement, made this 26th day of
April, 2022 (the “Effective Date”), is by and between CLS Therapeutics LTD, a company organized under the laws of Guernsey
with principal offices located at of PO Box 175, Frances House, Sir William Place, St Peter Port, Guernsey, GY1 4HQ , UK (“CLS”)
and Xenetic Biosciences, Inc., a Nevada corporation, with offices located at 40 Speen St., Ste 102, Framingham, MA 01701 (“XBIO”).
Each of XBIO and CLS may be referred to, individually, as a “Party”, and, collectively, as the “Parties”.

 

RECITALS

 

WHEREAS, CLS owns or controls certain patent
rights and know-how related to the use of DNase in combination with CAR T therapy for treatment of cancer; and

 

WHEREAS, XBIO is interested in obtaining
an exclusive license under such patent rights and to such know-how to develop and commercialize pharmaceutical products and methods incorporating
DNase, and CLS is willing to grant XBIO such an exclusive license, in each case on the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the
foregoing and the mutual covenants contained in this Agreement, CLS and XBIO, intending to be legally bound, hereby agree as follows:

 

ARTICLE
I 

DEFINITIONS

 

When used in this Agreement, each of the following
capitalized terms, whether used in the singular or plural, shall have the meaning set forth in this Article I.

 

1.1.         
“Affiliate” of an entity means any person or entity which, directly or indirectly, controls, is controlled by
or is under common control with such entity. For the purposes of this definition, “control” refers to any of the following:
(i) direct or indirect ownership of fifty percent (50%) or more of the voting securities entitled to vote for the election of directors
in the case of a corporation, or of fifty percent (50%) or more of the equity interest with the power to direct management in the case
of any other type of legal entity; (ii) status as a general partner in any partnership; or (iii) any other arrangement where a person
or entity possesses, directly or indirectly, the power to direct the management or policies of an entity, whether through ownership of
voting securities, by contract or otherwise.

 

1.2.         
“Agreement” means this Exclusive License Agreement, including any and all exhibits, schedules, appendices and
other addenda to it and as it may be amended from time to time in accordance with the provisions of this document.

 

1.3.         
“Business Day” means Monday through Friday, except the legal public holidays specified in 5 U.S.C. 6103, any
day declared to be a holiday by federal statute or executive order, or any day with respect to which the U.S. Office of Personnel Management
has announced that Federal agencies in the Washington, DC, area are closed.

 

1.4.         
“Calendar Day” means the period of elapsed time, using Coordinated Universal Time or local time that begins
at midnight and ends 24 hours later at the next midnight.

 

 

 

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1.5.         
“CLS Improvement” means an Improvement made by CLS or its Affiliates.

 

1.6.         
“Combination Product” means any pharmaceutical product containing both a Licensed Product component and one
or more other active pharmaceutical ingredients.

 

1.7.         
“Commercially Reasonable Efforts” means the level of efforts and resources, including financial resources, at
least equal to those normally used by a company in the pharmaceutical or biotechnology industry to conduct the relevant activity, including,
in the case of research, development or commercialization, the level of effort and resources at least equal to those normally used by
such a company to research, develop, manufacture or commercialize, as the case may be, a product owned by such company or to which it
has rights, which product is at a similar stage in its development or product life and is of a similar market and profitability potential
to Licensed Product, taking into account all relevant factors including the patent and other proprietary position of the product, product
labeling or anticipated labeling, market potential, financial return, medical and clinical considerations, regulatory environment and
competitive market conditions, and other technical, legal, scientific, medical or commercial factors that such a company would deem to
be relevant.

 

1.8.         
“Compound” means a deoxyribonulease enzyme, including, but not limited to those selected from DNase I, DNase
X, DNase γ , DNase 1L1, DNase 1L2, DNase 1L3, DNase II, DNase IIα, DNase II β, Caspase-activated DNase (“CAD”),
Endonuclease G (“ENDOG”), Granzyme B (“GZMB”), phosphodiesterase I, lactoferrin, acetyl-cholinesterase, and mutants
or derivatives thereof, including, but not limited to one or more mutations in the actin binding site thereof.

 

1.9.         
“Confidential Information” shall mean any and all confidential and proprietary information, including chemical
or biological materials, chemical structures, sequence information, commercialization plans, correspondence, customer lists, data, development
plans, formulae, improvements, Know-How, processes, regulatory filings, clinical trial designs, clinical trial protocols, data read-outs
from clinical trials, reports, strategies, techniques, or other information, in each case that are disclosed by or on behalf of a Party
or its Affiliates (the “Disclosing Party”) to the other Party or its Affiliates (the “Receiving Party”)
pursuant to this Agreement, regardless of whether any of the foregoing are marked “confidential” or “proprietary”
or communicated to the other Party by or on behalf of the Disclosing Party in oral, written, visual, graphic, or electronic form. Confidential
Information shall not include any information that: (w) is already known to the Receiving Party at the time of disclosure (as evidenced
by written records or other competent evidence) without any obligation to keep it confidential or any restriction on its use, prior to
disclosure by the Disclosing Party; or (x) is generally available to the public or becomes publicly known through no wrongful act of the
Receiving Party or its representatives; or (y) is subsequently received by the Receiving Party from a Third-Party lawfully in possession
thereof and without any obligation to keep it confidential or any restriction on its use; or (z) is developed independently by the Receiving
Party without reference or reliance upon the Disclosing Party’s Confidential Information (as evidenced by written records or other
competent evidence). Any combination of features or disclosures shall not be deemed to fall within the foregoing exclusions merely because
individual features are published or available to the general public or in the rightful possession of the Receiving Party unless the combination
itself and principle of operation are published or available to the general public or in the rightful possession of the Receiving Party.

 

1.10.       
“Control” or “Controlled”, other than for purposes of Section 1.1, means the possession of
the right to grant licenses or sublicenses or to disclose proprietary or trade secret information without violating the terms of any agreement
or other arrangement with a Third Party and without misappropriating or infringing the proprietary or trade secret information of a Third
Party.

 

1.11.       
“Cover”, “Covering” or “Covered” means, with respect to a Licensed Patent
and invention, that, in the absence of ownership of, or a license under, such Licensed Patent, the practice of such invention would infringe
a Valid Claim of such Licensed Patent (including in the case of a Licensed Patent that is a patent application, a Valid Claim of such
patent application as if such patent application were an issued patent).

 

 

 

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1.12.       
“D14” means a Vector that incorporates the genetic sequence of the Compound and other necessary genetic regulatory
elements for the expression of the Compound by transformed cells in a subject and a method of providing the vector to the subject for
expression of the Compound by the transformed cells for the treatment of a disease in the Field.

 

1.13.       
“D20” means administration of a Compound to a subject either (i) by co-administering the Compound in conjunction
with an adoptive cell therapy (“ACT”) or (ii) by transforming the adoptive cells used as part of the ACT with the genetic
sequence of the Compound and other necessary genetic regulatory elements for the expression and/or secretion of the Compound by the adoptive
cells, for the treatment of a disease in the Field.

 

1.14.       
“D20 Product” means a Compound that is administered to a subject pursuant to Section 1.13.

 

1.15.       
“EMA” means the European Medicines Agency or any successor agency thereto.

 

1.16.       
“EU” means the countries of the European Union, as it is constituted as of the Effective Date and as it may
be expanded from time to time.

 

1.17.       
“FDA” means the United States Food and Drug Administration or any successor agency thereto.

 

1.18.       
“Field” means therapeutic, prophylactic or palliative, uses in treating a cancer.

 

1.19.       
“First Commercial Sale”, as to a particular country, means the first arms-length commercial sale of a Licensed
Product by XBIO, its Affiliates or Sublicensees to a Third Party in such country after approval of the NDA, or if approval of an NDA is
not required in such country, then following receipt of Marketing Approval required to market such Licensed Product in such country.

 

1.20.       
“GAAP” means U.S. generally accepted accounting principles applied on a consistent basis, or any other accounting
principles generally accepted for public companies, such as International Financial Reporting Standards. Unless otherwise defined or stated,
financial terms shall be calculated under GAAP.

 

1.21.       
“Improvements” means any development, modification or improvement arising out of or relating to the technology
described in the Licensed Technology, including the Compound and uses thereof, that enhances the usability, functionality, efficiency,
performance or another characteristic of the Licensed Technology.

 

1.22.       
“Know-how” means all present and future technical information, methods, knowledge, data information and know-how,
patentable or otherwise, in written or electronic form.

 

1.23.       
“Licensed Know-how” means any Know-how listed on Exhibit B attached hereto and any CLS Know-how developed following
the Effective Date that relate to or incorporate any information and/or know-how necessary to research, develop, make, use, offer to sell,
sell or export a Licensed Product.

 

1.24.       
“Licensed Patents” means:

 

(a)            The
patents and patent applications listed on Exhibit A attached hereto and incorporated herein by reference;

 

(b)            the
patents and patent applications included in the CLS Improvements and listed on Exhibit A attached hereto;

 

 

 

    	 	4	 

     

    

 

(c)            any
patents and patent applications that Cover any CLS Improvements developed by CLS following the Effective Date that are necessary or useful
to research, develop, make, use, offer to sell, sell or export a Licensed Product and that are necessary to practice the inventions disclosed
or claimed by the patents and patent applications listed on Exhibit A; and

 

(d)           all
continuations, continuations-in-part, patents of addition, divisions, renewals, reexaminations, reissues and extensions (including any
patent term extension under 35 USC §156) of any of the foregoing patents and patent applications; and any Supplementary Protection
Certificate (within the meaning of such term under Council Regulation (EU) No. 1768/92) or any other similar statutory protection in
relation to the relevant Licensed Product before or after the Effective Date.

 

1.25.       
“Licensed Product” means any product comprising, incorporating or containing the D20 Product, including, but
not limited to, a pharmaceutically acceptable salt, polymorph, crystal form, prodrug, or solvate of the D20 Product, all to the extent
such product or its use, manufacture or importation is Covered by a Licensed Patent or relies upon, references or incorporates the Licensed
Know-How or CLS Improvements.

 

1.26.       
“Licensed Technology” means the Licensed Patents and CLS Improvements.

 

1.27.       
“Major EU Markets” means the United Kingdom, France, Italy, Spain and Germany.

 

1.28.       
“Marketing Approval” means any approval, including price approval, registration, license or authorization from
any Regulatory Authority required to market and sell a Licensed Product in a jurisdiction and shall include an approval, registration,
license or authorization granted in connection with an NDA.

 

1.29.       
“Material Adverse Effect” means any change in or effect on the business of XBIO that is, or could reasonably
be expected to be, materially adverse to the business, assets (including intangible assets), liabilities (contingent or otherwise), condition
(financial or otherwise) or results of operations of XBIO.

 

1.30.       
“NDA” means a New Drug Application, Biologics License Application or equivalent submission filed with the FDA
in connection with seeking Marketing Approval of a Licensed Product, or an equivalent application filed with any equivalent regulatory
agency or governmental authority in any jurisdiction other than the United States.

 

1.31.       
“Net Sales” means the gross amount invoiced on sales of Licensed Product in the Territory by XBIO or its Affiliates,
less the following deductions with respect to the sale of such Licensed Product:

 

(i)             customary
trade, cash and quantity discounts and other customary discounts actually given to customers in the ordinary course of business;

 

(ii)            rebates,
credits and allowances given by reason of rejections, returns, damaged or defective product or recalls;

 

(iii)           government-mandated
rebates and any other compulsory payments, credits, adjustments and rebates actually paid or deducted;

 

 

 

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(iv)           price
adjustments, allowances, credits, chargeback payments, discounts, rebates, fees, reimbursements or similar payments granted to managed
care organizations, group purchasing organizations or other buying groups, pharmacy benefit management companies, health maintenance
organizations and any other providers of health insurance coverage, health care organizations or other health care institutions (including
hospitals), health care administrators or patient assistance or other similar programs, or to federal, state/provincial, local and other
governments, including their agencies, or to wholesalers, distributors or other trade customers;

 

(v)            reasonable
and customary freight, shipping, insurance and other transportation expenses, if actually borne by XBIO or its Affiliates without reimbursement
from any Third Party;

 

(vi)           sales,
value-added, excise taxes, tariffs and duties, and other taxes and government charges directly related to the sale, delivery or use of
Licensed Product (but not including taxes assessed directly against the income derived from such sale) net of any credits or allowances
received by XBIO or its Affiliates with respect to such taxes or charges;

 

(vii)          amounts
previously included in Net Sales of Licensed Product that are written off as uncollectible after reasonable collection efforts, in accordance
with standard practices of the applicable party; and

 

(viii)         any
item, substantially similar in character or substance to any of the foregoing, calculated in accordance with GAAP consistently applied
and customary in the pharmaceutical industry to be deducted in the definition of net sales in a license agreement of this type.

 

Net Sales will be determined from books and records
maintained in accordance with GAAP, consistently applied throughout the organization and across all products of the entity whose sales
of Licensed Product are giving rise to Net Sales.

 

Disposition of Licensed Product for, or use of the
Licensed Product in, clinical trials or other scientific testing, as free samples, or under compassionate use, patient assistance, or
test marketing programs or other similar programs or studies where a Licensed Product is supplied without charge shall not result in any
Net Sales, however if XBIO or its Affiliates charges for such Licensed Product, the amount billed will be included in the calculation
of Net Sales.

 

In the event a Licensed Product is sold in the form
of a Combination Product, then the Net Sales for any such Combination Product shall be determined by multiplying the Net Sales of the
Combination Product during the applicable royalty Reporting Period, by the fraction, A/(A+B), where A is the weighted (by sales volume)
average sale price of the Licensed Product when sold separately in finished form in the country in which the Combination Product is sold,
and B is the weighted (by sales volume) average sale price of the other active pharmaceutical ingredients included in the Combination
Product when sold separately in finished form in the country in which the Combination Product is sold, in each case during the applicable
royalty Reporting Period or, if sales of both the Licensed Product and the other active pharmaceutical ingredients did not occur in such
period, then in the most recent royalty Reporting Period during the preceding twelve (12) months in which sales of both occurred, if any.
In the event that such average sale price cannot be determined for both the Licensed Product and all other active pharmaceutical ingredients
included in the Combination Product, then the Parties will in good faith discuss and agree on a pro-rata allocation of the Net Sales that
reflects the Licensed Product’s contribution to the Combination Product on an equitable basis. XBIO covenants that neither it nor
any of its Affiliates will intentionally manipulate the fraction A/(A+B) to avoid or reduce royalty payments or obligations that would
otherwise be due for sales of Licensed Product in combination form or otherwise.

 

1.32.       
“Regulatory Authority” means any federal, national, multinational, state, county, city, provincial, or local
regulatory agency, department, bureau or other governmental entity with authority over the marketing, commercialization, manufacture or
sale of a pharmaceutical product in the Territory, including the FDA in the United States and the EMA in the EU.

  

 

 

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1.33.       
“Reporting Period” shall mean each three month period ending March 31, June 30, September 30 and December 31.

 

1.34.       
“Royalty Term” has the meaning set forth in Section 3.5.

 

1.35.       
“Sublicensee” means a Third Party to whom XBIO or any of its Affiliates or Sublicensee(s) grants an express
sublicense under the Licensed Patents, CLS Improvements and/or Licensed Know-how to develop, manufacture, commercialize or use Licensed
Product in the Field in the Territory; provided that the term “Sublicensee” excludes any Third Party who acts solely as a
promoter, agent, marketer and/or distributor for and on behalf of XBIO or any of its Affiliates or Sublicensees for the distribution and/or
marketing of Licensed Product.

 

1.36.       
“Sublicense Income” means consideration received by XBIO or any of its Affiliates from a Sublicensee in connection
with or otherwise attributable to a grant to such Sublicensee of an express sublicense under the Licensed Patents, CLS Improvements and/or
Licensed Know-how to develop, manufacture, commercialize or use Licensed Product in the Field in the Territory, including without limitation,
(a) royalties received from a Sublicensee; (b) lump sum license fees; (c) proceeds of sale of the Licensed Technology, CLS Improvements
and/or Licensed Know-how; (d) signing fees; and (e) milestone payments relating to the Milestones or other milestones

 

1.37.       
“Tax” or “Taxes” means any present or future taxes, levies, imposts, duties, charges, assessments
or fees of any nature (including interest, penalties and additions thereto) that are imposed by a government authority, but not including
a Party’s income taxes.

 

1.38.       
“Term” means the term of this Agreement determined in accordance with Section 10.1.

 

1.39.       
“Territory” means worldwide.

 

1.40.       
“Third Party” means any person other than a Party or any of its Affiliates or their respective employees.

 

1.41.       
“Third Party Payments” means all royalties, upfront fees, milestones and other payments paid by XBIO or its
Affiliates to Third Parties under licenses to intellectual property or to acquire intellectual property that is necessary for the development,
manufacture, import, sale or use of Licensed Product in the Field in the Territory. For purposes of this definition, the term “necessary”
shall mean that, in the reasonable determination of XBIO or its Affiliates, the intellectual property of the Third Party were reasonably
necessary or useful to the manufacture, use or sale of Licensed Product in the Territory.

 

1.42.       
“United States” or “U.S.” means the United States of America and its territories and possessions.

 

1.43.       
“Valid Claim” means (i) a claim of an issued and unexpired patent that has not been revoked or held unenforceable
or invalid by a decision of a court or other governmental agency of competent jurisdiction from which no appeal can be taken or with respect
to which an appeal is not taken within the time allowed for appeal, and that has not been disclaimed or admitted to be invalid or unenforceable
through reissue, disclaimer or otherwise or been dedicated to the public, and (ii) a claim in a pending patent application that is being
prosecuted and that has not been abandoned, disclaimed, allowed to lapse or finally determined to be unallowable by the applicable governmental
authority in a decision from which no appeal can be taken or from which no appeal is taken within the time allowed for appeal.

 

1.44.       
“Vector” means any particle used as a vehicle to carry any genetic material.

 

 

 

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ARTICLE
II

LICENSE GRANT

 

2.1.          License
Grant. Effective as of the Effective Date hereof, and subject to the terms and conditions of this Agreement, CLS grants to XBIO:
(a) an exclusive, royalty-bearing, fully transferrable (in accordance with Section 12.5) license under the Licensed Technology (the “Patent
License”), and (b) an exclusive, royalty-bearing, fully transferable (in accordance with Section 12.5) license under the Licensed
Know-how (the “Know-how License”), in each case with the right to grant sublicenses, to the extent provided in Section
2.2, to research, develop, make, have made, use, import, export, market, offer for sale, sell and have sold, Licensed Product in the
Territory within the Field.

 

2.2.          Sublicenses.

 

(a)            Sublicensing.
XBIO shall have the right to grant subsequent sublicenses under the Patent License and Know-how License so long as such subsequent sublicenses
are given as part of an arms-length transaction, absent which such subsequent sublicense shall require the prior written consent of CLS,
not to be unreasonably withheld. Any subsequent sublicenses shall be in writing and include substantially the same non-financial terms
and be in substantially the same form as this Agreement. In the event of termination of the Patent License (except for the passage of
time), any existing agreements that contain a subsequent sublicense of, or other grant of right with respect to, Licensed Technology
shall terminate to the extent of such subsequent sublicense or other grant of right; provided, however, that, for each Sublicensee, upon
termination of the subsequent sublicense agreement with such Sublicensee, if such Sublicensee is not then in material breach of such
sublicense agreement such that XBIO would not have the right to terminate such subsequent sublicense, CLS shall be obligated, at the
request of such Sublicensee, to preserve the effectiveness, scope and validity of such subsequent sublicense or other grant of right
for up to ninety (90) days while CLS enters into a new agreement with such Sublicensee on substantially the same terms as those contained
in such sublicense agreement, and provided further that such terms shall be amended, if necessary, to the extent required to ensure that
such sublicense agreement does not impose any obligations or liabilities on CLS which are not included in this Agreement or adversely
affect the consideration due to CLS hereunder. In the event that CLS and such Sublicensee are unable to enter into a new sublicense agreement
within the ninety (90) day period mentioned above following a good faith negotiation by both CLS and Sublicensee, then XBIO’s agreement
with such Sublicensee shall terminate upon expiration of such ninety (90) day period.

 

(b)           Performance
by Sublicensees. XBIO shall be fully responsible for performance of each Sublicensee of its obligations under this Agreement. Each
sublicense granted by XBIO pursuant to this Section 2.2 will contain terms and conditions not inconsistent with those sections of this
Agreement applicable to Sublicensees. Each sublicense agreement will contain the following provisions: (i) a requirement that any Sublicensee
selling Licensed Product submit applicable sales or other reports to XBIO to the extent necessary or relevant to the reports required
to be made or records required to be maintained under this Agreement; (ii) an audit requirement as to those Sublicensees selling Licensed
Product consistent with that set forth in Section 4.3; and (iii) a requirement that such Sublicensee comply with the confidentiality
provisions and restrictions on use of Confidential Information consistent with Article VII with respect to Confidential Information of
CLS. If XBIO becomes aware of a material breach by a Sublicensee of the rights granted to XBIO under Section 2.1, XBIO will promptly
notify CLS of the particulars of the same, and will use Commercially Reasonable Efforts to enforce the terms of such sublicense.

 

2.3.          Responsibility;
Decision-making. During the Term, XBIO will, including through its Affiliates and Sublicensees and their respective contractors,
have sole responsibility for and sole decision-making authority with respect to, the research, development, manufacture, marketing, sale
and use of Licensed Product in the Field in the Territory and will be responsible for all of the costs and expenses associated with such
activities during the Term. XBIO shall keep CLS reasonably informed as to XBIO’s progress in these efforts and XBIO will use good
faith efforts to confer with CLS, on at least a quarterly basis, with respect to the development of the Licensed Product. Without limiting
the foregoing, XBIO will use good faith efforts to confer with CLS on significant product development decisions (such as design and conduct
of clinical trials, entering into research and development collaborations, and entering into license or sublicense agreements) in advance
of making such decisions. During the Term, CLS shall be entitled to one seat on the Scientific Advisory Board of XBIO and may fill that
seat with a nominee of its choosing that is reasonably acceptable to XBIO.

 

 

 

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2.4.         Diligence.
XBIO will, including through its Affiliates and Sublicensees, use Commercially Reasonable Efforts during the Term to develop and obtain
Marketing Approval for a Licensed Product in the United States and in each Major EU Market, and to commercialize such Licensed Product
in the United States and each Major EU Market if the relevant Marketing Approval is obtained. In addition, XBIO will, including through
its Affiliates and Sublicensees, use Commercially Reasonable Efforts to secure any data and market exclusivity for a Licensed Product
for which Marketing Approval is obtained, to the extent available from the applicable Regulatory Authorities. XBIO agrees to register
this Agreement with any foreign governmental agency, which requires such registration and where the failure to so register would have
a material adverse impact on commercialization of Licensed Product in a Major EU Market, and XBIO shall pay all costs and legal fees
in connection therewith. XBIO shall not be relieved of any of its obligations under this Agreement by any failure to register this Agreement
in any country, and, specifically, shall not be relieved of its obligation to make any payment due to CLS where such payment is blocked
due to any failure to register this Agreement. CLS shall cooperate with XBIO in the preparation of each submission for Marketing Approvals
for the Licensed Product(s) in the Territory and in obtaining and maintaining Marketing Approvals within the Territory.

 

(a)            Ownership
of Clinical Trial Data. All data (including all pre-clinical, clinical and/or marketing data) developed by XBIO during the Term and
relating to a Licensed Product and the Field shall be and remain the property of XBIO; provided, however, that XBIO hereby grants to
CLS and its Affiliates a perpetual non-exclusive license and right of reference to, and a right to copy, access and otherwise use, all
such data solely to support CLS’ and its Affiliates’ seeking marketing approval of one or more products outside the Field.
All data (including all pre-clinical, clinical and/or marketing data) developed by CLS during the Term relating to a Compound outside
the Field shall be and remain the property of CLS; provided, however, that CLS hereby grants to XBIO, its Affiliates and Sublicensees
a perpetual non-exclusive license and right of reference to, and a right to copy, access and otherwise use, all such data solely to support
XBIO’s, its Affiliates’ and Sublicensees’ seeking Marketing Approval of one or more products within the Field.

 

(b)           Clinical
Studies. XBIO shall have the exclusive right to conduct any clinical trials or studies, prior to or after relevant Marketing Approval,
with respect to the Licensed Product in the Territory and in the Field.

 

ARTICLE
III

FINANCIAL PROVISIONS

 

3.1.           Consideration
Given by XBIO. Subject to the terms and conditions of that certain Subscription Agreement to be entered into by the Parties concurrently
herewith, XBIO will grant to CLS on the date hereof 500,000 (five hundred thousand) shares of Common Stock of XBIO (the “Shares”)
together with Five Hundred Thousand and 00/100 Dollars ($500,000.00) (the “Payment”). The amount of the Payment shall
be offset by the amount of Sixty Thousand and 00/100 Dollars ($60,000.00) which was previously paid by XBIO to CLS pursuant to that certain
Letter Agreement dated February 28, 2022 (the “Letter Agreement”) such that on the Effective Date XBIO shall pay to
CLS the amount of Four Hundred Forty and 00/100 Dollars ($440,000.00). CLS hereby acknowledges previous receipt of the Sixty Thousand
and 00/100 Dollars ($60,000.00) made by XBIO to CLS pursuant to the Letter Agreement.

 

3.2.           Milestone
Payments. As additional consideration for the licenses granted to XBIO under Section 2.1 above, XBIO will pay non-refundable and
non-creditable milestone payments to CLS in the amounts and upon the occurrence of the events set forth below for each unique Licensed
Product (each a “Milestone”), irrespective of whether such Milestone was achieved by XBIO or its Affiliate. Each such
payment shall be made within forty-five (45) Calendar Days after a Milestone has occurred. Each milestone payment will be payable only
one time for each unique Licensed Product and shall not be subject to any royalty provisions set forth in Section 3.3(a). Notwithstanding
the terms of this Section 3.2, if XBIO enters into a sublicense with a Sublicensee, then the sole payments due by XBIO to CLS with respect
to any Milestone shall be pursuant to Section 3.4 and XBIO shall be under no obligation to make any further milestone payments pursuant
to this Section 3.2.

 

	Milestone	Milestone Payment
	[***]	[***]
	[***]	[***]
	[***]	[***]

 

 

 

    	 	9	 

     

    

 

3.3.           Royalty.

 

(a)           As
additional consideration for the licenses granted to XBIO under Section 2.1 above, XBIO will pay to CLS an amount equal to Net Sales
for a Licensed Product within the Territory multiplied by the Applicable Percentage, as set forth below by each Licensed Product.

D20 Products:

 

	Annual Net Sales of Licensed Products	Applicable Percentage
	Up to and including [***] per calendar year	[***]
	Over [***] per calendar year	[***]
	Over [***] per calendar year	[***]

 

(b)           The
Parties agree that the applicable royalty upon Net Sales payable under Section 3.3(a) above, shall apply to Net Sales during the Royalty
Term (as defined below). At the end of the applicable Royalty Term no royalties shall be paid under the Patent License.

 

(c)           To
the extent that that a Licensed Product is sublicensed to a Sublicensee, no further royalties will be due under this Section 3.3 and
all payments due to CLS shall be made pursuant to Section 3.4.

 

3.4.           Sublicense
Income. As additional consideration for the licenses granted to XBIO under Section 2.1 above, XBIO will pay to CLS an amount equal
to [***] of Sublicense Income. Notwithstanding the immediately preceding sentence, in the event XBIO grants an exclusive sublicense for
the entire right held by XBIO under the Licensed Patents and Licensed Technologies, such that the sublicensee could prohibit XBIO from
practicing the Licensed Patents and Licensed Technologies, then XBIO will pay to CLS an amount equal to [***] of Sublicense Income.

 

3.5.           Patent
License Royalty Term. Royalties payable for the Patent License under Section 3.3 shall be payable on a country-by-country and Licensed
Product-by-Licensed Product basis during the period commencing on the First Commercial Sale of such Licensed Product in the Field in
such country, and ending on a country-by-country basis upon (i) the expiration of the last Valid Claim Covering such Licensed Product
in such country, or (ii) five (5) years from the date of First Commercial Sale in such country, whichever is later (the “Royalty
Term”).

 

3.6.           Third
Party Payments. XBIO will have the right to deduct from the royalty otherwise payable under Section 3.3, fifty percent (50%) of Third
Party Payments, provided that in no event will the royalty payment be reduced as a result of application of this paragraph, to less than
fifty percent (50%) of the amount otherwise payable under Section 3.3. Third Party Payments available for offset under this Section 3.6
and not used as a credit against the royalty payable hereunder in a given calendar quarter may be carried over to future calendar quarters
until fully utilized.

 

3.7.           Payments;
Reports. Following the First Commercial Sale in any country in the Territory, XBIO will pay royalties due on Net Sales in a calendar
quarter within ninety (90) days of the end of such calendar quarter and shall be accompanied by a report as set forth in Article IV below.

 

3.8.           Taxes.
All payments shall be made by XBIO under this Agreement without deduction or withholding of taxes owed by CLS except to the extent that
any such deduction or withholding is required by applicable law to be made on account of Taxes, as determined by XBIO in good faith.
To the extent that amounts are so withheld, such withheld amounts shall be treated for all purposes of this Agreement as having been
delivered and paid to CLS. The Parties will cooperate with respect to all documentation required by any relevant government taxing authority
or reasonably requested by either Party to secure a reduction in the rate of applicable withholding Taxes. XBIO shall not be liable for
any excess Taxes withheld, and in the event of an overwithholding, CLS’s sole recourse shall be to apply for a refund from the
appropriate taxing authority.

 

 

 

    	 	10	 

     

    

 

3.9.           United
States Dollars. All dollar ($) amounts specified in this Agreement are United States dollar amounts.

 

3.10.         Currency
Conversion. All payments to be made hereunder will be made in U.S. Dollars, to a bank account designated by CLS. In the case of sales
outside the United States, payments received by XBIO, its Affiliates or Sublicensees will be expressed in the U.S. Dollar equivalent
calculated on a quarterly basis in the currency of the country of sale and converted to their U.S. Dollar equivalent using the average
of the rate of exchange as quoted in the Wall Street Journal (WSJ) for the relevant quarter. If the WSJ does not publish such rate, a
comparable rate publication shall be agreed from time to time by the Parties, and with respect to any country for which such rate is
not published by the WSJ or a comparable publication, the Parties will use the prevailing rate for bank cable transfers for such date,
as quoted by the leading United States banks in New York City dealing in the foreign exchange market.

 

3.11.         Late
Payments. The payments due under this Agreement shall, if overdue, bear interest at a rate per annum equal to two percent (2%) above
the prime rate in effect on the due date as reported by The Wall Street Journal, such interest rate being compounded on the last day
of each Reporting Period, not to exceed the maximum permitted by law. Any such overdue payments when made shall be accompanied by all
interest so accrued. Said interest and the payment and acceptance thereof shall not preclude CLS from exercising any other rights it
may have as a consequence of the lateness of any payment. This Section 3.11 shall not apply to any payments that are disputed in good
faith by either Party until thirty (30) Calendar Days after the resolution of any such dispute.

 

ARTICLE
IV 

MAINTENANCE OF BOOKS AND RECORDS

 

4.1.          Reporting.

 

(a)            XBIO
shall report to CLS the date on which it achieves a Milestone within forty (40) Calendar Days of each such occurrence.

 

(b)           XBIO
shall report to CLS the date on which it achieves the First Commercial Sale in each country of the Territory within forty (40) Calendar
Days of each such occurrence. For each country in the Territory, following the First Commercial Sale of Licensed Product, XBIO shall
deliver reports to CLS within seventy five (75) Calendar Days after the end of each Reporting Period. Each report under this Section
4.1(b) shall be certified as correct by an officer of XBIO and shall contain at least the following information as may be pertinent to
a royalty accounting hereunder for the immediately preceding Reporting Period:

 

(i)              the
total number of units of Licensed Products sold by XBIO, its Affiliates and Sublicensees in each country;

 

(ii)            
the amounts billed, invoiced and received by XBIO, its Affiliates and Sublicensees for each Licensed Product, in each country,
and total billings or payments due or made for all Licensed Products;

 

(iii)            calculation
of Net Sales for the applicable Reporting Period in each country, including an itemized listing of permitted offsets and deductions;
and

 

(iv)            total
royalties payable on Net Sales in U.S. dollars, together with the exchange rates used for conversion.

 

4.2.           If
no amounts are due to CLS for any Reporting Period, the report shall so state.

 

 

 

    	 	11	 

     

    

 

4.3.           XBIO
shall maintain, and shall cause each of its Affiliates and Sublicensees to maintain, complete and accurate records relating to the rights
and obligations under this Agreement and any royalties payable to CLS in relation to this Agreement, which records shall contain sufficient
information to permit CLS and its representatives to confirm the accuracy of such royalties and reports delivered to CLS and compliance
in all other respects with this Agreement. XBIO shall maintain, and shall cause each of its Affiliates and Sublicensees to maintain,
accurate records regarding Licensed Products, including Net Sales thereof, and shall retain such records over a period of at least six
(6) years. CLS will have the right, once annually at its own expense, to have a nationally recognized, independent, certified public
accounting firm, which shall be mutually agreed upon by the Parties, review any such records of XBIO and its Affiliates and Sublicensees
(the “Audited Party”) in the location(s) where such records are maintained by the Audited Party upon reasonable written
notice (which shall be no less than fifteen (15) Business Days’ prior written notice) and during regular business hours and under
obligations of strict confidence, for the sole purpose of verifying the basis and accuracy of payments made under Section 3.2. If any
examination conducted by CLS or its representatives pursuant to the provisions of this Section show an underreporting or underpayment
of five percent (5%) or more in any payment due to CLS hereunder in a Reporting Period, the Audited Party shall bear the full cost of
such audit and shall remit any amounts due to CLS (including interest due in accordance with Section 3.10) within thirty (30) days of
receiving notice thereof from CLS.

 

ARTICLE
V 

INTELLECTUAL PROPERTY OWNERSHIP, PROTECTION

AND RELATED MATTERS

 

5.1.           Prosecution
and Maintenance of Licensed Patents. XBIO shall have responsibility for filing, prosecuting and maintaining all Licensed Patents
and shall be responsible for all related expenses and costs. XBIO shall also be responsible, at its cost, for defending all such
Licensed Patents, including the defense of any oppositions or reexaminations or similar proceedings, and shall use Commercially
Reasonable Efforts in the conduct of such activities. XBIO will provide to CLS copies of all prosecution filings and material
submissions related to such Licensed Patents and will use reasonable efforts to provide CLS with a draft of each such filing or
material submission in advance of such submission and will consider in good faith any comments that CLS may timely provide. If XBIO
decides not to file, prosecute or maintain patent applications or patents within the Licensed Patents that Cover the Licensed
Product and/or its use, CLS shall have the right, but not the obligation, to file, prosecute and maintain such invention at its cost
and expense.

 

5.2.           Ownership
of Improvements. Should XBIO its Affiliates or Sublicensees develop any Improvements to the Licensed Patents or Licensed Know-how,
XBIO shall be the sole and exclusive owner of such Improvements (the “XBIO Improvements”). To the extent XBIO decides at
its sole discretion to file for patent protection of an XBIO Improvement, XBIO shall have the responsibility for filing, prosecuting
and maintaining all such patent applications and any patents that issue therefrom (the “XBIO Patents”) at its sole expense
and cost. XBIO shall also be responsible, at its cost, for defending all such XBIO Patents, including the defense of any oppositions
or reexaminations or similar proceedings.

 

5.3.           Third
Party Infringement.

 

(a)            Notices.
Each Party will promptly report in writing to the other Party any (i) known or suspected infringement of any Licensed Patents, or (ii)
unauthorized use or misappropriation of any Licensed Know-how by a Third Party, of which such Party becomes aware, in each case only
to the extent relevant to Licensed Product or the development, manufacture, commercialization or use of Licensed Product in the Field
in the Territory, and will provide the other Party with all available information evidencing such infringement, or unauthorized use or
misappropriation.

 

(b)           XBIO
First Right to Enforce Certain Licensed Patents. XBIO or, as applicable its Affiliate or Sublicensee will have the first right, but
not the obligation, to initiate a suit or take other appropriate action that it believes is reasonably required to prevent or abate actual
or threatened infringement or misappropriation of, or otherwise protect or enforce, the Licensed Patents against a Third Party who is
researching, developing, making, using or selling a product in the Field in a country within the Territory. CLS and its Affiliates will
join such suit if the relevant court would lack jurisdiction if CLS or such Affiliate were absent from such suit and CLS and such Affiliates
will execute such legal papers and cooperate in the prosecution of such suit as may be reasonably requested by XBIO; provided, that XBIO
will promptly reimburse all out-of-pocket expenses (including reasonable attorneys’ fees and expenses) incurred by CLS and such
Affiliates in connection with such requested cooperation.

 

 

 

    	 	12	 

     

    

 

(c)            CLS
Rights if XBIO Elects Not to Proceed. If XBIO does not initiate a suit or take other appropriate action pursuant to Section 5.3(b)
within one hundred twenty (120) days after having received or sending notice written notice of such infringement or misappropriation
or, in the case of receipt of a notice letter sent by a Third Party pursuant to the requirements of 21 U.S.C. § 355(b)(2)(A)(iv)
or 355(j)(2)(A)(vii)(IV) or under any analogous provisions, within ten (10) days before any statutory or regulatory deadline for filing
such suit, then CLS will have the immediate right to initiate a suit or take other appropriate action that it believes is reasonably
required to prevent or abate actual or threatened infringement or misappropriation of, or otherwise to protect or enforce the relevant
Licensed Patent. XBIO and, as applicable its Affiliates will join such suit if the relevant court would lack jurisdiction if XBIO or
such Affiliates were absent from such suit and XBIO and such Affiliates will execute such legal papers and cooperate in the prosecution
of such suit as may be reasonably requested by CLS; provided, that CLS will promptly reimburse all out-of-pocket expenses (including
reasonable attorneys’ fees and expenses) incurred by XBIO and such Affiliates in connection with such requested cooperation.

 

(d)            Enforcement
Against Other Infringement of Licensed Patents. Except as provided in Section 5.3(b), as between the Parties CLS will have the sole
right, but not the obligation, to initiate a suit or take other appropriate action that it believes is reasonably required to prevent
or abate actual or threatened infringement or misappropriation of, or otherwise to protect or enforce, the Licensed Patents outside of
the Field during the Term.

 

(e)            Right
to Enforce Licensed Know-how. Responsibility for preventing or abating actual or threatened infringement or misappropriation of,
or otherwise protecting or enforcing Licensed Know-how will be determined in the same manner as the right to enforce Licensed Patents
under paragraphs (b) and (c). XBIO shall keep CLS informed of the status of all enforcement activities, and shall consider in good faith
all CLS’s comments regarding any aspect of such enforcement.

 

(f)            Conduct
of Certain Actions; Costs. XBIO will have the sole and exclusive right to select counsel for any suit initiated by it pursuant to
this Section. XBIO will assume and pay all of its own out-of-pocket costs incurred in connection with any litigation or proceedings initiated
by it pursuant to this Section, including the fees and expenses of the legal counsel selected by it.

 

(g)             Recoveries.

 

(i)              If
XBIO initiates suit as permitted in accordance with Sections 5.3(b) with respect to Licensed Patents and/or Licensed Know-how, any damages,
settlements, accounts of profits, or other financial compensation actually paid to XBIO by a Third Party based upon such suit, after
deducting and reimbursing XBIO and CLS’s actual out of pocket expenses (including reasonable attorneys’ fees and expenses)
incurred in pursuing such suit (such net amount, the “Recovery”), will be treated as Net Sales, and will be subject
to the royalty payment obligations under Section 3.2, with XBIO retaining the balance after such payment.

 

(ii)            
If CLS initiates suit pursuant to Section 5.2(c) with respect to Licensed Patents or Licensed Know-how, any damages, settlements,
accounts of profits, or other financial compensation actually paid to CLS by a Third Party based upon such suit, after deducting and reimbursing
CLS’s and XBIO’s actual out of pocket expenses (including reasonable attorneys’ fees and expenses) incurred in pursuing
such suit, will be shared equally by the Parties.

 

5.4.           Patent Invalidity Claim. Each of the Parties will promptly notify the other Party in the event of any legal or administrative
action by any Third Party against a Licensed Patent, or any certification filed pursuant to 21 U.S.C. § 355(b)(2)(A)(iv) or 355(G)(2)(A)(vii)(IV)
or any notice under any analogous provisions, with respect to such Licensed Patents, of which it becomes aware, including any nullity,
revocation, reexamination or compulsory license proceeding. Responsibility for defending against any such action shall be determined in
the same manner as enforcement of the relevant Licensed Patents pursuant to Section 5.2.

 

 

 

    	 	13	 

     

    

 

5.5.          Patent
Marking. XBIO agrees to comply with the patent marking statutes in each country in which the Licensed Product is sold by XBIO or
its Affiliates or Sublicensees.

 

5.6.          Title
to and Ownership of Marketing Approvals. XBIO or its designee shall be the owner of all Marketing Approvals for the Licensed Product(s)
in the Territory and in the Field; provided, however, that XBIO hereby grants to CLS and its Affiliates a perpetual non-exclusive license
and right of reference to, and a right to copy, access and otherwise use, all such Marketing Approvals solely to support CLS’ and
its Affiliates’ seeking marketing approval of one or more products outside the Field. CLS agrees to have transferred any Licensed
Product Marketing Approvals in the Field that are owned by CLS or its Affiliates to XBIO or its designees.

 

5.7.          Assignment
of Interest in Joint Patent Application. CLS and its Affiliates and XBIO propose to enter into a collaboration agreement with Belgian
Volition SRL (the “Collaboration Agreement”), and on the Transfer Date (as such term is defined in the Collaboration
Agreement), CLS and its Affiliates shall promptly assign to XBIO, all of CLS’s and its Affiliates’ right, title and interest
in and to United Kingdom Patent Application Number 2202842.7, filed March 1, 2022, and entitled “Chimeric Antigen Receptor T-Cell
Treatments Targeted to Chromatin Fragments and Extracellular Traps” (the “Joint Patent”), pursuant to a form
of assignment reasonably acceptable to XBIO.

 

ARTICLE VI

ROFR GRANT

 

6.1           Right
of First Refusal. If CLS or any of its Affiliates desire to sell, license, research or develop any product incorporating or utilizing
D14, or enter into any other arrangement with respect to D14, then CLS must give XBIO written notice of such desire, including the proposed
terms thereof and copies of any offer letters or term sheets relating thereto, and XBIO will have a right of first refusal (the “ROFR”)
to enter into an agreement with CLS or its Affiliate on terms no less favorable in any material respect than those on which CLS or its
Affiliate was willing to enter into an agreement with the Third Party for the Territory. If XBIO desires to enter into such an agreement
with CLS or its Affiliate, XBIO shall provide CLS written notice of its desire to exercise its ROFR (the “ROFR Notice”)
within thirty (30) days following XBIO’s receipt of such written notice from CLS. Within thirty (30) days after the date of the
ROFR Notice, the Parties will begin to negotiate in good faith the final terms of a commercially reasonable agreement on the proposed
terms. If the Parties cannot reach agreement during the ninety (90) days following the date of the ROFR Notice, which may be extended
on a month to month basis following the written consent of both Parties, then CLS shall be free for a period of one hundred eighty (180)
days from end of such negotiation period to enter into an agreement with a Third Party with respect to D14 on financial terms, taken as
a whole, that are no less favorable to CLS than those that were presented to XBIO in CLS’s initial notice and those last proposed
by XBIO to CLS in writing during the Parties’ good faith negotiation. If at the end of such one hundred eighty (180) day period,
CLS has not entered into such an agreement with a Third Party or if the agreement with the Third Party is terminated, then the right of
CLS or is Affiliates in the future to enter into a licensing or other agreement with a Third Party with respect to D14 shall again subject
to the right of first refusal set forth in this Agreement.

 

 

 

    	 	14	 

     

    

 

ARTICLE
VII

CONFIDENTIALITY

 

7.1.          Confidential
Information. During the Term and for a period of seven (7) years after any termination or expiration of this Agreement, the Receiving
Party agrees (i) to keep in confidence and not to disclose the Disclosing Party’s Confidential Information to any Third Party without
the prior written consent of the Disclosing Party except for disclosures expressly permitted pursuant to this Section 7.1, and (ii) not
to use the Disclosing Party’s Confidential Information for any purpose, except pursuant to, and in order to carry out, the terms
and objectives of this Agreement (which includes activities contemplated by the licenses granted in Section 2.1) or as otherwise specifically
permitted under this Agreement. The terms of this Agreement will be considered Confidential Information of both Parties, subject to permitted
disclosures as set forth in this Article VII. In addition, if the Receiving Party is required to disclose Confidential Information of
the Disclosing Party by regulation, law or legal process, including by the rules or regulations of the United States Securities and Exchange
Commission (“SEC”), United Kingdom Financial Services Authority (“FSA”) or similar regulatory agency in a country
other than the United States, United Kingdom or of any stock exchange, the Receiving Party shall provide prior written notice and a copy
of such intended disclosure to the Disclosing Party and agrees to consult with the Disclosing Party with respect to the preparation and
submission of a confidential treatment request for this Agreement and will disclose only such Confidential Information of the Disclosing
Party as is required to be disclosed by the rules or regulations of the United States Securities and Exchange Commission (“SEC”),
United Kingdom Financial Services Authority (“FSA”) or similar regulatory agency in a country other than the United States,
United Kingdom or of any stock exchange and will cooperate in the disclosing Party’s efforts to obtain a protective order or to
limit the scope of the required disclosures.

 

7.2.          Permitted
Disclosures. The Receiving Party agrees that it and its Affiliates will provide or permit access to the Disclosing Party’s
Confidential Information only to the Receiving Party’s employees, consultants, advisors and bona fide potential acquirors, and
to service providers, investigators, Third Party contractors, potential and existing Sublicensees and distributors, in each case who,
in such Party’s reasonable judgment, have a need to know such Confidential Information to assist the Receiving Party with the activities
contemplated by this Agreement or in connection with a potential business relationship or investment that would encompass Licensed Product,
and who are subject to obligations of confidentiality and non-use with respect to such Confidential Information similar to the obligations
of confidentiality and non-use of the Receiving Party under Section 7.1 CLS and XBIO shall each remain responsible for any failure by
its Affiliates, and its and its Affiliates’ respective employees, consultants, advisors and permitted contractors, Sublicensees
and distributors, to treat such Confidential Information as required under Section 7.1 (as if such Affiliates, employees, consultants,
advisors, contractors, sublicensees and distributors were Parties directly bound to the requirements of Section 7.1). XBIO and CLS may
also disclose Confidential Information of the other Party to Regulatory Authorities and other governmental authorities, but solely in
connection with the activities contemplated by this Agreement.

 

7.3.          Publicity.
Neither Party will issue a press release or public announcement relating to the terms of this Agreement without the prior written approval
of the other Party, which approval shall not be unreasonably withheld or delayed, except that a Party may issue such a press release
or public announcement if required by applicable law, including by the rules or regulations of the United States Securities and Exchange
Commission (SEC), United Kingdom Financial Services Agency or similar regulatory agency in a country other than the United States or
of any stock exchange; provided that such Party complies with the notice and review provisions set forth in this Section.

 

7.4.          Publications.
XBIO and its Affiliates and Sublicensees shall have the right to publish the results of development, manufacture, commercialization and
use of Licensed Product in the Field during the Term, provided that it provides CLS with a copy of the publication at least sixty (60)
days prior to the intended publication date and agrees to delay publication up to an additional thirty (30) days if requested by CLS
in order to protect confidential information and/or intellectual property rights.

 

 

 

    	 	15	 

     

    

 

7.5.          Return
of Confidential Information. Upon termination of this Agreement prior to the end of the Term, the Receiving Party shall, at the request
of, and as directed by, the Disclosing Party, return or destroy Confidential Information of the Disclosing Party in the Receiving Party’s
possession, and shall destroy any reports or notes in Receiving Party’s possession to the extent containing the Disclosing Party’s
Confidential Information, and any electronic copies of any of the foregoing, provided that (i) the Receiving Party may retain one copy
of Confidential Information of the Disclosing Party for archival purposes, and (ii) neither Party shall be required to return or destroy
copies of the other Party’s Confidential Information stored on automatically created system back-up media.

 

ARTICLE
VIII 

REPRESENTATIONS AND WARRANTIES; CERTAIN COVENANTS

 

8.1.          Mutual Representations. Each Party hereby represents and warrants to the other Party, as of the Effective Date, as follows:

 

(a)            It
is duly organized and validly existing under the laws of its jurisdiction of incorporation and has the corporate power and authority
to execute and deliver this Agreement and to perform its obligations hereunder.

 

(b)           The
execution, delivery and performance of this Agreement by such Party has been duly and validly authorized and approved by proper corporate
action on the part of such Party. Such Party has taken all other action required by applicable law, its certificate of incorporation
or by-laws or any agreement to which it is a party or by which it or its assets are bound, to authorize such execution, delivery and
performance. Assuming due authorization, execution and delivery on the part of the other Party, this Agreement constitutes a legal, valid
and binding obligation of such Party.

 

(c)            The
execution and delivery of this Agreement, and the performance as contemplated hereunder, by such Party will not violate any applicable
law.

 

(d)           Neither
the execution and delivery of this Agreement nor the performance hereof by such Party requires such Party to obtain any permit, authorization
or consent from any governmental authority (except for any Marketing Approvals, pricing or reimbursement approvals, manufacturing-related
approvals or similar approvals necessary for development, manufacture or commercialization of Licensed Products), or from any other person,
and such execution, delivery and performance by such Party, including the granting of the licenses granted under this Agreement, will
not result in the breach of or give rise to any conflict, termination of, rescission, renegotiation or acceleration under or trigger
any other rights under any agreement or contract to which such Party may be a party existing as of the Effective Date.

 

(e)            Neither
Party nor any of its Affiliates has been debarred or is subject to debarment, and CLS has not used in any capacity in connection with
the development or manufacture of Licensed Product prior to the Effective Date, any person or entity who has been debarred pursuant to
Section 306 of the United States Federal Food, Drug, and Cosmetic Act, or who is the subject of a conviction described in such section.

 

8.2.          CLS’s
Representations and Warranties. CLS hereby makes the following representations and warranties to XBIO as of the Effective Date:

 

(a)            CLS
has the right to grant to XBIO the rights and licenses described in this Agreement.

 

(b)           Exhibit
A contains a complete and correct list of all existing patents and patent applications Controlled by CLS and its Affiliates that are
necessary or useful to research, develop, make, use, import, export, market, offer for sale, sell and have sold Licensed Product in the
Territory in the Field.

 

 

 

    	 	16	 

     

    

 

(c)            To
CLS’s knowledge, no Third Party is infringing any of the Licensed Patents identified on Exhibit A.

 

(d)           To
CLS’s knowledge, the making, using or selling of a Licensed Product in the Field will not infringe any Third Party patent rights.

 

(e)            CLS
has not received any written notice of (i) any claim that any patent or trade secret right owned or controlled by a Third Party would
be infringed or misappropriated by the manufacture, use, sale, offer for sale or importation of Licensed Products in the Field in the
Territory, or (ii) any threatened claims or litigation seeking to invalidate or otherwise challenge the Licensed Patents or CLS’s
rights therein.

 

(f)            CLS
is the exclusive owner or licensee of the Licensed Patents and the Licensed Know-how listed in Exhibit B. CLS’s rights to the Licensed
Patents and Licensed Know-how are held free and clear of any liens, security interests and similar encumbrances.

 

(g)           To
CLS’s knowledge, there have been no inventorship or ownership challenges with respect to any of the Licensed Patents.

 

(h)           Neither
CLS nor its Affiliates has received written notice from any Regulatory Authority threatening any proceedings with respect to the research,
development or manufacture of any Licensed Product in the Field in the Territory.

 

(i)             CLS
represents that it has such knowledge and experience in business or financial matters that it is capable of evaluating the merits and
risks of an investment in the Shares.

 

8.3.          XBIO
Representations and Warranties.

 

(a)            Neither XBIO nor any of its Affiliates or subsidiaries is in violation or default of any provision of its or their certificate
of incorporation or bylaws (or equivalent organization documents), or in breach of or default with respect to any provision of any agreement,
judgment, decree, order, lease, franchise, license, permit or other instrument to which it or they are a party or by which it or they
or any of its or their properties are bound except for any violation or default that would not reasonably be expected to have a Material
Adverse Effect.

 

(b)           There
are no legal or governmental actions, suits or proceedings pending and there are no inquiries or investigations pending, or, to XBIO’s
knowledge, any legal or governmental actions, suits, or proceedings threatened, against XBIO or any of its Affiliates or subsidiaries
or of which property owned or leased by the XBIO or any of its Affiliates or subsidiaries is or may be the subject, which actions, suits
or proceedings, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. Neither XBIO nor any
of its Affiliates or subsidiaries is party to or subject to the provisions of any injunction, judgment, decree or order of any court,
regulatory body, administrative agency or other governmental body specifically naming XBIO or any of its Affiliates or subsidiaries that
would reasonably be expected to have a Material Adverse Effect.

 

8.4.          No
Warranty. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY HERETO MAKES ANY REPRESENTATIONS AND NEITHER PARTY
EXTENDS ANY WARRANTIES OF ANY KIND, EITHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, WITH RESPECT TO THE SUBJECT MATTER OF THIS AGREEMENT
(INCLUDING ANY LICENSED PRODUCT), INCLUDING ANY WARRANTY OF MERCHANTABILITY, NONINFRINGEMENT, OR FITNESS FOR A PARTICULAR PURPOSE. EXCEPT
AS EXPRESSLY PROVIDED IN THIS AGREEMENT, CLS MAKES NO WARRANTY OR REPRESENTATION AS TO THE VALIDITY OR SCOPE OF THE LICENSED PATENTS
OR LICENSED KNOW HOW, OR THAT ANY LICENSED PRODUCT WILL BE FREE FROM AN INFRINGEMENT ON PATENTS OR OTHER INTELLECTUAL PROPERTY RIGHTS
OF THIRD PARTIES. XBIO AND CLS DISCLAIM ANY REPRESENTATION OR WARRANTY THAT THE DEVELOPMENT, MANUFACTURE AND COMMERCIALIZATION OF LICENSED
PRODUCT PURSUANT TO THIS AGREEMENT WILL BE SUCCESSFUL OR THAT, IF COMMERCIALIZED, ANY PARTICULAR SALES LEVEL WILL BE ACHIEVED.

 

 

 

    	 	17	 

     

    

 

ARTICLE
IX

INDEMNIFICATION

 

9.1.          Indemnification
by XBIO. XBIO will indemnify, hold harmless, and defend CLS, its Affiliates, and their respective directors, officers, employees
and agents (the “CLS Indemnitees”) from and against any and all damages, liabilities, costs, expenses and amounts
paid in settlement (collectively, “Losses”) incurred in connection with any Third Party claim arising out of or resulting
from, directly or indirectly; (i) any breach of, or inaccuracy in, any representation or warranty made by XBIO in this Agreement, or
any breach or violation of any term of this Agreement by XBIO; (ii) the gross negligence or willful misconduct of XBIO, its Affiliates
and their respective Sublicensees, and their respective directors, officers, employees and agents; and (iii) the research, development,
manufacture, commercialization, or use of Licensed Product by XBIO and its Affiliates and Sublicensees in the Territory under this Agreement.
Notwithstanding the foregoing or anything in this Agreement to the contrary, XBIO will have no obligation to indemnify the CLS Indemnitees
for any other Losses as to which CLS is obligated to indemnify XBIO under Section 9.2.

 

9.2.          Indemnification by CLS. CLS will indemnify, hold harmless, and defend XBIO, its Affiliates and their respective directors,
officers, employees and agents (the “XBIO Indemnitees”) from and against any and all Losses incurred in connection
with any Third Party Claim arising out of or resulting from, directly or indirectly, (i) any breach of, or inaccuracy in, any representation
or warranty made by CLS in this Agreement, or any breach or violation of any term of this Agreement or the EIRGEN Agreement by CLS; (ii)
the gross negligence or willful misconduct of any CLS Indemnitee; or (iii) the research, development, manufacture, commercialization,
or use of Licensed Product by CLS or any of its Affiliates or licensees (other than XBIO ) outside the Field. Notwithstanding the foregoing,
or anything in this Agreement to the contrary, CLS will have no obligation to indemnify XBIO Indemnitees for any Losses as to which XBIO
is obligated to indemnify CLS under Section 9.1.

 

9.3.          Indemnification Procedure. In the event of any such claim against any XBIO Indemnitee or CLS Indemnitee (individually, an
“Indemnitee”), the indemnified Party shall promptly notify the other Party in writing of the claim and the indemnifying
Party shall manage and control, at its sole expense, the defense of the claim and its settlement. The indemnified Party will cooperate
with the indemnifying Party and assist in good-faith the defense of the claim and its settlement and may, at the indemnifying Party’s
option and expense, be represented in any such action or proceeding. The indemnifying Party will not be liable for any settlements, litigation
costs or expenses incurred by any Indemnitee without the indemnifying Party’s prior written authorization. Notwithstanding the foregoing,
if the indemnifying Party believes that any exceptions to its obligation of indemnification of the Indemnitees may apply, the indemnifying
Party will promptly notify the Indemnitees, who shall then have the right to be represented in any such action or proceeding by separate
counsel at their expense; provided that the indemnifying Party will be responsible for payment of such expenses if the Indemnitees are
ultimately determined to be entitled to indemnification from the indemnifying Party.

 

9.4.          Limitation
of Liability. NEITHER PARTY HERETO WILL BE LIABLE FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES ARISING OUT OF THIS
AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, INCLUDING LOST PROFITS ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS
OF ANY NOTICE OF SUCH DAMAGES, EXCEPT AS A RESULT OF A PARTY’S WILLFUL MISCONDUCT. NOTHING IN THIS SECTION 9.4 IS INTENDED TO LIMIT
OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER PARTY.

 

9.5.          Insurance.
During the Term and for a period of at least two (2) years after the last commercial sale of a Licensed Product in the Territory under
this Agreement, XBIO will maintain insurance, with a reputable, insurer rated at least “A” by AmBest in an amount appropriate
for its business and products of the type that are the subject of this Agreement, and for its obligations under this Agreement, including,
commencing immediately prior to the first human clinical trial, product and clinical trial liability insurance of at least $2,000,000
per occurrence and $2,000,000 in the aggregate on a worldwide basis.

 

 

 

    	 	18	 

     

    

 

ARTICLE
X

TERM AND TERMINATION

 

10.1.        Term.
This Agreement will become effective as of the Effective Date, and will continue in full force and effect on a country-by-country and
Licensed Product-by-Licensed Product basis until terminated in accordance with this Article X (“Term”). Upon expiration
of the Royalty Term in a country of the Territory (but not earlier termination of this Agreement) the Patent License granted to XBIO
under Section 2.1(a) will convert to perpetual, fully paid-up, royalty-free licenses on a country-by-country and Licensed Product-by-Licensed
Product basis with the same scope as set forth in such Section.

 

10.2.        Termination
for Convenience. XBIO will have the right to terminate this Agreement at any time and for any reason upon at least three (3) months’
prior written notice to CLS.

 

10.3.        Termination for Cause. This Agreement may be terminated at any time during the Term upon written notice by either Party
if the other Party is in material breach of its obligations hereunder, and has not cured such material breach within sixty (60) days after
written notice describing the nature of such material breach is provided to the breaching Party. Additionally, if XBIO ceases all development
activities for a period of twelve (12) consecutive months, and does not cure such failure or cessation within sixty (60) days of receiving
written notice thereof from CLS, then CLS will have the right to terminate this Agreement in its entirety by providing written notice
of termination to XBIO.

 

10.4.        CLS
Termination. To the extent permitted by applicable law, CLS may terminate this Agreement upon written notice of termination to XBIO
upon or after the filing of bankruptcy of XBIO or the making by XBIO of any assignment for the benefit of creditors.

 

10.5.        Patent
Challenge. CLS has the right to terminate this Agreement upon written notice to XBIO in the event that XBIO or any of its Affiliates
or Sublicensees directly or indirectly challenges in a legal or administrative proceeding the patentability, enforceability or validity
of any Licensed Patent or the scope or construction of any Valid Claim (each, a “Patent Challenge”); provided that
this Section 10.5 will not apply to any such Patent Challenge that is first made by XBIO or any of its Affiliates or Sublicensees in
defense of a claim of patent infringement brought by CLS or its Affiliates under the applicable Licensed Patent.

 

10.6.        Effect
of Termination.

 

(a)            Pre-Termination
Obligations; Transfer of Information and Filings. Upon the termination of this Agreement for any reason, nothing herein shall be
construed to release either Party from any obligation that matured prior to the effective date of such termination. XBIO shall remain
obligated to provide an accounting for and to pay royalties earned. Subject to Section10.1, in the event of termination, (i) the licenses
granted hereunder shall terminate, and XBIO shall promptly assign to CLS all of XBIO’s and its Affiliates’ right, title and
interest in and to the Joint Patent and any patent applications claiming priority thereto and/or any patents issuing thereon; (ii) XBIO
shall have no further right under Licensed Patents or Licensed Know-how to develop, manufacture or market the Licensed Product or any
product containing Licensed Product, or otherwise to use the Licensed Patents or Licensed Know How; (iii) all XBIO sublicenses shall
be subject to CLS’s obligation in Section 2.2(a); and (iv) all rights granted to XBIO hereunder shall revert to CLS for the benefit
of CLS. Notwithstanding the foregoing, XBIO shall be entitled to sell any completed inventory of Licensed Product which remain on hand
as of the date of the termination to the extent necessary to satisfy its contractual and legal obligations, so long as XBIO pays to CLS
the royalties applicable to said subsequent sales in accordance with the terms and conditions as set forth in this Agreement; provided
that no sales shall be permitted after the expiration of six (6) months after the date of termination. XBIO will execute all documents
and take all such further actions, as may be reasonably requested by CLS in order to give effect to the preceding sentences as soon as
practicable.

 

 

 

    	 	19	 

     

    

 

(b)           Post-Termination
Royalty by CLS. If this Agreement is terminated by CLS for cause in accordance with Section 10.3, or by XBIO for convenience in
accordance with Section 10.2, then XBIO shall, at CLS’s request, grant to CLS or CLS’s designee a perpetual,
non-exclusive license to use solely in the Field: (a) all governmental or regulatory correspondence, conversation logs, filings and
approvals (including all Marketing Approvals and pricing and reimbursement approvals) owned or otherwise Controlled by XBIO and
relating to the development, manufacture or commercialization of the Licensed Product in the Territory and all product trademarks
then being used in connection with Licensed Product, other than XBIO corporate trademarks; and (b) all safety data and other adverse
event data owned or otherwise Controlled by XBIO; with all rights granted subject to the terms of any subsequent sublicense XBIO
entered into providing a Sublicensee rights to the property set forth in both (a) and (b) above. For purposes of clarity, if the
Sublicensee has exclusive rights to the property set forth in (a) and (b) above, then CLS shall have not right to sublicense those
rights to a third-party, nor shall CLS have a right to use such property set forth in (a) and (b) above for its own development or
commercial purposes. In exchange for the license set forth in this Section 10.6(b), CLS shall pay to XBIO an amount equal to on a
quarterly basis, [***] of all proceeds received by CLS or any of its Affiliates, successors, or assigns arising from or relating to
any Licensed Product, Licensed Patent, or Licensed Know-how.

 

10.7.        Survival.
Any expiration or termination of this Agreement will be without prejudice to the rights of either Party against the other accrued or
accruing under this Agreement prior to expiration or termination, including payment obligations arising prior to such expiration or termination.
The provisions of Sections 2.4(a) and 5.6, and Articles V, VIII, VIII, IX and X will survive any expiration or termination of this Agreement
and all other provisions contained in this Agreement that by their explicit terms survive expiration or termination of this Agreement,
will survive. Except as set forth in this Article X, upon termination or expiration of this Agreement all other rights and obligations
of the Parties under this Agreement terminate.

 

ARTICLE
XI

DISPUTE RESOLUTION

 

11.1.        Continuance
of Rights and Obligations During Pendency of Dispute Resolution. If there are any disputes in connection with this Agreement, including
disputes related to termination of this Agreement under Article X, all rights and obligations of the Parties shall continue until such
time as any dispute has been resolved in accordance with the provisions of this Article XI.

 

11.2.        Referral
of Unresolved Matters to Senior Executives. In the event that the Parties are unable to resolve a dispute within twenty-five (25)
days from the date such dispute is first brought to the other Party’s attention, the matter shall be referred to a senior executive
of each Party to be resolved by negotiation in good faith as soon as is practicable but in no event later than thirty (30) days after
referral.

 

11.3.        Arbitration.
Any dispute, controversy or claim arising out of or relating to this Agreement during the preclinical and clinical trial development
of a Licensed Product which the Parties have not resolved under Section 11.2, will be decided by arbitration in accordance with the Rules
of the Conflict Prevention and Resolution Institute (“CPR”) in effect at the time the dispute arises, unless the Parties
hereto mutually agree otherwise. To the extent such rules are inconsistent with this provision, this provision will control. The following
rules will apply to any such arbitration:

 

(a)            Any
demand for arbitration must be made in writing to the other Party.

 

(b)           There
will be three arbitrators, one of whom shall be appointed by each party and a third of whom shall be the chairman of the panel and be
appointed by mutual agreement of the two arbitrators appointed by the Parties, and with the mutual written consent of the Parties, with
such consent not to be unreasonably withheld. If the two arbitrators cannot agree on the appointment of the third arbitrator within thirty
(30) days, then the CPR shall select the arbitrator, who shall be approved following the mutual written consent of the Parties, with
such consent not to be unreasonably withheld. Any arbitration involving patent rights, other intellectual property rights or intellectual
property will be heard by arbitrators who are expert in such areas.

 

 

 

    	 	20	 

     

    

 

(c)            The
arbitration will be held in the State of Delaware, or such other place as the Parties agree. The arbitrators will apply the substantive
law of the Delaware.

 

(d)           Neither
Party will have the right independently to seek recourse from a court of law or other authorities in lieu of arbitration, but each Party
has the right before or during the arbitration to seek and obtain from the appropriate court provisional remedies to avoid irreparable
harm, maintain the status quo or preserve the subject matter of the arbitration. There shall be a stenographic record of the proceedings.
The decision of the arbitrators will be final and binding upon both Parties. The arbitrators will render a written opinion setting forth
findings of fact and conclusions of law.

 

(e)            The
expenses of the arbitration will be borne by the Parties in proportion as to which each Party prevails or is defeated in arbitration.
Each Party will bear the expenses of its counsel and other experts.

 

11.4.        Litigation. Any dispute, controversy or claim arising out of or relating to this Agreement following approval of a Licensed
Product, which the Parties have not resolved under Section 11.2, will be decided by a court of the appropriate jurisdiction in the State
of Delaware.

 

11.5.        Equitable
Relief. Notwithstanding anything to the contrary, each of the Parties hereby acknowledges that a breach of their respective obligations
under this Agreement may cause irreparable harm and that the remedy or remedies at law for any such breach may be inadequate. Each of
the Parties hereby agrees that, in the event of any such breach, in addition to all other available remedies hereunder, the non-breaching
Party shall have the right, through the arbitration process described in Section 11.3, to seek equitable relief to enforce the provisions
of this Agreement.

 

ARTICLE
XII

MISCELLANEOUS

 

12.1.        Governing
Law and Jurisdiction. The validity, construction and performance of this Agreement will be governed by and construed in accordance
with the substantive laws of the State of Delaware excluding any conflicts or choice of law rule or principle that might otherwise refer
construction or interpretation of this Agreement to the substantive law of another jurisdiction.

 

12.2.        Force
Majeure. Except for each Party’s 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, pandemics, epidemics, strikes, supplier delays, failure
of utilities or common carriers, shortages of raw materials, government orders, sufferance of or voluntary compliance with acts of government
or governmental regulation, or acts of war or terrorism, which are reasonably beyond the control of the Party obligated to perform. Force
majeure shall not include a lack of funds, bankruptcy or other financial cause or disadvantage, and force majeure shall not excuse or
delay any Party’s payment obligations under this Agreement. 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 condition of force majeure shall be deemed to continue only so long as the affected
Party shall be taking all reasonable actions necessary to overcome such condition. If either Party shall be affected by a condition of
force majeure, 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 condition of force
majeure. Any delay occasioned by any such cause shall not constitute a default, breach or failure under this Agreement, and the obligations
of the Parties shall be suspended during the period of delay so occasioned. During any period of force majeure, the Party that is not
directly affected by such condition of force majeure may take any reasonable action necessary to mitigate the effects of such condition
of force majeure.

 

 

 

    	 	21	 

     

    

 

12.3.        Further
Assurances. Each Party hereto agrees to perform such acts, execute such further instruments, documents or certificates, and provide
such cooperation in proceedings and actions as may be reasonably requested by the other Party in order to carry out the intent and purpose
of this Agreement.

 

12.4.        Notices.
Any notice required or permitted to be given under this Agreement will be in writing and will be deemed to have been properly given if
delivered in person by an internationally recognized overnight courier, or by fax (and promptly confirmed by overnight courier), to the
addresses given below or such other addresses as may be designated in writing by the Parties from time to time during the Term.

 

In the case of CLS:

 

CLS Therapeutic Limited

PO Box 175, Frances
House,

Sir William
Place, St Peter Port

Guernsey,
Channel Islands

GY1 4HQ

Attention: Mrs. Anne Le Cheminant

Facsimile: +44 (0) 1481 722674

Email: AnneLeCheminant@equiomgroup.com

 

With a copy to:

 

CLS Therapeutics, Inc.

Attn: Chief Executive Officer

101 6th Avenue, Floor 3

New York, NY 10013, U.S.A.

 

In the case of XBIO:

 

Xenetic Biosciences,
Inc.

40 Speen Street, Suite 102

Framingham, Massachusetts01701

Attn: Chief Executive
Officer

Email: j.eisenberg@xeneticbio.com

 

With a copy to:

 

Holland & Knight LLP

701 Brickell Avenue, Suite 3300

Miami, FL 33131

Attention: Danielle Price, Esq.

Email: danielle.price@hklaw.com

 

 

 

    	 	22	 

     

    

 

12.5.        Assignment.
This Agreement may not be assigned or otherwise transferred by either Party, without the written consent of the other Party such consent
not to be unreasonably withheld, conditioned or delayed; provided, however, that either Party may, without such consent, assign this
Agreement, in whole or in part, (i) to any of its Affiliates, and (ii) to a Third Party successor or purchaser of all or substantially
all of its business or assets to which this Agreement relates, whether in a merger, sale of stock, sale of assets or other similar transaction,
provided that, the Third Party successor or purchaser provides written notice to the other Party that such Third Party agrees to be bound
by the terms of this Agreement. Any purported assignment in violation of this Section 12.5 will be void. Any permitted assignee shall
assume all obligations of its assignor under this Agreement.

 

12.6.        Affiliate
Performance. Any obligation of XBIO or CLS under or pursuant to this Agreement may be satisfied, met or fulfilled, in whole or in
part, either by XBIO or CLS directly or by any Affiliate or Sublicensee of either party.

 

12.7.        Amendment.
The Parties hereto may amend, modify or alter any of the provisions of this Agreement, but only by a written instrument duly executed
by both Parties hereto.

 

12.8.        Entire
Agreement. This Agreement, along with all schedules and exhibits attached hereto, contains the entire understanding of the Parties
with respect to the subject matter hereof and supersedes all prior agreements, whether written or oral. Each Party confirms that it is
not relying on any representations, warranties or covenants of the other Party except as specifically set out in this Agreement.

 

12.9.        No
Benefit to Third Parties. The provisions of this Agreement are for the sole benefit of the Parties and their successors and permitted
assigns, and they shall not be construed as conferring any rights in any other person or entity.

 

12.10.      Waiver.
The failure of a Party to enforce at any time for any period any of the provisions of this Agreement will not be construed as a waiver
of such provisions or of the rights of such Party thereafter to enforce each such provision.

 

12.11.      No
Implied Licenses. Except as expressly and specifically provided under this Agreement, the Parties agree that neither Party is granted
any implied rights to or under any of the other Party’s current or future patents, trade secrets, copyrights, moral rights, trade
or service marks, trade dress, or any other intellectual property rights.

 

12.12.      Relationship
of the Parties. The Parties agree that their relationship established by this Agreement is that of independent contractors. Furthermore,
the Parties agree that this Agreement does not, is not intended to, and shall not be construed to, establish a partnership or joint venture,
and nor shall this Agreement create or establish an employment, agency or any other relationship. Except as may be specifically provided
in this Agreement, neither Party shall have any right, power or authority, nor shall they represent themselves as having any authority
to assume, create or incur any expense, liability or obligation, express or implied, on behalf of the other Party, or otherwise act as
an agent for the other Party for any purpose.

 

12.13.      Severability.
If any provision of this Agreement is held unenforceable by a court or tribunal of competent jurisdiction in a final unappealable order
because it is invalid or conflicts with any law of any relevant jurisdiction, then such provision will be inoperative in such jurisdiction
and the remainder of this Agreement shall remain binding upon the Parties hereto.

 

12.14.      Interpretation.

 

(a)             
General. Unless the context of this Agreement otherwise requires, (a) words of one gender include the other gender; and
(b) words using the singular or plural number also include the plural or singular number, respectively. Whenever this Agreement refers
to a number of days, unless otherwise specified, such number shall refer to Calendar Days.

 

 

 

    	 	23	 

     

    

 

(b)            
Other Definitional and Agreement References. References to any agreement, contract, statute, act, or regulation are to that
agreement, contract, statute, act, or regulation as amended, modified or supplemented from time to time in accordance with the terms hereof
and thereof.

 

(c)             
Capitalization. Any capitalized terms used in any Exhibit or Schedule but not otherwise defined therein, shall have the
meaning as defined in this Agreement.

 

(d)            
Date References. References from or through any date mean, unless otherwise specified, from and including or through and
including, respectively.

 

(e)             
Schedules and Exhibits. All Schedules and Exhibits annexed hereto or referred to herein are hereby incorporated in and made
a part of this Agreement as if set forth in full herein.

 

(f)             
Person References. References to any Person include the successors and permitted assigns of that Person.

 

(g)            
References to Parts of this Agreement. References to Articles, Sections, Schedules, and Exhibits are to Articles, Sections,
Schedules, and Exhibits of this Agreement unless otherwise specified.

 

(h)            
Other Definitional and Interpretative Provisions. The words “hereof”, “herein” and “hereunder”
and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.
Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be
deemed to be followed by the words “without limitation”, whether or not they are in fact followed by those words or words
of like import. The word “or” is used in the inclusive sense (and/or). “Writing”, “written” and comparable
terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form.

 

(i)              
Headings. The Article and Section headings contained in this Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement.

 

(j)              
Expenses. Except as otherwise expressly provided in this Agreement, each Party shall pay the fees and expenses of its respective
lawyers and other experts and all other expenses and costs incurred by such Party incidental to the negotiation, preparation, execution
and delivery of this Agreement.

 

12.15.      Further
Assurances. Each Party agrees to execute, acknowledge and deliver such further documents and instruments and do any other acts, from
time to time, as may be reasonably necessary, to effectuate the purposes of this Agreement.

 

12.16.      Counterparts.
This Agreement may be executed in any number of counterparts (including by facsimile or electronic signature, including DocuSign), each
of which shall be deemed an original, but all of which together shall constitute one and the same document.

 

[Signature Page Follows]

 

 

 

    	 	25	 

     

    

 

IN WITNESS WHEREOF, XBIO and CLS have caused this
Agreement to be duly executed by their authorized representatives under seal, in duplicate on the Effective Date.

 

 

 

CLS Therapeutics Ltd.

 

 

By: /s/ Trevor Pinchemain                  

Name: Trevor Pinchemain

 

 

By: /s/ Jodi Lanlois                              

Name: Jodi Langlois

 

Authorised Signatories of Equiom

(Guernsey) Limited
as Authorised

Signatories of Virtus Directors Limited

director of CLS Therapeutics Ltd.

 

 

Xenetic Biosciences, Inc.

 

By: /s/ Jeffrey Eisenberg              

 

Name: Jeffrey Eisenberg

 

Title: Chief Executive Officer

 

 

 

 

    	 	26	 

     

    

 

Exhibit A

 

Licensed Patents

 

[***]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	27	 

     

    

 

Exhibit B

 

Licensed Know-how

 

[***]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	28	 

     

    

 

Exhibit C

 

[***]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	29Exhibit 10.3

 

THE SECURITIES HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OR ANY OTHER JURISDICTION. THERE ARE FURTHER RESTRICTIONS ON THE TRANSFERABILITY
OF THE SECURITIES DESCRIBED HEREIN. THE PURCHASE OF THE SECURITIES INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY PERSONS
WHO CAN BEAR THE RISK OF THE LOSS OF THEIR ENTIRE INVESTMENT.

 

XENETIC BIOSCIENCES, INC.

 

FORM OF SUBSCRIPTION AGREEMENT

 

APRIL 26, 2022

 

This Subscription Agreement
(this “Agreement”), made this 26th day of April, 2022 (the “Effective Date”), is by and between Xenetic
Biosciences, Inc., a Nevada corporation, with offices located at 40 Speen St., Suite 102, Framingham, MA 01701 (the “Company”),
and CLS Therapeutics LTD, a company organized under the laws of Guernsey with principal offices located at of PO Box 175, Frances House,
Sir William Place, St Peter Port, Guernsey, GY1 4HQ, UK (“CLS”). Each of the Company and CLS are sometimes referred to herein
as a “Party” and collectively as the “Parties.” When used in this Agreement, the terms “we,” “our,”
“ours” and “us” refer to the Company.

 

WHEREAS, CLS owns or controls
certain patent rights and know-how related to the use of Deoxyribonuclease enzyme for treatment of cancer;

 

WHEREAS, the Parties are entering
into that certain Exclusive [License/Sublicense] Agreement, dated on or about the Effective Date (the “License Agreement”),
pursuant to which CLS shall grant to the Company, and the Company shall obtain from CLS, an exclusive [license/sublicense] under such
patent rights and to such know-how to develop and commercialize pharmaceutical products and methods incorporating Deoxyribonuclease enzyme
(the “[License/Sublicense]”); and

 

WHEREAS, pursuant to the License
Agreement, as partial consideration for the [License/Sublicense], the Company wishes to grant to CLS, and CLS wishes to receive, shares
of common stock of the Company on the terms and subject to the conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration
of the premises, mutual promises and covenants contained in this Agreement, and for other good and valuable consideration, the sufficiency
of which is hereby acknowledged, the Parties hereto hereby agree as follows:

 

1.             Issuance
of Shares of Common Stock.

 

1.1           Common
Stock Issuance. Subject to the terms and conditions contained in this Agreement, effective as of the Effective Date, the Company
agrees to issue and deliver to CLS, and CLS agrees to accept, [           ] shares
of the Company’s common stock (the “Shares”) as partial consideration for the [License/Sublicense] as set forth in
the License Agreement. 

 

1.2           Closing.
The Company shall issue the Shares to CLS on the Effective Date. CLS acknowledges that the Shares will be subject to restrictions on
transfer as set forth in this Agreement.

 

 

 

    	 	 	 

     

    

 

2.             Representations
and Warranties of CLS.

 

2.1           Investment
Representations. The offering and sale of the Shares is intended to be exempt from registration under the Securities Act of
1933, as amended (the “Securities Act”), by virtue of Section 4(a)(2) of the Securities Act and the provisions of Regulation
D promulgated thereunder. In furtherance thereof, CLS represents and warrants to the Company as follows:

 

(a)            
All assumptions and projections set forth in any material provided to CLS have been included therein for purposes of illustration
only, and no assurance is given that actual results will correspond with the results contemplated by the various assumptions set forth
therein;

 

(b)            
The statements and information set forth in the Investor Questionnaire attached hereto as Exhibit A are true, accurate and
complete. All information which CLS has provided to the Company concerning CLS and its financial position is correct and complete as of
the date set forth below, and if there should be any change in such information prior to its acceptance as a security holder of the Company,
CLS will immediately provide such information to the Company and will promptly send confirmation of such information to the Company; 

 

(c)            
CLS has been duly authorized and is duly qualified to (i) execute and deliver this Agreement and all other instruments executed
and delivered on behalf of such corporation in connection herewith and (ii) receive and hold the Shares. The signature of CLS is
binding upon the corporation and CLS has not been formed for the specific purpose of acquiring shares of the Company’s common stock;

 

(d)            
CLS recognizes that an investment in the Company involves substantial risks and represents that it has taken full cognizance of
and understands all of the risks related to the Shares, as set forth in the Risk Factors section of the Company’s Annual Report
on Form 10-K and in its other filings with the Securities and Exchange Commission from time to time, all of which are publicly available
and CLS has reviewed, or has been given the opportunity to review all such risks; 

 

(e)            
CLS and its representatives have undertaken such investigation and have been provided with and have evaluated such documents and
information as they deem necessary to enable them to make an informed and intelligent decision with respect to the execution, delivery
and performance of this Agreement and the transactions contemplated hereby. CLS and its representatives have received all materials relating
to the business of the Company that they have requested and have been afforded the opportunity to obtain any additional information necessary
to verify the accuracy of any such information or of any representation or warranty made by the Company hereunder or to otherwise evaluate
the merits of the transactions contemplated hereby. CLS acknowledges that the Company has given CLS (i) open access to the key employees,
and (ii) the opportunity to ask questions concerning the business of the Company or otherwise relating to the transactions contemplated
hereby, which questions have been answered to the CLS’s satisfaction. Without limiting the generality of the foregoing, CLS acknowledges
that (a) the Company does not make any representation or warranty with respect to (i) any projections, estimates or budgets
delivered to or made available to CLS of future revenue, future results of operations (or any component thereof), future cash flows or
future financial condition (or any component thereof) of the Company or the future business and operations of the Company or (ii) any
other information or documents made available to CLS or its counsel, accountants, advisors or other representatives with respect to the
Company or its businesses, assets, liabilities or operations, except as expressly set forth in this Agreement, and (b) CLS has not
relied and will not rely upon any of the information described in subclauses (i) and (ii) of clause (a) above in executing,
delivering and performing this Agreement and the transactions contemplated hereby, provided, however, that nothing in the Agreement or
the certificate shall impair any claim based on fraud; and

 

 

 

    	 	2	 

     

    

 

(f)             
CLS understands and agrees that, (i) in accordance with the Securities Act and the rules and regulations promulgates thereunder,
including Rule 144 under the Securities Act (“Rule 144”), the Shares have not been and are not being registered under the
Securities Act or any state securities laws, and shall bear the restrictive legend set forth below, and shall be issued to CLS in reliance
on the applicable exemption from registration under the Securities Act, and may not be offered for sale, sold, assigned or transferred
unless (A) subsequently registered thereunder or (B) an exemption exists permitting such Shares to be sold, assigned or transferred without
such registration; (ii) any sale of the Shares made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144
(including the requisite holding period prescribed by Rule 144) and further, if Rule 144 is not applicable, any resale of the Shares under
circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined
in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations thereunder;
and (iii) neither the Company nor any other person is under any obligation to register the Shares under the Securities Act or any state
securities laws or to comply with the terms and conditions of any exemption thereunder:

 

THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR (B) AN OPINION OF COUNSEL, IN A REASONABLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS, OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER
SAID ACT.

 

3.             Representations
and Warranties of the Company.

 

3.1           SEC
Reports. The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company
under the Securities Act, and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including pursuant to
Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law
or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference
therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension
of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates,
the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and
none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to
be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made,
not misleading. The Company has never been an issuer subject to Rule 144(i) under the Securities Act.

 

3.2           Listing.
As of the date hereof, the Company’s common stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the
Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the
Company’s common stock under the Exchange Act nor has the Company received any notification that the Securities and Exchange Commission
is contemplating terminating such registration. The Company has not, in the 12 months preceding the date hereof, received notice from
the Nasdaq Stock Market to the effect that the Company is not in compliance with the listing or maintenance requirements of such trading
market. As of the date hereof, the Company is in compliance with all such listing and maintenance requirements. As of the date hereof,
the Company’s common stock is currently eligible for electronic transfer through the Depository Trust Company or another established
clearing corporation and the Company is current in payment of the fees to the Depository Trust Company (or such other established clearing
corporation) in connection with such electronic transfer.

 

 

 

    	 	3	 

     

    

 

4.             Representations
and Warranties of the Parties.

 

4.1           Anti-Money
Laundering and Office of Foreign Assets Control Sanctions and Representations. The Parties should check the Office of Foreign
Assets Control (“OFAC”) website at http://www.treas.gov/ofac before making the following representations:

 

(a)            
Each Party represents and warrants that none of: (a) the Party; (b) any person or entity controlling or controlled by the Party;
(c) any person or entity having a beneficial interest in the Party; or (d) any person or entity for whom or which the Party is acting
as agent or nominee in connection with this investment, is a country, territory, entity, or person named on the OFAC List of Specially
Designated Nationals and Blocked Persons, OFAC’s Sectoral Sanctions Identification List, or any other restricted party list maintained
by OFAC, nor a Sanctioned Country or a person or entity acting for or on behalf of any sanctioned countries and territories, including
individuals and entities in those countries. Each Party agrees to promptly notify the other should such Party become aware of any change
in the information set forth in any of the Party’s representations in this Agreement or any documentation to be executed by the
Party in connection with this Agreement.

 

(b)            
Each Party represents and warrants that none of: (a) the Party; (b) any person or entity controlling or controlled by the Party;
(c) any person or entity having a beneficial interest in the Party; or (d) any person or entity for whom the Party is acting as an agent
or nominee in connection with this investment is a senior foreign political figure,[1]
or any immediate family member[2] or close
associate[3] of a senior foreign political
figure, as such terms are defined in the footnotes below; and

 

(c)            
If any Party is affiliated with a non-U.S. banking institution (a “Foreign Bank”) or if such Party receives deposits
from, makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, each such Party represents and warrants
to the other that: (a) the Foreign Bank has a fixed address, and not solely an electronic address, in a country in which the Foreign Bank
is authorized to conduct banking activities; (b) the Foreign Bank maintains operating records related to its banking activities; (c) the
Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank to conduct its banking activities; and (d)
the Foreign Bank does not provide banking services to any other Foreign Bank that does not have a physical presence in any country and
that is not a regulated affiliate.

 

4.2           Authorization;
Enforcement. Each Party represents and warrants on behalf of itself that: (i) such Party has the requisite corporate power and authority
to enter into and to consummate the transactions contemplated by this Agreement and each of the other documents contemplated by this
Agreement and otherwise to carry out its obligations hereunder and thereunder, (ii) the execution and delivery of this Agreement by such
Party and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action
on the part of such Party and no further action is required by such Party, its board of directors or its stockholders in connection herewith
or therewith, and (iii) this Agreement has been (or upon delivery will have been) duly executed by such Party and, when delivered in
accordance with the terms hereof and thereof, will constitute the valid and binding obligation of such Party enforceable against such
Party in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws
relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

 

__________________________

[1] A
“senior foreign political figure” is defined as a senior official in the executive, legislative, administrative, military,
or judicial branch of a foreign government (whether elected or not), a senior official of a major foreign political party, or a senior
executive of a foreign government-owned corporation. In addition, a “senior foreign political figure” includes any corporation,
business, or other entity that has been formed by, or for the benefit of, a senior foreign political figure.

[2] “Immediate
family” of a senior foreign political figure typically includes such figure’s parents, siblings, spouse, children, and in-laws.

[3] A
“close associate” of a senior foreign political figure is a person who is widely and publicly known to maintain an unusually
close relationship with such senior foreign political figure, and includes a person who is in a position to conduct substantial domestic
and international financial transactions on behalf of such senior foreign political figure.

 

    	 	4	 

     

    

 

Each Party is entitled
to rely upon the accuracy of the other Party’s representations in this Agreement and all other representations made or to be made
by such Party in any other documents executed by the Party in connection with this Agreement.

 

5.             Survival
of Representations and Warranties. The representations and warranties of each of the Parties set forth
in this Agreement are true and accurate as of the date hereof and shall survive the Effective Date.

 

6.             Indemnification.
Each Party shall indemnify and hold harmless the other Party and its respective officers, employees, registered representatives, directors
or control persons who was or is a party to, or is threatened to be made a party to any threatened, pending or completed action, suit
or proceeding, whether civil, criminal, administrative or investigative, by reason of, or arising from any breach of the such Party’s
representations herein, against any losses, liabilities and expenses actually and reasonably incurred by the other Party or any of its
respective officers, employees, registered representatives, directors or control persons (including reasonable attorneys’ fees,
judgments, fines and amounts paid in settlement) in connection with such action, suit or proceeding.

 

7.             Legend
Removal. Upon the request of CLS, the Company shall promptly remove the legend described in Section 2.1(f) (or instruct its transfer
agent to so remove such legend) from the certificates or book-entry accounts evidencing the Shares issued and sold to CLS pursuant to
this Agreement if (a) such Shares are sold or transferred pursuant to Rule 144, or (b) such Shares are eligible for sale under Rule 144,
without the requirement for the Company to be in compliance with the current public information required under Rule 144(c)(1) as to such
securities and without volume or manner of sale restrictions.

 

8.             Miscellaneous.

 

8.1           This
Agreement, including any exhibits hereto, and the License Agreement constitute the entire agreement among the Parties hereto with respect
to the subject matter hereof and supersede any and all prior or contemporaneous representations, warranties, agreements and understandings
in connection therewith. This Agreement may be amended only by a writing executed by all Parties hereto. This Agreement shall be binding
upon each of the Parties, its heirs, estate, legal representatives, successors and assigns and shall inure to the benefit of each such
Party and its successors and assigns. In the event that any provision of this Agreement is invalid or unenforceable under any applicable
statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall
not affect the validity or enforceability of any other provision hereof. All pronouns and any variations thereof used herein shall be
deemed to refer to the masculine, feminine, singular or plural as the identity of the person or persons may require. The failure of any
Party to exercise any right or remedy under this Agreement, or any other agreement between the Parties, or otherwise, or delay in exercising
such right or remedy, will not operate as a waiver thereof. No waiver by any Party will be effective unless and until it is in writing
and signed by such Party. 

 

8.2           Sections
10.3, 10.4, 10.5, 11.1, 11.3, 11.4, 11.5 and 11.9 of the License Agreement shall apply to this Agreement, mutatis mutandis, as if it
had been fully set forth herein.

 

[Signature Page Follows]

 

 

 

    	 	5	 

     

    

 

SUBSCRIPTION AGREEMENT

SIGNATURE PAGE

 

The undersigned represents
to Xenetic Biosciences, Inc., a company incorporated under the laws of the State of Nevada (the “Company”), that: (i) the
information contained herein is complete and accurate on the date hereof and may be relied upon by the Company; (ii) the undersigned will
notify the Company immediately of any change in any of such information occurring prior to the acceptance of the subscription and will
promptly send to the Company written confirmation of such changes; and (iii) the undersigned has read and understands this Subscription
Agreement.

 

NOW THEREFORE, the undersigned
have executed this Subscription Agreement as of April 26, 2022, which may be executed in any number of counterparts (whether by original
signature, facsimile or other electronic means, including .PDF), each of which shall be deemed an original, but such counterparts together
shall constitute one and the same instrument.

 

 

	 	CLS Therapeutics LTD
	 	 
	 	By: 	 

                                                

                                                 

	 	Name:	 

                                                                    

	 	 

                                                         Title:

                                                         
	           

 

 

 

 

	 	Xenetic Biosciences, Inc.

                     

                     

	 	By:	
	 	 	 
	 	Name:	Jeffrey Eisenberg
	 	 	 
	 	Title:	Chief Executive Officer

 

 

    	 	 	 

     

    

 

EXHIBIT A

 

Investor Questionnaire

 

(See attached)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

INVESTOR QUESTIONNAIRE

 

Xenetic Biosciences, Inc.

a Nevada corporation (the “Company”)

 

Please Print or Type and Complete Fully

 

NOTE: If the investor is an individual,
please complete this Investor Questionnaire from the perspective of the subscribing individual. If the investor is an entity, such
as a corporation, please complete this Investor Questionnaire from the perspective of the subscribing entity, not the individual
completing the questionnaire.

 

PART IGENERAL INFORMATION

 

		1.	Name of individual subscriber or subscribing entity:                                                 
	 	 	 
	 	2.	Social Security No. or Taxpayer Identification No.                                                     
	 	 	 
	 	3.	Type of Ownership (check appropriate box) 
	 	 	 
	 	 	 ☐    Individual	 ☐    Trust
	 	 	 ☐    Corporation	 ☐    Joint Tenants w/ Right of Survivorship
	 	 	 ☐    Partnership	 ☐    Tenants
in Common Other
	 	 	 ☐    LLC	 ☐    Other
	 	 	 
	 	 	Note: Each joint tenant and tenant in common must sign
                              and complete an entire Investor Questionnaire. Every other document must also be signed by each of them.
	 	 	 
	 	4.	Marital Status:
	 	 	 
	 	5.	Date of Birth or Formation of Entity:
	 	 	 
	 	6.	Address (The address given must be the physical address. POST OFFICE BOXES AND OTHER ADDRESSES WILL NOT
BE ACCEPTED.)
	 	 	 
	 	 	Street Address:                                                                                                                  
	 	 	 
	 	 	City, State
& Zip Code:                                                                                                    
	 	 	 
	 	7.	Telephone Number: (   )                                                                                                    
	 	 	 
	 	 	Fax Number: (   )                                                                                                                 

 

 

 

    	 	 	 

     

    

 

		
	 	 
	8.	Employment
Information (if Individual):
	 	 
	 	(a)     Employer Name:                                                                                                       
	 	 
	 	(b)     Business Street Address:                                                                                      
	 	 
	 	          Business City, State & Zip Code:
	 	 
	 	          Telephone Number: (   )                                                                                          
	 	 
	 	(c)     Nature of Employer’s
Business:                                                                            
	 	 
	 	(d)     Title:                                                                                                                           
	 	 
	 	(e)     Length of Employment:                                                                                           
	 	 
	9.	State
of Principal Residence (if Individual) or Place of Business (if Entity):
	 	 
	 	(a)     Indicate your state of principal residence or place of business for the last two years: 

                                                                                                                                                                                                                       

	 	 
	 	(b)     Indicate your state of incorporation
                              (if Entity):                                                  

 

		(c)	Do you have any intention of changing your present state of residence or place of business in the near
future?

 

Yes  ̈
No  ̈

 

		(d)	If “Yes” please explain:                                                                                     

 

		10.	Are you an employee benefit plan within the meaning of ERISA?

 

Yes  ̈
No  ̈

 

		11.	I would prefer to be contacted at my:  ̈ Home  ̈
Business

 

		12.	I would prefer to have correspondence sent to my:  ̈
Home  ̈ Business

 

 

 

    	 	A-2	 

     

    

 

PART IIINVESTOR
KNOWLEDGE AND EXPERIENCE

 

		1.	Do you have sufficient knowledge and experience in financial and business matters so as to be capable
of evaluating the merits and risks associated with investing in the Company?

 

Yes  ̈
No  ̈

 

		2.	Do you understand the nature of an investment in the Company and the risks associated with such an investment?

 

Yes  ̈
No  ̈

 

		3.	Do you understand that there is no guarantee of any financial return on this investment and that you run
the risk of losing your entire investment?

 

Yes  ̈
No  ̈

 

		4.	Are you purchasing these securities for investment and not with the intent to resell them?

 

Yes  ̈
No  ̈

 

		5.	You have the right, will be afforded an opportunity, and are encouraged to investigate the Company and
review relevant records and documents pertaining to the Company and its business and to ask questions, and receive answers, of a qualified
representative of the Company regarding this investment and the operations and method of doing business of the Company.

 

Have you conducted
any such investigation, sought such documents or asked questions of a qualified representative of the Company regarding this investment
and the operations and methods of doing business of the Company?

 

Yes  ̈
No  ̈

 

PART IIIACCREDITED INVESTOR STATUS

 

I HEREBY ACKNOWLEDGE that the
representations contained in this Part III are made for the purpose of qualifying me/the entity as an “Accredited Investor”
as that term is defined in Regulation D under the Securities Act of 1933, as amended. I hereby represent that the statement or statements
initialed or checked below are true and correct in all respects. I understand that a false representation may constitute a violation of
law and that any person, including the Company or its directors or officers, who suffers damages as a result of a false representation
may have a claim against me for damages.

 

 

 

    	 	A-3	 

     

    

 

For INDIVIDUAL Investors

 

Note: Please complete Question 1 below if the
investor is an individual.

 

		1.	The undersigned individual represents and warrants that he/she is an Accredited Investor because (check
each that applies):

 

		 ̈	(a)I have an individual net worth, or joint net worth with my spouse, which exceeds $1,000,000. For
purposes of this Part III of the Investor Questionnaire, “net worth” means the excess of total assets at fair market value
(including personal and real property, but excluding the estimated fair market value of a natural person’s primary residence)
over total liabilities. Total liabilities excludes any mortgage on the primary residence in an amount of up to the residence’s estimated
fair market value as long as the mortgage was incurred more than 60 days before the Securities are purchased, but includes (i) any mortgage
amount in excess of the residence’s fair market value and (ii) any mortgage amount that was borrowed during the 60-day period before
the closing date for the sale of Securities for the purpose of investing in the Securities.

 

		 ̈	(b)I had individual income (exclusive of any income attributable to my spouse) of more than $200,000
in each of the two most recent calendar years, and I reasonably expect to have individual income in excess of $200,000 in the current
calendar year. For purposes of this Part III of the Investor Questionnaire, “individual income” means adjusted gross income,
as reported for Federal income tax purposes, less any income attributable to a spouse or to property owned by a spouse.

 

		 ̈	(c)My spouse and I had joint income of more than $300,000 in each of the two most recent calendar
years, and we reasonably expect to have joint income in excess of $300,000 in the current calendar year.

 

		 ̈	(d)I am a director or executive officer of the Company. For purposes of this Item III of the Investor
Questionnaire, “executive officer” means the president, any vice president in charge of a principal business unit, division
or function (such as sales, administration or finance), or any other person who performs a policymaking function, or person who performs
similar policymaking functions for the Company.

 

For ENTITY Investors

 

Note: Please complete Questions 2-3 below if
the investor is an entity.

 

		2.	The undersigned entity represents and warrants that it is an Accredited Investor because it is (check
each that applies):

 

		 ̈	(a)A bank, as defined in Section 3(a)(2) of the Securities Act of 1933, as amended (the “1933
Act”).

 

		 ̈	(b)A savings and loan association or other institution, as defined in Section 3(a)(5)(A) of the 1933
Act.

 

		 ̈	(c)A broker or dealer registered under the Section 15 of the Securities Exchange Act of 1934, as amended
(the “1934 Act”).

 

		

                                                        ̈
	(d)An insurance company, as defined in Section 2(a)(13) of the 1933 Act.

 

 

 

    	 	A-4	 

     

    

 

		 ̈	(e)An investment company registered under the Investment Company Act of 1940, as amended (the “1940
Act”), or a business development company as defined in Section 2(a)(48) of the 1940 Act.

 

		 ̈	(f)A Small Business Investment Company licensed by the U.S. Small Business Administration under Section
301(c) or (d) of the Small Business Investment Act of 1958.

 

		 ̈	(g)A plan established and maintained by a state, its political subdivisions, or any agency or instrumentality
of a state or its political subdivisions, for the benefit of its employees, that has total assets in excess of $5,000,000.

 

		 ̈	(h)An employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974
(“ERISA”), and either (i) investment decisions are made by a plan fiduciary, as defined in Section 3(21) of ERISA,
which is either a bank, insurance company, or registered investment adviser, (ii) the employee benefit plan has total assets in excess
of $5,000,000, or (iii) if a self-directed plan, investment decisions are made solely by persons that qualify as accredited investors
either under this paragraph 2 or paragraph 1.

 

		 ̈	(i)A private business development company, as defined in Section 202(a)(22) of the Investment Advisers
Act of 1940.

 

		 ̈	(j)Any organization described in section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts
or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets
in excess of $5,000,000.

 

		 ̈	(k)A trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring
the securities offered, and whose purchase is directed by a person who has such knowledge and experience in financial and business matters
that he or she is capable of evaluating the merits and risks of purchasing the shares.

 

		 ̈	(l)An entity in which all of the equity owners individually qualify as Accredited Investors.
NOTE: If this box is checked each equity owner must complete a separate Investor Questionnaire as an individual.

 

		3.	Please mark either (a) or (b) with an “X.”

 

		_____	(a)The undersigned was not organized or reorganized for the purpose of acquiring the securities offered
and has total assets in excess of $5,000,000; or

 

		_____	(b)If the undersigned was organized or reorganized for the purpose of acquiring the securities offered,
or the entity does not have total assets in excess of $5,000,000, the number of stockholders, partners, members or other owners, direct
or indirect, of the undersigned is and all such stockholders, members, partners or other equity owners qualify as Accredited Investors,
either under Part III(1) or III(2). If the undersigned has marked this paragraph, please fill in the blank.

 

 

 

    	 	A-5	 

     

    

 

PART IVNON-FOREIGN STATUS

 

		(a)	The undersigned is a United States citizen and is not a nonresident alien for purposes of income taxation
(as such term is defined in the Internal Revenue Code of 1986, as amended).

 

_____ True_____ False

 

		(b)	The undersigned is not a foreign corporation, foreign company, foreign trust or foreign estate (as such
term is defined in the Internal Revenue Code of 1986, as amended).

 

_____ True_____ False

 

Note: If at any time any statement
in this Part IV shall no longer be true, the undersigned shall promptly notify the Company. The undersigned understands that the information
contained in this Part IV may be disclosed to the Internal Revenue Service by the Company and that any false statement contained in this
Part IV could be punished by fine, imprisonment or both.

 

PART VFOR NON-U.S. PERSONS

 

Note: Please indicate with
an “X” each of the following statements, to the extent that they are correct, in order to permit the Company to determine
if the investor qualifies as a non-U.S. Person as that term is defined in Appendix A attached hereto and in Rule 902 of Regulation S promulgated
under the Securities Act of 1933, as amended.

 

		(a)	The undersigned is a non-U.S. Person (as that term is defined in Appendix A attached hereto).

 

_____ True_____ False

 

i.                 
Country of Residence or Organization/Incorporation _____________________

 

		(b)	The undersigned is not purchasing securities of the Company for the account or benefit of any U.S. person as that term is defined
in Appendix A attached hereto and in Rule 902 of Regulation S promulgated under the Securities Act of 1933, as amended.

 

_____ True_____ False

 

		(c)	The undersigned agrees to resell any of the Company’s securities in accordance with Regulation S, pursuant to a registration
statement or other exemption under the Securities Act.

 

_____ True_____ False

 

		(d)	The undersigned agrees to not conduct a hedging transaction involving any of the Company’s securities, unless in compliance
with the securities laws.

 

_____ True_____ False

 

 

 

    	 	A-6	 

     

    

 

PART VIMISCELLANEOUS MATTERS

 

No part of the funds used by the undersigned
to satisfy his, her or its investment constitutes or will constitute assets of any “employee benefit plan” within the meaning
of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended, or other “benefit plan investor” (as defined
in U.S. Department of Labor Reg. Section 2510.3-101 et seq, as amended) or assets allocated to any insurance company separate account
or general account in which any such employee benefit plan or benefit plan investor (or related trust) has any interest.

 

_____ True_____ False

 

 

 

 

[Remainder of page intentionally left blank]

  

[Signatures on following page]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	A-7	 

     

    

 

SIGNATURE PAGE

  

The undersigned hereby certifies, represents and
warrants that all of the answers, statements and information set forth in this Investor Questionnaire are true and correct on the date
hereof and will be true and correct as of the date, if any, the Subscription Agreement with which this Investor Questionnaire is associated
is accepted by the Company. The undersigned hereby agrees to provide such additional information as requested by the Company.

Dated: April 26, 2022

 

 

 

 

 

	 	CLS Therapeutics Ltd
	 	 	 
	 	Signature:	 
	 	Name:	 
	 	Title:	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

Appendix A

 

U.S. person.

 

		1.	“U.S. person” means:

 

		a.	Any natural person resident in the United States;

 

		b.	Any partnership or corporation organized or incorporated under the laws of the United States;

 

		c.	Any estate of which any executor or administrator is a U.S. person;

 

		d.	Any trust of which any trustee is a U.S. person;

 

		e.	Any agency or branch of a foreign entity located in the United States;

 

		f.	Any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other
fiduciary for the benefit or account of a U.S. person;

 

		g.	Any discretionary account or similar account (other than an estate or trust) held by a dealer or other
fiduciary organized, incorporated, or (if an individual) resident in the United States; and

 

		h.	Any partnership or corporation if:

 

		1.	Organized or incorporated under the laws of any foreign jurisdiction; and

 

		2.	Formed by a U.S. person principally for the purpose of investing in securities not registered under the
Securities Act of 1933, as amended, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a))
who are not natural persons, estates or trusts.

 

		2.	The following are not “U.S. persons”:

 

		a.	Any discretionary account or similar account (other than an estate or trust) held for the benefit or account
of a non-U.S. person by a dealer or other professional fiduciary organized, incorporated, or (if an individual) resident in the United
States;

 

		b.	Any estate of which any professional fiduciary acting as executor or administrator is a U.S. person if:

 

		1.	An executor or administrator of the estate who is not a U.S. person has sole or shared investment discretion
with respect to the assets of the estate; and

 

 

 

    	 	 	 

     

    

 

		2.	The estate is governed by foreign law;

 

		c.	Any trust of which any professional fiduciary acting as trustee is a U.S. person, if a trustee who is
not a U.S. person has sole or shared investment discretion with respect to the trust assets, and no beneficiary of the trust (and no settlor
if the trust is revocable) is a U.S. person;

 

		d.	An employee benefit plan established and administered in accordance with the law of a country other than
the United States and customary practices and documentation of such country;

 

		e.	Any agency or branch of a U.S. person located outside the United States if:

 

		1.	The agency or branch operates for valid business reasons; and

 

		2.	The agency or branch is engaged in the business of insurance or banking and is subject to substantive
insurance or banking regulation, respectively, in the jurisdiction where located; and

 

		f.	The International Monetary Fund, the International Bank for Reconstruction and Development, the Inter-American
Development Bank, the Asian Development Bank, the African Development Bank, the United Nations, and their agencies, affiliates and pension
plans, and any other similar international organizations, their agencies, affiliates and pension plans.

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