Document:

WELLS FARGO & COMPANY 8-K

 

Exhibit
4.1

 

 

[Face
of Note]

 

Unless
this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”),
to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to Cede
& Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

	CUSIP
NO. 95001B6E9
	FACE
                           AMOUNT: $_________

	
REGISTERED
NO. ___

 

WELLS
FARGO & COMPANY

 

MEDIUM-TERM
NOTE, SERIES S

 

Due
Nine Months or More From Date of Issue

 

Principal
at Risk Securities Linked to the Lowest Performing of the

S&P 500® Index, the Russell 2000® Index and

the Dow Jones Industrial Average® due August 31, 2023

 

 

WELLS
FARGO & COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (hereinafter called the
“Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for
value received, hereby promises to pay to CEDE & Co., or registered assigns, an amount equal to the Maturity Payment
Amount (as defined below) on the Stated Maturity Date (as defined below), unless this Security is automatically called prior to
the Stated Maturity Date as provided below under “Automatic Call,” and to pay Contingent Coupon Payments (as defined
below) on the Face Amount of this Security to the extent provided herein on the Contingent Coupon Payment Dates specified herein
at the Contingent Coupon Rate (as defined below) until the earlier of the Stated Maturity Date and the Call Settlement Date (as
defined below), if any. The “Initial Stated Maturity Date” shall be August 31, 2023. If the Final Calculation
Day (as defined below) is not postponed, the Initial Stated Maturity Date will be the “Stated Maturity Date.”
If the Final Calculation Day is postponed, the “Stated Maturity Date” shall be the later of (i) the Initial
Stated Maturity Date and (ii) three Business Days (as defined below) after the last Final Calculation Day as postponed.

“Face
Amount” shall mean, when used with respect to this Security, the amount set forth on the face of this Security as its
“Face Amount.”

    	 	 	 

    	 

    

Automatic
Call

If
the Closing Level (as defined below) of the Lowest Performing Index (as defined below) on any of the quarterly Calculation Days
(as defined below) from August 2019 to May 2023, inclusive, is greater than or equal to its Starting Level (as defined below),
this Security will be automatically called by the Company, and on the related Call Settlement Date the Holder hereof will receive
the Call Price (as defined below) plus a final Contingent Coupon Payment. Unless the Company defaults in the payment of the Call
Price plus the final Contingent Coupon Payment, this Security will cease to be outstanding on such Call Settlement Date, no additional
Contingent Coupon Payments will be payable on this Security and the Holder hereof will have no further rights under this Security
after such Call Settlement Date. The Holder hereof will not receive any notice from the Company in the event this Security is
automatically called pursuant to the terms hereof. The “Call Price” is equal to the Face Amount of this Security.
The “Call Settlement Date” for a Calculation Day shall be three Business Days after such Calculation Day, as
such Calculation Day may be postponed as provided herein. If a Calculation Day is postponed with respect to one or more Indices,
the related Call Settlement Date will be three Business Days after the last Calculation Day as postponed.

Payment
of Contingent Coupon Payments, the Maturity Payment Amount and the Call Price

On
each quarterly Contingent Coupon Payment Date, the Company shall pay a Contingent Coupon Payment if, and only if, the Closing
Level of the Lowest Performing Index on the related Calculation Day is greater than or equal to its Coupon Threshold Level (as
defined below). A “Contingent Coupon Payment,” if payable as provided herein, shall be equal to the product
of (i) the Face Amount of this
Security,
(ii) the Contingent Coupon Rate, and (iii) 90/360. The “Contingent Coupon Payment Dates” shall be
the third Business Day following each Calculation Day, as each such Calculation Day may be postponed as herein provided, provided
that the Contingent Coupon Payment Date with respect to the Final Calculation Day will be the Stated Maturity Date. If a Calculation
Day is postponed with respect to one or more Indices, the related Contingent Coupon Payment Date will be three Business Days after
the last Calculation Day as postponed. The “Contingent Coupon Rate” is 6.011% per annum. Any Contingent Coupon
Payments will be rounded to the nearest cent, with one-half cent rounded upward.

Any
Contingent Coupon Payment so payable, and punctually paid or duly provided for, on any Contingent Coupon Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such Contingent Coupon Payment next preceding such Contingent Coupon Payment
Date. The Regular Record Date for a Contingent Coupon Payment Date shall be the date one Business Day prior to such Contingent
Coupon Payment Date.

Any
Contingent Coupon Payment not punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular
Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or
be paid at any time in any other lawful manner not

    	 	2	 

     

    

inconsistent
with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in the Indenture.

Payment
of any Contingent Coupon Payment on this Security will be made in immediately available funds at the office or agency of the Company
maintained for that purpose in the City of Minneapolis, Minnesota; provided, however, that, at the option of the Company, payment
of any Contingent Coupon Payment may be paid by check mailed to the Person entitled thereto at such Person’s last address
as it appears in the Security Register or by wire transfer to such account as may have been designated by such Person. Payments
of any Contingent Coupon Payment and the Maturity Payment Amount or the Call Price, as applicable, on this Security at Maturity
will be made against presentation of this Security at the office or agency of the Company maintained for that purpose in the City
of Minneapolis, Minnesota and at any other office or agency maintained by the Company for such purpose. Notwithstanding the foregoing,
for so long as this Security is a Global Security registered in the name of the Depositary, any payments on this Security will
be made to the Depositary by wire transfer of immediately available funds.

Payment
of the Maturity Payment Amount or the Call Price, as applicable, and any Contingent Coupon Payments on this Security will be made
in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private
debts.

Definitions
Relating to Maturity Payment Amount, the Call Price and Contingent Coupon Payments

If
this Security is not automatically called prior to the Stated Maturity Date as provided above under “Automatic Call,”
the “Maturity Payment Amount” of this Security will equal:

●

if the Ending Level of the Lowest Performing Index on the Final Calculation Day (as defined below) is greater than or equal
to its Downside Threshold Level: the Face Amount; or

 

●

if the Ending Level of the
Lowest Performing Index on the Final Calculation Day is less than its Downside Threshold Level:

 

 

 

All
calculations with respect to the Maturity Payment Amount will be rounded to the nearest one hundred-thousandth, with five one-millionths
rounded upward (e.g., 0.000005 would be rounded to 0.00001); and the Maturity Payment Amount will be rounded to the nearest cent,
with one-half cent rounded upward.

“Index”
shall mean each of the S&P 500 Index, the Russell 2000 Index and the Dow Jones Industrial Average.

The
“Pricing Date” shall mean August 27, 2018.

    	 	3	 

     

    

The
“Lowest Performing Index” for any Calculation Day will be the Index with the lowest Performance Factor on that
Calculation Day (as such Calculation Day may be postponed for one or more Indices as provided herein).

The
“Performance Factor” with respect to an Index on any Calculation Day is its Closing Level on such Calculation
Day divided by its Starting Level (expressed as a percentage).

The
“Starting Level” with respect to the S&P 500 Index is 2896.74,
its Closing Level on the Pricing Date, with respect to the Russell 2000 Index is 1728.406,
its Closing Level on the Pricing Date, and with respect to the Dow Jones Industrial Average is 26049.64,
its Closing Level on the Pricing Date.

The
“Ending Level” of an Index will be its Closing Level on the Final Calculation Day.

The
“Coupon Threshold Level” with respect to the S&P 500 Index is 2172.555,
which is equal to 75% of its Starting Level, with respect to the Russell 2000 Index is 1296.3045,
which is equal to 75% of its Starting Level, and with respect to the Dow Jones Industrial Average is 19537.23,
which is equal to 75% of its Starting Level.

The
“Downside Threshold Level” with respect to the S&P 500 Index is 1738.044,
which is equal to 60% of its Starting Level, with respect to the Russell 2000 Index is 1037.0436,
which is equal to 60% of its Starting Level, and with respect to the Dow Jones Industrial Average is 15629.784,
which is equal to 60% of its Starting Level.

The
“Closing Level” with respect to each Index on any Trading Day means the official closing level of that Index
reported by the relevant Index Sponsor on such Trading Day, as obtained by the Calculation Agent on such Trading Day from the
licensed third-party market data vendor contracted by the Calculation Agent at such time; in particular, taking into account the
decimal precision and/or rounding convention employed by such licensed third-party market data vendor on such date, subject to
the provisions set forth below under “—Market Disruption Events,” “—Adjustments to an Index”
and “—Discontinuance of an Index.”

“Index
Sponsor” shall mean the sponsor or publisher of an Index.

“Business
Day” shall mean a day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions
are authorized or required by law or regulation to close in New York, New York.

The
“Calculation Days” shall be the 28th day of each February, May, August and November, commencing
November 2018 and ending May 2023, and the Final Calculation Day. If any such day is not a Trading Day with respect to any Index,
such Calculation Day for each Index will be postponed to the next succeeding day that is a Trading Day with respect to each Index.
A Calculation Day for an Index is also subject to postponement due to the occurrence of a Market Disruption Event (as defined
below) with respect to such Index on such Calculation Day. The “Final Calculation Day” is August 28, 2023.
If a Market Disruption Event occurs or is continuing with respect to an Index on any Calculation Day, then such Calculation Day
for such Index will be postponed to the first succeeding Trading Day for such Index on which a Market Disruption Event for such
Index has not occurred and is not continuing; however, if such first

    	 	4	 

     

    

succeeding
Trading Day has not occurred as of the eighth Trading Day for such Index after the originally scheduled Calculation Day, that
eighth Trading Day shall be deemed to be the Calculation Day for such Index. If a Calculation Day has been postponed eight Trading
Days for an Index after the originally scheduled Calculation Day and a Market Disruption Event occurs or is continuing with respect
to such Index on such eighth Trading Day, the Calculation Agent will determine the Closing Level of such Index on such eighth
Trading Day in accordance with the formula for and method of calculating the Closing Level of such Index last in effect prior
to commencement of the Market Disruption Event, using the closing price (or, with respect to any relevant security, if a Market
Disruption Event has occurred with respect to such security, its good faith estimate of the value of such security at the Scheduled
Closing Time of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular trading session
of such Relevant Stock Exchange) on that day of each security included in such Index. As used herein, “closing price”
means, with respect to any security on any date, the Relevant Stock Exchange traded or quoted price of such security as of the
Scheduled Closing Time of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular
trading session of such Relevant Stock Exchange. Notwithstanding the postponement of a Calculation Day for an Index due to a Market
Disruption Event with respect to such Index on such Calculation Day, the originally scheduled Calculation Day will remain the
Calculation Day for any Index not affected by a Market Disruption Event on such day.

“Calculation
Agent Agreement” shall mean the Calculation Agent Agreement dated as of January 24, 2018 between the Company and
the Calculation Agent, as amended from time to time.

“Calculation
Agent” shall mean the Person that has entered into the Calculation Agent Agreement with the Company providing for, among
other things, the determination of whether this Security will be automatically called prior to stated maturity and whether a Contingent
Coupon Payment will be made, the Call Price, if any, and the Maturity Payment Amount, if any, which term shall, unless the context
otherwise requires, include its successors under such Calculation Agent Agreement. The initial Calculation Agent shall be Wells
Fargo Securities, LLC. Pursuant to the Calculation Agent Agreement, the Company may appoint a different Calculation Agent from
time to time after the initial issuance of this Security without the consent of the Holder of this Security and without notifying
the Holder of this Security.

Certain
Definitions 

A
“Trading Day” with respect to an Index means a day, as determined by the Calculation Agent, on which (i) the
Relevant Stock Exchanges with respect to each security underlying such Index are scheduled to be open for trading for their respective
regular trading sessions and (ii) each Related Futures or Options Exchange with respect to such Index is scheduled to be
open for trading for its regular trading session.

The
“Relevant Stock Exchange” for any security underlying an Index means the primary exchange or quotation system
on which such security is traded, as determined by the Calculation Agent.

    	 	5	 

     

    

The
“Related Futures or Options Exchange” for an Index means an exchange or quotation system where trading has
a material effect (as determined by the Calculation Agent) on the overall market for futures or options contracts relating to
such Index.

Adjustments
to an Index

If
at any time the method of calculating an Index or a Successor Equity Index, or the closing level thereof, is changed in a material
respect, or if an Index or a Successor Equity Index is in any other way modified so that such index does not, in the opinion of
the Calculation Agent, fairly represent the level of such index had those changes or modifications not been made, then the Calculation
Agent will, at the close of business in New York, New York, on each date that the closing level of such index is to be calculated,
make such calculations and adjustments as, in the good faith judgment of the Calculation Agent, may be necessary in order to arrive
at a level of an index comparable to such Index or Successor Equity Index as if those changes or modifications had not been made,
and the Calculation Agent will calculate the closing level of such Index or Successor Equity Index with reference to such index,
as so adjusted. Accordingly, if the method of calculating an Index or Successor Equity Index is modified so that the level of
such index is a fraction or a multiple of what it would have been if it had not been modified (e.g., due to a split or
reverse split in such equity index), then the Calculation Agent will adjust such Index or Successor Equity Index in order to arrive
at a level of such index as if it had not been modified (e.g., as if the split or reverse split had not occurred).

Discontinuance
of an Index

If
an Index Sponsor discontinues publication of an Index, and such Index Sponsor or another entity publishes a successor or substitute
equity index that the Calculation Agent determines, in its sole discretion, to be comparable to such Index (a “Successor
Equity Index”), then, upon the Calculation Agent’s notification of that determination to the Trustee and the Company,
the Calculation Agent will substitute the Successor Equity Index as calculated by the relevant Index Sponsor or any other entity
for purposes of calculating the Closing Level of such Index on any date of determination. Upon any selection by the Calculation
Agent of a Successor Equity Index, the Company will cause notice to be given to the Holder of this Security.

In
the event that an Index Sponsor discontinues publication of an Index prior to, and the discontinuance is continuing on, a Calculation
Day and the Calculation Agent determines that no Successor Equity Index is available at such time, the Calculation Agent will
calculate a substitute Closing Level for such Index in accordance with the formula for and method of calculating such Index last
in effect prior to the discontinuance, but using only those securities that comprised such Index immediately prior to that discontinuance.
If a Successor Equity Index is selected or the Calculation Agent calculates a level as a substitute for such Index, the Successor
Equity Index or level will be used as a substitute for such Index for all purposes, including the purpose of determining whether
a Market Disruption Event exists.

If
on a Calculation Day an Index Sponsor fails to calculate and announce the level of an Index, the Calculation Agent will calculate
a substitute Closing Level of such Index in accordance with the formula for and method of calculating such Index last in effect
prior to the failure, but using only those securities that comprised such Index immediately prior to that

    	 	6	 

     

    

failure;
provided that, if a Market Disruption Event occurs or is continuing on such day with respect to such Index, then the provisions
set forth above under the definition of “Calculation Days” shall apply in lieu of the foregoing.

Market
Disruption Events 

A
“Market Disruption Event” with respect to an Index means any of the following events as determined by the Calculation
Agent in its sole discretion:

(A)                       

The occurrence or existence of a material suspension of or limitation imposed on trading by the Relevant Stock Exchanges or otherwise
relating to securities which then comprise 20% or more of the level of such Index or any Successor Equity Index at any time during
the one-hour period that ends at the Close of Trading on that day, whether by reason of movements in price exceeding limits permitted
by those Relevant Stock Exchanges or otherwise.

 

(B)                       

The occurrence or existence of a material suspension of or limitation imposed on trading by any Related Futures or Options Exchange
or otherwise in futures or options contracts relating to such Index or any Successor Equity Index on any Related Futures or Options
Exchange at any time during the one-hour period that ends at the Close of Trading on that day, whether by reason of movements
in price exceeding limits permitted by the Related Futures or Options Exchange or otherwise.

 

(C)                       

The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the ability of market
participants in general to effect transactions in, or obtain market values for, securities that then comprise 20% or more of the
level of such Index or any Successor Equity Index on their Relevant Stock Exchanges at any time during the one-hour period that
ends at the Close of Trading on that day.

 

(D)                       

The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the ability of market
participants in general to effect transactions in, or obtain market values for, futures or options contracts relating to such
Index or any Successor Equity Index on any Related Futures or Options Exchange at any time during the one-hour period that ends
at the Close of Trading on that day.

 

(E)                       

The closure on any Exchange Business Day of the Relevant Stock Exchanges on which securities that then comprise 20% or more of
the level of such Index or any Successor Equity Index are traded or any Related Futures or Options Exchange with respect to such
Index or any Successor Equity Index prior to its Scheduled Closing Time unless the earlier closing time is announced by the Relevant
Stock Exchange or Related Futures or Options Exchange, as applicable, at least one hour prior to the earlier of (1) the actual
closing time for the regular trading session on such Relevant Stock Exchange or Related Futures or Options Exchange, as applicable,
and (2) the submission deadline for orders to be entered

 

    	 	7	 

     

    

 

into
the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, system for execution at such actual closing
time on that day.

 

(F)                       

The Relevant Stock Exchange for any security underlying such Index or Successor Equity Index or any Related Futures or Options
Exchange with respect to such Index or Successor Equity Index fails to open for trading during its regular trading session.

 

For
purposes of determining whether a Market Disruption Event has occurred with respect to an Index:

 

(1)      

the relevant percentage contribution of a security to the level of such Index or any Successor Equity Index will be based on a
comparison of (x) the portion of the level of such Index attributable to that security and (y) the overall level of
such Index or Successor Equity Index, in each case immediately before the occurrence of the Market Disruption Event;

 

(2)      

the “Close of Trading” on any Trading Day for such Index or any Successor Equity Index means the Scheduled
Closing Time of the Relevant Stock Exchanges with respect to the securities underlying such Index or Successor Equity Index on
such Trading Day; provided that, if the actual closing time of the regular trading session of any such Relevant Stock Exchange
is earlier than its Scheduled Closing Time on such Trading Day, then (x) for purposes of clauses (A) and (C) of the definition
of “Market Disruption Event” above, with respect to any security underlying such Index or Successor Equity Index for
which such Relevant Stock Exchange is its Relevant Stock Exchange, the “Close of Trading” means such actual closing
time and (y) for purposes of clauses (B) and (D) of the definition of “Market Disruption Event” above, with
respect to any futures or options contract relating to such Index or Successor Equity Index, the “Close of Trading”
means the latest actual closing time of the regular trading session of any of the Relevant Stock Exchanges, but in no event later
than the Scheduled Closing Time of the Relevant Stock Exchanges;

 

(3)      

the “Scheduled Closing Time” of any Relevant Stock Exchange or Related Futures or Options Exchange on any Trading
Day for such Index or any Successor Equity Index means the scheduled weekday closing time of such Relevant Stock Exchange or Related
Futures or Options Exchange on such Trading Day, without regard to after hours or any other trading outside the regular trading
session hours; and

 

(4)      

an “Exchange Business Day” means any Trading Day for such Index or any Successor Equity Index on which each
Relevant Stock Exchange for the securities underlying such Index or any Successor Equity Index and each Related Futures or Options
Exchange with respect to such Index or any Successor Equity Index are open for trading during their respective regular trading
sessions, notwithstanding any such Relevant Stock Exchange or Related Futures or Options Exchange closing prior to its Scheduled
Closing Time.

 

    	 	8	 

     

    

Calculation
Agent

The
Calculation Agent will determine whether this Security will be automatically called prior to stated maturity and whether a Contingent
Coupon Payment will be made, the Call Price, if any, and the Maturity Payment Amount, if any. In addition, the Calculation Agent
will (i) determine if adjustments are required to the Closing Level of an Index under the circumstances described in this
Security, (ii) if publication of an Index is discontinued, select a Successor Equity Index or, if no Successor Equity Index
is available, determine the Closing Level of such Index under the circumstances described in this Security, and (iii) determine
whether a Market Disruption Event has occurred.

The
Company covenants that, so long as this Security is Outstanding, there shall at all times be a Calculation Agent (which shall
be a broker-dealer, bank or other financial institution) with respect to this Security.

All
determinations made by the Calculation Agent with respect to this Security will be at the sole discretion of the Calculation Agent
and, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holder of this Security.

Redemption
and Repayment

This
Security is not subject to repayment at the option of the Holder hereof prior to August 31, 2023. Except as set forth above under
“Automatic Call,” this Security is not subject to redemption prior to August 31, 2023. This Security is not entitled
to any sinking fund.

Acceleration

If
an Event of Default, as defined in the Indenture, with respect to this Security shall occur and be continuing, the Maturity Payment
Amount (calculated as set forth in the next two sentences) of this Security may be declared due and payable in the manner and
with the effect provided in the Indenture. The amount payable to the Holder hereof upon any acceleration permitted under the Indenture
will be equal to the Maturity Payment Amount hereof calculated as provided herein, plus a portion of a final Contingent Coupon
Payment, if any. The Maturity Payment Amount and any final Contingent Coupon Payment will be calculated as though the date of
acceleration were the Final Calculation Day. The final Contingent Coupon Payment, if any, will be prorated from and including
the immediately preceding Contingent Coupon Payment Date to but excluding the date of acceleration.

 

 

 

Reference
is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

    	 	9	 

     

    

Unless
the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature
or its duly authorized agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not
be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

 

[The
remainder of this page has been left intentionally blank]

 

 

    	 	10	 

     

    

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

DATED:

 

	 	WELLS FARGO & COMPANY
	 	 

 

	 	By:  	 
	 	 	 
	 	 	Its:
	 	 	 
	 	 	 
	 	Attest:	 
	 	 	 
	 	 	Its:

 

 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

This is one of the Securities of the

series designated therein described

in the within-mentioned Indenture.

 

 

	CITIBANK, N.A., 
 as Trustee	 
	 	 	 
	 	 	 
	By: 	 	 
	 	Authorized Signature	 
	 	 	 
	 	OR	 
	 	 	 
	WELLS FARGO BANK, N.A., 

    as Authenticating Agent for the Trustee	 
	 	 	 
	 	 	 
	By: 		 
	 	Authorized Signature	 

 

 

    	 	11	 

     

    

 

[Reverse
of Note]

 

 

WELLS
FARGO & COMPANY

 

MEDIUM-TERM
NOTE, SERIES S

 

Due
Nine Months or More From Date of Issue

 

Principal
at Risk Securities Linked to the Lowest Performing of the

S&P 500® Index, the Russell 2000® Index and

the Dow Jones Industrial Average® due August 31, 2023

 

This
Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued
and to be issued in one or more series under an indenture dated as of February 21, 2017, as amended or supplemented from
time to time (herein called the “Indenture”), between the Company and Citibank, N.A., as Trustee (herein called
the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of the series of the Securities designated as Medium-Term Notes,
Series S, of the Company. The amount payable on the Securities of this series may be determined by reference to the performance
of one or more equity-, commodity- or currency-based indices, exchange traded funds, securities, commodities, currencies, statistical
measures of economic or financial performance, or a basket comprised of two or more of the foregoing, or any other market measure
or may bear interest at a fixed rate or a floating rate. The Securities of this series may mature at different times, be redeemable
at different times or not at all, be repayable at the option of the Holder at different times or not at all and be denominated
in different currencies.

The
Securities are issuable only in registered form without coupons and will be either (a) book-entry securities represented
by one or more Global Securities recorded in the book-entry system maintained by the Depositary or (b) certificated securities
issued to and registered in the names of, the beneficial owners or their nominees.

The
Company agrees, to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of
interest against a Holder of this Security.

Modification
and Waivers 

The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by
the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding
of all series to be affected, acting together as a class. The Indenture also contains provisions permitting the Holders of a majority
in principal amount of the Securities of all series at

    	 	12	 

     

    

the
time Outstanding affected by certain provisions of the Indenture, acting together as a class, on behalf of the Holders of all
Securities of such series, to waive compliance by the Company with those provisions of the Indenture. Certain past defaults under
the Indenture and their consequences may be waived under the Indenture by the Holders of a majority in principal amount of the
Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series. Solely
for the purpose of determining whether any consent, waiver, notice or other action or Act to be taken or given by the Holders
of Securities pursuant to the Indenture has been given or taken by the Holders of Outstanding Securities in the requisite aggregate
principal amount, the principal amount of this Security will be deemed to be equal to the amount set forth on the face hereof
as the “Face Amount” hereof. Any such consent or waiver by the Holder of this Security shall be conclusive
and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Security.

Defeasance

Section 403
and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the Indenture, relating
to defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants, upon
compliance by the Company with certain conditions set forth therein, shall not apply to this Security. The remaining provisions
of Section 401 of the Indenture shall apply to this Security.

Authorized
Denominations

This
Security is issuable only in registered form without coupons in denominations of $1,000 or any amount in excess thereof which
is an integral multiple of $1,000.

Registration
of Transfer

Upon
due presentment for registration of transfer of this Security at the office or agency of the Company in the City of Minneapolis,
Minnesota, a new Security or Securities of this series, with the same terms as this Security, in authorized denominations for
an equal aggregate Face Amount will be issued to the transferee in exchange herefor, as provided in the Indenture and subject
to the limitations provided therein and to the limitations described below, without charge except for any tax or other governmental
charge imposed in connection therewith.

This
Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the Company that
it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing
agency registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not appointed within 90 days
after the Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines
that this Security shall be exchangeable for definitive Securities in registered form and notifies the Trustee thereof or (z)
an Event of Default with respect to the Securities represented hereby has occurred and is continuing. If this Security is exchangeable
pursuant to the preceding sentence, it shall be exchangeable for definitive Securities in registered form, bearing interest at
the same rate, having the same date of issuance, Stated Maturity Date and other terms and of authorized denominations aggregating
a like amount.

    	 	13	 

     

    

This
Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary
to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary
or a nominee of such successor. Except as provided above, owners of beneficial interests in this Global Security will not be entitled
to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under
the Indenture.

Prior
to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this
Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

Obligation
of the Company Absolute

No
reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the Contingent Coupon Payments, if any, and the Maturity Payment Amount or
the Call Price, as applicable, on this Security at the times, place and rate, and in the coin or currency, herein prescribed,
except as otherwise provided in this Security.

No
Personal Recourse

No
recourse shall be had for the payment of any Contingent Coupon Payments or the Maturity Payment Amount or the Call Price, as applicable,
on this Security or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or
any indenture supplemental thereto, against any incorporator, stockholder, officer or director, as such, past, present or future,
of the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement
of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration
for the issuance hereof, expressly waived and released.

Defined
Terms

All
terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless
otherwise defined in this Security.

Governing
Law

This
Security shall be governed by and construed in accordance with the law of the State of New York, without regard to principles
of conflicts of laws.

    	 	14	 

     

    

 

ABBREVIATIONS

 

The
following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written
out in full according to applicable laws or regulations:

	 	 	 
	TEN COM  	--	as tenants in common
	 	 	 
	TEN ENT  	--	as tenants by the entireties
	 	 	 
	JT TEN  	--	as joint tenants with right
	 	 	of survivorship and not
	 	 	as tenants in common
	 	 	 

 

	UNIF GIFT MIN ACT --	 	  Custodian  	 
	 	(Cust)	 	(Minor)

 

Under Uniform Gifts to Minors Act

 

 

	(State)	 

 

Additional abbreviations
may also be used though not in the above list.

 

 

FOR VALUE RECEIVED,
the undersigned hereby sell(s) and transfer(s) unto

 

Please Insert Social Security or

Other Identifying Number of Assignee

 

	 	 

 

 

	 
	 
	 

 (Please
print or type name and address including postal zip code of Assignee)

 

 

    	 	15	 

     

    

 

the
within Security of WELLS FARGO & COMPANY and does hereby irrevocably constitute and appoint __________________ attorney to
transfer the said Security on the books of the Company, with full power of substitution in the premises.

 

 

Dated:
_________________________

 

	 	 
	 	 
	 	 
	 	 

 

 

 

NOTICE:
The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular,
without alteration or enlargement or any change whatever.

 

   

 

    	 	16inmune_ex104.htm

EXHIBIT 10.4 

 

EXCLUSIVE LICENSE AGREEMENT

 

THIS LICENSE AGREEMENT hereinafter (“Agreement”) is made as of October 29, 2015 (hereinafter the “Effective Date”) by and between:

 

IMMUNE VENTURES, LLC, a limited liability corporation organized and existing under the laws of the State of Washington, having an office and its principal place of business at 1001 4th Avenue, Suite 4500, Seattle, WA 98154 (hereinafter “Licensor”), and

 

INmune BIO, Inc., a corporation organized and existing under the laws of the State of Nevada, having an office and its principal place of business at 1224 Prospect Street, Suite 150, La Jolla, CA 92037 (hereinafter “Licensee”).

 

Licensor and Licensee will be referred to herein, on occasion, individually as “Party” or collectively as “Parties”.

 

RECITALS

 

WHEREAS, Licensor is the owner by assignment of all legal right, title, and interest in the invention entitled “IN VIVO ACTIVATION OF NATURAL KILLER CELLS” (the “Invention”) and to the patents and patent applications under Patent Rights as defined below, which are directed to the Invention; and

 

WHEREAS, Licensee wishes to acquire, and Licensor desires to grant, an exclusive license under the Patent Rights to make, use, sell, offer for sale, and import products, methods, and services in accordance with the terms herein.

 

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the sufficiency of which is hereby acknowledged, Licensor and Licensee, intending to be legally bound, hereto agree as follows:

 

ARTICLE 1

DEFINITIONS

 

1.1 The term “Affiliate” shall mean any entity which controls, is controlled by or is under common control with Licensee. An entity shall be regarded as in control of another entity for purposes of this definition if it owns or controls more than fifty percent (50%) of the shares of the subject entity entitled to vote in the election of directors (or, in the case of an entity that is not a corporation, more than fifty percent (50%) control in the election or appointment of the corresponding managing authority).

 

1.2 The term "Commercial Sale" shall mean any transaction that transfers to a purchaser, for value, physical possession of and title to a Licensed Product, after which transfer the seller has no right or power to determine the purchaser's resale price. Transfer of possession and title to an Affiliate or Sublicensee shall not constitute a Commercial Sale unless the Affiliate or Sublicensee is an end user of the Licensed Product.

 

	 
	Page 1 of 18
	

 
	 

 

1.3 The term "FDA" shall mean the United States Food and Drug Administration or foreign equivalent.

 

1.4 The term “Field” or “Field of Use” shall mean all applications of the Patent Rights.

 

1.5 The term “Licensed Product” shall mean any product which is composed of or incorporates, or is directly or indirectly discovered, developed and/or identified using, the Patent Rights. The term Licensed Product shall also include any product, the manufacture, use, importation, sale or offer for sale of which in the absence of this license would infringe the Patent Rights.

 

1.6 The term “Licensed Service” shall mean any therapeutic or other method or service which is described in or dependent on the Patent Rights or which otherwise could not be practiced but for the Patent Rights.

 

1.7 The term “Net Sales” "shall mean the gross sales by Licensee, its Affiliates or Sublicensees in the Commercial Sale of Licensed Product less the following items if separately stated on purchase orders, invoices, or other documents of sale:

 

	
 
	(a)	outbound shipping, storage, packing and insurance expenses, each as actually paid or allowed;
	
 
	
 
	
 

	
 
	(b)	amounts repaid or credited by reason of rejections, defects or returns or because of retroactive price reductions; and
	
 
	
 
	
 

	
 
	(c)	sales and other excise taxes, use taxes, tariffs, license fees and duties actually paid or allowed.

 

No deductions shall be made for commissions paid to individuals whether they are with independent sales agencies or regularly employed by Licensee, its Affiliates or Sublicensees and on its payroll, or for cost of collections. Net Sales shall occur on the date of billing for a Licensed Product. If a Licensed Product is distributed at a discounted price that is substantially lower than the customary price charged by Licensee, or distributed for non-cash consideration (whether or not at a discount), Net Sales shall be calculated based on the non-discounted price of the Licensed Product charged to an independent third party during the same reporting period or, in the absence of such sales, on the fair market value of the Licensed Product.

 

Net sales shall include the fair market value of any non-cash consideration received by Licensee its Affiliates or Sublicensees for the sale, lease, or transfer of Licensed Products.

 

1.8 The term “Party” shall mean either Licensor or Licensee, and "the Parties" shall mean Licensor and Licensee.

 

	 
	Page 2 of 18
	

 
	 

 

1.9 The term "Patent Costs" shall mean out-of-pocket expenses incurred by Licensor in connection with the preparation, filing, prosecution, maintenance, and interference proceedings of patent applications and patents, including the fees and expenses of attorneys and patent agents, filing fees and maintenance fees, but excluding costs associated with any patent infringement actions.

 

1.10 The term “Patent Rights” shall mean inventions claimed in below- described (a), (b), (c), (d) and (e), and inventions not claimed but for which support is found in (a), (b), (c), (d) and (e), as follows:

 

	
 
	(a)	Patent applications listed in Exhibit A and patents issuing therefrom.
	
 
	
 
	
 

	
 
	(b)	Patents listed in Exhibit A.
	
 
	
 
	
 

	
 
	(c)	Non-provisional applications, divisional applications and continuation applications that claim the benefit of priority to any of the patents described in (a) or (b) or patent applications described in (a) or (b) and patents issuing therefrom.
	
 
	
 
	
 

	
 
	(d)	Continuation-in-part applications that claim the benefit of priority to any of the patents described in (a) or (b) and patent applications described in (a) or (b) and patents issuing therefrom.
	
 
	
 
	
 

	
 
	(e)	Reissue patents and reexamination patents related to patents described in (a), (b), (c) and (d).

  

1.11 The term “Sale” or “Sold” shall mean the transfer or disposition of a Licensed Product or provision of a Licensed Service to an entity other than Licensee or an Affiliate for value, whether in the form of cash payments, royalties, fees, stock, or any other form of compensation. Sales of Licensed Product or provision of a Licensed Service by Licensee to its Affiliates or Sublicensees, or among them, shall not be deemed a Sale for the purposes of this definition if such Sale is made for the purpose of reselling the Licensed Product or the results of a Licensed Service to a third party. For the purposes of determining Net Sales, a Sale shall be deemed to have occurred when an invoice is generated for such Licensed Product or Licensed Service.

 

1.12 The term “Sublicensee” shall mean any non-Affiliate third party to whom Licensee or its Affiliates has granted the right to manufacture, sell, offer for sale and/or use Licensed Products, Licensed Service or Patent Rights as granted in this license. It is understood and agreed that the foregoing definition of Sublicensee shall not limit the scope of sublicenses that Licensee may grant hereunder.

 

1.13 The term “Third Party” shall mean a person or entity who or which is neither a Party nor an Affiliate of a Party.

 

1.14 The term “Valid Patent Claim” shall mean shall mean a claim of an issued and unexpired patent or a pending claim in a pending patent application within the Patent Rights which has not been (i) revoked or held unenforceable or invalid by a decision of a court or other governmental agency of competent jurisdiction, which is unappealable, or is unappealed within the time allowed for appeal, or (ii) disclaimed.

 

	 
	Page 3 of 18
	

 
	 

 

ARTICLE 2

REPRESENTATIONS AND WARRANTIES

 

2.1 Each party represents and warrants to the other that:

 

	
 
	(a)	It validly exists under the laws of its jurisdiction of incorporation, with full power and authority to conduct its business as currently owned or licensed and conducted; and
	
 
	
 
	
 

	
 
	(b)	It has the corporate power and authority to execute and deliver this Agreement, and to carry out all the terms and provisions hereof to be carried out by it; and
	
 
	
 
	
 

	
 
	(c)	The execution and delivery of this Agreement has been duly authorized by all necessary corporate action; and
	
 
	
 
	
 

	
 
	(d)	This Agreement has been duly executed and delivered and is a legal, valid and binding obligation enforceable in accordance with its terms.

 

2.2 Licensor represents and warrants to Licensee that:

 

	
 
	(a)	Licensor has not previously granted and will not grant any rights under the Patent Rights that are inconsistent with the rights and licenses granted to Licensee herein; and
	
 
	
 
	
 

	
 
	(b)	to the best of its knowledge as of the Effective Date, without prior research, there are no claims of any third parties that would call into question the rights of Licensor to grant to Licensee the rights and licenses contemplated hereunder; and
	
 
	
 
	
 

	
 
	(c)	Licensor has received and currently holds valid and effective assignments of Inventor’s rights to the Patent Rights.

 

2.3 EXCEPT AS PROVIDED IN THIS ARTICLE 2, NEITHER PARTY MAKES ANY WARRANTIES OR CONDITIONS (EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE) WITH RESPECT TO THE SUBJECT MATTER HEREOF.

 

2.4 EXCEPT AS OTHERWISE EXPRESSLY SET FORTH, LICENSOR AND ITS RESPECTIVE DIRECTORS, OFFICERS AND EMPLOYEES MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, VALIDITY OF PATENT RIGHTS, EITHER ISSUED OR PENDING, AND THE ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE. IN NO EVENT SHALL LICENSOR OR ITS DIRECTORS, OFFICERS AND EMPLOYEES BE LIABLE FOR INCIDENTIAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING ECONOMIC DAMAGE OR INJURY TO PROPERTY OR LOST PROFITS, REGARDLESS OF WHETHER LICENSOR SHALL BE ADVISED, SHALL HAVE OTHER REASON TO KNOW, OR IN FACT SHALL KNOW OF THE POSSIBILITY.

 

	 
	Page 4 of 18
	

 
	 

 

ARTICLE 3

GRANT OF LICENSE RIGHTS

 

3.1 LICENSOR hereby grants to LICENSEE, subject to all the terms and conditions of this Agreement, an exclusive, worldwide, sub-licensable, royalty-bearing license (hereinafter “License”) to the Patent Rights in the Field, including the right to use, market, distribute, make, have made, sell, have sold, offer to sell, import and export Licensed Products and Licensed Services (hereinafter “License”).

 

3.2 LICENSEE shall have a right of first refusal (ROFR) to incorporate into this license agreement any improvements or additions to the Patent Rights in the Field that may be developed or procured by LICENSOR subsequent to the effective date hereof. LICENSOR will timely communicate to LICENSEE the availability of any such improvements or additions to the Patent Rights, and LICENSEE will timely exercise or refuse its ROFR, wherein upon exercising its ROFR, such improvements or additions to the Patent Rights shall be incorporated into this license agreement by way of an amendment to Exhibit A which shall be signed by a representative of LICENSEE, and thereafter all rights and obligations of the parties as set forth in this license agreement, including sections 7.1 and 7.2, shall be considered in accordance with the amended Exhibit A.

 

3.3 LICENSEE shall have the right to extend this License to any Affiliate provided that such Affiliate consents to be bound by this Agreement to the same extent as LICENSEE and provided that LICENSEE provides a copy of such prior written consent to LICENSOR within thirty (30) days of such prior written consent.

 

3.4 Any sublicenses granted by LICENSEE under this License shall be consistent with this Agreement and shall protect the rights of LICENSOR. No such sublicense agreement shall contain any provision which would cause it to extend beyond the term of this Agreement. LICENSEE will notify LICENSOR within 30 (thirty) days of granting a sublicense and will provide LICENSOR a true and correct copy of said sublicense agreement in English within forty-five (45) days of signature. All sublicenses shall be assignable to LICENSOR in the event that this License is terminated or converted to non-exclusive.

 

ARTICLE 4

CONSIDERATION

 

In consideration of the license rights granted by LICENSOR to LICENSEE under this Agreement, LICENSEE will make to LICENSOR the following payments:

 

4.1 Milestone payments, non-creditable and non-refundable, due upon the achievement of certain events in the development of the Licensed Products:

 

	
Each Phase I initiation 
	
 
	$	25,000.00	
 

	
Each Phase II initiation
	
 
	$	250,000.00	
 

	
Each Phase III initiation
	
 
	$	350,000.00	
 

	
Each NDA / EMA MA filing
	
 
	$	1,000,000.00	
 

	
Each NDA / EMA MA awarded
	
 
	$	9,000,000.00	
 

 

With respect to the above Milestone payments in this Section 4.1:

“PhaseI” shall mean a first indication trial where safety and dose finding are the primary goals;

“Each Phase I initiation” shall mean a separate payment to LICENSOR is required for each distinct indication for which Phase I is initiated;

“PhaseII” shall mean any trial where a change in a surrogate marker or clinical end-point is the primary goal;

“Each Phase II initiation” shall mean a separate payment to LICENSOR is required for each distinct indication for which Phase II is initiated;

“PhaseIII” shall mean any pivotal trial that will be the basis for regulatory approval;

“Each Phase III initiation” shall mean a separate payment to LICENSOR is required for each distinct indication for which Phase III is initiated;

“Each NDA / EMA MA filing” shall mean a separate payment to LICENSOR is required for each distinct indication for which a marketing authorization is filed with a regulatory authority; and

“Each NDA / EMA MA awarded” shall mean a separate payment to LICENSOR is required for each indication for which a marketing authorization is awarded by a regulatory authority.

 

If a Phase II trial becomes a pivotal trial that can be used as a registration trial, and a regulatory authority provides indication of such in writing, upon communication of said writing to LICENSEE, LICENSOR will be deemed to have met the equivalent of a Phase III initiation, and the Phase III Milestone payment will become payable to LICENSOR as if Phase III initiation has been made under this Section 4.1.

 

LICENSEE shall notify LICENSOR in writing of the achievement of each milestone, within fifteen (15) days of the achievement of each milestone event and shall pay the applicable milestone payment to LICENSOR within thirty (30) days of the achievement of the milestone.

 

Any milestone event described in this Section 4.1 will be deemed to have been achieved by LICENSEE if achieved by an Affiliate or a Sublicensee, and LICENSEE shall be obligated to make the milestone payments set forth in this Section 4.1 irrespective of whether the milestone is achieved by LICENSEE, an Affiliate, and/or a Sublicensee.

 

	 
	Page 5 of 18
	

 
	 

 

4.2 Running royalties on Net Sales of Licensed Product or Licensed Services:

 

	
 
	(a)	In countries where a Valid Patent Claim of the Patent Rights exist, a royalty of Nine Percent (9%) of Net Sales of each Licensed Product or Licensed Service for the remaining life of each patent, on a country by country basis; and
	
 
	
 
	
 

	
 
	(b)	In the event a Licensed Product or Licensed Service is sold for other than cash, the royalty to be paid will be based on the Net Sales price of a comparable Licensed Product or Licensed Service in the United States.
	
 
	
 
	
 

	
 
	(c)	In the event that a Licensed Product or Licensed Service is marketed in combination with any other product and is not separately priced, the earned royalty for such Licensed Product or Licensed Service shall be based on its stand-alone price.
	
 
	
 
	
 

	
 
	(d)	Should LICENSEE be required to pay royalties to a third party based on its manufacture and sale of Licensed Products or provision of Licensed Services subject to patent(s) of such third party, the royalty rate hereunder shall be reduced by an equitable amount to be determined through good faith negotiations between LICENSOR and LICENSEE, provided that (i) the use of such patent(s) is reasonably required in connection with such manufacture and sale or service and (ii) the royalty rate is not reduced to less than one-half of the rate specified in this section.
	
 
	
 
	
 

	
 
	(e)	ales of Licensed Products or Licensed Services by LICENSEE to its Affiliates or to Sublicensees, or among them, shall not be deemed a sale subject to royalty. Only one (1) royalty is to be paid on any Licensed Product or Licensed Service.

 

ARTICLE 5

PAYMENT, RECORDS AND REPORTS

 

5.1 Beginning in 2016, LICENSEE shall deliver to LICENSOR a true and accurate report, giving such particulars of the business conducted by LICENSEE, its Affiliates, and its Sublicensees, on a country-by-country basis, during each three (3) calendar months preceding March 31, June 30, September 30 and December 31, as are pertinent to an account for payments hereunder. Such reports shall be due to LICENSOR on April 30, July 31, October 31 and January 31 of each year and shall include at least:

 

	
 
	(a)	a detailed description and accounting of all LICENSEE’s clinical development, marketing and business development efforts to commercially develop Licensed Products and Licensed Services;
	
 
	
 
	
 

	
 
	(b)	notice of achievement of any events under Section 6.2 and any corresponding Milestone payments due under Section 4.1 herein;

 

	 
	Page 6 of 18
	

 
	 

 

	
 
	(c)	the quantities of Licensed Product produced and Licensed Services provided;
	
 
	
 
	
 

	
 
	(d)	the total Sales and Net Sales of such Licensed Product and Licensed Services;
	
 
	
 
	
 

	
 
	(e)	a detailed listing of all permitted deductions from the total amount of Net Sales of such Licensed Products and Licensed Services;
	
 
	
 
	
 

	
 
	(f)	the calculation of royalties thereon;
	
 
	
 
	
 

	
 
	(g)	the total royalties so computed and due LICENSOR; and
	
 
	
 
	
 

	
 
	(h)	designation of all payments received by LICENSEE from Sublicensees during the aforementioned periods.

 

Simultaneously with the delivery of each report, LICENSEE shall pay to LICENSOR the amount, if any, due for the period of such report. If no payments are due, it shall be so reported. The first report and payment due under this Section 5.1 of the Agreement is due within thirty (30) days after the conclusion of the period in which the first Sale of a Licensed Product or Licensed Service occurs.

 

5.2 Amounts payable under this Agreement shall be paid in U.S. dollars by check or wire transfer to “IMMUNE VENTURES, LLC”. All payments due under this Agreement shall be sent to:

 

	
NAME:
	
Immune Ventures, LLC

	
ADDRESS:
	
1001 4th Ave., Suite 4500, Seattle, WA 98154

  

Such payments shall be subject to applicable law and regulations. Net Sales of Licensed Products or Licensed Services not denominated in U.S. dollars and the royalties payable thereon shall first be determined in the currency in which such Licensed Products or Licensed Services were Sold and shall then be converted into the equivalent number of U.S. dollars at the exchange rate published by The Wall Street Journal Eastern Edition as of each respective March 31, June 30, September 30 and December 31.

 

5.3 In the event that any payment due hereunder to LICENSOR is not received when due, that payment shall accrue interest beginning on the tenth calendar day following the due date thereof, calculated at the annual rate of the sum of the prime interest rate quoted by The Wall Street Journal Eastern Edition on the date said payment is due plus two percent (2%) interest, the interest being compounded on the last day of each calendar quarter, provided, however, that in no event shall said annual interest rate exceed the maximum legal interest rate for corporations. Each such royalty payment when made shall be accompanied by all interest so accrued. Said interest and the payment and acceptance thereof shall not negate or waive the right of LICENSOR to seek any other remedy, legal or equitable, to which it may be entitled because of the delinquency of any payment. Nothing in this Article 5.3 shall be construed as a waiver by LICENSOR of timely payment to LICENSOR from LICENSEE

 

	 
	Page 7 of 18
	

 
	 

 

5.4 During the term of this Agreement and for five (5) years thereafter, LICENSEE shall keep complete, true and correct records of its, its Affiliates' and its Sublicensees' Sales and Net Sales of Licensed Products and Licensed Services in sufficient detail to enable the royalties payable hereunder to be determined. LICENSEE shall permit LICENSOR or its representatives to periodically examine, upon ten (10) days prior written notice, but in no instance more than once per year, its books, ledgers, and records for the purpose of conducting an inspection and audit and to the extent necessary to verify any report required under this Agreement. Such books, ledgers, and records shall be available for inspection, audit, and copying by LICENSOR or LICENSOR’S representative or agent at LICENSEE’S principal place of business, during reasonable business hours. LICENSOR or LICENSOR’S representative or agent will be obliged to execute a reasonable confidentiality agreement prior to commencing any such inspection. LICENSEE will cooperate with LICENSOR or LICENSOR’S representatives in the performance of their inspection and audit, and LICENSEE agrees to cause its accountants and bookkeepers to cooperate fully in the inspection and audit. Such inspection and audit shall be at the sole expense of LICENSOR, provided, however, that in the event that the amount due to LICENSOR under this Agreement is determined to have been underpaid by more than five percent (5%), then LICENSEE shall pay the cost of such inspection and audit, the full amount of any underpayment, and accrued interest as stipulated in section 5.3 above.

 

ARTICLE 6

DUE DILIGENCE REQUIREMENTS

 

6.1 LICENSEE shall proceed diligently with the development of Licensed Products and Licensed Services and shall use its reasonable commercial efforts to bring Licensed Products and Licensed Services to market through a thorough, vigorous and diligent commercialization program, which shall include but not be limited to the development, marketing, promotion, distribution and sale of Licensed Products and Licensed Services

 

6.2 In partial satisfaction of the obligations of Paragraph 6.1 above, LICENSEE shall achieve the following events within the time frame set forth below:

 

	
 
	· 	Filing of IND or equivalent:
	
 
	
 
	
24 months from Effective Date

	
 
	
· 
	
Initiation of Phase I clinical trials or equivalent: 

	
 
	
 
	
36 months from Effective Date

	
 
	
· 
	
Initiation of Phase II clinical trials or equivalent:

	
 
	
 
	
60 months from successful completion of Phase I

	
 
	
·
	
Initiation of Phase III clinical trials or equivalent:

	
 
	
 
	
84 months from successful completion of Phase II

	
 
	
· 
	
Filing of NDA or equivalent:

	
 
	
 
	
96 months from successful completion of Phase III

 

	 
	Page 8 of 18
	

 
	 

 

If LICENSEE fails to achieve any of the development events set forth in this Article 6, and LICENSOR so notifies LICENSEE in writing, LICENSEE and LICENSOR will negotiate in good faith to determine how LICENSEE can either remedy such failure or achieve alternate development events. If LICENSEE fails to make any required efforts, after they are so determined, and does not remedy that failure within sixty (60) days of written notice by LICENSOR, then LICENSOR may, by written notice to LICENSEE, terminate this License or convert it to non-exclusive, at LICENSOR’S sole discretion.

 

6.3 It is acknowledged by the parties that development can be delayed by unforeseen and unusual consequences neither caused by nor under the control of LICENSEE. Should such delays cause LICENSEE to fail to complete any development event within the allotted time, the periods allotted may be extended by mutual agreement, following sufficient documentation of such delays by LICENSEE.

 

ARTICLE 7

PATENT PROSECUTION

 

7.1 LICENSOR shall prosecute and maintain all Patent Rights using counsel of its choosing. LICENSOR will consult with LICENSEE on the filing and prosecution of Patent Rights, will keep LICENSEE fully informed with respect thereto, and will provide LICENSEE with copies of all patent applications, patent office actions and/or other documents related to the prosecution and maintenance of Patent Rights. LICENSEE shall be entitled to review and comment upon all actions undertaken in the prosecution and maintenance of Patent Rights and LICENSOR shall consider and reasonably incorporate all such comments and advice.

 

7.2 LICENSEE will reimburse LICENSOR, no less frequently than quarterly and within thirty (30) days of mailing of invoice by LICENSOR, for all legal fees incurred in filing, securing, protecting, prosecuting, and maintaining Patent Rights, including any foreign filing, divisional, continuation, or reissue thereof during the term of this Agreement. This obligation to reimburse LICENSOR for all prosecution and maintenance costs related to Patent Rights shall continue for as long as this Agreement remains effective. If LICENSEE elects to abandon payment of the expenses of a particular patent or patent application within the Patent Rights, LICENSEE shall notify LICENSOR at least thirty (30) days prior to such action, but in no case later than thirty (30) days prior to any required action relating to the filing, prosecution, or maintenance of such patent or patent application. In such event, Exhibit A shall be amended to remove such patent or patent application therefrom, and all rights of LICENSEE with respect to that patent or patent application will terminate and LICENSOR shall have no further obligation to LICENSEE with respect to that patent or patent application.

 

ARTICLE 8

PATENT INFRINGEMENT & MARKING

 

8.1 Each Party agrees to notify the other promptly of any infringement of the licensed Patent Rights of which such Party becomes aware. LICENSEE shall have the first option to commence legal proceedings with respect to such infringement. Before LICENSEE commences legal proceedings with respect to any infringement of any such licensed Patent Rights (an “Action”), LICENSEE shall give careful consideration to the views of LICENSOR in making its decision whether or not to commence such an Action.

 

	 
	Page 9 of 18
	

 
	 

 

8.2. If LICENSEE elects to commence an Action as described above, LICENSEE will use reasonable efforts and attorneys of its choice to enforce the licensed Patent Rights or, subject to LICENSOR’S concurrence, may obligate an Affiliate or Sublicensee to carry out such Action on behalf of LICENSEE according to the terms set forth in this Article 8.

 

8.3 LICENSOR will have the option to participate, at its own cost, in any such Action, except that in the event that LICENSOR is requested by LICENSEE to join such Action, then LICENSEE shall pay all reasonable costs and expenses incurred by LICENSOR to so join.

 

8.4 Any monetary recovery or reimbursement (whether by settlement or judgment) in connection with an Action commenced by LICENSEE or its Affiliates or Sublicensees shall first be applied to reimburse LICENSEE, its Affiliates or its Sublicensees, if applicable, for all out-of-pocket expenses (including reasonable attorneys fees) incurred in prosecuting such Action and for the expenses of LICENSOR borne by LICENSEE hereunder, and then to reimburse LICENSOR for royalties withheld. Any remaining balance shall be shared equally by LICENSEE and LICENSOR.

 

8.5 In the event that LICENSEE elects not to exercise its option to prosecute an infringement of the licensed Patent Rights pursuant to this Article 8, LICENSOR may do so at its own cost and expense, controlling such Action and retaining all recoveries therefrom.

 

8.6 The Parties shall promptly inform one another in writing of any written notice to either Party of alleged infringement or misappropriation, based on the making, using, or selling of a Licensed Product or Licensed Service, of a Third Party’s intellectual property rights of which it shall become aware. Neither Party shall acknowledge to a Third Party the validity of any such allegation. The Parties shall each keep the other advised of all material developments in the said proceedings and shall cooperate with the other in the conduct of such defense

 

8.7 In accordance with the laws of the United States relating to the marking of patented articles, subsequent to the issuance of any patent in the United States within the Patent Rights, LICENSEE agrees, in accordance with applicable laws and regulations, to mark and to require every Affiliates and Sublicensee to mark every Licensed Product or Licensed Service covered by said patent. All Licensed Products shipped to or sold in other countries shall be marked in such a manner as to conform with the patent laws and practices of the country of manufacture or sale.

 

	 
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ARTICLE 9

INDEMNIFICATION, PRODUCT LIABILITY& INSURANCE

 

9.1 LICENSEE will protect, defend, hold harmless and indemnify LICENSOR, and their respective directors, officers, managers, employees, and agents, and the insurers, successors and assigns of any of the foregoing (collectively, the "Indemnitees") at the expense of LICENSEE for and from any and all claims, causes of action, court or administrative orders, and liability (including but not limited to product liability and strict liability) for any loss, expense (including reasonable attorney’s fees, court costs, any costs of settlement and other legal expenses), injury, damage, or act in conjunction with or arising out of (1) practice by LICENSEE, its Affiliates or its Sublicensees, their directors, officers, employees, contractors, subcontractors and agents, of the Patent Rights or (2) the design, manufacture, distribution or use of Licensed Products or Licensed Services.

 

9.2 LICENSEE agrees that the Indemnitees shall have no liability to LICENSEE or to any purchasers or users of Licensed Products for any claims, demands, losses, costs, or damages suffered by LICENSEE or purchasers or users of Licensed Products or Licensed Services, or any other party, which may result from personal injury, death, or property damage related to the manufacture, use or sale of such Licensed Products ("Claims"). LICENSEE agrees to defend, indemnify and hold harmless the Indemnitees from any such Claims, provided that (i) LICENSEE is promptly notified of any Claims, (ii) LICENSEE has the sole right to control and defend or settle any litigation within the scope of this indemnity, and (iii) all Indemnitees cooperate to the extent necessary in the defense of any Claims.

 

9.3 For so long as LICENSEE, its Affiliates or its Sublicensees manufactures, uses or sells any Licensed Products or Licensed Services, and prior to initiation of human clinical testing, LICENSEE shall, at its sole expense, procure and maintain in full force and effect policies of comprehensive general liability insurance with limits not less than one million dollars ($1,000,000) per occurrence and three million dollars ($3,000,000) in aggregate naming Indemnitees as additional insureds. Such comprehensive general liability insurance shall provide (i) product liability coverage and (ii) broad form contractual liability coverage for LICENSEE’s indemnification under Article 9.1. In the event the aforesaid product liability coverage does not provide for occurrence liability, LICENSEE shall maintain such comprehensive general liability insurance for a reasonable period of not more than seven (7) years after LICENSEE or its Affiliates or Sublicensees have ceased commercial distribution or use of any Licensed Product. Notwithstanding the foregoing, a plan of self-insurance reasonably expected to provide coverage comparable to the foregoing for recovery of anticipated claims shall satisfy LICENSEE’s obligation under this Article 9.

 

9.4 LICENSEE shall provide LICENSOR with written evidence of such insurance, including the policies and declarations pages, within thirty (30) days of obtaining such insurance. LICENSEE shall provide LICENSOR with notice at least fifteen (15) days prior to any cancellation, non-renewal or material change in such insurance, to the extent LICENSEE receives advance notice of such matters from its insurer. If LICENSEE does not obtain replacement insurance providing comparable coverage within sixty (60) days following the date of such cancellation, non-renewal or materials change, LICENSOR shall have the right to require that LICENSEE cease further clinical testing or commercial sales of Licensed Products until such insurance is obtained for such Licensed Products.

 

	 
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ARTICLE 10

USE OF NAMES AND CONFIDENTIALITY

 

10.1 Except as required by law or in the normal course of business identification and description, neither LICENSEE nor LICENSOR shall issue any press release or other public statements in connection with this Agreement intended for use in the public media without the express written approval of the other party, which approval shall not be unreasonably withheld.

 

10.2. "Confidential Information" shall mean any confidential or proprietary information furnished by one party to this Agreement (the "Disclosing Party") to the other party to this Agreement (the "Receiving Party") in connection with the performance of any obligation under this Agreement, provided that such information is specifically designated as confidential. Such Confidential Information includes, without limitation, tangible materials (such as prototype products), patent applications and materials related to the preparation, prosecution, and maintenance of any Patent Rights, trade secrets, know-how, inventions, invention disclosures or descriptions, technical data or specifications, testing methods, descriptions of research and development activities, research and development data and results, processes, and procedures.

 

10.3. Confidential Information that is disclosed in writing shall be marked with a legend indicating its confidential status (such as "Confidential" or "Proprietary"). Confidential Information that is disclosed orally or visually shall be documented in a written notice prepared by the Disclosing Party and delivered to the Receiving Party within thirty (30) days of the date of disclosure; such notice shall summarize the Confidential Information disclosed to the Receiving Party and reference the time and place of disclosure.

 

10.4. Except as provided below in Sections 10.5 and 10.6, during the Term and thereafter for a period of five (5) years, the Receiving Party shall (i) maintain all Confidential Information in strict confidence, using at least the same degree of care that the Receiving Party uses to protect its own confidential information, except that the Receiving Party may disclose or permit the disclosure of any Confidential Information to its directors, officers, employees, consultants, and advisors who are obligated to maintain the confidential nature of such Confidential Information and who reasonably need to know such Confidential Information for the performance of the Receiving Party's obligations under this Agreement; (ii) use all Confidential Information solely for the performance of the Receiving Party's obligations under this Agreement; and (iii) allow its directors, officers, employees, consultants, and advisors to reproduce the Confidential Information only to the extent reasonably necessary for the performance of the Receiving Party's obligations under this Agreement. All reproductions of Confidential Information made pursuant to this Section 10.4 shall be considered as being Confidential Information.

 

	 
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10.5. The obligations of the Receiving Party under Section 10.4 above shall not apply to the extent that the Receiving Party can demonstrate that certain Confidential Information (i) was in the public domain prior to the time of its disclosure under this Agreement; (ii) entered the public domain after the time of its disclosure under this Agreement through means other than an unauthorized disclosure resulting from an act or omission by the Receiving Party; (iii) was independently developed or discovered by the Receiving Party without use of the Confidential Information; (iv) is or was disclosed to the Receiving Party at any time, whether prior to or after the time of its disclosure under this Agreement, by a third party having no fiduciary relationship with the Disclosing Party and having no obligation of confidentiality with respect to such Confidential Information; and/or (v) is required to be disclosed to comply with applicable laws or regulations or with a court or administrative order, provided that the Disclosing Party receives reasonable prior written notice of such disclosure.

 

10.6. Receiving Party acknowledges that the Disclosing Party (or any third party entrusting its own information to the Disclosing Party) claims ownership of its Confidential Information in the possession of the Receiving Party. Upon the expiration or termination of this Agreement and at the written request of the Disclosing Party, the Receiving Party shall return to the Disclosing Party all originals, copies, and summaries of documents, materials, and other tangible manifestations of Confidential Information in the possession or control of the Receiving Party, except that the Receiving Party may retain one copy of the Confidential Information solely for record purposes.

 

10.7 LICENSEE shall not disclose any Confidential Information to any third party except: (i) in accordance with the exceptions recited in Section 10.4 of this Agreement; (ii) under a confidentiality agreement to a Sublicensee or potential Sublicensee; and/or (iii) with the prior written consent of LICENSOR. LICENSOR shall not disclose any Confidential Information to any third party except: (i) in accordance with the exceptions recited in Section 10.4 of this Agreement or (ii) with the written consent of LICENSEE.

 

ARTICLE 11

TERM & TERMINATION

 

11.1 Unless earlier terminated as hereinafter provided, the “Term” of this Agreement shall mean a period of time commencing on the Effective Date and ending, on a country by country basis, on the date of expiration of the last to expire of the Patent Rights in countries where Patent Rights exist. Thereafter, the Agreement shall expire automatically and LICENSEE shall have a fully paid up, perpetual, royalty-free license without further obligation to LICENSOR.

 

	 
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11.2 LICENSOR shall have the right to terminate this Agreement if LICENSEE fails to make any payment due hereunder and LICENSEE continues to fail to make the payment, either to LICENSOR directly or by placing any disputed amount into an interest bearing escrow account to be released when the dispute is resolved, for a period of sixty (60) days after receiving notice from LICENSOR specifying LICENSEE’S failure.

 

11.3 LICENSOR shall have the right to terminate this Agreement if LICENSEE fails to achieve any of the development events as set forth in Article 6, except the LICENSEE shall first be given an opportunity to remedy such failure in accordance with the provisions of 6.2.

 

11.4 Except as otherwise provided by law, this Agreement may be terminated with immediate effect (a) by either Party in the event of a material breach of this Agreement by the other Party which is not remedied within ninety (90) days from notice of such breach; or (b) by either Party, in any of the following events: bankruptcy, insolvency of the other Party, or, should any Party make an assignment for the benefit of creditors or commit an act of bankruptcy or file or have filed against it a petition in bankruptcy or reorganization proceedings.

 

11.5 Termination of this Agreement for any reason shall not release either party hereto from any liability, which at the time of such termination has already accrued to the other party.

 

11.6 In the event this Agreement is terminated for any reason, LICENSEE, its Affiliates, and its Sublicensees shall have the right to sell or otherwise dispose of the stock of any Licensed Products then on hand and fulfill all existing obligations for Licensed Services, subject to the payment to LICENSOR of any and all fees and royalties due thereupon, all to be sold or otherwise disposed of within six (6) months of termination of this Agreement. Articles 2 and 9 shall survive the termination of this Agreement, and Article 4 shall survive the termination of this Agreement until such time as LICENSEE has sold or otherwise disposed of all of its stock of any Licensed Products.

 

11.7 Upon termination of this Agreement by LICENSOR for any reason, any sublicense granted by LICENSEE hereunder shall survive and shall be assigned to LICENSOR by LICENSEE.

 

11.8 Article 2 (representations & warranties), Article 5.4 (maintenance of records), Article 9 (Indemnification, Product Liability & Insurance), Article 10 (Use of Names & Confidentiality), Article 14 (Dispute Resolution) and Article 15.1 (governing law) shall survive the expiration and any termination of this Agreement.

 

11.9 Except as otherwise provided in this Article 11, all rights and obligations of the parties under this Agreement shall terminate upon the expiration or termination of this Agreement.

 

	 
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ARTICLE 12

GOVERNMENTAL COMPLIANCE

 

12.1 LICENSEE shall at all times during the term of this Agreement and for so long as it shall use the Patent Rights or sell Licensed Products and/or Licensed Services comply and use commercially reasonable effort to cause its Affiliates and Sublicensees to comply with all laws that may control the import, export, manufacture, use, sale, marketing, distribution and other commercial exploitation of the Patent Rights, Licensed Products, Licensed Services or any other activity undertaken pursuant to this Agreement.

 

ARTICLE 13

RIGHTS TO DATA

 

13.1 Should this Agreement be terminated or cancelled for any reason, LICENSEE will turn over to LICENSOR any and all data relating to the Patent Rights, including but not limited to LICENSEE’S medical, toxicological, pharmacological, pre- clinical, clinical, adverse reaction reports, processes for manufacturing licensed product and other data, whether or not used for any clinical trials or other submissions under the authority of the United States Food & Drug Administration or similar foreign regulatory body. Such transfer of said data from LICENSEE to LICENSOR shall occur within thirty (30) days of termination or cancellation of this Agreement. LICENSOR shall have the full ownership rights to this data and shall be able to use it in any way to further develop the Patent Rights.

 

ARTICLE 14

DISPUTE RESOLUTION

 

14.1 LICENSOR and LICENSEE shall attempt to settle between them amicably any controversy arising out of or related to this Agreement or the breach thereof. A senior executive from each party shall consult and negotiate to reach a solution. The Parties agree that the period of amicable resolution shall toll any otherwise applicable statute of limitations. However, nothing in this clause shall preclude any party from commencing mediation if said negotiations do not result in a signed written settlement agreement within thirty (30) days after written notice that these amicable resolution negotiations have commenced. In the event the applicable statute of limitations shall expire prior to the expiration of the thirty (30) day period set forth in this section, either party may commence an action as set forth in Section 14.3 of this Agreement.

 

14.2. If said controversy cannot be settled according to Section 14.1 above, the Parties agree to good faith efforts to settle the controversy by mediation. The Party seeking mediation shall propose five mediators, each of whom shall be a lawyer licensed to practice by the State of California, having practiced actively in the field of commercial law for at least fifteen (15) years, to the other Party who shall select the mediator from the list. The Parties shall split the cost of the mediator equally. The Parties agree that the period of mediation shall toll any otherwise applicable statute of limitations. However, nothing in this clause shall preclude any Party from commencing further action if said mediation does not result in a signed written settlement agreement within sixty (60) days after written notice that amicable resolution negotiations have commenced. In the event the applicable statute of limitations shall expire prior to the expiration of the sixty (60) day period set forth in this section, either party may commence an action as set forth in Section 14.3 of this Agreement.

 

	 
	Page 15 of 18
	

 
	 

 

14.3 If the Parties cannot reach agreement pursuant to Section 14.1 or Section 14.2 above then any dispute, controversy, or claim arising out of or relating to this Agreement, or the breach, termination or invalidity thereof, shall be finally settled judicially by a court of competent jurisdiction located in San Diego County, California.

 

ARTICLE 15

GENERAL PROVISIONS

 

15.1 This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the state of California, without regard to conflicts of laws principles.

 

15.2 The relationship of LICENSEE and LICENSOR established by this Agreement is that of independent contractors. Nothing in this Agreement shall be construed to create any other relationship between LICENSEE and LICENSOR. Neither party shall have any right, power or authority to assume, create or incur any expense, liability or obligation, expressed or implied, on behalf of the other.

 

15.3 This Agreement is binding upon and shall inure to the benefit of LICENSOR, its successors and assigns, and shall be binding upon and shall inure to the benefit of LICENSEE and the successor to all or substantially all of its assets or business to which this Agreement relates, but shall not otherwise be assignable or assigned by LICENSEE without prior written approval by LICENSOR being first obtained, provided, however, that LICENSOR will not unreasonably withhold its approval if the intended assignee from LICENSEE is a Licensee which is at least as capable of commercializing and exploiting the Patent Rights as was LICENSEE when this Agreement was entered into.

 

15.4 In the event either party hereto is prevented from or delayed in the performance of any of its obligations hereunder by reason of acts of God, war, strikes, riots, storms, fires, or any other cause whatsoever beyond the reasonable control of the party, the party so prevented or delayed shall be excused from the performance of any such obligation to the extent and during the period of such prevention or delay.

 

	 
	Page 16 of 18
	

 
	 

 

15.5 Any notice or other communication required by this Agreement shall be made in writing and shall be deemed to have been properly given if delivered in person, or by first class certified mail, or via overnight courier, or by facsimile transmission provided that facsimile transmissions are promptly confirmed by first class mail, to the other party at the appropriate address as set forth below, or to such other address as may be designated in writing by the parties from time to time during the term of this Agreement. Any such notice shall be deemed to have been served on the date received by the addressee.

 

	
If to LICENSOR: 
	
 
	
If to LICENSEE:

	
INmune Bio, Inc. 
	
 
	
Immune Ventures, LLC

	
1224 Prospect Str., Suite 150 
	
 
	
1001 4th Ave., Suite 4500

	
La Jolla, CA 92037 
	
 
	
Seattle, WA 98154

	
(858) 964-3720
	
 
	
(206) 372-8963

 

15.6 This Agreement may not be altered, amended or modified in any way except by a written document signed by both parties. The failure of a party to enforce any provision of this Agreement shall not be construed to be a waiver of the right of such party thereafter to enforce that provision or any other provision or right.

 

15.7 Headings included herein are for convenience only, do not form a part of this Agreement and shall not be used in any way to construe or interpret this Agreement.

 

15.8 If any provision of this Agreement shall be found by a court to be void, invalid or unenforceable, the same shall be reformed to comply with applicable law or stricken if not so conformable. Such holding shall have no effect on the remaining provisions of this Agreement and they shall continue in full force and effect.

 

15.9 Neither LICENSOR, nor any employees, officers, or agents thereof assume any responsibility for the manufacture, product specifications, sale or use of the Patent Rights or the Licensed Products or Licensed Services which are manufactured by or sold by LICENSEE.

 

15.10 The parties hereto acknowledge that this Agreement sets forth the entire agreement and understanding of the parties hereto as to the subject matter hereof, and supersedes all prior discussions, agreements and writings in respect hereto.

 

15.11 This Agreement may be executed in counterparts, each of which shall be deemed an original, but both or which together shall constitute one and the same instrument.

 

///Remainder of this page is intentionally left blank///

 

	 
	Page 17 of 18
	

 
	 

  

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

  

	
IMMUNE VENTURES, LLC 
	 	INmune BIO, Inc.	 
	
(Licensor)
	
 
	
(Licensee)
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	/s/ David Moss	 	By:	/s/ RJ Tesi	 
	
Name:
	
David Moss
	 	Name: 	RJ Tesi	 
	
Title:
	Managing Member 	 	Title: 	MD	 
	
Date:
	
10-28-2015
	
 
	
Date:
	
 
	
 

 
	 
	Page 18 of 18
	

 
	 

 

EXHIBIT A: Licensed Intellectual Property

 

With reference to Section 1.10 of the appended LICENSE AGREEMENT (“Agreement”) made October 29, 2015 by and between IMMUNE VENTURES, LLC and INmune BIO, Inc., the “Patent Rights” shall include:

 

Patent Applications:

 

	
Property No.
	
 
	
Patent Application Serial No.
	
 
	
Filing Date:
	
 
	
Title:

	
(1)
	
 
	
62/219,652
	
 
	
09/16/2015
	
 
	
IN VIVO ACTIVATION OF

NATURAL KILLER CELLS

 

Patents:

 

	
Property No.
	
 
	
Patent No.
	
 
	
Issue Date:
	
 
	
Title:

	
(N/A)
	
 
	
N/A
	
 
	
N/A
	
 
	
N/A

 

 

This EXHIBIT A shall be amended from time to time in accordance with Sections 3.2 and 7.2 of the Agreement.

 

This EXHIBIT A is effective as of: October 29, 2015

 

	
IMMUNE VENTURES, LLC

(Licensor)
	 	
INmune BIO, Inc.

(Licensee)
	 
	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	/s/ David Moss	 	By:	/s/ R J Tesi	 
	
Name: 
	David Moss	 	Name: 	R J Tesi	 
	
Title:
	Managing Member 	 	Title: 	MD	 
	
Date:
	
10-28-2015
	
 
	
Date:

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