Document:

CONFIDENTIAL
TREATMENT REQUESTED: Certain portions of this document have been omitted pursuant to a request for confidential treatment and,
where applicable, have been marked with an asterisk (“[*****]”) to denote where omissions have been made. The confidential
material has been filed separately with the Securities and Exchange Commission. 

 

ASSET
PURCHASE AGREEMENT

 

This
Asset Purchase Agreement (this “Agreement”) is made and entered into as of the 7th day of May 2018
(the “Closing Date”), by and between

 

PROVENTION
BIO, INC., a Delaware corporation, the principal place of business of which is at United States of America (“Buyer”),

 

and

 

MACROGENICS,
INC., a Delaware corporation, the principal place of business of which is at 9704 Medical Centre Drive, Rockville, MD 20850,
United States of America (“Seller”);

 

RECITALS

 

WHEREAS,
Buyer is a clinical stage biopharmaceutical company that possesses expertise in the research and development of pharmaceutical
products which prevent and intercept immune-mediated diseases;

 

WHEREAS,
Seller is a biopharmaceutical company that discovers and develops novel biologics for the treatment of cancer, autoimmune
disorders and infectious diseases, and Seller has developed a novel cluster of differentiation 3 (“CD3”) partial
agonist known as “Teplizumab”;

 

WHEREAS,
Seller wishes to sell and transfer to Buyer all right, title and interest in and to certain assets related to “Teplizumab”
pursuant to and in accordance with the terms and conditions of this Agreement;

 

WHEREAS,
Buyer wishes to purchase from Seller such assets related to “Teplizumab”;

 

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

 

	1.	DEFINITIONS

 

	1.1	As
                                         used in this Agreement, the following defined terms shall have the meanings provided
                                         below:

 

	 	“Accounting
    Standards”:	 	means
    the United States Generally Accepted Accounting Principles (U.S. GAAP) as consistently applied.
	 	 	 	 
	 	“Accounts
    Receivable”: 	 	means
    all trade accounts and notes receivable and other miscellaneous receivables, including those that are not evidenced by instruments
    or invoices, existing as of the Closing Date.
	 	 	 	 
	 	“Action
    or Proceeding”: 	 	means
    any claim, action, suit, litigation, proceeding, arbitration, order, inquiry, hearing, assessment, audit, contest, prosecution,
    enforcement action, examination or investigation (whether civil, criminal, administrative, investigative, appellate or informal)
    threatened, commenced, brought, conducted, pending or heard by or before, or otherwise involving, any Governmental Authority
    or any arbitrator or arbitration panel; provided that the foregoing shall exclude patent or trademark prosecution and examination
    before any relevant patent and/or trademark office in any applicable country or jurisdiction. 

 

    	1

    	 

    

 

	 	“Affiliate”:	 	means
    any corporation or other legal entity controlled by, controlling, or under common control with Buyer or Seller. For the purpose
    of this definition, the term “control” means direct or indirect beneficial ownership of at least fifty percent
    (50%) of the voting stock of a corporation or other legal entity, or to hold the effective power to appoint or dismiss members
    of the management.
	 	 	 	 
	 	“Agreement”:	 	means
    this Asset Purchase Agreement, including the Exhibits.
	 	 	 	 
	 	“API”:	 	means
    an active pharmaceutical ingredient, whether produced from a living organism or through synthetic process, i.e., any substance
    intended to be used in the manufacture of a drug product and that is intended to furnish pharmacological activity or other
    direct effect in the diagnosis, cure, mitigation, treatment or prevention of disease or to affect the structure or any function
    of the body of man or other animals, including peptides, antibodies, hybrid molecules, fusion proteins, cytokines or other
    cellular elements.
	 	 	 	 
	 	“Applicable
    Laws”:	 	means
    any and all of the applicable federal, provincial, regional, state or local law, statute or ordinance, rules and regulations,
    including any rules, regulations, guidelines, administrative guidance, or other requirements of any Governmental Authorities
    that may be in effect from time to time in any country or jurisdiction, including, without limitation, the FFDCA, current
    Good Manufacturing Practices (“cGMP”) and current Good Clinical Practices (“cGCP”).
	 	 	 	 
	 	“Assumed
    Contracts”: 	 	means
    the agreements listed in Exhibit 3 under the heading “Assumed Contracts.” For the avoidance of doubt, “Assumed
    Contracts” shall not include any agreements or contracts of Seller that are not explicitly scheduled in Exhibit 3 hereto
    under the heading “Assumed Contracts.”
	 	 	 	 
	 	“Assumed
    Liabilities”:	 	means,
    collectively, all of the following liabilities, in each case to the extent related to and solely accruing during the period
    beginning immediately after the Closing Date in connection with the ownership of the Purchased Assets or the manufacturing,
    Development or Commercialization of a Product by Buyer, its Affiliates or its Licensees, but in all cases excluding the Retained
    Liabilities and the other obligations retained by Seller pursuant to Section 2.8 or any other Transaction Documents: (i) subject
    to Section 3.11, all liabilities to the extent arising out of or relating to the Assumed Contracts; (ii) all liabilities in
    respect of any lawsuits, claims, actions or proceedings to the extent arising out of or relating to the manufacture, Development
    or Commercialization of Products or the ownership, sale, lease or use of any of the Purchased Assets; (iii) all liabilities
    for warranty claims and product liability or similar claims, including all suits, actions or proceedings relating to any such
    liabilities, to the extent arising out of or relating to any and all Products; (iv) all liabilities for taxes to the extent
    arising out of or relating to or in respect of any Product or any Purchased Asset after the Closing Date; and (v) all other
    liabilities and obligations of whatever kind and nature, primary, secondary, direct or indirect, absolute or contingent, known
    or unknown, whether or not accrued, to the extent arising out of or relating to the Product or Purchased Assets. For the avoidance
    of doubt, Assumed Liabilities shall not include Excluded Taxes.

 

    	2

    	 

    

 

	 	“Bill
    of Sale and General 	 	 
	 	Assignment
    Agreement”:	 	has
    the meaning set forth in Section 4.2(i).
	 	 	 	 
	 	“BLA
    Approval Milestone”	 	has
    the meaning set forth in Section 3.2. 
	 	 	 	 
	 	“Business
    Day”:	 	means
    any day other than (i) a Saturday, a Sunday, or (ii) a day on which commercial banks located in Lebanon, New Jersey, and/or
    Rockville, Maryland, are authorized or required under Applicable Laws to remain closed. 
	 	 	 	 
	 	“Buyer”:
    	 	has
    the meaning set forth at the beginning of this Agreement.
	 	 	 	 
	 	“Closing”:
    	 	has
    the meaning set forth in Section 4.1.
	 	 	 	 
	 	“Closing
    Date”:	 	means
    the effective date of this Agreement shown at the beginning of this Agreement.
	 	 	 	 
	 	“Commercial
    Milestone”:	 	has
    the meaning set forth in Section 3.4.
	 	 	 	 
	 	“Commercialization”
    or 	 	 
	 	“Commercialize”:	 	means
    the commercial manufacture, marketing, promotion, sale, offering for sale, distribution, and/or commercial importation or
    exportation of a Product.
	 	 	 	 
	 	“Combination
    Product”:	 	means
    a Product combining Teplizumab together with another API.
	 	 	 	 
	 	 “Completion”:	 	means,
    for a clinical trial, the date upon which all patients have completed protocol-defined drug administration and [****]. 

 

    	3

    	 

    

 

	 	“Confidential
    Information”: 	 	means
    any information of a confidential or proprietary nature disclosed by a Party or its Affiliates (the “Disclosing Party”)
    to the other Party or its Affiliates (the “Receiving Party”), including each Party’s or its Affiliates’
    invention disclosures, proprietary materials, data, including any Data, know-how, including any Know-How, technologies, trade
    secrets, and/or manufacturing, marketing, personnel and other business information and plans, whether in oral, written, graphic
    or electronic form. Confidential Information (as defined in the Prior Confidentiality Agreement) disclosed under the Prior
    Confidentiality Agreement shall be deemed Confidential Information hereunder. Information shall not be deemed “Confidential
    Information” hereunder, and the Receiving Party shall have no obligation with respect to any information if it is:

 

	 	(i)	known
    by the Receiving Party prior to disclosure by the Disclosing Party, as evidenced by internal records or documentation of the
    Receiving Party; or
	 	 	 
	 	(ii)	information
    which is in the public domain or subsequently enters the public domain through no fault of the Receiving Party; or
	 	 	 
	 	(iii)
    	information
    that is received by the Receiving Party from an independent Third Party with the lawful right to disclose it; or
	 	 	 
	 	(iv)
    	information
    that was independently developed by the Receiving Party (or its Affiliates’) employees or contractors without the use
    of or reference to Confidential Information of the Disclosing Party as evidenced by internal records or documentation of the
    Receiving Party.

 

	 	Notwithstanding
    the foregoing, any combination of features or disclosures shall not be deemed to fall within the foregoing exclusions merely
    because individual features are published or available to the general public or in the rightful possession of the Receiving
    Party unless the combination itself and principle of operation are published or available to the general public or in the
    rightful possession of the Receiving Party. Confidential Information to the extent solely and specifically related to the
    Purchased Assets and/or the Product shall be deemed to be the Confidential Information of the Buyer, notwithstanding the fact
    that it was initially disclosed to the Buyer by the Seller.

 

	 	“Consents
    and Waivers”:	 	means
    the [****] Consent, [****] Waiver, [****] Novation and Consent and [****] Comfort Letter.
	 	 	 	 
	 	“Control”
    or “Controlled”: 	 	means,
    the possession by a Party of the ability to assign, transfer or license rights or assets as contemplated by this Agreement
    with respect to (i) the Purchased Assets; and (ii) other intellectual property and assets of any kind, unless, with respect
    to intellectual property and/or assets other than the Purchased Assets, such assignment transfer or license of rights or assets
    would violate the terms of any agreement or other arrangement with any Third Party existing at the time such Party would be
    first required to assign, transfer or license such rights or assets; provided however that if such agreement or other arrangement
    with any Third Party later terminates, or would no longer be violated, then such intellectual property or other assets shall
    be deemed Controlled by such Party. 

 

    	4

    	 

    

 

	 	“Core
    Representation”:	 	has
    the meaning set forth in Section 9.1(ii).
	 	 	 	 
	 	“Damages”:
    	 	means
    any loss, damage, injury, liability, settlement, judgment, obligation, award, fine, penalty, tax, fee (including any reasonable
    legal fee, accounting fee, expert fee or advisory fee), charge, cost (including any reasonable cost of investigation) or expense.
	 	 	 	 
	 	“Data”:	 	means
    any and all research data, technical data, test and development data, pre-clinical and clinical data, formulations, processes,
    protocols, regulatory files and the like which are developed by Seller, its Affiliates, licensees and/or Third Party providers
    of services, in each case including their respective predecessors in interest, and Controlled by Seller, prior to the Closing
    Date or generated in the performance of the Technology Transition Plan. 
	 	 	 	 
	 	“Data
    Room”:	 	means
    that certain electronic data room populated by the Seller on ShareVault.com relating to the Product and the Purchased Assets.
	 	 	 	 
	 	“Development”
    or “Develop”:	 	means
    to discover, research or otherwise develop a product, including conducting any pre-clinical, non-clinical or clinical research
    and any drug development activity, including discovery, research, toxicology, pharmacology and other similar activities, test
    method development and stability testing, manufacturing process development, formulation development, delivery system development,
    quality assurance and quality control development, statistical analysis, clinical studies (including pre- and post-approval
    studies), diagnostic assays in connection with clinical studies, and all activities directed to obtaining any Regulatory Approval,
    including any marketing, pricing or reimbursement approval. For the sake of clarity, Development shall not include any activities
    related to Commercialization. 

 

	 	“Development
    and 	 	 
	 	Regulatory
    Milestone”:	 	has
    the meaning set forth in Section 3.2.
	 	 	 	 
	 	“Development
    Plan”:	 	means
    plans for the Development of the Product as outlined in Exhibit 4 and as may be modified by the Buyer from time to time during
    the Term.

 

    	5

    	 

    

 

	 	“Device”:	 	means
    any medical device, instrument, apparatus, implant, or similar or related device that is used to diagnose, prevent and/or
    treat a disease or other condition, such as a drug delivery system (including a single use disposable injection device), that
    is distributed, marketed and/or sold by Buyer, its Affiliates and/or Licensees to Third Parties, including hospitals, clinics,
    medical practitioners, pharmacists, and patients, either in the secondary packaging of the Product or separately, the use
    of which is related to the use of the Product.
	 	 	 	 
	 	“Diagnostic
    Tool”:	 	means
    any companion and/or diagnostic assay developed and used to (i) identify patients who are most likely to benefit from a Product,
    (ii) identify patients likely to be at increased risk for serious adverse reactions as a result of treatment with a Product,
    and/or (iii) monitor a patient’s response to a Product for the purpose of adjusting treatment (e.g., schedule,
    dose, discontinuation) to achieve improved safety or effectiveness.
	 	 	 	 
	 	“Disclosing
    Party”:	 	shall
    have the meaning provided in the definition of “Confidential Information.”
	 	 	 	 
	 	“Disclosure
    Schedules”: 	 	means
    the Disclosure Schedules set forth in Exhibit 5.
	 	 	 	 
	 	“Earn-Out
    Term”:	 	means,
    on a Product-by-Product, and country-by-country basis, the period commencing upon the First Commercial Sale of such Product
    in such country and expiring upon the later of: (i) the last-to-expire Valid Claim in a Product Patent in a given country,
    or (ii) [****] years after the date of First Commercial Sale of such Product in such country.
	 	 	 	 
	 	“[****]
    Agreement”:	 	means
    the “[****] Agreement” entered into by and between Seller and [****], as subsequently amended on [****]
    and [****], which has [****]. 
	 	 	 	 
	 	“[****]
    Consent”:	 	means
    that certain [****] and Seller, dated as of [****].
	 	 	 	 
	 	“Encumbrance”:
    	 	means
    any lien, pledge, charge, mortgage, security interest, lease, license, option, right of first refusal, preemptive right, put,
    call or other restriction on transfer (other than express provisions of Assumed Contracts), defect or imperfection of title,
    assessment, deed of trust, levy, or other encumbrance of any kind, or any conditional sale or title retention agreement or
    other agreement to give any of the foregoing in the future.
	 	 	 	 
	 	“Excluded
    Taxes”:	 	means
    (i) all Taxes of or relating to Seller, or for which Seller is liable, for any taxable period, including (A) all Taxes of
    any member of an affiliated group of which Seller (or any predecessor) is or was a member on a prior to the Closing Date,
    including pursuant to Treasury Regulation Section 1.1502-6 or any analogous or similar state, local or foreign law; (B) any
    and all Taxes of any person imposed on Buyer as a transferee or successor, by contract or pursuant to any Applicable Law,
    which Taxes relate to an event or transaction occurring before the Closing Date, and (C) payments under any Tax allocation,
    sharing or similar agreement (whether oral or written); (ii) all Taxes relating to the “Retained Rights” described
    in Section 2.3 or Retained Liabilities for any taxable period; (iii) all Taxes attributable to ownership or use of any Purchased
    Assets or the Assumed Liabilities for any taxable period ending on or prior to the Closing Date and, with respect to any taxable
    period beginning before and ending after the Closing Date, for the portion of such taxable period ending on the Closing Date;
    and (iv) Seller’s portion of transfer taxes (as provided in Section 3.9).

 

    	6

    	 

    

 

	 	“Exhibit”:	 	means
    any or all of the exhibits attached to this Agreement.
	 	 	 	 
	 	“FFDCA”:	 	means
    the Federal Food, Drug, and Cosmetic Act.
	 	 	 	 
	 	“First
    Commercial Sale”:	 	means,
    with respect to a Product in a given country, the first commercial sale or disposition for value of such Product to a Third
    Party (other than a Related Party) for end use or consumption of such Product in such country, excluding, however, transfers
    or dispositions of without consideration: (i) in connection with patient assistance programs; (ii) for charitable or promotional
    purposes; (iii) for preclinical, clinical, regulatory or governmental purposes or under so-called “named patient”,
    “compassionate use” or other limited access programs; or (iv) for use in any tests or studies reasonably necessary
    to comply with Applicable Laws, regulation or request by a Governmental Authority. For clarity, First Commercial Sale shall
    be determined on a country-by-country basis.
	 	 	 	 
	 	“First
    Indication”:	 	means
    a first indication for which a Product receives approval. 
	 	 	 	 
	 	“FTE”:	 	means
    a full time equivalent person by year consisting of [****] days per year of work, corresponding to [****] hours per year of
    work. 
	 	 	 	 
	 	“FTE
    Rate”:	 	means
    [****] United States Dollars (US$[****]) per FTE.
	 	 	 	 
	 	“Fundamental
    Representation”:	 	has
    the meaning set forth in Section 9.1(i).

 

	 	“Generic
    Competition”:	 	means,
    with respect to a Product in any country in a given calendar quarter, that, during such calendar quarter, (i) one or more
    Generic Products are commercially available in such country, and (ii) aggregate Net Sales of such Product in such country
    in such calendar quarter equal less than [****] percent ([****]%) of the average aggregate Net Sales of the Product over the
    four (4) calendar quarters immediately prior to the calendar quarter in which one or more Generic Products first became commercially
    available in such country.
	 	 	 	 
	 	“Generic
    Product”:	 	for
    a given country means a pharmaceutical product that (i) is sold by a Person that is not a Related Party under a Regulatory
    Approval granted by a Government Authority to a Third Party, (ii) contains the same active ingredient(s) as are contained
    in a Product, and (iii) is approved by the Government Authority pursuant to an abbreviated approval process that relies in
    part on such Government Authority’s previous grant of marketing authorization to a Product.

 

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	 	“Governmental
    Authority”: 	 	means
    any court, tribunal, arbitrator, authority, agency, commission, official or other instrumentality of the United States of
    America or other country, including without limitation any regulatory authority involved in granting approval to initiate
    or conduct clinical testing in humans, for regulatory approval to market a pharmaceutical/biologic product and/or, to the
    extent required in such country or jurisdiction, for pricing or reimbursement approval for a pharmaceutical product in such
    country or jurisdiction, including (i) the Food and Drug Administration of the United States of America (“FDA”),
    (ii) the European Medicines Agency of the European Union (“EMA”), and (iii) the European Commission. 
	 	 	 	 
	 	“Inbound
    Licenses”: 	 	has
    the meaning set forth in Section 5.7(v).
	 	 	 	 
	 	“Indemnitee”:
    	 	has
    the meaning set forth in Section 9.4.
	 	 	 	 
	 	“Indemnitor”:
    	 	has
    the meaning set forth in Section 9.4.
	 	 	 	 
	 	“INDs
    and CTAs”:	 	means
    any and all investigational new drug applications and clinical trial applications with respect to the Product as listed in
    Exhibit 8. 
	 	 	 	 
	 	“[****]
    Agreement”:	 	means
    that certain [****] Agreement between Seller, [****] and [****], dated [****]. 
	 	 	 	 
	 	“[****]
    Payment”:	 	means
    any payment due pursuant to Section 7.1.1(b) of the [****] Agreement. 
	 	 	 	 
	 	“[****]
    Supply”:	 	means
    supply of [****].
	 	 	 	 
	 	“[****]
    Waiver”:	 	means
    that certain [****] Agreement, between [****],[****] and Seller, dated as of [****].
	 	 	 	 
	 	“[****]”	 	means
    [****].
	 	 	 	 
	 	“[****]
    Agreement”	 	means
    that certain [****] Agreement, effective as of [****] between the [****] and Seller. 
	 	 	 	 
	 	“Know-How”:	 	means
    technical and other information, including trade secrets and information comprising or relating to concepts, discoveries,
    designs, formulae, ideas, inventions, methods, models, assays, research plans, procedures, designs for experiments and tests
    and results of experimentation and testing (including results of Development), formulations, processes (including manufacturing
    processes, specifications and techniques), and any such information contained in the Data, including documents containing
    any of the above.

 

    	8

    	 

    

 

	 	“Knowledge”:
    	 	with
    respect to Seller, means the actual knowledge of the vice-president level or higher executive officers (or persons performing
    similar functions) of Seller after reasonable inquiry. 
	 	“Licensee”:	 	means
    a Third Party licensee that has entered into a license agreement with Buyer for the Product.
	 	 	 	 
	 	“Listed
    Patents”:	 	has
    the meaning set forth in Section 5.7(ii).
	 	“Lock-Up
    Agreement”	 	means
    that certain Lock-Up Agreement, substantially in the form attached hereto as Exhibit 12.
	 	 	 	 
	 	“[****]
    Novation and 	 	 
	 	Consent”:	 	means
    that certain Novation Agreement, between [****], Buyer and Seller, dated as of [****].
	 	“Major
    European Country”:	 	means
    France, Germany, Italy, Spain or the United Kingdom.
	 	 	 	 
	 	“[****]”	 	means
    any payments due to be [****] under the [****] or any other agreement entered into by Seller or any of its predecessors in
    interest prior the Closing Date.
	 	 	 	 
	 	“Net
    Sales”: 	 	means
    the gross amount billed or invoiced for a Product by (a) by Buyer; (b) by any Buyer’s assignee (including such assignee’s
    affiliates or licensees), (c) by Buyer’s Affiliates, or (d) by Licensees (each of the Persons referred to in (b), (c)
    and (d), a “Related Party”), in each case, for the sale of a Product to Third Parties (excluding a sale
    of a Product to Affiliates or licensees for resale), subject to the following deductions, as allocable to such Product (if
    not previously deducted in calculating the amount invoiced and to the extent included in the gross invoice price):

 

	 	(i)	reasonable
    trade, quantity, prompt settlement and other cash discounts and rebates (including wholesale inventory management fees and
    fees or allowances to other distributors, buying groups, health care insurance carriers or other pharmacy benefit managers
    (or equivalents thereof), federal, state/provincial, local or other Governmental Authority or other institution, or their
    agencies or purchasers, reimbursers, or trade customers), chargebacks, and price reductions or allowances actually allowed
    or granted from the billed amount, and discounts to customers, including cash coupons, vouchers and loyalty cards (and their
    redemption) and co-pay assistance;

 

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	 	(ii)	credits
    or allowances actually granted upon claims, rejections or returns of such sales of Products, including recalls;
	 	 	 
	 	(iii)	taxes
    imposed on the production, sale, delivery, import, export, distribution or use of the Product (including sales, use, excise
    or value added taxes, but excluding income taxes), duties or other governmental charges levied on or measured by the billing
    amount when included in billing, as adjusted for tax refunds and tax rebates; 
	 	 	 
	 	(iv)	any
    discounts, rebates or similar payments in respect of sales paid for by any Governmental Authority, including Federal or state
    Medicaid, Medicare or similar state program, or any other similar program, or any other government imposed rebates or discounts
    from invoiced prices (to the extent not covered under clause (i) above); and
	 	 	 
	 	(v)	transport,
    freight, postage and insurance costs relating to the transportation or delivery of Products.

 

	 	Such amounts shall be determined from the books and records of Buyer or its Related Party, maintained in accordance
with Accounting Standards with regard to Buyer, and, with respect to a related Party, in accordance with the accounting standards
applicable to such a Related Party.
	 	 
	 	Net
    Sales shall exclude transfers or dispositions of Product, without consideration: (1) in connection with patient assistance
    programs; (2) for charitable or promotional purposes; (3) for preclinical, clinical, regulatory or governmental purposes or
    under so-called “named patient”, “compassionate use” or other limited access programs; or (4) for
    use in any tests or studies reasonably necessary to comply with applicable Law, regulation or request by a Governmental Authority.

 

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	 	In
        the event that a Product is sold as a Combination Product, the Net Sales of the Product shall be determined by multiplying
        the Net Sales of the Combination Product by the fraction A/(A+B), where A is the weighted (by sales volume) average unit
        sale price of the Product in the applicable country, where net sales is calculated in the same manner as Net Sales, when
        sold separately in finished form and B is the weighted average unit sale price in that country (net sales being calculated
        in the same manner as Net Sales) of the other API which is included in the Combination Product when such API is sold separately
        in finished form at the same dosage levels, in each case during the applicable royalty reporting period, or, if sales
        of both the Product and the other API did not occur in the same country in such period, then in the most recent royalty
        reporting period in which sales of both occurred, provided that such “recent royalty reporting period” shall
        not have been more than twenty-four (24) months earlier.

         

        In
        the event that such weighted average sale price of the Product cannot be determined, but the weighted average sale price
        of the other API can be determined, Net Sales shall be calculated by multiplying the Net Sales of the Combination Product
        by the following formula: one (1) minus B / C where B is the weighted average sale price of the other API when sold separately
        in finished form and C is the weighted average selling price of the Combination Product.

         

        In
        the event that the weighted average sale price of both the Product and the other API in the Combination Product cannot
        be determined, the Net Sales of the Product shall be calculated by multiplying the Net Sales of the Combination Product
        (determined as provided above for Products) by the fraction A / C where A is the predicted fair market value of the Product
        if such Product were sold as a stand-alone Product as determined in good faith by the Parties and C is the weighted average
        selling price of the Combination Product.

         

        The
        weighted average sale price for a Product, any other API(s) used in a Combination Product, or any Combination Product
        shall be calculated once each calendar year, at the beginning of such calendar year, and such price shall be used during
        all applicable royalty reporting periods for such entire calendar year. When determining the weighted average sale price
        of a Product, other API(s), or Combination Product, the weighted average sale price shall be calculated by dividing the
        sales dollar (translated into U.S. dollars) by the units of active ingredient sold during the preceding calendar year
        (or the number of months sold in a partial calendar year) for the respective Product, other API(s), or Combination Product.
        In the initial calendar year, a forecasted weighted average sale price will be used for the Product, other API(s) or Combination
        Product.

 

	 	“Outbound
    Licenses”: 	 	has
    the meaning set forth in Section 5.7(iv).
	 	 	 	 
	 	“Party”:	 	means
    either Buyer or Seller, as the context requires, and, when used in plural, shall mean Buyer and Seller. 
	 	 	 	 
	 	“Patents”:	 	means
    (i) all issued patents (extensions, restorations by existing or future extension or registration mechanism, including patent
    term adjustments, patent term extension, supplemental protection certificates or the equivalent thereof, substitutions, confirmations,
    re-registrations, re-examinations, reissues and patents of addition), (ii) patent applications (including all provisional
    and non-provisional applications, substitutions, requests for continuation, continuations, continuations-in-part, divisionals
    and renewals), (iii) inventor’s certificates, (iv) design registrations, design registration applications, industrial
    designs, industrial design applications and industrial design registrations, (v) any and all divisions, continuations, continuations
    in part, extensions, substitutions, renewals, registrations, revalidations, reversions, reexaminations, reissues or additions,
    of or to any of the foregoing items, (vi) all equivalents of the foregoing in any country of the world, and (vii) all rights
    and priorities afforded under any Applicable Law with respect to each of the foregoing items.

 

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	 	“Patent
    Assignment 	 	 
	 	Agreement”:	 	means
    the “Patent Assignment Agreement” between Seller and Buyer to be executed on or prior to the Closing, in
    the form attached as Exhibit 7.
	 	 	 	 
	 	“Permitted
    Encumbrance”:	 	means
    all (i) mechanics’, carriers’, workmen’s, repairmen’s or warehousemen’s Encumbrances arising
    under Applicable Law and incurred in the ordinary course of Seller’s business and Encumbrances for taxes and other governmental
    charges which are not yet due and payable; and (ii) other imperfections of title or encumbrances, if any, which have no more
    than de minimis impact on the continued use and operation or value of the assets to which they relate.
	 	 	 	 
	 	 “Person”:
    	 	means
    any natural person, corporation, general partnership, limited partnership, limited liability company, proprietorship, other
    business organization, trust, union, association or Governmental Authority.
	 	 	 	 
	 	“Phase
    III Clinical Trial”:	 	means
    with regard to the United States of America a clinical trial consistent with the United States Code of Federal Regulations,
    Title 21, Section 312.21 (c) “Phase 3”, and means with regard to other countries a pivotal multi-center
    human clinical trial in a large number of patients to establish safety and efficacy in the particular claim and indication
    tested and required to obtain a Regulatory Approval.
	 	 	 	 
	 	“Prior
    Confidentiality	 	 
	 	Agreement”:	 	means
    that certain Mutual Confidentiality Agreement entered into by and between Buyer and Seller, effective as of August 8, 2017.
    
	 	 	 	 
	 	“Product”:
    	 	means
    a product which contains Teplizumab, whether or not as the sole API (i.e., including any Combination Product), in any dosage
    form, formulation (including lyophilizate or solution) and mode of administration and for all indications. For the sake of
    clarity, the term “Product” shall not be deemed to include any Device or Diagnostic Tool for purposes of determining
    if a First Commercial Sale has been made or for calculating Net Sales.

 

    	12

    	 

    

 

	 	“Product
    Intellectual 	 	 
	 	Property”:
    	 	means,
    any and all of (i) the Product Patents; and (ii) Product Know-How; and (iii) any copyrights, trademarks, domain names or any
    other intellectual property rights that are (a) [****] the Product and (b) Controlled by Seller as of the Closing Date. 
	 	 	 	 
	 	“Product
    Know-How”:	 	means
    Know-How which (i) is Controlled by Seller as of the Closing Date; (ii) was used for or created as a result of the Development
    or Commercialization of the Product prior to the Closing Date; and (iii) [****] relates to the manufacture, use, Development
    or Commercialization of the Product, whether patentable or not. A listing of certain Product Know-How is set forth on Exhibit
    8. 
	 	 	 	 
	 	“Product
    Patents”: 	 	means
    those patents and patent applications set forth in Exhibit 2.
	 	 	 	 
	 	“Program
    Contracts”	 	means
    the Assumed Contracts, the Inbound Licenses, the Outbound Licenses and the Service Contracts. 
	 	 	 	 
	 	“Program
    IP”: 	 	has
    the meaning set forth in Section 5.7(i) 
	 	 	 	 
	 	“Purchased
    Assets”:	 	means
    all right, title and interest of Seller in:

 

	 	(i)	the
    Product;
	 	 	 
	 	(ii)	the
    Assumed Contracts;
	 	 	 
	 	(iii)	the
    Product Intellectual Property;
	 	 	 
	 	(iv)	the
    Transferred Materials;
	 	 	 
	 	(v)	the
    INDs and CTAs; 
	 	 	 
	 	(vi)	the
    Transferable Books and Records; 
	 	 	 
	 	(vii)	any
    prepaid amounts under the Assumed Contracts; 
	 	 	 
	 	(viii)	all
    compensation, interests and other rights and benefits due under the Assumed Contracts that accrue after the Closing Date,
    including under any Outbound Licenses, but excluding the [****] Payment; and 
	 	 	 
	 	(ix)	all
    goodwill related to the foregoing. 

 

	 	“Qualified
    Consideration”:	 	means
    any consideration that Buyer or any of its Affiliates receive in connection with the (and, in a transaction in which rights
    to multiple products are transferred, to the extent allocable to a) grant of rights under the Product Intellectual Property
    and/or rights with respect Products in an agreement or arrangement with a Third Party (“Qualified Consideration Agreement”).
    In furtherance and not in limitation of the foregoing, Qualified Consideration shall not include (i) royalties based on Net
    Sales, (ii) amounts received to cover future reasonable, fully-burdened costs incurred or to be incurred by Buyer or its Affiliates
    in the performance of research, development or manufacturing activities to be performed by Buyer or its Affiliates after the
    Effective Date, (iii) amounts received as reimbursement for out-of-pocket costs incurred by Buyer in the preparation, filing,
    prosecution and maintenance of the Product Patents, or (iv) consideration for the issuance of equity interests in Buyer or
    its Affiliates to the extent there is no premium included in such issuance for rights granted with respect to the Product.
    If Buyer or its Affiliate receives non-cash consideration that otherwise qualifies as Qualified Consideration, the Qualified
    Consideration will be calculated based on the fair market value of such consideration, at the time of the transaction, assuming
    an arm’s length transaction made in the ordinary course of business. 

 

    	13

    	 

    

 

	 	“Reasonable
    Commercial 	 	 
	 	Efforts”:	 	means
    those efforts and resources to Develop a Product and Commercialize a Product that are consistent with the usual practice of
    Buyer in pursuing the development or commercialization of other compounds and pharmaceutical products in its portfolio that
    are at a similar development stage as the Product or are of a similar market potential as the Product, taking into account
    all relevant factors, including present and future market potential, and Buyer’s own pharmaceutical products that are
    of similar market potential, financial return, medical and clinical considerations, present and future regulatory environment
    and competitive market conditions, all as measured by the facts and circumstances at the time such efforts are due.
	 	 	 	 
	 	“Receiving
    Party”:	 	has
    the meaning provided in the definition of “Confidential Information.”
	 	 	 	 
	 	“Regulatory
    Approval	 	means
    approval by a Governmental Authority of (i) a New Drug Approval Application or Biologics License Application (each, as defined
    in the FFDCA) in the U.S., or (ii) any corresponding application for regulatory approval in any country or jurisdiction outside
    the U.S., including, with respect to the European Union, a Marketing Authorization Application filed with the EMA pursuant
    to the Centralised Approval Procedure or with the applicable Regulatory Authority of a country in Europe with respect to the
    decentralised procedure, mutual recognition or any national approval procedure.
	 	 	 	 
	 	“Related
    Party”:	 	has
    the meaning provided in the definition of “Net Sales” in this Section 1.1.
	 	 	 	 
	 	“Related
    Technology”: 	 	means
    all Know-How Controlled by Seller as of the Closing Date that is not Product Know-How and is necessary or useful for the Development,
    manufacture or Commercialization of Products; and (ii) all other Patents Controlled by Seller as of the Closing Date that
    (A) are not Product Patents; and (B) are necessary or useful for the Development, manufacture or Commercialization of Products.
    

 

    	14

    	 

    

 

	 	“Required
    Consents”: 	 	has
    the meaning set forth in Section 7.1(i).
	 	 	 	 
	 	“Retained
    Liabilities”:	 	means
    liabilities or obligations of any nature, whether known or unknown, fixed or contingent, accrued or unaccrued, to the extent
    arising in connection with the manufacture, Development or Commercialization of the Product, or the acts or omissions of Seller
    or its Affiliates prior to the Closing Date or in connection with the [****] Supply. For clarity, Retained Liabilities include
    but are not limited to (i) the obligations retained pursuant to Section 2.8, (ii) Excluded Taxes, (iii) any and all obligations
    in connection with the Related Technology and (iv) the JDRF Agreement.
	 	 	 	 
	 	“Second
    Indication”:	 	means
    a new indication (i.e., a generally recognized distinct medical condition) and not an extension of the First Indication or
    a labeling change covering the First Indication. 
	 	 	 	 
	 	“Seller”:
    	 	has
    the meaning set forth at the beginning of this Agreement.
	 	 	 	 
	 	“Service
    Contracts”: 	 	has
    the meaning set forth in Section 5.7(vi).
	 	 	 	 
	 	“Survival
    Period”: 	 	has
    the meaning set forth in Section 9.1(iii).
	 	 	 	 
	 	“Taxes”:
    	 	means
    all taxes of any kind including all U.S. federal, state, local or non-U.S. net income, capital gains, gross income, gross
    receipt, license, property, franchise, sales, use, excise, withholding, payroll, employment, social security, worker’s
    compensation, disability, severance, unemployment, health-care, stamp, occupation, capital stock, transfer, registration,
    value added, alternative, estimated, gains, windfall profits, net worth, asset, transaction and other taxes, whether computed
    on a separate or consolidated, unitary or combined basis or in any other manner, and any interest, penalties or additions
    to tax with respect thereto, imposed upon any Person by any taxing authority or other Governmental Authority under Applicable
    Law, whether disputed or not.
	 	 	 	 
	 	“Technology
    Transition 	 	 
	 	Plan”:	 	means
    a plan developed and jointly agreed upon by the Parties in good faith after Closing as set forth in Section 2.7 for Seller
    to transfer the Product Intellectual Property to Buyer.
	 	 	 	 
	 	“Teplizumab”:	 	means
    the compound “Teplizumab”, designated by Seller as MGA031, a novel cluster of differentiation 3 (“CD3”)
    partial agonist, as described in Exhibit 1.

 

    	15

    	 

    

 

	 	“Third
    Party”:	 	means
    any Person other than (i) Buyer or Seller, or (ii) an Affiliate of Buyer or Seller.
	 	 	 	 
	 	“Third
    Party Claims”: 	 	has
    the meaning set forth in Section 9.2.
	 	 	 	 
	 	“Third
    Party 	 	 
	 	Obligations”	 	means
    (i) the [****] Consideration; (ii) the [****] Royalty; and (iii) all royalties, milestones other consideration due to Third
    Parties in connection with sales of a Product or the assignment or other transfer of rights in connection with a Product or
    the Purchased Assets under agreements entered into by Seller or its predecessors in interest prior to the Closing Date.
	 	 	 	 
	 	“[****]”:	 	means
    the [****] entered into by and between [****] effective as of [****] and [****]. 
	 	 	 	 
	 	“[****]	 	 
	 	Consideration”:	 	means
    obligations to provide consideration to Tolerance under the [****], including such obligations under 2.5(c) of the [****];
    provided that this definition shall not include any [****].
	 	 	 	 
	 	“[****]
    Comfort Letter”:	 	means
    that certain letter agreement between Buyer, Seller and [****].
	 	 	 	 
	 	“Transaction
    Documents”: 	 	means
    the Warrant, Bill of Sale and General Assignment Agreement, Patent Assignment Agreement and Lock-Up Agreement. 
	 	 	 	 
	 	“Transfer
    Letter”: 	 	means
    the transfer letter to be submitted to each relevant Governmental Authority by Seller, in the form attached as Exhibit 9.
	 	 	 	 
	 	“Transferable
    Books	 	 
	 	 and
    Records”:	 	means
    all of the original (or if unavailable a copy) documents, Data, lists, files, records, research, studies, information and
    correspondence with Governmental Authorities, in whatever form kept, including electronic form, Controlled by Seller as of
    the Closing Date and relating solely and exclusively to the Assumed Contracts, the Product Intellectual Property or the Product,
    including all INDs and CTAs (including all amendments) and any other regulatory documentation to the extent solely and exclusively
    related to the Product, all clinical study reports, all data sets (SAS, ADaM, SDTM, etc.), copies of all Trial Master Files,
    all Financial Disclosure forms, the pharmacovigilance database and other similar books and records. Drafts, internal update
    reports, summaries of Data compiled for internal reporting, non-official communications and documents incidental to the Development
    and Commercialization of the Product conducted by Seller and which do not contain material Data or Product Know-How not otherwise
    subject to transfer to Buyer hereunder or under any Transaction Document are not deemed to be Transferrable Books and Records.

 

    	16

    	 

    

 

	 	“Transferred
    Materials”: 	 	means
    any and all of the biological and chemical materials and components used for or created as a result of the Development, manufacturing
    or Commercialization of the Product Controlled by Seller and relating solely and exclusively to the Product, including any
    work in progress, API, work product, inventory (including clinical supplies), master cell banks and working cell banks, as
    set forth in Exhibit 8 or in the Technology Transition Plan. 
	 	 	 	 
	 	“Valid
    Claim”:	 	means:
    (i) a claim of an issued and unexpired patent in the Product Patents that has not been (A) held permanently revoked, unenforceable,
    unpatentable or invalid by a decision of a court or governmental body of competent jurisdiction, unappealable or unappealed
    within the time allowed for appeal, (B) rendered unenforceable through disclaimer or otherwise, (C) abandoned or (D) permanently
    lost through an interference or opposition proceeding without any right of appeal or review; or (ii) a claim of a pending
    patent application in the Product Patents that (A) has been asserted and continues to be prosecuted in good faith and (B)
    has not been abandoned or finally rejected without the possibility of appeal or refiling, and (C) has not been pending longer
    than [****] years from the date of issuance of the first substantive patent office action considering patentability of such
    claim by the relevant patent office in the country or territory in which such claim is pending.
	 	 	 	 
	 	“Warrant”:	 	has
    the meaning set forth in Section 3.1.

 

	1.2	For
                                         purposes of this Agreement (i) words in the singular shall be held to include the plural
                                         and vice versa as the context requires, (ii) the words “including” and “include”
                                         shall mean “including, without limitation”, unless otherwise specified; (iii)
                                         the terms “hereof”, “herein”, “herewith”, and “hereunder”,
                                         and words of similar import shall, unless otherwise stated, be construed to refer to
                                         this Agreement as a whole and not to any particular provision of this Agreement; (iv)
                                         all references to “Article” or “Section”, unless otherwise specified,
                                         are intended to refer to an Article or a Section of this Agreement; and (v) all references
                                         to “Exhibit” or “Schedule”, unless otherwise specified, are intended
                                         to refer to an Exhibit or Schedule of this Agreement.

 

	2.	PURCHASE
AND SALE OF ASSETS

 

	2.1	Purchase
                                         and Sale of the Purchased Assets. Subject to the terms and conditions of this Agreement,
                                         on the Closing Date, Seller shall, or shall cause its relevant Affiliates to, sell, transfer,
                                         convey, assign and deliver to Buyer, free and clear from all Encumbrances (other than
                                         Permitted Encumbrances), and Buyer shall purchase, acquire and accept from Seller, and
                                         such Affiliates of Seller, all right, title and interest of Seller and such Affiliates
                                         in and to the Purchased Assets.
	 	 
	2.2	Assumption
                                         of Liabilities. On the Closing Date, Buyer shall assume and thereafter pay, perform
                                         and discharge when due, all Assumed Liabilities.

 

    	17

    	 

    

 

	2.3	Retained
                                         Rights. Notwithstanding anything to the contrary contained in this Agreement, from
                                         and after the Closing Date, other than the Purchased Assets and the license to Related
                                         Technology provided hereby, Seller shall retain all of its right, title and interest
                                         in and to all of its assets, including:

 

		(i)	all
                                         cash and cash equivalents of Seller and its Affiliates;

 

		(ii)	all
                                         Accounts Receivable of Seller and its Affiliates;

 

		(iii)	all
                                         Related Technology;

 

		(iv)	all
                                         the trademarks and service marks, the corporate logos and trade names of Seller and its
                                         Affiliates, together with any variations and derivatives thereof and any other logos,
                                         symbols or trademarks, trade names or service marks of Seller and its Affiliates;

 

		(v)	any
                                         refund or credit of taxes attributable to any tax period prior to the Closing Date;

 

		(vi)	all
                                         books and records other than the Transferrable Books and Records;

 

		(vii)	all
                                         tangible property owned by Seller and its Affiliates, other than such tangible property
                                         included in the Purchased Assets; and

 

		(viii)	except
                                         as expressly included in the Purchased Assets, all other properties, assets, goodwill
                                         and rights of Seller and its Affiliates of whatever kind and nature, real, personal,
                                         mixed, tangible or intangible.

 

	2.4	Retained
                                         Liabilities. Notwithstanding anything to the contrary contained in this Agreement,
                                         from and after the Closing Date, Buyer shall not assume any Retained Liability, each
                                         of which, as between the Parties, shall remain the sole and exclusive responsibility
                                         of Seller, irrespective of whether claims for such liabilities are brought on, before
                                         or after the Closing Date, and which Seller shall pay, perform and discharge when due.
	 	 
	2.5	Retention
                                         of Copies of Certain Assets. Notwithstanding anything to the contrary contained in
                                         this Agreement, Seller may retain, at its expense, and be able to use the information
                                         in, copies of any or all of the documentation that Seller or any of Seller’s Affiliates
                                         deliver to Buyer hereunder or that otherwise constitute Purchased Assets solely (i) for
                                         archival purposes, (ii) to fulfill or otherwise dispose of any of Seller’s rights
                                         or obligations under this Agreement, (iii) to comply with or fulfill its obligations
                                         under Applicable Law, including as necessary for any regulatory, tax or securities filing,
                                         (iv) for use in any pending or threatened legal or administrative claim, suit, demand
                                         or action, (v) subject to its confidentiality obligations under this Agreement, in connection
                                         with a financing, acquisition or similar transaction, or (vi) for such other purposes
                                         as Seller may reasonably request, subject to Buyer’s prior written consent, which
                                         shall be in Buyer’s sole discretion.
	 	 
	2.6	Related
                                         Technology License. Seller grants to Buyer, and Buyer accepts, a perpetual, worldwide,
                                         royalty-free, non-exclusive license, with right to grant sublicenses (including through
                                         multiple tiers), under the Related Technology solely in connection with the Development,
                                         manufacture and Commercialization of the Products. Buyer shall have the right to sublicense
                                         its rights under this Section 2.6 to (i) an Affiliate of Buyer or (ii) any Third Party
                                         in connection with a license, agreement or transaction under which Buyer grants such
                                         Third Party a right to Develop or Commercialize the Product; provided that in each case
                                         such sublicensee agrees in writing to be bound by Buyer’s obligations under this
                                         Section 2.6. Buyer shall provide Seller a copy of each executed sublicense entered into
                                         by Buyer under this agreement. Buyer shall (a) comply in all material respects with all
                                         Applicable Law relating to the Development, manufacture and Commercialization of Products;
                                         (b) not claim or represent through the use of the Related Technology that it has acquired
                                         any title in or ownership of the Related Technology; and (c) not register or permit any
                                         Related Party to register any industrial or intellectual property right embodying the
                                         Related Technology in any country without Seller’s prior written consent, which
                                         consent shall not be unreasonably withheld or delayed.

 

    	18

    	 

    

 

	2.7	Technology
                                         Transfer Transition Plan. As soon as practicable after the Closing Date, but in no
                                         case later than fifteen (15) Business Days after Closing the Parties shall meet in person
                                         at Seller’s offices to discuss and agree upon a written Technology Transition Plan
                                         that will, at a minimum, include the items set forth on Exhibit 8. Beginning on the Closing
                                         Date and for a period of one hundred and five (105) days after the Closing Date (the
                                         “Transition Period”), Seller shall use commercially reasonable efforts
                                         to transfer to Buyer, the Product Know-How, Transferred Materials and Transferable Books
                                         and Records in accordance with the Technology Transition Plan. As part of such technology
                                         transfer, for the first eighteen (18) months following the Closing Date, Seller shall
                                         provide to Buyer or its designee, such Product Know-How and Related Technology as reasonably
                                         requested by Seller to enable Seller to Develop, manufacture and Commercialize Products;
                                         provided that such Product Know-How and/or Related Technology is in Seller’s possession
                                         and reasonably capable of being transferred. Seller shall provide information and necessary
                                         support in accordance with the Technology Transition Plan. During the Transition Period,
                                         Seller shall bear its own expenses related to the Technology Transition Plan and the
                                         Technology Transfer. Buyer shall fund (a) all of the reasonable FTE costs incurred by
                                         Seller in the performance of the Technology Transition Plan after the Transfer Period
                                         and any subsequent transfer by Seller of Product Know-How, Transferred Materials or Transferable
                                         Books and Records on the basis of the FTE Rate per FTE and (b) all third party out-of-pocket
                                         expenses incurred by Seller in the performance of the Technology Transition Plan, to
                                         the extent such third party out-of-pocket costs are approved in writing in advance by
                                         Buyer. Buyer shall pay such FTE costs and such approved third party out-of-pocket expenses
                                         within thirty (30) days following receipt of an invoice therefor. Without limiting the
                                         foregoing, the Seller shall continue to support the technology transition efforts during
                                         the first eighteen (18) months following the Closing Date until all Transferred Materials
                                         and Transferable Books and Records have been effectively transferred to Buyer.
	 	 
	2.8	[****]
                                         and Payment. The Parties acknowledge that (a) pursuant to the [****], Seller agreed
                                         to [****] with [****] in the performance of a [****] relating to the Product, including
                                         by [****] of Product to [****]; and (b) the [****] Payment is a portion of the compensation
                                         to be paid by [****] for the rights granted to [****] pursuant to the [****] Agreement.
                                         In consideration of the foregoing, and notwithstanding anything to the contrary herein,
                                         the Parties agree that (i) Seller (or its designated vendor) shall retain [****] (as
                                         defined in the [****] Agreement) of the inventory of Product as required to [****] the
                                         [****] under the [****] Agreement; (ii) Seller shall, directly or through its vendor,
                                         [****] such quantities of Product as required to [****]; (iii) Seller shall have the
                                         right to directly request and receive the [****] Payment; and (iv) Buyer shall not supply
                                         Product to [****] until after the [****] has been [****] unless (A) Seller has breached
                                         the [****] obligation and (B) the failure of Buyer to [****] would result in a breach
                                         of the [****] Agreement. All obligations to Third Parties related to the safety, efficacy
                                         or non-conformance of the [****], including any obligation to replace Product or to engage
                                         independent laboratories for testing, shall be deemed Retained Liabilities and shall
                                         remain with the Seller and Seller shall discharge all such obligations as required under
                                         each applicable agreement or understanding related to the [****]. As reasonably requested
                                         by Seller, Buyer shall cooperate with Seller to support Seller’s efforts to fulfill
                                         the [****].
	 	 
	2.9	Grant
                                         Back. Buyer grants to Seller, and Seller accepts, a worldwide, royalty-free, non-exclusive
                                         license, with right to grant sublicenses, under the Purchased Assets solely to perform
                                         its obligations under this Agreement.

 

    	19

    	 

    

 

	3.	CONSIDERATION
AND PAYMENT

 

	3.1	Equity
                                         Interest. As partial consideration for the Purchased Assets, on the Closing Date
                                         the Buyer will issue to Seller a warrant to purchase 2,162,389 common shares, which is
                                         the number of common shares representing eight percent (8%) of Buyer’s fully diluted
                                         outstanding shares on the issue date. The warrant will be exercisable for the period
                                         beginning on the Closing Date and ending on the date that is seven (7) years from the
                                         Closing Date at a per share exercise price equal to two dollars and fifty cents ($2.50),
                                         the per share price at which the Series A Preferred Shares were issued pursuant to a
                                         separate warrant purchase agreement substantially in the form attached hereto as Exhibit
                                         10 (the “Warrant”).
	 	 
	3.2	Development
                                         and Regulatory Milestones. Buyer shall pay (which payments shall not be creditable
                                         against any other obligations of Buyer hereunder) a non-refundable payment for each of
                                         the milestone events set forth in this Section 3.2 (each a “Development and
                                         Regulatory Milestone”), whether the Development and Regulatory Milestone is
                                         achieved by Buyer, its Affiliates or Licensees, or any Third Party acting on behalf of
                                         Buyer, its Affiliates or Licensees. Payment for each of the Development and Regulatory
                                         Milestones shall be made only once regardless of how many times a Product achieves the
                                         corresponding Development and Regulatory Milestone, and no payment shall be due for any
                                         Development and Regulatory Milestone which is not achieved. The Development and Regulatory
                                         Milestones shall be as follows:

 

	Development
    and Regulatory Milestone	 	Payment
	[****]	 	[****]
    United States dollars ($[****])
	[****]	 	[****]
    United States dollars ($[****])
	[****]	 	[****]
    United States dollars ($[****])
	[****]	 	[****]
    United States dollars ($[****])
	[****]	 	[****]
    United States dollars ($[****])
	[****]	 	[****]
    United States dollars ($[****])

 

Buyer
shall provide Seller with written notice within thirty (30) days after the achievement of the corresponding Development and Regulatory
Milestone and the payment pertaining to such Development and Regulatory Milestone shall be made by Buyer to Seller within ninety
(90) days after the achievement of the corresponding Development and Regulatory Milestone.

 

	3.3	Earn-Out.

 

		(a)	Subject
                                         to Sections 3.3(b), (c) and (d), Buyer shall pay to Seller [****] percent ([****]%) of
                                         aggregate worldwide annual Net Sales of Product by Buyer, its Affiliates or Licensees,
                                         or any Third Party acting on behalf of Buyer, its Affiliates or Licensees of all Products
                                         in a given calendar year during the Earn-Out Term.
	 	 	 
		(b)	If,
                                         during a given calendar quarter when a Product is being Commercialized by or on behalf
                                         of Buyer, its Affiliates or Licensees in a particular country, there is Generic Competition
                                         in such country with respect to a Product, then the earn-out payment payable pursuant
                                         to Section 3.3(a) on the Net Sales of Product in such country shall thereafter be reduced
                                         to [****] percent ([****]%) of the amounts otherwise payable pursuant to Section 3.3(a)
                                         with respect to such Product in such country for such calendar quarter for so long as
                                         such Generic Competition remains.

 

    	20

    	 

    

 

		(c)	Beginning
                                         on the date of the First Commercial Sale of a Product, and thereafter until all payment
                                         obligations due in connection with the sale of Product under the [****] Agreement (as
                                         such obligations exist as of the Closing Date) are satisfied, the earn-out due to Seller
                                         set forth in Section 3.3(a) shall be reduced dollar-for-dollar by the amount payable
                                         by Buyer to [****] (or its successor in interest) under the [****] Agreement for the
                                         corresponding calendar quarter.
	 	 	 
		(d)	In
                                         the event that Buyer enters into a license with [****] in respect of the issue disclosed
                                         and further described on Schedule 5.7(vii), Buyer shall be entitled to credit
                                         [****] percent ([****]%) of the amount payable to [****] under such license in a given
                                         period in connection with such license against the amount payable to Seller under Section
                                         3.3(a) for the corresponding period.

 

	3.4	Commercial
                                         Milestones. Buyer shall pay a non-creditable, non-refundable milestone payment
                                         for each of the milestone events set forth in this Section 3.4 (each a “Commercial
                                         Milestone”), whether the Commercial Milestone is achieved by Buyer, its Affiliates
                                         or Licensees, or any Third Party acting on behalf of Buyer, its Affiliates or Licensees.
                                         Payment for each of the Commercial Milestones shall be made only once regardless of how
                                         many times a Product achieves the corresponding Commercial Milestone, and no payment
                                         shall be due for any Commercial Milestone which is not achieved. The Commercial Milestones
                                         shall be as follows:

 

	Commercial
    Milestone	 	Payment
	Aggregate
    worldwide Net Sales of Product that exceed [****] United States dollars ($[****]) based on the aggregate of all Net Sales
    of Product since the first commercial sale of Product	 	[****]
    United States dollars ($[****])
	Aggregate
    worldwide Net Sales of Product that exceed [****] United States dollars ($[****]) based on the aggregate of all Net Sales
    of Product since the first commercial sale of Product	 	[****]
    United States dollars ($[****])
	Aggregate
    worldwide Net Sales of Product that exceed [****] United States dollars ($[****]) based on the aggregate of all Net Sales
    of Product since the first commercial sale of Product	 	[****]
    United States dollars ($[****])

 

Buyer
shall provide Seller with written notice within sixty (60) days of Buyer becoming aware of the occurrence of any of the Commercial
Milestones (which awareness shall not be deemed to occur prior to twenty (20) days following the end of the fiscal quarter in
which such milestone was achieved) and the payment pertaining to such Commercial Milestone shall be made by Buyer to Seller within
ninety (90) days after the end of the calendar year in which such Commercial Milestone is achieved.

 

	3.5	Qualified
                                         Consideration. Buyer shall pay Seller an amount equal to [****] percent ([****]%)
                                         of all Qualified Consideration received pursuant to any Qualified Consideration Agreement;
                                         provided that if Buyer or its Affiliates enter into the Qualified Consideration Agreement
                                         after the Completion of the first Phase III Clinical Trial for a Product, then all such
                                         amounts paid to Seller shall be creditable against future milestones related to the applicable
                                         Product which are due to Seller in accordance with Section 3.2 or Section 3.4.

 

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	3.6	Reports.
                                         Within forty-five (45) days (sixty (60) days in the event that a Licensee has generated
                                         Net Sales) after the conclusion of each calendar quarter in which Net Sales are generated
                                         or Qualified Consideration is received, Buyer shall deliver to Seller a report containing
                                         the following information (in each instance, with a Product-by-Product and country-by-country
                                         breakdown): (i) the gross amount billed or invoiced for Products sold, leased or otherwise
                                         transferred by Buyer, its Affiliates and Licensees during the applicable calendar quarter;
                                         (ii) a calculation of Net Sales for the applicable calendar quarter, including an itemized
                                         listing of deductions; (iii) a detailed accounting of all Qualified Consideration received
                                         during the applicable calendar quarter, if any; and (iv) the total amount payable to
                                         Seller in U.S. Dollars on Net Sales and Qualified Consideration for the applicable calendar
                                         quarter, together with the exchange rates used for conversion.
	 	 
	3.7	Payments.
                                         Within forty-five (45) days (sixty (60) days in the event that a Licensee has generated
                                         Net Sales) after the end of each calendar quarter, Buyer shall pay Seller all amounts
                                         due with respect to Net Sales and Qualified Consideration for the applicable calendar
                                         quarter. All payments due under this Agreement will be paid in U.S. Dollars. Conversion
                                         of foreign currency to U.S. Dollars will be made at the conversion rate existing in the
                                         United States (as reported in The Wall Street Journal, Eastern Edition) on the
                                         last working day of the applicable Calendar Quarter. Such payments will be without deduction
                                         of exchange, collection or other charges.
	 	 
	3.8	Interest.
                                         MacroGenics shall be entitled to charge interest on any payment under this Agreement
                                         that is overdue, to the extent permitted by Applicable Laws, at the thirty-day United
                                         States Dollar London Interbank Offered Rate (LIBOR) effective for the date that payment
                                         was due (as published in The Wall Street Journal, Eastern Edition) plus [****]
                                         percent ([****]%), on a per year basis.
	 	 
	3.9	Taxes.
                                         Buyer and Seller do not anticipate there being any sales taxes, value added tax, use
                                         taxes, transfer taxes, or similar taxes or withholding requirements that will become
                                         payable in connection with the transactions under this Agreement. In the event any such
                                         taxes are payable or withholding is required by Applicable Laws, the Parties shall discuss
                                         in good faith and agree on a fair allocation of such taxes or withholding requirements;
                                         provided that in the absence of such agreement, the Parties shall equally bear any such
                                         taxes or withholding requirements. Seller shall bear any such taxes payable in connection
                                         with the manufacture or Development of the Product prior to the Closing Date, Buyer shall
                                         bear any such taxes payable in connection with the manufacture, Development or Commercialization
                                         of the Product on or after the Closing Date, and the Parties will cooperate in the filing
                                         of all necessary tax returns and other documentation with respect to all such taxes.
                                         For clarity, Buyer shall be responsible for all fees charged by Governmental Authorities,
                                         including recording or filing fees or similar charges, for effecting or recording the
                                         transfer to Buyer of any Purchased Assets. For further clarity, Seller shall remain exclusively
                                         liable for all corporate income tax, capital tax, and other corporate taxes imposed on
                                         the Seller.
	 	 
	3.10	Books
                                         and Records. With respect to each quarter in which a payment was due hereunder, Buyer
                                         will maintain complete and accurate books and records in sufficient detail to enable
                                         verification of the correctness of the payments due hereunder for a period of five (5)
                                         years after such quarter. Seller may audit Buyer’s and its Affiliates’ and
                                         Licensees’ relevant books and records in order to verify the aforesaid matters
                                         within the subject five year period. Upon reasonable prior notice and during normal business
                                         hours, Seller’s independent public accountants, subject to confidentiality obligations
                                         consistent with Article 7, shall have access to such books and records in order to conduct
                                         such a review or audit. The Parties shall reconcile any underpayment within sixty (60)
                                         days after the accountant delivers the results of the audit. If any audit performed under
                                         this Section 3.10 reveals an underpayment in excess of [****] percent ([****]%) in any
                                         calendar year, Buyer shall reimburse Seller for all amounts incurred in connection with
                                         such audit. Seller may exercise its rights under this Section 3.10 only once every year
                                         per audited entity, each period shall only be subject to audit with reasonable prior
                                         notice to the audited entity.

 

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	3.11	MGNX
                                         Stock Consideration. Notwithstanding anything to the contrary in this Agreement or
                                         any other agreement related to the transactions contemplated herein, Seller shall be
                                         solely responsible for, and shall perform when required under the Assumed Contracts,
                                         all obligations related to the issuance of MGNX Stock Milestones.

 

	4.	CLOSING
DELIVERIES

 

	4.1	Time
                                         and Place. The closing of the transactions contemplated by this Agreement, including
                                         the purchase and sale of the Purchased Assets (the “Closing”), shall
                                         take place simultaneously with the signing of this Agreement, by electronic exchange
                                         of documents or otherwise at the offices of Seller, on the Closing Date, unless another
                                         place shall be agreed to by the Parties.
	 	 
	4.2	Seller
                                         Closing Deliveries. At Closing, Seller shall deliver or cause to be delivered to
                                         Buyer:

 

		(i)	the
                                         Bill of Sale and General Assignment Agreement (the “Bill of Sale and General
                                         Assignment Agreement”) attached hereto as Exhibit 6, duly executed by Seller;
	 	 	 
		(ii)	the
                                         Patent Assignment Agreement, duly executed by Seller;
	 	 	 
		(iii)	copies
                                         in electronic form of the documents placed in the Data Room prior to the Closing Date;
	 	 	 
		(iv)	a
                                         duly executed copy of the Transfer Letter for each IND and CTA;
	 	 	 
		(v)	the
                                         Lock-Up Agreement, duly executed by Seller; and
	 	 	 
		(vi)	a
                                         copy of all Consents and Waivers, duly executed by Seller and each consenting Third Party.

 

	4.3	Buyer
                                         Closing Deliveries. At Closing, Buyer shall deliver or cause to be delivered to Seller:

 

		(i)	the
                                         Warrant, duly executed by the Buyer;

 

		(ii)	the
                                         Lock-Up Agreement, duly executed by MDB Capital;

 

		(iii)	the
                                         Bill of Sale and General Assignment Agreement, duly executed by Buyer;

 

		(iv)	the
                                         Patent Assignment Agreement, duly executed by Buyer; and

 

		(v)	a
                                         copy of all Consents and Waivers to which Buyer is a party, duly executed by Buyer.

 

	5.	REPRESENTATIONS
AND WARRANTIES OF SELLER

 

	5.1	Seller
                                         hereby makes to Buyer the following representations and warranties set forth in Section
                                         5.2 through 5.21, as of the Closing Date.
	 	 
	5.2	Corporate
                                         Organization. Seller is a corporation duly organized, validly existing and in good
                                         standing under the Applicable Laws of the State of Delaware.

 

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	5.3	Authority
                                         of Seller. Seller has all necessary power and authority and has taken all actions
                                         necessary to enter into this Agreement and the other Transaction Documents and to carry
                                         out the transactions contemplated hereby and thereby. This Agreement and the other Transaction
                                         Documents have been duly and validly executed and delivered by Seller and, when executed
                                         and delivered by Buyer, will constitute legal, valid and binding obligations of Seller
                                         enforceable against it in accordance with their respective terms except (i) as limited
                                         by applicable bankruptcy, insolvency, reorganization, moratorium and other Applicable
                                         Laws of general application affecting enforcement of creditors’ rights generally,
                                         and (ii) as limited by Applicable Laws relating to the availability of specific performance,
                                         injunctive relief or other equitable remedies. The execution, delivery and performance
                                         of this Agreement and all agreements, documents and instruments executed and delivered
                                         by Seller pursuant hereto, have been duly authorized by all necessary corporate or other
                                         action of Seller.
	 	 
	5.4	Non-Contravention.
                                         The execution and delivery by Seller of this Agreement and the other Transaction Documents
                                         to which it is a party, does not, and the performance by it or its relevant Affiliates
                                         of its or their obligations under this Agreement and the other Transaction Documents
                                         and the consummation of the transactions contemplated hereby and thereby will not:

 

		(i)	conflict
                                         with or result in a material violation or breach of any of the terms, conditions or provisions
                                         of the Certificate of Incorporation or Bylaws or other organizational documents of Seller
                                         or its relevant Affiliates or of any Program Contract;

 

		(ii)	assuming
                                         the receipt of the Required Consents, conflict with or result in a material violation
                                         or breach of any term or provision of any Applicable Law that applies to Seller, the
                                         Product or the Purchased Assets;

 

		(iii)	other
                                         than the Required Consents, the Transfer Letter and the transfer of any other regulatory
                                         documentation, require from Seller any notice to, declaration or filing with, or consent
                                         or approval of, any Governmental Authority in any country or other Third Party (other
                                         than any filing of Product Patents required to be made in accordance with the terms of
                                         this Agreement); or

 

		(iv)	assuming
                                         the receipt of the Required Consents, accelerate any obligation under, or give rise to
                                         a right of termination of, any Program Contract.

 

	5.5	Title;
                                         Encumbrances. Seller has exclusive, good, valid and marketable title to all of the
                                         Purchased Assets and full right and power to sell, convey, assign, transfer and deliver
                                         such title to Buyer, in each case free and clear from any and all Encumbrances, except
                                         with respect to any Permitted Encumbrance.
	 	 
	5.6	Contracts.
                                         Seller has made available to Buyer true, correct and complete copies of the Program Contracts.
                                         Except as set forth on Schedule 5.6 of the Disclosure Schedules, no cancellation of any
                                         Program Contract has occurred, Seller has not received any written notice of cancellation
                                         of any Program Contract by the other party thereto and, each Program Contract is legal,
                                         valid, binding and enforceable in all material respects in accordance with its terms
                                         with respect to Seller and, to the Knowledge of Seller, with respect to each other party
                                         to such Program Contract, except as enforceability may be limited by applicable bankruptcy,
                                         insolvency, reorganization, moratorium or other similar Applicable Laws affecting the
                                         enforcement of creditors’ rights in general and general principles of equity and
                                         the discretion of courts in granting equitable remedies. There does not exist under any
                                         Program Contract any material breach or material event of default, or event or condition
                                         that, after notice or lapse of time or both, would constitute a material breach or material
                                         event of default thereunder on the part of Seller or any of its Affiliates or, to Seller’s
                                         Knowledge, on the part of any other party thereto. The JDRF Agreement has been terminated
                                         and all obligations thereunder have been satisfied.

 

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	5.7	Intellectual
                                         Property.

 

		(i)	As
                                         of the Closing Date each item of Product Intellectual Property is Controlled by Seller
                                         free and clear of any Encumbrances, other than the Permitted Encumbrances. The Product
                                         Intellectual Property, together with the Related Technology (the “Program IP”),
                                         constitutes all of the intellectual property Controlled by Seller and/or any of its Affiliates
                                         as of the Closing Date that is used or held for use in connection with, or otherwise
                                         necessary or useful for the manufacture, Development or Commercialization of the Product.
                                         Except as set forth on Schedule 5.7(i) of the Disclosure Schedules, neither Seller, nor
                                         any of its Affiliates, transferred ownership of, or granted any license of, or right
                                         to use, or authorized the retention of any rights to use or joint ownership of any Product
                                         Intellectual Property to any other Person.

 

		(ii)	Exhibit
                                         2 sets forth a true, correct and complete list of all Patents Controlled by Seller that
                                         are solely and exclusively related to the Product (the “Listed Patents”)
                                         including, in each case, the title, jurisdiction(s) in which each Patent was or is filed,
                                         and the respective application number, patent number (if any), filing date and issuance
                                         date (if any). Seller has taken all actions required to duly file and maintain the Listed
                                         Patents in a timely manner, including the timely submission of all necessary filings
                                         in accordance with the legal and administrative requirements of the appropriate Government
                                         Authority. Neither Seller nor any of its Affiliates has received any written notice of
                                         any inventorship challenge, ownership dispute, Third Party right, interference, patentability,
                                         validity or enforceability with respect to any Listed Patent. Seller has made timely
                                         payment of any filing, registration, examination, maintenance, annuity and renewal fees
                                         due with respect to the Listed Patents, and the Listed Patents are not subject to any
                                         unpaid fees or taxes for filings falling due within sixty (60) days after the Closing
                                         Date.

 

		(iii)	Seller
                                         has not received any written communication from any Person (A) challenging, or threatening
                                         to challenge, the right of Seller or any of its Affiliates to use, exercise, sell, license,
                                         transfer or dispose of any Program IP or the Product, or (B) challenging the ownership,
                                         validity or enforceability of any Program IP. To Seller’s Knowledge, (A) all issued
                                         Patents included in the Listed Patents are valid, subsisting, and enforceable; and (B)
                                         all Patent applications included in the Listed Patents are subsisting and, to Seller’s
                                         Knowledge, valid and enforceable. Seller and its Affiliates have complied (and to Seller’s
                                         Knowledge, any other Person involved in filing, maintaining and prosecution of the Listed
                                         Patents, have complied) in all material respects with Applicable Law regarding the duty
                                         to disclose and duties of candor in the filing, maintaining and prosecution of the Listed
                                         Patents.

 

		(iv)	Schedule
                                         5.7(iv) lists all licenses, sublicenses and other agreements in effect as of the
                                         Closing Date to which Seller or any of its Affiliates is a party and pursuant to which
                                         any Third Party is granted (A) any license or other right to make, have made, use, sell,
                                         have sold, offer for sale, import or otherwise distribute or exploit any Product, including
                                         any materials transfer agreements and research agreements related to the Product, and
                                         any other material instrument by which the Product has been provided to any Third Party
                                         for research or any other purpose, (B) any covenant not to assert/sue or other immunity
                                         from suit under or any other rights to, any Product Intellectual Property, (C) any ownership
                                         right or title, whether actual or contingent, to any Product Intellectual Property, or
                                         (D) an option or right of first refusal relating to any Product Intellectual Property
                                         (collectively, “Outbound Licenses”). Seller has delivered or otherwise
                                         made available to Buyer accurate and complete copies of all Outbound Licenses, and Seller
                                         or its applicable Affiliate is in compliance with (and, to Seller’s Knowledge,
                                         each other party to such Outbound Licenses are in compliance with) all material terms
                                         and conditions of all Outbound Licenses. Except as set forth on Schedule 5.7(iv), neither
                                         Seller nor any of its Affiliates is party to any contract that provides for earn-outs,
                                         milestone payments, royalties or other contingent payments to be paid to Seller or its
                                         Affiliates related to the development, approval, manufacture, use, sale, offer for sale,
                                         or import or other exploitation of any Product.

 

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		(v)	Schedule
                                         5.7(v) lists all licenses, sublicenses and other agreements in effect as of the Closing
                                         Date to which Seller or any of its Affiliates is a party and pursuant to which any Third
                                         Party grants to Seller or any of its Affiliates (A) any license or other right to make,
                                         have made, use, sell, have sold, offer for sale, import or otherwise distribute or exploit
                                         any Product, (B) any covenant not to assert/sue or other immunity from suit under or
                                         any other rights to, any intellectual property rights claiming or covering the development,
                                         approval, manufacture, use, sale, offer for sale, or import or other exploitation of
                                         any Product and/or otherwise related to the Product Intellectual Property, (C) any ownership
                                         right or title, whether actual or contingent, to any intellectual property rights claiming
                                         or covering the development, approval manufacture, use, sale, offer for sale, or import
                                         or other exploitation of any Product and/or otherwise related to the Product Intellectual
                                         Property, or (D) an option or right of first refusal relating to any intellectual property
                                         rights claiming or covering the development, approval, manufacture, use, sale, offer
                                         for sale, or import or other exploitation of any Product and/or otherwise related to
                                         the Product Intellectual Property (collectively, “Inbound Licenses”).
                                         Schedule 5.7(v) also identifies all Inbound Licenses requiring Seller or any of
                                         its Affiliates to license, assign or otherwise grant rights to any Third Party for any
                                         additions, modifications or improvements to any Product Intellectual Property made by
                                         or for Seller or its Affiliates. Seller has delivered or otherwise made available to
                                         Buyer copies of all Inbound Licenses, and Seller or its Affiliate, as applicable, is
                                         in compliance with (and, to Seller’s Knowledge, each other party to such Inbound
                                         Licenses are in compliance with) all material terms and conditions of all Inbound Licenses.

 

		(vi)	Schedule
                                         5.7(vi) lists agreements for Development (including pre-clinical and clinical) or
                                         other services currently being provided by any Third Party or under which Seller has
                                         outstanding obligations related to the Product and/or the Product Intellectual Property
                                         (“Service Contracts”). Seller has delivered or otherwise made available
                                         to Buyer copies of all Service Contracts, and Seller or its Affiliate, as applicable,
                                         is in compliance with (and, to Seller’s Knowledge, each other party to such Service
                                         Contracts are in compliance with) all material terms and conditions of all Service Contracts.

 

		(vii)	Except
                                         as set forth in Schedule 5.7(vii) of the Disclosure Schedules, neither Seller, nor any
                                         of its Affiliates, has received any written communication, claim or demand from any Third
                                         Party concerning Third Party intellectual property rights in connection with the Product,
                                         or alleging that any material infringement, violation or misappropriation of any Third
                                         Party’s intellectual property rights has occurred with respect to the Program IP
                                         or as a result of the manufacture, Development or Commercialization of the Product. During
                                         the last three (3) years, neither Seller nor any of its Affiliates has received any written
                                         communication alleging that the conduct of the practice of any Program IP violates any
                                         right to privacy or publicity of any Person, violates any Applicable Laws or constitutes
                                         unfair competition or trade practices under Applicable Law. To the Knowledge of Seller
                                         as of the Closing Date, neither the past or current Development, manufacture (including
                                         use of certain cells to produce Teplizumab for the Product), Commercialization, use,
                                         sale or import of Teplizumab or the Product has or would infringe, misappropriate or
                                         otherwise violate the intellectual property rights of any Third Party as of the Closing
                                         Date.

 

		(viii)	Seller
                                         has taken customary measures and precautions necessary to protect and maintain the confidentiality
                                         of the Product Know-How. During the last three (3) years, neither Seller nor any Seller
                                         Affiliate has received any written communication alleging any violation of Applicable
                                         Laws pertaining to the privacy and security of protected health information within any
                                         clinical data or regulatory materials related to the Product.

 

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		(ix)	Each
                                         current or former employee, consultant and independent contractor employed or engaged
                                         by Seller or any of its Affiliates in the manufacture, Development or Commercialization
                                         of Product has executed a valid and binding written agreement (A) expressly assigning
                                         to Seller all right, title and interest in any intellectual property rights which relate
                                         the Product and were invented, created, developed, conceived or reduced to practice during
                                         the term of such employee’s, consultant’s or and independent contractor’s
                                         employment or engagement; and (B) requiring each such employee, consultant or independent
                                         contractor to protect and preserve all applicable Program IP. Such assignments have been
                                         directly assigned to Seller or its Affiliates.

 

		(x)	Except
                                         as set forth in Schedule 5.7(x) of the Disclosure Schedules, neither Seller nor any of
                                         its Affiliates has (A) sought, applied for or received any support, funding, resources,
                                         materials or assistance from any Government Authority, university, college or other educational
                                         or non-profit institution or research center in connection with the creation or development
                                         of the Product Intellectual Property or the Product, or (B) used any facilities of a
                                         university, college, or other educational institution or research center in the development
                                         of any Product or the creation or development of the Product Intellectual Property. To
                                         Seller’s Knowledge, no current or former employee, consultant or independent contractor
                                         who was in any way involved in (or has in any way contributed to) the creation or development
                                         of the Product Intellectual Property or the Product has performed services for any Government
                                         Authority, university, college or other educational or non-profit institution or research
                                         center during a period of time during which such employee, consultant or independent
                                         contractor was also performing services for Seller or Seller Affiliates that would result
                                         in any adverse claim or right relating to the Product Intellectual Property. Except as
                                         set forth in Schedule 5.7(x) of the Disclosure Schedules, no Government Authority, university,
                                         college or other educational or non-profit institution or research center has any claim
                                         of right to ownership of or other liens, claims or interests with respect to the Product
                                         Intellectual Property.

 

	5.8	Compliance
                                         with Law. Seller has complied in all material respects with and is not in material
                                         breach, violation or noncompliance of any Applicable Laws with respect to the ownership,
                                         use, manufacture or Commercialization of the Product, except for such non-compliance
                                         as would not reasonably be expected to materially adversely affect Buyer’s interest
                                         in the Purchased Assets or Buyer’s ability to Develop, manufacture or Commercialize
                                         any Product.

 

	5.9	Litigation.
                                         During the past five (5) years there have been no, and as of the Closing Date there are
                                         no Third Party Claims pending or, to the Knowledge of Seller, threatened against Seller,
                                         relating to, affecting or arising in connection with (i) a Product, (ii) the Purchased
                                         Assets, (iii) this Agreement, (iv) the Related Technology or (v) the transactions contemplated
                                         by this Agreement. To the Knowledge of Seller, no event has occurred, and no condition
                                         or circumstance exists, that can be reasonably expected to serve as a basis for the commencement
                                         of any such Third Party Claims against Seller with respect to the manufacture or Development
                                         of a Product until the Closing Date. Neither the Related Technology, nor the Purchased
                                         Assets are subject to any judgment, order, writ, injunction, decree or award of any court,
                                         arbitrator or governmental department, commission, board, bureau, agency or instrumentality
                                         against Seller that can reasonably be expected to materially and adversely affect, prevent,
                                         impair or delay the consummation of this Agreement.

 

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	5.10	Regulatory
                                         Compliance; Debarment. As of the Closing Date: (i) there is no pending or, to the
                                         Knowledge of Seller, threatened Action or Proceeding by a Governmental Authority against
                                         Seller relating to the Product, the Related Technology or the Purchased Assets, (ii)
                                         there is no pending or, to the Knowledge of Seller, threatened Action or Proceeding by
                                         a Governmental Authority against a Product Developed, manufactured or Commercialized
                                         by or on behalf of Seller or against any Purchased Assets, (iii) there is no act or omission
                                         by, or event or circumstance known to the Seller that, to the Knowledge of the Seller,
                                         would or reasonably would be expected to result in an Action or Proceeding by a Governmental
                                         Authority against Seller relating to the Product, the Related Technology or the Purchased
                                         Assets, (iv) all required submissions to the FDA related to Seller’s manufacture
                                         or Development of the Product have been made, (v) all submissions made by or on behalf
                                         of Seller to the FDA or any other Governmental Authority, if any, are accurate and complete
                                         in all material respects; (vi) there is no arrangement to which Seller is a party or
                                         authorized by Seller providing for any rebates, kickbacks or other forms of compensation
                                         that are unlawful to be paid to any Person in return for the referral of business or
                                         for the arrangement for recommendation of such referrals, (vii) neither Seller, nor any
                                         individual who is an officer or director of Seller as of the Closing Date, nor, to the
                                         Knowledge of Seller, any other employee, consultant, agent of Seller or any of Seller’s
                                         predecessors in interest or its collaborators, directly involved in the Development or
                                         manufacture of a Product (A) has been convicted of, charged with or, to the Knowledge
                                         of Seller, investigated for any offense related to healthcare, or (B) has been convicted
                                         of, charged with or, to the Knowledge of Seller, investigated for a violation of Applicable
                                         Laws related to fraud, theft, embezzlement, breach of fiduciary responsibility, financial
                                         misconduct, obstruction of an investigation or distribution of controlled substances,
                                         (C) has engaged in any conduct that has resulted, or would reasonably be expected to
                                         result, in debarments under 21 U.S.C. § 335a(a) or any similar Applicable Laws,
                                         or (D) committed an act, made a statement or failed to make a statement that would provide
                                         the basis for the FDA to invoke its policy respecting “Fraud, Untrue Statements
                                         of Material Facts, Bribery, and Illegal Gratuities,” as set forth in 56 Fed. Reg.
                                         46191 (September 10, 1991), (viii) there have been no recalls, field notifications or
                                         seizures or adverse regulatory actions taken (or, to the Knowledge of Seller after reasonable
                                         investigation, threatened) by any Governmental Authority with respect to the Product
                                         or, to the Knowledge of Seller, an ingredient of a Product, including any such actions
                                         materially and adversely affecting facilities where the Product or Product ingredients
                                         are manufactured, produced, processed, packaged or stored for Seller, and Seller has
                                         not, either voluntarily or at the request of any Governmental Authority, initiated or
                                         participated in a recall of a Product.	 

	5.11	Disclosures.
                                         Seller has made available to Buyer true, correct and complete copies of (i) all Program
                                         Contracts; (ii) the INDs and CTAs and all material Product related information that Seller
                                         is required to maintain pursuant to the requirements of the FDA, including Product complaint
                                         files and labeling change files, (iii) all Patents Controlled by Seller, to the extent
                                         not publicly available, relating to the Product or its manufacture or Commercialization
                                         and to the extent included in the Product Patents, (iv) the Transferrable Books and Records,
                                         including the complete regulatory file for the Product. Neither Seller nor any Affiliate
                                         is a party to any unwritten agreement directly relating to the Development, manufacture
                                         or Commercialization of Product that would materially adversely affect the sale, use,
                                         manufacture or Commercialization of a Product. Except as set forth on Schedule 5.11 of
                                         the Disclosure Schedules, Seller has not granted to a Third Party any right, and no Third
                                         Party has any right under the INDs and CTAs or the Product Intellectual Property, to
                                         manufacture, Develop or Commercialize the Product. To the Knowledge of Seller, all information
                                         provided by Seller to Buyer relating to the manufacture, Development and Commercialization
                                         of the Product has not contained any untrue statement of a material fact or intentionally
                                         omitted to state a material fact necessary in order to make the statements therein not
                                         misleading in light of the circumstances under which they were made.	 

 

	5.12	Brokers.
                                         Seller has not retained any broker in connection with the transactions contemplated under
                                         this Agreement. Buyer will have no obligation to pay fees of any brokers, finders, investment
                                         bankers, or financial advisors engaged by Seller in connection with this Agreement or
                                         the transactions contemplated hereby.	 

 

	5.13	Solvency.
                                         Seller has entered into this Agreement in good faith as a result of arms-length negotiations
                                         with Buyer. Seller is not entering into this Agreement or any transaction contemplated
                                         hereunder with the intent to hinder, delay or defraud any Person to which it is, or may
                                         become, indebted. As of the Closing Date, Seller has the capacity and financial capability
                                         to comply with and perform all of the covenants and obligations under this Agreement.
                                         Further, as of the Closing, giving effect to the consummation of all of the transactions
                                         contemplated by this Agreement, including, without limitation, the transfer and delivery
                                         of the Purchased Assets, will not cause Seller to be insolvent under any Applicable Law
                                         relating to fraudulent transfers or fraudulent conveyance.

 

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	5.14	[****]
                                         Agreement; Third Party Obligations. The [****] Agreement has been terminated and
                                         the [****] described in Amendment No. 2 to the [****] Agreement, dated as of [****],
                                         has been completed. There are no outstanding obligations or liabilities related to the
                                         Product or the Purchased Assets under the [****] Agreement. The total amount due under
                                         the [****]Agreement, as agreed between [****]Buyer and Seller in the [****] Consent is
                                         [****] U.S. dollars ($[****]) and is exclusively due as a royalty on sales of Product.
                                         Schedule 5.14(ii) sets forth a true, complete and correct list of the Third Party Obligations
                                         that would be payable on sales of Product.

 

	5.15	Clinical
                                         Trials. Schedule 5.15 contains a complete listing of all clinical trials conducted
                                         using Product, including any investigator-Sponsored studies. The preclinical studies
                                         and clinical trials of the Product conducted by or on behalf of Seller were and, if still
                                         ongoing, are being conducted in all material respects in accordance with experimental
                                         protocols, procedures and controls pursuant to accepted professional scientific standards
                                         and all Applicable Laws (including, to the extent applicable, cGLPs and cGCPs). All required
                                         IRB approvals have been obtained and are currently in place for any ongoing clinical
                                         trials of Product. Valid informed consents have been obtained and are in the Seller’s
                                         possession or control for all patients who have been in Seller’s clinical trials
                                         of Product. All adverse experiences occurring in clinical trials have been reported to
                                         FDA as required. All Product used in such clinical trials materially complied with all
                                         Applicable Laws (including, to the extent applicable, cGMPs), and there have not been
                                         any material deficiencies or defects in such Product. Neither Seller, nor any of its
                                         agents, or to its Knowledge and of its collaborators, have received any written notices
                                         or correspondence from the FDA or any other Government Authority requiring the termination,
                                         suspension, hold or material modification of any preclinical study or clinical trial
                                         of a Product conducted by or on behalf of Seller. Neither Seller nor any of its agents,
                                         or to its Knowledge any of its collaborators, have received any written communication
                                         from any Person threatening any claim or lawsuit against Seller, any of its agents or
                                         its collaborators, arising from the administration of a Product to any Person in the
                                         course of any clinical trial conducted by or on behalf of Seller. FDA has not issued
                                         any 483 or finding of deficiency or non-compliance in respect of the Product, any clinical
                                         trial of the Product, or any Third Party involved in the conduct of a clinical trial
                                         of the Product.

 

	5.16	Undisclosed
                                         Liabilities. To Seller’s Knowledge, except for liabilities to Seller and any
                                         liabilities which are disclosed on Schedule 5.14(ii), there is no financial or economic
                                         liability that would be due in connection with the Development, manufacturing or Commercialization
                                         of the Product under agreements that were entered into by Seller, or to its Knowledge,
                                         its predecessors in interest prior to the Closing Date.

 

	5.17	Transferred
                                         Materials; Suppliers. The Transferred Materials have been manufactured in compliance
                                         with all Applicable Laws including cGMP and have met all applicable specifications, except
                                         as would not materially adversely affect Buyer’s ability to manufacture, Develop
                                         or Commercialize the Product. Neither Seller nor any Third Party has received any written
                                         notices or correspondence from the FDA or any other Government Authority regarding the
                                         Transferred Materials.

 

	5.18	Sufficiency;
                                         Development and Manufacturing Pre-Closing. The Transferable Notes and Books accurately
                                         describe and document the Development and manufacturing of the Product in the manner
                                         done by Seller prior to the Closing Date. The Purchased Assets, together with the Related
                                         Technology, constitute the intellectual property rights necessary for the Development
                                         or manufacturing of the Product in the manner done by Seller prior to the Closing Date.
                                         Except for intellectual property rights that constitute Related Technology or that are
                                         included in the Purchased Assets, there are no intellectual property rights that Seller
                                         has an interest in prior to the Closing Date that are necessary for the Commercialization
                                         of the Product.

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	5.19	Data
                                         Room. All information and documentation contained in the Data Room, to which Buyer
                                         has been provided access, is true and accurate in all material respects and reflects
                                         the subject matter to which it relates. The Data Room (i) contains all material information
                                         in order to give a true and documentation fair view of the Purchased Assets, the Assumed
                                         Liabilities and the Product, (ii) does not include any matter of material importance
                                         which is incorrect or misleading, and (iii) does not omit any information which is of
                                         material importance, which by omission would make the contents of the Data Room materially
                                         incorrect or misleading, except as would not materially adversely affect Buyer’s
                                         interest in the Purchased Buyer’s interest in the Purchased Assets or Buyer’s
                                         ability to Develop, manufacture or Commercialize any Product.

	5.20	Insurance.
                                         All of the Purchased Assets which are of an insurable nature have at all material times
                                         been insured against all such risks as persons carrying on a similar business to the
                                         Seller would be expected to cover by insurance. Seller has at all relevant times maintained
                                         adequate product liability insurance and insurance covering clinical trials related to
                                         the Product performed by it or on its behalf.

	5.21	Accredited
                                         Investor. Seller is an “accredited investor” within the meaning of Rule
                                         501 of Regulation D under the Securities Act of 1933 (the “Securities Act”),
                                         as amended. The Seller has substantial experience in evaluating and investing in securities
                                         in companies similar to the Buyer so that Seller is capable of evaluating the merits
                                         and risks of Seller’s investment in Buyer (pursuant to the Warrant) and has the
                                         capacity to protect Seller’s own interests. The Seller is acquiring the Warrant
                                         (and the shares issuable upon exercise of this Warrant) for investment for Seller’s
                                         own account, not as a nominee or agent, and not with the view to, or for resale in connection
                                         with, any distribution thereof. Seller understands that the Warrant (and the shares issuable
                                         upon exercise of the Warrant) have not been, and will not be, registered under the Securities
                                         Act by reason of a specific exemption from the registration provisions of the Securities
                                         Act which depends upon, among other things, the bona fide nature of the investment intent
                                         and the accuracy of Seller’s representations as expressed herein and in the Warrant.

	5.22	No
                                         Other Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS OR WARRANTIES
                                         EXPRESSLY SET FORTH IN THIS ARTICLE 5 OR IN ANY OTHER TRANSACTION DOCUMENTS, SELLER DISCLAIMS
                                         ANY AND ALL OTHER REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS OR IMPLIED, ORAL OR
                                         WRITTEN, INCLUDING ANY INFORMATION FURNISHED BY SELLER WITH REGARD TO THE PRODUCT OR
                                         THE PURCHASED ASSETS, INCLUDING THE FUTURE PROFITABILITY OF ANY PRODUCT, WARRANTIES OF
                                         MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT OF INTELLECTUAL
                                         PROPERTY RIGHTS.

6.
REPRESENTATIONS AND WARRANTIES OF BUYER

 

	6.1	Representations
                                         and Warranties. Buyer hereby makes to Seller the representations and warranties set
                                         forth in Sections 6.2 through 6.8, as of the Closing Date.

 

	6.2	Corporate
                                         Organization. Buyer is a corporation duly organized, validly existing and in good
                                         standing under the Applicable Laws of Delaware.

 

    	30

    	 

    

 

	6.3	Authority
                                         of Buyer. Buyer has all necessary power and authority and has taken all actions necessary
                                         to enter into this Agreement and the Transaction Documents and to carry out the transactions
                                         contemplated hereby and thereby. This Agreement and all Transaction Documents have been
                                         duly and validly executed and delivered by Buyer and, when executed and delivered by
                                         Seller, will constitute legal, valid and binding obligations of Buyer enforceable against
                                         it in accordance with their terms except (i) as limited by applicable bankruptcy, insolvency,
                                         reorganization, moratorium and other Applicable Laws of general application affecting
                                         enforcement of creditors’ rights generally, and (ii) as limited by Applicable Laws
                                         relating to the availability of specific performance, injunctive relief or other equitable
                                         remedies. The execution, delivery and performance of this Agreement and all agreements,
                                         documents and instruments executed and delivered by Buyer pursuant hereto, have been
                                         duly authorized by all necessary corporate or other action of Buyer.

 

	6.4	Non-Contravention.
                                         The execution and delivery by Buyer of this Agreement does not, and the performance by
                                         it of its obligations under this Agreement and the consummation of the transactions contemplated
                                         hereby will not:

 

	 	(i)
    	conflict
    with or result in a material violation or breach of any of the terms, conditions or provisions of the Articles of Incorporation,
    Bylaws or other organizational documents of Buyer;
	 	 	 
	 	(ii)	assuming
    the receipt of the Required Consents, violate, conflict with or result in a violation of, or constitute a default (whether
    after the giving of notice, lapse of time or both) under, any provision of any Applicable Law, regulation or rule, or any
    order of, or any restriction imposed by, any court or governmental agency applicable to Buyer; 
	 	 	 
	 	(iii)	other
    than the Required Consents, require from Buyer any notice to, declaration or filing with, or consent or approval of any Governmental
    Authority in any country or other Third Party; or
	 	 	 
	 	(iv)	assuming
    the receipt of the Required Consents, violate or result in a violation of, or conflict with or constitute or result in a violation
    of or default (whether after the giving of notice, lapse of time or both) under, accelerate any obligation under, or give
    rise to a right of termination of, any contract, agreement, permit, license, authorization or other obligation to which Buyer
    is a party or by which Buyer or any of its assets are bound.

 

	6.5	Financial
                                         Capability. Buyer has entered into this Agreement in good faith as a result of arms-length
                                         negotiations with Seller. Buyer is not entering into this Agreement or any transaction
                                         contemplated hereunder with the intent to hinder, delay or defraud any Person to which
                                         it is, or may become, indebted. Buyer believes in good faith that it has or will have
                                         at the time required to perform the capacity and financial capability to comply with
                                         and perform all of the covenants and obligations under this Agreement.

 

	6.6	Brokers.
                                         Buyer has not retained any broker in connection with the transactions contemplated hereunder.
                                         Seller will have no obligation to pay fees of any brokers, finders, investment bankers,
                                         or financial advisors engaged by Buyer in connection with this Agreement or the transactions
                                         contemplated hereby.

 

	6.7	Diligence
                                         Investigation. Buyer has conducted its own independent investigation, review and
                                         analysis in connection with this Agreement and the transactions contemplated hereby,
                                         including regarding the Purchased Assets, the Assumed Contracts and the Product and the
                                         manufacture and Development thereof. Such investigation shall in no way limit any claims
                                         by Buyer resulting from any breach by Seller of any of its representations, warranties
                                         and covenants contained herein, including, without limitation, claims arising from or
                                         fraud or intentional misconduct.

 

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	6.8	Buyer
                                         Stock. The authorized capital stock of Buyer consists of (i) 50,000,000 shares of
                                         common stock, par value $0.0001 per share (“Buyer Common Stock”),
                                         10,000,000 of which are issued and outstanding and (ii) 25,000,000 shares of preferred
                                         stock, $0.0001 par value, of which 13,000,000 shares have been designated as Series A
                                         Preferred Stock (“Buyer Series A Preferred Stock”), of which 11,381,999
                                         shares of Buyer Series A Preferred Stock are issued and outstanding. Buyer has reserved
                                         3,869,424 shares of Buyer Common Stock for issuance to officers, directors, employees
                                         and consultants of Buyer pursuant to its 2017 Equity Incentive Plan duly adopted by the
                                         board of directors of Buyer and approved by the stockholders of Buyer, of which 2,656,435
                                         have been issued to employees and consultants of the Buyer. Buyer has reserved 558,740
                                         shares of Buyer Series A Preferred Stock for issuance pursuant to that certain Warrant,
                                         dated as of April 25, 2017, in favor of MDB Capital Group, LLC. There are no bonds, debentures,
                                         notes or other indebtedness having general voting rights (or convertible into securities
                                         having such rights) (“Voting Debt”) of Buyer issued and outstanding.
                                         Except as set forth above, there are no options, warrants, calls, subscriptions or other
                                         rights, agreements, arrangements or commitments of any kind relating to the issued or
                                         unissued capital stock of Buyer, obligating Buyer to issue, transfer or sell or cause
                                         to be issued, transferred or sold any shares of capital stock or Voting Debt of, or other
                                         equity interest in, Buyer or securities convertible into or exchangeable for such shares
                                         or equity interests, or obligating Buyer to grant, extend or enter into any such option,
                                         warrant, call, subscription or other right, agreement, arrangement or commitment.

 

	6.9	No
                                         Other Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS OR WARRANTIES
                                         EXPRESSLY SET FORTH IN THIS ARTICLE 6 OF THIS AGREEMENT OR IN ANY OTHER TRANSACTION DOCUMENTS,
                                         BUYER DISCLAIMS ALL OTHER REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS OR IMPLIED,
                                         ORAL OR WRITTEN, RELATED TO THIS AGREEMENT.

 

7.
COVENANTS OF THE PARTIES

 

7.1
Cooperation.

 

	 	(i)	Each
    Party shall cooperate fully with the other, as promptly as is reasonably practicable, in preparing and filing all notices,
    applications, submissions, reports and other instruments and documents that are necessary, proper or advisable under Applicable
    Law or required under Program Contracts or by Third Parties to consummate and make effective the transactions contemplated
    by this Agreement and obtaining any consent or approval of any Governmental Authority or other Third Party whose consent may
    be required to consummate and make effective the transactions contemplated by this Agreement, including the Consents and Waivers
    (the “Required Consents”). 
	 	 	 
	 	(ii)	Seller
    shall have no obligation to make any payments or provide other consideration to Buyer or any Third Party other than any amounts
    that are due and payable by Seller as of the Closing, if any, or are otherwise required by the terms of this Agreement or
    the other Transaction Documents. Seller’s obligation to transfer or assign any Assumed Contract shall be contingent
    upon Seller’s receipt of such Required Consent. Pending receipt of any Required Consent with respect to an Assumed Contract,
    the Parties shall use their commercially reasonable efforts to implement an alternative arrangement to permit Buyer to receive
    substantially similar rights and for Buyer to assume substantially similar obligations under such Assumed Contract as if such
    impediment to assignment or transfer did not exist; provided, however, that commercially reasonable efforts shall not include
    payment to Seller or Buyer, as applicable, or any Third Party other than payment of amounts due and payable by Seller and
    or Buyer, as applicable, as of the Closing. 

 

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	7.2	Further
    Assurances. Seller shall from time to time, at the reasonable request of Buyer and at Buyer’s expense, (i) provide
    such further information in Seller’s possession, (ii) execute and deliver, or cause to be executed and delivered, such
    other instruments of conveyance and transfer, certificates, deeds or other documents, and (iii) take, or cause to be taken,
    all other actions and do, or cause to be done, such other acts and things, all as promptly as practicable as Buyer may reasonably
    request in order to more effectively consummate the transactions contemplated by this Agreement and to vest in Buyer good
    and marketable title to the Purchased Assets.
	 	 
	7.3	Confidentiality.
    Each Receiving Party shall maintain the confidentiality of any Confidential Information received from a Disclosing Party,
    and shall not disclose such information to any Third Party without the prior written consent of such Disclosing Party, except
    as otherwise provided in this Agreement (it being understood that any Confidential Information included in the Purchased Assets
    shall become Confidential Information of Buyer following Closing). As used herein, Confidential Information shall be deemed
    to include (i) all information that either Party provides in connection with this Agreement or the transactions contemplated
    hereby (including, without limitation, any claim or dispute arising out of or related to this Agreement or the transactions
    contemplated hereby, or the interpretation, making, performance, breach or termination thereof) identified to the other in
    writing as confidential or the nature of which or the circumstances of the disclosure of which would reasonably indicate that
    such information is confidential, this Agreement and all information concerning this Agreement (which shall be deemed the
    Confidential Information of both Parties); and (ii) the Purchased Assets that are not generally available to the public and
    including, without limitation, any information provided or made available following the Closing pursuant to this Agreement
    (including, without limitation, any information related to Net Sales any and all books and records, work papers, documents,
    schedules or other materials or information).
	 	 
	7.4	Legally
    Compelled Disclosure. In the event that a Receiving Party is required by Applicable Laws to disclose any Confidential
    Information of its Disclosing Party to any Governmental Authority in order to obtain regulatory approval for the Product,
    in connection with a bona fide legal process (including in connection with any bona fide disputes hereunder) or under the
    rules of the securities exchange upon which its securities are traded, the confidentiality requirements under Section 7.3
    shall not apply, solely with respect to the Confidential Information required to be disclosed by Applicable Law, and so long
    as such Receiving Party (i) limits disclosure to such information required by Applicable Law while maintaining the confidentiality
    of all other Confidential Information of its Disclosing Party, and (ii) promptly gives such Disclosing Party advance notice
    of such disclosure and an opportunity to seek a protective order or confidential treatment. In the event of disclosure required
    by Applicable Laws under this Section 7.4, the Receiving Party shall cooperate in any such limitation on disclosure efforts
    at the Disclosing Party’s reasonable request and expense.
	 	 
	7.5	Press
    Releases and Other Permitted Disclosures.

 

	 	(i)
    	Attached
    as Exhibit 11, is a copy of the press release to be issued by the Buyer on the Closing Date. Except as set forth in the previous
    sentence or otherwise in this Section 7.5, no press release, public statement or disclosure concerning the existence or terms
    of this Agreement shall be made, either directly or indirectly, by either Party, without first obtaining the written approval
    of the other Party, which such approval shall not be unreasonably withheld or delayed; provided that Seller may disclose
    the receipt of any milestone payment amount under this Agreement. Once any public statement or disclosure has been approved
    in accordance with this Section 7.5, then either Party may appropriately communicate information contained in such permitted
    statement or disclosure. 

 

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	 	(ii)	Each
    Party may disclose the existence and terms of this Agreement in confidence: (a) (1) to its attorneys, professional accountants,
    and auditors, and (2) bankers or other financial advisors in connection with an initial public offering, private financing
    or other strategic transaction, or corporate valuation for internal purposes; provided that any such disclosure to
    such professional accountants, auditors, bankers or other financial advisors is under an agreement to keep the terms of confidentiality
    and non-use no less rigorous than the terms contained in this Agreement and to use such information solely for the applicable
    purpose permitted pursuant to this Section 7.4(ii)(a); (b) to potential acquirers (and their respective attorneys and professional
    advisors), in connection with a potential merger, acquisition or reorganization; provided that such disclosure is under
    an agreement according to terms of confidentiality and non-use that are no less rigorous than the terms contained in this
    Agreement and require the use of such information solely for the purpose permitted pursuant to this Section 7.5(ii)(b); (c)
    to existing or potential investors, lenders or permitted assignees of such Party (and their respective attorneys and professional
    advisors); provided that such disclosure is under an agreement according to terms of confidentiality and non-use that
    are no less rigorous than the terms contained in this Agreement; and (d) to current and potential licensees or sublicensees
    or potential acquirors of such Party or of the Product (and their respective attorneys and professional advisors).
	 	 	 
	 	(iii)	Notwithstanding
    the foregoing provisions of this Article 7, a Party may disclose the existence and terms of this Agreement or a Party’s
    or the Parties’ activities under this Agreement where required, as reasonably determined by the legal counsel of the
    disclosing Party, by Applicable Law, by applicable stock exchange regulation, as required in connection with filings under
    applicable securities laws or by order or other ruling of a competent court, although, to the extent practicable, the other
    Party shall be given prompt notice of any such legally required disclosure to comment and reasonably consider such comments
    provided by such Party on the proposed disclosure.
	 	 	 
	 	(iv)	Nothing
    in this Section 7.5 shall be deemed to restrict Buyer from providing public updates on the Product or its Development, manufacturing
    or Commercialization as deemed necessary or advisable by the Buyer in its sole discretion; provided that Buyer does not use
    the name of Seller or its Affiliates (except to the extent referred to as the manufacturer of Product or licensor of certain
    Product-related rights, as may be necessary under applicable law or the Assumed Contracts) in any such public updates and
    does not otherwise disclose any Confidential Information of Seller.

 

	7.6	Commercialization
    of Products. As of the Closing Date, Buyer shall be solely and exclusively responsible for the manufacture, Development
    and Commercialization of the Products, including all decisions pertaining to such manufacture, Development or Commercialization,
    including any recall of Products.

 

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	7.7	Regulatory
    Matters. A copy of each Transfer Letter authorizing the transfer of ownership of the INDs and CTAs as well as the orphan
    drug designation owned by Seller to Buyer shall be delivered on the Closing Date and within ten (10) Business Days after the
    Closing Date, (a) Seller shall submit the Transfer Letters to the relevant Governmental Authorities and shall notify Buyer
    of such submission on the date submitted (providing Buyer an electronic copy of the submission with such notification) and
    (b) shall provide to Buyer the full regulatory file for the INDs and CTAs held by the Seller, including all available electronic
    meta data. Upon notification of the Seller’s submission of the Transfer Letter to the relevant Governmental Authorities,
    Buyer shall execute and submit to the relevant Governmental Authorities letters acknowledging Buyer’s commitment to
    assume ownership of the INDs and CTAs and the orphan drug designation owned by Seller. As of the Closing Date, except as otherwise
    set forth in this Section 7.7, Buyer shall be solely responsible for taking any actions necessary to (i) obtain any documentation
    required to maintain the INDs and CTAs or the orphaned drug designation owned by Seller or obtain any further authorizations
    under any Applicable Law, and (ii) otherwise comply with any Applicable Law with respect to regulatory authorizations. During
    the period between the Closing Date and the date that is that is eighteen (18) months from the Closing Date, Seller shall
    provide reasonable assistance as requested by Buyer in connection with Buyer’s fulfilment of its obligations under this
    Section 7.7. Except as set forth in any further written agreement between the Parties, as of the Closing Date, Buyer shall
    be solely responsible for investigating and reporting adverse experiences for the Product to any Governmental Authorities
    and addressing any such Governmental Authorities’ inquiries related to the safety of the Product; provided, however,
    that Seller shall provide reasonable assistance and cooperation to Buyer to the extent any such investigations or inquiries
    related to the manufacture or development of the Product prior to the Closing Date by or on behalf of Seller. Except as set
    forth in any further written agreement between the Parties, as of the Closing Date, Buyer shall be solely responsible for
    addressing any Person’s medical inquiries or complaints relating to the Product; provided, however, that Seller shall
    provide reasonable assistance and cooperation to Buyer to the extent any such inquiries or complaints related to the manufacture
    or Development of the Product prior to the Closing Date by or on behalf of Seller.
	 	 
	7.8	Development
    and Commercialization of Products after Closing. Following the Closing Date Buyer agrees to (i) use Reasonable Commercial
    Efforts to commence a [****] in accordance with the Development Plan; and (ii) use Reasonable Commercial Efforts to manufacture,
    Develop and Commercialize at least one Product in the United States and Europe. Buyer shall provide to Seller, semi-annually,
    written reports on its completed and planned Development and Commercialization activities with respect to each Product. Each
    such report shall include an update regarding Development activities conducted by or on behalf of Buyer (including activities
    conducted under the Development Plan) and progress towards achieving the Development and Regulatory Milestones.

 

8.
MANUFACTURING

 

	8.1	Manufacturing
    and Quality Agreements. As part of the Technology Transition Plan described in Section 2.7, during the Transition Period,
    Buyer and Seller shall negotiate in good faith manufacturing transfer and quality agreements for the Product that will include
    provisions regarding the transfer of: (i) existing clinical material; (ii) all cGMP and non-cGMP bulk drug substance or partially
    finished drug Product, including API, along with the corresponding cell lines and any specialized and dedicated equipment
    (e.g., proprietary media, dedicated purification columns/filters, etc.) required for the production of Teplizumab; and (iii)
    the CMC and quality support and documentation necessary to label, package, release and ship the existing inventory of cGMP
    finished drug product vials to clinical trial sites and/or a corresponding storage and distribution subcontractor. After the
    Transition Period, Seller shall continue to provide support on the manufacturing transfer described in this Section 8.1 in
    accordance with the Technology Transition Plan and in accordance with the terms of Section 2.7 for a period of eighteen (18)
    months from the Effective Date. Costs incurred by Seller in connection with this Section 8.1 shall be subject to the cost
    allocation and reimbursement provisions of Section 2.7. 

 

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 9 INDEMNIFICATION

 

	9.1	Survival
                                         of Representations, and Warranties.

 

	 	(i)	The
    Fundamental Representations shall survive the Closing Date indefinitely and shall bind the successors and assigns of the relevant
    Party, whether so expressed or not, and all such representations and warranties shall inure to the benefit of the successors
    and assigns of the Parties hereto, whether expressed or not. The “Fundamental Representations” are Sections
    5.1 (Corporate Organization), 5.3 (Authority of Seller); 5.4 (Non-Contravention); 5.5 (Title; Encumbrances); 5.14 (Eli Lilly
    Agreement; Third Party Obligations); 6.2 (Corporate Organization); 6.3 (Authority of Buyer); 6.4 (Non-Contravention) and 6.8
    (Buyer Stock).
	 	 	 
	 	(ii)	The
    Core Representations shall survive the Closing Date for a period of five (5) years, and during such period shall bind the
    successors and assigns of the relevant Party, whether so expressed or not, and all such representations and warranties shall
    inure to the benefit of the successors and assigns of the Parties hereto, whether expressed or not. The “Core Representations”
    are Sections 5.7 (Intellectual Property); 5.10 (Regulatory Compliance); and 5.15 (Clinical Trials).
	 	 	 
	 	(iii)	Except
    as set forth in subsections (i) and (ii) of this Section 9.1, the representations and warranties of Seller or Buyer contained
    in Articles 5 and 6 or documents executed in connection herewith shall survive the Closing Date for a period of eighteen (18)
    months (the “Survival Period”) and during the Survival Period shall bind the successors and assigns of
    the relevant Party, whether so expressed or not, and all such representations and warranties shall inure to the benefit of
    the successors and assigns of the Parties hereto, whether expressed or not. 
	 	 	 
	 	(iv)	Any
    claim whether for indemnification or otherwise based upon a breach of any such representation or warranty and asserted prior
    to the termination of the Survival Period by written notice in accordance with Section 9.2 shall survive until final resolution
    of such claim.

 

	9.2	Indemnification
    by Seller. From and after the Closing Date, Seller shall indemnify, defend and hold harmless Buyer, its Affiliates and
    their respective officers, directors, employees, agents, successors and assigns from and against any and all Damages incurred
    in connection with any claim, action, suit, litigation, proceeding, arbitration or investigation (whether civil, criminal,
    administrative, investigative, appellate or informal) by a Third Party, including a Governmental Authority (“Third
    Party Claims”) arising out of or relating to (i) any breach of any covenant, representation or warranty of Seller
    in this Agreement, (ii) any Retained Liability or (iii) Seller’s fraud, gross negligence or willful misconduct.
	 	 
	9.3	Indemnification
    by Buyer. From and after the Closing Date, Buyer shall indemnify, defend and hold harmless Seller, its Affiliates, and
    their respective officers, directors, employees, agents, successors and assigns from and against any and all Damages incurred
    in connection with any Third Party Claims arising out of or relating to: (i) any breach of any covenant, representation or
    warranty of Buyer in this Agreement, (ii) any Assumed Liability or (iii) Buyer’s fraud, gross negligence or willful
    misconduct.

 

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	9.4	Procedure.
    A Person intending to claim indemnification under this Article 9 (the “Indemnitee”) shall promptly provide
    written notice to the Party providing indemnification (the “Indemnitor”) of any Third Party Claim with
    respect to which the Indemnitee intends to claim such indemnification, which notice shall include a description of the Third
    Party Claim, the amount thereof (if known and quantifiable) and the basis for the Third Party Claim; provided that failure
    of the Indemnitee to give the Indemnitor notice as set forth herein shall not relieve the Indemnitor of its obligations hereunder,
    except to the extent that the Indemnitor is prejudiced thereby. The Indemnitor shall have the right, in its sole discretion
    and at its election by written notice to the Indemnitee within fifteen (15) days after delivering notice of the Third Party
    Claim to the Indemnitee, to conduct the defense against such Third Party Claim in its own name, provided that the Indemnitor
    (i) shall keep the Indemnitee reasonably informed regarding the status of such Third Party Claim, (ii) shall provide the Indemnitee
    the reasonable opportunity to consult with the Indemnitor regarding the defense of such claim, and (iii) may not settle or
    compromise any such Third Party Claim without the prior written consent of the Indemnitee (which consent shall not be unreasonably
    withheld, conditioned or delayed) unless (A) such settlement or compromise involves no finding or admission of any breach
    by any Indemnitee of any obligation to any other Person or any violation by any Indemnitee of any Applicable Law, and (B)
    the sole relief provided in connection with such settlement or compromise is monetary damages that are paid in full by the
    Indemnitor. If the Indemnitee fails to timely give notice of such election to conduct the defense, it will be deemed to have
    elected not to conduct the defense of the subject Third Party Claim, and in such event the Indemnitor shall have the right,
    at its own cost and expense, to conduct the defense in good faith with counsel reasonably satisfactory to the Indemnitee;
    provided that the Indemnitor (x) shall keep the Indemnitee reasonably informed regarding the status of such Third Party Claim,
    (y) shall provide the Indemnitee the reasonable opportunity to consult with the Indemnitor regarding the defense of such claim
    and (z) may not settle or compromise any such Third Party Claim without the prior written consent of the Indemnitee (which
    consent shall not be unreasonably withheld, conditioned or delayed). The Indemnitee, its employees and agents, shall cooperate
    fully with the Indemnitor and its legal representative(s) in the investigation and defense of any Third Party Claim covered
    by this Section 9.4. 
	 	 
	9.5	Limitation
    of Damages. The indemnification obligations of a Party under Section 9.2 or Section 9.3 and the liability of a Party for
    all damages whatsoever arising out of or related to this Agreement and the instruments and agreements contemplated hereby
    and the transactions contemplated hereby and thereby shall be limited as follows:

 

	 	(i)	Insurance.
    A Party shall not be liable to the extent an Indemnitee or the other Party receives payment from any insurer or other
    Third Party, but only with respect to amounts actually received from such insurer or other Third Party. The Indemnitor shall
    remain liable for the balance of any Damages unpaid to the Indemnitee or the other Party.
	 	 	 
	 	(ii)	Negligence,
    Illegal Act or Willful Misconduct. A Party shall not be liable to the extent that the other Party, its Affiliates or any
    of their respective officers, directors, employees, agents, successors and assigns caused, by the illegal conduct, gross negligence
    or willful misconduct, the Damages.

 

	9.6	Insurance.
    Buyer and Seller shall each maintain a commercial general liability insurance policy or policies to protect against potential
    liabilities and risk arising out of this Agreement and are as are appropriate to cover the Parties’ respective indemnification
    obligations hereunder. Upon request, each Party shall provide certificates of insurance to the other evidencing the coverage
    specifies herein. Neither Party’s liability to the other is in any way limited to the extent of its insurance coverage.
    
	 	 
	9.7	Limitations
    on Indemnification. Notwithstanding anything to the contrary herein, (i) Seller shall not have any liability under Section
    9.2 for any individual item (or series of related items) where the Damages relating thereto until the aggregate damages related
    thereto meet or exceed [****] United States dollars ($[****]) provided that once the Damages equal or exceed [****] United
    States dollars ($[****]), the Seller shall be liable for all Damages from the first dollar and (ii) Seller’s aggregate
    liability under Section 9.2(i) (other than for breaches of Fundamental Representations or Core Representations, or for claims
    related to fraud, gross negligence or willful misconduct) shall in no event exceed, on a cumulative basis, [****] percent
    ([****]%) of the Aggregate Consideration (as determined from time to time). Notwithstanding anything to the contrary herein,
    (a) Buyer shall not have any liability under Section 9.3 for any individual item (or series of related items) where the Damages
    relating thereto until the aggregate damages related thereto meet or exceed [****] United States dollars ($[****]) provided
    that once the Damages equal or exceed [****] United States dollars ($[****]), the Buyer shall be liable for all Damages from
    the first dollar and (b) Buyer’s aggregate liability under Section 9.3(i) (other than for breaches of Fundamental Representations
    or Core Representations, or for claims related to fraud, gross negligence or willful misconduct) shall in no event exceed,
    on a cumulative basis, [****] percent ([****]%) of the Aggregate Consideration (as determined from time to time). For purposes
    of this Section 9.7, “Aggregate Consideration” means, as determined from time to time, the sum of each
    of the following amounts: (A) the [****], (B) the [****]; (C) [****] paid to Seller in accordance with Section [****]; (D)
    the [****]; (E) [****] paid to Seller in accordance with Section [****]; (F) the aggregate amount of [****], including consideration
    due to [****] in connection with the consummation of the transactions contemplated under this Agreement. Nothing in this Section
    9.7 is intended to, nor shall it, limit Seller’s liability under Sections 9.2(ii) or 9.2(iii) or Buyer’s liability
    under Section 9.3(ii) or 9.3(iii).

 

    	37

    	 

    

 

	9.8	Cap
    on Damages. Except for claims involving fraud, gross negligence or willful misconduct and for Seller’s indemnification
    obligations pursuant to Section 9.2 or Buyer’s indemnification obligations pursuant to Section 9.3, each Party’s
    aggregate liability under this Agreement (including negligence) shall not exceed the aggregate amounts actually paid (and,
    with respect to Buyer’s liability hereunder, payable) by Buyer to Seller pursuant to Sections 3.1 through 3.5. 
	 	 
	9.9	Set-Off.
    To the extent that any amount would have been payable to Buyer under Section 9.2 but for the “Aggregate Consideration”
    limitations set forth in Section 9.7, Buyer shall be entitled to set off such unpaid amount against the BLA Approval Milestone
    payment subject to the following conditions:

 

	 	(a)
    	the
    amount set off shall have been (i) agreed to by Seller or (ii) determined by an arbitrator, a court of competent jurisdiction
    or a Third Party mediator appointed by the Parties to make such determination; and
	 	 	 
	 	(b)	the
    amount set-off shall not exceed the cap on damages under Section 9.7 after calculating the “Aggregate Consideration”
    under Section 9.7 with the inclusion of the payment of the BLA Approval Milestone payment. 

 

10.
NOTICES

 

	10.1	Save
    as otherwise provided in this Agreement, any notice, demand or other communication (“Notice”) to be given
    by either Party under, or in connection with, this Agreement shall be in writing and signed by, on behalf of, the Party giving
    it. Any Notice shall be served by sending it by email to the address set out in Section 10.2, and/or delivering it by registered
    mail or courier to the address set out in Section 10.2 and in each case marked for the attention of the relevant Party set
    out in Section 10.2 (or as otherwise notified from time to time in accordance with the provisions of Section 10.3). Any Notice
    so served by email and/or registered mail or courier shall be deemed to have been duly given or made as follows:

 

	 	(i)	if
    sent by email, upon acknowledgment of receipt; or
	 	 	 
	 	(ii)	in
    the case of delivery by registered mail, within five (5) Business Days from the date of dispatch; or
	 	 	 
	 	(iii)
    	in
    the case of delivery by nationally recognized overnight courier service, within one (1) Business Day from date of dispatch,
    provided that in each case where delivery by registered mail or courier occurs after 6pm on a Business Day or on a day which
    is not a Business Day, service shall be deemed to occur at 9am on the next following Business Day. 

 

	10.2	The
    addressees of the Parties for the purpose of Section 10.1 are as follows:

 

    	38

    	 

    

 

	 	(i)	Buyer	 	 
	 	 	 	 	 
	 	 	Address:	 	Provention
    Bio, Inc.
	 	 	 	 	Email:
    apalmer@provention.com
	 	 	 	 	Attention:
    Ashleigh Palmer

 

With
a copy to counsel, provided that such copy shall not constitute notice to Buyer:

 

	 		 	Lowenstein
Sandler LLP
	 		 	1251
    Avenue of the Americas 
	 		 	17th
    Floor
	 		 	New
    York, NY 10020
	 		 	Email:
	 		 	mlerner@lowenstein.com;
    

    hweinstein@lowenstein.com
	 			Attention:
    Michael     Lerner;
	 	 	 	                    Herschel
    Weinstein

 

		(ii)	Seller	 	 
	 	 	 	 	 
	 	 	Address:	 	MacroGenics,
    Inc.
	 	 	 	 	9704
    Medical Centre Drive
	 	 	 	 	Rockville,
    MD 20850, 
	 	 	 	 	Email:
	 	 	 	 	Attention:
    CEO

 

	 		with
copies to:	 
	 	 	 	MacroGenics,
    Inc.
	 	 	 	9704
    Medical Center Drive
	 	 	 	Rockville,
    MD 20850
	 	 	 	Attention:
    General Counsel

 

	10.3	A
    Party may notify the other Party of a change to its name, relevant addressee, address or email address for the purposes of
    this Article 10, provided that such notice shall only be effective on:

 

	 	(i)	the
    date specified in the notification as the date on which the change is to take place; or
	 	 	 
	 	(ii)	if
    no date is specified or the date is less than five (5) Business Days after the date on which notice is given, the date following
    five (5) Business Days after notice of any change has been given.

 

	10.4	In
    providing service it shall be sufficient to prove that the envelope containing such Notice was properly addressed and delivered
    to the address shown thereon or that the facsimile transmission was made and a facsimile confirmation report was received,
    as the case may be.

 

11.
MISCELLANEOUS

 

	11.1	Entire
    Agreement. This Agreement, including all the Exhibits, sets forth the entire understanding of the Parties with respect
    to the subject matter hereof and cancels and supersedes all previous communications, representations or understandings, and
    agreements, whether oral or written, between the Parties relating to the subject matter hereof including the Prior Confidentiality
    Agreement. Information disclosed under the Prior Confidentiality Agreement shall be deemed to be Confidential Information
    disclosed under this Agreement and subject to the same obligations of confidentiality and use as other Confidential Information
    disclosed hereunder. 

 

    	39

    	 

    

 

	11.2	Amendment.
    No modification or amendment of any provision of this Agreement shall be valid or effective unless made in writing and signed
    by duly authorized officers of each Party.
	 	 
	11.3	Assignment.
    Neither Party may assign, transfer, charge or otherwise encumber this Agreement or any right, benefit or interest under it,
    nor transfer it without the prior written consent of the other Party provided that a Party may assign this Agreement to any
    Affiliate or to any successor in interest by way of merger, acquisition or sale of all or substantially all of its assets
    to which this Agreement relates, provided that such successor agrees in writing to be bound by the terms of this Agreement
    as if it were the assigning Party. Each Party agrees that, notwithstanding any provisions of this Agreement to the contrary,
    if this Agreement is assigned by a Party in connection with a merger, acquisition or sale of all or substantially all of its
    assets, such assignment shall not provide the non-assigning Party with rights or access to any intellectual property or technology
    of the acquirer of the assigning Party beyond that which is specifically contemplated in this Agreement. This Agreement shall
    be binding upon the successors and permitted assigns of the Parties. Any assignment not in accordance with this Section 11.3
    shall be void.
	 	 
	11.4	Governing
    Law. This Agreement shall be governed by and construed under the laws of the State of Delaware, without regard to conflict
    of law principles. The provisions of the United Nations Convention on Contracts for the International Sale of Goods the 1974
    Convention on the Limitation Period in the International Sale of Goods, as amended by that certain Protocol, done at Vienna
    on April 11, 1980 shall not apply to the Transaction Agreements or any subject matter hereof or thereof.
	 	 
	11.5	Severability.
    If any of the provisions of this Agreement are held to be void or unenforceable by a court of competent jurisdiction, then
    such void or unenforceable provisions shall be replaced by valid and enforceable provisions which will achieve as far as possible
    the economic business intentions of the Parties. However, the remainder of this Agreement will remain in full force and effect,
    provided that the material interests of the Parties are not affected i.e., the Parties would presumably have concluded this
    Agreement without the unenforceable provisions.
	 	 
	11.6	Waiver.
    A waiver of any default, breach or non-compliance under this Agreement is not effective unless signed by the Party granting
    such waiver. No waiver will be inferred from or implied by any failure to act or delay in acting by a Party in respect of
    any default, breach, non-observance or by anything done or omitted to be done by the other Party. The waiver by a Party of
    any default, breach or non-compliance under this Agreement will not operate as a waiver of that Party’s rights under
    this Agreement in respect of any continuing or subsequent default, breach or non-compliance.
	 	 
	11.7	Damages
    Limitation. EXCEPT WITH RESPECT TO THEIR RESPECTIVE INDEMNIFICATION OBLIGATIONS UNDER SECTIONS 9.2 AND 9.3 OF THIS AGREEMENT,
    IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY UNDER OR WITH RESPECT TO THIS AGREEMENT, OR ANY OTHER AGREEMENT
    OR INSTRUMENT CONTEMPLATED HEREBY, FOR ANY INDIRECT, INCIDENTAL, EXEMPLARY, SPECIAL, OR CONSEQUENTIAL DAMAGES, INCLUDING BUT
    NOT LIMITED TO LOSS OF PROFITS OR BUSINESS INTERRUPTION, OR PUNITIVE DAMAGES.

 

    	40

    	 

    

 

	11.8	Expenses.
    Except as otherwise provided in this Agreement, each Party hereto shall pay its own expenses and costs incidental to the preparation
    of this Agreement and to the consummation of the transactions contemplated hereby, including the fees for any business, legal
    or regulatory counsel. 
	 	 
	11.9	Relationship
    of the Parties. Neither Party shall be deemed an agent or representative of the other Party for any purpose, and this
    Agreement shall not create or establish an agency. Except as may be specifically provided herein, neither Party shall have
    any right, power, or authority, nor shall they represent themselves as having authority to assume, create or incur any expense,
    liability or obligation, express or implied, on behalf of the other Party, or otherwise act as an agent for the other Party
    for any purpose. This Agreement does not, is not intended to, and shall not be construed to, establish or create an employment,
    agency, partnership, joint venture or any other legal arrangement that would impose liability upon one Party for the act or
    failure to act of the other Party. 
	 	 
	11.10	No
    Third Party Beneficiaries. This Agreement is neither expressly nor impliedly made for the benefit of any entity other
    than the Parties, and neither any Third Party nor any Affiliate shall have any claim against either Party on the basis of
    this Agreement.
	 	 
	11.11	Language.
    This Agreement has been drafted in the English language, and the English language shall control its interpretation. Any translation
    shall be for convenience purposes only and shall not be legally binding.
	 	 
	11.12	Interpretation.
    The Parties agree that the terms and conditions of this Agreement are the result of negotiations between the Parties and that
    this Agreement shall not be construed in favour of or against either Party by reason of the extent to which such a Party participated
    in the drafting of this Agreement.
	 	 
	11.13	Descriptive
    Headings. The descriptive headings of this Agreement are for convenience only and shall be of no force or effect in construing
    or interpreting any of the provisions of this Agreement.
	 	 
	11.14	Counterparts.
    The Parties shall execute this Agreement in two (2) counterparts, either of which the Parties shall deem an original, but
    which together shall constitute one and the same instrument. Counterparts may be signed and delivered by facsimile or PDF
    file, each of which shall be binding when received by the applicable Party.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	41

    	 

    

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the
Closing Date.

 

	PROVENTION BIO, INC.:	MACROGENICS, INC.:
	 	 	 	 
	 	 /s/ Ashleigh Palmer 	 	 /s/ Scott Koenig 
	Name:	Ashleigh
    Palmer	Name:	Scott
    Koenig, M.D. Ph.D.
	Title:	President
    and Chief Executive Officer	Title:
    	President
    and Chief Executive Officer

 

    	42

    	 

    

 

 Exhibits:

 

	Exhibit
    1:	Teplizumab
	Exhibit
    2:	Product
    Patents; Program IP
	Exhibit
    3:	Assumed
    Contracts
	Exhibit
    4:	Development
    Plan
	Exhibit
    5:	Disclosure
    Schedules
	Exhibit
    6:	Bill
    of Sale and General Assignment Agreement
	Exhibit
    7:	Patent
    Assignment Agreement
	Exhibit
    8:	Transferred
    Materials. Transferrable Books and Records and INDs and CTAs 
	Exhibit
    9:	Form
    of Transfer Letter
	Exhibit
    10:	Form
    of Warrant
	Exhibit
    11:	Form
    of Press Release
	Exhibit
    12:	Form
    of Lock-Up Agreement

 

    	43

    	 

    

 

Exhibit
1

 

 Teplizumab

 

Teplizumab
(MGA031), a recombinant, humanized, FcR non-binding, anti-CD3 monoclonal antibody described in IND# [****]. Secretion Signal Sequence
double underlined in lowercase letters.

 

Amino
Acid Sequence:

 

Light
Chain

 

[****]

 

Heavy
Chain

 

[****]

 

    	44

    	 

    

 

Exhibit
2

 

Product
Patents

 

	Title	 	Country	 	Patent
    / Publication No.	 	Serial
    No.
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]

 

    	45

    	 

    

 

Exhibit
3

 

Assumed
Contracts

 

[****]

 

    	46

    	 

    

 

Exhibit
4

Development
Plan

 

Treatment
for patients with recent-onset T1D to preserve beta-cell function and insulin secretion

 

 [****]

 

    	47

    	 

    

 

Exhibit
5

 

Disclosure
Schedules

[****]

 

    	48

    	 

    

 

Exhibit
6

 

Bill
of Sale and General Assignment Agreement

 

BILL
OF SALE AND GENERAL ASSIGNMENT AGREEMENT

 

This
Bill of Sale and General Assignment Agreement (this “Agreement”) is made and entered into effective as of the ___
day of May, 2018 (the “Effective Date”) by and between PROVENTION BIO, INC., a Delaware corporation, having
its principal place of business at (hereinafter “Provention”) and MACROGENICS, INC., a Delaware corporation
having its principal place of business at 9704 Medical Center Drive, Rockville, MD 20850 (hereinafter “MacroGenics”).

 

WHEREAS,
MacroGenics and Provention are parties to that certain Asset Purchase Agreement, dated as of May ____, 2018 (the “Asset
Purchase Agreement”).

 

WHEREAS,
in connection with the consummation of the transactions contemplated by the Asset Purchase Agreement, (i) MacroGenics shall
sell, transfer, convey and assign to Provention all of MacroGenics’ right, title, and interest in and to the Purchased Assets,
and Provention shall purchase from MacroGenics all of MacroGenics’ right, title, and interest in and to the Purchased Assets,
and (ii) MacroGenics shall assign to Provention and Provention has agreed to assume all of the Assumed Liabilities, each to be
effective as of the Closing Date, subject to the terms and conditions of the Asset Purchase Agreement.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending
to be legally bound, MacroGenics and Provention (each a “Party” and collectively, the “Parties”) agree
as follows:

 

1.
Sale, Assignment, and Assumption. To be effective as of the Closing Date, and pursuant to the terms and subject to the
conditions of the Asset Purchase Agreement, MacroGenics (i) sells, transfers, conveys and assigns to Provention all of MacroGenics’
right, title, and interest in and to the Purchased Assets and (ii) assigns the Assumed Liabilities to Provention. Provention (x)
accepts such sale, transfer, conveyance and assignment of MacroGenics’ right, title, and interest in and to the Purchased
Assets, and (y) assumes and agrees to pay, perform and discharge as and when due, as applicable, all of the Assumed Liabilities.

 

2.
Terms of the Agreement. Nothing contained in this Agreement shall be deemed to modify, limit, expand, supersede, or amend
any rights or obligations of MacroGenics or Provention under the Asset Purchase Agreement. This Agreement is intended only to
effect the sale, assignment, transfer and conveyance of the Purchased Assets to Provention by MacroGenics and assumption of the
Assumed Liabilities by Provention, all in accordance with the terms and conditions of the Asset Purchase Agreement. To the extent
any conflict arises between any of the terms and provisions of this Agreement and any of the terms and provisions of the Asset
Purchase Agreement, the terms and provisions of the Asset Purchase Agreement shall govern and control.

 

    	49

    	 

    

 

3.
No Third Party Beneficiaries. Nothing herein expressed or implied is intended to confer upon any person, other than the
Parties and their respective successors and assigns, any rights, remedies, obligations, or liabilities.

 

4.
Entire Agreement. This Agreement, together with the Asset Purchase Agreement (and the schedules and exhibits thereto) and
the other documents executed in connection therewith, sets forth the entire agreement between the Parties with respect to the
subject matter hereof, and cancels or supersedes all previous communications, representations, understandings, agreements, and
arrangements between the Parties, written or oral, to the extent they relate in any way to the subject matter hereof.

 

5.
Severability. Any term or provision of this Agreement that is invalid or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable
the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions
of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, such provision
shall be interpreted to be only so broad as is enforceable.

 

6.
Governing Law. This Agreement shall be governed by and construed in accordance with the substantive law of the State of
Delaware without regard to conflict of law principles.

 

7.
Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original, but all of which
together shall constitute one and the same agreement. This Agreement, any and all agreements and instruments executed and delivered
in accordance herewith, along with any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile
machine or email delivery of a “.pdf” or similar format data file, shall be treated in all manner and respects and
for all purposes as an original signature, agreement or instrument and shall be considered to have the same binding legal effect
as if it were the original signed version thereof delivered in person. No Party hereto shall raise the use of a facsimile machine
or e-mail delivery of a “.pdf” or similar format data file to deliver a signature to this Agreement or any amendment
hereto or the fact that such signature was transmitted or communicated through the use of a facsimile machine or e-mail delivery
of a “.pdf” or similar format data file as a defense to the formation or enforceability of a contract and each Party
hereto forever waives any such defense.

 

9.
Amendment and Modification. This Agreement may be amended by the Parties at any time only by a written instrument signed
by each of the Parties.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	50

    	 

    

 

IN
WITNESS WHEREOF, each of the Parties is signing this Agreement as of the Effective Date.

 

	 	MACROGENICS:
	 	 
	 	MacroGenics,
    Inc.
	 	 	                
	 	By:
    	 
	 	Name:	 
	 	Title:
    	 
	 	 	 
	 	PROVENTION:
	 	 
	 	Provention
    Bio, Inc.
	 	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:
    	 

 

    	51

    	 

    

 

Exhibit
7

 

Patent
Assignment Agreement

 

PATENT
ASSIGNMENT AGREEMENT

 

This
Patent Assignment Agreement (this “Agreement”) is made and entered into effective as of the ____ day of May, 2018
(the “Effective Date”) by and between PROVENTION BIO, INC., a Delaware Corporation, having its principal place
of business at (hereinafter “Provention”) and MACROGENICS, INC., a Delaware corporation having its principal
place of business at 9704 Medical Center Drive, Rockville, MD 20850 (hereinafter “MacroGenics”).

 

WHEREAS,
MacroGenics and Provention are parties to that certain Asset Purchase Agreement, dated as of May ____, 2018 pursuant to which
MacroGenics shall transfer, convey, assign and deliver to Provention all of MacroGenics’ rights, title and interests in
all patent applications and issued patents that are identified on Schedule A attached hereto, or claim priority to any
patent application listed on Schedule A (collectively, the “Assigned Patents”).

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending
to be legally bound, MacroGenics and Provention (each a “Party” and collectively, the “Parties”) agree
as follows:

 

1.
Patent Assignment. MacroGenics hereby conveys, transfers, and assigns to Provention, its successors and assigns, MacroGenics’
entire right, title and interest for the United States, its territories and possession, and all foreign countries in and to the
Assigned Patents and all rights, claims and privileges pertaining thereto, including without limitation, all inventions and discoveries
disclosed therein, certificates of invention and applications for certificates of invention, and any substitutions, reissues,
reexaminations, divisions, renewals, extensions, provisionals, continuations, continuations-in-part, continued prosecution applications,
and corresponding foreign patents and patent applications and foreign counterparts thereof, and any and all rights to sue and
recover for claims and remedies against and collect damages and other recoveries for past, present and future infringements of
any or all of the foregoing, and rights for priority and protection of interests therein under the laws of any jurisdiction and
hereby grants to Provention the right to apply, obtain and hold in its own name for patents or inventor’s certificates and
related rights heretofore or hereafter filed in any and all countries, including, without limitation, the right to prosecute and
maintain the same and all rights to claim priority based thereon, all patents granted thereon and all reissues, extensions and
renewals thereof.

 

2.
Authorization. MacroGenics authorizes and requests the Commissioner of Patents and Trademarks of the United States, and
any other official throughout the world whose duty is to register and record ownership in patent registrations and applications
for registration of patents, to record Provention as the assignee and owner of any and all right in the Assigned Patents.

 

    	52

    	 

    

 

3.
Miscellaneous. This Assignment will be binding upon and inure to the benefit of the Parties hereto and their respective
successors and permitted assigns, each of which such successors and permitted assigns will be deemed to be a Party hereto for
all purposes hereof. This Assignment and any of the terms contained herein may be amended or modified by MacroGenics and Provention
only in writing. This Assignment is executed by, and shall be binding upon, MacroGenics and Provention and their respective successors
and assigns, for the uses and purposes set forth and referred to above, effective immediately upon its delivery to Provention.
This Assignment shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to conflict
of law principles. This Agreement may be executed in multiple counterparts, each of which shall be an original, but all of which
together shall constitute one and the same agreement. This Agreement, any and all agreements and instruments executed and delivered
in accordance herewith, along with any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile
machine or email delivery of a “.pdf” or similar format data file, shall be treated in all manner and respects and
for all purposes as an original signature, agreement or instrument and shall be considered to have the same binding legal effect
as if it were the original signed version thereof delivered in person. No Party hereto shall raise the use of a facsimile machine
or email delivery of a “.pdf” or similar format data file to deliver a signature to this Agreement or any amendment
hereto or the fact that such signature was transmitted or communicated through the use of a facsimile machine or e-mail delivery
of a “.pdf” or similar format date file as a defense to the formation or enforceability of a contract and each Party
hereto forever waives any such defense.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	53

    	 

    

 

IN
WITNESS WHEREOF, each of the Parties is signing this Agreement as of the Effective Date.

 

	 	MACROGENICS:
	 	 
	 	MacroGenics,
    Inc.
	 	 	                    
	 	By:
    	 
	 	Name:	 
	 	Title:
    	 
	 	Date:
    	 

 

	STATE
    OF ______________	}	 
	 	}	ss:
	COUNTY
    OF __________	}	 

 

On
the ________ day of _____________ in the year 20____, before me, the undersigned, personally appeared ______________________________________,
personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed
to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed
the instrument.

 

	 	 
	 	Notary
    Public, State of _________________
	 	Printed
    Name:
	 	Commission
    #:

 

    	54

    	 

    

 

	 	PROVENTION:
	 	 
	 	Provention
    Bio, Inc.
	 	 	                  
	 	By:
    	 
	 	Name:	 
	 	Title:
    	 
	 	Date:
    	 

 

	STATE
    OF ______________	}	 
	 	}	ss:
	COUNTY
    OF __________	}	 

 

On
the ________ day of _____________ in the year 20____, before me, the undersigned, personally appeared ______________________________________,
personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed
to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed
the instrument.

 

	 	 
	 	Notary
    Public, State of _________________
	 	Printed
    Name:
	 	Commission
    #:

 

    	55

    	 

    

 

Schedule
A

 

	Title	 	Country	 	Patent
    / Publication No.	 	Serial
    No.
	[****]	 	[****]	 	[****]	 	[****]

 

    	56

    	 

    

 

Exhibit
8

 

Transferred
Documentation and Biological and Chemical Materials and Reagents

 

The
items on this list are anticipated to be transferred by the Seller as soon as practicable using Commercially Reasonable Efforts
during the Transition Period. Items that are not transferred during the Transition Period shall be transferred by the Seller during
the remainder of the eighteen (18) months after the Effective Date using Commercially Reasonable Efforts to the extent available
and feasible. Electronic documentation shall be transferred in formats to be mutually agreed upon by both Parties.

 

Documentation

 

[****]

 

    	57

    	 

    

 

Exhibit
9

 

Form
of Transfer Letter

 

[****]

 

ATTN:
           [****]

 

	RE:	Transfer
    of IND Ownership and Notification of New Regulatory Contact
	 	IND
    No. [****]        SEQ No.: XXXX
	 	Teplizumab
    (MGA031), Humanized Anti-Human CD3 Monoclonal Antibody

 

Dear
Dr. [****] :

 

Reference
is made to IND [****] and IND [****] for teplizumab, Humanized Anti-Human CD3 Monoclonal Antibody. IND [****] is active to evaluate
teplizumab in the treatment of people with recent-onset Type 1 Diabetes Mellitus (T1DM). IND [****] is active to evaluate teplizumab
in the prevention/delay of diagnosis of T1DM in people at risk for developing T1DM. A similar letter is being submitted to IND
[****].

 

As of <insert date> , Provention
Bio, <insert address> has acquired the worldwide development and commercialization rights to teplizumab from MacroGenics,
Inc., 9640 Medical Center Drive, Rockville, MD 20850 USA.

 

On
behalf of MacroGenics, I am authorizing the Food and Drug Administration to transfer ownership and responsibility for IND
[****] effective as of <insert date> to:

Provention
Bio

 <insert date> 

 

A
complete copy of the IND, including all correspondence from the Agency, has been provided to Provention Bio and upon their acceptance
of this IND, all future correspondence regarding this IND should be addressed to Provention Bio. The Regulatory contact for Provention
Bio is:

 <insert
 Provention Bio’s Regulatory Authorized Sponsor> 

 <insert
address, phone number and email address> 

 

Provention
Bio will submit a letter of acknowledgement and acceptance of the IND transfer and regulatory responsibilities under a separate
correspondence to the Division.

 

If
you have any questions regarding this submission, please do not hesitate to contact me at [****], or you may contact [****]. Please
contact [****] for electronic submission-related questions. Thank you.

 

Sincerely,

 

[See
appended electronic signature page.]

 

[****]

 

    	58

    	 

    

 

Exhibit
10

 

Form
of Warrant

 

Warrant
Number ____

 

THE
WARRANT REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THIS WARRANT
AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MAY NOT BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1)
SUCH TRANSACTION IS MADE PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FILED UNDER THE SECURITIES ACT AND THE APPLICABLE SECURITIES
LAWS OF ANY STATE OR OTHER JURISDICTION OR (2) THE COMPANY IS PROVIDED WITH AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY,
STATING THAT SUCH TRANSACTION IS IN COMPLIANCE WITH EXEMPTIONS FROM REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE
LAWS. NO TRANSFER OF ANY INTEREST IN THIS WARRANT OR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MAY BE EFFECTED WITHOUT FIRST
SURRENDERING THIS WARRANT OR SUCH SECURITIES, AS THE CASE MAY BE, TO THE COMPANY OR ITS TRANSFER AGENT, IF ANY.

 

Warrant
to Purchase

Shares
of

Common
Stock

As
Herein Described

 

May
__, 2018

 

WARRANT
TO PURCHASE COMMON STOCK OF

 

PROVENTION
BIO, INC.

 

This
is to certify that, for value received, MacroGenics, Inc., or a proper assignee (the “Holder”), is entitled to purchase
up to 2,162,389 shares (“Warrant Shares”) of common stock, $0.0001 par value per share (the “Common Stock”),
of Provention Bio, Inc., a Delaware corporation (the “Company”), subject to the provisions of this Warrant. This Warrant
shall be exercisable at Two Dollars and Fifty Cents ($2.50) per share (the “Exercise Price”). This Warrant also is
subject to the following terms and conditions:

 

1.
Exercise and Payment; Exchange.

 

(a)
This Warrant may be exercised in whole or in part at any time from and after the date hereof (the “Commencement Date”)
through the close of business on May __, 2025 (the “Expiration Date”), at which time this Warrant shall expire and
become void, but if such date is a day on which federal or state chartered banking institutions located in the State of New York
are authorized to close, then on the next succeeding day which shall not be such a day. Exercise (“Exercise”) shall
be by presentation and surrender to the Company, or at the office of any transfer agent designated by the Company (the “Transfer
Agent”), of (i) this Warrant, (ii) the attached exercise form properly executed, and (iii) a certified or official bank
check for the Exercise Price for the number of Warrant Shares specified in the exercise form. If this Warrant is exercised in
part only, the Company or the Transfer Agent shall, upon surrender of the Warrant, execute and deliver a new Warrant evidencing
the rights of the Holder to purchase the remaining number of Warrant Shares purchasable hereunder. Upon receipt by the Company
of this Warrant, the properly executed exercise form, and payment as aforesaid, the Holder shall be deemed to be the holder of
record of the Common Stock issuable upon such exercise, notwithstanding that the stock transfer books of the Company shall then
be closed or that certificates representing such Warrant Shares shall not then be actually delivered to the Holder. Under no circumstance
shall the Company be required to make any cash payments or net cash settlement to the Holder in lieu of delivery of the Warrant
Shares.

 

    	59

    	 

    

 

(b)
In lieu of exercising this Warrant for cash pursuant to Section 2(a), if the fair market value of one Warrant Share is greater
than the Exercise Price (at the date of calculation as set forth below), the Holder may elect to receive a number of Warrant Shares
equal to the value of this Warrant (or of any portion of this Warrant being canceled) by Exercise of this Warrant, in which event
the Company shall issue to the Holder that number of Warrant Shares computed using the following formula:

 

	X	=	Y
    (A – B)
	A

 

Where:

 

	 	X
    = The number of Warrant Shares to be issued to the Holder
	 	 	 
	 	 	Y
    = The number of Shares purchasable under this Warrant or, if only a portion of the Warrant is being exercised, the portion
    of the Warrant being canceled (at the date of such calculation)
	 	 	 
	 	 	A
    = The fair market value of one Warrant Share (at the date of such calculation)
	 	 	 
	 	 	B
    = The Exercise Price (as adjusted to the date of such calculation)

 

For
purposes of the calculation above, the fair market value of one Warrant Share shall be determined as set forth in Section 3(a)
– (c) below.

 

(b)
Conditions to Exercise or Exchange. The restrictions in Section 7 shall apply, to the extent applicable by their terms,
to any exercise or exchange of this Warrant permitted by this Section 1.

 

2.
Reservation of Shares. The Company shall, at all times until the expiration of this Warrant, reserve for issuance and delivery
upon exercise of this Warrant the number of Warrant Shares which shall be required for issuance and delivery upon exercise of
this Warrant. Upon issuance, all Warrant Shares will be validly issued and outstanding, fully paid and non-assessable, and free
from all taxes, liens and charges with respect to the issuance thereof.

 

    	60

    	 

    

 

3.
Fractional Interests. The Company shall not issue any fractional shares or scrip representing fractional shares upon the
exercise or exchange of this Warrant. With respect to any fraction of a share resulting from the exercise or exchange hereof,
the Company shall pay to the Holder an amount in cash equal to such fraction multiplied by the current fair market value per share
of Common Stock, determined as follows:

 

(a)
If the Common Stock is listed on a national securities exchange or admitted to unlisted trading privileges on such an exchange,
the current fair market value shall be the last reported sale price of the Common Stock on such exchange on the last business
day prior to the date of exercise of this Warrant or if no such sale is made on such day, the mean of the closing bid and asked
prices for such day on such exchange;

 

(b)
If the Common Stock is not so listed or admitted to unlisted trading privileges on a national securities exchange, the current
fair market value shall be the mean of the last bid and asked prices reported on the last business day prior to the date of the
exercise of this Warrant by the OTC Markets Group, Inc.; or

 

(c)
If the Common Stock is not so listed or admitted to unlisted trading privileges on a national securities exchange and bid and
asked prices are not so reported, the current fair market value shall be an amount, not less than book value, determined in such
reasonable manner as may be prescribed by the Company in good faith.

 

4.
No Rights as Shareholder. This Warrant shall not entitle the Holder to any rights as a shareholder of the Company, either
at law or in equity. The rights of the Holder are limited to those expressed in this Warrant and are not enforceable against the
Company except to the extent set forth herein.

 

5.
Adjustments in Number and Exercise Price of Warrant Shares.

 

5.1
The number of shares of Common Stock for which this Warrant may be exercised and the Exercise Price therefor shall be subject
to adjustment as follows:

 

(a)
If the Company is recapitalized through the subdivision or combination of its outstanding shares of Common Stock into a larger
or smaller number of shares, the number of Warrant Shares shall be increased or reduced, as of the record date for such recapitalization,
in the same proportion as the increase or decrease in the outstanding shares of Common Stock, and the Exercise Price shall be
adjusted so that the aggregate amount payable for the purchase of all of the Warrant Shares issuable hereunder immediately after
the record date for such recapitalization shall equal the aggregate amount so payable immediately before such record date.

 

(b)
If the Company declares a dividend on Common Stock payable in Common Stock or securities convertible into Common Stock, the number
of shares of Common Stock for which this Warrant may be exercised shall be increased as of the record date for determining which
holders of Common Stock shall be entitled to receive such dividend, in proportion to the increase in the number of outstanding
shares (and shares of Common Stock issuable upon conversion of all such securities convertible into Common Stock) of Common Stock
as a result of such dividend, and the Exercise Price shall be adjusted so that the aggregate amount payable for the purchase of
all the Warrant Shares issuable hereunder immediately after the record date for such dividend shall equal the aggregate amount
so payable immediately before such record date.

 

    	61

    	 

    

 

(c)
If the Company distributes to holders of its Common Stock, other than as part of its dissolution or liquidation or the winding
up of its affairs, any evidence of indebtedness or any of its assets (other than cash, Common Stock or securities convertible
into Common Stock), the Company shall give written notice to the Holder of any such distribution at least fifteen (15) days prior
to the proposed record date in order to permit the Holder to exercise this Warrant on or before the record date. There shall be
no adjustment in the number of shares of Common Stock for which this Warrant may be exercised, or in the Exercise Price, by virtue
of any such distribution.

 

(d)
If the Company offers rights or warrants to the holders of Common Stock which entitle them to subscribe to or purchase additional
Common Stock or securities convertible into Common Stock, the Company shall give written notice of any such proposed offering
to the Holder at least fifteen (15) days prior to the proposed record date in order to permit the Holder to exercise this Warrant
on or before such record date. There shall be no adjustment in the number of shares of Common Stock for which this Warrant may
be exercised, or in the Exercise Price, by virtue of any such distribution.

 

(e)
If the event, as a result of which an adjustment is made under paragraph (a) or (b) above, does not occur, then any adjustments
in the Exercise Price or number of shares issuable that were made in accordance with such paragraph (a) or (b) shall be adjusted
to the Exercise Price and number of shares as were in effect immediately prior to the record date for such event.

 

5.2
In the event of any reorganization or reclassification of the outstanding shares of Common Stock (other than a change in par value
or from no par value to par value, or from par value to no par value, or as a result of a subdivision or combination) or in the
event of any consolidation or merger of the Company with another entity after which the Company is not the surviving entity, at
any time prior to the expiration of this Warrant, upon subsequent exercise of this Warrant the Holder shall have the right to
receive the same kind and number of shares of common stock and other securities, cash or other property as would have been distributed
to the Holder upon such reorganization, reclassification, consolidation or merger had the Holder exercised this Warrant immediately
prior to such reorganization, reclassification, consolidation or merger, appropriately adjusted for any subsequent event described
in this Section 5. The Holder shall pay upon such exercise the Exercise Price that otherwise would have been payable pursuant
to the terms of this Warrant. If any such reorganization, reclassification, consolidation or merger results in a cash distribution
in excess of the then applicable Exercise Price, the Holder may, at the Holder’s option, exercise this Warrant without making
payment of the Exercise Price, and in such case the Company shall, upon distribution to the Holder, consider the Exercise Price
to have been paid in full, and in making settlement to the Holder, shall deduct an amount equal to the Exercise Price from the
amount payable to the Holder.

 

    	62

    	 

    

 

5.3
If the Company shall, at any time before the expiration of this Warrant, dissolve, liquidate or wind up its affairs, the Holder
shall have the right to receive upon exercise of this Warrant, in lieu of the shares of Common Stock of the Company that the Holder
otherwise would have been entitled to receive, the same kind and amount of assets as would have been issued, distributed or paid
to the Holder upon any such dissolution, liquidation or winding up with respect to such Common Stock receivable upon exercise
of this Warrant on the date for determining those entitled to receive any such distribution. If any such dissolution, liquidation
or winding up results in any cash distribution in excess of the Exercise Price provided by this Warrant, the Holder may, at the
Holder’s option, exercise this Warrant without making payment of the Exercise Price and, in such case, the Company shall,
upon distribution to the Holder, consider the Exercise Price to have been paid in full and, in making settlement to the Holder,
shall deduct an amount equal to the Exercise Price from the amount payable to the Holder.

 

6.
Notices to Holder. So long as this Warrant shall be outstanding (a) if the Company shall pay any dividends or make any
distribution upon the Common Stock otherwise than in cash or (b) if the Company shall offer generally to the holders of Common
Stock the right to subscribe to or purchase any shares of any class of Common Stock or securities convertible into Common Stock
or any similar rights or (c) if there shall be any capital reorganization of the Company in which the Company is not the surviving
entity, recapitalization of the capital stock of the Company, consolidation or merger of the Company with or into another corporation,
sale, lease or other transfer of all or substantially all of the property and assets of the Company, or voluntary or involuntary
dissolution, liquidation or winding up of the Company, then in such event, the Company shall cause to be mailed to the Holder,
at least thirty (30) days prior to the relevant date described below (or such shorter period as is reasonably possible if thirty
(30) days is not reasonably possible), a notice containing a description of the proposed action and stating the date or expected
date on which a record of the Company’s shareholders is to be taken for the purpose of any such dividend, distribution of
rights, or such reclassification, reorganization, consolidation, merger, conveyance, lease or transfer, dissolution, liquidation
or winding up is to take place and the date or expected date, if any is to be fixed, as of which the holders of Common Stock of
record shall be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such event.

 

7.
Transfer, Exercise, Exchange, Assignment or Loss of Warrant, Warrant Shares or Other Securities.

 

7.1
This Warrant may be transferred, exercised, exchanged or assigned (“transferred”), in whole or in part, subject to
the following restrictions. This Warrant and the Warrant Shares or any other securities (“Other Securities”) received
upon exercise of this Warrant shall be subject to restrictions on transferability until registered under the Securities Act of
1933, as amended (the “Securities Act”), unless an exemption from registration is available. Until this Warrant and
the Warrant Shares or Other Securities are so registered or exempt from registration, this Warrant and any certificate for Warrant
Shares or Other Securities issued or issuable upon exercise of this Warrant shall contain a legend on the face thereof, in form
and substance satisfactory to counsel for the Company, stating that this Warrant, the Warrant Shares or Other Securities may not
be sold, transferred or otherwise disposed of unless, in the opinion of counsel satisfactory to the Company, which may be counsel
to the Company, that this Warrant, the Warrant Shares or Other Securities may be transferred without such registration. This Warrant
and the Warrant Shares or Other Securities may also be subject to restrictions on transferability under applicable state securities
or blue sky laws.

 

    	63

    	 

    

 

7.2
Any transfer permitted hereunder shall be made by surrender of this Warrant to the Company or to the Transfer Agent at its offices
with a duly executed request to transfer the Warrant, which shall provide adequate information to effect such transfer and shall
be accompanied by funds sufficient to pay any transfer taxes applicable. The Company or Transfer Agent shall, without charge,
execute and deliver a new Warrant in the name of the transferee named in such transfer request, and this Warrant promptly shall
be cancelled.

 

7.3
Upon receipt by the Company of evidence satisfactory to it of loss, theft, destruction or mutilation of this Warrant and, in the
case of loss, theft or destruction, of reasonable satisfactory indemnification, or, in the case of mutilation, upon surrender
of this Warrant, the Company will execute and deliver, or instruct the Transfer Agent to execute and deliver, a new Warrant of
like tenor and date, any such lost, stolen or destroyed Warrant thereupon shall become void.

 

8.
Representations and Warranties of the Holder. The Holder hereby represents and warrants to the Company with respect to
the issuance of the Warrant as follows:

 

8.1
Legends. The Holder understands and acknowledges that the certificate(s) evidencing the securities issued by the Company
will be imprinted with a restrictive legend as referenced in Section 7.1 above.

 

8.2
Access to Data. The Holder has had an opportunity to discuss the Company’s business, management, and financial affairs
with the Company’s management and the opportunity to review the Company’s facilities and business plans. The Holder
has also had an opportunity to ask questions of officers of the Company, which questions were answered to its satisfaction.

 

8.3
Authorization. This Warrant and the agreements contemplated hereby, when executed and delivered by the Holder, will constitute
a valid and legally binding obligation of the Holder, enforceable in accordance with their respective terms.

 

8.4
Brokers or Finders. The Company has not incurred, and will not incur, directly or indirectly, as a result of any action
taken by such Holder, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in
connection with this Warrant or any transaction contemplated hereby.

 

9.
Notices. All notices, requests, demands or other communications hereunder shall be in writing and shall be deemed to have
been duly given, if delivered in person or mailed, certified, return-receipt requested, postage prepaid to the address previously
provided to the other party, or sent by fax or email (to the extent stated below). Either party hereto may from time to time,
by written notice to the other party, designate a different address. If any notice or other document is sent by certified or registered
mail, return receipt requested, postage prepaid, properly addressed as aforementioned, the same shall be deemed delivered seventy-two
(72) hours after mailing thereof. If any notice is sent by fax or email, it will be deemed to have been delivered on the date
the fax or email thereof is actually received, provided the original thereof is sent by certified mail, in the manner set forth
above, within twenty-four (24) hours after the fax or email is sent.

 

    	64

    	 

    

 

10.
Amendment. Any provision of this Warrant may be amended or the observance thereof may be waived (either generally or in
a particular instance and either retroactively or prospectively), only with the mutual written consent of the Company and the
Holder.

 

11.
Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of New York.

 

[Signature
page follows.]

 

    	65

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first
above indicated.

 

	 	PROVENTION
    BIO, INC.
	 	 	                
	 	By:
    	 
	 	Name:	 
	 	Title:
    	 

 

    	66

    	 

    

 

FORM
OF EXERCISE

 

To
be executed upon exercise of Warrant

(please print)

 

The
undersigned hereby irrevocably elects to exercise the right, represented by this Warrant Number _____certificate, to __________
shares of common stock, $0.0001 par value per share (“Common Stock”) of Provention Bio, Inc. (the “Company”)
and herewith [tenders payment for such shares of Common Stock to the order of the Company the amount of $[●] per share in
accordance with the terms hereof/elects to exercise this Warrant pursuant to Section 2(b) of the attached Warrant]. The undersigned
requests that a certificate for such shares of Common Stock be registered in the name of ___________________________ whose address
is __________________________________________. If said number of shares of Common Stock is less than all of the shares of Common
Stock purchasable hereunder, the undersigned requests that a new Warrant Certificate representing the remaining balance of the
shares of Common Stock be registered in the name of _______________________________, whose address is ________________________________________,
and that such Warrant Certificate be delivered to_______________, whose address is __________________________________.

 

Representations
of the undersigned.

 

	 	a)	The
    undersigned acknowledges that the undersigned has received, read and understood the Warrant and agrees to abide by and be
    bound by its terms and conditions.
	 	 	 
	 	b)	(i)
    The undersigned has such knowledge and experience in business and financial matters that the undersigned is capable of evaluating
    the Company and the proposed activities thereof, and the risks and merits of this prospective investment.

 

[  ] YES [  ] NO

 

(ii)
If “No”, the undersigned is represented by a “purchaser representative,” as that term is defined in the
Securities Act of 1933, as amended (the “Securities Act”) and Regulation D thereunder.

 

 [  ] YES [  ] NO

 

	 	c)	(i)
    The undersigned is an “accredited investor,” as that term is defined in the Securities Act and Rule 501 of Regulation
    D thereunder.

 

[  ]
YES [  ] NO 

 

(ii)
If “Yes,” the undersigned comes within the following category of that definition (check one and complete the blanks
as applicable):

 

	 	[  ]	1.
    The undersigned is a natural person whose present net worth (or whose joint net worth with his or her spouse), excluding the
    value of the undersigned’s primary residence, exceeds $1,000,000. For purposes of calculating the undersigned’s
    present net worth, the undersigned has included the following as liabilities: (i) any indebtedness that is secured by the
    undersigned’s primary residence in excess of the estimated fair market value of the undersigned’s primary residence
    at the time of the sale of the shares, and (ii) any incremental debt secured by the undersigned’s primary residence
    that was incurred in the 60 days before the sale of the shares, other than as a result of the acquisition of the undersigned’s
    primary residence.

 

    	67

    	 

    

 

	 	[  ]	2.
    The undersigned is a natural person who had individual income in excess of $200,000 in each of the last two years or joint
    income with the undersigned’s spouse in excess of $300,000 during such two years, and the undersigned reasonably expects
    to have the same income level in the current year.
	 	 	 
	 	[  ]	3.
    The undersigned is an officer or director of the Company.
	 	 	 
	 	[  ]	4.
    The undersigned is a corporation or partnership not formed for the specific purpose of acquiring the securities offered, with
    total assets in excess of $5,000,000.
	 	 	 
	 	[  ]	5.
    The undersigned is a trust with total assets in excess of $5,000,000 whose purchase is directed by a person with such knowledge
    and experience in financial and business matters that such person is capable of evaluating the merits and risks of the prospective
    investment.
	 	 	 
	 	[  ]	6.
    The undersigned is an entity, all of whose equity owners are accredited investors under paragraphs 1, 2, 3, 4 or 5, above.

 

	 	d)	The
    undersigned understands that the shares purchased hereunder have not been registered under the Securities Act, in reliance
    upon the exemption from the registration requirements under the Securities Act pursuant to Section 4(a)(2) of the Securities
    Act and Rule 506 of Regulation D thereunder; and, therefore, that the undersigned must bear the economic risk of the investment
    for an indefinite period of time since the securities cannot be sold, transferred or assigned to any person or entity without
    compliance with the provisions of the Securities Act.

 

	Submitted
    by:	 	Accepted
    by Provention Bio, Inc.:
	 	 	 	 	 
	By:	 	 	By:	 
	Date:	 	 	Date:	 
	SS/Tax
    ID:	 	 	Tax
    ID: 	 
	Telephone:	 	 	 	 
	Email:	 	 	 	 

 

(Signature
must conform in all respects to name of holder as specified on the face of the Warrant Certificate.)

 

    	68

    	 

    

 

Exhibit
11

 

Press
Release

 

    	69

    	 

    

 

Exhibit
12

 

Form
of Lock-Up Agreement

 

Provention
Bio, Inc.

Lock-Up
AGREEMENT

 

May
__, 2018

 

MDB
Capital Group, Inc.

2425
Cedar Springs Road

Dallas,
Texas 75201

 

Re:
Provention Bio, Inc. - Lock-Up Agreement

 

Ladies
and Gentlemen:

 

This
Lock-Up Agreement is being delivered to you in connection with the Warrants (the “Warrants”), each dated as
of May __, 2018 between Provention Bio, Inc., a Delaware Corporation, (the “Company”) and MacroGenics, Inc.,
a Delaware corporation (the “Subscriber”), in which Subscriber desires to acquire warrants exercisable into
an aggregate of 2,432,688 shares of Common Stock, par value $0.0001 per share (the “Common Stock”), of the
Company in consideration of the Company’s and Subscriber’s entry into an Asset Purchase Agreement and License Agreement,
each dated as of May __, 2018.

 

In
order to induce MDB Capital Group, LLC (“MDB”) to locate investors to participate in an initial public offering
by the Company, the undersigned agrees that, commencing on the earlier of (a) the date of the final prospectus relating
to the Company’s initial public offering of its Common Stock (the “IPO”) and (b) the listing of the Company’s
Common Stock on an exchange or any tier of The NASDAQ Stock Market or New York Stock Exchange and ending on the date that
is 12 months thereafter (the “Lock-Up Period”), the undersigned will not, and will cause all affiliates (as
defined in Rule 144 promulgated under the Securities Act of 1933 Act, as amended) of the undersigned not to, (i) lend; offer;
pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option,
right, or warrant to purchase; or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock, or securities
exercisable or convertible into shares of Common Stock, held as of the date hereof (the “Subscriber’s Shares”)
or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences
of ownership of the Subscriber’s Shares, whether any such transaction described in clause (i) or (ii) above is to be settled
by delivery of Common Stock or other securities, in cash, or otherwise.

 

The
foregoing restriction is expressly agreed to preclude the undersigned, and any affiliate of the undersigned from engaging in any
hedging or other transaction which is designed to or which reasonably could be expected to lead to or result in a sale or disposition
of the Subscriber’s Shares even if the Subscriber’s Shares would be disposed of by someone other than the undersigned.
Such prohibited hedging or other transactions would include, without limitation, any short sale or any purchase, sale or grant
of any right (including, without limitation, any put or call option) with respect to any of the Subscriber’s Shares or with
respect to any security that includes, relates to, or derives any significant part of its value from the Subscriber’s Shares.

 

    	70

    	 

    

 

Notwithstanding
the foregoing, the undersigned may transfer the Subscriber’s Shares, provided that in case of items (i) through (v) below,
any such transfer shall not involve a disposition for value, and provided further that any transferee shall agree to be bound
by the terms of this Lock-up Agreement:

 

(i)
bona fide gift or gifts or by will or intestate succession upon the death of the undersigned; or

 

(ii)
to any trust for the direct or indirect benefit of the undersigned or the immediate family of the undersigned; or

 

(iii)
if the undersigned is a trust, any distribution to a beneficiary of the trust or to the estate of a beneficiary of such trust
and such transfer is not for value; or

 

(iv)
as a distribution or transfer to stockholders, members, limited partners, or other securityholders of the undersigned or to regular
employees of the undersigned whether or not for value; or

 

(v)
to any corporation, partnership, limited liability company or other entity all of the beneficial ownership interests of which
are held by the undersigned or to the undersigned’s affiliates or to any investment fund or other entity controlled or managed
by or under common control with the undersigned.

 

For
purposes of this Lock-Up Agreement, “immediate family” shall mean any relationship by blood, marriage or adoption,
not more remote than first cousin.

 

Notwithstanding
anything contrary in this Lock-Up Agreement, (i) the undersigned may exercise warrants to
purchase shares of Common Stock, provided that the underlying shares of Common
Stock shall continue to be subject to the restrictions on transfer set forth in this letter agreement, (ii) the undersigned
can enter into a sales plan pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), provided that no sales, dispositions or other transfers of the Subscriber’s Shares may be made under such
plan during the Lock-Up Period and no public announcement or filing under the Exchange Act regarding the establishment of such
plan shall be required of or voluntarily made by or on behalf of the undersigned or the Company; (iii) nothing in this Lock-Up
Agreement shall prevent the transfer of securities of the Company pursuant to a bona fide third party tender offer, merger, consolidation
or other similar transaction made to all holders of Common Stock, provided that in the event that the tender offer, merger, consolidation
or other such transaction is not completed, the Subscriber’s Shares shall remain subject to the restrictions contained in
this Lock-Up Agreement, and (iv) nothing in this Lock-Up Agreement shall prevent the transfer of the Subscriber’s Shares
with the written consent of MDB and the agreement of the transferee that it will be subject to the restrictions contained herein.

 

In
order to enforce this covenant, the Company shall impose stop-transfer instructions preventing the Company’s transfer agent
(the “Transfer Agent”) from effecting any actions in violation of this Lock-Up Agreement. The undersigned agrees
and consents to the entry of stop transfer instructions with the Company’s Transfer Agent and registrar against the transfer
of the Undersigned’s Shares except in compliance with the foregoing restrictions. The Company is a third party beneficiary
of this provision.

 

    	71

    	 

    

 

The
undersigned acknowledges that the execution, delivery and performance of this Lock-Up Agreement is a material inducement to MDB
and the Company to complete the transactions contemplated by the Subscription Agreement and the Private Placement, and that MDB
and the Company shall each be entitled to specific performance of the undersigned’s obligations hereunder. The undersigned
hereby represents that the undersigned has the power and authority to execute, deliver and perform this Lock-Up Agreement, that
the undersigned has received adequate consideration therefor and that the undersigned will indirectly benefit from the closing
of the transactions contemplated by the Subscription Agreement entered into in connection with the Private Placement.

 

The
undersigned understands and agrees that this Lock-Up Agreement is irrevocable and shall be binding upon the undersigned’s
heirs, legal representatives, successors, and assigns.

 

At
the discretion of MDB some or all of the Subscriber’s Shares may be released from the restrictions of this Lock-Up Agreement,
and the Company will take the required action to permit the securities so released to be free of the restrictions of this Lock-Up
Agreement.

 

This
Lock-Up Agreement may be executed in two counterparts, each of which shall be deemed an original but both of which shall be considered
one and the same instrument.

 

This
Lock-Up Agreement will be governed by and construed in accordance with the laws of the State of Delaware, without giving effect
to any choice of law or conflicting provision or rule (whether of the State of Delaware or any other jurisdiction) that would
cause the laws of any jurisdiction other than the State of Delaware to be applied. In furtherance of the foregoing, the internal
laws of the State of Delaware will control the interpretation and construction of this Lock-Up Agreement, even if under such jurisdiction’s
choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.

 

[Remainder
of page intentionally left blank. Signature Page to Follow.]

 

    	72

    	 

    

 

	Very
    truly yours,	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	Exact
    Name of Shareholder
	 	 	 	 
	 	 	 	 
	 	 	 	Authorized
    Signature
	 	 	 	 
	 	 	 	 
	 	 	 	Title
	 	 	 	 
	Agreed
    to and Acknowledged:	 	 
	 	 	 
	MDB
    CAPITAL GROUP, LLC	 	 
	 	             	 	 
	By:	 	 	 
	Name:	 	 	 
	Title:	 	 	 

 

    	73Exhibit 10.1

 

Execution Version

 

Dated as of May 15, 2018

 

REGISTRATION RIGHTS AGREEMENT

 

by and among

 

ARBOR REALTY TRUST, INC.

 

and

 

SANDLER O’NEILL & PARTNERS, L.P.

 

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (this “Agreement”) is made and entered into as of May 15, 2018, by and among Arbor Realty Trust, Inc., a Maryland corporation (the “Company”), and Sandler O’Neill & Partners, L.P., as initial purchaser to the Purchase Agreement (as defined below) dated May 10, 2018 (the “Initial Purchaser”), who has agreed to purchase the Company’s 5.625% Senior Notes due 2023 (the “Initial Notes”) pursuant to the Purchase Agreement.

 

This Agreement is made pursuant to the Purchase Agreement, dated May 10, 2018 (the “Purchase Agreement”), among the Company, Arbor Realty Limited Partnership, a Delaware limited partnership, and the Initial Purchaser (i) for the benefit of the Initial Purchaser and (ii) for the benefit of the holders from time to time of the Initial Notes, including the Initial Purchaser. In order to induce the Initial Purchaser to purchase the Initial Notes, the Company has agreed to provide the registration rights set forth in this Agreement. The execution and delivery of this Agreement is a condition to the obligations of the Initial Purchaser as set forth in Section 6(k) of the Purchase Agreement.

 

The parties hereby agree as follows:

 

1.                                      Definitions.

 

As used in this Agreement, the following capitalized terms shall have the following meanings:

 

Broker-Dealer: Any broker or dealer registered under the Exchange Act.

 

Business Day: Any day other than a Saturday, Sunday or U.S. federal holiday or a day on which banking institutions or trust companies located in New York, New York are authorized or obligated to be closed.

 

Closing Date: The date of this Agreement.

 

Commission: The Securities and Exchange Commission.

 

Consummate: A registered Exchange Offer shall be deemed “Consummated” for purposes of this Agreement upon the occurrence of (i) the filing and effectiveness under the Securities Act of the Exchange Offer Registration Statement relating to the Exchange Notes to be issued in the Exchange Offer, (ii) the maintenance of such Exchange Offer Registration Statement as continuously effective and the keeping of the Exchange Offer open for a period not less than the minimum period required pursuant to Section 3(b) hereof, and (iii) the delivery by the Company to the Trustee under the Indenture of Exchange Notes in the same aggregate principal amount as the aggregate principal amount of Initial Notes that were tendered during such period by Holders thereof pursuant to the Exchange Offer.

 

Effectiveness Target Date: As defined in Section 5 hereof.

 

Exchange Act: The Securities Exchange Act of 1934, as amended.

 

 

Exchange Offer: The registration by the Company under the Securities Act of the Exchange Notes pursuant to a Registration Statement pursuant to which the Company offers the Holders of all outstanding Transfer Restricted Notes the opportunity to exchange all such outstanding Transfer Restricted Notes held by such Holders for Exchange Notes in an aggregate principal amount equal to the aggregate principal amount of the Transfer Restricted Notes tendered in such exchange offer by such Holders.

 

Exchange Offer Registration Statement: The Registration Statement relating to the Exchange Offer, including the related Prospectus.

 

Exchange Notes: The 5.625% Senior Notes due 2023 to be issued to Holders in exchange for Transfer Restricted Notes pursuant to this Agreement.

 

FINRA: Financial Industry Regulatory Authority, Inc.

 

Holders: As defined in Section 2(b) hereof.

 

Indemnified Holder: As defined in Section 8(a) hereof.

 

Indenture: The Indenture, dated as of March 13, 2018, by and between the Company and U.S. Bank National Association, as trustee (the “Trustee”), pursuant to which the Notes are to be issued, as such Indenture has been or is amended or supplemented from time to time in accordance with the terms thereof.

 

Initial Notes: As defined in the preamble hereto.

 

Initial Placement: The issuance and sale by the Company of the Initial Notes to the Initial Purchaser pursuant to the Purchase Agreement.

 

Initial Purchaser: As defined in the preamble hereto.

 

Interest Payment Date: As defined in the Indenture and the Notes.

 

Notes:  The Initial Notes and the Exchange Notes.

 

Person: An individual, partnership, corporation, trust or unincorporated organization, or a government or agency or political subdivision thereof.

 

Prospectus: The prospectus included in a Registration Statement, as amended or supplemented by any prospectus supplement and by all other amendments thereto, including post-effective amendments, and all material incorporated by reference into such prospectus.

 

Registration Default: As defined in Section 5 hereof.

 

Registration Statement: Any registration statement of the Company relating to (a) an offering of Exchange Notes pursuant to an Exchange Offer or (b) the registration for resale of Transfer Restricted Notes pursuant to the Shelf Registration Statement, which is filed pursuant to the provisions of this Agreement, in each case, including the Prospectus included therein, all amendments and supplements thereto (including post-effective amendments) and all exhibits and material incorporated by reference therein. For the avoidance of doubt, the term “Registration Statement”

 

 

includes an amendment to the Registration Statement on Form S-4 filed by the Company with the Commission on April 12, 2018.

 

Notes: The Initial Notes together with the Exchange Notes.

 

Securities Act: The Securities Act of 1933, as amended.

 

Shelf Filing Deadline: As defined in Section 4(a) hereof.

 

Shelf Registration: A registration effected pursuant to Section 4 hereof.

 

Shelf Registration Statement: As defined in Section 4(a) hereof.

 

Suspension Period: As defined in Section 6 hereof.

 

Transfer Restricted Notes: Each Initial Note, until the earliest to occur of (a) the date on which such Initial Note is exchanged in the Exchange Offer for an Exchange Note entitled to be resold to the public by the Holder thereof without complying with the prospectus delivery requirements of the Securities Act, (b) the date on which such Initial Note is sold to the public pursuant to Rule 144 (or any similar provision then in force) under the Securities Act, or is eligible to be resold pursuant to Rule 144 without regard to the public information requirements thereunder, (c) the date on which such Initial Note has been effectively registered under the Securities Act and disposed of in accordance with a Shelf Registration Statement, (d) the date on which such Initial Note is distributed to the public by a Broker-Dealer pursuant to the “Plan of Distribution” contemplated by the Exchange Offer Registration Statement (including delivery of the Prospectus contained therein) or (e) when such Initial Notes are no longer outstanding.

 

Trust Indenture Act: The Trust Indenture Act of 1939, as amended, which term, as used herein, includes the rules and regulations of the Commission promulgated thereunder.

 

Underwritten Registration or Underwritten Offering: A registration in which securities of the Company are sold to an underwriter for re-offering to the public.

 

2.                                      Notes Subject to this Agreement.

 

(a)                                 Transfer Restricted Notes. The securities entitled to the benefits of this Agreement are the Transfer Restricted Notes.

 

(b)                                 Holders of Transfer Restricted Notes. A Person is deemed to be a holder of Transfer Restricted Notes (each, a “Holder”) whenever such Person owns Transfer Restricted Notes.

 

3.                                      Registered Exchange Offer.

 

(a)                                 Unless the Exchange Offer shall not be permissible under applicable law or Commission policy (after the procedures set forth in Section 6(a) hereof have been complied with), the Company shall (i) use its commercially reasonable efforts to cause to be filed with the Commission no later than 30 days after the Closing Date (or if such 30th day is not a Business Day, the next succeeding Business Day), a Registration Statement under the Securities Act relating to the Exchange Notes and 

 

 

the Exchange Offer, (ii) use its commercially reasonable efforts to cause such Registration Statement  to become effective no later than 90 days after the Closing Date (or if such 90th day is not a Business Day, the next succeeding Business Day), (iii) in connection with the foregoing, use its commercially reasonable efforts to file (A) all pre-effective amendments to such Registration Statement as may be necessary in order to cause such Registration Statement to become effective, (B) if applicable, a post-effective amendment to such Registration Statement pursuant to Rule 430A under the Securities Act and (C) cause all necessary filings in connection with the registration and qualification of the Exchange Notes to be made under the state securities or blue sky laws of such jurisdictions as are necessary to permit Consummation of the Exchange Offer, and (iv) upon the effectiveness of such Registration Statement, promptly commence the Exchange Offer. The Exchange Offer Registration Statement shall be on the appropriate form permitting registration of the Exchange Notes to be offered in exchange for the Transfer Restricted Notes and to permit resales of Initial Notes held by Broker-Dealers as contemplated by Section 3(c) hereof.

 

(b)                                 The Company shall use commercially reasonable efforts to cause the Exchange Offer Registration Statement to be effective continuously and shall keep the Exchange Offer open for a period of not less than the minimum period required under applicable federal and state securities laws to Consummate the Exchange Offer; provided, however, that in no event shall such period be less than 20 Business Days after the date notice of the Exchange Offer is mailed (or otherwise delivered, including by transmission in compliance with the applicable procedures of the depositary for the Transfer Restricted Notes) to the Holders. The Company shall use its commercially reasonable efforts to cause the Exchange Offer to comply with all applicable federal and state securities laws. No securities other than the Exchange Notes shall be included in the Exchange Offer Registration Statement. The Company shall use its commercially reasonable efforts to cause the Exchange Offer to be Consummated as promptly as reasonably practicable after the Exchange Offer Registration Statement has become effective, but in no event later than 120 days after the Closing Date (or if such 120th day is not a Business Day, the next succeeding Business Day).

 

(c)                                  The Company shall indicate in a “Plan of Distribution” section contained in the Prospectus forming a part of the Exchange Offer Registration Statement that any Broker-Dealer who holds Initial Notes that are Transfer Restricted Notes and that were acquired for its own account as a result of market-making activities or other trading activities (other than Transfer Restricted Notes acquired directly from the Company), may exchange such Initial Notes pursuant to the Exchange Offer; however, such Broker-Dealer may be deemed to be an “underwriter” within the meaning of the Securities Act and must, therefore, deliver a prospectus meeting the requirements of the Securities Act in connection with any resales of the Exchange Notes received by such Broker-Dealer in the Exchange Offer, which prospectus delivery requirement may be satisfied by the delivery by such Broker-Dealer of the Prospectus contained in the Exchange Offer Registration Statement. Such “Plan of Distribution” section shall also contain all other information with respect to such resales by Broker-Dealers that the Commission may require in order to permit such resales pursuant thereto, but such “Plan of Distribution” shall not name 

 

 

any such Broker-Dealer or disclose the amount of Initial Notes held by any such Broker-Dealer except to the extent required by the Commission.

 

(d)                                 The Company shall use its commercially reasonable efforts to keep the Exchange Offer Registration Statement continuously effective, supplemented and amended as required by the provisions of Section 6(c) hereof to the extent necessary to ensure that it is available for resales of Initial Notes acquired by Broker-Dealers for their own accounts as a result of market-making activities or other trading activities, and to ensure that it conforms with the requirements of this Agreement, the Securities Act and the policies, rules and regulations of the Commission as announced from time to time, for a period ending on the earlier of (i) 180 days from the date on which the Exchange Offer Registration Statement is declared effective and (ii) the date on which a Broker-Dealer is no longer required to deliver a prospectus in connection with market-making or other trading activities with respect to the Notes or no longer owns any Transfer Restricted Notes.

 

(e)                                  The Company shall provide sufficient copies of the latest version of the Prospectus to Broker-Dealers promptly upon request at any time during such 180-day (or shorter as provided in the foregoing sentence) period in order to facilitate such resales.

 

4.                                      Shelf Registration.

 

(a)                                 Shelf Registration. If (i) the Company is not required to file an Exchange Offer Registration Statement or to consummate the Exchange Offer because the Exchange Offer is not permitted by applicable law or Commission policy (after the procedures set forth in Section 6(a) hereof have been complied with), (ii) for any reason the Exchange Offer is not Consummated within 120 days after the Closing Date (or if such 120th day is not a Business Day, the next succeeding Business Day), or (iii) with respect to any Holder of Transfer Restricted Notes (A) such Holder is prohibited by applicable law or Commission policy from participating in the Exchange Offer, or (B) such Holder may not resell the Exchange Notes acquired by it in the Exchange Offer to the public without delivering a prospectus and that the Prospectus contained in the Exchange Offer Registration Statement is not appropriate or available for such resales by such Holder, or (C) such Holder is a Broker-Dealer and holds Initial Notes acquired directly from the Company or one of their affiliates, then, upon such Holder’s request, the Company shall use its commercially reasonable efforts to:

 

(x)                                 cause to be filed a shelf registration statement pursuant to Rule 415 under the Securities Act, which may be an amendment to the Exchange Offer Registration Statement (in either event, the “Shelf Registration Statement”), no later than the later of (i) the 30th day after the date such filing obligation arises and (ii) the 120th day after the Closing Date (or if such 120th day is not a Business Day, the next succeeding Business Day) (such earliest date being the “Shelf Filing Deadline”), which Shelf Registration Statement shall provide for resales of all Transfer Restricted Notes the Holders of which shall have provided the information required pursuant to Section 4(b) hereof; and

 

 

(y)                                 cause such Shelf Registration Statement to be declared effective by the Commission on or before the 90th day after the Shelf Filing Deadline (or if such 90th day is not a Business Day, the next succeeding Business Day).

 

The Company shall use its commercially reasonable efforts to keep such Shelf Registration Statement continuously effective, supplemented and amended as required by the provisions of Sections 6(b) and (c) hereof to the extent necessary to ensure that it is available for resales of Initial Notes by the Holders of Transfer Restricted Notes entitled to the benefit of this Section 4(a), and to ensure that it conforms with the requirements of this Agreement, the Securities Act and the policies, rules and regulations of the Commission as announced from time to time, until the earlier of (i) one year following the effective date of such Shelf Registration Statement and (ii) when all the Initial Notes covered by such Shelf Registration Statement have been sold pursuant to such Shelf Registration Statement or cease to be Transfer Restricted Notes.

 

(b)                                 Provision by Holders of Certain Information in Connection with the Shelf Registration Statement. No Holder of Transfer Restricted Notes may include any of its Transfer Restricted Notes in any Shelf Registration Statement pursuant to this Agreement unless and until such Holder furnishes to the Company in writing, within 10 Business Days after receipt of a request therefor, such information as the Company may reasonably request for use in connection with any Shelf Registration Statement or Prospectus or preliminary Prospectus included therein. Each Holder as to which any Shelf Registration Statement is being effected agrees to furnish promptly to the Company all information required to be disclosed in order to make the information previously furnished to the Company by such Holder not materially misleading.

 

5.                                      Additional Interest.

 

If (i) any of the Registration Statements required by this Agreement is not filed with the Commission on or prior to the last date specified for such filing in this Agreement, (ii) any of such Registration Statements has not been declared effective by the Commission on or prior to the last date specified for such effectiveness in this Agreement (the “Effectiveness Target Date”), (iii) the Exchange Offer has not been Consummated within 30 Business Days after the Effectiveness Target Date with respect to the Exchange Offer Registration Statement or (iv) any Registration Statement required by this Agreement is filed and declared effective but shall thereafter cease to be effective or fail to be usable for its intended purpose (except as specifically permitted herein, including with respect to any Suspension Period as provided in Section 6(a) hereof) without being succeeded immediately by a post-effective amendment to such Registration Statement that cures such failure and that is itself immediately declared effective (each such event referred to in clauses (i) through (iv), a “Registration Default”), the Company hereby agrees that the interest rate borne by the Transfer Restricted Notes shall be increased by 0.25% per annum during the 90-day period immediately following the occurrence of any Registration Default and shall increase by 0.25% per annum at the end of each subsequent 90-day period, but in no event shall such increase exceed 1.00% per annum. Following the earlier of (x) the cure of all Registration Defaults relating to any particular Transfer Restricted Notes and (y) the day on which there are no outstanding Transfer 

 

 

Restricted Notes, the interest rate borne by the relevant Transfer Restricted Notes will be reduced to the original interest rate borne by such Transfer Restricted Notes; provided, however, that, if after any such reduction in interest rate, a different Registration Default occurs, the interest rate borne by the relevant Transfer Restricted Notes shall again be increased pursuant to the foregoing provisions.  Notwithstanding any of the foregoing, any Registration Default will be deemed to have ended (and no Registration Default shall subsequently be deemed to occur) (a) during any Suspension Period or (b) when the Initial Notes are no longer Transfer Restricted Notes.  For the avoidance of doubt, the consummation of the Exchange Offer shall be deemed to cure all Registration Defaults.

 

All obligations of the Company set forth in the preceding paragraph that are outstanding with respect to any Transfer Restricted Note at the time such Note ceases to be a Transfer Restricted Note shall survive until such time as all such obligations with respect to such Note shall have been satisfied in full.

 

Notwithstanding the foregoing, (i) the amount of additional interest payable shall not increase because more than one Registration Default has occurred and is pending and (ii) a Holder of Transfer Restricted Notes that has not timely delivered all information to the Company pursuant to Section 4(b) hereof shall not be entitled to additional interest with respect to a Registration Default that pertains to such Shelf Registration Statement following the time such Holder elects not to include information or following the deadline to timely deliver information to the Company pursuant to Section 4(b) hereof.

 

It is acknowledged that the interest rate increase set forth in this section is the sole remedy for any default under this Agreement.

 

6.                                      Registration Procedures.

 

(a)                                 Exchange Offer Registration Statement. In connection with the Exchange Offer, the Company shall comply with all of the provisions of Section 6(c) hereof, shall use its commercially reasonable efforts to effect such exchange to permit the sale of Transfer Restricted Notes being sold in accordance with the intended method or methods of distribution thereof, and shall comply with the following provision:

 

(i)                                     As a condition to its participation in the Exchange Offer pursuant to the terms of this Agreement, each Holder of Transfer Restricted Notes shall furnish, upon the request of the Company, prior to the Consummation thereof, a written representation to the Company (which may be contained in the letter of transmittal contemplated by the Exchange Offer Registration Statement) to the effect that (A) it is not an affiliate of the Company, (B) it is not engaged in, and does not intend to engage in, and has no arrangement or understanding with any Person to participate in, a distribution of the Exchange Notes to be issued in the Exchange Offer, (C) it is acquiring the Exchange Notes in its ordinary course of business. In addition, all such Holders of Transfer Restricted Notes shall otherwise cooperate in the Company’s preparations for the Exchange Offer, (D) if the Holder is a Broker-Dealer who holds Initial Notes that are Transfer Restricted Notes that were acquired as a result of market-making or other trading activities, then such Holder will deliver a 

 

 

Prospectus (or to the extent permitted by law, make available a Prospectus to purchasers) in connection with any resale) and (E) it is not acting on behalf of any Person who could not truthfully make the statements set forth in clauses (A), (B), (C) and (D) immediately above. Each Holder hereby acknowledges and agrees that any Broker-Dealer and any such Holder using the Exchange Offer to participate in a distribution of the Notes to be acquired in the Exchange Offer (1) could not under Commission policy as in effect on the date of this Agreement rely on the position of the Commission enunciated in Morgan Stanley  and Co., Inc. (available June 5, 1991) and Exxon Capital Holdings Corporation (available May 13, 1988), as interpreted in the Commission’s letter to Shearman & Sterling dated July 2, 1993, and similar no-action letters (which may include any no-action letter obtained pursuant to clause (i) above), and (2) must comply with the registration and prospectus delivery requirements of the Securities Act in connection with a secondary resale transaction and that such a secondary resale transaction should be covered by an effective registration statement containing the selling note holder information required by Item 507 or 508, as applicable, of Regulation S-K if the resales are of Exchange Notes obtained by such Holder in exchange for Initial Notes acquired by such Holder directly from the Company.

 

(b)                                 Shelf Registration Statement. In connection with any requirement to file a Shelf Registration Statement, the Company shall comply with all the provisions of Section 6(c) hereof and shall use its commercially reasonable efforts to effect such registration to permit the sale of the Transfer Restricted Notes being sold in accordance with the intended method or methods of distribution thereof, and pursuant thereto the Company will use commercially reasonable efforts to prepare and file with the Commission a Registration Statement relating to the registration on any appropriate form under the Securities Act, which form shall be available for the offer and sale of the Transfer Restricted Notes in accordance with the intended method or methods of distribution thereof.

 

(c)                                  General Provisions. In connection with any Registration Statement and any Prospectus required by this Agreement to permit the sale or resale of Transfer Restricted Notes (including, without limitation, any Registration Statement and the related Prospectus required to permit resales of Initial Notes by Broker-Dealers), the Company shall:

 

(i)                                     use its commercially reasonable efforts to keep such Registration Statement continuously effective and include or incorporate by reference therein all requisite financial statements as required by the Securities Act or any regulation thereunder for the period specified in Section 3 or 4 hereof, as applicable; upon the occurrence of any event that would cause any such Registration Statement or the Prospectus contained therein (A) to contain a material misstatement or omission or (B) not to be effective and usable for resale of Transfer Restricted Notes during the period required by this Agreement, the Company shall file promptly an appropriate amendment to such Registration Statement (or, if permitted, file with the Commission a document incorporated by reference into the Registration Statement), in the case of clause (A), correcting any such misstatement or omission, and, in the case of either clause (A) or (B), use its commercially reasonable efforts to cause such amendment to be declared effective and such Registration Statement and the related Prospectus to 

 

 

become usable for their intended purpose(s) as soon as reasonably practicable thereafter;

 

(ii)                                  prepare and file with the Commission such amendments and post-effective amendments to the applicable Registration Statement as may reasonably be necessary to keep the Registration Statement effective for the applicable period set forth in Section 3 or 4 hereof, as applicable, or such shorter period as will terminate when all Transfer Restricted Notes covered by such Registration Statement have been exchanged or sold or otherwise cease to be Transfer Restricted Notes; cause the  Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 under the Securities Act, and to comply with the applicable provisions of Rules 424 and 430A under the Securities Act in a timely manner; and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement during the applicable period in accordance with the intended method or methods of distribution by the sellers thereof set forth in such Registration Statement or supplement to the Prospectus;

 

(iii)                               in the case of a Shelf Registration, advise the underwriter(s), if any, and selling Holders reasonably promptly and, if requested by such Persons, to confirm such advice in writing, (A) when the Prospectus or any Prospectus supplement or post-effective amendment has been filed, and, with respect to any Registration Statement or any post-effective amendment thereto, when the same has become effective, (B) of any request by the Commission for amendments to the Registration Statement or amendments or supplements to the Prospectus or for additional information relating thereto, (C) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement under the Securities Act or of the suspension by any state securities commission of the qualification of the Transfer Restricted Notes for offering or sale in any jurisdiction, or the initiation of any proceeding for any of the preceding purposes, (D) of the existence of any fact or the happening of any event that makes any statement of a material fact made in the Registration Statement, the Prospectus, any amendment or supplement thereto, or any document incorporated by reference therein untrue, or that requires the making of any additions to or changes in the Registration Statement or the Prospectus in order to make the statements therein not misleading. If at any time the Commission shall issue any stop order suspending the effectiveness of the Registration Statement, or any state securities commission or other regulatory authority shall issue an order suspending the qualification or exemption from qualification of the Transfer Restricted Notes under state securities or blue sky laws, the Company shall use its commercially reasonable efforts to obtain the withdrawal or lifting of such order as soon as reasonably practicable thereafter;

 

(iv)                              in the case of a Shelf Registration, furnish without charge to each selling Holder named in any Registration Statement and each of the underwriter(s), if any, upon request, copies of any Registration Statement or any Prospectus included therein or any amendments or supplements to any such Registration Statement or Prospectus (without any documents incorporated by reference or exhibits thereto, unless requested, and only to the extent such documents are not available through the Commission’s EDGAR system);

 

 

(v)                                 [Reserved]

 

(vi)                              in the case of a Shelf Registration, make available, subject to customary confidentiality agreements, at reasonable times and in reasonable manner for inspection by the managing underwriter(s), if any, participating in any disposition pursuant to such Registration Statement and one counsel or accountant retained by any of the underwriter(s) in connection therewith, all financial and other records, pertinent corporate documents and properties of the Company and cause the Company’s officers, directors and employees to supply all information reasonably requested by any such  underwriter, counsel or accountant in connection with such Registration Statement or any post-effective amendment thereto subsequent to the filing thereof and prior to its effectiveness;

 

(vii)                           in the case of a Shelf Registration, if reasonably requested by any selling Holders or the underwriter(s), if any, promptly incorporate in any Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if necessary, such information as such selling Holders and underwriter(s), if any, may reasonably request to have included therein, including, without limitation, information relating to the “Plan of Distribution” of the Transfer Restricted Notes, information with respect to the principal amount of Transfer Restricted Notes being sold to such underwriter(s), the purchase price being paid therefor and any other terms of the offering of the Transfer Restricted Notes to be sold in such offering; and make all required filings of such Prospectus supplement or post-effective amendment as soon as practicable after the Company is notified of the matters to be incorporated in such Prospectus supplement or post-effective amendment;

 

(viii)                        [Reserved]

 

(ix)                              [Reserved]

 

(x)                                 in the case of a Shelf Registration, deliver to each selling Holder and each of the underwriter(s), if any, without charge, as many copies of the Prospectus (including each preliminary prospectus) and any amendment or supplement thereto as such Persons reasonably may request; the Company hereby consents to the use of the Prospectus and any amendment or supplement thereto by each of the selling Holders and each of the underwriter(s), if any, in connection with the offering and the sale of the Transfer Restricted Notes covered by the Prospectus or any amendment or supplement thereto;

 

(xi)                              [Reserved]

 

(A)                               [Reserved]

 

(1)                                 [Reserved]

 

(2)                                 [Reserved]

 

(3)                                 [Reserved]

 

(B)                               [Reserved]

 

(C)                               [Reserved]

 

 

(xii)                           in the case of a Shelf Registration, prior to any public offering of Transfer Restricted Notes, cooperate with the selling Holders, the underwriter(s), if any, and their respective counsel in connection with the registration and qualification of the Transfer Restricted Notes under the state securities or blue sky laws of such jurisdictions as the selling Holders or underwriter(s), if any, may reasonably request and do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Transfer Restricted Notes covered by the Shelf Registration Statement;  

 

provided, however, that the Company shall not be required to register or qualify as a foreign corporation where it is not then so qualified or to take any action that would subject it to the service of process in suits or to taxation, other than as to matters and transactions relating to the Registration Statement, in any jurisdiction where it is not then so subject;

 

(xiii)                        in the case of an Exchange Offer, shall issue, upon the request of any Holder of Initial Notes covered by the Shelf Registration Statement, Exchange Notes having an aggregate principal amount equal to the aggregate principal amount of Initial Notes surrendered to the Company by such Holder in exchange therefor or being sold by such Holder; such Exchange Notes to be registered in the name of such Holder or in the name of the purchaser(s) of such Exchange Notes, as the case may be; in return, the Initial Notes held by such Holder shall be surrendered to the Company for cancellation;

 

(xiv)                       in the case of a Shelf Registration, unless any Transfer Restricted Notes shall be in book-entry only form, cooperate with the selling Holders and the underwriter(s), if any, to facilitate the timely preparation and delivery of certificates representing Transfer Restricted Notes to be sold and not bearing any restrictive legends; and enable such Transfer Restricted Notes to be in such denominations and registered in such names as the Holders or the underwriter(s), if any, may request at least two Business Days prior to any sale of Transfer Restricted Notes made by such Holders or underwriter(s);

 

(xv)                          [Reserved]

 

(xvi)                       in the case of a Shelf Registration, if any fact or event contemplated by Section 6(c)(iii)(D) hereof shall exist or have occurred, use its commercially reasonable efforts to prepare a supplement or post-effective amendment to the Registration Statement or related Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered to the purchasers of Transfer Restricted Notes, the Prospectus will not contain an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein not misleading;

 

(xvii)                    use its commercially reasonable efforts to provide a CUSIP number for all Notes not later than the effective date of the Registration Statement covering such Notes, provide the Trustee under the Indenture with certificates for such Notes which are in a form eligible for deposit with The Depository Trust Company and take all other action necessary to ensure that all such Notes are eligible for deposit with The Depository Trust Company;

 

 

(xviii)                 in the case of a Shelf Registration, use its commercially reasonable efforts to cooperate and assist in any filings required to be made with FINRA and in the performance of any due diligence investigation by any underwriter that is required to be retained in accordance with the rules and regulations of FINRA;

 

(xix)                       otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, and make generally available to its note holders no later than eighteen months after the effective date of the Registration Statement a consolidated earnings statement meeting the requirements  Section 11(a) of the Securities Act (including, at the Company’s option, Rule 158 thereunder), which need not be audited; and

 

(xx)                          use its commercially reasonable efforts to cause the Indenture to be qualified under the Trust Indenture Act not later than the effective date of the first Registration Statement required by this Agreement, and, in connection therewith, cooperate with the Trustee and the Holders of Notes to effect such changes to the Indenture as may be required for such Indenture to be so qualified in accordance with the terms of the Trust Indenture Act; and to execute and use its commercially reasonable efforts to cause the Trustee to execute, all documents that may be required to effect such changes and all other forms and documents required to be filed with the Commission to enable such Indenture to be so qualified in a timely manner.

 

(xxi)                       [Reserved]

 

Each Holder agrees by acquisition of a Transfer Restricted Note that (a) the Company may suspend the use or effectiveness (or maintenance of usability or effectiveness) of the applicable Registration Statement, or extend the time period in which it is required to file the applicable Registration Statement, for up to 60 consecutive days and up to 120 days in the aggregate, in each case in any 12-month period (a “Suspension Period”), if the Company in good faith determines that (1) any fact of the kind described in Section 6(c)(iii)(D) hereof exists, or that effecting the registration (or such maintenance of effectiveness and usability) would materially and adversely affect an offering of securities of the Company or (2) it is in possession of material non-public information the disclosure of which would not be in the best interests of the Company and that (b) upon receipt of any notice to such effect from the Company such Holder will forthwith discontinue disposition of Transfer Restricted Notes pursuant to the applicable Registration Statement until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section 6(c)(xvi) hereof, or until it is advised in writing (the “Advice”) by the Company that the use of the Prospectus may be resumed, and has received copies of any additional or supplemental filings that are incorporated by reference in the Prospectus. If so directed by the Company, each Holder will deliver to the Company all copies, other than permanent file copies then in such Holder’s possession, of the Prospectus covering such Transfer Restricted Notes that was current at the time of receipt of such notice. In the event the Company shall give any such notice, the time period regarding the effectiveness of such Registration Statement set forth in Section 3 or 4 hereof, as applicable, shall be extended by the number of days during the Suspension Period.

 

 

(d)                                 For a period of up to 30 days following the Consummation of the Exchange Offer, to the extent any Exchange Notes are outstanding and held by a Broker-Dealer, if, in the reasonable judgment of the Initial Purchaser, the Initial Purchaser or any of its affiliates (as such term is defined in the Securities Act) are required to deliver a prospectus in connection with sales of, or market-making activities with respect to, such Notes, the Company agrees to periodically amend the applicable Registration Statement so that the information contained therein complies with the requirements of Section 10 of the Securities Act, to amend the applicable Registration Statement or supplement the related Prospectus or the documents incorporated therein when necessary to reflect any material changes in the information provided therein so  that the Registration Statement and the Prospectus will not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances existing as of the date the Prospectus is so delivered, not misleading and to provide the Initial Purchaser with copies of each amendment or supplement filed and such other documents as the Initial Purchaser may reasonably request. The Company hereby expressly acknowledges that the indemnification and contribution provisions of Section 8 hereof are specifically applicable and relate to each offering memorandum, Registration Statement, Prospectus, amendment or supplement referred to in this Section 6(d).

 

7.                                      Registration Expenses.

 

(a)                                 All reasonable and documented expenses incident to the Company’s performance of or compliance with this Agreement will be borne by the Company, regardless of whether a Registration Statement becomes effective, including, without limitation: (i) all registration and filing fees and expenses (including filings made by the Initial Purchaser or Holder with FINRA (and, if applicable, the fees and expenses of any “qualified independent underwriter” and one counsel that may be required by the rules and regulations of FINRA in an amount not to exceed $5,000)); (ii) all fees and expenses of compliance with federal securities and state securities or blue sky laws; (iii) all expenses of printing (including printing certificates for the Exchange Notes to be issued in the Exchange Offer and printing of Prospectuses), messenger and delivery services and telephone; (iv) all fees and disbursements of counsel for the Company and, as provided in Section 7(b) hereof, the Holders of Transfer Restricted Notes; (v) all application and filing fees in connection with listing the Exchange Notes on a securities exchange or automated quotation system pursuant to the requirements thereof; and (vi) all fees and disbursements of independent certified public accountants of the Company (including the expenses of any special audit and comfort letters required by or incident to such performance), but excluding in all cases fees and expenses of counsel to the Initial Purchaser or the Holders (except as set forth in Section 7(b) hereof) and underwriting discounts and commissions, brokerage commissions and transfer taxes, if any, relating to the sale or disposition of Transfer Restricted Notes by a Holder.

 

The Company will, in any event, bear its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expenses of any annual audit and the fees and expenses of any Person, including special experts, retained by the Company.

 

 

(b)                                 In connection with any Shelf Registration Statement required by this Agreement, the Company will reimburse the Initial Purchaser and the Holders of Transfer Restricted Notes registered pursuant to the Shelf Registration Statement, for the reasonable and documented fees and disbursements not to exceed $27,500 of not more than one counsel as may be chosen by the Holders of a majority in principal amount of the Transfer Restricted Notes for whose benefit such Shelf Registration Statement is being prepared (which counsel may also be counsel for the Initial Purchaser).

 

8.                                      Indemnification.

 

(a)                                 The Company agrees to indemnify and hold harmless (i) each Holder and (ii) each Person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any Holder (any of the Persons referred to in this clause (ii) being hereinafter referred to as a “controlling person”) and (iii) the respective officers, directors and affiliates of any Holder or any controlling person (any Person referred to in clause (i), (ii) or (iii) may hereinafter be referred to as an “Indemnified Holder”), to the fullest extent lawful, from and against any and all losses, claims, damages and liabilities (including, without limitation, and as incurred, reimbursement of all reasonable costs of investigating, preparing, pursuing, settling, compromising, paying or defending any claim or action, or any investigation or proceeding by any governmental agency or body, commenced or threatened, including the reasonable fees and expenses of counsel to any Indemnified Holder), joint or several, arising out of or in connection with any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement or Prospectus (or any amendment or supplement thereto), or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made in the case of the Prospectus, not misleading, except insofar as such losses, claims, damages, liabilities or expenses are caused by an untrue statement or omission or alleged untrue statement or omission that is made in reliance upon and in conformity with information relating to any of the Holders furnished in writing to the Company by or on behalf of any of the Holders expressly for use therein. This indemnity agreement shall be in addition to any liability which the Company may otherwise have.

 

In case any action or proceeding (including any governmental or regulatory investigation or proceeding) shall be brought or asserted against any of the Indemnified Holders with respect to which indemnity may be sought against the Company, such Indemnified Holder (or the Indemnified Holder controlled by such controlling person) shall promptly notify the Company in writing; provided, however, that the failure to give such notice shall not relieve the Company of its obligations pursuant to this Agreement except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure. Notwithstanding the foregoing sentence, in case any such action or proceeding shall be brought against any Indemnified Holder and it shall notify the Company of the commencement thereof, the Company shall be entitled to participate therein and, to the extent that the Company shall elect, jointly with any other indemnifying party similarly notified, by written notice delivered to the indemnified party promptly after 

 

 

receiving the aforesaid notice from such Indemnified Holder, to assume the defense thereof with counsel reasonably satisfactory to such Indemnified Holder (who shall not, except with the consent of the Indemnified Holder, be counsel to the Company, which consent shall not be unreasonably withheld); provided, however, if the defendants in any such action include both the Indemnified Holder and the indemnifying party and an Indemnified Holder shall have reasonably concluded that a conflict may arise between the positions of the indemnifying party and the Indemnified Holder in conducting the defense of any such action or that there may be legal defenses available to it and/or other Indemnified Holders which are different from or additional to those available to the indemnifying party, the Indemnified Holder or Holders shall have the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such action  on behalf of such Indemnified Holder or Holders; provided, however, that the Company shall not be liable for the fees and expenses of more than one separate firm (in addition to one local counsel). After notice from the Company to such Indemnified Holder of its election so to assume the defense thereof, the Company shall not be liable under this Section 8 to such Indemnified Holder for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such Indemnified Holder, in connection with the defense thereof other than reasonable costs of investigation unless (i) the Indemnified Holder shall have employed separate counsel in accordance with the proviso to the immediately preceding sentence representing the Indemnified Holders who are parties to such action or (ii) the indemnifying party shall not have employed counsel reasonably satisfactory to the Indemnified Holder to represent the Indemnified Holder within a reasonable time after notice of commencement of the action, in each of which cases the fees and expenses of counsel shall be at the expense of the indemnifying party. The Company shall not be liable for any settlement effected without its prior written consent, which will not be unreasonably withheld. The Company shall not, without the prior written consent of each Indemnified Holder, settle or compromise or consent to the entry of judgment in or otherwise seek to terminate any pending or threatened action, claim, litigation or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any Indemnified Holder is a party thereto), unless such settlement, compromise, consent or termination (i) includes an unconditional release of each Indemnified Holder from all liability arising out of such action, claim, litigation or proceeding and (ii) does not include a statement as to, or an admission of, fault, culpability or a failure to act by or on behalf of the Indemnified Holder.

 

(b)                                 Each Holder of Transfer Restricted Notes agrees, severally and not jointly, to indemnify and hold harmless the Company and its directors and officers who sign a Registration Statement, and any Person controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company and the respective officers, directors and affiliates of each such Person, to the same extent as the foregoing indemnity from the Company to each of the Indemnified Holders, but only with respect to losses, claims, damages and liabilities, directly or indirectly caused by, based upon, arising out of or in connection with information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in any Registration Statement. In case any action or proceeding shall be brought against the Company, or their respective directors or officers or any such Person controlling 

 

 

the Company or the respective officers, directors and affiliates of each such Person in respect of which indemnity may be sought against a Holder of Transfer Restricted Notes, such Holder shall have the rights and duties given the Company by the preceding paragraph, and the Company and such directors and officers who sign a Registration Statement and any such Person controlling the Company and such respective officers, directors and affiliates of each such Person shall have the rights and duties given to each Holder by the preceding paragraph.

 

(c)                                  If the indemnification provided for in this Section 8 is unavailable to an indemnified party under Section 8(a) or (b) hereof (other than by reason of exceptions provided in those Sections) in respect of any losses, claims, damages, liabilities, judgments, actions or expenses referred to therein, then each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount  paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative benefits received by the Company, on the one hand, and the Holders, on the other hand, from the Initial Placement (which in the case of the Company shall be deemed to be equal to the gross proceeds to the Company from the Initial Placement (before deducting expenses)), or if such allocation is not permitted by applicable law, the relative fault of the Company, on the one hand, and the Holders, on the other hand, in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and of the Indemnified Holder on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company, on the one hand, or the Indemnified Holders, on the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 8(a) hereof, any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any such action or claim.

 

The Company and each Holder of Transfer Restricted Notes agree that it would not be just and equitable if contribution pursuant to this Section 8(c) were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities or expenses referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 8, none of the Holders (and its related Indemnified Holders) shall be required to contribute, in the aggregate, any amount in excess of the amount by which the dollar amount of the proceeds received by such Holder with respect to any Transfer Restricted Notes exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or 

 

 

omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations to contribute pursuant to this Section 8(c) are several in proportion to the respective principal amount of Initial Notes held by each of the Holders hereunder and not joint.

 

9.                                      Rule 144A

 

The Company hereby agrees with each Holder, if any time during the period of one year from the date of this Agreement the Company is not subject to the information requirements of the Exchange Act, for so long as any Transfer Restricted Notes remain outstanding, to make available upon request to any Holder or beneficial owner of  Transfer Restricted Notes in connection with any sale thereof and any prospective purchaser of such Transfer Restricted Notes from such Holder or beneficial owner, the information required by Rule 144A(d)(4) under the Securities Act in order to permit resales of such Transfer Restricted Notes pursuant to Rule 144A under the Securities Act.

 

10.                               Participation in Underwritten Registrations.

 

Each Holder of Transfer Restricted Notes hereby agrees with the Company that no such Holder may participate in any Underwritten Registration hereunder unless (a) the Company gives its prior written consent to such underwritten offering, (b) the investment banker(s) and managing underwriter(s) thereof shall be designated in accordance with Section 11 hereunder, (c) such Holder agrees to sell such Holder’s Transfer Restricted Notes on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and (d) such Holder completes and executes all reasonable questionnaires, powers of attorney, indemnities, underwriting agreements, lock-up letters and other documents required under the terms of such underwriting arrangements. The Company hereby agrees with each Holder of Transfer Restricted Notes that, to the extent it consents to an underwritten offering hereunder, it will negotiate in good faith and execute all indemnities, underwriting agreements, lock-up letters and other documents reasonably required under the terms of such underwriting arrangements.

 

11.                               Selection of Underwriters.

 

Subject to Section 10 hereunder, the Holders of Transfer Restricted Notes covered by the Shelf Registration Statement who desire to do so may sell such Transfer Restricted Notes in an Underwritten Offering. In any such Underwritten Offering, the investment banker(s) and managing underwriter(s) that will administer such offering will be selected by the Holders of a majority in aggregate principal amount of the Transfer Restricted Notes included in such offering; provided, however, that such investment banker(s) and managing underwriter(s) must be reasonably satisfactory to the Company.

 

12.                               Miscellaneous.

 

(a)                                 Remedies. The provisions for additional interest will be the only monetary remedy available to Holders under this Agreement for a violation of the 

 

 

registration requirements contemplated by this Agreement.  The Company hereby agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the other provisions of this Agreement and hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate.

 

(b)                                 No Inconsistent Agreements. The Company will not on or after the date of this Agreement enter into any agreement with respect to its securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. The rights granted to the Holders hereunder do not in any way conflict in any material respects with and are not inconsistent in any material  respects with the rights granted to the holders of the Company’s securities under any agreement in effect on the date hereof.

 

(c)                                  Adjustments Affecting the Notes. The Company will not take any action, or permit any change to occur, with respect to the Notes that would materially and adversely affect the ability of the Holders to Consummate any Exchange Offer; provided that the Company may take any action or permit any change to occur that is expressly permitted by this Agreement.

 

(d)                                 Amendments and Waivers. The provisions of this Agreement may not be amended, modified or supplemented, and waivers or consents to or departures from the provisions hereof may not be given unless the Company has (i) in the case of Section 5 hereof and this Section 12(d)(i), obtained the written consent of Holders of all outstanding Transfer Restricted Notes and (ii) in the case of all other provisions hereof, obtained the written consent of Holders of a majority of the outstanding principal amount of Transfer Restricted Notes (excluding any Transfer Restricted Notes held by the Company or its respective Affiliates). Notwithstanding the foregoing, a waiver or consent to departure from the provisions hereof that relates exclusively to the rights of Holders whose Notes are being tendered pursuant to the Exchange Offer and that does not affect directly or indirectly the rights of other Holders whose Notes are not being tendered pursuant to such Exchange Offer may be given by the Holders of a majority of the outstanding principal amount of Transfer Restricted Notes being tendered or registered; provided, however, that, with respect to any matter that directly or indirectly affects the rights of the Initial Purchaser hereunder, the Company shall obtain the written consent of the Initial Purchaser with respect to which such amendment, qualification, supplement, waiver, consent or departure is to be effective.

 

(e)                                  Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, first-class mail (registered or certified, return receipt requested), facsimile, or air courier guaranteeing overnight delivery:

 

(i)                                     if to a Holder, at the address set forth on the records of the Registrar under the Indenture, with a copy to the Registrar under the Indenture; and

 

(ii)                                  if to the Company:

 

Arbor Realty Trust, Inc.

333 Earle Ovington Boulevard, Suite 900

 

 

Uniondale, New York 11553

Attention: Paul Elenio, Chief Financial Officer

 

With a copy, which shall not constitute notice, to:

 

Skadden, Arps, Slate, Meagher & Flom LLP

Four Times Square

New York, New York 10036

Attention: David J. Goldschmidt

 

All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if facsimiled; and on the next Business Day, if timely delivered to an air courier guaranteeing overnight delivery.

 

Copies of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee at the address specified in the Indenture.

 

(f)                                   Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties, including, without limitation, and without the need for an express assignment, subsequent Holders of Transfer Restricted Notes; provided, however, that this Agreement shall not inure to the benefit of or be binding upon a successor or assign of a Holder unless and to the extent such successor or assign acquired Transfer Restricted Notes from such Holder.

 

(g)                                  Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or other electronic transmission (i.e., a “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart thereof.

 

(h)                                 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

(i)                                     Governing Law. THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW RULES THEREOF.

 

(j)                                    Submission to Jurisdiction. Each party hereto hereby submits to the nonexclusive jurisdiction of the U.S. federal and New York state courts in the Borough of Manhattan in The City of New York in any suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. Each party hereto waives any objection which it may now or hereafter have to the laying of venue

 

 

of any such suit or proceeding in such courts. Each party hereto agrees that final judgment in any such suit, action or proceeding brought in such court shall be conclusive and binding upon it and may be enforced in any court to the jurisdiction of which it is subject by a suit upon such judgment.

 

(k)                                 Severability. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby.

 

(l)                                     Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of  the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with respect to the registration rights granted by the Company with respect to the Transfer Restricted Notes. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter.

 

[Remainder of page intentionally left blank]

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

 

	
 
    	
Very truly yours
    
	
 
    	
 
    
	
 
    	
ARBOR REALTY TRUST, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul Elenio
    
	
 
    	
 
    	
Name:
    	
Paul Elenio
    
	
 
    	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    
	
Accepted:
    	
As   of the date first written above
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SANDLER O’NEILL & PARTNERS, L.P.
    	
 
    
	
By: Sandler O’Neill & Partners   Corp., the sole general partner
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Robert Kleinert
    	
 
    
	
 
    	
Name:
    	
Robert Kleinert
    	
 
    
	
 
    	
Title:
    	
Officer of the   Corporation
    	
 
    
							

 

[Signature Page to Registration Rights Agreement]

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