Document:

Blueprint

 

  Exhibit
4.90

 

August 15,
2018

 

STRICTLY CONFIDENTIAL

  

Intellipharmaceutics
International Inc.

30 Worcester
Road

Toronto, Ontario
M9W 5X2

Canada

 

Attn: Isa Odidi,
Ph.D., Chairman & Chief Executive Officer

 

Dear Dr.
Odidi:

 

This letter
agreement (this “Agreement”) constitutes
the agreement between Intellipharmaceutics International Inc. (the
“Company”) and H.C.
Wainwright & Co., LLC (“Wainwright”), that
Wainwright shall, subject to the terms hereof, serve as the
exclusive agent or underwriter in any offering (each a
“Financing”) in the United
States of securities of the Company (the “Securities”) during the
Term (as hereinafter defined) of this Agreement and the exclusive
agent or advisor with respect to the solicitation with respect to
the Company’s outstanding warrants (each, a
“Warrant
Solicitation” and collectively with the Financing, an
“Offering”). The terms of
each Offering and the Securities issued in connection therewith
shall be mutually agreed upon by the Company and Wainwright and
nothing herein implies that Wainwright would have the power or
authority to bind the Company and nothing herein implies that the
Company shall have an obligation to issue any Securities. It is
understood that Wainwright’s assistance in an Offering will
be subject to the satisfactory completion of such investigation and
inquiry into the affairs of the Company as Wainwright deems
appropriate under the circumstances and to the receipt of all
internal approvals of Wainwright in connection with the
transaction. The Company expressly acknowledges and agrees that
Wainwright’s involvement in an Offering is strictly on a
reasonable best efforts basis and that the consummation of an
Offering will be subject to, among other things, market conditions.
The execution of this Agreement does not constitute a commitment by
Wainwright to purchase the Securities and does not ensure a
successful Offering of the Securities or the success of Wainwright
with respect to securing any other financing on behalf of the
Company. Wainwright may retain other brokers, dealers, agents or
underwriters on its behalf in connection with an
Offering.

 

Notwithstanding the
foregoing, Wainwright’s exclusivity shall not apply to, and
the Company shall not be prohibited from (and shall not be required
to pay any fee to Wainwright or any other broker, dealer, agent or
other party engaged by Wainwright) in respect of (i) the
Company’s existing at-the market securities program (as the
same may be amended, restated, supplemented, replaced or otherwise
modified from time to time), (ii) the Company incurring any
non-convertible indebtedness, (iii) the Company’s outstanding
convertible indebtedness (as the same may be amended, restated,
supplemented, replaced, refinanced or otherwise modified from time
to time) or (iv) the Company’s issuing and selling securities
in: (a) any strategic transactions (including without limitation
commercial relationships, consulting agreements, licenses,
partnerships, joint ventures, collaborations, mergers, acquisitions
or other business combinations or otherwise) the primary purpose of
which is not to raise capital and/or (b) any transaction with one
or more officers, directors or employees of the Company and any
affiliate thereof without the involvement of any investment bank or
other broker-dealer.

 

 

430 Park Avenue | New York, New York 10022 |
212.356.0500 | www.hcwco.com

Member: FINRA/SIPC

 

 

A.           Compensation;
Reimbursement. At the closing of each Offering (each a
“Closing”), the Company
shall compensate Wainwright as follows:

 

1. 

Cash Fee. The Company shall pay to
Wainwright a cash fee, or as to an underwritten Offering an
underwriter discount, equal to 8.0% of the aggregate gross proceeds
raised in each Closing; provided, however, that such cash fee shall
be reduced to 7.0% of the aggregate gross proceeds raised in each
Closing of each non-public Offering and Warrant Solicitation
transaction.

 

2. 

Warrant Coverage. The Company shall
issue to Wainwright or its designees at each Closing, warrants (the
“Wainwright
Warrants”) to purchase that number of common shares of
the Company equal to 6.0% of the aggregate number of common shares
(or common share equivalents) placed in the Offering and issued at
each Closing (and if the Offering includes a
“greenshoe” or “additional investment”
option component, such number of common shares underlying such
additional option component, with the additional Wainwright
Warrants to be issuable upon the closing of exercise of such
option); provided, however, that such warrant coverage shall be
reduced to 5.0% in connection with each non-public Offering and
Warrant Solicitation transaction. If the Securities included in on
Offering are convertible, the Wainwright Warrants shall be
determined by dividing the gross proceeds raised in such Offering
divided by the Offering Price (as defined hereunder). The
Wainwright Warrants shall have the same terms as the warrants
issued to investors in the applicable Offering, except that such
Wainwright Warrants shall have an initial exercise price equal to
125% of the offering price per share (or unit, if applicable) in
the applicable Offering and if such offering price is not
available, the market price of the common shares on the date an
Offering is commenced (such price, the “Offering Price”). If no
warrants are issued to investors in an Offering, the Wainwright
Warrants shall be in a customary form reasonably acceptable to
Wainwright and the Company, have a term of five (5) years and an
exercise price equal to 125% of the Offering Price.

 

3. 

Expense Allowance. Out of the proceeds
of each Closing, the Company also agrees to pay Wainwright (a) a
management fee equal to 1.0% of the gross proceeds raised in each
Financing; (b) $35,000 for non-accountable expenses of Wainwright
in connection with a Financing (to be reduced to $25,000 in
connection with each non-public Offering and Warrant Solicitation
transaction) and (c) up to $100,000 for invoiced fees and expenses
of legal counsel and other invoiced out-of-pocket expenses incurred
in a Financing (to be reduced to $40,000 in connection with each
non-public Offering and Warrant Solicitation transaction); plus the
additional reimbursable amount payable by the Company pursuant to
Paragraph D.3 below; provided, however, that such reimbursement
amount in no way limits or impairs the indemnification and
contribution provisions of this Agreement.

 

4. 

Tail Fee. Wainwright shall be entitled
to compensation under clauses (1) and (2) hereof, calculated in the
manner set forth therein, with respect to any public or private
offering or other financing or capital-raising transaction of any
kind (“Tail
Financing”) to the extent that such financing or
capital is provided to the Company by investors whom Wainwright had
contacted during the Term or introduced to the Company during the
Term, if such Tail Financing is consummated at any time within the
12-month period following the expiration or termination of this
Agreement. Upon the Company’s request, Wainwright shall
promptly provide a list to the Company of any such
investors.

 

 

2

 

 

5. 

Right of First Refusal. Provided that
an Offering has occurred, if within the 10-month period following
consummation of an Offering, the Company or any of its subsidiaries
(a) decides to finance or refinance any indebtedness (other than
the Company’s outstanding convertible indebtedness (as the
same may be amended, restated, supplemented, replaced, refinanced
or otherwise modified from time to time)), using a manager or
agent, Wainwright (or any affiliate designated by Wainwright) shall
have the right to act as sole book-runner, sole manager, sole
placement agent or sole agent with respect to such financing or
refinancing; or (b) decides to raise funds by means of a public
offering or a private placement of equity or debt securities using
an underwriter or placement agent, Wainwright (or any affiliate
designated by Wainwright) shall have the right to act as sole
book-runner, sole manager, sole underwriter or sole placement agent
for such financing. If Wainwright or one of its affiliates decides
to accept any such engagement, the agreement governing such
engagement will contain, among other things, provisions for
customary fees for transactions of similar size and nature and the
provisions of this Agreement, including indemnification, which are
appropriate to such a transaction. Notwithstanding anything to the
contrary contained herein, this right of first refusal must be
exercised by Wainwright within five (5) business days of written
notice from the Company of its intention to seek a transaction
described in (a) or (b) above. Notwithstanding anything herein to
the contrary, this provision shall not apply to the Company’s
existing at-the-market program, as amended from time to time after
the date hereof.

 

B.           Term
and Termination of Engagement; Exclusivity. The term of
Wainwright’s exclusive engagement will begin on the date
hereof and end on the earlier of (i) five (5) months after the date
hereof and (ii) consummation of the Financing (the
“Term”). Notwithstanding
anything to the contrary contained herein, the Company agrees that
the provisions relating to the payment of fees, reimbursement of
expenses, right of first refusal, tail, indemnification and
contribution, confidentiality, conflicts, independent contractor
and waiver of the right to trial by jury will survive any
termination or expiration of this Agreement. Notwithstanding
anything to the contrary contained herein, the Company has the
right to terminate the Agreement for cause in compliance with FINRA
Rule 5110(f)(2)(D)(ii). The exercise of such right of termination
for cause eliminates the Company’s obligations with respect
to the provisions relating to the tail fees and right of first
refusal. Notwithstanding anything to the contrary contained in this
Agreement, in the event that an Offering pursuant to this Agreement
shall not be carried out for any reason whatsoever during the Term,
the Company shall be obligated to pay to Wainwright its actual and
accountable out-of-pocket expenses related to an Offering
(including the reasonable fees and disbursements of
Wainwright’s legal counsel); provided, however, that such
expenses shall not exceed $50,000 in the aggregate. During
Wainwright’s engagement hereunder: (i) the Company will not,
and will not permit its representatives to, other than in
coordination with Wainwright, contact or solicit institutions,
corporations or other entities or individuals as potential
purchasers of the Securities and (ii) the Company will not pursue
any financing transaction which would be in lieu of an Offering.
Furthermore, the Company agrees that during Wainwright’s
engagement hereunder, all inquiries, whether direct or indirect,
from prospective investors will be referred to Wainwright and will
be deemed to have been contacted by Wainwright in connection with
an Offering. Additionally, except as set forth herein, the Company
represents, warrants and covenants that no brokerage or
finder’s fees or commissions are or will be payable by the
Company or any subsidiary of the Company to any broker, financial
advisor or consultant, finder, placement agent, investment banker,
bank or other third-party with respect to an Offering.

 

 

3

 

 

C.           Information;
Reliance. The Company shall furnish, or cause to be
furnished, to Wainwright all information reasonably requested by
Wainwright for the purpose of rendering services hereunder and
conducting due diligence (all such information being the
“Information”). In
addition, the Company agrees to make available to Wainwright upon
reasonable request from time to time the officers, directors,
accountants, counsel and other advisors of the Company. The Company
recognizes and confirms that Wainwright (a) will use and rely on
the Information, including any documents provided to investors in
an Offering (the “Offering Documents” which
shall include any Purchase Agreement (as defined below) and
applicable prospectus, and on information available from generally
recognized public sources in performing the services contemplated
by this Agreement without having independently verified the same;
(b) does not assume responsibility for the accuracy or completeness
of the Offering Documents or the Information and such other
information; and (c) will not make an appraisal of any of the
assets or liabilities of the Company. Upon reasonable request, the
Company will meet with Wainwright or its representatives to discuss
all information relevant for disclosure in the Offering Documents
and will cooperate in any investigation undertaken by Wainwright
thereof, including any document included or incorporated by
reference therein. At the Closing, at the request of Wainwright,
the Company shall deliver such legal letters (including negative
assurance letters), opinions, comfort letters, officers’ and
secretary certificates and good standing certificates, all in form
and substance reasonably satisfactory to Wainwright and its counsel
as is customary for such Offering. Wainwright shall be a third
party beneficiary of any representations, warranties, covenants and
closing conditions made by the Company in any Offering Documents,
including representations, warranties, covenants and closing
conditions made to any investor in an Offering.

 

D.           Related
Agreements. At each Offering, the Company shall enter into
the following additional agreements:

 

1. 

Underwritten Offering. If an Offering
is an underwritten Offering, the Company and Wainwright shall enter
into a customary underwriting agreement in form and substance
satisfactory to Wainwright and its counsel.

 

2. 

Best Efforts Offering. If an Offering
is on a best efforts basis, the sale of Securities to the investors
in the Offering will be evidenced by a purchase agreement
(“Purchase
Agreement”) between the Company and such investors in
a form reasonably satisfactory to the Company and Wainwright.
Wainwright shall be a third party beneficiary with respect to the
representations and warranties included in the Purchase Agreement.
Prior to the signing of any Purchase Agreement, officers of the
Company with responsibility for financial affairs will be available
to answer inquiries from prospective investors.

 

 

4

 

 

3.

Escrow and Settlement. In respect of an
Offering, the Company and Wainwright shall enter into an escrow
agreement with a third party escrow agent, which may also be
Wainwright’s clearing agent, pursuant to which
Wainwright’s compensation and expenses shall be paid from the
gross proceeds of the Securities sold. If an Offering is settled in
whole or in part via delivery versus payment (“DVP”), Wainwright shall
arrange for its clearing agent to provide the funds to facilitate
such settlement. The Company shall bear the cost of the escrow
agent and shall reimburse Wainwright for the actual out-of-pocket
cost of such clearing agent settlement and financing, if any, which
cost shall not exceed $10,000.

 

4.

FINRA Amendments. Notwithstanding
anything herein to the contrary, in the event that Wainwright
determines that any of the terms provided for hereunder shall not
comply with a FINRA rule, including but not limited to FINRA Rule
5110, then the Company shall agree to amend this Agreement (or
include such revisions in the final agreement) in writing upon the
request of Wainwright to comply with any such rules; provided that
any such amendments shall not provide for terms that are less
favorable to the Company than are reflected in this
Agreement.

 

E.           Confidentiality.
In the event of the consummation or public announcement of an
Offering, Wainwright shall have the right to disclose its
participation in such Offering, including, without limitation, an
Offering at its cost of “tombstone” advertisements in
financial and other newspapers and journals. Except as contemplated
by the terms hereof or as required by applicable law, Wainwright
will keep strictly confidential (and not disclose) all non-public
information concerning the Company provided to Wainwright. No
obligation of confidentiality will apply to information that: (a)
is in the public domain as of the date hereof or hereafter enters
the public domain without a breach by Wainwright of this provision,
(b) was known or became known by Wainwright prior to the
Company’s disclosure thereof to Wainwright, (c) becomes known
to Wainwright from a source other than the Company, and other than
by the breach of an obligation of confidentiality owed to the
Company and known to Wainwright, (d) is disclosed by the Company to
a third party without restrictions on its disclosure or (e) is
independently developed by Wainwright. In no event shall any
information be used by Wainwright for any purpose other than in
connection with Wainwright’s activities on behalf of the
Company in respect of an Offering. In the event that Wainwright is
legally required to make disclosure of any such information,
Wainwright will give notice to the Company prior to such
disclosure, to the extent that Wainwright can practically do so or
unless such notice would violate applicable law, rule or
regulation, legal or regulatory process or professional standard.
Wainwright’s obligations of confidentiality hereunder shall
extend to its officers, directors, employees, agents and
representatives. References to Wainwright in this paragraph shall
be deemed to include Wainwright and its affiliates, directors,
managers, partners, members, officers, employees, accountants,
attorneys, advisors and agents who were in privy to the
Company’s confidential information. The foregoing
confidentiality covenants shall remain in full force and effect
whether or not an Offering contemplated by this engagement letter
is completed and shall survive the termination of this engagement
letter for a period of one year thereafter.

 

 

5

 

F. 

Indemnity.

 

1. 

In connection with
the Company’s engagement of Wainwright hereunder, the Company
hereby agrees to indemnify and hold harmless Wainwright and its
affiliates, and the respective controlling persons, directors,
officers, members, shareholders, agents and employees of any of the
foregoing (collectively the “Indemnified Persons”),
from and against any and all claims, actions, suits, proceedings
(including those of shareholders), damages (excluding indirect,
special and consequential damages), liabilities and expenses
incurred by any of them (including the reasonable fees and expenses
of one counsel for all Indemnified Persons in the same
jurisdiction, other than to the extent the applicable Indemnified
Persons use separate counsel for conflict of interest reasons), as
incurred, (collectively a “Claim”), that are (A)
related to or arise out of (i) any actions taken or omitted to be
taken (including any untrue statements made or any statements
omitted to be made in the Offering Documents) by the Company, or
(ii) any actions taken or omitted to be taken by any Indemnified
Person in connection with the Company’s engagement of
Wainwright, or (B) otherwise relate to or arise out of
Wainwright’s activities on the Company’s behalf under
Wainwright’s engagement, and the Company shall reimburse any
Indemnified Person for all expenses (including the reasonable fees
and expenses of one counsel for all Indemnified Persons in the same
jurisdiction, other than to the extent the applicable Indemnified
Persons use separate counsel for conflict of interest reasons) as
incurred by such Indemnified Person in connection with
investigating, preparing or defending any such claim, action, suit
or proceeding, whether or not in connection with pending or
threatened litigation in which any Indemnified Person is a party.
The Company will not, however, be responsible for any Claim that is
finally judicially determined to have resulted from fraud, gross
negligence or willful misconduct of any person seeking
indemnification for such Claim. The Company further agrees that no
Indemnified Person shall have any liability to the Company for or
in connection with the Company’s engagement of Wainwright
except for any Claim incurred by the Company as a result of such
Indemnified Person’s fraud, gross negligence or willful
misconduct.

 

2. 

The Company further
agrees that it will not, without the prior written consent of
Wainwright, settle, compromise or consent to the entry of any
judgment in any pending or threatened Claim in respect of which
indemnification may be sought hereunder (whether or not any
Indemnified Person is an actual or potential party to such Claim),
unless such settlement, compromise or consent includes an
unconditional, irrevocable release of each Indemnified Person from
any and all liability arising out of such Claim.

 

3. 

Promptly upon
receipt by an Indemnified Person of notice of any complaint or the
assertion or institution of any Claim with respect to which
indemnification is being sought hereunder, such Indemnified Person
shall notify the Company in writing of such complaint or of such
assertion or institution but failure to so notify the Company shall
not relieve the Company from any obligation it may have hereunder,
except and only to the extent such failure causes actual harm to
the Company, results in the forfeiture by the Company of
substantial rights or defenses or results in any material increase
in the obligation which the Company has under this indemnity. If
the Company is requested by such Indemnified Person, the Company
will assume the defense of such Claim, including the employment of
counsel reasonably satisfactory to such Indemnified Person and the
payment of the reasonable fees and expenses of such counsel. In the
event, however, that legal counsel to such Indemnified Person
reasonably determines that having common counsel would present such
counsel with a conflict of interest or if the defendant in, or
target of, any such Claim, includes an Indemnified Person and the
Company, and legal counsel to such Indemnified Person reasonably
concludes that there may be legal defenses available to it or other
Indemnified Persons different from or in addition to those
available to the Company, then such Indemnified Person may employ
its own separate counsel to represent or defend him, her or it in
any such Claim and the Company shall pay the reasonable fees and
expenses of such counsel; provided, however, that in no event shall
the Company be responsible to pay the fees and expenses of more
than one firm of attorneys representing Indemnified Persons in the
same jurisdiction, other than to the extent the applicable
Indemnified Persons use separate counsel for conflict of interest
reasons. Notwithstanding anything herein to the contrary, if the
Company fails timely or diligently to defend, contest, or otherwise
protect against any Claim, the relevant Indemnified Person shall
have the right, but not the obligation, to defend, contest,
compromise, settle, assert crossclaims, or counterclaims or
otherwise protect against the same, and shall be fully indemnified
by the Company therefor, including without limitation, for the
reasonable fees and expenses of its counsel and all amounts paid as
a result of such Claim or the compromise or settlement thereof. In
addition, with respect to any Claim in which the Company assumes
the defense, the Indemnified Person shall have the right to
participate in such Claim and to retain his, her or its own counsel
therefor at his, her or its own expense. The Company shall not be
liable for any settlement of any action effected without its prior
written consent (which consent shall not be unreasonably withheld,
delayed or conditioned).

 

 

6

 

 

4. 

The Company agrees
that if any indemnity sought by an Indemnified Person hereunder is
held by a court to be unavailable for any reason then (whether or
not Wainwright is the Indemnified Person), the Company and
Wainwright shall contribute to the Claim for which such indemnity
is held unavailable in such proportion as is appropriate to reflect
the relative benefits to the Company, on the one hand, and
Wainwright on the other, in connection with Wainwright’s
engagement referred to above, subject to the limitation that in no
event shall the amount of Wainwright’s contribution to such
Claim exceed the amount of fees actually received by Wainwright
from the Company pursuant to Wainwright’s engagement. The
Company hereby agrees that the relative benefits to the Company, on
the one hand, and Wainwright on the other, with respect to
Wainwright’s engagement shall be deemed to be in the same
proportion as (a) the total value paid or proposed to be paid or
received by the Company pursuant to the applicable Offering
(whether or not consummated) for which Wainwright is engaged to
render services bears to (b) the fee paid or proposed to be paid to
Wainwright in connection with such engagement.

 

5. 

The Company’s
indemnity, reimbursement and contribution obligations under this
Agreement (a) shall be in addition to, and shall in no way limit or
otherwise adversely affect any rights that any Indemnified Person
may have at law or at equity and (b) shall be effective whether or
not the Company is at fault in any way.

 

G.           Limitation
of Engagement to the Company. The Company acknowledges that
Wainwright has been retained only by the Company, that Wainwright
is providing services hereunder as an independent contractor (and
not in any fiduciary or agency capacity) and that the
Company’s engagement of Wainwright is not deemed to be on
behalf of, and is not intended to confer rights upon, any
shareholder, owner or partner of the Company or any other person
not a party hereto as against Wainwright or any of its affiliates,
or any of its or their respective officers, directors, controlling
persons (within the meaning of Section 15 of the Securities Act or
Section 20 of the Securities Exchange Act of 1934, as amended (the
“Exchange
Act”)), employees or agents. Unless otherwise
expressly agreed in writing by Wainwright, no one other than the
Company is authorized to rely upon this Agreement or any other
statements or conduct of Wainwright, and no one other than the
Company is intended to be a beneficiary of this Agreement. The
Company acknowledges that any recommendation or advice, written or
oral, given by Wainwright to the Company in connection with
Wainwright’s engagement is intended solely for the benefit
and use of the Company’s management and directors in
considering a possible Offering, and any such recommendation or
advice is not on behalf of, and shall not confer any rights or
remedies upon, any other person or be used or relied upon for any
other purpose. Wainwright shall not have the authority to make any
commitment binding on the Company. The Company, in its sole
discretion, shall have the right to reject any investor introduced
to it by Wainwright.

 

H.           Limitation
of Wainwright’s Liability to the Company. Wainwright
and the Company further agree that neither Wainwright nor any of
its affiliates or any of its their respective officers, directors,
controlling persons (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act), employees or
agents shall have any liability to the Company, its security
holders or creditors, or any person asserting claims on behalf of
or in the right of the Company (whether direct or indirect, in
contract, tort, for an act of negligence or otherwise) for any
losses, fees, damages, liabilities, costs, expenses or equitable
relief arising out of or relating to this Agreement or the services
rendered hereunder, except for losses, fees, damages, liabilities,
costs or expenses that arise out of or are based on any action of
or failure to act by Wainwright and that are finally judicially
determined to have resulted solely from fraud, gross negligence or
willful misconduct of Wainwright.

 

 

7

 

I.           Governing
Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to
agreements made and to be fully performed therein. Any disputes
that arise under this Agreement, even after the termination of this
Agreement, will be heard only in the state or federal courts
located in the City of New York, State of New York. The parties
hereto expressly agree to submit themselves to the jurisdiction of
the foregoing courts in the City of New York, State of New York.
The parties hereto expressly waive any rights they may have to
contest the jurisdiction, venue or authority of any court sitting
in the City and State of New York. In the event of the bringing of
any action, or suit by a party hereto against the other party
hereto, arising out of or relating to this Agreement, the party in
whose favor the final judgment or award shall be entered shall be
entitled to have and recover from the other party the costs and
expenses incurred in connection therewith, including its reasonable
attorneys’ fees. Any rights to trial by jury with respect to
any such action, proceeding or suit are hereby waived by Wainwright
and the Company.

 

J.           Notices.
All notices hereunder will be in writing and sent by certified
mail, hand delivery, overnight delivery or fax, if sent to
Wainwright, at the address set forth on the first page hereof,
e-mail: notices@hcwco.com, Attention: Head of Investment Banking,
and if sent to the Company, to the address set forth on the first
page hereof, e-mail: apatient@intellipharmaceutics.com,
Attention: Chief Financial Officer. Notices sent by certified mail
shall be deemed received five days thereafter, notices sent by hand
delivery or overnight delivery shall be deemed received on the date
of the relevant written record of receipt, notices delivered by fax
shall be deemed received as of the date and time printed thereon by
the fax machine and notices sent by e-mail shall be deemed received
as of the date and time they were sent.

 

K.           Conflicts.
The Company acknowledges that Wainwright and its affiliates may
have and may continue to have investment banking and other
relationships with parties other than the Company pursuant to which
Wainwright may acquire information of interest to the Company.
Wainwright shall have no obligation to disclose such information to
the Company or to use such information in connection with any
contemplated transaction.

 

L.           Anti-Money
Laundering. To help the United States government fight the
funding of terrorism and money laundering, the federal laws of the
United States require all financial institutions to obtain, verify
and record information that identifies each person with whom they
do business. This means Wainwright must ask the Company for certain
identifying information, including a government-issued
identification number (e.g., a U.S. taxpayer identification number)
and such other information or documents that Wainwright considers
appropriate to verify the Company’s identity, such as
certified articles of incorporation, a government-issued business
license, a partnership agreement or a trust
instrument.

 

M.           Miscellaneous.
The Company represents and warrants that it has all requisite power
and authority to enter into and carry out the terms and provisions
of this Agreement and the execution, delivery and performance of
this Agreement does not breach or conflict with any agreement,
document or instrument to which it is a party or bound. This
Agreement shall not be modified or amended except in writing signed
by Wainwright and the Company. This Agreement shall be binding upon
and inure to the benefit of both Wainwright and the Company and
their respective assigns, successors, and legal representatives.
This Agreement constitutes the entire agreement of Wainwright and
the Company with respect to the subject matter hereof and
supersedes any prior agreements with respect to the subject matter
hereof; provided, however, that Wainwright’s existing rights
pursuant to those certain Engagement Agreement dated as of October
10, 2017 and as of March 12, 2018 by and between the company and
Wainwright shall survive the execution of this Agreement. If any
provision of this Agreement is determined to be invalid or
unenforceable in any respect, such determination will not affect
such provision in any other respect, and the remainder of the
Agreement shall remain in full force and effect. This Agreement may
be executed in counterparts (including facsimile or electronic
counterparts), each of which shall be deemed an original but all of
which together shall constitute one and the same
instrument.

 

 

*********************

 

 

8

 

 

In acknowledgment
that the foregoing correctly sets forth the understanding reached
by Wainwright and the Company, please sign in the space provided
below, whereupon this letter shall constitute a binding Agreement
as of the date indicated above.

 

 

	
 

	
Very truly yours,
 

	
 

	
 

	
 

	
 

	
 

	
H.C.
WAINWRIGHT & CO., LLC

	
 

	
 

	
 

	
 

	
 

	

	
By:  

	
/s/  Edward
Silvera

	
 

	
 

	
Name: 

	
Edward
Silvera

	
 

	
 

	
Title: 

	
Chief Operating
Officer

	
 

 

 

 

 

Accepted and
Agreed:

 

 

INTELLIPHARMACEUTICS
INTERNATIONAL INC.

 

 

 

 
By:    

/s/ Andrew Patient    
                 
                 
   

Name: Andrew
Patient

Title: Chief
Financial Officer

	

 

9nemus_ex101.htm

EXHIBIT 10.1
  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
  
 MASTER DEVELOPMENT AND CLINICAL SUPPLY AGREEMENT
  
 This Master Development and Clinical Supply Agreement (“Agreement”) is made as of this 25th day of February 2019 (“Effective Date”), by and between Noramco, Inc., a Georgia corporation, with a place of business at [****] (“Noramco”), and NEMUS Bioscience, Inc., a Nevada corporation, with a place of business at [****] (“Client”). Client and Noramco may be referred to herein each as a “Party” or together as the “Parties”, as the context may require.
  
 RECITALS
  
 A. Client is a biopharmaceutical company focused on the discovery, development, and commercialization of cannabinoid-based therapeutics; 
  
 B. Noramco is engaged in the business of manufacturing and selling active pharmaceutical; and
  
 C. Client and Noramco desire to enter into this Agreement to provide the terms and conditions upon which Noramco will provide certain exclusive services to Client. 
  
 THEREFORE, in consideration of the mutual covenants, terms and conditions set forth below, the parties agree as follows:
  
 ARTICLE 1
 DEFINITIONS
  
 The following terms have the following meanings in this Agreement:
  
 1.1 “Affiliate(s)” means, with respect to Client or any third party, any corporation, firm, partnership or other entity that controls, is controlled by or is under common control with such entity; and with respect to Noramco, Noramco Pharma Solutions, Inc. and any corporation, firm, partnership or other entity controlled by it. For the purposes of this definition, “control” means the ownership of at least 50% of the voting share capital of an entity or any other comparable equity or ownership interest.
  
 1.2 “API” means [****] active pharmaceutical ingredient used in the performance of Services.
  
 1.3 “API Invention” has the meaning set forth in Section 6.1.
  
 1.4 “Applicable Laws” means, with respect to Client, all laws, ordinances, rules and regulations, currently in effect or enacted or promulgated during the Term, and as amended from time to time, of each jurisdiction in which Product is produced, marketed, distributed, used or sold by Client and that are applicable to such activities as engaged in by Client; and with respect to Noramco, all laws, ordinances, rules and regulations, currently in effect or enacted or promulgated during the Term, and as amended from time to time, of the jurisdiction in which Noramco performs Services. 
  
  	 
	
	 
 
	 

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
  
 1.5 “Noramco Indemnitees” has the meaning set forth in Section 8.2.
  
 1.6 “Noramco IP” has the meaning set forth in Section 6.1.
  
 1.7 “cGMP” means current good manufacturing practices within the meaning of the rules and regulations of the FDA, including 21 C.F.R. Parts 210 and 211, as applicable to the manufacturing, packaging, handling, storage and control of API, as amended from time to time during the Term.
  
 1.8 “cGLP” means current good laboratory practices within the meaning of the rules and regulations of the FDA, including 21 C.F.R. Part 58, as the same may be amended or re-enacted from time to time.
  
 1.9 “Client Indemnitees” has the meaning set forth in Section 8.1.
  
 1.10 “Client IP” has the meaning set forth in Section 6.1. 
  
 1.11 “Client-supplied Materials” means any materials to be supplied by or on behalf of Client to Noramco for use in the Services.
  
 1.12 “Confidential Information” has the meaning set forth in Section 5.2.
  
 1.13 “Discloser” has the meaning set forth in Section 5.1. 
  
 1.14 “Effective Date” has the meaning set forth in the introductory paragraph. 
  
 1.15 “Facility” means Noramco’s facility at [****].
  
 1.16 “Invention” has the meaning set forth in Section 6.1.
  
 1.17 “Losses” has the meaning set forth in Section 8.1.
  
 1.18 “Process Invention” has the meaning set forth in Section 6.1. 
  
 1.19 “Product” means any drug product, in any dosage form or strength, manufactured by or for Client that contains API(s).
  
 1.20 “Quality Agreement” means the agreement related to quality assurance and control to be entered into between the Parties in the form attached hereto as Exhibit C. 
  
 1.21 “Scope of Work” means the Services to be performed by Noramco and the responsibilities of the parties with respect to such work, as set forth in Exhibit A. 
  
 1.22 “Recipient” has the meaning set forth in Section 5.1. 
  
 1.23 “Regulatory Authority” means the international, federal, state or local governmental or regulatory bodies, agencies, departments, bureaus, courts or other entities responsible for (A) the regulation (including pricing) of any aspect of pharmaceutical or medicinal products intended for human use or (B) health, safety or environmental matters generally. 
  
  	 
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 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
   
 1.24 “Representatives” of an entity means such entity’s duly-authorized officers, directors, employees, agents, accountants, attorneys or other professional advisors.
  
 1.25 “Services” means all work, including analytical services, development services, pre-commercial/clinical manufacturing services, synthetic production performed by Noramco for Client pursuant to Exhibit A and the terms and conditions of this Agreement.
  
 1.26 “Specifications” means the API specification(s) contained in Exhibit B or as agreed upon by the Parties from time to time in writing and kept with the controlled documents of the API.
  
 1.27 “Term” has the meaning set forth in Section 11.1.
  
 ARTICLE 2
SCOPE
  
 2.1 Definition of Scope. Subject to the terms and conditions of this Agreement, Noramco shall use commercially reasonable efforts to perform the Services and deliver the API as set forth in the Scope of Work in Exhibit A including the Specifications set forth therein or otherwise agreed to by the Parties and Client shall purchase the Services exclusively from Noramco; provided that Noramco is not in breach of this Agreement. This Agreement shall supersede the terms of any purchase order, acknowledgement or delivery document. This Agreement shall not impair or affect the terms of any other development, license, manufacturing or packaging agreement between Client and Noramco or their respective Affiliates. 
  
 2.2 Amendments to Scope. Any material change in the Scope of this Agreement may require changes in the pricing and time lines, and shall require a written amendment to this Agreement. 
  
 2.3 Client Responsibilities. Client agrees that it shall provide complete and accurate information necessary for Noramco to perform its obligations under this Agreement, including, without limiting, review and approval of all Specifications for the API, any available qualified/validated analytical methods for the API. 
  
 2.4 Delivery. Noramco shall deliver the API to Client or its legal designate [****]. Title to such items shall transfer to Client upon [****]. 
  
 2.5 Reporting. The Parties agree to schedule regularly occurring meetings after initial synthetic trials are completed. The regularly occurring meetings (which may be via teleconference or other means mutually agreed to by the Parties) will take place over the duration of the project. The meetings will occur no less frequently than every two to three weeks to review the status of the Services. At each such meeting, the Parties will discuss upcoming milestones, priorities, and any other open issues Client may wish to address. 
  
 2.6 Supply Agreement. The Parties agree to begin negotiating an exclusive commercial supply agreement for the API two (2) years from the Effective Date of this Agreement or upon the start of Client’s Phase II clinical trial of the Product, whichever occurs sooner. Such agreement shall be subject to good faith negotiations by the Parties, provided, that if the Parties are unable to mutually agree to the terms that will be applicable to the supply agreement within six (6) months of the commencement of negotiations, Client shall have the right to have one more third party supply the API to Client. 
  
  	 
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 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
  
 ARTICLE 3
 PAYMENTS
  
 3.1 Price. The price of the API and Services to be sold to Client under this Agreement (“Price”) is as set forth in Exhibit A. 
  
 3.2 Invoicing. Subject to the Assumptions in Exhibit A, Noramco shall issue Client an initial invoice for [****] of the total Price of the purchase order for Services and API upon Noramco’s receipt of Client’s purchase order and Noramco shall issue Client a second invoice for [****] of the total Price of the purchase order for Services and API hereunder upon shipping the API. Invoices shall be submitted by fax or email as Client may specify in writing from time to time, and a copy of the invoice shall also be enclosed in the applicable shipment. Each invoice shall, to the extent applicable, identify Client’s Purchase Order number, API batch numbers, names and quantities, Price, freight charges and the total amount to be remitted by Client.
  
 3.3 Payment Terms. Client shall pay Noramco all amounts due hereunder within [****] from Client’s receipt of invoice. Client shall make payment in U.S. dollars. If any payment is not received by Noramco within [****] of its due date, then Noramco may, in addition to any other remedies available at equity or in law, charge interest on the outstanding sum from the due date (both before and after any judgment) at [****] until paid in full (or, if less, the maximum amount permitted by Applicable Laws).
  
 ARTICLE 4
 REGULATORY
  
 4.1 Recordkeeping. Unless the parties otherwise agree in writing, Noramco shall maintain materially complete and accurate batch logs, laboratory data, reports and other technical records, including, without limitation, master batch records, complete batch records, analytical testing methods, and method qualification/validation protocols, relating to APIs in accordance with Noramco standard operating procedures. Such information shall be maintained for the minimum period required by Applicable Laws. After this time period, upon Client’s written request and at Client’s sole expense, Noramco shall provide to Client copies of applicable specific laboratory notebooks, laboratory notebook pages or other documentation, as mutually agreed upon in writing by the Parties, for retention in Client’s archives; and for cGMP Services, testing results or other documentation as mutually agreed upon in writing by the Parties.
  
 4.2 Regulatory Compliance. Noramco shall obtain and maintain all permits and licenses with respect to general Facility operations, including the Services, required by any Regulatory Authority in the jurisdiction in which Noramco performs Services and perform the Services in accordance with standard and accepted cGLPs or cGMPs, as applicable. Client shall obtain and maintain all other Regulatory Authority approvals, authorizations and certificates, including those with respect to Product. Client shall not identify Noramco in any regulatory filing or submission without Noramco’s prior written consent. Such consent shall not be unreasonably withheld and shall be memorialized in a writing signed by authorized representatives of both parties. The parties intend and commit to cooperate to allow each party to satisfy its obligations under Applicable Laws relating to performance of this Agreement.
  
  	 
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 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
   
 4.3 Governmental Inspections and Requests. Each party shall promptly advise the other party of any inspection or inquiry by any Regulatory Authority concerning the API. 
  
 4.4 Client Facility Audits. 
  
 A. During the Term, and following the Term if necessary in connection with a regulatory challenge, requirement or investigation, Client’s Representatives shall be granted access upon reasonable notice and reasonable times during regular business hours to the portion of the Facility where Noramco performs Services. 
  
 B. Client’s Representatives shall be required to sign Noramco’s standard visitor confidentiality agreement prior to being allowed access to the Facility. Such Representatives shall comply with the Facility’s rules and regulations as provided to Client’s Representatives by Noramco and Client shall be responsible for such Representatives actions or activity while on Noramco’s premises. 
  
 ARTICLE 5
 CONFIDENTIALITY AND NON-USE
  
 5.1 Definition. As used in this Agreement, the term “Confidential Information” includes all information furnished by or on behalf of Noramco or Client (the “Discloser”), its Affiliates or any of its or their respective Representatives, to the other party (the “Recipient”), its Affiliates or any of its or their respective Representatives, whether furnished before, on or after the Effective Date and furnished in any form, including written, verbal, visual, electronic or in any other media or manner and information acquired by observation or otherwise during any site visit at the other party’s facility. Confidential Information includes all proprietary technologies, know-how, trade secrets, discoveries, inventions and any other intellectual property (whether or not patented), analyses, compilations, business or technical information and other materials prepared by either party, their respective Affiliates, or any of its or their respective Representatives, containing or based in whole or in part on any information furnished by the Discloser, its Affiliates or any of its or their respective Representatives. Confidential Information also includes the existence of this Agreement and its terms.
  
 5.2 Exclusions. Notwithstanding Section 5.1, Confidential Information does not include information that (A) is or becomes generally available to the public or within the industry to which such information relates other than as a result of a breach of this Agreement, (B) is already known by the Recipient at the time of disclosure as evidenced by the Recipient’s written records, (C) becomes available to the Recipient on a non-confidential basis from a source that is entitled to disclose it on a non-confidential basis or (D) was or is independently developed by or for the Recipient without reference to the Confidential Information of the Discloser as evidenced by the Recipient’s written records.
  
  	 
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 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
  
 5.3 Mutual Obligation. The Recipient agrees that it will not use the Discloser’s Confidential Information except in connection with the performance of its obligations hereunder and will not disclose, without the prior written consent of the Discloser, Confidential Information of the Discloser to any third party, except that the Recipient may disclose the Discloser’s Confidential Information to any of its Affiliates and its or their respective Representatives that (A) need to know such Confidential Information for the purpose of performing under this Agreement, (B) are advised of the contents of this Article and (C) are bound to the Recipient by obligations of confidentiality at least as restrictive as the terms of this Article. Each party shall be responsible for any breach of this Article by its Affiliates or any of its or their respective Representatives.
  
 5.4 Permitted Disclosure. The Recipient may disclose the Discloser’s Confidential Information to the extent required by law or regulation; provided, that prior to making any such legally required disclosure, the Recipient shall give the Discloser as much prior notice of the requirement for and contents of such disclosure as is practicable under the circumstances. Any such disclosure, however, shall not relieve the Recipient of its obligations contained herein.
  
 5.5 No Implied License. Except as expressly set forth in Section 6.1, the Recipient will obtain no right of any kind or license under any Confidential Information of the Discloser, including any patent application or patent, by reason of this Agreement. All Confidential Information will remain the sole property of the Discloser, subject to Article 7.
  
 5.6 Return of Confidential Information. Upon expiration or termination of this Agreement, the Recipient will (and will cause its Affiliates and its and their respective Representatives to) cease its use and, upon written request, within 30 days either return or destroy (and certify as to such destruction) all Confidential Information of the Discloser, including any copies thereof, except for a single copy which may be retained for the sole purpose of ensuring compliance with its obligations under this Agreement.
  
 5.6 Survival. The obligations of this Article will terminate 5 years from the expiration or termination of this Agreement, except with respect to trade secrets, for which the obligations of this Article will continue for so long as such information remains a trade secret under applicable law.
  
 ARTICLE 6
 INTELLECTUAL PROPERTY
  
 6.1 Definitions. For purposes hereof, “Client IP” means all intellectual property and embodiments thereof owned by or licensed to Client as of the date hereof or developed by Client other than in connection with this Agreement; “Noramco IP” means all intellectual property and embodiments thereof owned by or licensed to Noramco as of the date hereof or developed by Noramco other than in connection with this Agreement; “Invention” means any intellectual property developed by either party or jointly by the parties in connection with this Agreement; “API Inventions” means any Invention that relates exclusively to the Client IP; and “Process Inventions” means any Invention, other than an API Invention, that relates exclusively to the Noramco IP or relates to developing, formulating, manufacturing, filling, processing, packaging, analyzing or testing pharmaceutical products generally.
  
  	 
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 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
  
 6.2 Ownership of Intellectual Property. All Client IP and API Inventions shall be owned solely by Client and no right therein is granted to Noramco under this Agreement, except that Noramco shall have a non-exclusive, royalty-free license to such items solely to the extent necessary to perform its obligations under this Agreement. Noramco agrees to assign or cause to be assigned, and hereby assigns, all right, title and interest in and to the API Inventions, including any intellectual property rights embodied therein, to Client. All Noramco IP and Process Inventions shall be owned solely by Noramco and no right therein is granted to Client under this Agreement. The parties shall cooperate to achieve the allocation of rights to Inventions anticipated herein and each party shall be solely responsible for costs associated with the protection of its intellectual property.
  
 6.3 Ownership of Data. Except as set forth in Section 6.2, upon request all data and information resulting from the conduct of the Services shall be delivered to Client by Noramco, the sole property of Client, and shall be subject to Client’s exclusive use, commercial or otherwise.
  
 ARTICLE 7
 REPRESENTATIONS AND WARRANTIES
  
 7.1 Noramco. Noramco represents, warrants and undertakes to Client that: 
  
 A. Noramco shall perform all Services in accordance with Applicable Laws and in accordance with all of the terms and conditions set forth in the Quality Agreement;
  
 B. Noramco will not in the performance of its obligations under this Agreement use the services of any person debarred or suspended under 21 U.S.C. §335(a) or (b) and Noramco shall immediately notify Client of any change in the status of the representation and warranty set forth in this Section 7.1(B); and
  
 C. at the time of delivery by Noramco as provided in Section 2.4, API shall have been manufactured in accordance with Applicable Laws and in conformance with Specifications and the requirements set forth in the Quality Agreement and shall not be adulterated, misbranded or mislabeled within the meaning of Applicable Laws.
  
 7.2 Client. Client represents, warrants and undertakes to Noramco that: 
  
 A. all results, data, samples and other materials and deliverables provided to Client by Noramco shall be held, used and disposed of by or on behalf of Client in accordance with all Applicable Laws (including, in connection with any such items that are not labeled, 21 CFR § 201.150); specifically, Client shall not permit the human consumption of any such items, except to the extent such consumption occurs in the course of clinical studies that expressly permit such use and that have been approved by appropriate governmental authorities; and Client will otherwise comply with all Applicable Laws applicable to Client’s performance under this Agreement;
  
 B. Client has all necessary authority to use and to permit Noramco to use pursuant to this Agreement all intellectual property provided by Client or approved by Client related to API Inventions and Client IP, and the performance of Services in connection with the foregoing, including any copyrights, trademarks, trade secrets, patents, inventions and developments; there are no patents owned by others related to the Client IP utilized with the Product that would be infringed or misused by Client’s performance of the Agreement; and, to its knowledge, no trade secrets or other proprietary rights of others related to the Client IP utilized with the Product that would be infringed or misused by Client’s performance of this Agreement; and
  
  	 
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 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
  
 C. when performed in accordance with the terms of this Agreement, Noramco’s use of Client IP and API Inventions to perform the Services under this Agreement will not violate or infringe upon any trademark, tradename, copyright, patent, trade secret, or other intellectual property or other right held by any person or entity.
  
 7.3 Limitations. THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS ARTICLE ARE THE SOLE AND EXCLUSIVE REPRESENTATIONS AND WARRANTIES MADE BY EACH PARTY TO THE OTHER PARTY AND NEITHER PARTY MAKES ANY OTHER REPRESENTATIONS, WARRANTIES OR GUARANTEES OF ANY KIND WHATSOEVER, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE.
  
 ARTICLE 8
 INDEMNIFICATION
  
 8.1 Indemnification by Noramco. Noramco shall indemnify, defend and hold harmless Client, its Affiliates, and their respective directors, officers and employees (“Client Indemnitees”) from and against any and all suits, claims, losses, demands, liabilities, damages, costs and expenses (including reasonable attorneys’ fees and reasonable investigative costs) in connection with any suit, demand or action by any third party (“Losses”) arising out of or resulting from (A) any breach of its representations, warranties or obligations set forth in this Agreement or (B) any negligence or willful misconduct by Noramco; in each case except to the extent that any of the foregoing arises out of or results from any Client Indemnitee’s negligence, willful misconduct or breach of this Agreement.
  
 8.2 Indemnification by Client. Client shall indemnify, defend and hold harmless Noramco, its Affiliates, and their respective directors, officers and employees (“Noramco Indemnitees”) from and against any and all Losses arising out of or resulting from (A) any breach of its representations, warranties or obligations set forth in this Agreement, (B) any manufacture, packaging, sale, promotion, distribution, use of or exposure to Product, including product liability or strict liability, (C) the conduct of any clinical trials utilizing any material or Product, (D) any negligence or willful misconduct by Client; in each case except to the extent that any of the foregoing arises out of or results from any Noramco Indemnitee’s negligence, willful misconduct or breach of this Agreement. If the Product is a first to file generic, then Client shall indemnify and hold harmless the Noramco Indemnitees from and against any and all Losses arising out of or resulting from any federal regulatory filings by or on behalf of Client or any of its Affiliates, including Losses incurred by Noramco arising from filings under 21 U.S.C. 355 and/or Section 505 of the Food and Drug Act (or non-U.S. equivalents) and related claims or proceedings (including Losses associated with Noramco’s obligation to respond to third party subpoenas).
  
 8.3 Indemnification Procedures. All indemnification obligations in this Agreement are conditioned upon the party seeking indemnification (A) promptly notifying the indemnifying party of any claim or liability of which the party seeking indemnification becomes aware (including a copy of any related complaint, summons, notice or other instrument); provided, that failure to provide such notice within a reasonable period of time shall not relieve the indemnifying party of any of its obligations hereunder except to the extent the indemnifying party is prejudiced by such failure, (B) allowing the indemnifying party, if the indemnifying party so requests, to conduct and control the defense of any such claim or liability and any related settlement negotiations (at the indemnifying party’s expense), (C) cooperating with the indemnifying party in the defense of any such claim or liability and any related settlement negotiations (at the indemnifying party’s expense) and (D) not compromising or settling any claim or liability without prior written consent of the indemnifying party. 
  
  	 
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 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
  
 ARTICLE 9
 LIMITATIONS OF LIABILITY
  
 9.1 NORAMCO SHALL HAVE NO LIABILITY UNDER THIS AGREEMENT FOR ANY AND ALL CLAIMS FOR LOST, DAMAGED OR DESTROYED CLIENT-SUPPLIED MATERIALS, WHETHER OR NOT SUCH CLIENT-SUPPLIED MATERIALS ARE USED IN THE SERVICES OR INCORPORATED INTO API, EXCEPT TO THE EXTENT SUCH LOSS, DAMAGE OR DESTRUCTION IS CAUSED BY NORAMCO’S GROSS NEGLIGENCE, MISCONDUCT OR BREACH OF THE REQUIREMENTS SET FORTH IN THIS AGREEMENT OR THE QUALITY AGREEMENT.
  
 9.2 EXCEPT WITH REGARD TO AMOUNTS PAYABLE BY A PARTY IN CONNECTION WITH THE INDEMNIFICATION OBLIGATIONS HEREUNDER, EACH PARTY’S TOTAL LIABILITY UNDER THIS AGREEMENT SHALL IN NO EVENT EXCEED [****].
  
 9.3 NOTWITHSTANDING THE FOREGOING, THE TOTAL LIABILITY AMOUNT CALCULATED IN 9.1 OR 9.2 SHALL BE REDUCED [****]. 
  
 9.4 NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES OR LOSS OF REVENUES, PROFITS OR DATA ARISING OUT OF PERFORMANCE UNDER THIS AGREEMENT, WHETHER IN CONTRACT OR IN TORT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
  
  	 
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 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
  
 ARTICLE 10
 INSURANCE
  
 Each Party shall, at its own expense, obtain and maintain during the Term and for three (3) years thereafter, insurance on a claims-made basis, in amounts and types that would reasonably be expected to cover any liabilities arising from such Party’s indemnification obligations under this Agreement. Such insurance shall be maintained with companies having an A.M. Best’s rating of A- VII or better. Each Party shall provide the other Party, upon request, with certificates of insurance evidencing the insurance hereunder. Each Party shall name the other Party and its officers, directors, employees and agents as additional insureds on all applicable policies of insurance hereunder.
  
 ARTICLE 11
 TERM AND TERMINATION
  
 11.1 Term. This Agreement shall commence on the Effective Date and shall continue for [****] unless earlier terminated in accordance with Section 11.2 (the “Term”).
  
 11.2 Mutual Termination Rights. Either party may terminate this Agreement immediately without further action if (A) the other party files a petition in bankruptcy, or enters into an agreement with its creditors, or applies for or consents to the appointment of a receiver, administrative receiver, trustee or administrator, or makes an assignment for the benefit of creditors, or suffers or permits the entry of any order adjudicating it to be bankrupt or insolvent and such order is not discharged within 30 days, or takes any equivalent or similar action in consequence of debt in any jurisdiction; or (B) the other party materially breaches any of the provisions of this Agreement, and such breach is not cured within 45 days after the giving of written notice requiring the breach to be remedied; provided, that in the case of a failure of Client to make payments in accordance with the terms of this Agreement, Noramco may terminate this Agreement if such payment breach is not cured within 30 days of receipt of notice of non-payment from Noramco. In addition, either Party may terminate this Agreement at any time upon four (4) months prior written notice to Noramco. 
  
 11.3 Effect of Termination. Expiration or termination of this Agreement shall be without prejudice to any rights or obligations that accrued to the benefit of either party prior to such expiration or termination. Client shall pay Noramco [****]. 
  
 11.4 Survival. The rights and obligations of the parties shall continue under Articles 5 (Confidentiality and Non-Use), 6 (Intellectual Property), 8 (Indemnification), 9 (Limitations of Liability), 10 (Insurance), 12 (Notice), 13 (Miscellaneous) in each case in accordance with their respective terms, notwithstanding expiration or termination of this Agreement.
  
  	 
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 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
  
 ARTICLE 12
 NOTICE
  
 All notices and other communications hereunder shall be in writing and shall be deemed given: (A) when delivered personally or by hand; (B) when delivered by facsimile transmission (receipt verified); (C) when received or refused, if sent by registered or certified mail (return receipt requested), postage prepaid; or (D) when delivered if sent by express courier service; in each case to the parties at the following addresses (or at such other address for a party as shall be specified by like notice; provided, that notices of a change of address shall be effective only upon receipt thereof):
  
 To Client: 
 [****]
 To Noramco: 
 [****]
  
 ARTICLE 13
 MISCELLANEOUS
  
 13.1 Entire Agreement; Amendments. This Agreement, including any other attachments, any Quality Agreements executed hereunder, and any amendments to any of the foregoing, constitutes the entire understanding between the parties, and supersedes any contracts, agreements or understandings (oral or written) of the parties. For the avoidance of doubt, this Agreement does not supersede any existing generally applicable confidentiality agreement between the parties as it relates to time periods prior to the date hereof or to business dealings not covered by this Agreement. No term of this Agreement may be amended except upon written agreement signed by both parties, unless otherwise expressly provided in this Agreement.
  
 13.2 Captions. The captions in this Agreement are for convenience only and are not to be interpreted or construed as a substantive part of this Agreement.
  
 13.3 Further Assurances. The parties agree to execute, acknowledge and deliver such further instruments and to take all such other incidental acts as may be reasonably necessary or appropriate to carry out the purpose and intent of this Agreement.
  
 13.4 No Waiver. Failure by either party to insist upon strict compliance with any term of this Agreement in any one or more instances will not be deemed to be a waiver of its rights to insist upon such strict compliance with respect to any subsequent failure.
  
 13.5 Severability. If any term of this Agreement is declared invalid or unenforceable by a court or other body of competent jurisdiction, the remaining terms of this Agreement will continue in full force and effect.
  
 13.6 Independent Contractors. The relationship of the parties is that of independent contractors, and neither party will incur any debts or make any commitments for the other party except to the extent expressly provided in this Agreement. Nothing in this Agreement is intended to create or will be construed as creating between the parties the relationship of joint ventures, co-partners, employer/employee or principal and agent. Neither party shall have any responsibility for the hiring, termination or compensation of the other party’s employees or contractors or for any employee benefits of any such employee or contractor.
  
  	 
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 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
  
 13.7 Successors and Assigns. This Agreement will be binding upon and inure to the benefit of the parties, their successors and permitted assigns. Neither party may assign this Agreement, in whole or in part, without the prior written consent of the other party, except that either party may, without the other party’s consent (but subject to prior written notice), assign this Agreement in its entirety to an Affiliate or to a successor to substantially all of the business or assets of the assigning party or the assigning party’s business unit responsible for performance under this Agreement. 
  
 13.8 No Third Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any person or entity other than the parties named herein and their respective successors and permitted assigns.
  
 13.9 Governing Law. This Agreement shall be governed by and construed under the laws of the State of Delaware, USA, excluding its conflicts of law provisions. The United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement.
  
 13.10 Alternative Dispute Resolution. Any dispute that arises between the parties in connection with this Agreement shall first be presented to the senior executives of the parties for consideration and resolution. If such executives cannot reach a resolution of the dispute within a reasonable time, then such dispute shall be resolved by binding alternative dispute resolution in accordance with the then existing commercial arbitration rules of International Institute for Conflict Prevention and Resolution, 30 East 33rd Street, 6th Floor, New York, NY 10016. Arbitration shall be conducted in the jurisdiction of the defendant party, in the English language.
  
 13.11 Prevailing Party. In any dispute resolution proceeding between the parties in connection with this Agreement, the prevailing party will be entitled to recover its reasonable attorney's fees and costs in such proceeding from the other party.
  
 13.12 Publicity. Neither party will make any press release or other public disclosure regarding this Agreement or the transactions contemplated hereby without the other party's express prior written consent, except as required under Applicable Laws, by any governmental agency or by the rules of any stock exchange on which the securities of the disclosing party are listed, in which case the party required to make the press release or public disclosure shall use commercially reasonable efforts to obtain the approval of the other party as to the form, nature and extent of the press release or public disclosure prior to issuing the press release or making the public disclosure. In addition, neither party shall use the other Party’s name in a manner that could be construed as an endorsement of the other Party’s Product, including any scientific conclusion as to safety or efficacy.
  
  	 
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 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
  
 13.13 Force Majeure. Except as to payments required under this Agreement, neither party shall be liable in damages for, nor shall this Agreement be terminable or cancelable by reason of, any delay or default in such party’s performance hereunder if such default or delay is caused by events beyond such party’s reasonable control, including acts of God, law or regulation or other action or failure to act of any government or agency thereof, war or insurrection, civil commotion, destruction of production facilities or materials by earthquake, fire, flood or weather, labor disturbances, epidemic or failure of suppliers, vendors, public utilities or common carriers; provided, that the party seeking relief under this Section shall immediately notify the other party of such cause(s) beyond such party’s reasonable control. The party that may invoke this Section shall use commercially reasonable efforts to reinstate its ongoing obligations to the other party as soon as practicable. If the cause(s) shall continue unabated for 180 days, then both parties shall meet to discuss and negotiate in good faith what modifications to this Agreement should result from such cause(s). 
  
 13.14 Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument. Any photocopy, facsimile or electronic reproduction of the executed Agreement shall constitute an original.
  
 [Signature page follows]
  
  	 
	13
	 
 
	 

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
  
 IN WITNESS WHEREOF, the parties have caused their respective duly authorized representatives to execute this Agreement effective as of the Effective Date.
  
  
  	 NEMUS Bioscience, Inc.
	 	Noramco, Inc. 	 
	  
	  
	  
	  
	  
	  

	 By:
	[****]	 	By:	[****]	 
	 Name:
	[****]	 	Name:	[****] 	 
	 Title:
	[****]	 	Title:	[****] 	 
	 Date:
	 February 25, 2019 
	  
	 Date: 
	 February 26, 2019 
	  

  
  
 Signature Page to Master Development and Clinical Supply Agreement
  
  	 
	
	 
 
	 

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
  
 Exhibit A
  
 Scope of Work
  
 Services:
  
 1. Synthetic production of [****] of API under cGLP conditions, analytical testing, and delivery of a certificate of analysis.
  
 2. Synthetic production of [****] of API under cGMP conditions and suitable for phase 1 human clinical trials.
  
  	  
	a.	Route screening to support the phase 1 supply.
	  
	  
	  

	  
	b.	Analytical development in support of phase 1 Product release testing, method qualification/validation for the phase 1 API, and a certificate of analysis.
	  
	  
	  

	  
	c.	A phase 1 stability study to support API retest period and container closure selection of the clinical trial material. The stability study will encompass two ICH conditions, one for long-term and one for accelerated stability over a minimum study duration of 12 months. Stability testing intervals will be aligned with typical frequency as outlined in ICH Q1 (e.g. initial/release, 3 months, 6 months, 9 months and 12 months pull at the long-term condition). The stability study may be extended, with two additional pulls at 18 months and 24 months at an additional cost.

  
 Testing:
 Full Analytical Certificate of Analysis: Chemical Identification, Solvent Impurities, Inorganic Impurities, Chromatographic Impurities, Micro Limits Testing. Validated/qualified methods for release of the phase 1 supply.
  
 Assumptions:
 1. Noramco’s manufacturing activities for [****] of material would be performed under cGMP conditions and considered suitable for phase I clinical trials in humans. The cGMP clinical material will be manufactured as a non- sterile parenteral grade.
  
 2. The initial [****] cGLP non-GMP material may not be used for human use.
  
 3. Total volume of material may be delivered in multiple batches
  
 4. This offer is contingent on Noramco being able to secure starting material from its existing supply chain.
  
 5. This Agreement is dependent on approval of appropriate US DEA quota to execute the campaign for production of [****] cGMP material.
  
 6. If the work cannot be completed in the time allotted, then Noramco will notify Client.
  
 7. If Noramco deems the chemistry to be unsafe at any time, Noramco reserves the right to stop research and notify Client within 5 business days.
  
 8. New IP or trade secret(s) specifically relating to Client’s specification API, as described in the scope of work under this proposal, will belong to Client.
  
 9. If Client has available qualified/validated analytical methods for API, Noramco will utilize the analytical package for release of cGMP clinical use material. Otherwise, Noramco will develop/qualify analytical methods.
  
 10. CMC information will be provided to Client for the clinical regulatory filing, as requested. 
  
  	 
	
	 
 
	 

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
  
 Price for API and Services: 
  
 [****] GLP, non-GMP API: $[****]
 [****] GMP API: $[****] ($[****]) *
 Total Price: $[****]
  
 *Price above includes preparation of cGMP documentation, plant time, analytical method development/qualification/transfer, analytical release testing, stability testing (12 months), R&D, etc. The material will be a manufactured as a non-sterile parenteral grade (NSP), which could be suitable for a sterile dosage form.
  
 Timing: [****] GLP, non-GMP material: [****] from receipt of PO
 [****] GMP material: [****]*
  
 *Manufacturing window is flexible and will be locked upon receipt of a PO.
  
  	 
	
	 
 
	 

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
  
 Exhibit B
 Specification
  
 For phase 1 clinical supply, Noramco follows principles outlined in, “FDA Guidance for Industry: CGMP for Phase 1 Investigational Drugs”. Noramco will conduct laboratory testing of the phase 1 investigational API to evaluate quality attributes including those that define the identity, potency, and purity, as appropriate. Specified attributes will be monitored, and acceptance criteria applied appropriately. For known safety-related concerns, specifications will be established and met. For some phase 1 investigational drug attributes, all relevant acceptance criteria may not be known at this stage of development. Below are example draft specifications which will serve as a starting point for Phase 1 development.
  
 [****]
  
 Following the execution of this document and receipt of PO, Noramco will initiate research and development for the phase 1 supply of this API at which point some specifications may be revised, as appropriate. Prior to initiation of phase 1 clinical manufacturing, Nemus will approve Noramco’s proposed specifications. All methods used in product release and stability testing will be appropriated qualified or verified following Noramco’s internal procedures for clinical phase 1.
  
  	 
	
	 
 
	 

  
 [****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
  
 Exhibit C
 Quality Agreement

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