Document:

inzy-ex1021_356.htm

 

 

Exhibit 10.21

January 29, 2021

Deborah Wenkert, MD

 

 

Dear Debbie:

On behalf of Inozyme Pharma Inc. (the “Company”), I am pleased to offer you employment with the Company, commencing on February 2, 2021 (the “Effective Date”).  Until the Effective Date, the Consulting Agreement, dated October 29, 2020, by and between the Company and Wenkert & Young, LLC (the “Consulting Agreement”), will remain in full force and effect and continue to govern your provision of services to the Company and you and the Company mutually agree that the Consulting Agreement will terminate on the Effective Date.  This letter agreement (the “Letter Agreement”) sets forth the terms of your employment with the Company, should you accept our offer.

1.Position and Duties.  You will be employed to serve as Senior Vice President and Chief Medical Officer as of the Effective Date.  You will be employed on a full-time basis, and you will report to the Company’s Chief Executive Officer and have such duties and responsibilities as are customary for such position.  You agree to devote your best efforts, skill, knowledge, attention and energies to the advancement of the Company’s business and interests and to the performance of your duties and responsibilities as an employee of the Company. You agree to abide by the rules, regulations, personnel practices and policies of the Company and any changes therein that may be adopted from time to time by the Company.  You shall have the flexibility to work remotely from your home as your duties permit, but at the request of the Chief Executive Officer and/or as necessitated by business needs, you shall also work out of the Company’s office in Boston, Massachusetts (current expectation is up to one week per month but may vary in the Company’s discretion based on business needs) and travel to other locations; provided, however, that the primary location where you perform work shall become the Boston area should the Board of Directors (the “Board”) so determine at any time on or after the date that is 18 months following the Effective Date, in which case the Board shall provide you with at least 90 days’ notice of such change and the Company shall provide you with relocation assistance, the amount and terms and conditions of which shall be determined by the Board in its sole discretion.    

2.Base Salary.  Your base salary will be at the rate of eighteen thousand one hundred twenty-five dollars ($18,125.00) per regular semi-monthly pay period (annualized rate of four hundred thirty five thousand dollars ($435,000.00)), subject to tax and other withholdings as required by law, and will be paid in accordance with the Company’s regularly established payroll procedure.  Such base salary may be adjusted from time to time in accordance with normal business practice and in the sole discretion of the Company.  

 

 

 

3.Discretionary Bonus.  Following the end of each calendar year, and subject to the approval of the Company’s Board of Directors (the “Board”) (or a committee thereof), you will be eligible for a discretionary retention and performance bonus, targeted at forty percent (40%) of your gross base pay actually earned during the applicable calendar year, based on your individual performance and the Company’s performance during the applicable calendar year, as determined by the Company in its sole discretion (the “Discretionary Bonus”).  You must be an active employee of the Company on the date any bonus is distributed in order to be eligible for and to earn any bonus award, as it also serves as an incentive to remain employed by the Company.  Any bonus hereunder will be awarded and paid before March 15th of the calendar year following that to which such bonus relates, and will be subject to tax and other withholdings as required by law.  

4.Benefits and Expenses.  

	
 
	
a.
	
You may participate in any and all benefit programs that the Company establishes and makes available to its employees from time to time, provided you are eligible under (and subject to all provisions of) the plan documents governing those programs.  The benefit programs made available by the Company, and the rules, terms and conditions for participation in such benefit programs, may be changed by the Company at any time without advance notice (other than as required by such programs or under law).    

	
 
	
b.
	
All reasonable business expenses that are documented by you and incurred in the ordinary course of business will be reimbursed in accordance with the Company’s standard policies and procedures. Notwithstanding the foregoing, unless the Board otherwise determines (i) for up to 18 months following the Effective Date travel expenses for travel between your home and the Company’s Boston area headquarters will be reimbursed in accordance with the Company’s Travel and Expense Policy and (ii) beginning 18 months following the Effective Date, the Company will no longer reimburse you for travel expenses for travel between your home and the Company’s Boston area headquarters.       

5.Vacation.  You will be eligible for paid vacation time in accordance with Company policy.

6.Equity.  Subject to the approval of the Board of Directors of the Company, the Company will grant to you, effective on or after your first day of employment, an incentive stock option (the “Option”) under the Company’s 2020 Stock Incentive Plan (the “Plan”) for the purchase of an aggregate of 100,000 shares of common stock of the Company at a price per share equal to the fair market value of the common stock on the date of grant of the Option.  The Option shall be subject to all terms, vesting schedules and other provisions set forth in the Plan and in a separate option agreement.  

7.Severance Benefits.  You shall be eligible to receive the following severance benefits in accordance with the terms and conditions set forth below:

	
 
	
a.
	
Termination by the Company without Cause or by You for Good Reason Not In Connection with a Change In Control.  If your employment is terminated by the Company without Cause or you terminate your employment for Good Reason (each as defined below) and such termination does not take place during the twelve (12) month period following a Change in Control (as defined below), and provided you execute and allow to become effective (within 60 days following the termination or such shorter period as may be directed by the Company) a separation and release of claims agreement in a form to be provided by the Company on or about the termination (which will include, at a minimum, a release of all releasable claims, non-disparagement and cooperation obligations, a reaffirmation of your continuing obligations under any existing restrictive covenant agreements, and, to the fullest extent permitted by applicable law, an agreement not to compete with the Company for twelve (12) months following your separation from employment) (a “Release Agreement”), the Company will provide you with the following severance benefits (subject to the terms of Appendix A hereto):  

 

 

 

	
 
		

	
 
	
i.
	
The Company will pay you as severance pay an amount equivalent to nine (9) months of your then current base salary, less all applicable taxes and withholdings, which severance pay will be paid in installments in accordance with the Company’s regular payroll practices beginning in the Company’s first regular payroll cycle after the Release Agreement becomes effective; provided, however, that if the 60th day referenced above occurs in the calendar year following the date of your termination, then the severance payments shall begin no earlier than January 1 of such subsequent calendar year. 

	
 
	
ii.
	
Should you timely elect and be eligible to continue receiving group medical coverage pursuant to the “COBRA” law, and so long as the Company can provide such benefit without violating the nondiscrimination requirements of applicable law, the Company will continue to pay the share of the premium for such coverage that is paid by the Company for active and similarly-situated employees who receive the same type of coverage until the earlier of (x) nine (9) months following your termination date, or (y) the date upon which you commence full-time employment (or employment that provides you with eligibility for healthcare benefits substantially comparable to those provided by the Company) with an entity other than the Company.  If applicable, the remaining balance of any premium costs shall timely be paid by you on a monthly basis for as long as, and to the extent that, you remain eligible for COBRA continuation. 

	
 
	
b.
	
Termination by the Company without Cause or by You for Good Reason In Connection with a Change In Control.  If your employment is terminated by the Company without Cause or you terminate your employment for Good Reason and such termination takes place during the twelve (12) month period following a Change in Control (as defined below), and provided you execute and allow to become effective a Release Agreement, the Company will provide you with the following severance benefits (subject to the terms of Appendix A hereto):  

 

 

 

	
 
	
i.
	
The Company will pay you as severance pay an amount equivalent to twelve (12) months of your then current base salary, less all applicable taxes and withholdings, which severance pay will be paid in installments in accordance with the Company’s regular payroll practices beginning in the Company’s first regular payroll cycle after the Release Agreement becomes effective; provided, however, that if the 60th day referenced above occurs in the calendar year following the date of your termination, then the severance payments shall begin no earlier than January 1 of such subsequent calendar year. 

	
 
	
ii.
	
Should you timely elect and be eligible to continue receiving group medical coverage pursuant to the “COBRA” law, and so long as the Company can provide such benefit without violating the nondiscrimination requirements of applicable law, the Company will continue to pay the share of the premium for such coverage that is paid by the Company for active and similarly-situated employees who receive the same type of coverage until the earlier of (x) twelve (12) months following your termination date, or (y) the date upon which you commence full-time employment (or employment that provides you with eligibility for healthcare benefits substantially comparable to those provided by the Company) with an entity other than the Company.  If applicable, the remaining balance of any premium costs shall timely be paid by you on a monthly basis for as long as, and to the extent that, you remain eligible for COBRA continuation.

	
 
	
iii.
	
The Company will pay you 100% of your annual target Discretionary Bonus, less all applicable taxes and withholdings, for the year in which your termination occurs in a lump sum on the date the first installment of severance pay is paid.  For the avoidance of doubt, for purposes of calculating the amount due under this Section 7(b)(iii), your target Discretionary Bonus shall be equal to the percent of your annualized base salary at the time of your termination that is set forth in Section 3.

	
 
	
iv.
	
All outstanding and unvested stock options and other equity awards in each case that vest solely based on continued service that are then held by you shall become fully vested and exercisable and, with respect to any stock options then held by you, those options shall remain exercisable for the period of time set forth in the applicable grant agreement.

	
 
	
c.
	
Definitions.  For purposes of this Letter Agreement:

	
 
	
i.
	
“Cause” means any of: (a) your conviction of, or plea of guilty or nolo contendere to, any crime involving dishonesty or moral turpitude or any felony; (b) a good faith finding by the Company that you have (i) engaged in dishonesty, willful misconduct or gross negligence, (ii) committed an act that materially injures or would reasonably be expected to materially injure the reputation, business or business relationships of the Company, (iii) materially breached the terms of any agreement between you and the Company, including without limitation this Letter Agreement, the Restrictive 

 

 

 

	
 
		
Covenant Agreement (as defined below) or any other restrictive covenant or confidentiality agreement with the Company; (iv) failed to timely enter into a non-competition and non-solicitation agreement as described in Section 9 below; or (v) failed or refused to comply in any material respect with the Company’s material policies or procedures.

	
 
	
ii.
	
“Good Reason” means the occurrence, without your prior written consent, of any of the following events: (a) a material reduction in your authority, duties, or responsibilities; (b) the relocation of the principal place at which you provide services to the Company by at least 50 miles and to a location such that your daily commuting distance is increased, other than in connection with a decision by the Board at any time on or after the date that is 18 months following the Effective Date that your primary place of work will become the Boston area; (c) a material reduction of your base salary (except for across the board pay cuts of all management level employees of the Company); or (d) a material breach by the Company of its obligations under this Letter Agreement.  No resignation will be treated as a resignation for Good Reason unless (i) you have given written notice to the Company of your intention to terminate your employment for Good Reason, describing the grounds for such action, no later than 90 days after the first occurrence of such circumstances, (ii) you have provided the Company with at least 30 days in which to cure the circumstances, and (iii) if the Company is not successful in curing the circumstances, you end your employment within 30 days following the cure period in (ii).

	
 
	
iii.
	
“Change of Control” means any of the following events provided that such event also constitutes a “change in control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5):

(a) the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3 under the Exchange Act) 50% or more of either (x) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (y) the combined voting power of the then-outstanding securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (A), the following acquisitions shall not constitute a Change in Control Event: (1) any acquisition directly from the Company (excluding an acquisition pursuant to the exercise, conversion or exchange of any security exercisable for, convertible into or exchangeable for common stock or voting securities of the Company, unless the Person exercising, converting or exchanging such security acquired such security directly from the Company or an underwriter or agent of the Company), (2) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (3) any acquisition by any corporation 

 

 

 

pursuant to a Business Combination (as defined below) which complies with clauses (x) and (y) of subsection (C) of this definition; or

(b) a change in the composition of the Board that results in the Continuing Directors (as defined below) no longer constituting a majority of the Board (or, if applicable, the Board of Directors of a successor corporation to the Company), where the term “Continuing Director” means at any date a member of the Board (x) who was a member of the Board on the date of the initial adoption of the Plan by the Board or (y) who was nominated or elected subsequent to such date by at least a majority of the directors who were Continuing Directors at the time of such nomination or election or whose election to the Board was recommended or endorsed by at least a majority of the directors who were Continuing Directors at the time of such nomination or election; provided, however, that there shall be excluded from this clause (y) any individual whose initial assumption of office occurred as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents, by or on behalf of a person other than the Board; or

(c) the consummation of a merger, consolidation, reorganization, recapitalization or share exchange involving the Company or a sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), unless, immediately following such Business Combination, each of the following two conditions is satisfied: (x) all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors, respectively, of the resulting or acquiring corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction owns the Company or substantially all of the Company’s assets either directly or through one or more subsidiaries) (such resulting or acquiring corporation is referred to herein as the “Acquiring Corporation”) in substantially the same proportions as their ownership of the Outstanding Company Common Stock and Outstanding Company Voting Securities, respectively, immediately prior to such Business Combination and (y) no Person (excluding any employee benefit plan (or related trust) maintained or sponsored by the Company or by the Acquiring Corporation) beneficially owns, directly or indirectly, 50% or more of the then-outstanding shares of common stock of the Acquiring Corporation, or of the combined voting power of the then-outstanding securities of such corporation entitled to vote generally in the election of directors (except to the extent that such ownership existed prior to the Business Combination); or

(d)  the liquidation or dissolution of the Company.

 

 

 

For the avoidance of doubt, you will not be eligible for, nor shall you have a right to receive, any payments or benefits from the Company following your termination from employment other than as set forth in this Section 7.

8.Section 280G.

a.Notwithstanding any other provision of this Letter Agreement, except as set forth in Section 8(b), in the event that the Company undergoes a "Change in Ownership or Control" (as defined below), the Company shall not be obligated to provide to you a portion of any "Contingent Compensation Payments" (as defined below) that you would otherwise be entitled to receive to the extent necessary to eliminate any "excess parachute payments" (as defined in Code Section 280G(b)(1)) for you.  For purposes of this Section 8, the Contingent Compensation Payments so eliminated shall be referred to as the "Eliminated Payments" and the aggregate amount (determined in accordance with Treasury Regulation Section 1.280G-1, Q/A-30 or any successor provision) of the Contingent Compensation Payments so eliminated shall be referred to as the "Eliminated Amount."

b.Notwithstanding the provisions of 8(a), no such reduction in Contingent Compensation Payments shall be made if the Eliminated Amount (computed without regard to this sentence) exceeds 100% of the aggregate present value (determined in accordance with Treasury Regulation Section 1.280G-1, Q/A-31 and Q/A-32 or any successor provisions) of the amount of any additional taxes that would be incurred by you if the Eliminated Payments (determined without regard to this sentence) were paid to you (including, state and federal income taxes on the Eliminated Payments, the excise tax imposed by Section 4999 of the Code payable with respect to all of the Contingent Compensation Payments in excess of your "base amount" (as defined in Section 280G(b)(3) of the Code), and any withholding taxes).  The override of such reduction in Contingent Compensation Payments pursuant to this Section 8(b) shall be referred to as a "Section 8(b) Override." For purposes of this paragraph, if any federal or state income taxes would be attributable to the receipt of any Eliminated Payment, the amount of such taxes shall be computed by multiplying the amount of the Eliminated Payment by the maximum combined federal and state income tax rate provided by law.

c.For purposes of this Section 8 the following terms shall have the following respective meanings:

(I) "Change in Ownership or Control" shall mean a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company determined in accordance with Section 280G(b)(2) of the Code.

(II) "Contingent Compensation Payment" shall mean any payment (or benefit) in the nature of compensation that is made or made available (under this letter agreement or otherwise) to a "disqualified individual" (as defined in Section 280G(c) of the Code) and that is contingent (within the meaning of Section 280G(b)(2)(A)(i) of the Code) on a Change in Ownership or Control of the Company.

 

 

 

d.Any payments or other benefits otherwise due to you following a Change in Ownership or Control that could reasonably be characterized (as determined by the Company) as Contingent Compensation Payments (the "Potential Payments") shall not be made until the dates provided for in this Section 8(d).  Within 30 days after each date on which you first become entitled to receive (whether or not then due) a Contingent Compensation Payment relating to such Change in Ownership or Control, the Company shall determine and notify you (with reasonable detail regarding the basis for its determinations) (i) which Potential Payments constitute Contingent Compensation Payments, (ii) the Eliminated Amount and (iii) whether the Section 8(b) Override is applicable.  Within 30 days after delivery of such notice to you, you shall deliver a response to the Company (the "Executive Response") stating either (A) that you agree with the Company's determination pursuant to the preceding sentence, or (B) that you disagree with such determination, in which case you shall set forth (i) which Potential Payments should be characterized as Contingent Compensation Payments, (ii) the Eliminated Amount, and (iii) whether the Section 8(b) Override is applicable.  In the event that you fail to deliver an Executive Response on or before the required date, the Company's initial determination shall be final.  If and to the extent that any Contingent Compensation Payments are required to be treated as Eliminated Payments pursuant to this Section 8, then the payments shall be reduced or eliminated, as determined by the Company, in the following order: (i) any cash payments, (ii) any taxable benefits, (iii) any nontaxable benefits, and (iv) any vesting of equity awards in each case in reverse order beginning with payments or benefits that are to be paid the farthest in time from the date that triggers the applicability of the excise tax, to the extent necessary to maximize the Eliminated Payments.  If you state in the Executive Response that you agree with the Company's determination, the Company shall make the Potential Payments to you within three business days following delivery to the Company of the Executive Response (except for any Potential Payments which are not due to be made until after such date, which Potential Payments shall be made on the date on which they are due).  If you state in the Executive Response that you disagree with the Company's determination, then, for a period of 60 days following delivery of the Executive Response, you and the Company shall use good faith efforts to resolve such dispute.  If such dispute is not resolved within such 60-day period, such dispute shall be settled exclusively by arbitration in the Commonwealth of Massachusetts, in accordance with the rules of the American Arbitration Association then in effect.  Judgment may be entered on the arbitrator's award in any court having jurisdiction.  The Company shall, within three business days following delivery to the Company of the Executive Response, make to you those Potential Payments as to which there is no dispute between the Company and you regarding whether they should be made (except for any such Potential Payments which are not due to be made until after such date, which Potential Payments shall be made on the date on which they are due).  The balance of the Potential Payments shall be made within three business days following the resolution of such dispute.  Subject to the limitations contained in Sections 8(a) and 8(b) hereof, the amount of any payments to be made to you following the resolution of such dispute shall be increased by the amount of the accrued interest thereon computed at the prime rate announced from time to time by The Wall Street Journal, compounded monthly from the date that such payments originally were due.

e.The provisions of this Section 8 are intended to apply to any and all payments or benefits available to you under this letter agreement or any other agreement or plan of the Company 

 

 

 

under which you may receive Contingent Compensation Payments.

9.Restrictive Covenants/Absence of Restrictions.  In exchange for your employment with the Company pursuant to the terms and conditions herein you hereby agree to execute the enclosed Inventions and Non-Disclosure Agreement (the “Restrictive Covenant Agreement”) on or before the Effective Date.  You further agree that, if at any time during your employment you relocate to a jurisdiction in which applicable law permits an employer to require an employee to enter into an agreement containing post-employment non-competition and/or non-solicitation restrictions,  you shall enter into such an agreement upon the Company’s request and in such form as the Company may provide to you at such time (which agreement you acknowledge may provide the Company with the maximum protection allowed under applicable law).  You represent that you are not bound by any employment contract, restrictive covenant or other restriction preventing (or that purports to prevent) you from entering into employment with or carrying out your responsibilities for the Company, or which is in any way inconsistent with the terms of this Letter Agreement.

10.Other Agreements.  You represent that you are not bound by any employment contract, restrictive covenant or other restriction preventing (or that purports to prevent) you from entering into employment with or carrying out your responsibilities for the Company, or which is in any way inconsistent with the terms of this letter.

11.Employment Eligibility.  You agree to provide to the Company, within three days of your hire date, documentation of your eligibility to work in the United States, as required by the Immigration Reform and Control Act of 1986.  You may need to obtain a work visa in order to be eligible to work in the United States.  If that is the case, your employment with the Company will be conditioned upon your obtaining a work visa in a timely manner as determined by the Company.

12.Background and Reference Checks.  The Company’s offer of at-will employment is contingent upon your authorization and successful completion of background and reference checks.  The Company may obtain background reports both pre-employment and from time to time during your employment with the Company, as necessary.

13.At-Will Employment.  This Letter Agreement shall not be construed as an agreement, either expressed or implied, to employ you for any stated term, and shall in no way alter the Company’s policy of employment at will, under which both you and the Company remain free to terminate the employment relationship, with or without cause, at any time, with or without notice.  Although your job duties, title, compensation and benefits, as well as the Company's personnel policies and procedures, may change from time to time, the "at-will" nature of your employment may only be changed by a written agreement signed by you and the Chief Executive Officer, which expressly states the intention to modify the at-will nature of your employment.  Similarly, nothing in this Letter Agreement shall be construed as an agreement, either express or implied, to pay you any compensation or grant you any benefit beyond the end of your employment with the Company, except to the extent explicitly set forth in Section 7 hereof. 

 

 

 

14.Company Premises and Property.  The Company's premises, including all workspaces, furniture, documents, and other tangible materials, and all information technology resources of the Company (including computers, data and other electronic files, and all internet and email) are subject to oversight and inspection by the Company at any time.  Company employees should have no expectation of privacy with regard to any Company premises, materials, resources, or information.

15.Entire Agreement/Governing Law. This Letter Agreement is your formal offer of employment and supersedes any and all prior or contemporaneous agreements, discussions and understandings, whether written or oral, relating to the subject matter of this Letter Agreement.  This Letter Agreement shall be governed by and construed in accordance with the laws of the State of California (without reference to the conflict of laws provisions thereof).  Any action, suit or other legal proceeding arising under or relating to any provision of this Letter Agreement shall be commenced only in a court of the State of California (or, if appropriate, a federal court located within the State of California), and the Company and you each consents to the jurisdiction of such a court.

*  *  *

 

 

 

If you would like to accept this offer of employment on the terms set forth herein, please sign and return this Letter Agreement on or before February 1, 2021.  

We look forward to you becoming a part of the Inozyme team and helping to build what we hope will be an exceptional organization.

 

	
Very Truly Yours,

	
 
	
 
	
 

	
By:
	
 
	
/s/ Axel Bolte

	
Name:
	
 
	
Axel Bolte

	
Title:
	
 
	
Chief Executive Officer

 

The foregoing correctly sets forth the terms of my employment by Inozyme Pharma, Inc.  I am not relying on any representations other than those set forth above.

 

	
/s/ Deborah Wenkert
	
 
	
Date: February 1, 2021

	
Name:  Deborah Wenkert
	
 
	
 

 

 

 

 

 

 

 

 

 

Payments Subject to Section 409A

 

1.Subject to this Appendix A, any severance payments that may be due under the Letter Agreement to which it is attached shall begin only upon the date of your “separation from service” (determined as set forth below) which occurs on or after the termination of your employment.  The following rules shall apply with respect to distribution of the severance payments, if any, to be provided to you under the Letter Agreement, as applicable:

 

(a)It is intended that each installment of the severance payments under the Letter Agreement shall be treated as a separate “payment” for purposes of Section 409A of the Internal Revenue Code and the guidance issued thereunder (“Section 409A”).  Neither the Company nor you shall have the right to accelerate or defer the delivery of any such payments except to the extent specifically permitted or required by Section 409A.

 

(b)If, as of the date of your “separation from service” from the Company, you are not a “specified employee” (within the meaning of Section 409A), then each installment of the severance payments shall be made on the dates and terms set forth in the Letter Agreement.

 

(c)If, as of the date of your “separation from service” from the Company, you are a “specified employee” (within the meaning of Section 409A), then:

 

(i)Each installment of the severance payments due under the Letter Agreement that, in accordance with the dates and terms set forth herein, will in all circumstances, regardless of when your separation from service occurs, be paid within the short-term deferral period (as defined under Section 409A) shall be treated as a short-term deferral within the meaning of Treasury Regulation Section 1.409A-1(b)(4) to the maximum extent permissible under Section 409A and shall be paid on the dates and terms set forth in the Letter Agreement; and

 

(ii)Each installment of the severance payments due under the Letter Agreement that is not described in this Appendix A, Section 1(c)(i) and that would, absent this subsection, be paid within the six-month period following your “separation from service” from the Company shall not be paid until the date that is six months and one day after such separation from service (or, if earlier, your death) (the “New Payment Date”), with any such installments that are required to be delayed being accumulated during the six-month period and paid in a lump sum on the New Payment Date and any subsequent installments, if any, being paid in 

 

 

 

accordance with the dates and terms set forth herein; provided, however, that the preceding provisions of this sentence shall not apply to any installment of payments if and to the maximum extent that such installment is deemed to be paid under a separation pay plan that does not provide for a deferral of compensation by reason of the application of Treasury Regulation 1.409A-1(b)(9)(iii) (relating to separation pay upon an involuntary separation from service).  Any installments that qualify for the exception under Treasury Regulation Section 1.409A-1(b)(9)(iii) must be paid no later than the last day of your second taxable year following the taxable year in which the separation from service occurs.

 

2.The determination of whether and when your separation from service from the Company has occurred shall be made in a manner consistent with, and based on the presumptions set forth in, Treasury Regulation Section 1.409A-1(h).  Solely for purposes of this Appendix A, Section 2, “Company” shall include all persons with whom the Company would be considered a single employer under Section 414(b) and 414(c) of the Internal Revenue Code.

 

3.All reimbursements and in-kind benefits provided under the Letter Agreement shall be made or provided in accordance with the requirements of Section 409A to the extent that such reimbursements or in-kind benefits are subject to Section 409A, including, where applicable, the requirements that (i) any reimbursement is for expenses incurred during your lifetime (or during a shorter period of time specified in the Letter Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred and (iv) the right to reimbursement is not subject to set off or liquidation or exchange for any other benefit.

4.The Company makes no representation or warranty and shall have no liability to you or to any other person if any of the provisions of the Letter Agreement (including this Appendix) are determined to constitute deferred compensation subject to Section 409A but that do not satisfy an exemption from, or the conditions of, that section.Exhibit 10.22

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN
EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL TO THE REGISTRANT AND (II) WOULD BE COMPETITIVELY HARMFUL TO THE
REGISTRANT IF PUBLICLY DISCLOSED. REDACTED PORTIONS OF THIS EXHIBIT ARE MARKED BY [***].

 

____________________________________________

 

Patent and Know How Assignment Agreement

____________________________________________

 

by and between

 

4SC Discovery GmbH

 

and

 

Panoptes Pharma Ges. m. b. H. in Gründung

 

2nd July 2013

 

    
	4SC – Panoptes Assignment Agreement	Page 1 of 19

     

    

  

THIS Patent and Know How Transfer Agreement
is entered into effect as of 2nd July 2013 ("Effective Date") BETWEEN:

 

		(1)	4SC Discovery GmbH, Am Klopferspitz 19a, 82152 Planegg-Martinsried, Germany,

 

("ASSIGNOR");

 

and

 

		(2)	Panoptes Pharma Ges. m. b. H. in Gründung, Dr. Obermayr, Dr. Sperl; Stauraczgasse 7/15,
1050 Vienna, Austria,

 

("ASSIGNEE").

 

RECITALS:

 

		(A)	ASSIGNEE has been founded to develop and commercialize the compound PP-001 (formerly SC53842) for
certain eye diseases.

 

		(B)	ASSIGNOR is co-founder of ASSIGNEE and owner of the assets relating to PP-001.

 

		(C)	ASSIGNOR is willing to assign to ASSIGNEE certain know-how and patent rights to enable ASSIGNEE
to develop and commercialize PP-001.

 

		(D)	NOW, THEREFORE, ASSIGNOR and ASSIGNEE hereby agree as follows:

 

		1.	Definitions

 

For purposes of this Agreement,
the following terms shall have the following meanings:

 

		1.1	"Affiliate" shall mean and include in relation to each Party, any person, firm,
corporation or other entity: (i) if at least fifty percent (50%) of the voting stock or other equity interest thereof is owned,
directly or indirectly, by that Party; (ii) which owns, directly or indirectly, at least fifty percent (50%) of the voting stock
or other equity interest of that Party; or (iii) if at least fifty percent (50%) of the voting stock or other equity interest thereof
is owned, directly or indirectly, by a person, firm, corporation or other entity that owns, directly or indirectly, at least fifty
percent (50%) of the voting stock or other equity interest of that Party provided, however, that [***], a financial investor in
ASSIGNOR, and any affiliates of [***] shall not be considered Affiliates for purposes of this Agreement.

 

		1.2	"Agreement" shall mean this Assignment Agreement and all Exhibits attached hereto,
and the terms "herein", "hereunder", "hereto" and such similar expressions shall refer to this Agreement.

 

		1.3	“Clinical Proof of Concept” shall mean the successful completion of a study
of a Compound in human patients to determine initial efficacy and dose range finding

 

		1.4	“Closing Date” of this Agreement shall mean the date when all of the following
conditions have been met:

 

		(i)	Foundation of ASIGNEE as evidenced by a notary public and

 

		(ii)	signing of a shareholder agreement between the founding shareholders 4SC, Dr. Stefan Sperl, Dr.
Franz Obermayr & Dr. Bernd Mühlenweg and

 

		(iii)	nomination of Dr. Franz Obermayr and Dr. Stefan Sperl as managing directors of ASSIGNEE and

 

    
	4SC – Panoptes Assignment Agreement	Page 2 of 19

     

    

 

		(iv)	approval of this Agreement by the shareholders of ASSIGNEE and

 

		(v)	obtaining a written statement by Austria Wirtschaftsservice Gesellschaft mbH that all conditions
according to their letter dated March 07, 2013 have been fulfilled and that ASSIGNEE will be funded with [***] € and

 

		(vi)	issuance of a letter by ASSIGNEE to ASSIGNOR that all of the conditions according to this Section
‎1.4 have been met including the Closing Date.

 

		1.5	"Compound" shall mean PP-001 and/or any other substance and/or therapeutic product
covered by the Transferred Patent Rights.

 

		1.6	"Confidential Information" shall mean and include all know how including the Transferred
Know How, data and information, not in the public domain, relating to Compound and the business, affairs, research and development
activities, products, results of clinical trials, national and multinational regulatory proceedings and affairs, finances, plans,
contractual relationships and operations of the Parties. Confidential Information shall also include the existence and terms of
this Agreement.

 

		1.7	"Effective Date" of this Agreement shall mean the date in the recitals.

 

		1.8	“Licensee” shall mean a Third Party to which ASSIGNEE grants a license for further
co-development or development or commercialization or co-marketing.

 

		1.9	“Licensing” shall mean an agreement with a Third Party to which ASSIGNEE grants
a license for further co-development or development or commercialization or co-marketing.

 

		1.10	"Net Sales" shall be calculated in accordance with international financial reporting
standards (IFRS) and shall mean with respect to any Compound, the gross invoiced sales of such Compound by ASSIGNEE or its Third
Party Licensee(s) in the Territory, less the following amounts actually deducted or allowed:

 

		(i)	[***];

 

		(ii)	[***];

 

		(iii)	[***];

 

		(iv)	[***]; and

 

		(v)	[***].

 

		1.11	"Party" or "Parties" shall mean ASSIGNOR or ASSIGNEE, or ASSIGNOR
and ASSIGNEE, whichever the context admits.

 

		1.12	“PP-001” shall mean the chemical compound 3-(2,3,5,6-Tetrafluoro-3`-(trifluoromethoxy)
biphenyl-4-ylcarbamoyl)thiophene-2-carboxylic acid which was formerly developed by ASSIGNOR under the name of SC53842.

 

		1.13	“Royalty Term" shall mean, on a country-by-country and Compound-by-Compound basis,
the period of time beginning upon the date of first commercial sale of a Compound in that country, and ending upon the later to
occur of (i) the expiration of the last Valid Claim of a Transferred Patent Right covering such Compound in such country, or (ii)
ten (10) years from the first commercial sale of the Compound in such country.

 

		1.14	"Territory" shall mean the entire world.

 

		1.15	"Third Party" shall mean any other party that is independent from ASSIGNOR and
its Affiliates and ASSIGNEE and its Affiliates.

 

    
	4SC – Panoptes Assignment Agreement	Page 3 of 19

     

    

 

		1.16	"Transferred Know How" shall include all specifications, results and reports of
clinical studies and all other documentation containing or embodying any data, including pre-clinical, clinical and CMC data relating
to the application for regulatory approval for the Compound and its use for any therapeutic indications, and registration dossiers
to the extent owned by ASSIGNOR as of the Closing Date. Transferred Know How shall further include all proprietary information,
inventions, documents and materials (whether patentable or unpatentable), which relate to the Compound, their formulations and
dosage forms. Without limiting the generality of the definition set forth in this Section ‎1.16,
the Transferred Know How as of the Effective Date is described in more detail in Exhibit ‎1.16
hereto.

 

		1.17	"Transferred Patent Rights" shall mean any and all rights, as of the Closing Date
and in future, in (i) the patent applications listed in Exhibit ‎1.17
hereto, (ii) any and all patent applications which claim priority of the patent applications listed in Exhibit ‎1.17
hereto, (iii) any and all patents granted pursuant to the patent applications referred to in (i) and (ii) above, (iv) any and all
reissues, substitutions, continuations, divisions, continuation-in-part applications, as well as patents granted on the aforementioned,
based on and including any subject matter claimed in any of the aforementioned patent applications and/ or patents, and (v) any
and all extensions of term of the patents referred to in (iii) and (iv) above (including but not limited to supplementary protection
certificates). Hereunder, “patent” shall be inclusive of intellectual rights assets conferring similar rights as a
patent, such as utility models.

 

		1.18	"Valid Claim" shall mean any claim of an issued and unexpired Transferred Patent
Right, which has not been held unenforceable or invalid by a court or other governmental agency of competent jurisdiction in a
decision that is not appealed or cannot be appealed, and which has not been disclaimed or admitted to be invalid or unenforceable
through reissue or otherwise; as well as any pending claim in a pending patent application within the Transferred Patent Rights.

 

    
	4SC – Panoptes Assignment Agreement	Page 4 of 19

     

    

 

		2.	Assignment and Transfer of the Transferred Patent Rights and the Transferred Know How

 

		2.1	Effective as of the Closing Date and subject to the fulfillment of the Parties’ obligations
set forth in Section ‎3.1 below, ASSIGNOR hereby assigns
and transfers to ASSIGNEE, and ASSIGNEE hereby accepts the assignment and transfer of the whole property, right, title and interest
in and to the Transferred Patent Rights and the Transferred Know How, such assignment and transfer becoming effective on the Closing
Date. ASSIGNOR hereby acknowledges and agrees that ASSIGNEE is free to use all Transferred Patent Rights and Transferred Know How
for any purpose whatsoever, to exploit such Patent Rights and Know How by any means whatsoever and to disclose such Know How to
Third Parties without restrictions. Notwithstanding the foregoing assignment, in the event that the Closing is not consummated
within [***] calendar days from the Effective Date, ASSIGNOR shall have the right, in its sole discretion, to terminate this Agreement
including all obligations of ASSIGNOR and all rights of ASSIGNEE set forth in this Agreement.

 

		2.2	The assignment and transfer also includes any current and future claims vis-à-vis Third
Parties arising from the permitted or unpermitted use or exploitation or the violation of the Transferred Patent Rights, in particular
including any license fees, milestone payments, damage claims, claims for injunction, claims for destruction, claims for information,
and claims on account of unjust enrichment in case of violation of Transferred Patent Rights.

 

		2.3	ASSIGNOR hereby undertakes to, and to ensure that its employees, assist and execute all such further
documents, forms and authorisations as may be required to vest the whole property, right, title and interest in and to the Transferred
Patent Rights in ASSIGNEE or any Third Party transferee designated by ASSIGNEE upon the Closing Date, including but not limited
to registration of ASSIGNEE's or such Third Party's title as proprietor at the relevant patent offices anywhere in the world and
to assist in the resolution of any question concerning ownership of the Transferred Patent Rights. ASSIGNOR will provide to ASSIGNEE
such assistance as ASSIGNEE may reasonably require, including but not limited to executing all such further documents, forms and
authorisations as may be required, to enable ASSIGNEE to prosecute and maintain the Transferred Patent Rights during the period
when the assignment of the Transferred Patent Rights to ASSIGNEE or a Third Party pursuant to Section 2.1 is being registered at
the relevant patent offices.

 

		2.4	Within [***] days of the Closing Date, ASSIGNOR will deliver to ASSIGNEE all documents in its possession
relating to the Transferred Patent Rights, including but not limited to copies of all correspondence to which ASSIGNOR is a party
in relation to the prosecution and/ or maintenance of the Transferred Patent Rights. Upon the Closing Date, ASSIGNOR will instruct
its patent agents and foreign correspondents as well as any other parties retained in connection with the prosecution and/ or maintenance
of the Transferred Patent Rights that all records and correspondence, including such with the patent offices, ASSIGNOR or any patent
agent and any foreign correspondent relating to the Transferred Patent Rights are, as from the Closing Date, to be held to the
order of ASSIGNEE. ASSIGNEE will bear all costs and fees invoiced by the relevant patent offices associated with the assignment
and transfer of the Transferred Patent Rights. ASSIGNEE further agrees to reimburse ASSIGNOR all reasonable expenses ASSIGNOR incurs
with external patent agent and foreign correspondents relating to the Transferred Patent Rights up to a maximum amount of [***]
 € ([***] Euros).

 

		2.5	If ASSIGNEE reasonably believes that the data in its possession is incomplete, it shall
                                                             provide written notice thereof to ASSIGNOR, and ASSIGNOR shall furnish additional copies of the Transferred Know How to
                                                             ASSIGNEE within [***] days after receipt of ASSIGNEE's written notice. ASSIGNOR shall use its best efforts to answer all
                                                             questions regarding the Transferred Know
How received from ASSIGNEE or any Third Party owner of the Transferred Know How. ASSIGNEE is the unrestricted owner of all Transferred
Know How and is free to use and disclose such Transferred Know How in its sole discretion.

 

    
	4SC – Panoptes Assignment Agreement	Page 5 of 19

     

    

 

		2.6	Approximately [***] of PP-001 are held by ASSIGNOR upon the Effective Date. ASSIGNOR will transfer
this amount of PP-001 to ASSIGNEE at [***] after the Closing Date.

 

		3.	Payments

 

		3.1	In consideration for the assignment and the transfer of Transferred Know How and the Transferred
Patent Rights under this Agreement, ASSIGNEE agrees to pay to ASSIGNOR net as follows:

 

		(i)	On any lump sum or other consideration received by ASSIGNEE which is derived from the Licensing
of Transferred Patent Rights including, but not limited to, sublicense fees, development milestones, commercial milestones or other
payments (for the avoidance of doubts excluding research funding or other type of reimbursement for research activities and royalties)

 

		(y)	where such license has been executed before a Clinical Proof of Concept: [***]% and

 

		(z)	where such license has been executed after a Clinical Proof of Concept: [***]%

 

whereas the
total aggregated amount payable to ASSIGNOR by ASSIGNEE according to sections ‎3.1‎(i)(y)
and ‎3.1‎(i)(z)
shall not exceed [***] € ([***] Euro), and

 

		(ii)	Independently from the license payments as set forth under 3.1, ASSIGNEE shall pay to ASSIGNOR
a running royalty rate of [***]% ([***] percent) on Net Sales (including for the avoidance of doubt those of Licensee(s)) during
the applicable Royalty Term.

 

In the event
that in a country in the Territory, as documented by an independent Third Party market research firm, one or more generic products
with respect to Compound are sold by any person or entity other than ASSIGNEE and/or its Licensee(s) and the sales of such generic
product in such country during a calendar year are in the aggregate (on a unit equivalent basis) more than [***]percent ([***]%)
of the entire combined market for such Compound and such generic product in such country during such calendar year, then the applicable
royalty rate set forth in this section ‎(ii) shall be reduced
by [***] percent ([***]%) for that particular country; provided however that royalties already paid by ASSIGNEE shall not be reimbursed
by ASSIGNOR.

 

Upon the
expiration of the applicable Royalty Term, the assignment under Section 2.1 in the applicable country will become fully-paid for
the applicable Compound. These financial terms are explicit and exclude any future cost sharing.

 

The Parties have
evaluated the payments set out above before entering into this Agreement and have considered such payments to be at arm's
length and in conformity with Austrian capital maintenance rules. The Parties will evaluate the amount of these payments from
time to time and reduce the amount of any payments which, in future, turn out not to be at arm's length for whatever reason.
The Parties agree that this Agreement and the payments from ASSIGNEE to ASSIGNOR hereunder shall at any time be interpreted
in view to fulfil the arm's length principle and therefore, if required to be considered at arm's length, the amount of the
payments shall be deemed to be reduced accordingly.

 

    
	4SC – Panoptes Assignment Agreement	Page 6 of 19

     

    

 

		3.2	ASSIGNEE will inform ASSIGNOR within [***] days after it has received any income that triggers
a payment under section 3.1(i) and will pay the resulting amount to ASSIGNOR within [***] days after collection of such income.

 

		3.3	Running royalties payable by ASSIGNEE under Section ‎3.1(ii)
shall be payable on a [***]basis, within [***] days after the end of each [***], based upon the aggregate Net Sales during such
[***]. Only one royalty payment shall be due on Net Sales even though the sale or use of the Compound may be covered by more than
one Transferred Patent Rights or item of Transferred Know How in a country.

 

		3.4	At the request of either Party, the Parties shall meet and confer in good faith with respect to
which, if any, invoices shall be issued by ASSIGNOR to ASSIGNEE in connection with payments owed by the paying party to the payment
receiving party under this Section ‎3.

 

		3.5	Each royalty payment hereunder shall be accompanied by a statement in sufficient detail to allow
for the calculation of royalties due hereunder, including by showing, to the extent possible, country-by country and broken out
by month (v) invoiced sales and Net Sales, (w) the number of units of Compound sold in such country during such calendar quarter
and the country(ies) in which such Compound was manufactured, (x) a detailed breakdown of any deductions from the invoiced sales
to obtain Net Sales (y) the amount of royalties due on such Net Sales, and (z) for the entire applicable territory, the aggregated
annual Net Sales to date.

 

		3.6	All payments to be made by ASSIGNEE under this
Section ‎3 are fully-earned, non-refundable, non-creditable and non-cancelable upon expiry or termination of this
Agreement for any reason whatsoever. Nothing in this Section ‎3.6 shall be deemed to limit either Party's right to claim
damages against the other Party in case of breach of this Agreement or for other causes of action or inaction.

 

		3.7	Payment Terms.

 

		(a)	All payments by ASSIGNEE to ASSIGNOR under this Section ‎3
shall be made in Euros to the following account, unless indicated otherwise after the Effective Date or in an applicable invoice
 – free of bank charges, transfer fees or similar charges:

Owner:                  [***]

Bank Institute:     [***]

BIC Code:             [***]

IBAN:                    [***]

 

		(b)	All payments by one Party to the other shall be made in full, without any deductions (subject to
section ‎3.7‎(e) below), and are exclusive of value added taxes, which shall, if applicable, be invoiced separately.

 

		(c)	If any Net Sale are received in any currency other than Euro, for purposes of calculating the payment
payable to ASSIGNOR, such Net Sales shall be converted into Euros at the conversion rate as quoted by the European Central Bank
on the last business day of the calendar month in which such Net Sales were received by ASSIGNEE.

 

		(d)	If ASSIGNEE fails to make a timely payment pursuant to the terms of this Agreement, ASSIGNOR
                                                                  shall provide written notice of such failure to ASSIGNEE and interest shall accrue on the past due amount starting on the
                                                                  date of such notice at the [***] rate, plus
[***] percent per annum, computed for the actual number of days after the date of such notice that the payment was past due and
calculated on a daily basis.

 

    
	4SC – Panoptes Assignment Agreement	Page 7 of 19

     

    

 

		(e)	For all payments to be made under this section ‎3,
ASSIGNEE shall withhold taxes and other duties payable under applicable Laws and Regulations and shall forward such retained payments
to the competent tax authorities, however, only if all of the following conditions are met:

 

		(i)	the respective tax is an income tax and no use tax, franchise tax, sales tax or other tax; and

 

		(ii)	ASSIGNOR is the debtor of such income taxes under applicable laws and regulations; and

 

		(iii)	ASSIGNEE is required by laws and regulations to withhold the tax and to forward such tax to the
competent tax authorities; and

 

		(iv)	ASSIGNEE provides ASSIGNOR a tax certificate of withheld and paid taxes.

 

ASSIGNEE
shall reasonably assist ASSIGNOR in obtaining relief or exemption from any tax on all of the amounts and royalties under any applicable
tax treaty.

 

		(f)	All other taxes and duties payable hereunder shall be paid by ASSIGNEE.

 

		3.8	Book Keeping and
Auditing. Until the expiration of ASSIGNEE’s obligations to make payments under this Agreement and for a term
of [***] years thereafter, ASSIGNEE shall maintain complete and accurate books and records of account, in accordance with generally
accepted account principles, of all transactions and other business activities under this Agreement, sufficient to confirm the
accuracy of all reports and payments furnished by ASSIGNEE to ASSIGNOR under this Section ‎3.
Upon ASSIGNOR’s reasonable written notice to ASSIGNEE, during normal business hours and not more than once every calendar
year, a certified public accountant designated by ASSIGNOR and reasonably acceptable to ASSIGNEE shall have the right to audit
such books and records of account of ASSIGNEE (provided always that such certified public accountant enters into an appropriate
confidentiality agreement with ASSIGNEE), in order to confirm the accuracy and completeness of all such reports and all such payments;
provided that, the ASSIGNOR may only audit transactions that occurred within the [***] years immediately prior to the date
of the audit. Such certified public accountant may disclose to ASSIGNOR only whether such reports and payments are correct or incorrect
and the specific details concerning any discrepancies. No other information shall be provided to ASSIGNOR. ASSIGNOR shall bear
all costs and expenses incurred in connection with any such audit; provided, however, that if any such audit reveals a variance
of [***]percent ([***]%) or more between the amount of payments actually due and the amount of payments made to ASSIGNOR in any
calendar quarter, then, in addition to paying the full amount of such underpayment, plus accrued interest, ASSIGNEE shall reimburse
ASSIGNOR’s reasonable out-of-pocket costs and expenses incurred in conducting such audit.

 

    
	4SC – Panoptes Assignment Agreement	Page 8 of 19

     

    

 

		4.	Prosecution, Maintenance and Defense of the Transferred Patent Rights

 

		4.1	As of the Closing Date, ASSIGNEE shall take over all costs of and be solely responsible for prosecuting
and maintaining the Transferred Patent Rights. ASSIGNOR hereby acknowledges that ASSIGNEE will be the owner of the Transferred
Patent Rights and ASSIGNOR shall retain no rights, title or interest whatsoever in or to any of the Transferred Patent Rights.
For the avoidance of doubt, ASSIGNEE is entitled to abandon any or all Transferred Patent Right in its sole discretion. Without
limiting the generality of this Section ‎4.1, ASSIGNOR shall
not utilize any of the Transferred Patent Rights for any purpose whatsoever, shall not register or attempt to register, any of
the Transferred Patent Rights, or otherwise assert any ownership rights with respect to any of the Transferred Patent Rights.

 

		4.2	The Parties explicitly agree that ASSIGNEE does not assume any obligation under the German Act
on Employee Inventions (Gesetz über Arbeitnehmererfindungen) regarding the Transferred Patent Rights. ASSIGNOR shall indemnify
ASSIGNEE against any claim brought by a Third Party under such Act, including but not limited to claims for employee compensation.

 

		5.	Confidential Information

 

		5.1	All Confidential Information disclosed, revealed or otherwise made available by one Party ("Disclosing
Party") to the other Party ("Receiving Party") under, or as a result of, this Agreement is furnished
to the Receiving Party solely to permit the Receiving Party to exercise its rights, and perform its obligations, under this Agreement.
The Receiving Party shall not use any of the Disclosing Party's Confidential Information for any other purpose, and shall not disclose,
reveal or otherwise make any of the Disclosing Party's Confidential Information available to any other person, firm, corporation
or other entity, without the prior written authorization of the Disclosing Party. For the avoidance of doubt, this provision shall
not restrict ASSIGNEE'S right to use, exploit and disclose the Transferred Know How as stipulated in above section ‎2.1.

 

		5.2	In furtherance of the Receiving Party's obligations under Section ‎5.1
hereof, the Receiving Party shall take all appropriate steps, and shall implement all appropriate safeguards, to prevent the unauthorized
use or disclosure of any of the Disclosing Party's Confidential Information. Without limiting the generality of this Section ‎5.2,
the Receiving Party shall disclose any of the Disclosing Party's Confidential Information only to those of its officers, employees,
directors, consultants, Licensees, (sub)licensees, other representatives and financial investors that have a need to know the Disclosing
Party's Confidential Information, in order for the Receiving Party to exercise its rights and perform its obligations under this
Agreement, and only if such officers, employees, directors, consultants, Licensees, (sub)licensees, other representatives and financial
investors have executed appropriate non-disclosure agreements containing substantially similar terms regarding confidentiality
as those set out in this Agreement or are otherwise bound by obligations of confidentiality effectively prohibiting the unauthorized
use or disclosure of the Disclosing Party's Confidential Information. The Receiving Party shall furnish the Disclosing Party with
immediate written notice of any unauthorized use or disclosure of any of the Disclosing Party's Confidential Information by any
officers, employees, directors, consultants, Licensees, (sub)licensees, other representatives and financial investors of the Receiving
Party, and shall take all actions that the Disclosing Party reasonably requests in order to prevent any further unauthorized use
or disclosure of the Disclosing Party's Confidential Information.

 

    
	4SC – Panoptes Assignment Agreement	Page 9 of 19

     

    

 

		5.3	The Receiving Party's obligations under Sections ‎5.1
and ‎5.2 hereof shall not apply to the extent that any of
the Disclosing Party's Confidential Information:

 

		(a)	passes into the public domain, or becomes generally available to the public through no fault of
the Receiving Party;

 

		(b)	was known to the Receiving Party prior to disclosure hereunder by the Disclosing Party;

 

		(c)	is disclosed, revealed or otherwise made available to the Receiving Party by a Third Party that
is under no obligation of non-disclosure and/or non-use to the Disclosing Party; or

 

		(d)	is required to be disclosed under applicable law; provided, however, that the Receiving Party shall
furnish the Disclosing Party's with as much prior written notice of such disclosure requirement as reasonably practicable, so as
to permit the Disclosing Party, in its sole discretion, to take appropriate action, including seeking a protective order, in order
to prevent the Disclosing Party's Confidential Information from passing into the public domain or becoming generally available
to the public.

 

		5.4	The obligation of confidentiality with respect to any Confidential Information other than Transferred
Know How shall remain in effect for a term of [***] years after the Effective Date, provided that ASSIGNEE is entitled to limit
such term to a minimum term of [***] years if ASSIGNEE is unable to agree on a [***] years term with a potential licensee of the
Transferred Patent Rights and the Transferred Know How. ASSIGNOR's obligation of confidentiality with respect to Transferred Know
How is not limited in time and is subject only to Section ‎5.3
above.

 

		6.	Contracts existing before the effective date

 

		6.1	Exhibit 6.1 contains a list of contracts that were signed by ASSIGNOR and which relate to
the Compounds. It is explicitly understood by the Parties that Exhibit 6.1 does not include contracts with service providers that
were contracted by ASSIGNOR to perform services in relation to the Compounds. ASSIGNOR will – to the extend legally possible
 – assign ASSIGNEE with the active contracts, i.e. the agreements with

 

(i)     
[***], and

 

(ii)    
[***] and

 

(iii)   
[***].

 

In case an
assignment is not possible for whatever, then ASSIGNOR will terminate these contracts and reasonably support ASSIGNEE in arranging
the discussions to enter into new contractual relationships with these parties.

 

		6.2	ASSIGNOR agrees to provide ASSIGNEE copies of the contracts listed in Section ‎6.1.

 

		6.3	ASSIGNOR agrees not to actively terminate the collaboration with NIAID that is disclosed in Exhibit
‎6.1. In case ASSIGNOR receives further data from NIAID then
ASSIGNOR will make available such data to ASSIGNEE without undue delay and such data will be considered as Transferred Know How.

 

		6.4	After the Effective Date ASSIGNOR will not enter into new contracts with Third Parties which relate
to the Compounds.

 

    
	4SC – Panoptes Assignment Agreement	Page 10 of 19

     

    

 

		7.	Warranties and Liabilities

 

		7.1	ASSIGNOR warrants and represents to ASSIGNEE that in all cases as of the Effective Date:

 

		(a)	it owns the entire right, title and interest in the Transferred Patent Rights and the Transferred
Know How, and has the full power, right and authority to enter into this Agreement, to assign the Transferred Patent Rights and
the Transferred Know How to ASSIGNEE pursuant to Section ‎2.1;

 

		(b)	to the best of its knowledge the Transferred Patent Rights and the Transferred Know How are free
of any encumbrances;

 

		(c)	to the best of its knowledge it has not granted licenses or similar rights for co-development or
development or commercialization or co-marketing or other exploitation to Third Parties;

 

		(d)	subject only to Exhibit ‎7.1
hereto, it has no knowledge from which it can be inferred that the Transferred Patent Rights are invalid or that the use of the
Transferred Patent Rights and the Transferred Know How would infringe any patent rights or other intellectual property rights of
Third Parties or that the Transferred Patent Rights and the Transferred Know How do not infringe any patent rights of ASSIGNOR
or its Affiliates; and

 

		(e)	all fees payable in respect of the Transferred Patent Rights, including but not limited to the
application and renewal fees, have been duly paid in time and ASSIGNOR has done everything necessary to prosecute such patent applications,
and subject only to Exhibit ‎7.1 hereto so far as
ASSIGNOR is aware, there are no facts which could undermine or reduce the scope of protection of any patents arising from such
patent applications.

 

		7.2	Any new knowledge of ASSIGNOR between the Effective Date and the Closing Date relating to the warranties
and representations by ASSIGNOR in accordance to Section ‎7.1
shall be disclosed to ASSIGNEE without undue delay. In the event that this new knowledge materially adversely affects the warranties
and representations by ASSIGNOR in accordance to Section ‎7.1
ASSIGNEE shall have the right, in its sole discretion, to terminate this Agreement including all obligations of ASSIGNOR and all
rights of ASSIGNEE set forth in this Agreement.

 

		7.3	ASSIGNOR makes no representation or warranty and specifically disclaims any guarantee that the
development of Contract Products will be successful, in whole or in part, or that the Transferred Patent Rights and the Transferred
Know How will be suitable for commercialization. Other than as set out in Section ‎7.1,
ASSIGNOR expressly disclaims any warranties or conditions, express, implied, statutory or otherwise with respect to the Transferred
Patent Rights and the Transferred Know How, including without limitation, any warranty or merchantability of fitness for a particular
purpose.

 

		7.4	ASSIGNEE warrants and represents to ASSIGNOR that in all cases as of the Closing Date:

 

		(a)	it is a corporation or entity duly organized and validly existing under the laws of the state or
other jurisdiction of its incorporation or formation;

 

		(b)	the execution, delivery and performance of this Agreement does not conflict with any other agreement
by which it is bound, and has been duly authorized by all requisite corporate or shareholder action and approval and does not require
any third party consent or authorization
in connections with the execution and consummation of this Agreement;

 

    
	4SC – Panoptes Assignment Agreement	Page 11 of 19

     

    

 

		(c)	it has the power and authority to execute and deliver this Agreement and to perform its obligations
hereunder; and

 

		(d)	its activities under this Agreement do not violate in a material way or with material consequences
any applicable laws and shall continue to do so throughout the term of this Agreement.

 

		8.	Miscellaneous

 

		8.1	All notices, reports and other communications between the Parties under this Agreement shall be
sent by registered air mail, postage prepaid and return receipt requested, by international air courier, or by facsimile, with
a confirmation copy sent by registered air mail or international air courier, addressed as follows:

 

	 	To: ASSIGNOR	 4SC Discovery GmbH
	 	Attention: Managing Director
	 	Am Klopferspitz 19a
	 	82152 Martinsried
	 	Germany
	 
	 	To: ASSIGNEE	 Panoptes Pharma Ges. m. b. H.
	 	Attention: Dr. Obermayr, Dr. Sperl
	 	Stauraczgasse 7/15,
	 	1050 Vienna
	 	Austria

 

		8.2	This Agreement shall be governed by, and interpreted in accordance with the laws of Germany. The
validity of the intellectual property rights shall be subject to an evaluation under the law of the country in which the intellectual
property rights were applied for or have been issued.

 

		8.3	Any dispute relating to the validity, performance, construction or interpretation of this Agreement
which cannot be resolved amicably between the Parties shall be submitted to binding arbitration, to be held in Munich, Germany,
in accordance Arbitration Rules of the Deutsche Institution fur Schiedsgerichtsbarkeit e.V. The decision of the arbitrators in
any arbitration proceeding between the Parties under this Section ‎8.3
shall be: (i) in writing, stating the reasons therefor; (ii) based solely on the terms and conditions of this Agreement, as interpreted
in accordance with the laws of the Federal Republic of Germany; (iii) final and binding upon the Parties; and (iv) enforceable
in any court of competent jurisdiction. The Parties agree that this Agreement shall be construed and interpreted in its English
version only. Any translation of this Agreement into another language shall be for convenience only and shall not be used to construe
and interpret this Agreement.

 

		8.4	If any provision of this Agreement is determined by any court or administrative tribunal of competent
jurisdiction to be invalid or unenforceable under applicable law, the Parties shall negotiate in good faith a replacement provision
that is commercially equivalent, to the maximum extent permitted by applicable law, to such invalid or unenforceable provision.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of the other
provisions of this Agreement.

 

    
	4SC – Panoptes Assignment Agreement	Page 12 of 19

     

    

 

		8.5	This Agreement, together with all Exhibits attached hereto, constitutes the entire agreement between
the Parties, and supersedes all prior agreements, understandings and communications between the Parties, with respect to the subject
matter hereof. No modification or amendment of this Agreement shall be binding upon the Parties unless in writing and executed
by the duly authorized representative of each of the Parties. This provision shall also apply to any change of this Section ‎8.5.

 

		8.6	The failure by either Party to assert any of its rights hereunder shall not be deemed to constitute
a waiver by that Party of its right thereafter to enforce each and every provision of this Agreement in accordance with its terms.

 

Exhibits:

 

Exhibit ‎1.16
Transferred Know How

 

Exhibit ‎1.17
List of Transferred Patent Rights

 

Exhibit ‎6.1
List of contracts with Third Parties

 

Exhibit ‎7.1
List of objections and third party rights to the Transferred Patent Rights

 

***** signature page follows *****

 

    
	4SC – Panoptes Assignment Agreement	Page 13 of 19

     

    

 

	4SC
    Discovery GmbH	 	Panoptes
    Pharma Ges. m. b. H. in Gründung
	 	 	 
	/s/
    Dr. Stefan Strobl	 	/s/
    Dr. Franz Obermayr
	By:
    Dr. Stefan Strobl	 	By:
    Dr. Franz Obermayr
	Title:
    Managing Director	 	Title:
    CEO
	 	 	 
	/s/
    Dr. Daniel Vitt	 	/s/
    Dr. Stefan Sperl
	By:
    Dr. Daniel Vitt	 	By:
    Dr. Stefan Sperl
	Title:
    Managing Director	 	Title:
    COO

 

    
	4SC – Panoptes Assignment Agreement	Page 14 of 19

     

    

 

Exhibit ‎1.16
Transferred Know How

 

[***]

 

[***]

 

[***]

 

[***]

 

    
	4SC – Panoptes Assignment Agreement	Page 15 of 19

     

    

 

Exhibit ‎1.17
List of Transferred Patent Rights

 

[***]

 

	Country	Application No.	Patent No.	4SC Ref	Boehmert Ref
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]

 

    
	4SC – Panoptes Assignment Agreement	Page 16 of 19

     

    

 

[***]

 

	Country	Application No.	Patent No.	4SC Ref	Boehmert Ref
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]

 

    
	4SC – Panoptes Assignment Agreement	Page 17 of 19

     

    

 

Exhibit ‎6.1
List of contracts with Third Parties

 

	
        Partner

         
	Research topic	Active	Comment
	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]

 

[***]

 

    
	4SC – Panoptes Assignment Agreement	Page 18 of 19

     

    

 

Exhibit ‎7.1
List of objections and third party rights to the Transferred Patent Rights

 

[***]

 

[***]

[***]

[***]

[***]

[***]

[***]

 

 

    
	4SC – Panoptes Assignment Agreement	Page 19 of 19

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