Document:

Exhibit 10.2

 

FIRST
AMENDMENT TO PATENT AND TECHNOLOGY LICENSE AGREEMENT

 

THIS
FIRST AMENDMENT TO PATENT AND TECHNOLOGY LICENSE AGREEMENT (“AMENDMENT”) is made on this 15th day of October, 2015,
by and between Novel Anti-Infective Technologies, LLC, a Texas limited liability corporation having a principal place of business
located at 4207 Clearwater Ct., Missouri City, TX 77459 (“LICENSOR”) and Leonard-Meron Biosciences, Inc., a Delaware
corporation having a principal place of business located 11 Commerce Drive, First Floor, Cranford, NJ 07016 (“LICENSEE”).

 

RECITALS

 

A.       LICENSOR
and LICENSEE entered into a Patent and Technology License Agreement dated May 14, 2014 (the “SUBLICENSE”) pursuant
to which LICENSOR granted LICENSEE a sublicense to certain rights licensed to LICENSOR pursuant to a Patent and Technology License
Agreement dated as of May 7, 2014 (the “SYSTEM LICENSE AGREEMENT”), with THE BOARD OF REGENTS (“BOARD”)
of THE UNIVERSITY OF TEXAS SYSTEM (“SYSTEM”), an agency of the State of Texas, on behalf of THE UNIVERSITY OF TEXAS
M. D. ANDERSON CANCER CENTER (“UTMDACC”), a member institution of SYSTEM.

 

B.       LICENSOR
has entered into an amendment to the SYSTEM LICENSE AGREEMENT titled “Amendment No. 3 to the Patent and Technology License
Agreement” dated October 7, 2015 which grants LICENSOR certain rights to the technology identified in UTMDACC’s invention
disclosure MDA14-098;

 

C.       LICENSOR
and LICENSEE now desire to amend the SUBLICENSE to include in the “PATENT RIGHTS,” as defined in the SUBLICENSE, the
rights of LICENSOR in MDA 14-098.

 

NOW,
THEREFORE, in consideration of the mutual covenants and promises herein contained, the parties agree as follows:

 

1.
EXHIBIT 1 Amendment. EXHIBIT 1 to the SUBLICENSE is hereby amended and restated to read in its entirety as provided in
EXHIBIT 1 attached to this AMENDMENT.

 

2.
EXHIBIT 2 Amendment. EXHIBIT 2 to the SUBLICENSE is hereby amended by adding “and MDA 14-098” after “MDA03-038”
in the first line.

 

3.
No Further Amendment. Except as expressly amended hereby, the SUBLICENSE shall remain in full force and effect. This AMENDMENT
shall be construed to be, and interpreted as, a part of the SUBLICENSE.

 

    

     

    

 

4.
Counterparts. This AMENDMENT may be executed in two or more counterparts, each of which when executed shall be deemed to
be an original, and all of which together shall be considered one and the same agreement and shall become effective when one or
more counterparts have been signed by each of the parties and delivered to the other party. For purposes of this AMENDMENT facsimile
signatures or signatures by other electronic form of transfer, including PDF file, shall be deemed originals.

 

IN
WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to execute this AMENDMENT.

 

	LEONARD-MERON	 	NOVEL ANTI-INFECTIVE TECHNOLOGIES, LLC
	BIOSCIENCES, INC.	 	 
	 	 	 	 
	By	             	 	By _______________________________
	Printed Name: Myron Holubiak	 	Printed Name: _______________________
	Title: Chief Executive Officer	 	Title: _____________________________

  

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EXHIBIT
1

 

	MDA
        No.

        (each
        an individual technology)
	 	Inventors
    	 	IDR
    Title 	 	U.S.
    and foreign patent application/patent numbers 
	MDA03-038	 	Issam
    I Raad, M.D.	 	Antimicrobials
    in Combination with Chelators and Ethanol for the Rapid Eradication of Microorganisms Embedded in Biofilm	 	U.S.
        Patent No.: 7,601,731;

        EP
        Serial No.: 04754538.9;

        CA
        Serial No.: 2,528,522;

        U.S.
        Serial No.: 13/095,262;

        U.S.
Serial No.: 13/621,628

	MDA14-098   	 	Issam
    I Raad, M.D., Joel Rosenblatt, Ph.D.	 	Antimicrobial
    Catheter Lock/Flush Solutions with Enhanced Stability	 	None

 

 

iExhibit
10.3

Portions
of this exhibit marked [*] are requested to be treated confidentially.

 

PATENT
AND TECHNOLOGY LICENSE AGREEMENT

 

This
AGREEMENT (“AGREEMENT”) is made on this 14th day of May, 2014, by and between Novel Anti-Infective Technologies, LLC,
a limited liability corporation organized and existing under the laws of the State of Texas and having a principal place of business
located at 4207 Clearwater Ct., Missouri City, TX 77459 (“LICENSOR”) and Leonard-Meron Biosciences, Inc., a Delaware
corporation having a principal place of business located 11 Commerce Drive, First Floor, Cranford, NJ 07016 (“LICENSEE”).

 

RECITALS

 

		A.	LICENSOR
                                         obtained, pursuant to a Patent and Technology License Agreement dated as of May 7, 2014
                                         (the “SYSTEM LICENSE AGREEMENT”), certain patent and technology rights from
                                         THE BOARD OF REGENTS (“BOARD”) of THE UNIVERSITY OF TEXAS SYSTEM (“SYSTEM”),
                                         an agency of the State of Texas, whose address is 201 West 7th Street, Austin, Texas
                                         78701, on behalf of THE UNIVERSITY OF TEXAS M. D. ANDERSON CANCER CENTER (“UTMDACC”),
                                         a member institution of SYSTEM.

 

		B.	LICENSOR
                                         desires to have the LICENSED SUBJECT MATTER developed in the LICENSED FIELD and used
                                         for the benefit of LICENSEE, BOARD, SYSTEM, UTMDACC, the inventor(s), and the public
                                         as outlined in BOARD’s Intellectual Property Policy.

 

		C.	LICENSEE
                                         wishes to obtain a license from LICENSOR to practice LICENSED SUBJECT MATTER in the LICENSED
                                         FIELD.

 

     

     

    

 

NOW,
THEREFORE, in consideration of the mutual covenants and promises herein contained, the parties agree as follows:

 

I.
EFFECTIVE DATE

 

		1.1	This
                                         AGREEMENT is effective as of the date written above (“EFFECTIVE DATE”) which
                                         is the date fully executed by all parties.

 

II.
DEFINITIONS

 

As
used in this AGREEMENT, the following terms have the meanings indicated:

 

		2.1	AFFILIATE
                                         means any business entity more than fifty percent (50%) owned by LICENSEE, any business
                                         entity which owns more than fifty percent (50%) of LICENSEE, or any business entity that
                                         is more than fifty percent (50%) owned by a business entity that owns more than fifty
                                         percent (50%) of LICENSEE.

 

		2.2	INDIVIDUAL
                                         PRODUCT means a LICENSED PRODUCT that is distinctive from another LICENSED PRODUCT
                                         in a significant way, e.g., more than just a variation in color or size. By way of example,
                                         and not by way of limitation, if two LICENSED PRODUCTS require individual REGULATORY
                                         APPROVAL (excluding products that differ only in color, dosage and size) each shall be
                                         considered a different INDIVIDUAL PRODUCT. By way of further example, if two LICENSED
                                         PRODUCTS have substantially different, non-overlapping uses, each shall be considered
                                         a different INDIVIDUAL PRODUCT. If a LICENSED PRODUCT is determined to be a new INDIVIDUAL
                                         PRODUCT under the SYSTEM LICENSE AGREEMENT such determination shall govern for the purposes
                                         of this AGREEMENT.

 

		2.3	LICENSED
                                         FIELD means the field of use identified in Exhibit 2.

 

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		2.4	LICENSED
                                         PRODUCT(S) means any product or service sold by LICENSEE or its AFFILIATES or their
                                         sublicensees comprising LICENSED SUBJECT MATTER pursuant to this AGREEMENT. For clarity,
                                         LICENSED PRODUCTS will include such product and services sold in any jurisdiction in
                                         the TERRITORY even if no PATENT RIGHTS exist or are pending in that jurisdiction.

 

		2.5	LICENSED
                                         SUBJECT MATTER means the inventions and discoveries covered by the PATENT RIGHTS
                                         or TECHNOLOGY RIGHTS within the LICENSED FIELD.

 

		2.6	LICENSED
                                         TERRITORY means worldwide excluding only South America.

 

		2.7	[RESERVED.]

 

	2.8	NET
                                         SALES means the gross revenues received by LICENSEE or its AFFILIATES or sublicensees
                                         from a SALE, less sales discounts actually granted, sales and/or use taxes actually paid,
                                         import and/or export duties actually paid, outbound transportation actually prepaid or
                                         allowed, and amounts actually allowed or credited due to returns (not exceeding the original
                                         billing or invoice amount), all as recorded by LICENSEE or its AFFILIATES or their sublicensees
                                         in their official books and records in accordance with generally accepted accounting
                                         practices and consistent with their published financial statements and/or regulatory
                                         filings with the United States Securities and Exchange Commission, if any. For clarity,
                                         it is understood and agreed that, with respect to NET SALES of a LICENSED PRODUCT made
                                         by a sublicensee or AFFILIATE (or by a sublicensee or AFFILIATE) to a third party, the
                                         “gross revenue” figure referenced above (for purposes of calculating the
                                         amount of NET SALES subject to the royalties specified in Section 4.1(d) below) shall
                                         be the greater of: (1) the gross revenue received by LICENSEE from the sublicensee, AFFILIATE
                                         or distributor for the transfer of such LICENSED PRODUCT to the sublicensee, or AFFILIATE
                                         for resale; or (2) the gross revenue received by such sublicensee, or AFFILIATE from
                                         such third party for the transfer or disposition of such LICENSED PRODUCT to the third
                                         party. If a LICENSED PRODUCT is SOLD by LICENSEE, a sublicensee, or an AFFILIATE of either,
                                         to a distributor in which LICENSEE, any sublicensee or an AFFILIATE of either has any
                                         economic interest, including but not limited to equity or debt, or with which any of
                                         them have any other agreement, then any SALE by such distributor shall be deemed to be
                                         a SALE by such LICENSEE, sublicensee or AFFILIATE for purposes of this AGREEMENT.

 

	2.9	PATENT
                                         RIGHTS means BOARD’s and LICENSOR’s rights in the information or discoveries
                                         described in invention disclosures, or claimed in any patents and/or patent applications,
                                         whether domestic or foreign, as identified in Exhibit 1 attached hereto, and all divisionals,
                                         continuations, continuations-in-part (to the extent the claims of such continuations-in-part
                                         are entitled to claim priority to the aforesaid patents and/or patent applications identified
                                         in Exhibit 1), reissues, reexaminations, extensions or foreign counterparts of the patents
                                         and/or patent applications identified in Exhibit 1, and any letters patent, domestic
                                         or foreign that issue thereon.

 

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	2.10	REGULATORY
                                         APPROVAL means the approval required by the United States Food and Drug Administration
                                         (“FDA”) in the United States (or the equivalent regulatory agency or governmental
                                         authority for any country other than the United States) to market and sell a LICENSED
                                         PRODUCT for human use in the applicable country.
	 	 

	2.11	REGULATORY
                                         APPROVAL FILING means the filing or submission to the FDA (or equivalent regulatory
                                         agency or governmental authority for a country other than the United States) necessary
                                         to get REGULATORY APPROVAL to market and sell a LICENSED PRODUCT for human use in the
                                         applicable country, including, but not limited to, an IDE, 510K or IND application filed
                                         with/submitted to the FDA in the United States, or an equivalent filing or submission
                                         to an equivalent regulatory agency or governmental authority for a country other than
                                         the United States. For clarity, “REGULATORY APPROVAL FILING” means the filing
                                         or submission itself, and does not mean the actual approval which may ultimately be granted
                                         by the regulatory agency or governmental authority to actually market and sell a LICENSED
                                         PRODUCT for human use.
	 	 

	2.12	ROYALTY
                                         EXPIRATION DATE means the date that all patents within the PATENT RIGHTS have expired
                                         and all patent applications within the PATENT RIGHTS have been cancelled, withdrawn or
                                         expressly abandoned.

 

	2.13	SALE
                                         or SOLD means the transfer or disposition
                                         of a LICENSED PRODUCT for value to a party other than LICENSEE or a ROYALTY-FREE PRACTITIONER.
                                         As used herein, “ROYALTY-FREE PRACTITIONER” means UTMDACC and the following
                                         individuals: Issam I. Raad, M.D. and Hend Hanna, M.D. (“PHYSICIAN INVENTORS”),
                                         and any partner or associate who practices medicine with one or more of the PHYSICIAN
                                         INVENTORS, but with respect to such partner or associate, only for such time as he/she
                                         is engaged in a bona fide medical practice with one or more of the PHYSICIAN INVENTORS.
                                         Notwithstanding the foregoing, the term “SALE” or “SOLD” shall
                                         not include transfers or dispositions of LICENSED PRODUCTS to third parties for no or
                                         nominal consideration in order to perform such clinical trials as are reasonably required
                                         to obtain the regulatory approval necessary to sell a LICENSED PRODUCT. In addition,
                                         the term “SALE” or “SOLD” shall not include transfer or disposition
                                         of a LICENSED PRODUCT for value to a sublicensee or AFFILIATE, unless the sublicensee
                                         or AFFILIATE is the end user of such LICENSED PRODUCT.

 

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	2.14	SUBLICENSING
                                         CONSIDERATION means all consideration (unless specifically excepted, below) received
                                         by LICENSEE from any sublicensee in consideration of a sublicense pursuant to Section
                                         3.3 hereinbelow, including but not limited to, up-front payments, marketing, distribution,
                                         franchise, option, license, or documentation fees, assignment fees, bonus fees, equity,
                                         and milestone payments for milestones other than those milestones requiring a payment
                                         under Section 4.1(f) herein. SUBLICENSING CONSIDERATION shall not include patent fees
                                         paid by a sublicensee to LICENSEE as reimbursement for specific, identified patent expenses
                                         previously paid, or to be paid, by LICENSEE to LICENSOR or UTMDACC pursuant to an invoice
                                         sent to LICENSEE in accordance with Section 4.1(a), below, provided that LICENSEE has
                                         paid the amount owing under such invoice. In addition, SUBLICENSING CONSIDERATION shall
                                         not include funds paid by a sublicensee for future research to be performed by LICENSEE
                                         relating to LICENSED SUBJECT MATTER if: (a) the respective sublicense agreement expressly
                                         states that such funds are for research covering the LICENSED SUBJECT MATTER to be performed
                                         by LICENSEE after the actual date of signatory execution of the sublicense agreement;
                                         and (b) LICENSEE does in fact perform such research after execution of, and in accordance
                                         with, the sublicense agreement. For the avoidance of doubt, LICENSEE shall not deduct
                                         from SUBLICENSING CONSIDERATION: (1) any amounts received from a sublicensee as reimbursement
                                         or recoupment of research expenses incurred by LICENSEE before the actual date of full
                                         execution of the sublicense agreement by all parties thereto; (2) any overhead or indirect
                                         costs for research described in subparts (a) and (b) above; or (3) any payments by a
                                         sublicensee for LICENSEE’s achievement of research or similar milestone events.
                                         Notwithstanding anything in this Agreement to the contrary, SUBLICENSING CONSIDERATION
                                         will exclude any royalty revenue and other payments made to LICENSEE based on SALES.

 

		2.15	TECHNOLOGY
                                         RIGHTS means BOARD’s and LICENSOR’s rights in any technical information, know-how,
                                         processes, procedures, compositions, devices, methods, formulae, protocols, techniques,
                                         software, designs, drawings or data created by the inventor(s) listed in Exhibit 1 at
                                         UTMDACC before the EFFECTIVE DATE, which are not claimed in PATENT RIGHTS but that are
                                         necessary for practicing PATENT RIGHTS.

 

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	2.16	VALID
                                         CLAIM means a claim of: (a) any issued, unexpired patent that has not been withdrawn,
                                         abandoned, canceled or disclaimed, or revoked or held unenforceable or invalid by a decision
                                         of a court or governmental agency of competent jurisdiction from which no appeal can
                                         be taken, or with respect to which an appeal is not taken within the time allowed for
                                         appeal, and that has not been disclaimed or admitted to be invalid or unenforceable through
                                         reissue, disclaimer or otherwise; or (b) any pending patent application that that has
                                         not been cancelled, withdrawn, abandoned or finally disallowed without the possibility
                                         of appeal or refilling, and that has not been pending for more than ten (10) years from
                                         the application’s file date. For purposes of clarification, if a claim in an application
                                         has been pending for more than ten (10) years from the application’s file date,
                                         and a patent subsequently issues on such application containing such claim, then upon
                                         the earlier of allowance of the claim (or issuance of the patent containing such claim,
                                         the claim shall thereafter be considered a VALID CLAIM.

 

III.
LICENSE

 

		3.1	LICENSOR
                                         hereby grants to LICENSEE a royalty-bearing, exclusive license under LICENSED SUBJECT
                                         MATTER to manufacture, have manufactured, use, import, offer to sell and/or sell LICENSED
                                         PRODUCTS within the LICENSED TERRITORY for use within LICENSED FIELD. This grant
                                         is subject to the payment by LICENSEE to LICENSOR of all consideration as provided herein
                                         (on the due date, or prior to the expiration of any cure period, if applicable), and
                                         is further subject to the following rights retained by BOARD and UTMDACC to:

 

		(a)	Publish
                                         the general scientific findings from research related to LICENSED SUBJECT MATTER, subject
                                         to the terms of ARTICLE XI–Confidential Information and Publication; and

 

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		(b)	Use
                                         LICENSED SUBJECT MATTER for research, teaching, patient care, and other academically-related
                                         purposes; and

 

		(c)	Transfer
                                         LICENSED SUBJECT MATTER to academic or research institutions for non-commercial research
                                         use.

 

		

                                                                                3.2
	LICENSEE
                                         may extend the license granted herein to any AFFILIATE provided that the AFFILIATE consents
                                         in writing to be bound by this AGREEMENT to the same extent as LICENSEE. LICENSEE agrees
                                         to deliver such contract to LICENSOR within thirty (30) calendar days following execution
                                         thereof.

 

		3.3	LICENSEE
                                         may grant sublicenses under LICENSED SUBJECT MATTER consistent with the terms of this
                                         AGREEMENT, provided that LICENSEE shall use all commercially reasonable efforts to diligently
                                         enforce the sublicenses including, but not limited to, collecting all amounts due LICENSEE
                                         from sublicensees and taking all commercially reasonable steps to terminate any sublicense
                                         in which the sublicensee is in default on any payments owed or any other material obligations
                                         existing thereunder. If a sublicensee pursuant hereto becomes bankrupt, insolvent or
                                         is placed in the hands of a receiver or trustee, LICENSEE, to the extent allowed under
                                         applicable law and in a timely manner, agrees to use its commercially reasonable efforts
                                         to collect all consideration owed to LICENSEE and to have the sublicense agreement confirmed
                                         or rejected by a court of proper jurisdiction.

 

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		3.4	LICENSEE
                                         must deliver to LICENSOR a true and correct copy of each sublicense granted by LICENSEE,
                                         and any modification or termination thereof, within thirty (30) calendar days after execution,
                                         modification, or termination.

 

		3.5	If
                                         this AGREEMENT is terminated pursuant to ARTICLE XIII-Term and Termination, LICENSOR
                                         agrees to accept as successors to LICENSEE, existing sublicensees in good standing at
                                         the date of termination provided that each such sublicensee consents in writing to be
                                         bound by all of the terms and conditions of the SYSTEM LICENSE AGREEMENT.

 

IV.
LICENSE CONSIDERATION, PAYMENTS AND REPORTS

 

		4.1	In
                                         consideration of rights granted by LICENSOR to LICENSEE under this AGREEMENT, LICENSEE
                                         agrees to pay LICENSOR the following:

 

		(a)	All
                                         out-of-pocket expenses LICENSOR is required to pay to or on behalf of UTMDACC in filing,
                                         prosecuting, enforcing and maintaining PATENT RIGHTS, and all such future expenses paid
                                         to or on behalf of UTMDACC, for so long as, and in such countries as this AGREEMENT remains
                                         in effect (“PATENT EXPENSES”). LICENSOR will invoice LICENSEE after the AGREEMENT
                                         has been fully executed by all parties for expenses incurred as of that time and on a
                                         quarterly basis thereafter. The invoiced amounts will be due and payable by LICENSEE
                                         within thirty (30) calendar days of the receipt of the invoice. Upon written request,
                                         LICENSOR shall provide LICENSEE with documentation of out-of-pocket expenses with respect
                                         to a particular invoice or invoices. Notwithstanding the foregoing, in the event that
                                         there are multiple licensees of an issued patent or a proposed or pending patent application
                                         within the PATENT RIGHTS (i.e., additional licensees to such patent or such proposed
                                         or pending patent application in other fields of use), then LICENSEE shall be obligated
                                         to pay only a pro rata share of the PATENT EXPENSES attributable to that patent or proposed
                                         or pending patent application. The pro rata share shall be calculated based on the total
                                         amount of PATENT EXPENSES attributable to that issued patent or proposed or pending patent
                                         application divided by the total number of licensees with active licenses to the patent
                                         or the proposed or pending patent application. At the time LICENSEE is sent an invoice
                                         for PATENT EXPENSES, LICENSOR shall notify LICENSEE of the total number of active licensees
                                         to such patents or proposed or pending patent applications for which such PATENT EXPENSES
                                         were incurred and shall specify the pro rata amount owed by LICENSEE for each, as applicable.
                                         In the event additional licensees to a patent or a proposed or pending patent application
                                         are added after LICENSEE has paid an invoice, LICENSEE shall not be entitled to a refund
                                         of any past payments for PATENT EXPENSES. However, the pro rata amount of prospective
                                         payments due to LICENSOR by LICENSEE for PATENT EXPENSES attributable to a patent or
                                         a proposed or pending patent application under this AGREEMENT shall be adjusted to reflect
                                         the total number of licensees with active licenses to such patent or proposed or pending
                                         patent application. It is understood and agreed that in the event that a license to an
                                         additional licensee is terminated, LICENSEE’s pro rata share of PATENT EXPENSES
                                         will increase, and shall be calculated based on the total unpaid amount owed to LICENSOR
                                         for PATENT EXPENSES attributable to that patent or patent application divided by the
                                         total number of licensees with active licenses to such patent or patent application.
                                         For clarity, if LICENSEE is the only licensee of a patent or a proposed or pending patent
                                         application within the PATENT RIGHTS, LICENSEE shall be responsible for all PATENT EXPENSES
                                         attributable to such patent or proposed or pending patent application; and

 

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		(b)	A
                                         nonrefundable license fee in the amount of $325,000. This fee will not reduce the amount
                                         of any other payment provided for in this ARTICLE IV, and is due and payable (with invoice)
                                         within thirty (30) calendar days after the AGREEMENT has been fully executed by all parties.
                                         This license fee is not subject to the forty-five (45) day cure period set forth in Section
                                         13.4(b); and

 

		(c)	The
                                         following nonrefundable annual maintenance fees (“Annual Maintenance Fee(s)”)
                                         due and payable (without invoice) within thirty (30) calendar days of the applicable
                                         anniversary of the EFFECTIVE DATE until the first SALE as follows:

 

		(1)	$30,000
                                         due and payable within thirty (30) calendar days of the first anniversary of the EFFECTIVE
                                         DATE; and

 

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		(2)	$45,000
                                         due and payable within thirty (30) calendar days of the second anniversary of the EFFECTIVE
                                         DATE; and

 

		(3)	$50,000
                                         due and payable within thirty (30) calendar days of the third anniversary of the EFFECTIVE
                                         DATE; and

 

		(4)	$75,000
                                         due and payable within thirty (30) calendar days of the fourth anniversary of the EFFECTIVE
                                         DATE; and

 

		(5)	$90,000
                                         due and payable within thirty (30) calendar days of the fifth and each subsequent anniversary
                                         of the EFFECTIVE DATE until the first SALE; and

 

		(6)	for
                                         the year in which the first SALE occurs, a pro-rated portion of the Annual Maintenance
                                         Fee will be paid within thirty (30) calendar days of SALE which equals the percentage
                                         of the year remaining when the first SALE occurs multiplied by $90,000; provided that
                                         this final Annual Maintenance Fee will be credited against running royalties; and

 

		(d)	A
                                         running royalty on NET SALES of LICENSED PRODUCTS, said royalty rate being calculated
                                         as follows on a per annum basis. As used in this Section 4.1(d), “per annum”
                                         means per each one year period commencing on each anniversary of the EFFECTIVE DATE:

 

		(1)	For LICENSED PRODUCTS, the royalty rate shall be [*]% of NET SALES of LICENSED

                                                                                PRODUCTS.

 

 

[*] Confidential treatment requested; certain information omitted
and filed separately with the SEC.

 

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		(2)	In
                                         the event a LICENSED PRODUCT sold in the United States is not covered by a VALID CLAIM
                                         in the United States at the time of SALE, then LICENSEE may reduce the royalty rates
                                         specified in subsection (1) above from [*]% of NET SALES to [*]% of NET SALES of LICENSED
                                         PRODUCTS.

 

		(3)	In
                                         the event a LICENSED PRODUCT sold in a country other than the United States is not covered
                                         by a VALID CLAIM in such country of SALE at the time of such SALE, then LICENSEE may
                                         reduce the royalty rates specified in subsection (1) above from [*]% of NET SALES to
                                         [*]% of NET SALES of LICENSED PRODUCTS.

 

		(4)	In
                                         addition, with respect to NET SALES of LICENSED PRODUCTS that are not covered by a VALID
                                         CLAIM in the country of SALE at the time of SALE, if an unrelated third party (e.g.,
                                         an independent third party who is not a sublicensee of or otherwise authorized by LICENSEE,
                                         any AFFILIATE, sublicensee or other entity owned or controlled by LICENSEE to make such
                                         SALE) is selling a competing product in that country that is the same or substantially
                                         the same as the LICENSED PRODUCT being sold by LICENSEE in such country and such unrelated
                                         third party sales of the competing product in that country accounts for [*] percent ([*]%)
                                         or more of aggregate sales of the LICENSED PRODUCT and competing product in such country
                                         in the preceding six (6) month period, then the running royalty in such country for such
                                         LICENSED PRODUCT shall thereafter be reduced to [*]% of NET SALES for so long as no VALID
                                         CLAIM exists, and such third party competition persists, in such country.

 

 

[*] Confidential treatment requested; certain information omitted
and filed separately with the SEC.

 

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		(e)	After
                                         the first SALE of any LICENSED PRODUCT, minimum aggregate annual royalties (“Minimum
                                         Annual Royalty”) due and payable (without invoice) within thirty (30) calendar
                                         days of the first and subsequent anniversaries of the EFFECTIVE DATE which follow the
                                         first SALE as follows:

 

		(1)	$100,000
                                         due and payable within thirty (30) calendar days of the first anniversary of the EFFECTIVE
                                         DATE which follows the first SALE, provided, however, that in the event that there is
                                         less than a twelve (12) month period between the first SALE, and the first anniversary
                                         of the EFFECTIVE DATE which follows the first SALE, then LICENSEE shall pay the following
                                         as the Minimum Annual Royalty on the first anniversary of the EFFECTIVE DATE which follows
                                         the first SALE: (1) the Annual Maintenance Fee due for that year multiplied by the fraction,
                                         A/C, where A is the number of months between the anniversary of the EFFECTIVE DATE preceding
                                         the first SALE, and the first SALE, and C is twelve (12); and (2) the Minimum Annual
                                         Royalty multiplied by the fraction, B/C, where B is the number of months between the
                                         first SALE, and the first anniversary of the EFFECTIVE DATE which follows the first SALE,
                                         C is twelve (12), and A + B = twelve (12); and

 

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		(2)	Thereafter,
                                         Minimum Annual Royalty shall increase by $25,000 per year up to a maximum of $150,000
                                         (i.e., $125,000 shall be due and payable within thirty (30) calendar days of the second
                                         anniversary of the EFFECTIVE DATE which follows the first SALE; $150,000 shall be due
                                         and payable within thirty (30) calendar days of the third anniversary of the EFFECTIVE
                                         DATE which follows the first SALE, and every anniversary occurring thereafter.

 

Payments
actually made to LICENSOR for running royalties accruing during the one year period preceding an anniversary of the EFFECTIVE
DATE pursuant to Sections 4.1(d) and 4.1(i) may be credited against the Minimum Annual Royalty due on that anniversary date; and

 

		(f)	The
                                         following milestone payments, due and payable one time for the first achievement of each
                                         milestone for each INDIVIDUAL PRODUCT, regardless of whether the milestone is achieved
                                         by LICENSEE, a sublicensee or AFFILIATE and regardless of whether such milestone is subsequently
                                         achieved multiple times for an INDIVIDUAL PRODUCT:

 

		(1)	Acceptance
                                         by the FDA of a REGULATORY APPROVAL FILING submitted by LICENSEE, its AFFILIATES or SUBLICENSEES:
                                         $[*];

 

 

[*] Confidential treatment requested; certain information omitted
and filed separately with the SEC.

 

    13

     

    

 

		(2)	first
                                         SALE of a LICENSED PRODUCT by LICENSEE, its AFFILIATES or SUBLICENSEES in the United
                                         States following REGULATORY APPROVAL: $[*]

 

		(3)	cumulative
                                         NET SALES of a LICENSED PRODUCT in the U.S. exceed $[*]: [*]

 

		(4)	REGULATORY
                                         APPROVAL in Japan with respect to REGULATORY APPROVAL FILING submitted by LICENSEE, its
                                         AFFILIATES or SUBLICENSEES: $[*];

 

		(5)	REGULATORY
                                         APPROVAL in EMEA with respect to REGULATORY APPROVAL FILING submitted by LICENSEE, its
                                         AFFILIATES or SUBLICENSEES: $[*]; and

 

		(6)	REGULATORY
                                         APPROVAL in any one of the following: Canada, Australia, India, China, Taiwan, South
                                         Korea, Brazil or Russian, with respect to REGULATORY APPROVAL FILING submitted by LICENSEE,
                                         its AFFILIATES or SUBLICENSEES: $[*]

 

		(7)	cumulative
                                         NET SALES of LICENSED PRODUCTs exceed $[*]: $[*]

 

 

[*] Confidential treatment requested; certain information omitted
and filed separately with the SEC.

 

    14

     

    

 

		(8)	cumulative
                                         NET SALES of LICENSED PRODUCTs exceed $[*]: $[*]

 

Each
of the foregoing milestone payments shall be made within thirty (30) calendar days of achievement of the applicable milestone.
LICENSEE shall specify with each milestone payment the applicable milestone to which the payment pertains. The foregoing milestone
payments shall not reduce the amount of any other payment provided for in this ARTICLE IV; and

 

		(g)	The
                                         following percentages of all SUBLICENSING CONSIDERATION, as defined above, will be calculated
                                         based on the status of REGULATORY APPROVAL and/or SALE of LICENSED PRODUCTS for which
                                         the SUBLICENSING CONSIDERATION is paid:

 

		(1)	[*]%
                                         of all SUBLICENSING CONSIDERATION received for United States rights on or after the EFFECTIVE
                                         DATE but prior to the earlier of: (a) the first acceptance of a REGULATORY APPROVAL FILING
                                         in the United States by the applicable regulatory agency or governmental authority for
                                         a LICENSED PRODUCT; or (b) the first SALE of a LICENSED PRODUCT in the United States;
                                         and

 

		(2)	[*]%
                                         of all SUBLICENSING CONSIDERATION received for United States rights on or after the earlier
                                         of: (a) the first acceptance of a REGULATORY APPROVAL FILING in the United States by
                                         the applicable regulatory agency or governmental authority for a LICENSED PRODUCT; or
                                         (b) the first SALE of a LICENSED PRODUCT in the United States; and

 

 

[*] Confidential treatment requested; certain information omitted
and filed separately with the SEC.

 

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		(3)	[*]%
                                         of all SUBLICENSING CONSIDERATION received for rights outside the United States on or
                                         after the EFFECTIVE DATE but prior to the earlier of: (a) the first acceptance of a REGULATORY
                                         APPROVAL FILING outside the United States by the applicable regulatory agency or governmental
                                         authority for a LICENSED PRODUCT; (b) the first SALE of a LICENSED PRODUCT outside the
                                         United States or (c) 18 months from the Effective Date; and

 

		(4)	[*]%
                                         of all SUBLICENSING CONSIDERATION received for rights outside the United States on or
                                         after the earlier of: (a) the first acceptance of a REGULATORY APPROVAL FILING outside
                                         the United States by the applicable regulatory agency or governmental authority for a
                                         LICENSED PRODUCT; (b) the first SALE of a LICENSED PRODUCT outside the United States
                                         or (c) 18 months from the Effective Date; and

 

		(h)	a
                                         one-time Assignment Fee (in consideration for LICENSOR allowing the assignment), due
                                         and payable prior to any permitted assignment of this AGREEMENT pursuant to Section 12.1
                                         below, in the amount of $[*]. Nothing in this Section 4.1(h) shall be construed as relieving
                                         LICENSEE of
its obligations under Section 12.1, below, to obtain any necessary consent prior to assignment; and

 

 

[*] Confidential treatment requested; certain information omitted
and filed separately with the SEC.

 

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		4.2	Unless
                                         otherwise provided, all such payments are payable (without invoice) within thirty (30)
                                         calendar days after March 31, June 30, September 30, and December 31 of each year during
                                         the term of this AGREEMENT, at which time LICENSEE will also deliver to LICENSOR a true
                                         and accurate report, giving such particulars of the business conducted by LICENSEE, its
                                         AFFILIATES and its sublicensees, if any exist, during the preceding three (3) calendar
                                         months under this AGREEMENT as necessary for LICENSOR to account for LICENSEE’s payments
                                         hereunder. This report will include pertinent data required to calculate the payments
                                         owed hereunder, including, but not limited to:

 

		(a)	the
                                         accounting methodologies used to account for and calculate the items included in the
                                         report and any differences in such accounting methodologies used by LICENSEE since the
                                         previous report; and

 

		(b)	a
                                         list of LICENSED PRODUCTS produced for the three (3) preceding calendar months categorized
                                         by the INDIVIDUAL PRODUCT and country of sale; and

 

		(c)	the
                                         total quantities of LICENSED PRODUCTS, itemized by the categories listed in Section 4.2(b);
                                         and

 

		(d)	the
                                         total SALES, itemized by the categories listed in Section 4.2(b), and the calculation
                                         of NET SALES, showing the gross revenues and all deductions; and

 

 

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		(e)	the
                                         royalties computed and due LICENSOR, itemized by the categories listed in Section 4.2(b),
                                         and/or minimum royalties; and

 

		(f)	all
                                         consideration received from each sublicensee or assignee, itemized by the categories
                                         listed in Section 4.2(b) to the extent applicable, and the calculation of all payments
                                         due LICENSOR; and

 

		(g)	all
                                         other amounts due LICENSOR herein, and an explanation as to how such amounts were calculated.

 

Simultaneously
with the delivery of each such report, LICENSEE agrees to pay LICENSOR the amount due, if any, for the period of such report.
These reports are required after the first SALE or first receipt of consideration from a sublicensee or assignee, even if no payments
are due. In addition, upon written request from LICENSOR, LICENSEE shall provide such quarterly reports prior to the first SALE.

 

		4.3	During
                                         the term of this AGREEMENT and for one (1) year thereafter, LICENSEE agrees to keep complete
                                         and accurate records of its and its AFFILIATES’ SALES and NET SALES, SUBLICENSING CONSIDERATION
                                         and its sublicensees’ SALES and NET SALES, in sufficient detail to enable the royalties
                                         and other payments due hereunder to be determined. LICENSEE agrees to permit LICENSOR
                                         or its representatives, at LICENSOR ’s expense, to examine LICENSEE’s books, ledgers,
                                         and records during regular business hours, and upon reasonable notice, for the purpose
                                         of and to the extent necessary to verify any report required under this AGREEMENT. Such
                                         examination shall be conducted no more frequently than once every twelve (12) months.
                                         If any amounts due LICENSOR are determined to have been underpaid in an amount equal
                                         to or greater than five percent (5%) of the total amount due during the period so examined,
                                         then LICENSEE will pay the cost of the examination plus accrued interest at the highest
                                         allowable rate.

 

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		4.4	Within
                                         thirty (30) calendar days following each anniversary of the EFFECTIVE DATE, LICENSEE
                                         will deliver to LICENSOR a written progress report as to LICENSEE’s (and any sublicensee’s)
                                         efforts and accomplishments during the preceding year in diligently commercializing LICENSED
                                         SUBJECT MATTER in the LICENSED TERRITORY and LICENSEE’s (and sublicensees’) commercialization
                                         plans for the upcoming year.

 

		4.5	All
                                         amounts payable hereunder by LICENSEE will be paid in United States funds without deductions
                                         for taxes, assessments, fees, or charges of any kind.

 

V.
RESEARCH

 

		5.1	LICENSOR
                                         will provide research services in the form of: (i) review and comment on the candidates
                                         for the Phase III clinical studies sponsored by LICENSEE for a Licensed Product (the
                                         “STUDIES”), (ii) consultation with regard to the conduct of the STUDIES and
                                         (iii) reviewing and providing comments and supplementary analysis of the results of the
                                         STUDIES (collectively, the “SERVICES”). As consideration for the performance
                                         of the SERVICES, LICENSEE will pay LICENSOR (i) $50,000.00 within thirty (30) days of
                                         the EFFECTIVE DATE; and (ii) $1,300.00 per patient enrolled in the STUDIES for which
                                         SERVICES are provided after the date hereof, up to a maximum of $450,000.00 The amount
                                         due per patient shall be determined and paid on July 1 and December 31 of each year.
                                         LICENSEE will provide LICENSOR the opportunity to provide the SERVICES with respect to
                                         all patients enrolled in the STUDIES after the date hereof. If the STUDIES are interrupted
                                         or halted for any reason, and then later restarted or alternative STUDIES are commenced,
                                         the payments shall immediately resume for the SERVICES provided. For the avoidance of
                                         doubt, no fees shall be due for any STUDY for which LICENSOR does not provide SERVICES.
                                         If LICENSEE breaches any of the foregoing payment obligations, and such breach is not
                                         cured within forty-five (45) days of receiving notice of such breach from LICENSOR, then
                                         LICENSOR may immediately terminate this AGREEMENT by giving written notice to LICENSEE.

 

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LICENSEE
has expressed an interest in possibly licensing additional anti-microbial technologies that LICENSOR has licensed under the SYSTEM
LICENSE AGREEMENT. Any funds provided to LICENSOR pursuant to this Section that are not used to furnish the SERVICES related to
the STUDIES shall be used by LICENSOR to conduct research on such other technologies. Provided, however, LICENSEE shall not be
deemed to have any rights with respect to such technologies or potential license.

 

VI.
PATENTS AND INVENTIONS

 

		6.1	The
                                         SYSTEM LICENSE grants UTMDACC the power to prosecute, and maintain the PATENT RIGHTS.
                                         LICENSOR will take reasonable action to require UTTMDACC to prosecute and maintain the
                                         PATENT RIGHTS pursuant to the SYSTEM LICENSE. LICENSEE will pay the out-of-pocket costs
                                         of searching, preparing, filing, prosecuting and maintaining patents and patent applications
                                         within the PATENT RIGHTS in accordance with Section 4.1(a), above. If LICENSEE notifies
                                         LICENSOR that it does not intend to pay the cost of filing, prosecuting or maintaining
                                         a patent application or patent included in the PATENT RIGHTS, or if LICENSEE fails to
                                         promptly confirm its intent to pay the cost of filing, prosecuting or maintaining a patent
                                         application or patent included in the PATENT RIGHTS upon inquiry from LICENSOR, or if
                                         LICENSEE is in arrears on any expense payments due under Section 4.1(a), then LICENSOR
                                         may elect to file, not file, continue prosecution or maintenance, or abandon such patent
                                         application or patent at its own expense without further notice to LICENSEE. In the event
                                         LICENSOR files or continues prosecution or maintenance of such patent application or
                                         patent at its expense, then LICENSEE’s rights to such patent application or patent
                                         under this AGREEMENT shall terminate in its entirety. With respect to those patent applications
                                         for which LICENSEE is paying costs (e.g., costs of preparation, filing and prosecution),
                                         LICENSOR will instruct its patent prosecution counsel to: provide LICENSEE with a copy
                                         of such patent application and all material documents received or filed during prosecution
                                         thereof; and provide copies of all material documents prepared by patent prosecution
                                         counsel for submission to governmental patent offices to LICENSEE for review and comment
                                         prior to filing, to the extent practicable under the circumstances. LICENSEE may at its
                                         own cost, provide comments to LICENSOR as to wording of claims, and responses to office
                                         actions prior to their submission to the appropriate patent office. LICENSOR shall consider
                                         comments made by LICENSEE regarding prosecution of the PATENT RIGHTS in good faith, but
                                         shall not be required to implement them. The parties agree that they share a common legal
                                         interest to get valid enforceable patents and that LICENSEE will keep all privileged
                                         information received pursuant to this Section confidential. LICENSOR agrees that to the
                                         extent UTMDACC controls the filings, prosecution or maintenance of patents and patent
                                         applications included in the PATENT RIGHTS, LICENSOR will be responsible for ensuring
                                         UTMDACC complies with the provisions of this Section applicable to such patents and patent
                                         applications.

 

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VII.
INFRINGEMENT BY THIRD PARTIES

 

		7.1	LICENSEE,
                                         at its expense, shall have the first option to enforce LICENSOR’s rights in any
                                         patent exclusively licensed hereunder against infringement by third parties in the LICENSED
                                         FIELD and is entitled to retain recovery from such enforcement. After reimbursement of
                                         LICENSEE’s reasonable legal costs and expenses related to such recovery, LICENSEE
                                         agrees to pay LICENSOR 20% of any recovery (whether the award is for lost profits, a
                                         reasonable royalty, or another measure of damages). LICENSEE must notify LICENSOR in
                                         writing of any potential infringement in the LICENSED FIELD within thirty (30) calendar
                                         days of knowledge thereof. If LICENSEE does not file suit against a substantial infringer
                                         of an exclusively licensed patent in the LICENSED FIELD (or otherwise cause such substantial
                                         infringer to cease all infringing activities to LICENSOR’s reasonable satisfaction)
                                         within six (6) months of knowledge thereof, then LICENSOR may, at its sole discretion,
                                         enforce any patent licensed hereunder on behalf of itself and LICENSEE, with LICENSOR
                                         retaining 80% all recoveries from such enforcement and paying 20% to LICENSEE.

 

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		7.2	In
                                         any suit or dispute involving an infringer pursuant to Section 7.1, the parties agree
                                         to cooperate fully with each other. At the request and expense of the party bringing
                                         suit, the other party will permit access during regular business hours, to all relevant
                                         personnel, records, papers, information, samples, specimens, and the like in its possession.

 

VIII.
PATENT MARKING

 

		8.1	LICENSEE
                                         agrees that all packaging containing individual LICENSED PRODUCT(S), documentation therefor,
                                         and, when possible, actual LICENSED PRODUCT(S) sold by LICENSEE, AFFILIATES, and/or sublicensees
                                         of LICENSEE will be appropriately marked with the number of any applicable patent(s)
                                         licensed hereunder in accordance with each country’s patent laws, including Title 35,
                                         United States Code, to the extent such marking is necessary or required to fully preserve
                                         PATENT RIGHTS in each such country.

 

IX.
INDEMNIFICATION, INSURANCE AND REPRESENTATIONS AND WARRANTIES

 

		9.1	LICENSEE
                                         agrees to hold harmless and indemnify LICENSOR, its officers, employees, directors and
                                         agents from and against any claims, demands, or causes of action whatsoever, costs of
                                         suit and reasonable attorney’s fees, including without limitation, those arising
                                         under the SYSTEM LICENSE and those costs arising on account of any injury or death of
                                         persons or damage to property caused by, or arising out of, or resulting from, the exercise
                                         or practice of the rights granted hereunder by LICENSEE, its SUBLICENSEES, its AFFILIATES
                                         or any of their officers, employees, agents or representatives, provided however that
                                         the following is excluded from LICENSEE’s obligation to indemnify and hold harmless:
                                         (a) the negligent failure of LICENSEE to substantially comply with any applicable governmental
                                         requirements; (b) the negligence or willful malfeasance by LICENSEE, its officers, agents,
                                         directors or employees; (c) licenses, research agreements, evaluation agreements, material
                                         transfer agreements, confidentiality agreements, inter-institutional agreements and other
                                         agreements entered into by LICENSOR, the BOARD or UTMDACC that relate to the LICENSED
                                         SUBJECT MATTER, PATENT RIGHTS TECHNOLOGY RIGHTS and/or antimicrobial/antiseptic/antibacterial
                                         devices, compositions and processes created by Dr. Raad, individually and with others;
                                         (d) Great Lakes Pharmaceuticals, Inc; or (e) any breach of its representations warranties
                                         or covenants herein.

 

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		9.2	LICENSOR
                                         agrees to hold harmless and indemnify LICENSEE, its officers, employees, directors and
                                         agents from and against any claims, demands, or causes of action whatsoever, costs of
                                         suit and reasonable attorney’s fees, including without limitation, those costs
                                         arising on account of any injury or death of persons or damage to property caused by,
                                         or arising out of, or resulting from (i) licenses, research agreements, evaluation and
                                         material transfer agreements, material transfer agreements, confidentiality agreements,
                                         inter-institutional agreements and other agreements entered into by LICENSOR, the BOARD
                                         or UTMDACC that relate to the LICENSED SUBJECT MATTER, PATENT RIGHTS TECHNOLOGY RIGHTS
                                         and/or antimicrobial/antiseptic/antibacterial devices, compositions and processes created
                                         by Dr. Raad, individually and with others; (ii) Great Lakes Pharmaceuticals, Inc or (iii)
                                         any breach of its representations warranties or covenants herein.

 

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		9.3	IN
                                         NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INDIRECT, SPECIAL, CONSEQUENTIAL OR PUNITIVE
                                         DAMAGES (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF PROFITS OR EXPECTED SAVINGS
                                         OR OTHER ECONOMIC LOSSES, OR FOR INJURY TO PERSONS OR PROPERTY) ARISING OUT OF, OR IN
                                         CONNECTION WITH, THIS AGREEMENT OR ITS SUBJECT MATTER, REGARDLESS OF WHETHER EITHER PARTY
                                         KNOWS OR SHOULD KNOW OF THE POSSIBILITY OF SUCH DAMAGES. THE FOREGOING LIMITATION SHALL
                                         NOT LIMIT LICENSEE’S OBLIGATIONS UNDER SECTION 9.1 WITH RESPECT TO CLAIMS, DEMANDS
                                         AND CAUSES OF ACTION ARISING WITH RESPECT TO THE SYSTEM LICENSE.

 

	9.4	Beginning
                                         at the time when any LICENSED SUBJECT MATTER is being distributed or sold for use in
                                         or by humans (including for the purpose of obtaining regulatory approvals) by LICENSEE,
                                         an AFFILIATE, or by a sublicensee, LICENSEE (directly, or indirectly through a sublicensee)
                                         shall, at its sole cost and expense, procure and maintain commercial general liability
                                         insurance in amounts not less than $2,000,000 per incident and $5,000,000 annual aggregate,
                                         and LICENSEE shall use reasonable efforts to have the LICENSEE, the Board of Regents
                                         of the University of Texas System, the University of Texas System, the University of
                                         Texas M. D. Anderson Cancer Center, their Regents, officers, employees, students and
                                         agents, named as an additional insured. Such commercial general liability insurance shall
                                         provide: (i) product liability coverage; (ii) broad form contractual liability coverage
                                         for LICENSEE’s indemnification under this AGREEMENT; and (iii) coverage for litigation
                                         costs. The minimum amounts of insurance coverage required herein shall not be construed
                                         to create a limit of LICENSEE’s liability with respect to its indemnification under this
                                         AGREEMENT. For clarity, LICENSEE will have been deemed to comply with this Section 9.3
                                         if a sublicensee procures the insurance as described above on behalf of LICENSEE in full
                                         compliance with all the provisions of this Section.

 

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		9.5	LICENSEE
                                         shall provide LICENSOR with written evidence of such insurance within thirty (30) calendar
                                         days of its procurement. Additionally, LICENSEE shall provide LICENSOR with written notice
                                         of at least fifteen (15) calendar days prior to the cancellation, non-renewal or material
                                         change in such insurance.

 

		9.6	LICENSEE
                                         shall maintain such commercial general liability insurance beyond the expiration or termination
                                         of this AGREEMENT during: (i) the period that any LICENSED SUBJECT MATTER developed pursuant
                                         to this AGREEMENT is being commercially distributed or sold by LICENSEE, an AFFILIATE
                                         or by a sublicensee or agent of LICENSEE; and (ii) the five (5) year period immediately
                                         after such period.

 

		9.7	LICENSOR
                                         represents and warrants to LICENSEE that:

 

	 	(a)	it is a
limited liability company duly organized and subsisting under the laws of the State of Texas, with the corporate power to own
its assets and to carry on its business and has made all necessary filings under all applicable corporate, securities and taxation
laws or any other laws to which Licensor is subject;

 

    25

     

    

 

	 	(b)	it has the
power and authority and the legal right to enter into this Agreement and perform its obligations hereunder;

 

	 	(c)	it has taken
all necessary company action on its part required to authorize the execution and delivery of this Agreement;

 

	 	(d)	the entering
into and the delivery of this Agreement will not result in the violation of:

 

	 	(i)	any of the
provisions of the certificate of organization or operating of the LICENSOR;

 

	 	(ii)	any agreement
or other instrument to which the LICENSOR is a party or by which the LICENSOR is bound; or

 

	 	(iii)	any applicable
laws, rules or regulations;

 

		(e)	this Agreement
is a legal and valid obligation binding LICENSOR and is enforceable in accordance with its terms;

 

	 	(f)	it is the
owner with full right, power and authority to grant LICENSEE the rights and licenses granted to LICENSEE hereunder in accordance
with the terms and conditions of this Agreement;

 

	 	(g)	LICENSOR
has not previously licensed, assigned, transferred, or otherwise conveyed any right, title or interest in, to or under the LICENSED
SUBJECT MATTER; and the LICENSED SUBJECT MATTER is free and clear of any liens, charges, encumbrances or rights of others to possession
or use that would have the effect of preventing LICENSEE from exercising the rights and licenses granted to it hereunder; and

 

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	 	(h)	any underlying
agreements upon which LICENSOR relies for purposes of granting the rights and licenses to LICENSEE hereunder (true and complete
copies of which have been supplied to Company), including the SYSTEM LICENSE AGREEMENT, are in full force and effect in accordance
with their terms, and LICENSOR is not in breach thereof or default thereunder.

 

	 	9.8	LICENSOR
shall not amend or waive, or take any other action or commit any omission that would alter or affect, any of its rights under
the SYSTEM LICENSE AGREEMENT, in any manner that would materially adversely affect LICENSEE’s rights and benefits hereunder
or thereunder.

 

	 	9.9	Except as
expressly provided herein, LICENSOR disclaims all other warranties, express or implied, with respect to the LICENSED SUBJECT MATTER
or LICENSOR’S rights thereto.

 

X.
USE OF NAME

 

		10.1	LICENSEE
                                         will not use the name of (or the name of any employee of) UTMDACC, SYSTEM or BOARD in
                                         any advertising, promotional or sales literature, on its Web site, or for the purpose
                                         of raising capital without the advance express written consent of BOARD secured through:

 

The
University of Texas

M.
D. Anderson Cancer Center

Legal
Services, Unit 1674

P.O.
Box 301407

Houston,
TX 77230-1407

ATTENTION:
[*]

Email:
[*]

 

 

 

[*] Confidential treatment requested; certain information omitted
and filed separately with the SEC.

 

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Notwithstanding
the above, LICENSEE may use the name of (or name of employee of) UTMDACC, SYSTEM or BOARD in routine business correspondence,
or as needed in appropriate regulatory submissions without express written consent.

 

XI.
CONFIDENTIAL INFORMATION AND PUBLICATION

 

		11.1	LICENSOR
                                         and LICENSEE each agree that information disclosed in connection with an examination
                                         under Section 4.3 and all information contained in documents marked “confidential”
                                         and forwarded to one by the other (i) are to be received in strict confidence, (ii) are
                                         to be used only for the purposes of this AGREEMENT, and (iii) will not be disclosed by
                                         the recipient party (except as required by law or court order), its agents or employees
                                         without the prior written consent of the disclosing party, except to the extent that
                                         the recipient party can establish by competent written proof that such information:

 

		(a)	was
                                         in the public domain at the time of disclosure; or

 

		(b)	later
                                         became part of the public domain through no act or omission of the recipient party, its
                                         employees, agents, successors or assigns; or

 

		(c)	was
                                         lawfully disclosed to the recipient party by a third party having the right to disclose
                                         it; or

 

		(d)	was
                                         already known by the recipient party at the time of disclosure; or

 

		(e)	was
                                         independently developed by the recipient party without use of the disclosing party’s
                                         confidential information; or

 

		(f)	is
                                         required by law or regulation to be disclosed.

 

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		11.2	Each
                                         party’s obligation of confidence hereunder will be fulfilled by using at least
                                         the same degree of care with the disclosing party’s confidential information as it uses
                                         to protect its own confidential information, but always at least a reasonable degree
                                         of care. This obligation will exist while this AGREEMENT is in force and for a period
                                         of five (5) years thereafter.

 

		11.3	LICENSEE
                                         may disclose confidential information of LICENSOR, BOARD and/or UTMDACC to its sublicensees
                                         and potential sublicensees in accordance with Section 11.2, provided such recipient agrees
                                         in writing to keep such information confidential under obligations equivalent to or stricter
                                         than those agreed to by LICENSEE hereunder. The terms of this AGREEMENT (other than the
                                         identity of the parties and the LICENSED FIELD) shall be treated as confidential information
                                         of all parties, provided that LICENSEE may disclose the terms of this AGREEMENT to prospective
                                         sources of financing, investors, lenders, investment bankers and potential SUBLICENSEEs.
                                         Either party may disclose identity of the parties and the LICENSED FIELD to third parties.

 

XII.
ASSIGNMENT

 

		12.1	Except
                                         in connection with a merger or the sale or transfer of substantially all of LICENSEE’s
                                         assets relating to this Agreement to a third party, this AGREEMENT may not be assigned
                                         by LICENSEE, in whole or in part, without the prior written consent of LICENSOR, which
                                         consent will not be unreasonably withheld or delayed. For any assignment to be effective:
                                         (a) the LICENSEE must timely pay LICENSOR the Assignment Fee specified in Section 4.1;
                                         and (b) the assignee must assume in writing (a copy of which writing will be provided
                                         to LICENSOR) all of LICENSEE’s interests, rights, duties, and obligations under the AGREEMENT
                                         and agree to comply with all terms and conditions of the AGREEMENT as if the assignee
                                         were the original party (i.e., the LICENSEE) to the AGREEMENT.

 

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XIII.
TERM AND TERMINATION

 

		13.1	Subject
                                         to Sections 13.2, 13.3 and 13.4 hereinbelow, the term of this AGREEMENT is from the EFFECTIVE
                                         DATE until the ROYALTY EXPIRATION DATE. LICENSEE shall have no obligation under this
                                         AGREEMENT to pay royalties for NET SALES of LICENSED PRODUCTS occurring after the ROYALTY
                                         EXPIRATION DATE.

 

		13.2	LICENSOR
                                         shall have the right to terminate this AGREEMENT in its entirety upon thirty (30) calendar
                                         days prior written notice from LICENSOR to LICENSEE, if LICENSEE fails to achieve each
                                         of the following diligence milestones and provide evidence, reasonably satisfactory to
                                         LICENSOR, that each such milestone has been achieved by the due date:

 

		(a)	First
                                         SALE of a LICENSED PRODUCT on or before the earlier of (i) five years from the Effective
                                         Date or (ii) two years following receipt of the final report from a Pivotal Trial. “Pivotal
                                         Trial” means a human clinical trial intended to provide the substantial evidence
                                         of efficacy necessary to support the filing of n approvable NDA or PMA with the FDA;

 

		(b)	Initiation
                                         of a Pivotal Trial for a LICENSED PRODUCT within 18 months following LICENSEE’s
                                         receipt of the final report from the first human clinical trial conducted by LICENSEE
                                         involving the Licensed Product;

 

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		(c)	LICENSEE
                                         shall raise $7.5 Million in COMPANY FUNDING on or before the third anniversary of the
                                         EFFECTIVE DATE; and

 

		(d)	During
                                         each of the three years of the Agreement following the Effective Date, the cumulative
                                         direct and indirect costs and expenses (including overhead) incurred by LICENSEE and
                                         its AFFILIATES AND SUBLICENSEES on the research, development, manufacture and commercialization
                                         of Licensed Products will, equal or exceed the following amounts: (i) year 1: $2,500,000,
                                         (ii) year 2, $1,000,000 and (iii) year 3, $1,000,000.

 

As
used in this Section 13.3, “COMPANY FUNDING” shall be calculated by adding together the following amounts: (1)
one hundred percent (100%) of cash actually received by LICENSEE from investors to purchase an equity or ownership interest
in LICENSEE; (2) fifty percent (50%) of grant money and/or research and development funds actually received by LICENSEE from
a governmental body or independent third party, provided that such funds are required to be spent by or on behalf of LICENSEE
for future research and development of a LICENSED PRODUCT; (3) one hundred percent (100%) of research and development funds
actually received by LICENSEE from a sublicensee, provided that such funds are required to be spent by or on behalf of
LICENSEE for future research and development of a LICENSED PRODUCT; and (4) 100% of royalties received by LICENSEE from a
sublicensee from the SALE of a LICENSED PRODUCT less any royalty owed to LICENSOR pursuant to Section 4.1(d) and Section
4.1(i).

 

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		13.4	Subject
                                         to any rights herein which survive termination, this AGREEMENT will earlier terminate
                                         in its entirety:

 

		(a)	automatically,
                                         if LICENSEE becomes bankrupt or insolvent and/or if the business of LICENSEE shall be
                                         placed in the hands of a receiver, assignee, or trustee, whether by voluntary act of
                                         LICENSEE or otherwise; or

 

		(b)	upon
                                         forty-five (45) calendar days written notice from LICENSOR, if LICENSEE breaches or defaults
                                         on the payment or report obligations of ARTICLE IV (excluding the license documentation
                                         fee specified in Section 4.1(b), for which no cure period applies), or use of name obligations
                                         of ARTICLE X, unless, before the end of such forty-five (45)-calendar day notice period,
                                         LICENSEE has cured the default or breach to LICENSOR’s reasonable satisfaction,
                                         and so notifies LICENSOR, stating the manner of the cure; or

 

		(c)	upon
                                         ninety (90) calendar days written notice from LICENSOR if LICENSEE breaches or defaults
                                         on any other obligation under this AGREEMENT, unless, before the end of such ninety (90)
                                         calendar-day notice period, LICENSEE has cured the default or breach to LICENSOR’s
                                         reasonable satisfaction and so notifies LICENSOR, stating the manner of the cure; or

 

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		(d)	at
                                         any time by mutual written agreement between LICENSEE and LICENSOR upon one hundred eighty
                                         (180) calendar days written notice to all parties and subject to any terms herein which
                                         survive termination; or

 

		(e)	As
                                         set forth in Sections 13.3 and 15.9; or

 

		(f)	immediately,
                                         upon written notice from LICENSOR, if LICENSEE has defaulted or been late on its payment
                                         obligations pursuant to the terms of this AGREEMENT on any three (3) occasions in an
                                         eighteen (18) month period; or

 

		(g)	immediately,
                                         upon written notice from LICENSOR, if LICENSEE fails to timely pay the license fee specified
                                         in Section 4.1(b); or

 

		(h)	without
                                         cause, by LICENSEE, upon one hundred eighty (180) calendar days written notice from LICENSEE
                                         to LICENSOR; or

 

13.5
Upon termination of this AGREEMENT:

 

		(a)	nothing
                                         herein will be construed to release either party of any obligation maturing prior to
                                         the effective date of the termination; and

 

		(b)	The
                                         provisions of ARTICLES IX (Indemnification and Insurance), X (Use of Name) and XI (Confidential
                                         Information and Publication) shall survive termination of this AGREEMENT; and

 

		(c)	LICENSEE
                                         may, for a period of one year after the effective date of the termination of this AGREEMENT
                                         in its entirety, sell all LICENSED PRODUCTS and parts therefor that it has on hand at
                                         the date of termination, if LICENSEE pays the earned royalty thereon and any other amounts
                                         due pursuant to ARTICLE IV of this AGREEMENT; and

 

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		(d)	Subject
                                         to Section 13.5(c), LICENSEE agrees to cease and desist any use and all SALE of the LICENSED
                                         SUBJECT MATTER and LICENSED PRODUCTS upon termination of this AGREEMENT. 

 

XIV.
SUPERIOR RIGHTS

 

		14.1	LICENSEE
                                         understands that the LICENSED SUBJECT MATTER may have been developed under a funding
                                         agreement with the Government of the United States of America (“Government”)
                                         and, if so, that the Government may have certain rights relative thereto. This AGREEMENT
                                         is explicitly made subject to the Government’s rights under any such agreement and any
                                         applicable law or regulation. To the extent that there is a conflict between any such
                                         agreement, applicable law or regulation and this AGREEMENT, the terms of such Government
                                         agreement, applicable law or regulation shall prevail. To the extent the LICENSED SUBJECT
                                         MATTER was developed under a funding agreement with the Government, LICENSEE shall comply
                                         with the requirements of such funding agreement and any applicable law or regulation,
                                         including any requirements for United States manufacture. Accordingly, LICENSEE agrees
                                         that any LICENSED PRODUCTS developed under a funding agreement with the Government will
                                         be manufactured substantially in the United States, to the full extent required under
                                         applicable law and regulations, unless a written waiver is obtained in advance from the
                                         GOVERNMENT. LICENSEE will promptly advise LICENSOR if such a written waiver is requested
                                         and/or obtained.

 

		14.2	LICENSEE
                                         understands, acknowledges and agrees that LICENSOR, by this AGREEMENT, makes no representation
                                         as to the operability or fitness for any use, safety, efficacy, approvability by regulatory
                                         authorities, time and cost of development, patentability, and/or breadth of the LICENSED
                                         SUBJECT MATTER. LICENSOR, by this AGREEMENT, also makes no representation as to whether
                                         any patent covered by PATENT RIGHTS is valid or as to whether there are any patents now
                                         held, or which will be held, by others or by, LICENSOR, SYSTEM or UTMDACC in the LICENSED
                                         FIELD, nor does LICENSOR make any representation that the inventions contained in PATENT
                                         RIGHTS do not infringe any other patents now held or that will be held by others or by
                                         LICENSOR, UTMDACC OR SYSTEM.

 

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XV.
GENERAL

 

		15.1	This
                                         AGREEMENT constitutes the entire and only agreement between the parties for LICENSED
                                         SUBJECT MATTER and all other prior negotiations, representations, agreements and understandings
                                         are superseded hereby. No agreements altering or supplementing the terms hereof will
                                         be made except by a written document signed by both parties.

 

		15.2	Any
                                         notice required by this AGREEMENT must be given by prepaid, first class, certified mail,
                                         return receipt requested, or by overnight delivery by a nationally recognized delivery
                                         service with signature proof of delivery, and addressed in the case of LICENSOR to:

 

Novel
Anti-Infective Technologies, LLC

4207
Clearwater Ct.

Missouri
City, TX 77459

ATTENTION:
David McWilliams

 

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or
in the case of LICENSEE to:

 

Leonard
Meron Biosciences, Inc.

11
Commerce Drive, First Floor

Cranford,
NJ 07016

ATTENTION:
Myron Holubiak, CEO

 

or
such other addresses as may be given from time to time under the terms of this notice provision.

 

		15.3	LICENSEE
                                         must comply with all applicable federal, state and local laws and regulations in connection
                                         with its activities pursuant to this AGREEMENT. LICENSEE acknowledges that the LICENSED
                                         SUBJECT MATTER is subject to U. S. export control jurisdiction. LICENSEE agrees to comply
                                         with all applicable international and national laws that apply to the LICENSED SUBJECT
                                         MATTER, including U.S. Export Administration Regulations, as well as end-user, end-use,
                                         and destination restrictions applied by the United States.

 

		15.4	This
                                         AGREEMENT will be construed and enforced in accordance with the laws of the United States
                                         of America and of the State of Texas, without regard to its conflict of law provisions.
                                         The Texas State Courts of Harris County, Texas (or, if there is exclusive federal jurisdiction,
                                         the United States District Court for the Southern District of Texas) shall have exclusive
                                         jurisdiction and venue over any dispute arising out of this AGREEMENT, and LICENSEE consents
                                         to the jurisdiction and venue of such courts. Nothing in this AGREEMENT shall be deemed
                                         as a waiver by BOARD, SYSTEM or UTMDACC of its sovereign immunity.

 

		15.5	Omitted.

 

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		15.6	Failure
                                         of LICENSOR or LICENSEE to enforce a right under this AGREEMENT will not act as a waiver
                                         of right or the ability to later assert that right relative to the particular situation
                                         involved.

 

		15.7	Headings
                                         included herein are for convenience only and will not be used to construe this AGREEMENT.

 

		15.8	If
                                         any part of this AGREEMENT is for any reason found to be unenforceable, all other parts
                                         nevertheless will remain enforceable.

 

	15.9	In
                                         the event that LICENSEE brings an action before any court, agency or tribunal seeking
                                         to invalidate or otherwise challenge the enforceability of or BOARD’s ownership
                                         of any patent included in the PATENT RIGHTS, then LICENSOR may immediately terminate
                                         this AGREEMENT upon written notice to LICENSEE. Any such dispute regarding the validity,
                                         enforceability or ownership of any patent included in the PATENT RIGHTS shall be litigated
                                         in the courts located in Houston, Texas, and LICENSEE agrees not to challenge personal
                                         jurisdiction in that forum. To the extent that LICENSEE unsuccessfully challenges the
                                         validity or enforceability of any patent included in the PATENT RIGHTS, LICENSEE agrees
                                         to reimburse UTMDACC and BOARD for all costs and fees (including attorney’s fees)
                                         paid by UTMDACC and BOARD in defending against such challenge. LICENSEE understands and
                                         agrees that, in the event LICENSEE successfully challenges the validity or enforceability
                                         of any patent included in the PATENT RIGHTS, all payments or other consideration made
                                         or otherwise provided by LICENSEE to LICENSOR prior to a final, non-appealable adjudication
                                         of invalidity and/or unenforceability shall be non-refundable. The obligations of this
                                         Section shall survive the expiration or termination of this AGREEMENT.

 

		15.10	This
                                         AGREEMENT may be executed by the parties in counterparts (each of which shall be deemed
                                         to be an original, but all of which taken together shall constitute one and the same
                                         agreement) and shall become effective when one or more counterparts have been signed
                                         by each of the parties and delivered to the other party. All signatures need not be on
                                         the same counterpart page.

 

[SIGNATURE
PAGE FOLLOWS]

    37

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to execute this PATENT AND TECHNOLOGY
LICENSE AGREEMENT.

 

	LEONARD-MERON
                    BIOSCIENCES, INC.

	 	NOVEL
ANTI-INFECTIVE TECHNOLOGIES, LLC

	 	 	 
	By	/s/
Myron Holubiak	 	By	/s/ David
B. McWilliams
	Printed Name: Myron Holubiak	 	Printed Name: David B. McWilliams
	Title: Chief Executive Officer	 	Title: Chairman

 

    38

     

    

 

EXHIBIT
1

 

PART
A -SALVAGE

 

	MDA
                                         No.

        (each
        an individual technology)
	 	Inventors
    	 	IDR
    Title 	 	U.S.
    and foreign patent application/patent numbers 
	MDA03-038	 	Issam
    I Raad, M.D.	 	Antimicrobials
    in Combination with Chelators and Ethanol for the Rapid Eradication of Microorganisms Embedded in Biofilm	 	U.S.
                                         Patent No.: 7,601,731;

        EP
        Serial No.: 04754538.9;

        CA
        Serial No.: 2,528,522;

        U.S.
        Serial No.: 13/095,262;

        U.S.
        Serial No.: 13/621,628

         

 

 

    i

     

    

 

EXHIBIT
2

 

MDA03-038: “Licensed
Field” means the medical use of compositions comprising tetracycline, a chelator, and an alcohol as a salvage catheter lock/flush
(i.e. not maintenance catheter lock/flush) solution in indwelling catheters, provided that such composition does not contain any
antibiotics or other antimicrobials other than one or more tetracyclines. As used in this AGREEMENT, “tetracycline”
means minocycline, tigecycline, doxycycline, demeclocycline, anhydrotetracycline, chlorotetracycline, or epioxytetracycline or
equivalent drug in the tetracycline class. Notwithstanding the foregoing, the Licensed Field shall not include the Excluded Fields,
set forth below.

 

 

 

Excluded
Fields:

 

The
Licensed Field(s) of use set forth above shall not include any of the “Excluded Fields.” As used herein, “Excluded
Fields” means the following:

 

		(1)	the
                                         coating of catheters in combination with antibiotics or other antimicrobials and the
                                         resultant catheters, including, but not limited to, any use of an antibiotic or other
                                         antimicrobial that creates a coating on or otherwise coats a catheter with an antibiotic
                                         or other antimicrobial;

 

		(2)	Antimicrobial
                                         gloves, including but not limited to: antimicrobial medical gloves for examination and/or
                                         surgical applications; and antimicrobial gloves for industrial and/or food-service applications;
                                         and

 

		(3)	cardiac
                                         pacemakers, cardiac defibrillators, cardiac pacemaker leads; and cardiac defibrillator
                                         leads, (collectively, “Cardiac Devices”) which either may be coated with
                                         antimicrobial agents or placed into or covered by a receptacle, mesh, envelope, pouch,
                                         sleeve, sheath, boot, jacket or other cover (collectively “Pouch(es)”) coated
                                         with antimicrobial agents; (b) surgical site repair mesh, including but not limited to
                                         hernia repair mesh and incisional wound closure mesh, in each case coated with antimicrobial
                                         agents, (c) Pouches into which one or more of the following devices are placed, in whole
                                         or in part: implantable infusion devices (i.e. drug pumps) (including leads, adapters
                                         and extensions for such devices); and (d) pulse generators (i.e., non-cardiac and vagus
                                         nerve stimulators) (including leads, adapters and extensions for such devices) which
                                         either may be coated with antimicrobial agents or placed into Pouch(es).

 

    ii

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