Document:

Blueprint

 

Exhibit 4.1

 

CERTIFICATE OF DESIGNATION OF

 

PREFERENCES, RIGHTS AND LIMITAITONS OF

 

SERIES J PREFERRED STOCK OF

 

GT BIOPHARMA, INC.

 

 

GT
BIOPHARMA, INC. (the "Corporation"), a corporation organized and
existing under the General Corporation Law of the State of
Delaware, DOES HEREBY CERTIFY that, pursuant to authority conferred
upon the Board of Directors by the Second Restated Certificate of
Incorporation of the Corporation, as amended, and pursuant to the
provisions of Section 151 of the General Corporation Law of the
State of Delaware, the Board of Directors, by resolutions adopted
to be effective on September 1, 2017, duly determined that
2,000,000 of the authorized shares of Preferred Stock, $.001 par
value per share, of the Corporation shall be designated "Series J
Preferred Stock," and duly adopted a resolution providing for the
voting powers, designations, preferences and relative,
participating, optional or other rights, and the qualifications,
limitations and restrictions, of the Series J Preferred Stock,
which resolution is as follows:

 

"RESOLVED,
that the Board of Directors, pursuant to the authority vested in it
by the provisions of the Second Restated Certificate of
Incorporation of the Corporation, as amended, hereby authorizes the
issuance of 2,000,000 shares of Preferred Stock, $.001 par value,
of the Corporation, which shall be designated as "Series J
Preferred Stock" (the "Series J Preferred Stock") and shall have
the following designations, powers, preferences and relative,
participating, optional and other special rights, and the
qualifications, limitations and restrictions:

 

1.
Definitions.

 

As used
herein, the following terms shall have the following
meanings:

 

(a)
"Board" shall mean the Board of Directors of the
Corporation.

 

(b)
"Common Stock" shall mean the Corporation's common stock, par value
$.001 per share.

 

(c)
"Issuance Date" shall mean the date on which the first share of
Series J Preferred Stock is issued.

 

(d)
"Liquidation" shall mean any voluntary or involuntary liquidation,
dissolution or winding-up of the Corporation.

 

(e)
"Preferred Stock" shall mean the Corporation's preferred stock, par
value $.001 per share.

 

(f)
"Securities Act" shall mean the Securities Act of 1933, as
amended.

 

 

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2.
Rank. The Series J
Preferred Stock will rank on parity to any class or series of our
capital stock hereafter created specifically ranking by its terms
on parity with the Series J Preferred Stock.

 

3.
Dividends. Shares
of Series J Preferred Stock will not be entitled to receive any
dividends, unless and until specifically declared by our board of
directors. The holders of the Series J Preferred Stock will
participate, on an as-if-converted-to-common stock basis, in any
dividends to the holders of common stock.

 

4.
Voting Rights.
Shares of Series J Preferred Stock will have the same voting rights
as shares of common stock with each share of Series J Preferred
Stock entitled to one vote at a meeting of the shareholders of the
Corporation.

 

5.
Liquidation
Preference. In the event of our liquidation, dissolution or
winding up, holders of the Series J Preferred Stock will be on
parity with the holders of our common stock and will participate,
on an as-if-converted-to-common stock basis, in any distributions
to the holders of common stock.

 

6.
Conversion Rights.
The holders of shares of Series J Preferred Stock shall have the
following conversion rights:

 

A.
Conversion Rate. Each share
of the Series J Preferred Stock is convertible into one share of
our common stock at any time at the option of the holder (the
"Conversion Rate").

 

B.
Upon Extraordinary Common Stock
Event. Upon the happening of an Extraordinary Common Stock
Event, shares of Series J Preferred Stock shall be impacted in the
same way our shares of common stock were impacted by the
Extraordinary Common Stock Event. An "Extraordinary Common Stock
Event" shall mean: (i) the issuance of additional shares of Common
Stock as a dividend or other distribution on the outstanding shares
of Common Stock, (ii) the subdivision of outstanding shares of
Common Stock into a greater number of shares of Common Stock, or
(iii) the combination of the outstanding shares of Common Stock
into a smaller number of shares of Common Stock, in each case other
than pursuant to a transaction provided for in Section 6C or
6D.

 

C.
Capital Reorganization or
Reclassification. If the shares of Common Stock issuable
upon conversion of Series J Preferred Stock shall be changed into
the same or a different number of shares of any class or classes of
stock, whether by reorganization, reclassification or otherwise
(other than a subdivision or combination of shares or stock
dividend provided for in Section 6B, or a reorganization, merger,
consolidation or sale of assets provided for in Section 6D), then
and in each such event, the holders of shares of Series J Preferred
Stock shall have the right thereafter to convert such shares into
the kind and amount of shares of stock and other securities and
property receivable upon such reorganization, reclassification or
other change by the holders of the number of shares of Common Stock
into which such shares of Series J Preferred Stock were convertible
immediately prior to such reorganization, reclassification or other
change, all subject to further adjustment as provided
herein.

 

 

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D.
Reorganization, Merger or
Consolidation. If at any time or from time to time there
shall be a reorganization, reclassification or recapitalization of
the capital stock (other than a subdivision, combination,
reorganization, reclassification or exchange of shares provided for
elsewhere in this Section 6) (a "Reorganization"), then as a part
of such Reorganization, provision shall be made so that each holder
of Series J Preferred Stock shall thereafter be entitled to receive
upon conversion of such shares of Series J Preferred Stock, the
number of shares of stock or other securities or property to which
a holder of the number of shares of Common Stock into which such
holder's shares of Series J Preferred Stock were convertible
immediately prior to such Reorganization would have been entitled
upon consummation of such Reorganization. In any such case,
appropriate adjustment shall be made in the application of the
provisions of this Section 6 with respect to the rights of the
holders of Series J Preferred Stock after the Reorganization to the
end that the provisions of this Section 6 (including adjustment of
the Conversion Value then in effect, and the number of shares of
Common Stock issuable upon conversion of the Series J Preferred
Stock) shall be applicable after that event in as nearly equivalent
a manner as may be practicable.

 

E.
Exercise of Conversion
Privilege. To exercise the conversion right set forth in
Section 6A, a holder of shares of Series J Preferred Stock shall
surrender the certificates representing the shares being converted
to the Corporation at its principal office, and shall give written
notice to the Corporation at that office that such holder elects to
convert such shares. Such notice shall also state the name or names
(with address or addresses) in which the certificates for shares of
Common Stock issuable upon such conversion shall be issued. The
certificates for shares of Series J Preferred Stock surrendered for
conversion shall be accompanied by proper assignment thereof to the
Corporation or in blank. The date when such written notice is
received by the Corporation, together with the certificates
representing the shares of Series J Preferred Stock being
converted, shall be deemed the "Conversion Date." As promptly as
practicable after the Conversion Date, the Corporation shall issue
and deliver certificates to each holder of shares of Series J
Preferred Stock so converted, or on its written order, such
certificates as it may request, for the number of whole shares of
Common Stock issuable upon the conversion of such shares of Series
J Preferred Stock in accordance with the provisions of this Section
6, and cash as provided in Section 6K, in respect of any fraction
of a share of Common Stock issuable upon such conversion. Such
conversion shall be deemed to have been effected immediately prior
to the close of business on the Conversion Date, and at such time
the rights of the holder as holder of the converted shares of
Series J Preferred Stock shall cease and the person or persons in
whose name or names any certificates for shares of Common Stock
shall be issuable upon such conversion shall be deemed to have
become the holder or holders of record of the shares of Common
Stock represented thereby.

 

G.
Cash in Lieu of Fractional
Shares. No fractional shares of Common Stock or scrip
representing fractional shares shall be issued upon any conversion
of shares of Series J Preferred Stock. Instead of any fractional
shares of Common Stock which would otherwise be issuable upon
conversion of shares of Series J Preferred Stock, the Corporation
shall pay to the holder of shares of Series J Preferred Stock which
were converted a cash adjustment in respect of such fractional
shares in an amount equal to the same fraction of the Market Price
per share of the Common Stock at the close of business on the
Conversion Date. The determination as to whether or not any
fractional shares are issuable shall be based upon the total number
of shares of Series J Preferred Stock so converted at any one time
by any holder thereof, and not upon each share of Series J
Preferred Stock so converted.

 

 

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H.
Partial Conversion. In the
event some but not all of the shares of Series J Preferred Stock
represented by a certificate surrendered by a holder are converted,
the Corporation shall execute and deliver to or on the order of the
holder, at the expense of the Corporation, a new certificate
representing the number of shares of Series J Preferred Stock which
were not converted.

 

I.
Reservation of Common
Stock. The Corporation shall at all times reserve and keep
available out of its authorized but unissued shares of Common
Stock, solely for the purpose of effecting the conversion of shares
of Series J Preferred Stock, such number of shares of Common Stock
as shall from time to time be sufficient to effect the conversion
of all outstanding shares of Series J Preferred Stock, and if at
any time the number of authorized but unissued shares of Common
Stock shall not be sufficient to effect the conversion of all then
outstanding shares of Series J Preferred Stock, the Corporation
shall take such corporate action as may be necessary to increase
its authorized but unissued shares of Common Stock to such number
of shares as shall be sufficient for such purpose.

 

J.
No Reissuance of Series J
Preferred Stock. Shares of Series J Preferred Stock which
are converted into shares of Common Stock as provided herein shall
not be reissued.

 

K.
Issue Tax. The issuance of
certificates for shares of Common Stock upon conversion of any
shares of Series J Preferred Stock shall be made without charge to
the holders thereof for any issuance tax in respect thereof;
provided that the Corporation shall not be required to pay any tax
which may be payable in respect of any transfer involved in the
issuance and delivery of any certificate in a name other than that
of the holder of the shares of Series J Preferred Stock which are
being converted.

 

L.
Closing of Books. The
Corporation will at no time close its transfer books against the
transfer of any shares of Series J Preferred Stock or of any shares
of Common Stock issued or issuable upon the conversion of any
shares of Series J Preferred Stock in any manner which interferes
with the timely conversion of such shares of Series J Preferred
Stock, except as may otherwise be required to comply with
applicable securities laws.

 

 

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M.
Beneficial Ownership Limitation. The Corporation shall not effect
any conversion of the Series J Preferred Stock, and a Holder shall
not have the right to convert any portion of the Preferred Stock,
to the extent that, after giving effect to the conversion set forth
on the applicable Notice of Conversion, such Holder (together with
such Holder's Affiliates, and any Persons acting as a group
together with such Holder or any of such Holder's Affiliates (such
Persons, "Attribution Parties")) would beneficially own in excess
of the Beneficial Ownership Limitation (as defined below). For
purposes of the foregoing sentence, the number of shares of Common
Stock beneficially owned by such Holder and its Affiliates and
Attribution Parties shall include the number of shares of Common
Stock issuable upon conversion of the Series J Preferred Stock with
respect to which such determination is being made, but shall
exclude the number of shares of Common Stock which are issuable
upon (i) conversion of the remaining, unconverted Stated Value of
Preferred Stock beneficially owned by such Holder or any of its
Affiliates or Attribution Parties and (ii) exercise or conversion
of the unexercised or unconverted portion of any other securities
of the Corporation subject to a limitation on conversion or
exercise analogous to the limitation contained herein (including,
without limitation, the Preferred Stock or the Warrants)
beneficially owned by such Holder or any of its Affiliates or
Attribution Parties. Except as set forth in the preceding sentence,
for purposes of this Section 6M, beneficial ownership shall be
calculated in accordance with Section 13(d) of the Exchange Act and
the rules and regulations promulgated thereunder. To the extent
that the limitation contained in this Section 6M applies, the
determination of whether the Preferred Stock is convertible (in
relation to other securities owned by such Holder together with any
Affiliates and Attribution Parties) and of how many shares of
Preferred Stock are convertible shall be in the sole discretion of
such Holder, and the submission of a Notice of Conversion shall be
deemed to be such Holder's determination of whether the shares of
Preferred Stock may be converted (in relation to other securities
owned by such Holder together with any Affiliates and Attribution
Parties) and how many shares of the Preferred Stock are
convertible, in each case subject to the Beneficial Ownership
Limitation. To ensure compliance with this restriction, each Holder
will be deemed to represent to the Corporation each time it
delivers a Notice of Conversion that such Notice of Conversion has
not violated the restrictions set forth in this paragraph and the
Corporation shall have no obligation to verify or confirm the
accuracy of such determination. In addition, a determination as to
any group status as contemplated above shall be determined in
accordance with Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder. For purposes of this Section
6M, in determining the number of outstanding shares of Common
Stock, a Holder may rely on the number of outstanding shares of
Common Stock as stated in the most recent of the following: (i) the
Corporation's most recent periodic or annual report filed with the
Commission, as the case may be, (ii) a more recent public
announcement by the Corporation or (iii) a more recent written
notice by the Corporation or the Transfer Agent setting forth the
number of shares of Common Stock outstanding. Upon the written or
oral request (which may be via email) of a Holder, the Corporation
shall within two Trading Days confirm orally and in writing to such
Holder the number of shares of Common Stock then outstanding. In
any case, the number of outstanding shares of Common Stock shall be
determined after giving effect to the conversion or exercise of
securities of the Corporation, including the Preferred Stock, by
such Holder or its Affiliates or Attribution Parties since the date
as of which such number of outstanding shares of Common Stock was
reported. The "Beneficial Ownership Limitation" shall be 9.99% of
the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock
issuable upon conversion of Series J Preferred Stock held by the
applicable Holder. A Holder, upon notice to the Corporation, may
increase or decrease the Beneficial Ownership Limitation provisions
of this Section 6M applicable to its Preferred Stock provided that
the Beneficial Ownership Limitation in no event exceeds 9.99% of
the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock upon
conversion of this Series J Preferred Stock held by the Holder and
the provisions of this Section 6M shall continue to apply. Any such
increase in the Beneficial Ownership Limitation will not be
effective until the 61st day after such notice is delivered to the
Corporation and shall only apply to such Holder and no other
Holder. The provisions of this paragraph shall be construed and
implemented in a manner otherwise than in strict conformity with
the terms of this Section 6M to correct this paragraph (or any
portion hereof) which may be defective or inconsistent with the
intended Beneficial Ownership Limitation contained herein or to
make changes or supplements necessary or desirable to properly give
effect to such limitation. The limitations contained in this
paragraph shall apply to a successor holder of Preferred
Stock.

 

 

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7.
Miscellaneous.

 

(a) The
Corporation covenants that all shares of Common Stock which may be
issued upon conversions of shares of Series J Preferred Stock will
upon issuance be duly and validly issued, fully paid and
nonassessable, free of all liens and charges and not subject to any
preemptive rights.

 

(b) No
share or shares of Series J Preferred Stock acquired by the
Corporation by reason of redemption, purchase, conversion or
otherwise, shall be reissued, and all such shares shall be
cancelled, retired and eliminated from the shares which the
Corporation shall be authorized to issue.

 

The
number of shares of Series J Preferred Stock is 2,000,000, none of
which have been issued.

 

IN
WITNESS WHEREOF, this Certificate of Designation has been signed by
an authorized officer of the Corporation as of the date first
written above.

 

By:

 

/s/
Steven Weldon

 

Name:
Steven Weldon

 

Title:
CFO

 

 

-6-Blueprint

  Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

 

 

This
Employment Agreement (the “Agreement”) is made and
entered into by and among GT Biopharma, Inc. (the "Parent"),
Georgetown Translational Pharmaceuticals, Inc. (the
“Subsidiary” and together with the Parent, the
“Companies” and each, a “Company”) and
Kathleen Clarence-Smith ("Executive") as of September 1, 2017 (the
"Effective Date").

 

WHEREAS, each Company is desirous of
employing Executive, and Executive wishes to be employed by each
Company in accordance with the terms and conditions set forth in
this Agreement.

 

NOW,
THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND PROMISES
AND OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS
HEREBY ACKNOWLEDGED, IT IS MUTUALLY AGREED AS FOLLOWS:

 

1. Position and Duties: Executive shall be
employed by each Company as its Chief Executive Officer ("CEO")
reporting to the Board of Directors of each Company. CEO agrees to
devote the necessary business time, energy and skill to her duties
at each Company, and will be permitted engage in outside consulting
and/or employment provided said services do not materially
interfere with Executive’s obligations to each Company under
the terms of this Agreement. Executive agrees to advise the Board
of Directors of the Parent of any outside services, and such
Board’s approval of Executive’s participation in any
such outside services shall not be unreasonably withheld or
delayed. If such Board does not affirmatively approve of any such
outside engagements within thirty (30) days after Executive informs
the Board, the Board’s approval shall be deemed to have been
given. The duties of Executive under this Agreement shall include
all those duties customarily performed by a CEO as well as
providing advice and consultation on general corporate matters,
particularly related to shareholder and investor relations,
assisting the Parent with respect to raising equity and other
financing for the Companies, and other projects as may be assigned
by either Company’s Board of Directors on an as needed basis.
During the term of Executive's employment, Executive shall have the
right to serve on boards of directors of other for-profit or
not-for-profit entities provided such service does not materially
adversely affect the performance of Executive's duties to each
Company under this Agreement, and are not in conflict with the
interests of each Company. For the avoidance of doubt, without any
approval, Executive shall have the right to serve on boards of
directors of, and otherwise provide services to, the entities as
described on Exhibit
A.

 

In
addition to Executive’s appointment as Chief Executive
Officer of each Company, Executive shall be nominated to stand for
election to the Board of Directors of each Company at each of its
scheduled shareholders meeting so long as Executive remains as CEO
of either Company. As a member of each Company's Board, Executive
shall continue to be subject to the provisions of each Company's
bylaws and all applicable general corporation laws relative to her
position on the Board. In addition to each Company's bylaws, as a
member of the Board, Executive shall also

 

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be
subject to the statement of powers, both specific and general, set
forth in each Company's Articles of Incorporation.

 

2. Term of Employment: This Agreement shall
remain in effect for a period of three years from the Effective
Date, and thereafter will automatically renew for successive one
year periods unless either party provides ninety days' prior
written notice of termination. In the event either Company elects
to terminate the Agreement, such termination shall be considered to
be an Involuntary Termination, and Executive shall be provided
benefits as provided in this Agreement. Upon the termination of
Executive's employment for any reason, neither Executive nor the
Companies shall have any further obligation or liability under this
Agreement to the other, except as set forth below.

 

3. Compensation: Executive shall be
compensated by the Parent for her services to the Companies as
follows:

 

(a) Base Salary: CEO, Executive shall be
paid a monthly Base Salary of $500,000.00 per year. The monthly
cash payment will be subject to applicable withholding, in
accordance with

the
Parent’s normal payroll procedures. Executive's salary shall
be reviewed on at least an annual basis and may be adjusted as
appropriate, but in no event shall it be reduced to an amount below
Executive’s salary then in effect. In the event of such an
adjustment, that amount shall become Executive's Base Salary.
Furthermore, during the term of this Agreement, in no event shall
Executive's compensation be less than any other officer or employee
of either Company or any subsidiary.

 

(b) Benefits: Executive shall have the
right, on the same basis as other senior executives of either
Company, to participate in and to receive benefits under any of
either Company's employee benefit plans, medical insurance, as such
plans may be modified from time to time, and provided that in no
event shall Executive receive less than (4) four weeks paid
vacation per annum, (6) six paid sick days per annum, and (5) five
paid personal days per annum.

 

(c) Performance Bonus: Executive shall have
the opportunity to earn a performance bonus in accordance with the
Parent's Performance Bonus Plan if in effect (“Target
Bonus”); if the Parent does not have a Bonus Plan in effect
at any given time during the term of this Agreement, then the
Parent’s Compensation Committee or Board of Directors shall
have discretion as to determining bonus compensation for
Executive.

 

(d) Stock and Options: Within thirty (30)
days after the Effective Date, the Parent shall award Executive
restricted stock and/or options for such stock in an amount and
subject to a vesting schedule (not to exceed four (4) years in
total) that is reasonably satisfactory to Executive. Any such
restricted stock and/or options shall fully accelerate on a Change
in Control.

 

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(e) Expenses: Parent shall reimburse
Executive for reasonable travel, lodging, entertainment and meal
expenses incurred in connection the performance of services within
this Agreement. Executive shall be entitled to fly Business Class
on any flight longer than four (4) hours and receive full
reimbursement for such flight from the Parent.

 

(f) Travel: Executive shall travel as
necessary from time to time to satisfy her performance and
responsibilities under this Agreement.

 

4.

Effect of Termination of
Employment:

 

(a) Voluntary Termination: In the event of
Executive's voluntary termination from employment with the
Companies, other than for Good Reason pursuant to Sections 5(d) or
5(e), Executive shall be entitled to no compensation or benefits
from the Companies other than those earned under Section 3 through
the date of her termination and, in the case of each stock option,
restricted stock award or other Company stock-based award granted
to Executive, the extent to which such awards are vested through
the date of her termination. In the event that Executive's
employment terminates as a result of her death or disability,
Executive shall be entitled to a pro- rata share of the
performance-based bonus for which Executive is then-eligible
pursuant to Section 3(c) (presuming performance meeting, but not
exceeding, target performance goals) in addition to all
compensation and benefits earned under Section 3 through the date
of termination.

 

(b) Termination for Cause: If Executive's
employment is terminated by the Companies for Cause, Executive
shall be entitled to no compensation or benefits from the Companies
other than those earned under Section 3 through the date of her
termination and, in the case of each stock option, restricted stock
award or other Company stock-based award granted to Executive, the
extent to which such awards are vested through the date of her
termination. In the event that the Companies terminate Executive's
employment for Cause, the Companies shall provide written notice to
Executive of that fact prior to, or concurrently with, the
termination of employment. Failure to provide written notice that
the Companies contend that the termination is for Cause shall
constitute a waiver of any contention that the termination was for
Cause, and the termination shall be irrebuttably presumed to be an
Involuntary Termination.

 

(c) Involuntary Termination During Change in
Control Period: If Executive's employment with the Companies
terminates as a result of a Change in Control Period Involuntary
Termination, then, in addition to any other benefits described in
this Agreement, Executive shall receive the following:

 

(i) all compensation
and benefits earned under Section 3 through the date of Executive's
termination of employment;

 

(ii) a
lump sum payment equivalent to the greater of (a) the bonus paid or
payable to Executive for the year immediately prior to the year in
which the Change in Control occurred

 

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and (b)
the Target Bonus under the Performance Bonus Plan in effect
immediately prior to the year in which the Change in Control
occurs;

 

(iii) a
lump sum payment equivalent to the remaining Base Salary (as it was
in effect immediately prior to the Change in Control) due Executive
from the date of Involuntary Termination to the end of the term of
this Agreement or one-half of Executive’s Base Salary then in
effect, whichever is the greater; and

 

(iv) reimbursement
for the cost of medical, life, disability insurance coverage at a
level equivalent to that provided by the Companies for a period
expiring upon the earlier of: (a) one year; or (b) the time
Executive begins alternative employment wherein said insurance
coverage is available and offered to Executive. It shall be the
obligation of Executive to inform the Parent that new employment
has been obtained.

 

Unless
otherwise agreed to by Executive at the time of Involuntary
Termination, the amount payable to Executive under subsections (i)
through (iii), above, shall be paid to Executive in a lump sum
within thirty (30) days following Executive's termination of
employment. The amounts payable under subsection (iv) shall be paid
monthly during the reimbursement period.

 

(d) Termination Without Cause in the Absence of
Change in Control: In the event that Executive's employment
terminates as a result of a Non Change in Control Period
Involuntary Termination, then Executive shall receive the following
benefits:

 

(i) all compensation
and benefits earned under Section 3 through the date of the
Executive's termination of employment;

 

(ii) a
lump sum payment equivalent to the greater of (a) the bonus paid or
payable to Executive for the year immediately prior to the year in
which the Change in Control occurred and (b) the Target Bonus under
the Performance Bonus Plan in effect immediately prior to the year
in which the Change in Control occurs;

 

(iii) a
lump sum payment equivalent to the remaining Base Salary (as it was
in effect immediately prior to the Change in Control) due Executive
to the end of the term of this Agreement or one-half of
Executive’s Base Salary then in effect, whichever is the
greater; and

 

(iv) reimbursement
for the cost of medical, life and disability insurance coverage at
a level equivalent to that provided by the Companies for a period
of the earlier of: (a) one year; or

 

(b) the time Executive
begins alternative employment wherein said insurance coverage is
available and offered to Executive. It shall be the obligation of
Executive to inform the Parent that new employment has been
obtained.

 

Unless
otherwise agreed to by Executive, the amount payable to Executive
under subsections (i) through (iii) above shall be paid to
Executive in a lump sum within thirty (30) days
following

 

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Executive's
termination of employment. The amounts payable under subsection
(iv) shall be paid monthly during the reimbursement
period.

 

(e) Resignation with Good Reason During Change in
Control Period: If Executive resigns her employment with the
Companies as a result of a Change in Control Period Good Reason,
then, in addition to any other benefits described in this
Agreement, Executive shall receive the following.

 

(i) all compensation
and benefits earned under Section 3 through the date of the
Executive's termination of employment;

 

(ii) a
lump sum payment equivalent to the greater of (a) the bonus paid or
payable to Executive for the year immediately prior to the year in
which the Change in Control occurred and (b) the Target Bonus under
the Performance Bonus Plan in effect immediately prior to the year
in which the Change in Control occurs;

 

(iii) a
lump sum payment equivalent to the remaining Base Salary (as it was
in effect immediately prior to the Change in Control) due Executive
from the date of Involuntary Termination to the end of the term of
this Agreement or one-half of Executive’s Base Salary then in
effect, whichever is the greater; and

 

(iv) reimbursement
for the cost of medical, life and disability insurance coverage at
a level equivalent to that provided by the Companies for a period
of the earlier of: (a) one year; or

(b) the time Executive
begins alternative employment wherein said insurance coverage is
available and offered to Executive. It shall be the obligation of
Executive to inform the Parent that new employment has been
obtained.

 

Unless
otherwise agreed to by Executive, the amount payable to Executive
under subsections (i) through (iii) above shall be paid to
Executive in a lump sum within thirty (30) days following
the

 

Executive's
termination of employment. The amounts payable under subsection
(iv) shall be paid monthly during the reimbursement
period.

 

(f) Resignation with Good Reason in the Absence of
Change in Control: If Executive resigns her employment with
the Companies as a result of a Non Change in Control Period Good
Reason, then, in addition to any other benefits described in this
Agreement, Executive shall receive the following.

 

(i) all compensation
and benefits earned under Section 3 through the date of the
Executive's termination of employment;

 

(ii) a
lump sum payment equivalent to the greater of (a) the bonus paid or
payable to Executive for the year immediately prior to the year in
which the Change in Control occurred

 

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and (b)
the Target Bonus under the Performance Bonus Plan in effect
immediately prior to the year in which the Change in Control
occurs;

 

(iii) a
lump sum payment equivalent to the remaining Base Salary (as it was
in effect immediately prior to the Change in Control) due Executive
from the date of Involuntary Termination to the end of the term of
this Agreement or one-half of Executive’s Base Salary then in
effect, whichever is the greater; and

 

(iv) reimbursement
for the cost of medical, life and disability insurance coverage at
a level equivalent to that provided by the Companies for a period
of the earlier of: (a) one year; or

 

(b) the
time Executive begins alternative employment wherein said insurance
coverage is available and offered to Executive. It shall be the
obligation of Executive to inform the Parent that new employment
has been obtained.

 

Unless
otherwise agreed to by Executive, the amount payable to Executive
under subsections (i) through (iii) above shall be paid to
Executive in a lump sum within thirty (30) days following
the

 

Executive's
termination of employment. The amounts payable under subsection
(iv) shall be paid monthly during the reimbursement
period.

 

(g)
Resignation from Positions:
In the event that Executive's employment with the Companies is
terminated for any reason, on the effective date of the termination
Executive shall simultaneously resign from each position she holds
on the Board and/or the Board of Directors of any of the
Companies’ affiliated entities and any position Executive
holds as an officer of the Companies or any of the Companies’
affiliated entities.

 

5. Certain Definitions: For the purpose of
this Agreement, the following capitalized terms shall have the
meanings set forth below:

 

(a) "Cause" shall mean
any of the following occurring on or after the date of this
Agreement :

 

 

(i) Executive's theft,
dishonesty, breach of fiduciary duty for personal profit, or
falsification of any employment or Company record;

 

(ii) Executive's
willful violation of any law, rule, or regulation (other than
traffic violations, misdemeanors or similar offenses) or final
cease-and-desist order, in each case that involves moral
turpitude;

 

(iii) any
material breach by Executive of either Company's Code of
Professional Conduct, which breach shall be deemed "material" if it
results from an intentional act by Executive and has a material
detrimental effect on either Company's reputation or business;
or

 

(iv) any
material breach by Executive of this Agreement, which breach, if
curable, is not cured within thirty (30) days following written
notice of such breach from the applicable Company.

 

-6-

 

 

(b)

"Change in Control"
shall mean the occurrence of any of the following
events:

 

 

(i) the Parent is party
to a merger or consolidation which results in the holders of the
voting securities of the Parent outstanding immediately prior
thereto failing to retain immediately after such merger or
consolidation direct or indirect beneficial ownership of more than
fifty percent (50%) of the total combined voting power of the
securities entitled to vote generally in the election of directors
of the Parent or the surviving entity outstanding immediately after
such merger of consolidation.

 

(ii) a
change in the composition of the Board of Directors of the Parent
occurring within a period of twenty-four (24) consecutive months,
as a result of which fewer than a majority of the directors are
Incumbent Directors;

 

(iii) effectiveness
of an agreement for the sale, lease or disposition by the Parent of
all or substantially all of the Parent’s assets;
or

 

(iv)

a liquidation or
dissolution of the Parent.

 

 

(c) "Change in Control
Period" shall mean the period commencing on the date sixty (60)
days prior to the date of consummation of the Change of
Control

 

and
ending one hundred eighty (180) days following consummation of the
Change of Control.

 

 

(d) "Change in Control
Period Good Reason" shall mean Executive's resignation for any of
the following conditions, first occurring during a Change in
Control Period and occurring without Executive's written
consent:

 

(i) a decrease in
Executive's Base Salary, a decrease in Executive's Target Bonus (as
a multiple of Executive's Base Salary) under the Performance Bonus
Plan, or a decrease in employee benefits, in each case other than
as part of any across-the-board reduction applying to all senior
executives of either Company which does not have adverse effect on
the Executive disproportionate to similarly situated executives of
an acquirer;

 

(ii) a
material, adverse change in Executive's title, authority,
responsibilities, as measured against Executive's title, authority,
responsibilities or duties immediately prior to such
change.

 

(iii) a
change in the Executive's ability to maintain her principal
workplace in Washington, D.C.;

 

(iv) any
material breach by either Company of any provision of this
Agreement, which breach is not cured within thirty (30) days
following written notice of such breach from
Executive;

 

(v) any failure of the
Parent to obtain the assumption of this Agreement by any of the
Parent’s successors or assigns by purchase, merger,
consolidation, sale of assets or otherwise.

 

-7-

 

 

(vi) any
purported termination of Executive's employment for "material
breach of contract" which is purportedly effected without providing
the "cure" period, if applicable, described in Section 5(iv),
above.

 

The
effective date of any resignation from employment by the Executive
for Change in Control Period Good Reason shall be the date of
notification to the Parent of such resignation from employment by
the Executive.

 

(e) "Non Change in
Control Period Good Reason" shall mean the Executive's resignation
within six months of any of the following conditions first
occurring outside of a Change in Control Period and occurring
without Executive's written consent:

 

(i) a decrease in
Executive's total cash compensation opportunity (adding Base Salary
and Target Bonus) of greater than ten percent (10%);

 

(ii) a
material, adverse change in Executive's title, authority,
responsibilities or duties, as measured against Executive's title,
authority, responsibilities or duties immediately prior to such
change;

 

(iii) any
material breach by either Company of a provision of this Agreement,
which breach is not cured within thirty (30) days following written
notice of such breach from Executive;

 

(iv) a
change in the Executive's ability to maintain her principal
workplace in Washington, D.C.;

 

(v) any purported
termination of Executive's employment for "material breach of
contract" which is purportedly effected without providing the
"cure" period, if applicable, described in Section 5(iv),
above.

 

The
effective date of any resignation from employment by the Executive
for Non Change in Control Period Good Reason shall be the date of
notification to the Parent of such resignation from employment by
the Executive.

 

(f) "Incumbent
Directors" shall mean members of the Board who either (a) are
members of the Board as of the date hereof, or (b) are elected, or
nominated for election, to the Board with the affirmative vote of
at least a majority of the Incumbent Directors at the time of such
election or nomination (but shall not include an individual whose
election or nomination is in connection with an actual or
threatened proxy contest relating to the election of members of the
Board).

 

(g) "Change in Control
Period Involuntary Termination" shall mean during a Change in
Control Period the termination by the Companies of Executive's
employment with the Companies for any reason, including termination
as a result of death or disability of Executive, but excluding
termination for Cause. The effective date of any Change in Control
Period

 

-8-

 

 

Involuntary
Termination shall be the date of notification to the Executive of
the termination of employment by the Companies; or

 

(h) "Non Change in
Control Period Involuntary Termination" shall mean outside a Change
in Control Period the termination by the Companies of Executive's
employment with the Companies for any reason, including termination
by as a result of death or disability of Executive, but excluding
termination for Cause. The effective date of any Non Change in
Control Period Involuntary Termination shall be the date of
notification to the Executive of the termination of employment by
the Companies.

 

6. Dispute Resolution: In the event of any
dispute or claim relating to or arising out of this Agreement
(including, but not limited to, any claims of breach of contract,
wrongful termination or age, sex, race or other discrimination),
Executive and the Companies agree that all such disputes shall be
fully addressed and finally resolved by binding arbitration
conducted by the American Arbitration Association in New York City,
in the State of New York in accordance with its National Employment
Dispute Resolution rules. In connection with any such arbitration,
the Parent shall bear all costs not otherwise borne by a plaintiff
in a court proceeding. Each Company agrees that any decisions of
the Arbitration Panel will be binding and enforceable in any state
that either Company conducts the operation of its
business.

 

7. Attorneys' Fees: The prevailing party
shall be entitled to recover from the losing party its attorneys'
fees and costs incurred in any action brought to enforce any right
arising out of this Agreement.

 

8.

Restrictive Covenants:

 

(a) Nondisclosure. During the term of this
Agreement and following termination of the Executive's employment
with the Companies, Executive shall not divulge, communicate, use
to the detriment of the Companies or for the benefit of any other
person or persons, or misuse in any way, any Confidential
Information (as hereinafter defined) pertaining to the business of
the Companies. Any Confidential Information or data now or
hereafter acquired by the Executive with respect to the business of
the Companies (which shall include, but not be limited to,
confidential information concerning each Company's financial
condition, prospects, technology, customers, suppliers, methods of
doing business and promotion of each Company's products and
services) shall be deemed a valuable, special and unique asset of
each Company that is received by the Executive in confidence and as
a fiduciary. For purposes of this Agreement "Confidential
Information" means information disclosed to the Executive or known
by the Executive as a consequence of or through her employment by
each Company (including information conceived, originated,
discovered or developed by the Executive) prior to or after the
date hereof and not generally known or in the public domain, about
each Company or its business. Notwithstanding the foregoing, none
of the following information shall be treated as Confidential
Information: (i) information which is known to the public at the
time of disclosure to Executive, (ii) information

 

-9-

 

 

which
becomes known to the public by publication or otherwise after
disclosure to Executive,

 

(iii)
information which Executive can show by written records was in her
possession at the time of disclosure to Executive, (iv) information
which was rightfully received by Executive from a third party
without violating any non-disclosure obligation owed to or in favor
of the Companies, or (v) information which was developed by or on
behalf of Executive independently of any disclosure hereunder as
shown by written records. Nothing herein shall be deemed to
restrict the Executive from disclosing Confidential Information to
the extent required by law or by any court.

 

(b) Non-Competition. The Executive shall
not, while employed by either Company and for a period of one year
following the date of termination for Cause, or resignation other
than for Good Reason pursuant to Sections 5(d) or 5(e), engage or
participate, directly or indirectly (whether as an officer,
director, employee, partner, consultant, or otherwise), in any
business that manufactures, markets or sells products that directly
compete with any product of either Company that is significant to
such Company's business based on sales and/or profitability of any
such product as of the date of termination of Executive's
employment with such Company. Nothing herein shall prohibit
Executive from being a passive owner of less than 5% stock of any
entity directly engaged in a competing business.

 

(c) Property Rights; Assignment of
Inventions. Except as set forth below, with respect to
information, inventions and discoveries or any interest in any
copyright and/or other property right developed, made or conceived
of by Executive, either alone or with others, during her employment
by each Company arising out of such employment and pertinent to any
field of business or research in which, during such employment,
each Company is engaged or (if such is known to or ascertainable by
Executive) is considering engaging, Executive hereby
agrees:

 

(i) that all such
information, inventions and discoveries or any interest in any
copyright and/or other property right, whether or not patented or
patentable, shall be and remain the exclusive property of the
Companies;

 

(ii) to
disclose promptly to an authorized representative of the Parent all
such information, inventions and discoveries or any copyright
and/or other property right and all information in Executive's
possession as to possible applications and uses
thereof;

 

(iii) not
to file any patent application relating to any such invention or
discovery except with the prior written consent of an authorized
officer of the Parent (other than Executive);

 

(iv) that
Executive hereby waives and releases any and all rights Executive
may have in and to such information, inventions and discoveries,
and hereby assigns to Executive and/or its nominees all of
Executive's right, title and interest in them, and all Executive's
right, title and interest in any patent, patent application,
copyright or other property right based thereon. Executive hereby
irrevocably designates and appoints the Parent and each of its duly
authorized officers and agents as her agent and attorney-in-fact to
act for her and on her behalf and in her

	

10

	

4846-1093-0509.v4

 

-10-

 

 

stead
to execute and file any document and to do all other lawfully
permitted acts to further the prosecution, issuance and enforcement
of any such patent, patent application, copyright or other property
right with the same force and effect as if executed and delivered
by Executive; and

 

(v) at the request of
the Parent, and without expense to Executive, to execute such
documents and perform such other acts as the Parent deems necessary
or appropriate, for the Companies to obtain patents on such
inventions in a jurisdiction or jurisdictions designated by the
Parent, and to assign to the Companies or their respective
designees such inventions and any and all patent applications and
patents relating thereto.

 

Notwithstanding the
foregoing, any information, inventions, or discoveries (whether
patentable or not), or interest in any copyright and/or other
property right, developed, made or conceived of by Executive,
either alone or with others and irrespective of whether developed,
made or

conceived during
Executive’s employment with either Company, for the benefit
of one of the entities set forth on Exhibit A and relating to a
disease that such entity targets, shall be and remain the exclusive
property of such entity and not of the Companies.

 

9.

General:

 

(a) Successors and Assigns: The provisions
of this Agreement shall inure to the benefit of and be binding upon
the Companies, Executive and each and all of their respective
heirs, legal representatives, successors and assigns. The duties,
responsibilities and obligations of Executive under this Agreement
shall be personal and not assignable or delegable by Executive in
any manner whatsoever to any person, corporation, partnership,
firm, company, joint venture or other entity. Executive may not
assign, transfer, convey, mortgage, pledge or in any other manner
encumber the compensation or other benefits to be received by her
or any rights which she may have pursuant to the terms and
provisions of this Agreement.

 

(b) Amendments; Waivers: No provision of
this Agreement shall be modified, waived or discharged unless the
modification, waiver or discharge is agreed to in writing and
signed by Executive and by an authorized officer of the Parent
(other than Executive). No waiver by either party of any breach of,
or of compliance with, any condition or provision of this Agreement
by the other party shall be considered a waiver of any other
condition or provision or of the same condition or provision at
another time.

 

(c) Notices: Any notices to be given
pursuant to this Agreement by either party may be effected by
personal delivery or by overnight delivery with receipt requested.
Mailed notices shall be addressed to the parties at the addresses
stated below, but each party may change its or his/her address by
written notice to the other in accordance with this subsection
(c).Mailed notices to Executive shall be addressed as
follows:

 

Kathleen
Clarence-Smith Suite 520

 

-11-

 

 

1825 K
Street NW Washington, DC 20006

E-mail:
kcs@gt-pharmaceuticals.com

 

Mailed
notices to the Companies shall be addressed as follows: GT
Biopharma, Inc.

 

Georgetown
Translational Pharmaceuticals, Inc. Attention: Anthony J. Cataldo,
Executive Chairman 100 South Ashley Drive, Suite 600

Tampa,
FL 33602

 

 

(d) Entire Agreement: This Agreement
constitutes the entire employment agreement among Executive and the
Companies regarding the terms and conditions of her employment,
with the exception of (a) the agreement described in Section 7 and
(b) any stock option, restricted stock or other Company stock-based
award agreements among Executive and the Companies to the extent
not modified by this Agreement. This Agreement (including the other
documents referenced in the previous sentence) supersedes all prior
negotiations, representations or agreements among Executive and the
Companies, whether written or oral, concerning Executive's
employment by the Companies.

 

(e) Withholding Taxes: All payments made
under this Agreement shall be subject to reduction to reflect taxes
required to be withheld by law.

 

(f) Counterparts: This Agreement may be
executed by the Companies and Executive in counterparts, each of
which shall be deemed an original and which together shall
constitute one instrument.

 

(g) Headings: Each and all of the headings
contained in this Agreement are for reference purposes only and
shall not in any manner whatsoever affect the construction or
interpretation of this Agreement or be deemed a part of this
Agreement for any purpose whatsoever.

 

(h) Savings Provision: To the extent that
any provision of this Agreement or any paragraph, term, provision,
sentence, phrase, clause or word of this Agreement shall be found
to be illegal or unenforceable for any reason, such paragraph,
term, provision, sentence, phrase, clause or word shall be modified
or deleted in such a manner as to make this Agreement, as so
modified, legal and enforceable under applicable laws. The
remainder of this Agreement shall continue in full force and
effect.

 

(i) Construction: The language of this
Agreement and of each and every paragraph, term and provision of
this Agreement shall, in all cases, for any and all purposes, and
in any and all circumstances whatsoever be construed as a whole,
according to its fair meaning, not strictly for

 

-12-

 

or
against Executive or the Companies, and with no regard whatsoever
to the identity or status of any person or persons who drafted all
or any portion of this Agreement.

 

(j) Further
Assurances: From time to time,
at the Companies' request and without further consideration,
Executive shall execute and deliver such additional documents and
take all such further action as reasonably requested by the
Companies to be necessary or desirable to make effective, in the
most expeditious manner possible, the terms of this Agreement and
to provide adequate assurance of Executive's due performance
hereunder.

 

(k) Governing
Law: Executive and the
Companies agree that this Agreement shall be interpreted in
accordance with and governed by the laws of the State of
Delaware.

 

(1) Board Approval:
Each Company warrants to Executive
that the Board of Directors of such Company has ratified and
approved this Agreement, and that the Parent will cause the
appropriate disclosure filing to be made with the Securities and
Exchange Commission in a timely manner.

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the
date and year written below.

 

EXECUTIVE:

 

Date:
September 1,
2017

 

 ____________________________

Kathleen Clarence-Smith

 

GT BIOPHARMA, INC.

 

Date:

 

 ____________________________

Anthony
Cataldo, Executive Chairman

 

 

GEORGETOWN TRANSLATIONAL PHARMACEUTICALS, INC.

 

Date:

 

 ____________________________

Anthony
Cataldo, Executive Chairman

  

 

 

-13-

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