Document:

Exhibit 10.46

 

EXCHANGE AGREEMENT

 

This Exchange Agreement
(this “Agreement”), dated as of [__], is made by and among MassRoots, Inc., a Delaware corporation (the “Company”),
and [_____] as the holder of the Exchange Securities (as defined below) (the “Holder”).

 

WHEREAS, the Company desires
to enter into exchange agreements, similar in form to this Agreement, with holders of certain securities of the Company, pursuant to which
such holders shall exchange their securities of the Company pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended (the
“Securities Act”), for shares of the Company’s Series Y Convertible Preferred Stock (the “Series Y”),
convertible upon an increase to the Company’s authorized shares of common stock (the “Authorized Shares”) into
the Company’s common stock, par value $0.001 per share (the “Common Stock”), with such designations, rights,
preferences, limitations and restrictions as set forth in the Certificate of Designation contained in Exhibit A attached hereto
(the “Certificate of Designation”);

 

WHEREAS, the Holder holds
certain securities of the Company as more specifically set forth on Schedule A attached hereto (the “Exchange Securities”);
and

 

WHEREAS, subject to the
terms and conditions set forth in this Agreement and pursuant to Section 3(a)(9) of the Securities Act, the Company desires to exchange
with the Holder, and the Holder desires to exchange with the Company, the Exchange Securities for the number of shares of Series Y set
forth on Schedule B hereto.

 

NOW, THEREFORE, in consideration
of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are
hereby acknowledged, the Company and the Holder agree as follows:

 

1. Terms of the
Exchange. The Company and the Holder agree that the Holder will exchange the Exchange Securities held by the Holder and will relinquish
any and all other rights it may have under the Exchange Securities in exchange for the Series Y.

 

2. Closing.

 

 a. General. Upon
the satisfaction or waiver of the conditions set forth herein, a closing shall occur at the principal offices of the Company, or such
other location as the parties shall mutually agree. At the closing, the Company shall deliver to the Holder the Series Y. Upon the closing,
any and all obligations of the Company to Holder under the Exchange Securities shall be fully satisfied, the certificates and/or warrants
evidencing the Exchange Securities shall be cancelled and the Holder will have no remaining rights, powers, privileges, remedies or interests
under the Exchange Securities. On the closing date, the parties hereto shall execute, and the Company shall cause its transfer agent to
execute, the form of reserve letter attached as Exhibit B.

 

 b. Conditions to
Closing. The following shall be conditions precedent to the closing: (i) the Company shall have filed the Certificate of Designation
with the Secretary of State of Delaware, and (ii) the parties shall have executed this Agreement and the Exchange Securities shall be
null and void.

 

3. Further Assurances.
Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent
and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby, including voting for an increase
in the Authorized Shares.

 

     

     

    

 

4. Representations
and Warranties of the Holder. The Holder represents and warrants as of the date hereof and as of the closing to the Company as follows:

 

a. Authorization; Enforcement.
The Holder has the requisite power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise
to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement by the Holder and the consummation
by it of the transactions contemplated hereby have been duly authorized by all necessary action on the part of the Holder and no further
action is required by the Holder. This Agreement has been (or upon delivery will have been) duly executed by the Holder and, when delivered
in accordance with the terms hereof, will constitute the valid and binding obligation of the Holder enforceable against the Holder 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.

 

b. Tax Advisors.
The Holder has reviewed with its own tax advisors the U.S. federal, state, local and foreign tax consequences of this investment and the
transactions contemplated by this Agreement. With respect to such matters, the Holder relied solely on such advisors and not on any statements
or representations of the Company or any of its agents, written or oral. The Holder understands that it (and not the Company) shall be
responsible for its own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.

 

c. Information Regarding
Holder. The Holder is an “accredited investor,” as such term is defined in Rule 501 of Regulation D promulgated by the
United States Securities and Exchange Commission (the “Commission”) under the Securities Act, is experienced in investments
and business matters, has made investments of a speculative nature and has purchased securities of companies in private placements in
the past and, with its representatives, has such knowledge and experience in financial, tax and other business matters as to enable the
Holder to utilize the information made available by the Company to evaluate the merits and risks of and to make an informed investment
decision with respect to the proposed purchase, which represents a speculative investment. The Holder has the authority and is duly and
legally qualified to purchase and hold the Series Y. The Holder is able to bear the risk of such investment for an indefinite period and
to afford a complete loss thereof.

 

d. Legend. The Holder
understands that the Series Y and the Underlying Shares (as defined herein) will be issued pursuant to an exemption from registration
or qualification under the Securities Act and applicable state securities laws, and except as set forth below, the Series Y and the Underlying
Shares shall bear any legend as required by the “blue sky” laws of any state and a restrictive legend in substantially the
following form (and a stop-transfer order may be placed against transfer of such stock certificates):

 

THESE SECURITIES [AND THE SECURITIES ISSUABLE
UPON THEIR CONVERSION] HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY
NOT BE TRANSFERRED UNLESS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, A “NO-ACTION” LETTER FROM
THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION WITH RESPECT TO SUCH TRANSFER, A TRANSFER MEETING THE REQUIREMENTS OF RULE 144 OF
THE COMMISSION, OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY SUCH TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

 

e. Removal of Legends.
Certificates evidencing shares of Series Y and shares of Common Stock issuable upon the conversion of the Series Y (the “Underlying
Shares”) shall not be required to contain the legend set forth in Section 4(d) above or any other legend (i) while a
registration statement covering the resale of such securities is effective under the Securities Act, (ii) following any sale of such shares
pursuant to Rule 144 (as defined below), assuming the transferor is not an affiliate of the Company, (iii) if such shares are eligible
to be sold, assigned or transferred under Rule 144 and the Holder is not an affiliate of the Company (provided that the Holder provides
the Company with reasonable assurances that such shares are eligible for sale, assignment or transfer under Rule 144 which shall include
an opinion of the Holder’s counsel), (iv) in connection with a sale, assignment or other transfer (other than under Rule 144), provided
that the Holder provides the Company with an opinion of counsel to the Holder, in a generally acceptable form, to the effect that such
sale, assignment or transfer of the shares may be made without registration under the applicable requirements of the Securities Act or
(v) if such legend is not required under applicable requirements of the Securities Act (including, without limitation, controlling judicial
interpretations and pronouncements issued by the Commission).

 

    2

     

    

 

f. Restricted Securities.
The Holder understands that: (i) the Series Y and the Underlying Shares have not been and are not being registered under the Securities
Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder,
(B) the Holder shall have delivered to the Company (if requested by the Company) an opinion of counsel to the Holder, in a form reasonably
acceptable to the Company, to the effect that such Series Y or the Underlying Shares, as applicable, to be sold, assigned or transferred
may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) the Holder provides the Company with reasonable
assurance that such Series Y or the Underlying Shares, as applicable can be sold, assigned or transferred pursuant to Rule 144 or Rule
144A promulgated under the Securities Act (or a successor rule thereto) (collectively, “Rule 144”); and (ii) any sale
of the Series Y or Underlying Shares, as applicable, made in reliance on Rule 144 may be made only in accordance with the terms of Rule
144, and further, if Rule 144 is not applicable, any resale of the Series Y or Underlying Shares, as applicable, under circumstances in
which the seller (or the Person (as defined herein) 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
of the Commission promulgated thereunder.

 

g. Limitations on Conversion.
The Holder understands that the Series Y shall not be convertible into Common Stock for any reason until the increase to the Authorized
Shares is effected.

 

5. Representations
and Warranties of the Company. The Company hereby makes the following representations and warranties to the Holder:

 

a. Authorization; Enforcement.
The Company has the requisite corporate power and authority to enter into this Agreement and, following the increase to the Authorized
Shares in accordance with subsection d. below, to consummate the transactions contemplated by this Agreement, the Certificate of Designation,
and each of the other agreements entered into by the parties hereto in connection with the transactions contemplated by this Agreement
(collectively, the “Exchange Documents”), and otherwise to carry out its obligations hereunder and thereunder. The
execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly
authorized by all necessary action on the part of the Company and, with the exception of the increase to the Authorized Shares, no further
action is required by the Company, the board of directors of the Company or the Company’s stockholders in connection therewith,
including, without limitation, the issuance of the Series Y and the Underlying Shares have been duly authorized by the Company’s
board of directors and, with the exception of the increase to the Authorized Shares, no further filing, consent, or authorization is required
by the Company, its board of directors or its stockholders. This Agreement has been (or upon delivery will have been) duly executed by
the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except: (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.

 

b. Organization and
Qualification. Each of the Company and its subsidiaries (the “Subsidiaries”) are entities duly organized and validly
existing and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authorization
to own their properties and to carry on their business as now being conducted and as presently proposed to be conducted. Each of the Company
and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which
its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that
the failure to be so qualified or be in good standing would not have a Material Adverse Effect. As used in this Agreement, “Material
Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities, operations (including
results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary, individually or taken as a whole,
(ii) the transactions contemplated hereby or in any of the other Exchange Documents or (iii) the authority or ability of the Company to
perform any of its obligations under any of the Exchange Documents. Other than its Subsidiaries, there is no Person in which the Company,
directly or indirectly, owns capital stock or holds an equity or similar interest. “Person” means an individual, a
limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and
any governmental entity or any department or agency thereof.

 

    3

     

    

 

c. No Conflict.
The execution, delivery and performance of the Exchange Documents by the Company and the consummation by the Company of the transactions
contemplated hereby and thereby (including, without limitation, the issuance of the Series Y) will not, following an increase to the Authorized
Shares in accordance with subsection d. below, (i) result in a violation of the Company’s certificate of incorporation or other
organizational documents of the Company or any of its Subsidiaries, any capital stock of the Company or any of its Subsidiaries or bylaws
of the Company or any of its Subsidiaries, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time
or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement,
indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation,
order, judgment or decree (including foreign, federal and state securities laws and regulations and the rules and regulations of The OTC
Markets Group (the “Principal Market”) applicable to the Company or any of its Subsidiaries or by which any property
or asset of the Company or any of its Subsidiaries is bound or affected except, in the case of clause (ii) or (iii) above, to the extent
such violations that could not reasonably be expected to have a Material Adverse Effect.

 d. No Consents. With the exception of the consent of the holders of a majority of the Company’s outstanding voting
power (the “Majority Consent”) to amend the Company’s Second Amended and Restated Certificate of Incorporation
(the “Certificate of Incorporation”) to increase the Authorized Shares, neither the Company nor any Subsidiary is required
to obtain any consent from, authorization or order of, or make any filing or registration with, any court, governmental agency or any
regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its respective obligations
under or contemplated by the Exchange Documents, in each case, in accordance with the terms hereof or thereof. All consents, authorizations,
orders, filings and registrations which the Company or any Subsidiary is required to obtain pursuant to the preceding sentence have been
obtained or effected on or prior to the date of this Agreement, with the exception of the Majority Consent, and neither the Company nor
any of its Subsidiaries is aware of any facts or circumstances which might prevent the Company or any of its Subsidiaries from obtaining
or effecting any of the registration, application or filings contemplated by the Exchange Documents. The Company is not in violation of
the requirements of the Principal Market and has no knowledge of any facts or circumstances which could reasonably lead to delisting or
suspension of the Common Stock in the foreseeable future.

 

e. Securities Law Exemptions.
Assuming the accuracy of the representations and warranties of the Holder contained herein, the offer and issuance by the Company of the
Series Y is exempt from registration under the Securities Act pursuant to the exemption provided by Section 3(a)(9) thereof. The Company
covenants and represents to the Holder that neither the Company nor any of its Subsidiaries has received, anticipates receiving, has any
agreement to receive or has been given any promise to receive any consideration from the Holder or any other Person in connection with
the transactions contemplated by the Exchange Documents.

 

f. Issuance of the Series
Y. The issuance of the Series Y is duly authorized by the Company. The issuance of the Underlying Shares upon conversion of the Series
Y is duly authorized and, when issued in accordance with the Series Y, will be duly and validly issued, fully paid and non-assessable,
free from all taxes, liens, charges and other encumbrances imposed by the Company other than restrictions on transfer provided for in
such documents.

 

g. Increase of Authorized
Shares. Within 45 days of the initial issuance of the Series Y, the Company shall file with the Commission a preliminary proxy statement
(the “Original Filing”) in accordance with Regulation 14A promulgated under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) notifying the Company’s stockholders of a special meeting to amend the Company’s
Certificate of Incorporation to increase the number of Authorized Shares from 510,000,000 shares to 960,000,000 shares. The Company shall
use its commercially reasonable efforts file any amendment to the Original Filing, if required, within 5 Business Days following the receipt
of comments from the Commission to the Original Filing, and shall use its commercially reasonable efforts to file a definitive proxy statement
within 2 Business Days following the Commission’s notification that it has no further comments to the Original Filing, as it may
have been amended. “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks
in New York City are authorized or required by law to remain closed. The Company shall have the definitive proxy statement sent to its
stockholders within three Business Days following its filing with the Commission and shall use its commercially reasonable efforts to
take all actions to cause the increase in its Authorized Shares as soon as reasonably practicable thereafter.

 

    4

     

    

 

h. Equity Capitalization.
Except as disclosed in the SEC Reports (as defined below), or pursuant to the Exchange Documents: (i) none of the Company’s or any
Subsidiary’s capital stock is subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or
permitted by the Company or any Subsidiary; (ii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments
of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock
of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its
Subsidiaries is or may become bound to issue additional capital stock of the Company or any of its Subsidiaries or options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into,
or exercisable or exchangeable for, any capital stock of the Company or any of its Subsidiaries; (iii) there are no outstanding debt securities,
notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing indebtedness of the Company
or any of its Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound; (iv) there are no financing statements
securing obligations in any amounts filed in connection with the Company or any of its Subsidiaries; (v) there are no agreements or arrangements
under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the Securities Act;
(vi) there are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar
provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is
or may become bound to redeem a security of the Company or any of its Subsidiaries; (vii) there are no securities or instruments containing
anti-dilution or similar provisions that will be triggered by the issuance of the Series Y; (viii) neither the Company nor any Subsidiary
has any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; and (ix) neither
the Company nor any of its Subsidiaries have any liabilities or obligations required to be disclosed in the Company’s filings with
the Commission which are not so disclosed in such documents, other than those incurred in the ordinary course of the Company’s or
its Subsidiaries’ respective businesses and which, individually or in the aggregate, do not or could not have a Material Adverse
Effect. “SEC Reports” shall mean all reports, schedules, forms, statements and other documents filed by the Company
under the Securities Act and the Exchange Act, including the exhibits thereto and documents incorporated by reference therein.

 

i. Shell Company Status.
The Company is not, and has never been, an issuer identified in, or subject to, Rule 144(i) of the Securities Act.

 

6. Additional Acknowledgments.
The Holder and the Company confirm that the Company has not received any consideration for the transactions contemplated by this Agreement.
Pursuant to Rule 144 promulgated by the Commission pursuant to the Securities Act and the rules and regulations promulgated thereunder
as such Rule 144 may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially
the same effect as such Rule 144, the holding period of the Series Y (and Underlying Shares) tacks back to the issue date of the Exchange
Securities. The Company hereby confirms that the Holder currently is not and will not be upon closing of this Agreement (individually
or together as a group) deemed an “affiliate” as defined in Rule 144. The Company agrees not to take a position contrary to
this paragraph.

 

7. Release by Holder.
In consideration of the foregoing, the Holder releases and discharges Company, Company’s officers, directors, principals, control
persons, past and present employees, insurers, successors, and assigns (“Company Parties”) from all actions, cause
of action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements,
promises, variances, trespasses, damages, judgments, extents, executions, claims, and demands whatsoever, in law, admiralty or equity,
which against Company Parties ever had, now have or hereafter can, shall or may, have for, upon, or by reason of any matter, cause or
thing whatsoever, whether or not known or unknown, arising under the Exchange Securities. It being understood that this Section 7
shall be limited in all respects to only matters arising under or related to the Exchange Securities and shall under no circumstances
constitute a release, waiver or discharge with respect to the Series Y or any Exchange Documents or limit the Holder from taking action
for matters with respect to the Series Y or any Exchange Document or events that may arise in the future.

 

    5

     

    

 

8. Disclosure. Upon
receipt or delivery by the Company of any notice in accordance with the terms of this Agreement, unless the Company has in good faith
determined that the matters relating to such notice do not constitute material, non-public information relating to the Company or any
of its Subsidiaries, the Company shall within one (1) Trading Day after any such receipt or delivery publicly disclose such material,
non-public information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that a notice contains material,
non-public information relating to the Company or any of its Subsidiaries, the Company so shall indicate to such Holder contemporaneously
with delivery of such notice, and in the absence of any such indication, such Holder shall be allowed to presume that all matters relating
to such notice do not constitute material, non-public information relating to the Company or any of its Subsidiaries. If the Company or
any of its Subsidiaries provides material non-public information to a Holder that is not simultaneously filed in a Current Report on Form
8-K and such Holder has not agreed to receive such material non-public information, the Company hereby covenants and agrees that such
Holder shall not have any duty of confidentiality to the Company, any of its Subsidiaries or any of their respective officers, directors,
employees, affiliates or agents with respect to, or a duty to any of the foregoing not to trade on the basis of, such material non-public
information. Nothing contained in this Section 8 shall limit any obligations of the Company, or any rights of any Holder, under
the Exchange Documents. “Trading Day” means any day on which the Common Stock is eligible to be traded on the Principal
Market or securities market on which the Common Stock is then traded, provided that “Trading Day” shall not include any day
on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is
suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in
advance the closing time of trading on such exchange or market, then during the hour ending at 4:00 p.m., Eastern time) unless such day
is otherwise designated as a Trading Day in writing by the Holder.

 

9. Miscellaneous.

 

a. Successors and Assigns.
This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.

 

b. Governing Law; Jurisdiction;
Waiver of Jury Trial. This Agreement shall be governed by and construed under the laws of the State of New York, without regard to
the choice of law principles thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in the State of New York, City of New York for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby, and hereby irrevocably waives any objection that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any
right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST,
A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

 

c. Severability.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any
provision of this Agreement in any other jurisdiction.

 

d. Counterparts/Execution.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature
is delivered by facsimile transmission or by an e-mail which contains an electronic file of an executed signature page, such signature
page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or electronic file signature page (as the case may be) were an original thereof.

 

e. Notices. Any
notice or communication permitted or required hereunder shall be in writing and shall be deemed sufficiently given if hand-delivered or
sent (i) postage prepaid by registered mail, return receipt requested, or (ii) by email, to the respective parties as set forth below,
or to such other address as either party may notify the other in writing.

 

If to the Company, to: 

 

MassRoots, Inc.

1560 Broadway, Office 17-105

Denver, CO 80202

Attn: Isaac Dietrich

Email: isaacdietrich@gmail.com

 

    6

     

    

 

With a copy to (which shall
not constitute notice): 

 

Mitchell Silberberg & Knupp
LLP

437 Madison Avenue, 25th
Floor

New York, NY 10022

Attn: Andrea Cataneo, Esq.

Email: ajc@msk.com

 

If to the Holder, to the address
set forth on the signature page of the Holder.

 

f. Expenses. Each
party shall pay its own legal fees and expenses in connection with this Agreement and the transactions contemplated hereby.

 

g. Entire Agreement;
Amendments. This Agreement constitutes the entire agreement between the parties with regard to the subject matter hereof and thereof,
superseding all prior agreements or understandings, whether written or oral, between the parties. This Agreement may be amended, modified,
superseded, cancelled, renewed or extended, and the terms and conditions hereof may be waived, only by a written instrument signed by
all parties, or, in the case of a waiver, by the party waiving compliance. Except as expressly stated herein, no delay on the part of
any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of
any party of any right, power or privilege hereunder preclude any other or future exercise of any other right, power or privilege hereunder.

 

h. Headings. The
headings used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

i. Pledge of Series
Y. The Company acknowledges and agrees that the Series Y may be pledged by the Holder in connection with a bona fide margin agreement
or other loan or financing arrangement that is secured by the Series Y. The pledge of the Series Y shall not be deemed to be a transfer,
sale or assignment of the Series Y hereunder, and if the Holder effects a pledge of the Series Y it shall not be required to provide the
Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement. The Company hereby agrees to
execute and deliver such documentation as a pledgee of the Series Y may reasonably request in connection with a pledge of the Series Y
to such pledgee by the Holder.

 

k. No Change in Transfer
Agent. From the date of the closing until such time as there are no Series Y outstanding, the Company covenants and agrees that it
shall not change its transfer agent.

 

[SIGNATURE PAGE FOLLOW]

 

    7

     

    

 

IN WITNESS WHEREOF, the parties have caused this
Agreement to be duly executed as of the day and year first above written.

 

	 	MASSROOTS, INC.
	 	 	 
	 	By:	               
	 	Name:	 
	 	Title:	 
	 	 	 
	 	HOLDER 
	 	 	 
	 	By:	 
	 	Name: 	 
	 	Title: 	 
	 	Email:	 
	 	Address:	 

 

    8

     

    

 

SCHEDULE A

Exchange Securities 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

SCHEDULE B

Series Y Shares 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

EXHIBIT A

Certificate of Designation of Series Y

 

[Attached]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

EXHIBIT B

Reserve Letter

 

[Attached]EX-10.1

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

 Exhibit 10.1 

DATED    1st OCTOBER 2019 
  

			
	
	             SYNCONA IP HOLDCO
LIMITED                  (1)

(“Syncona”)

		
	and	  	
	
	         GYROSCOPE THERAPEUTICS
LIMITED        (2)
 (“Licensee”)

 

  

 
  

			
	
	 EXCLUSIVE PATENT

LICENCE AGREEMENT

  
  

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

 Contents 

 

							
	 1
	 	Definitions and Interpretations	  	 	1	 
	 1.1
	 	Definitions	  	 	1	 
	 1.2
	 	Interpretation	  	 	3	 
	 1.3
	 	Schedules	  	 	4	 
	 2
	 	Grant of rights	  	 	4	 
	 2.1
	 	Licences	  	 	4	 
	 2.2
	 	Formal licences	  	 	4	 
	 2.3
	 	Sub-licensing	  	 	4	 
	 3
	 	Confidentiality	  	 	5	 
	 3.1
	 	Confidentiality	  	 	5	 
	 3.2
	 	Use of Confidential Information	  	 	5	 
	 3.3
	 	Disclosing Confidential Information	  	 	5	 
	 3.4
	 	Exceptions to confidentiality obligations	  	 	5	 
	 3.5
	 	Return of Confidential Information and survival of confidentiality obligations	  	 	6	 
	 3.6
	 	Relationship with Clause 18 of the SSA	  	 	6	 
	 4
	 	Payments	  	 	6	 
	 4.1
	 	Initial payment and reimbursement of patent costs	  	 	6	 
	 4.2
	 	Net Sales Value Reporting	  	 	6	 
	 4.3
	 	Royalties on Royalty Products (including those sold by Sub-Licensees)	  	 	6	 
	 4.4
	 	Royalty Stacking	  	 	7	 
	 4.5
	 	Payment terms	  	 	7	 
	 4.6
	 	Equity	  	 	8	 
	 4.7
	 	Financial Reports	  	 	8	 
	 4.8
	 	Records	  	 	8	 
	 5
	 	Commercialisation obligations	  	 	9	 
	 5.1
	 	Commercialisation	  	 	9	 
	 6
	 	Intellectual property	  	 	9	 

							
	 6.1
	 	Patent protection	  	 	9	 
	 6.2
	 	Infringement of the Patents	  	 	9	 
	 6.3
	 	Infringement of third party rights	  	 	10	 
	 7
	 	Warranties and liability	  	 	10	 
	 7.1
	 	Status of technology embodied in the Patent and responsibility for development of Licensed Products	  	 	10	 
	 7.2
	 	Syncona representations and warranties	  	 	10	 
	 7.3
	 	Liability and indemnity	  	 	11	 
	 8
	 	Duration and termination	  	 	12	 
	 8.1
	 	Term	  	 	12	 
	 8.2
	 	Early termination by the Licensee	  	 	12	 
	 8.3
	 	Early termination by either Party	  	 	12	 
	 8.4
	 	Consequences of termination	  	 	12	 
	 9
	 	General	  	 	13	 
	 9.1
	 	Force majeure	  	 	13	 
	 9.2
	 	Assignment	  	 	14	 
	 9.3
	 	Waiver	  	 	14	 
	 9.4
	 	Invalid clauses	  	 	14	 
	 9.5
	 	No agency	  	 	14	 
	 9.6
	 	Notices	  	 	14	 
	 9.7
	 	Law and jurisdiction	  	 	15	 
	 9.8
	 	Further action	  	 	15	 
	 9.9
	 	Announcements	  	 	15	 
	 9.10
	 	Entire agreement	  	 	15	 
	 9.11
	 	Third party rights	  	 	15	 
	 9.12
	 	Insurance	  	 	15	 
	 9.13
	 	Legal Compliance	  	 	16	 
	 Schedule 1
	  	 	17	 
	 Part A:
	 	The Patent	  	 	18	 
	 Schedule 2
	  	 	18	 
	 Part A:
	 	Payment and Report Schedule	  	 	18	 
	 Part B:
	 	Financial Report Format	  	 	19	 

 
 

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

 THIS AGREEMENT dated 1st OCTOBER 2019 is between: 

 

	(1)	 SYNCONA IP HOLDCO LIMITED (“Syncona”), a company incorporated in England and Wales
(registered number [**]) whose registered address is at [**]; 

  

	and	 

  

	(2)	 GYROSCOPE THERAPEUTICS LIMITED (the “Licensee”) a company incorporated in England and
Wales (registered number [**]) whose registered office is at [**]. 

  

	RECITALS:	 

  

	(A)	 The Licensee wishes to have rights in relation to the Patents to enable the development and commercialisation
of Licensed Products in the Field and in the Territory. 

  

	(B)	 On 12 May 2016 Syncona Management LLP and the Licensee entered into an Exclusive Patent Licence Agreement
in relation to certain patents (comprising the Patents) on substantially the terms of this Agreement (the “Original Licence”). 

  

	(C)	 On 20 December 2016 Syncona Management LLP assigned to Syncona (i) the patent with UK Patent
Application Number [**] and (ii) the benefit of the Original Licence. 

  

	(D)	 On 13 April 2017 Syncona Management LLP assigned to Syncona Investment Management Limited the patent
application registered with number [**] and all right, title and interest in that patent including, without limitation all national and regional patent applications, and granted patents resulting therefrom, deriving from that patent, including
divisionals, continuations, continuations in part, provisional, converted provisionals, and continued prosecution applications. On 28 February 2019 Syncona Investment Management Limited assigned to Syncona all such rights.

  

	(E)	 On 2 May 2018 Syncona Management LLP was dissolved following liquidation. 

 

	(F)	 The Licensee and Syncona have agreed to enter into this Agreement to set out the terms of the rights of the
Licensee in relation to the Patents with the intention that this supersede the Original Licence. 

 IT IS AGREED as follows: 

 

	1	 Definitions and Interpretations 

 

	1.1	 Definitions 

In this Agreement, the following words shall have the following meanings: 
  

			
	Agreement	  	this document, including its Schedules
		
	Anniversary	  	an anniversary of the Commencement Date.
		
	Commencement Date	  	12 May 2016

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

			
	Competitive Product	  	means any product or therapy that is [**] to any Royalty Product, including any product or therapy that may be considered a [**] product or therapy or otherwise infringes any of the Patents.
		
	Confidential Information	  	the terms of this Agreement and any information marked confidential obtained directly or indirectly by one Party from the other Party, or otherwise designated confidential pursuant to the terms of this Agreement.
		
	Continuation in Part	  	 any continuation-in-part patent application provided

 
 (a)   it was filed within [**]
of the original application;
  

(b)   it only names one or more of the Inventors;

 
 (c)   the technology covered
was disclosed, claimed in and dominated by the original application; and
  

(d)   the technology is not affected by obligations to third parties (for example rights created in
a sponsored research or other collaboration agreement between the University and a third party).

		
	Exploit	  	means, in connection with any product, process or service, to make, have made, import, export, use, sell or offer for sale, including to research, experiment, develop, commercialise, obtain and maintain regulatory approvals,
manufacture, have manufactured, hold or keep (whether for disposal or otherwise), have used, export, transport, distribute, promote, market or have sold or otherwise dispose of.
		
	Field	  	all fields
		
	First Commercial Sale	  	means the first commercial sale by a Selling Entity of a Royalty Product in the US or the EU pursuant to the grant of a Marketing Authorisation.
		
	Inventor(s)	  	the inventor(s) named in the Patents.
		
	Licensed Product	  	any product, process or use which the Licensee or Sub-Licensees sells, supplies or makes available anywhere in the Territory (excluding to a
Sub-Licensee) and which uses or incorporates, or its development makes use of, any of the technology embodied in a Patent.
		
	Marketing Authorisation	  	means in relation to a Royalty Product, those approvals necessary and sufficient from one or more competent authorities for the marketing and sale of such Royalty Product.
		
	Net Sales Value	  	[**]

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

			
	Parties	  	Syncona and the Licensee, and “Party” shall mean either of them.
		
	Patents	  	(i) the patent (or, where more than one, all the patents) and the content of the patent application (or, where more than one, all the applications) referred to in Schedule 1 and (ii) all patents filed by the Licensee pursuant
to clause 6.1, and in each of cases (i) and (ii), together with any patents granted pursuant to such application or applications and any continuations, Continuations in Part, extensions, reissues, divisions, divisional applications and
supplementary protection certificates which derive priority from such application or applications.
		
	Payment Period	  	the payment periods specified in Schedule 2.
		
	Royalty	  	the royalty specified in clause 4.3
		
	Royalty Product	  	any Licensed Product that were it not for the licence granted, infringes any one or more Valid Claims of any of the Patents in the country in which it is sold.
		
	Royalty Term	  	means, on a country-by-country basis, the period commencing on the date of the First Commercial Sale in such country and ending on the date of expiry of
the last Valid Claim in the relevant country.
		
	Selling Entity	  	the Licensee or any Sub-Licensee.
		
	SSA	  	the Subscription and Shareholders’ Agreement entered into on 12 May 2016, and made between the Licensee, Syncona, the Chancellor, Masters and Scholars of the University of Cambridge, Cambridge Enterprise and certain
individuals relating to the subscription for shares in the Licensee.
		
	Sub-Licensee	  	any third party granted a sub-licence of the rights in clause 2.1 whether directly by the Licensee or through multiple levels of
sub-licensing.
		
	Term	  	the period specified in clause 8.1.
		
	Territory	  	Worldwide
		
	Valid Claim	  	a claim within (a) an issued/granted and unexpired patent; (b) a pending patent application which has not been pending for more than [**] from the date of the priority filing from which such pending application originates,
and in each case which has not been withdrawn, cancelled, abandoned, disclaimed or revoked or held unpatentable, invalid or unenforceable by final decision of a court or other governmental agency of competent jurisdiction, which decision is
unappealable or unappealed within the time allowed for appeal.

  

	1.2	 Interpretation 

In this Agreement (except where the context otherwise requires): 
  

	 	(a)	 any reference to a clause or schedule is to the relevant clause of or schedule to this Agreement and any
reference to a sub-clause or paragraph is to the relevant sub-clause or paragraph of the clause or schedule in which it appears; 

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

	 	(b)	 the clause headings are included for convenience only and shall not affect the interpretation of this
Agreement; 

  

	 	(c)	 any reference to ‘‘person” or “persons” includes natural persons, firms, partnerships,
companies, corporations, associations, organisations, governments, states, foundations and trusts (in each case whether or not having separate legal personality); 

 

	 	(d)	 the singular includes the plural and vice versa; and 

 

	 	(e)	 words preceding “include”, “includes”, “including” and “included” shall
be construed without limitation by the words which follow those words. 

  

	1.3	 Schedules 

The schedules form part of this Agreement If a provision of a schedule is inconsistent with a provision of this Agreement, the latter prevails.

  

	2	 Grant of rights 

 

	2.1	 Licences 

In consideration of the payments specified in clause 4, Syncona hereby grants to the Licensee subject to the provisions of this Agreement an
exclusive licence under the Patents (with the right to sub-license, subject to clause 2.3 below) to Exploit the Patents in the Field in the Territory. 

 

	2.2	 Formal licences 

The Parties shall execute such formal licences as may be necessary or appropriate for registration with Patent Offices and other relevant
authorities in particular territories. In the event of any conflict in meaning between any such licence and the provisions of this Agreement, the provisions of this Agreement shall prevail. Prior to the execution of formal licences (if any) referred
to in this clause, the Parties shall as far as possible have the same rights and obligations towards one another as if such licences had been granted. The Parties shall use reasonable endeavours to ensure that, to the extent permitted by relevant
authorities, this Agreement (or any commercially sensitive information comprised in this Agreement) shall not form part of any public record. 
  

	2.3	 Sub-licensing 

The Licensee shall be entitled to grant sub-licences of its rights under this Agreement (and to permit
multiple levels of sub-licensing by Sub-Licensees), provided that: 
  

	 	(a)	 each sub-licence shall 

 

	 	(I)	 include terms which are equivalent to the obligations and limitations imposed on the Licensee under this
Agreement (including insurance obligations, the limitation of the Indemnitees’ liability and an indemnity to the Indemnitees) 

  

	 	(II)	 not exclude the Contracts (Rights of Third Parties) Act 1999 in respect of any of the Indemnitees;

  

	 	(b)	 each sub-licence shall terminate automatically on the termination of
this Agreement for any reason, provided however that the Licensee may require Syncona, immediately upon termination, to grant each Sub-Licensee a new licence on terms identical with this Agreement. Syncona
shall not however be required to grant such a licence (i) to a Sub-Licensee whose breach has caused the termination by virtue of causing the Licensee to be in breach of this Agreement; or (ii) upon the expiry of this Agreement at the end
of its term. 

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

	 	(c)	 within [**] of the grant of any sub-licence the Licensee shall provide
to Syncona a true copy of it (provided, however, that the Licensee shall be entitled to redact any financial information from such a copy as required by the Sub-Licensee and, without limiting the
Licensee’s obligations under clauses 4.7 and 4.8, sensitive information); 

  

	 	(d)	 the Licensee shall be responsible for Sub-Licensees’ conduct and
any breach of a sub-licence as if it had been a breach by the Licensee under this Agreement; and 

  

	 	(e)	 for the avoidance of doubt, all Sub-Licensees shall be treated as sub-licensees of the Licensee for the purposes of this Agreement, whether the rights are granted directly by the Licensee or by any Sub-Licensee. 

 

	3	 Confidentiality 

 

	3.1	 Confidentiality 

No Confidential Information disclosed by one party (“Disclosing Party”) to the other party (“Recipient
Party”) under this Agreement may be disclosed by the Recipient Party to any person except: 
  

	 	(a)	 employees, officers, directors, auditors, or subcontractors of the Recipient Party requiring the Confidential
Information for the purposes of this Agreement; 

  

	 	(b)	 with the prior written consent of the Disclosing Party which consent may be given or withheld in its absolute
discretion; 

  

	 	(c)	 to actual or potential customers or sub-licensees for Licensed Products
in so far as such disclosure is necessary to promote the sale or use of Licensed Products; 

  

	 	(d)	 if the Recipient Party is advised it is required to do so by law (including the Freedom of Information Act 2000
or Environmental Information Regulations) or stock exchange: 

  

	 	(e)	 if the Recipient Party is required to do so in connection with legal proceedings relating to this Agreement.

  

	3.2	 Use of Confidential Information 

No Confidential Information of the Disclosing Party may be used by the Recipient Party for any purpose other than the performance of the
Recipient Party’s obligations or the exercise of the Recipient Party’s rights under this Agreement. 
  

	3.3	 Disclosing Confidential Information 

Any Party disclosing Confidential Information under clause 3.1(a), 3.1(b) or 3.1(c) must use all reasonable endeavours to ensure that persons
receiving Confidential Information from it 
  

	 	(a)	 do not disclose or use the Confidential Information except in the circumstances permitted in clauses 3.1 and
3.2 and 

  

	 	(b)	 sign a written confidentiality undertaking on terms as least as restrictive as that binding the Recipient
Party, 

  

	3.4	 Exceptions to confidentiality obligations 

 

	 	(a)	 Clauses 3.1, 3.2 and 3.3 do not apply to Confidential Information which: 

 

	 	(I)	 is in or becomes part of the public domain other than through breach of this Agreement or an obligation of
confidence owed to the Disclosing Party; 

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

	 	(II)	 the Recipient Party can prove by contemporaneous written documentation was already known to it at the time of
disclosure by the Disclosing Party (unless that knowledge arose from disclosure of information in breach of an obligation of confidence); 

  

	 	(III)	 is received by the Receiving Party without restriction on disclosure or use from a third party lawfully
entitled to make the disclosure without such restrictions; or 

  

	 	(IV)	 is developed by any of the Receiving Party’s directors, officers, employees, contractors and advisors who
have not had any direct or indirect access to, or use or knowledge of, the Confidential Information of the Disclosing Party. 

  

	3.5	 Return of Confidential Information and survival of confidentiality obligations

  

	 	(a)	 The Recipient Party must return promptly to the Disclosing Party if so requested all documents or other
materials containing or referring to Confidential Information which are in the Recipient Party’s possession, power or control or in the possession, power or control of persons who have received Confidential Information from the Recipient Party
under clause 3.1(a) 3.1(b) or 3.1(c). 

  

	 	(b)	 The provisions of clauses 3.2 to 3.5 inclusive will survive the expiry or earlier termination (for whatever
reason) of this Agreement for a period of [**]. 

  

	3.6	 Relationship with Clause 18 of the SSA 

The Parties acknowledge that the SSA also contains confidentiality provisions and agree that, in the event of any conflict between clause 3 of
this Agreement and clause 18 of the SSA, clause 18 of the SSA shall prevail. 
  

	4	 Payments 

  

	4.1	 Initial payment and reimbursement of patent costs 

The Parties acknowledge that the Licensee paid to Syncona Management LLP the sum of £[**] in reimbursement of external receipted costs in
connection with [**] prior to the Commencement Date. 
  

	4.2	 Net Sales Value Reporting 

The Licensee must report to Syncona in good faith all disposals of Royalty Products, including by its
Sub-Licensees, and report clearly where indirect or non-monetary consideration is accepted for any Royalty Product. 

 

	4.3	 Royalties on Royalty Products (including those sold by
Sub-Licensees) 

 The Licensee shall pay Syncona a royalty on each
Royalty Product or part of one at a rate of [**] of the Net Sales Value received by the Licensee or any Sub-Licensee. 

Royalties shall be payable on a Royalty Product-by-Royalty
Product and country-by-country basis until the end of the Royalty Term for the relevant Royalty Product and country. For the avoidance of doubt, no royalty shall be
payable for sales of any product in a country in which no Valid Claim subsists. In addition, the Parties agree that no royalty shall be payable by the Licensee for an adeno-associated virus Complement Factor I product that is delivered by peripheral
vein infusion (“Systemic AAV.CFI”). 

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

	4.4	 Royalty Stacking 

If during the Term, either: 
  

	 	(a)	 in order to avoid infringing any third party’s patent(s) by the use, development, manufacture, supply,
sale or making available of Royalty Products; or 

  

	 	(b)	 the Licensee or a Sub-Licensee
in-licences intellectual property, manufacturing technologies or materials which are reasonably required for the commercialisation or manufacture of a Royalty Product and/or deliver a therapy as a Royalty
Product, 

 and where the Licensee or a Sub-Licensee must pay consideration or
royalties in relation to such licence (“Third Party Licence”), the Royalties payable under Clause 4.3 of this Agreement shall be reduced [**] under the Third Party Licence(s) provided that the amount of Royalty payable by the
Licensee (whether on Licensee Net Sales Value or Sub-Licensee Net Sales Value) to Syncona shall not be reduced below [**] of the Net Sales Value. 

For the avoidance of doubt, Freeline Therapeutics Limited and [**] will each be considered a third party for the purposes of this royalty
stacking provision. This provision does not apply to patents developed by Licensee and subsequently assigned or licensed to third parties. 
  

	4.5	 Payment terms 

 

	 	(a)	 Payments shall be made in accordance with Schedule 2 Part A. 

 

	 	(b)	 The Licensee shall be responsible for collecting and paying to Syncona any Royalty payments due to Syncona in
respect of Sub-Licensees. 

  

	 	(c)	 All consideration and any other monies due under this Agreement are [**]. All payments shall.

  

	 	(I)	 be made in pounds sterling by telegraphic transfer to the account of Syncona notified to the Licensee by
Syncona in writing for this purpose from time to time; 

  

	 	(II)	 in the event of a change in the national currency of the United Kingdom, be converted from pounds sterling into
the new national currency of the United Kingdom at the buying rate of such new currency as quoted by [**] in London on the day when such currency change comes into force; 

 

	 	(III)	 in the case of monies received by the Licensee from sales or
sub-licensing in a currency other than pounds sterling, be calculated in the other currency and then converted into the national currency of the United Kingdom [**] of the Payment Period with respect to which
the payment is made; 

  

	 	(IV)	 be made by the due date, failing which Syncona may charge interest on any outstanding amount on a daily basis,
[**], from the day after the due date until payment [**]; and 

  

	 	(V)	 be made [**] of taxes, charges or duties, including bank charges or income tax. 

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

	4.6	 Equity 

  

	 	(a)	 The Parties acknowledge that on the Commencement Date the Licensee issued to Syncona LLP (at the direction of
Syncona Management LLP) a total of 750,000 of its ordinary B shares (the “Shares”) in the name of Syncona LLP and Syncona LLP paid the par value for the Shares at £0.00001 per share. 

 

	 	(b)	 The Licensee undertakes to Syncona that, at the Commencement Date, the Shares will represent not less than [**]
of Licensee’s issued share capital calculated on a “Fully Diluted Basis”. For purposes of this clause “Fully Diluted Basis” shall mean [**]. 

 

	4.7	 Financial Reports 

 

	 	(a)	 Financial Reports (including nil reports) are required as set out in Schedule 2 when the first sale of a
Royalty Product occurs, annually beforehand, and when a payment is made. 

  

	 	(b)	 [**] 

  

	 	(c)	 [**] 

  

	4.8	 Records 

  

	 	(a)	 The Licensee shall keep at its normal place of business and cause
Sub-Licensees similarly to keep all information used to calculate payments due to Syncona under this Agreement including detailed and up to date records and accounts showing the quantity, description and value
of Licensed Products sold by it, and its Sub-Licensees, on a country by country basis. The Licensee shall keep these records separate or otherwise make them extractable easily from its other business records
and shall not dispose of them until after the sixth anniversary of their creation. 

  

	 	(b)	 The Licensee shall make such information available, on reasonable notice, for audit during business hours by
Syncona staff or, as Syncona may decide, Syncona’s duly authorised representative for the purpose of verifying the accuracy of any report given by the Licensee to Syncona under this clause 4. Syncona shall be responsible for its
representative’s professional charges unless the representative certifies that there is a shortfall of more than [**] % in any financial statement, in which case the Licensee shall pay the charges in respect of that inspection. The Licensee
shall pay any underpayment identified by Syncona staff or its representative within [**] of receipt of Syncona’s invoice requiring payment for the same. 

  

	 	(c)	 The Licensee shall ensure that Syncona has the same rights as those set out in this clause 4.8 in any sub-licence of any of the Licensed Technology granted pursuant to this Agreement. 

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

	5	 Commercialisation obligations 

 

	5.1	 Commercialisation 

The Licensee shall use its commercially reasonable endeavours to develop a therapeutic product to deliver Complement Factors via sub-retinal injection of adeno-associated virus (AAV) and shall report annually on this effort. 
  

	6	 Intellectual property 

 

	6.1	 Patent protection 

The Licensee shall [**]: 
  

	 	(a)	 be responsible for the ongoing filing, prosecution and maintenance of the patent applications listed in
Schedule 1, and shall do so in its sole but reasonable discretion recognising the commercial value, advantage and monopoly achievable and attributable to the Patents; 

 

	 	(b)	 [**] in respect of the Patents as and when due; and 

 

	 	(c)	 ensure that Syncona receives copies of all material correspondence concerning each patent application listed in
Schedule 1. 

 Syncona shall grant the Licensee and its agents such powers of attorney and other permissions as the
Licensee may reasonably require in order to carry out the filing, prosecution and maintenance of patents and patent applications pursuant to this clause 6.1. 
  

	6.2	 Infringement of the Patents 

 

	 	(a)	 Each Party shall inform the other Party promptly if it becomes aware of any infringement or potential
infringement of any of the Patents in the Field. 

  

	 	(b)	 Subject to clause 6.2(c), the Licensee shall be entitled to take legal or other action against any third party
to enforce the Patents at its sole expense. 

 If required by law Syncona shall agree to be joined in any such legal action
(and may elect to take part in the proceedings) at the expense of the Licensee subject to being indemnified and secured in a reasonable manner as to any costs, damages, expenses or other liability. Syncona shall have the right to be separately
represented in any legal action by its own counsel at its own expense. 
  

	 	(c)	 Before starting legal action in accordance with sub-clause 6.2(b) or
agreeing to any settlement, the Licensee shall consult Syncona and take its views into account about the advisability of the action or settlement. Any monetary recovery from any legal or other action shall be dealt with as follows: [**]

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

	6.3	 Infringement of third party rights 

 

	 	(a)	 If any warning letter or other notice of infringement is received by a Party, or legal action is brought
against a Party, alleging infringement of third party rights in the manufacture, use or sale of any Licensed Product or use of any Patents, that Party shall promptly provide full details to the other Party, and the Parties shall discuss the best way
to respond. 

  

	 	(b)	 The Licensee shall have the right but not the obligation to defend such action and shall have the right to
settle with such third party, provided that if any action or proposed settlement involves the making of any statement, express or implied, concerning the validity of any Patent, the consent of Syncona must be obtained before taking such action or
making such settlement. 

  

	7	 Warranties and liability 

 

	7.1	 Status of technology embodied in the Patent and responsibility for development of Licensed
Products 

 The Parties acknowledge that the technology embodied in the Patent is at an early stage of development,
that it is provided “as is” and specific results cannot be guaranteed. The Licensee shall be exclusively responsible for the technical and commercial development and manufacture of Licensed Products and for incorporating any modifications
or developments thereto that may be necessary or desirable and for all Royalty Products sold or supplied. 
  

	7.2	 Syncona representations and warranties 

 

	 	(a)	 Syncona represents and warrants that: 

 

	 	(I)	 it has not granted, or agreed to grant, any licences or entered into any agreements which may adversely affect
or conflict with this Agreement and/or with any of the licences granted hereunder and/or options to licences granted hereunder; and 

  

	 	(II)	 it has not granted, or agreed to grant, any assurance or waiver not to enforce in respect of any of the
intellectual property exclusively licensed hereunder in so far as such consents, assurances or waivers would enable a third party to develop, free of infringement, any product or therapy that is covered by or has been developed using or uses any of
the intellectual property exclusively licensed hereunder. 

  

	 	(b)	 Except as provided by clause 7.2(a) Syncona makes no representations or warranties of any kind, express or
implied, concerning the Patent and the technology embodied therein including [**]. 

 All conditions, warranties or other
terms implied by statute or common law are excluded from this Agreement to the fullest extent permitted by law. 

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

	7.3	 Liability and indemnity 

 

	 	(a)	 The limitations and exclusions in this Agreement shall not apply in respect of claims for [**].

  

	 	(b)	 In respect of any damages or expenses of whatsoever nature and howsoever arising (including [**]) in connection
with [**] in no circumstances shall the Indemnitees or the Licensee be liable for [**] provided however that this limitations shall not apply in relation to [**]. 

 

	 	(c)	 Notwithstanding anything else in this Agreement, and subject to Syncona’s compliance with clause 7.3(d),
the Licensee shall indemnify Syncona in full against all demands, claims, judgements and liability (howsoever arising [**]) for damages, costs, expenses or any other loss of whatsoever nature including [**], save that the Licensee shall not
indemnify or hold Syncona harmless in respect of any claim or allegation to the extent that [**]. 

 The indemnity also
extends to [**]. Nothing in this sub-clause shall prevent the Licensee recovering from Syncona, subject to the exclusions and limitations set out this Agreement, damages due to the Licensee for [**]. 

 

	 	(d)	 If any third party makes a claim, or notifies an intention to make a claim, against an Indemnitee which may
reasonably be considered likely to give rise to a liability under the indemnity at clause (“Claim”), Syncona shall: 

  

	 	(I)	 [**] give written notice of the Claim to the Licensee, specifying the nature of the Claim in reasonable detail;

  

	 	(II)	 not make any admission of liability, agreement or compromise in relation to the Claim [**], provided that
Syncona may settle the Claim (after giving prior written notice of the terms of settlement (to the extent legally possible) to the Licensee, but without obtaining the Licensee’s consent) if [**]; 

 

	 	(III)	 give the Licensee and its professional advisers access [**] to its premises and its officers, directors,
employees, agents, representatives or advisers, and to any relevant assets, accounts, documents and records within the power or control of the Indemnitee, so as to enable the Licensee and its professional advisers to examine them and to take copies
(at the Licensee’s expense) for the purpose of assessing the Claim; and 

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

	 	(IV)	 subject to the Licensee providing security to Syncona against any claim, liability, costs, expenses, damages or
losses which may be incurred, take such action [**] to avoid, dispute, compromise or defend the Claim. 

 Syncona shall
have the right to take over conduct of any Claim at any time by serving written notice on the Licensee. In the event that Syncona serves notice to take over conduct of any Claim, the Licensee’s obligation to indemnify the Indemnitee shall [**].

  

	8	 Duration and termination 

 

	8.1	 Term 

This Agreement, and the licences granted hereunder, shall come into effect on the Commencement Date and, unless terminated earlier in
accordance with this clause 8, shall continue in force until the later of the date on which all the granted Patents have expired or been revoked without a right of further appeal, and on such date this Agreement and the licences granted hereunder
shall become fully paid-up, perpetual and irrevocable. 
  

	8.2	 Early termination by the Licensee 

The Licensee may terminate this Agreement at any time on [**] notice in writing to Syncona. 

 

	8.3	 Early termination by either Party 

Without prejudice to any other right or remedy, either Party may by written notice to the other Party terminate this Agreement at any time, if
any of the following events occur: 
  

	 	(a)	 the other Party has materially breached this Agreement (and for the avoidance of doubt non-payment by the Licensee under clause 4 shall be deemed a material breach) and, in case of a remediable breach other than a persistent breach, has failed to remedy that breach within [**] of the date of service
of a written notice from the other Party specifying the breach and requiring that it be remedied; 

  

	 	(b)	 the other Party ceases to carry on business, is declared bankrupt, or an order is made or a resolution passed
for the winding up of that other Party or for the appointment of an administrator, receiver, liquidator or manager of that other Party; or 

  

	 	(c)	 if the force majeure event as defined in clause 9.1 continues for longer than [**]. 

 

	8.4	 Consequences of termination 

 

	 	(a)	 Upon termination of this Agreement for any reason otherwise than in accordance with clause 8.1:

  

	 	(I)	 (except where Syncona terminates pursuant to a breach of clause 3) the Licensee and Sub-Licensees shall be entitled to sell, use or otherwise dispose of (subject to payment of royalties under clause 4.3) any unsold or unused stocks of the Licensed Products; 

 

	 	(II)	 subject to paragraph 8.4(a)(I) above, the Licensee shall no longer be licensed to use or otherwise exploit in
any way either directly or indirectly the Patent; 

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

	 	(III)	 subject to paragraph 8.4(a)(I) above, the Licensee shall consent to the cancellation of any formal licence
granted to it or of any registration of it in any register in relation to the Patent; and 

  

	 	(IV)	 each Party shall return to the other (or destroy at the other’s request) all Confidential Information
disclosed to it by the other and all materials containing any Confidential Information in its possession or control (including, in the case of the Licensee, in the possession or control of its Sub-Licensees).

  

	 	(b)	 upon Syncona’s request, the Parties shall negotiate in good faith the terms of an agreement between them
on reasonable commercial terms to enable Syncona to arrange for the further exploitation of the technology embodied in the Patent and Licensed Products as they exist at the date of termination including to provide Syncona with details of all
technical processes, improvements, information, know-how and results created or developed by the Licensee or sub-contractors or
Sub-Licensees. The expiry or termination of this Agreement does not affect any rights or obligations of either Party which have arisen or accrued up to and including the date of expiry or termination including
the right to payment under this Agreement. 

  

	 	(c)	 Clauses 2.3(d), 3.2 to 3.5, 4 (in respect of payments due on or before termination or under clause 8.4(a)(I)),
7, 8.4(c), 8.4(d) and 9 survive expiry or termination (for whatever reason). 

  

	 	(d)	 Dispute resolution 

The Parties agree that should any dispute arise between them in relation to this Agreement they shall meet as soon as practicable and negotiate
in good faith with a view to achieving a reasonable resolution of the dispute. 
 If the Parties are unable to settle any dispute by
negotiation within [**] of meeting, the Parties will attempt to settle it by mediation in accordance with the Centre for Effective Dispute Resolution (CEDR) Model Mediation Procedure. 

To initiate a mediation a Party must give notice in writing to the other Party, requesting a mediation in accordance with this clause 8.4(d).

 Nothing in this clause 8.4(d) shall prevent either Party from applying for injunctive relief to restrain any actual or potential breach of
this Agreement. 
  

	9	 General 

  

	9.1	 Force majeure 

 

	 	(a)	 Notwithstanding any other provision of this Agreement, no Party need act if it is impossible to act due to
force majeure, meaning any cause beyond its control (including war, riot, natural disaster or law taking effect after the Commencement Date). A Party affected by force majeure agrees to notify the other Party promptly after it determines that it is
unable to act. 

  

	 	(b)	 A Party has no responsibility or liability for any loss or expense suffered or incurred by the other Party as a
result of its not acting for so long as the force majeure under clause 9.1 continues. However, the non-performing Party agrees to make reasonable efforts to avoid or remove the circumstances giving rise to the
force majeure and agrees to continue performance under this Agreement promptly when they are removed. 

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

	9.2	 Assignment 

  

	 	(a)	 Syncona may assign the whole or any of its rights and obligations under this Agreement provided that
Syncona’s assignee shall undertake to be bound by and perform Syncona’s obligations under this Agreement. Syncona shall notify the Licensee of any assignment under this Agreement. 

 

	 	(b)	 The Licensee may assign all its rights and obligations under this Agreement provided the assignee undertakes to
Syncona to be bound by and perform the obligations of the Licensee under this Agreement and is capable of performing such obligations. The Licensee shall notify Syncona of any such assignment. 

 

	9.3	 Waiver 

A provision of this Agreement or any right created under it cannot be waived or varied except in writing signed by the Parties. 

 

	9.4	 Invalid clauses 

If the whole or any part of a provision of this Agreement is void, unenforceable or illegal in a jurisdiction it is severed for that
jurisdiction. The remainder of this Agreement has full force and effect and the validity or enforceability of that provision in any other jurisdiction is not affected. This clause has no effect if the severance alters the basic nature of this
Agreement or is contrary to public policy. 
  

	9.5	 No agency 

Nothing in this Agreement shall be construed as creating any agency, partnership or other form of joint enterprise between the Parties and
neither Party has the authority to act for or bind the other Party in any way. 
  

	9.6	 Notices 

Any notice to be given under this Agreement shall be in writing and delivered by hand, prepaid registered post or email to the other Party at
the address or email address set out below or to such other address or email address as either Party may specify in writing to the other. 
  

			
	   Notices to Syncona
	  	 Attention: Company Secretary
 Syncona IP Holdco
Limited
 [**]
 [**]

[**]
 Email: [**]

		
	   Notices to Licensee
	  	 Attention: [name]
 Gyroscope Therapeutics
Limited
 [**]
 [**]

[**]
 [**]

Email: [email]

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

 Notices are deemed to have been given: 

 

	(a)	 if delivered by hand, at the time of the delivery unless delivered after 5pm in the place of receipt or on a non-business day, in which case the notice is deemed to have been given at 9am the next business day; 

  

	(b)	 if sent by pre-paid first class post from within the United Kingdom,
three business days after posting (or seven business days if posted from outside the United Kingdom); and 

  

	(c)	 if sent by email, at the time the email was sent unless received after 5pm in the place of receipt or on a non-business day, in which case the notice is deemed to have been given at 9am the next business day. 

  

	9.7	 Law and jurisdiction 

This Agreement and any documents to be entered into pursuant to it shall be governed by and construed in accordance with English law and each
Party irrevocably submits to the exclusive jurisdiction of the courts of England over any claim or matter arising under or in connection with this Agreement and the documents entered into pursuant to it except that a Party may seek an interim
injunction for enforcement of intellectual property rights as described in clause 8.4(d) in any court of competent jurisdiction. 
  

	9.8	 Further action 

Each Party agrees to execute, acknowledge and deliver such further instruments, and do all further similar acts, as may be necessary or
appropriate to carry out the purposes and intent of this Agreement. 
  

	9.9	 Announcements 

A Party may not make press or other announcements or releases relating to this Agreement or the transactions the subject of this Agreement
without the approval of the other Party to the form and manner of the announcement or release unless and to the extent that the announcement or release is required to be made by law or by a stock exchange. 

 

	9.10	 Entire agreement 

This Agreement constitutes the entire agreement and understanding of the Parties and supersedes all negotiations, understandings or previous
agreement between the Parties relating to the subject matter of this Agreement. Nothing in this Agreement, including this clause and clause 7.2, shall operate to limit or exclude liability for fraud or fraudulent misrepresentation. 

 

	9.11	 Original Licence 

The Parties agree that this Agreement supersedes in all respects the Original Licence, and without limiting the generality of the foregoing
statement (i) Syncona waives and releases any rights it may have under the Original Licence (as assignee of Syncona Management LLP) against the Licensee and (ii) the Licensee waives and releases any rights it may have under the Original
Licence against Syncona Management LLP. 
  

	9.12	 Third party rights 

Other than the right of Syncona Management LLP to enforce the waiver and release set out in clause 9.11, no term of this Agreement shall be
enforceable under that the Contracts (Rights of Third Parties) Act 1999 (the Act) by a person who is not a party to this Agreement, but this shall not affect any right or remedy of any third party which exists or is available other
than under that Act. Notwithstanding that any term of this Agreement may be or become enforceable under that Act by a person which is not a party to it, this Agreement may be amended in any respect, or suspended, cancelled or terminated by agreement
in writing between the Parties, in each case without the consent of such third party. 

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

	9.13	 Insurance 

Without prejudice to its obligations under clause 7.3(c), the Licensee shall take out with a reputable insurance company and maintain at all
times during the Term public and product liability and professional indemnity insurance including against all loss of and damage to property (whether real personal or intellectual) and injury to persons including death arising out of or in
connection with this Agreement and the Licensee’s and Sub-Licensees’ use of the Licensed Technology and use, sale of or any other dealing in any of the Licensed Products. Such insurances shall be at
a level which reflects the scale of activity in relation to the Licensed Technology, not exclude litigation in England, and the public and product liability insurance shall include an indemnity to principals clause in favour of Syncona. Subject
thereto, cover may be limited in respect of one claim provided that such limit must be at least [**] for public and product liability and [**] for professional indemnity insurance. Professional indemnity insurance shall continue to be maintained for
a further [**] from the end of the Term. 
  

	9.14	 Legal Compliance 

The Licensee shall comply with the following (and any amendment or re-enactment): all statutes, bye
laws, regulations, codes of practice, European and other directives and provisions and all professional rules and standards to be observed and performed in connection with the development, manufacture and sale or making available of Licensed
Products. 
 AGREED by the parties through their authorised signatories: 
  

			
	 For and on behalf of
 SYNCONA IP HOLDCO
LIMITED
	  	 For and on behalf of
 GYROSCOPE THERAPEUTICS
LIMITED

		
	 [**]
	  	 [**]

	Signed	  	Signed
		
	 [**]
	  	 [**]

	Print name	  	Print name
		
	 [**]
	  	 [**]

	Title	  	Title
		
	 01 OCT 2019
	  	 1/10/19

	Date	  	Date

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

 Schedule 1 

[**] 

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

 Schedule 2 

Part A: Payment and Report Schedule 

[**] 

  

 Certain confidential information contained in this document, marked by [**], has been omitted because
the information (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. 
  

 Part B: Financial Report Format 

[**]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00326-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00326-of-00352.parquet"}]]