Document:

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

 

LICENSE
AGREEMENT

 

BY
AND BETWEEN

 

MACROGENICS,
INC.

 

AND

 

PROVENTION
BIO, INC.

 

    	 	 	 

    	 

    

 

TABLE
OF CONTENTS 

 

	ARTICLE
    1	DEFINITIONS	1
	 	 	 
	ARTICLE 2	LICENSES	13
	 	 	 
	ARTICLE 3	DEVELOPMENT & REGULATORY MATTERS	14
	 	 	 
	ARTICLE 4	MANUFACTURING	16
	 	 	 
	ARTICLE 5	COMMERCIALIZATION	17
	 	 	 
	ARTICLE 6	PAYMENT OBLIGATIONS	18
	 	 	 
	ARTICLE 7	INTELLECTUAL PROPERTY RIGHTS	23
	 	 	 
	ARTICLE 8	CONFIDENTIALITY; PUBLICATION	29
	 	 	 
	ARTICLE 9	REPRESENTATIONS, WARRANTIES AND COVENANTS	32
	 	 	 
	ARTICLE 10	TERM AND TERMINATION	36
	 	 	 
	ARTICLE 11	DISPUTE RESOLUTION	39
	 	 	 
	ARTICLE 12	INDEMNIFICATION	40
	 	 	 
	ARTICLE 13	MISCELLANEOUS	42

 

LIST
OF EXHIBITS

 

	Exhibit
    A	‒	Compound
	Exhibit
    B	‒	MacroGenics
    Patents
	Exhibit
    C	‒	Development
    Plan
	Exhibit
    D	‒	Third
    Party Licenses
	Exhibit
    E	‒	Transferred
    Documentation and Materials
	Exhibit
    F	‒	Press
    Release
	Exhibit
    G	‒	Form
    of Warrant
	Exhibit
    H	‒	Form
    of Lock-Up

 

    	 	i	 

    	 

    

 

LICENSE
AGREEMENT

 

This
LICENSE AGREEMENT (this “Agreement”) is entered into as of May 7, 2018 (the “Effective Date”),
by and between PROVENTION BIO, INC., a Delaware corporation, having its
principal place of business at 110 Old Driftway Lane, Lebanon, NJ 08833 (“Provention”) and MACROGENICS,
INC., a Delaware corporation having its principal place of business at 9704 Medical Center Drive, Rockville, MD 20850 (hereinafter
“MacroGenics”). Provention and MacroGenics are sometimes referred to herein individually as a “Party”
and collectively as the “Parties”.

 

WHEREAS,
MacroGenics has discovered and is developing a proprietary program that includes the Compound (as defined below) using the DART®
Platform (as defined below) for the treatment of autoimmune and inflammatory diseases, containing CD32B and CD79B specificities
and coded by MacroGenics as MGD010, and possesses proprietary intellectual property rights relating thereto;

 

WHEREAS,
Provention has expertise in the research, development, manufacture and commercialization of pharmaceutical and diagnostic products,
and wishes to obtain certain license rights in respect of such Compound and Products (as defined below), all in accordance with
the terms and conditions of this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants and promises contained in this Agreement and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, do hereby agree as follows:

 

ARTICLE
1

DEFINITIONS

 

1.1
 “Affiliate” means any corporation or other legal entity controlled by, controlling, or under common control
with a Party. For the purpose of this definition, the term “control” means direct or indirect beneficial ownership
of at least fifty percent (50%) of the voting stock of a corporation or other legal entity, or to hold the effective power to
appoint or dismiss members of the management.

 

1.2
“API” means an active pharmaceutical ingredient, whether produced from a living organism or through synthetic
process, i.e., any substance intended to be used in the manufacture of a drug product and that is intended to furnish pharmacological
activity in the cure, treatment or prevention of disease or to affect the structure or any function of the body of man or other
animals, including peptides, antibodies, hybrid molecules, fusion proteins, cytokines or other cellular elements.

 

1.3
“Applicable Law” means all applicable statutes, ordinances, regulations, rules, or orders of any kind whatsoever
of any Governmental Authority, including the U.S. Federal Food, Drug, and Cosmetic Act (21 U.S.C. §301 et seq.) (the “FFDCA”),
Prescription Drug Marketing Act of 1987 (21 U.S.C. §§331, 333, 353, 381), the Generic Drug Enforcement Act of 1992 (21
U.S.C. §335(a) et seq.), U.S. Patent Act (35 U.S.C. §1 et seq.), Federal False Claims Act (31 U.S.C. §3729 et seq.)
(the “FCA”), the Anti-Kickback Statute (42 U.S.C. §1320a-7b et seq.) (the “AKA”), the
U.S. Foreign Corrupt Practices Act of 1977 (15 U.S.C. §§ 78dd-1, et seq.) (the “FCPA”), and the United
Kingdom Bribery Act (the “UKBA”), current Good Manufacturing Practices (“cGMP”) and current
Good Clinical Practices (“cGCP”), all as amended from time to time, together with any rules, regulations, and
compliance guidance promulgated thereunder.

 

1.4
“Biosimilar Competition” means, with respect to a Product in any country in a given calendar quarter, that,
during such calendar quarter, (a) one or more generic products are commercially available in such country, and (b) aggregate Net
Sales of such Product in such country in such calendar quarter equal [****] percent ([****]%) of the average aggregate Net Sales
of the Product over the four (4) calendar quarters immediately prior to the calendar quarter in which one or more Generic Products
first became commercially available in such country.

 

    	 	1	 

    	 

    

 

1.5
“Biosimilar Product” means, with reference to a given Product in a country, a Product that (a) is not produced,
licensed or owned by the Provention Group, (b) is, according to the relevant Regulatory Authority for the given country or jurisdiction,
highly similar with respect to the given Product, notwithstanding minor differences in clinically inactive components, and with
no meaningful differences between the Biosimilar Product and the given Product in terms of the efficacy, safety, purity and potency
of the product and (c) receives Regulatory Approval in any jurisdiction in the Territory through an abbreviated regulatory pathway.
For countries or jurisdictions where no explicit biosimilar regulations exist, a Biosimilar Product includes any Product that
(x) has been deemed to be a biosimilar to the given Product by a Regulatory Authority in another country or jurisdiction or (y)
is a biological therapeutic containing an amino acid sequence that has [****] to the Product.

 

1.6
“BLA” means (a) a Biologics License Application as defined in the Public Health Service Act and the regulations
promulgated thereunder; (b) a Marketing Authorization Application in Europe, including a Marketing Authorization Application filed
with the EMA pursuant to the Centralized Approval Procedure or with the applicable Regulatory Authority of a country in Europe
with respect to the decentralized procedure, mutual recognition or any national approval procedure; or (c) any equivalent or comparable
application, registration or certification in any other country or region.

 

1.7
“BRIC” means, collectively Brazil, Russia, India and China.

 

1.8
“Business Day” shall mean a day other than a Saturday, Sunday or a day that is a bank holiday in the U.S.
or a day that a Party (excluding any Affiliates) is officially closed for business.

 

1.9
“Calendar Quarter” shall mean each period of three (3) consecutive calendar months, ending March 31, June
30, September 30 and December 31.

 

1.10
“Calendar Year” shall mean the period of time beginning on January 1 and ending December 31, except for
the first year of the Agreement Term which shall begin on the Effective Date and end on December 31, 2018.

 

1.11
“Centralized Approval Procedure” means, to the extent compulsory or permitted for the Regulatory Approval
of the Compound or Product in Iceland, Liechtenstein, Norway or any country in the European Union, the procedure administrated
by the EMA which results in a single marketing authorization that is valid in Iceland, Liechtenstein, Norway and all countries
in the European Union.

 

1.12
 “Clinical Study” shall mean a Phase I Study, Phase II Study or Phase III Study, as applicable.

 

1.13
 “Combination Product” shall mean a human therapeutic product that is developed or commercialized by Provention
under this Agreement and that comprises, consists of, or incorporates two or more APIs, which includes the Compound as one of
the active pharmaceutical ingredients together with any formulation ingredients, regardless of the formulation or mode of administration
of such Combination Product. For the sake of clarity, a Combination Product is a Product.

 

1.14
 “Commercialize” or “Commercialization” means the commercial manufacture, marketing,
promotion, sale, offering for sale, distribution, and/or commercial importation and exportation of a Product.

 

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1.15
“Commercially Reasonable Efforts” means, with respect to the efforts to be expended, or considerations
to be undertaken, by a Party or its Affiliate with respect to any objective, activity or decision to be undertaken hereunder,
reasonable, good faith efforts to accomplish such objective, activity or decision as such Party would normally use to accomplish
a similar objective, activity or decision under similar circumstances, it being understood and agreed that with respect to the
Development, Manufacture, seeking and obtaining Regulatory Approval, or Commercialization of the Compound or Product, such efforts
and resources shall be consistent with the efforts that Provention or MacroGenics, as applicable, devotes at the same stage of
Development, Manufacture, seeking and obtaining Regulatory Approval, or Commercialization, as applicable, for its own internally
developed pharmaceutical products in a similar area with similar market potential, at a similar stage of their product life taking
into account the existence of other competitive products in the market place or under development, the proprietary position of
the product, the regulatory structure involved, the anticipated profitability of the product and other relevant factors.

 

1.16
“Completion” means, for a clinical trial, the date upon which all patients have completed protocol-defined
drug administration and [****] has occurred.

 

1.17
“Compound” means the DART® Molecule described in Exhibit A that is designated by
MacroGenics as MGD010 and that co-ligates both CD32B and CD79B.

 

1.18
 “Confidential Information” means any information of a confidential or proprietary nature disclosed by
or on behalf of a Party or its Affiliates (the “Disclosing Party”) to the other Party or its Affiliates (the
“Receiving Party”), including each Party’s or its Affiliates’ invention disclosures, proprietary
materials, data, including any Information, Know-How, technologies, trade secrets, and/or manufacturing, marketing, personnel
and other business information and plans, whether in oral, written, graphic or electronic form. Confidential Information (as defined
in the Prior Confidentiality Agreement) disclosed under the Prior Confidentiality Agreement shall be deemed Confidential Information
hereunder and the terms of this Agreement shall be considered Confidential Information of the Parties, with each Party being considered
the Disclosing Party and the Receiving Party with respect thereto. Information shall not be deemed “Confidential Information”
hereunder, and the Receiving Party shall have no obligation with respect to any information if it is:

 

(a)
known by the Receiving Party prior to disclosure by the Disclosing Party, as evidenced by internal records or documentation
of the Receiving Party; or

 

(b)
information which is in the public domain or subsequently enters the public domain through no fault of the Receiving Party;
or

 

(c)
information that is received by the Receiving Party from an independent Third Party with the lawful right to disclose it;
or

 

(d)
information that was independently developed by the Receiving Party (or its Affiliates’) employees or contractors without
the use of or reference to Confidential Information of the Disclosing Party as evidenced by internal records or documentation
of the Receiving Party.

 

(e)
Notwithstanding the foregoing, any combination of features or disclosures shall not be deemed to fall within the foregoing
exclusions merely because individual features are published or available to the general public or in the rightful possession of
the Receiving Party unless the combination itself and principle of operation are published or available to the general public
or in the rightful possession of the Receiving Party. In addition, Confidential Information included in the MacroGenics Know-How
to the extent to the extent solely and specifically related to the Compound and the Products in the Field shall be deemed Confidential
Information of Provention notwithstanding that MacroGenics was the Disclosing Party of such Confidential Information.

 

    	 	3	 

    	 

    

 

1.19
 “Control” means (as an adjective or as a verb including conjugations and variations such as “Controls”
“Controlled” or “Controlling”), with respect to any Know-How, Patent Right or other intellectual property
right, possession by a Party, including its Affiliates, of the ability (without taking into account any rights granted by one
Party to the other Party under the terms of this Agreement) to grant access, a license or a sublicense to such Know-How, Patent
Right or other intellectual property right without violating the terms of any agreement or other arrangement with, or necessitating
the consent of, any Third Party.

 

1.20
“Cover” means (as an adjective or as a verb including conjugations and variations such as “Covered,”
“Coverage” or “Covering”) that the Exploitation of a given compound, formulation or product would infringe
a Valid Claim (or, in the case of a Valid Claim that has not yet issued, would infringe such Valid Claim if it were to issue in
substantially the same scope) in the absence of a license under or ownership in the Patent Rights to which such Valid Claim pertains.
The determination of whether a compound, formulation, process or product is Covered by a particular Valid Claim shall be made
on a country-by-country basis.

 

1.21
“DART® Molecule” means a bispecific covalently-bonded diabody molecule derived from the
DART Platform and consisting of two (2) binding arms, whereby the first arm has a binding specificity conferred by an antibody
variable region and the second arm has a binding specificity conferred by a different antibody variable region.

 

1.22
“DART Platform” means MacroGenics’ proprietary platform for generating DART®
Molecules.

 

1.23
 “Develop” or “Development” means to discover, research or otherwise develop a product,
including conducting any pre-clinical, non-clinical or clinical research and any drug development activity, including discovery,
research, toxicology, pharmacology and other similar activities, test method development and stability testing, manufacturing
process development, formulation development, delivery system development, quality assurance and quality control development,
statistical analysis, clinical studies (including pre- and post-approval studies), diagnostic assays in connection with clinical
studies, and all activities directed to obtaining any Regulatory Approval, including any marketing, pricing or reimbursement approval.
For the sake of clarity, Development shall not include any activities related to Commercialization.

 

1.24
“Dispute” shall mean any controversy, claim or legal proceeding arising out of or relating to this Agreement,
or the breach, termination or invalidity thereof. Notwithstanding the foregoing, Disputes shall not include any disagreements
solely about decisions for which one Party has final decision-making authority under this Agreement.

 

1.25
“EMA” means the European Medicines Agency or any successor agency(ies) or authority having substantially
the same function.

 

1.26
“EU5” means, collectively, France, Germany, Italy, Spain, and the United Kingdom.

 

1.27
“European Union” or “EU” means the European Union member states as then-currently constituted;
provided, however, that the EU shall always be deemed to include the EU5. As of the Effective Date, the European
Union member states are Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany,
Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia,
Spain, Sweden, and United Kingdom.

 

    	 	4	 

    	 

    

 

1.28
“Event Payments” shall mean, collectively, Development Event Payments and Sales Event Payments.

 

1.29
“Executive Officers” shall mean (a) with respect to Provention, its Chief Executive Officer (or his or
her designee) and (b) with respect to MacroGenics, its Chief Executive Officer (or his or her designee).

 

1.30
 “Exploit” or “Exploitation” means to research, Develop, make, have made, use, have
used, register, sell, have sold, offer for sale, import, export, Commercialize, Manufacture, have Manufactured, or otherwise exploit
the Compound or Product.

 

1.31
“FDA” shall mean the United States Food and Drug Administration and any successor agency(ies) or authority
having substantially the same function.

 

1.32
“Field” shall mean all therapeutic and diagnostic uses in humans.

 

1.33
“First Commercial Sale” shall mean, on a Product-by-Product and country-by-country basis, the first invoiced
sale of such Product to a Third Party by a member of the Provention Group in such country following the receipt of any Regulatory
Approval in such country required for the sale of such Product; in furtherance, and not in limitation of the foregoing, First
Commercial Sale shall exclude transfers or dispositions of without consideration: (i) in connection with patient assistance programs;
(ii) for charitable or promotional purposes; (iii) for preclinical, clinical, regulatory or governmental purposes or under so-called
“named patient”, “compassionate use” or other limited access programs; or (iv) for use in any tests or
studies reasonably necessary to comply with Applicable Laws, regulation or request by a Governmental Authority. For clarity, First
Commercial Sale shall be determined on a country-by-country basis. 

 

1.34
“Force Majeure” means any event beyond the reasonable control of the affected Party, which may include
embargoes; war or acts of war, including terrorism; insurrections, riots, or civil unrest; strikes, lockouts or other labor disturbances;
epidemics, fire, floods, earthquakes or other acts of nature; acts, omissions or delays in acting by any Governmental Authority
(other than delays incident to the course of drug development); and failure of plant or machinery.

 

1.35
“FTE” means a full time equivalent person by year consisting of [****] days per year of work, corresponding
to [****] hours per year of work, that an employee in the full time employment of a Party or a Party’s full-time contractor
or consultant shall be obliged to spend at work in any twelve (12)-month period of continuous employment.

 

1.36
“FTE Costs” means, with respect to any period and a Party or its Affiliate, the FTE Rate multiplied by
the number of FTEs expended by such Party or its Affiliate during such period.

 

1.37
“FTE Rate” means a rate of [****] dollars ($[****]) per FTE per Calendar Year (pro-rated for the period
beginning on the Effective Date and ending on the last day of the first Calendar Year).

 

1.38
“GAAP” shall mean generally accepted accounting principles in the U.S., consistently applied.

 

    	 	5	 

    	 

    

 

1.39
“Governmental Authority” shall mean any federal, state, national, provincial or local government, or political
subdivision thereof, or any multinational organization or any authority, agency or commission entitled to exercise any administrative,
executive, judicial, legislative, police, regulatory or taxing authority or power, or any court or tribunal (or any department,
bureau or division thereof, or any governmental arbitrator or arbitral body), including without limitation any regulatory authority
involved in granting approval to initiate or conduct clinical testing in humans, for regulatory approval to market a pharmaceutical/biologic
product and/or, to the extent required in such country or jurisdiction, for pricing or reimbursement approval for a pharmaceutical
product in such country or jurisdiction, including (i) the FDA, (ii) the EMA, and (iii) the European Commission.

 

1.40
 “IND” means (a) an Investigational New Drug application as defined in the FFDCA and applicable regulations
promulgated thereunder by the FDA; (b) a clinical trial authorization application for a product filed with a Regulatory Authority
in any other regulatory jurisdiction outside the U.S., the filing of which (in the case of (a) or (b)) is necessary to commence
or conduct clinical testing of a pharmaceutical product in humans in such jurisdiction; or (c) documentation issued by a Regulatory
Authority that permits the conduct of clinical testing of a product in humans in such jurisdiction.

 

1.41
“Indication” means a discrete clinically recognized form of a disease. For the sake of clarity, the following
shall be treated as separate Indications for purposes of this Agreement: [****].

 

1.42
“Information” means ideas, inventions, discoveries, concepts, formulas, practices, procedures, processes,
methods, knowledge, know-how, trade secrets, technology, designs, drawings, computer programs, skill, experience, documents, results,
clinical and regulatory strategies, data, including pharmacological, toxicological, non-clinical and clinical data, analytical
and quality control data, manufacturing data and descriptions, Patent Rights and legal data, market data, financial data or descriptions,
assay protocols, specifications, information and submissions pertaining to, or made in association with, filings with any Governmental
Authority or patent office, and the like, in written, electronic or other form, now known or hereafter developed, whether or not
patentable.

 

1.43
“Initiation” shall mean, with respect to a Clinical Study of a Product, the date that a [****] in a Clinical
Study approved by the respective Regulatory Authority or otherwise permitted under Applicable Law.

 

1.44
“Invention” means any invention, discovery or development, whether or not patentable, made, conceived or
reduced to practice in the course of performance of this Agreement, whether made, conceived or reduced to practice solely by,
or on behalf of, MacroGenics, Provention, the Parties jointly, or any Affiliate of the same.

 

1.45
“Know-How” shall mean all Information and Inventions Controlled by a Party that are necessary or reasonably
useful for the Exploitation of the Compound or Product, but excluding any Patent Rights.

 

1.46
 “MAA” or “Marketing Authorization Application” means an application for Regulatory
Approval in any particular jurisdiction other than the U.S.

 

1.47
“MacroGenics Inventions” means Inventions Controlled by MacroGenics during the Agreement Term that are
necessary or useful to Exploit the Compound or Products in the Field in the Territory.

 

1.48
“MacroGenics Know-How” means all Know-How which (i) is Controlled by MacroGenics as of the Effective Date
or during the Agreement Term, including all MacroGenics Inventions, (ii) was used for or created as a result of the Development
or Commercialization of the Compound or the Products prior to the Effective Date; and (iii) [****] relates to the manufacture,
use, Development or Commercialization of the Compound or the Products, whether patentable or not.

 

    	 	6	 

    	 

    

 

1.49
“MacroGenics Patents” means all Patent Rights Controlled by MacroGenics, as of the Effective Date or during
the Agreement Term that claim the composition, Manufacture, use, sale, offer for sale and/or import of the Compound or the Products,
or any portion or component thereof, including MacroGenics’ interest in any Patent claiming a Joint Invention. The MacroGenics
Patents existing as of the Effective Date are listed in Exhibit B.

 

1.50
“MacroGenics Platform Patent” means a MacroGenics Patent that is a Platform Patent.

 

1.51
“MacroGenics Product Patent” means a MacroGenics Patent that is a Product Patent.

 

1.52
“MacroGenics Technology” means, collectively: (a) MacroGenics Patents, (b) MacroGenics Know-How and (c)
[****].

 

1.53
“MacroGenics Trademarks” means the trademarks “MacroGenics”, DART®, trademarks
which incorporate “MacroGenics” or the acronym “DART”, and related logos.

 

1.54
“Major Markets” means the United States, the BRIC countries, the EU5 and Japan.

 

1.55
“Manufacture” means all activities and processes related to the manufacturing of the Compound or a Product,
or any ingredient thereof, including manufacturing of finished Product for Development and Commercialization, labeling, packaging,
in-process and finished Product testing, release of the Compound or Product or any component or ingredient thereof, quality assurance
activities related to manufacturing and release of Compound or Product and ongoing stability tests and regulatory activities related
to any of the foregoing. Where the context so requires, Manufacture shall also include obtaining Compound or Product from contract
manufacturers. When used as a verb, to “Manufacture” means to engage in Manufacturing activities.

 

1.56
“[****]” means (a) the [****] identified as [****] and (b) the [****]. 

 

1.57
“Net Sales” means the gross amount billed or invoiced for a Product by any member of the Provention Group,
in each case, for the sale of a Product to Third Parties (excluding a sale of a Product to Affiliates or sublicensees for resale),
subject to the following deductions, as allocable to such Product (if not previously deducted in calculating the amount invoiced
and to the extent included in the gross invoice price):

 

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

 

(b)
credits or allowances actually granted upon claims, rejections or returns of such sales of Products, including recalls;

 

    	 	7	 

    	 

    

 

(c)
taxes imposed on the production, sale, delivery, import, export, distribution or use of the Product (including sales, use,
excise or value added taxes, but excluding income taxes), duties or other governmental charges levied on or measured by the billing
amount when included in billing, as adjusted for tax refunds and tax rebates; 

 

(d)
any discounts, rebates or similar payments in respect of sales paid for by any Governmental Authority, including Federal or
state Medicaid, Medicare or similar state program, or any other similar program, or any other government imposed rebates or discounts
from invoiced prices (to the extent not covered under clause (a) above); and

 

(e)
transport, freight, postage and insurance costs relating to the transportation or delivery of Products.

 

Such
amounts shall be determined from the books and records of the Provention Group, maintained in accordance with GAAP with respect
to Provention and, with respect to any other member of the Provention Group, in accordance with the accounting standards applicable
to such Provention Group member.

 

Net
Sales shall exclude transfers or dispositions of Product, without consideration: (1) in connection with patient assistance programs;
(2) for charitable or promotional purposes; (3) for preclinical, clinical, regulatory or governmental purposes or under so-called
“named patient”, “compassionate use” or other limited access programs; or (4) for use in any tests or
studies reasonably necessary to comply with applicable Law, regulation or request by a Governmental Authority.

 

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

 

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

 

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

 

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

 

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1.58
“Patent(s)” or “Patent Right(s)” means (a) all issued patents (extensions, restorations
by existing or future extension or registration mechanism, including patent term adjustments, patent term extension, supplemental
protection certificates or the equivalent thereof, substitutions, confirmations, re-registrations, re-examinations, reissues,
and patents of addition), (b) patent applications (including all provisional applications, substitutions, requests for continuation,
continuations, continuations-in-part, divisionals and renewals), (c) inventor’s certificates, and (d) and all equivalents
of the foregoing in any country of the world.

 

1.59
“Phase I Study” shall mean a human clinical trial in any country that would satisfy the requirements of
21 C.F.R. § 312.21(a) (FDCA), as amended from time to time, and the foreign equivalent thereof.

 

1.60
“Phase Ib Study” means a human clinical trial of a product that (a) is for the purposes of establishing
initial safety, tolerability, pharmacokinetic, pharmacodynamic and initial clinical effectiveness information of the product and
(b) administers repeated doses of the product to subjects in the trial.

 

1.61
“Phase II Study” shall mean a human clinical trial, or relevant portion of such trial, for which the primary
endpoints include a determination of dose ranges and/or a preliminary determination of efficacy in patients being studied as described
in 21 C.F.R. § 312.21(b) (FDCA), as amended from time to time, and the foreign equivalent thereof.

 

1.62
“Phase III Study” shall mean a human clinical trial, or relevant portion of such trial, that is prospectively
designed to demonstrate statistically whether a product is safe and effective for use in humans in a manner sufficient to obtain
Regulatory Approval to market such product in patients having the disease or condition being studied as described in 21 C.F.R.
§ 312.21(c) (FDCA), as amended from time to time, and the foreign equivalent thereof.

 

1.63
 “Platform Claim” means a Patent claim that Covers an aspect of the general structure or a property of
DART® Molecules and/or the Manufacture of DART® Molecules generally and [****] that
(a) [****] of any Compound or Product that is [****] such Compound or Product; or (b) [****] to the Exploitation of any Compound
or Product.

 

1.64
“Platform Patent” means a Patent that includes a Platform Claim.

 

1.65
“Product” means any pharmaceutical product containing the Compound alone or in combination with other therapeutically
active ingredients, including Combination Products.

 

1.66
“Product Claim” means a Patent claim that [****] Covers a Compound or Product, and/or the Exploitation
of the Compound or Product.

 

1.67
“Product Patent” means any Patent that [****] a Product Claim.

 

    	 	9	 

    	 

    

 

1.68
 “Provention Group” shall mean, collectively, Provention, its Affiliates and its permitted sublicensees
pursuant to Section 2.1.

 

1.69
“Provention Know-How” means all Know-How Controlled by Provention as of the Effective Date or during the
Agreement Term.

 

1.70
“Provention Patents” means all Patent Rights owned or Controlled by Provention as of the Effective Date
or during the Agreement Term that: (a) Cover the composition of matter of, the method of making or using, the sale or the importation
of the Compound or the Product; or (b) are otherwise necessary or useful to Exploit the Compound or the Product in the Field in
the Territory.

 

1.71
“Provention Technology” means, collectively, Provention Patents and Provention Know-How.

 

1.72
“Qualified Consideration” means any payments or other consideration that Provention or any of its Affiliates
receives in connection with the (and, in a transaction in which rights to multiple products are transferred, to the extent allocable
to a) grant of rights (including any assignment) under the Provention License and/or rights with respect Products in an agreement
or arrangement with a Third Party (“Qualified Consideration Agreement”). In furtherance and not in limitation
of the foregoing, Qualified Consideration shall not include (i) royalties based on Net Sales, (ii) amounts received to cover future
reasonable, fully-burdened costs incurred or to be incurred by Provention or its Affiliates in the performance of research, development
or manufacturing activities to be performed by Provention or its Affiliates after the Effective Date, (iii) amounts received as
reimbursement for out-of-pocket costs incurred by Provention in the preparation, filing, prosecution and maintenance of the Patents
under the Provention License, or (iv) consideration for the issuance of equity interests in Provention or its Affiliates to the
extent there is no premium included in such issuance for rights granted with respect to the Product. If Provention or its Affiliate
receives non-cash consideration that otherwise qualifies as Qualified Consideration, the Qualified Consideration will be calculated
based on the fair market value of such consideration, at the time of the transaction, assuming an arm’s length transaction
made in the ordinary course of business. 

 

1.73
“Regulatory Approval” shall mean any approvals, registrations or authorizations by a Regulatory Authority,
necessary for the manufacture and sale of a Product in the Field in a regulatory jurisdiction in the Territory.

 

1.74
“Regulatory Authority” shall mean any national, supranational (e.g., the European Commission, the
Council of the European Union, the European Medicines Agency), regional, state or local regulatory agency, department, bureau,
commission, council or other governmental entity, including the FDA, in each country involved in the granting of Regulatory Approval
for the Product.

 

1.75
“Regulatory Documentation” means, with respect to any Compound or Product, all regulatory applications,
filings, notifications and supporting documents created, for, submitted to or received from an applicable governmental agency
or Regulatory Authority relating to such Compound or Product, and all data contained therein, including the contents of any minutes
from meetings (whether in person or by audio conference or videoconference) with Regulatory Authorities, registrations and licenses,
regulatory drug lists, advertising and promotion documents shared with Regulatory Authorities, adverse event files, complaint
files and Manufacturing records. Regulatory Documentation includes INDs.

 

1.76
“Royalty Term” means, on a Product-by-Product, and country-by-country basis, the period commencing upon
the first commercial sale of such Product in such country and expiring upon the later of: (i) the last-to-expire Valid Claim in
a MacroGenics Patent in a given country, or (ii) [****] years after the date of first commercial sale of such Product in such
country.

 

    	 	10	 

    	 

    

 

1.77
 “Territory” means worldwide.

 

1.78
“Third Party” means a person or entity other than (a) MacroGenics or any of its Affiliates or (ii) Provention
or any of its Affiliates.

 

1.79
 “Third Party License” shall mean any license or other agreement from a Third Party under which the payment
of any royalties, sublicense revenues, milestones or other payments become due with respect or related to the Exploitation of
the Compound or a Product in the Field in the Territory. Third Party Licenses shall include the agreements identified in Exhibit
D.

 

1.80
“Valid Claim” means: (a) a claim of an issued and unexpired patent that has not been (i) held permanently
revoked, unenforceable, unpatentable or invalid by a decision of a court or governmental body of competent jurisdiction, unappealable
or unappealed within the time allowed for appeal, (ii) rendered unenforceable through disclaimer or otherwise, (iii) abandoned
or (iv) permanently lost through an interference or opposition proceeding without any right of appeal or review; or (b) a claim
of a pending patent application that (i) has been asserted and continues to be prosecuted in good faith and (ii) has not been
abandoned or finally rejected without the possibility of appeal or refiling, and (iii) has not been pending longer than seven
(7) years from the date of issuance of the first substantive patent office action considering patentability of such claim, or
a claim having substantially the same scope in an earlier patent application to which the pending patent application claims priority,
by the relevant patent office in the country or territory in which such claim is pending.

 

Additional
Definitions. Each of the following definitions is set forth in the Section of this Agreement indicated below:

 

	Definition	 	Section
	Acquired Party	 	13.3(b)
	Acquirer	 	13.3(b)
	Acquisition	 	13.3(b)
	Administrator	 	11.3(a)
	Agreement	 	Preamble
	Agreement Term	 	10.1
	AKA	 	1.3
	Bankruptcy Laws	 	10.5(b)
	Breaching Party	 	10.3
	cGCP	 	1.3
	cGMP	 	1.3
	Claim	 	12.1
	Commercialization Report	 	5.6
	Cooperating Party	 	8.3(b)
	Cure Period	 	10.3
	Development Event	 	6.2(a)
	Development Event Payment	 	6.2(a)

 

    	 	11	 

    	 

    

 

	Development Plan	 	3.1
	Development Report	 	3.5(b)
	Development Transition Plan	 	3.6
	Disclosing Party	 	1.18
	Event	 	6.2
	Effective Date	 	Preamble
	FCA	 	1.3
	FCPA	 	1.3
	FFDCA	 	1.3
	Inbound License	 	9.2(g)
	Indemnifying Party	 	12.3(a)
	Indemnitee	 	12.3(a)
	Infringement Recovery	 	7.5(e)
	Insolvency Event	 	10.5(a)
	Joint Inventions	 	7.1
	Joint Patents	 	7.3(c)
	Losses	 	12.1
	MacroGenics	 	Preamble
	MacroGenics Indemnitee	 	12.1
	MacroGenics Platform Inventions	 	7.1
	Manufacturing Technology Transfer	 	4.1
	Manufacturing Transition Plan	 	4.1
	 Millipore 

	 	6.4(a)
	 Millipore 
    License	 	6.4(a)
	Officials	 	9.4(b)
	Package	 	5.3
	Party	 	Preamble
	Parties	 	Preamble
	Patent Extension	 	7.4
	Patent Extensions	 	7.4
	Payment	 	9.4(b)
	Platform Patent	 	7.5(d)
	Platform Patent Extension	 	7.4
	Prior CDA	 	8.5
	Provention	 	Preamble
	Provention Common Stock	 	9.3
	Provention Indemnitee	 	12.2
	Provention License	 	2.1
	Provention Series A Preferred Stock	 	9.3

 

    	 	12	 

    	 

    

 

	Publishing Party	 	8.7
	Qualified Consideration Agreement	 	1.71
	R&D Technology Transfer	 	3.6
	Receiving Party	 	1.18
	Requesting Party	 	8.3(b)
	Reviewing Party	 	8.7
	Rules	 	11.3(a)
	Sales Event	 	6.2(b)
	Sales Event Payment	 	6.2(b)
	Securities Act	 	9.2(k)
	Sole Inventions	 	7.1
	Terminating Party	 	10.3
	Third Party Obligation	 	6.4(a)
	Third Party Patent Challenge	 	7.7(b)
	Transferred Materials	 	4.1
	Transition Period	 	3.6
	UKBA	 	1.3
	Voluntary Termination	 	10.2
	Voting Debt	 	9.3
	Warrant	 	6.1

 

ARTICLE
2

LICENSES

 

2.1
License Grant to
Provention. Subject to the terms and conditions of this Agreement, MacroGenics
hereby grants to Provention (i) an exclusive (even as to MacroGenics), royalty-bearing, non-transferable (except in accordance
with Section 13.3) license, with the right to grant sublicenses in accordance with this Section 2.1, under the MacroGenics Patents
and the [****]; and (ii) a non-exclusive, royalty-bearing, non-transferable (except in accordance with Section 13.3) license,
with the right to grant sublicenses in accordance with this Section 2.1, under the MacroGenics Know-How, in each case to Exploit
the Compound and Products in the Field in the Territory (the “Provention License”).

 

(a)
Right to Sublicense to Affiliates. Subject to Section 2.1(c), Provention shall have the right to grant sublicenses to its
Affiliates under the Provention License without prior approval of MacroGenics. 

 

(b)
Right to Sublicense to Third Parties. Subject to the conditions in this subsection (b) and Section 2.1(c), Provention shall
have the right to grant sublicenses to Third Parties under the Provention License without MacroGenics’ consent. Provention
shall identify each Third Party sublicensee to MacroGenics for which Provention has granted rights under the MacroGenics Technology
to Exploit the Compound or a Product in a jurisdiction in the Territory and shall provide to MacroGenics copies of all such sublicenses
within thirty (30) days of execution thereof.

 

    	 	13	 

    	 

    

 

(c)
Sublicenses. Any sublicense granted under subsections (a) or (b) above shall refer to and be subordinate to this Agreement
and, except to the extent the Parties may otherwise agree in writing, must be consistent in all material respects with the terms
and conditions of this Agreement. Provention assumes full responsibility for the performance of all obligations by and observance
of all terms imposed on any sublicensee. Provention shall be responsible for the payment of all amounts due hereunder, and for
all other obligations of its sublicensees under this Agreement as if such obligations were those of Provention.

 

(d)
Compliance. Provention, on behalf of itself and Provention Group, shall be responsible for complying with, and shall be bound
by, all terms and conditions of any agreement entered into between MacroGenics and any Third Party that constitutes MacroGenics
Technology under which Provention or Provention Group acts as a sublicensee, including any termination provisions in any such
agreement. 

 

2.2
License Grant to MacroGenics. Subject
to the terms and conditions of this Agreement, Provention hereby grants back to MacroGenics a non-exclusive, fully-paid, royalty-free,
non-transferable (except in accordance with Section 13.3), non-sublicensable sublicense, under the Provention License to use the
Compound and Products in the Field in the Territory, solely to the extent necessary or useful for MacroGenics to exercise any
of its rights and perform any of its obligations under this Agreement. 

 

2.3
No Implied Rights or Licenses; Certain Covenants. Neither Party grants to the other Party any rights or licenses in or to
any Patent Right, Know-How, trademarks or other intellectual property right Controlled by such Party, whether by implication,
estoppel or otherwise, except to the extent expressly provided for under this Agreement. Each Party covenants and agrees that
it shall not, and it shall cause its Affiliates and sublicensees not to, use or practice any Patent Rights or Know-How licensed
to it by the other Party outside the scope of the license(s) granted to it under this Agreement.

 

2.4
Subcontracting. Provention may subcontract the performance of any Development, Regulatory, Manufacturing or Commercialization
activities conducted in accordance with Article 3, Article 4, and Article 5, respectively, to any of its Affiliates or any Third
Party, provided that: (a) such subcontractor has entered or shall enter into, prior to performing activities under this
Agreement, an appropriate written agreement obligating such subcontractor to be bound by obligations of confidentiality that are
no less restrictive than the obligations set forth in Article 8; (b) Provention shall retain or obtain ownership of any Inventions
and all intellectual property rights therein made by such subcontractor in performing such services (other than Inventions which
constitute developments or improvements to the processes, systems or base technology of such subcontractor); (c) Provention shall
oversee the performance of any subcontracted activities in a manner that would be reasonably expected to result in their successful
and timely completion; and (d) Provention shall at all times remain responsible for the performance of such subcontracted activities
as if such activities were performed by Provention. Notwithstanding anything to the contrary in the foregoing, Provention shall
obtain MacroGenics’ written consent prior to subcontracting the performance of all or substantially all of its Development,
Regulatory, Manufacturing or Commercialization activities under this Agreement to any Third Party.

 

ARTICLE
3

DEVELOPMENT & REGULATORY MATTERS

 

3.1
Development Activities. Subject to the terms and conditions of this Agreement, commencing on the Effective Date, Provention
shall be solely responsible for, at its own expense, all Development of the Compound and Products. Provention shall conduct the
initial Development of the Compound and Products pursuant to a development plan (the “Development Plan”), attached
as Exhibit C to this Agreement. The initial Development Plan shall include an obligation for Provention to conduct a Phase
Ib Study of the Product in patients for one or more Indications. 

 

    	 	14	 

    	 

    

 

3.2
Diligence. Provention shall use Commercially Reasonable Efforts to conduct the Development activities described in the Development
Plan pursuant to such plan. Additionally, Provention shall use Commercially Reasonable Efforts to Develop, and to seek Regulatory
Approval for, at least one Product throughout the Territory. Development activities conducted by Provention’s Affiliates
and permitted sublicensees pursuant to Section 2.1 will be considered Provention activities under this Agreement for purposes
of determining whether Provention has complied with its obligations under this Section 3.2. Without limiting the foregoing, [****],
provided that, as long as Provention continues to use Commercially Reasonable Efforts with respect to the Development Plan, such
outside date shall be deemed extended by such additional period as may result from delays caused by reasons beyond the control
of Provention, including scientific, regulatory, safety, manufacturing, quality and similar issues pertaining to the Development
Plan.

 

3.3
Compliance with Law. Provention shall conduct all Development activities related to Compound and Products in all material
respects in good scientific manner and in compliance in with all Applicable Law, including applicable national and international
(e.g., ICH, GCP, GLP, and GMP) guidelines.

 

3.4
Records. Provention shall prepare and maintain, and shall require its Affiliates and permitted sublicensees to prepare and
maintain, complete and accurate written records, accounts, notes, reports and data with respect to all Development activities
conducted pursuant to this Agreement in accordance with its internal practices and industry standards. Such records shall fully
and properly reflect all work done and results achieved in sufficient detail and in good scientific manner appropriate for regulatory
and patent purposes.

 

3.5
Development Reports. Until Provention has fulfilled all of its diligence obligations under Section 3.2, no later than:

 

(a)
prior to the First Commercial Sale of a Product, the last day of each six (6) month period beginning on the Effective Date;
and 

 

(b)
after the First Commercial Sale of a Product, within ninety (90) days after the end of each calendar year;

 

Provention
shall provide to MacroGenics in writing a report detailing Provention’s efforts and progress during the six (6) months prior
to such date, as applicable, to Develop each Compound and Product (each, a “Development Report”). Each Development
Report shall describe, among other matters: (a) material Development activities completed since the last report, including the
object and parameters of the Development, when initiated, when completed and a summary of all material results; (b) material Development
activities planned to be undertaken before the next report, including the type and object of any Clinical Studies to be conducted
and their projected starting and completion dates; and (c) material changes in Provention’s Development or Commercialization
plans. In addition, Provention shall reasonably respond to reasonable requests by MacroGenics from time to time for information
regarding Provention’s Development and Commercialization activities for the Compound and Products.

 

    	 	15	 

    	 

    

 

3.6
R&D Technology Transfer. As soon as practicable, but in no case later than fifteen (15) Business Days after the Effective
Date, the Parties shall meet in person at MacroGenics’ offices to discuss and agree upon a written transition plan, that
will, at a minimum include the items set forth on Exhibit E. Beginning on the Effective Date and for a period of one hundred five
(105) days after the Effective Date (the “Transition Period”), MacroGenics shall use Commercially Reasonable
Efforts to transfer to Provention, or its designee, and Provention shall cooperate in good faith to support MacroGenics’
transfer of, such activities and responsibilities related to the Compound and the Products set forth in, and in accordance with,
a transition plan (such plan, the “Development Transition Plan”; such transfer, the “R&D Technology
Transfer”) to be agreed on a commercially reasonable basis and in good faith between the Parties. The Development Transition
Plan shall be designed to effect an efficient transfer from MacroGenics to Provention, or its designee, of (a) all Compound and
Product-related Development, Manufacturing and regulatory responsibilities and documentation (which, for clarity, shall include
any Regulatory Documentation directed to, and solely related to, Products) and (b) any other Information Controlled by MacroGenics
that is reasonably necessary or useful for Provention’s research, Development or Commercialization of the Compound and the
Products in accordance with the terms of this Agreement. Provention shall fund (i) all of the reasonable FTE Costs incurred by
MacroGenics in the performance of the Development Transition Plan after the Transition Period and (ii) all third-party out-of-pocket
expenses incurred by MacroGenics in the performance of the Development Transition Plan, to the extent such third-party out-of-pocket
expenses are approved in advance by Provention. Provention shall pay such FTE Costs and such approved third-party out-of-pocket
expenses within thirty (30) days following receipt of an invoice therefor.

 

3.7
Preparation of Regulatory Documentation. Following completion of the R&D Technology Transfer, Provention shall be solely
responsible, at its own cost and expense, for all regulatory affairs related to the Compound and Products in the Field in the
Territory, including (i) developing and implementing the overall regulatory strategy with respect to obtaining Regulatory Approval
of Products in the Field in the Territory (it being understood that the regulatory strategy for the Territory shall be consistent
with the terms of this Agreement); (ii) preparing, submitting and maintaining all Regulatory Documentation related to the Compound
or Products in the Territory; and (iii) conducting communications with the relevant Regulatory Authority in furtherance of subsection
(ii) or otherwise related to the Exploitation of the Compound and Products in the Territory.

 

3.8
Regulatory and Inter-Party Reporting.

 

(a)
Following completion of the R&D Technology Transfer, Provention shall be solely responsible, at its own cost and expense,
for reporting to appropriate Regulatory Authorities in accordance with Applicable Law, including local requirements, all adverse
events related to the use of the Compound or Products in the Territory. 

 

(b)
Each Party shall promptly notify the other of any information it receives regarding any threatened or pending action, inspection
or communication by or from any Third Party, including a Regulatory Authority, which such Party reasonably believes may materially
affect the Development of the Compound or Products. 

 

ARTICLE
4

MANUFACTURING

 

4.1
Manufacturing Technology Transfer. As soon as practicable, but in no case later than fifteen (15) Business Days after the
Effective Date, the Parties shall meet in person to agree upon a written transition plan that will, at a minimum, include the
current inventory of MGD010 in MacroGenics’ Control, and the inventory, drug substance and materials set forth on Exhibit
E (the “Transferred Materials”). Beginning on the Effective Date and for a period of one hundred five (105)
days from the Effective Date, MacroGenics shall use Commercially Reasonable Efforts to transfer, or cause to be transferred, to
Provention or its designee, and Provention shall cooperate in good faith to support MacroGenics’ transfer of, such Manufacturing-related
Know-How and inventory related to the Compound and the Products set forth in, and in accordance with, a transition plan to be
agreed by the Parties on a commercially reasonable basis and in good faith after the Effective Date (such plan, the “Manufacturing
Transition Plan”; such transfer, the “Manufacturing Technology Transfer”). The Manufacturing Transition
Plan shall be designed to effect an efficient transfer from MacroGenics to Provention, or its designee, of (a) all MacroGenics
Know-How that is reasonably necessary or useful for Provention’s Manufacture of Compound and Products in accordance with
the terms of this Agreement and (b) all Compound and Products in finished form or in process on the Effective Date in MacroGenics’
inventory, including master cell banks and working cell banks, on the Effective Date. Provention shall fund (i) all of the reasonable
FTE Costs incurred by MacroGenics in the performance of the Manufacturing Transition Plan after the Transition Period and (ii)
all of the third party out-of-pocket expenses incurred by MacroGenics in the performance of the Manufacturing Transition Plan,
to the extent such third-party out-of-pocket expenses are approved in advance by Provention. The Parties shall enter into such
quality agreements, supply transfer agreements or other agreements as are deemed as are necessary to effectively execute the Manufacturing
Technology Transfer in accordance with all Applicable Laws. Provention shall pay such FTE Costs and approved third-party out-of-pocket
expenses within thirty (30) days following receipt of an invoice therefor.

 

    	 	16	 

    	 

    

 

4.2
Manufacturing Responsibility. Except as provided in Section 4.1, Provention shall have sole responsibility for, at its sole
cost and expense, all Manufacturing-related activities, including Manufacturing, or having Manufactured, clinical and commercial
supplies of the Compound and the Products for Development and Commercialization in the Field in the Territory. 

 

4.3
Compliance with Law. Provention shall Manufacture, or have Manufactured, Compound and Products in compliance in all material
respects with all Applicable Law, including any specifications, FDA (or foreign equivalent) requirements and applicable national
and international (e.g., ICH, GCP, GLP, and GMP) guidelines.

 

ARTICLE
5

COMMERCIALIZATION

 

5.1
General. Provention shall be responsible for all aspects of the Commercialization of Products in the Field in the Territory,
and all costs and expenses associated therewith, including: (a) developing and executing a commercial launch and pre-launch plan;
(b) marketing and promotion (including detailing); (c) booking sales and distribution and performance of related services; (d)
handling all aspects of order processing, invoicing and collection, inventory and receivables; (e) publications; (f) providing
customer support, including handling medical queries, and performing other related functions; (g) reviewing and approving all
promotional materials for compliance with Applicable Law, including submitting, where appropriate, to the applicable Regulatory
Authority and (h) conforming its practices and procedures in all material respects to Applicable Law relating to the marketing,
detailing and promotion of the Products in the Field in the Territory.

 

5.2
Commercialization Efforts. Provention shall use Commercially Reasonable Efforts to Commercialize at least one Product for
which Regulatory Approval is received in each of (a) U.S., (b) the EU5, (c) Japan and (d) the BRIC. Commercialization activities
conducted by Provention’s Affiliates or permitted sublicensees pursuant to Section 2.1 will be considered Provention activities
under this Agreement for purposes of determining whether Provention has complied with its obligations under this Section 5.2.

 

5.3
Discounted Sales. Provention shall not, and shall not permit any member of the Provention Group to, unreasonably discount
the price of a Product included in a package of products offered for sale by Provention or any member of the Provention Group
(a “Package”) compared to the price of the other products included in such Package.

 

    	 	17	 

    	 

    

 

5.4
Trademarks. Provention shall have sole responsibility, at its own expense, for all matters relating to the use of, and shall
own, all trademarks used in the sale of Products in the Field in the Territory (but excluding all MacroGenics Trademarks and any
trademark that is confusingly similar to a MacroGenics Trademark), including the selection, filing, prosecution, maintenance,
defense and enforcement thereof.

 

5.5
Compliance with Law. Provention shall conduct all Commercialization activities related to Products in compliance in all material
respects with all Applicable Law. Provention shall be responsible for tracking and reporting transfers of value initiated and
controlled by it and its Affiliates, and its and their employees, contractors, and agents pursuant to the requirements of the
marketing reporting laws or research expense reporting laws of any Governmental Authority in the Territory.

 

5.6
Commercialization Report. Commencing six (6) months prior to the anticipated filing of the first BLA for a Product in the
Field in the Territory, at all times during the Agreement Term, and thereafter on a Calendar Year basis, Provention shall provide
to MacroGenics in writing a report detailing Provention’s efforts and progress during the one (1) year prior to such date,
to Commercialize each Product (each, a “Commercialization Report”). Each Commercialization Report shall describe,
among other matters: (a) material Commercialization activities completed since the last report, including the object and parameters
of the Commercialization, when initiated, when completed and a summary of all material results; (b) material Commercialization
activities planned to be undertaken before the next report; and (c) material changes in Provention’s Commercialization plans.
In addition, Provention shall reasonably respond to reasonable requests by MacroGenics from time to time for information regarding
Provention’s Commercialization activities for such Products.

 

ARTICLE
6

PAYMENT OBLIGATIONS

 

6.1
Equity Interest. As partial consideration for the Provention License and other rights granted hereunder, Provention will issue
to MacroGenics a warrant to purchase two hundred seventy thousand and two hundred ninety-nine (270,299) common shares, which is
the number of common shares representing one percent (1%) of Provention’s fully diluted outstanding shares on the issue
date. The warrant will be exercisable for a period beginning on the Effective Date and ending on the date that is seven (7) years
from the Effective Date at a per share exercise price equal to two dollars and fifty cents ($2.50), the per share price at which
the Series A Preferred Shares were issued pursuant to a separate warrant purchase agreement, substantially in the form attached
to this Agreement as Exhibit G (the “Warrant”). MacroGenics shall execute a Lock-Up Agreement in substantially
the form attached hereto as Exhibit H prior to or concurrently with the execution of this Agreement. 

 

6.2
Event Payments. Provention will notify MacroGenics within thirty (30) days following the achievement by any member of the
Provention Group of each Development Event and Sales Event (individually or collectively, the “Event(s)”).
In the case of Sales Events, such thirty (30) day period shall run from the end of the Calendar Quarter during which the relevant
Sales Event was achieved. Provention shall pay MacroGenics the corresponding Development Event Payment within ninety (90) days
after achievement of each Development Event. Provention shall pay MacroGenics the corresponding Sales Event Payment within ninety
(90) days after the end of the Calendar Year in which such Sales Event is achieved.

 

    	 	18	 

    	 

    

 

(a)
Development Events. In consideration for the rights granted to Provention under this Agreement, Provention shall make the
following one-time, non-refundable, non-creditable (i.e., to any other obligation of Provention hereunder) Development Event Payments
(each, a “Development Event Payment”) to MacroGenics, upon the first achievement by a member of the Provention
Group of the corresponding event (each, a “Development Event”). Each Development Event Payment listed in the
table below shall be payable only once upon the first achievement of the corresponding Development Event. 

 

	 	 	Development
    Event Payment
	Development
    Event	 	For
    1st Indication	 	For
    2nd Indication
	[****]	 	[****]United
    States dollars ($[****])	 	[****]
	 	 	 	 	 
	[****]	 	[****]
    United States dollars ($[****])	 	[****]
    United States dollars ($[****])
	 	 	 	 	 
	[****]	 	[****]
    United States dollars ($[****])	 	[****]
    United States dollars ($[****])
	 	 	 	 	 
	[****]	 	[****]
    United States dollars ($[****])	 	[****]
    United States dollars ($[****])

 

If
for any reason the Phase III Study Development Event for any Indication does not occur prior to the occurrence of any BLA Approval
Development Event for such Indication, then the Phase III Study Development Event shall be deemed to occur concurrently with the
occurrence of the first BLA Approval Development Event.

 

(b)
Sales Events. In consideration for the rights granted to Provention under this Agreement, Provention shall make the following
one-time, non-refundable, non-creditable sales event payments (each, a “Sales Event Payment”) to MacroGenics,
upon the first time during the Agreement Term that the total aggregate Net Sales of a Product by the Provention Group in the Territory
for such Product exceed the amounts set forth in the following table (each, a “Sales Event”). For clarity,
each Sales Event Payment below shall be paid only once regardless of the number of Products achieving the applicable Sales Event.

 

	Aggregate
    Worldwide Sales Events
	Sales
    Event	 	Sales
                                         Event Payment
 

	(i)
    Upon the first occasion that aggregate worldwide Net Sales of a Product exceed [****] United States dollars ($[****])	 	[****]
    United States dollars ($[****])
	 	 	 
	(ii)
    Upon the first occasion that aggregate worldwide Net Sales of a Product exceed [****] United States dollars ($[****])	 	[****]
    United States dollars ($[****])
	 	 	 
	(iii)
    Upon the first occasion that aggregate worldwide Net Sales of a Product exceed [****] United States dollars ($[****])	 	[****]
    United States dollars ($[****])

 

    	 	19	 

    	 

    

 

6.3
Royalties.

 

(a)
Royalty Payments. As further consideration for the rights granted to Provention hereunder, Provention shall pay to MacroGenics,
on a Product-by-Product basis, with respect to the aggregate annual Net Sales of each Product in each country in the U.S. Territory
during the applicable Royalty Term for such Product in such country, royalties at a rate of [****] percent ([****]%) of Net Sales
of Product.

 

(b)
Biosimilar Competition. The royalty rate under Sections 6.3(a) shall be reduced by [****] percent ([****]%), on a country-by-country
basis and Product-by-Product basis, in each country in which Biosimilar Competition exists with respect to such Product in a country
of the Territory. 

 

6.4
Third Party Payments.

 
 

(a)
As between the Parties, MacroGenics shall be solely responsible for payments becoming due for any royalties, sublicense revenues,
milestones or other similar obligations arising with respect to any licenses entered into by MacroGenics or its predecessors in
interest prior to the Effective Date that relate to the Exploitation of Products in the Field in the Territory (each, a “Third
Party Obligation”) other than those that are [****] related to the Product under the license elected by MacroGenics
for [****] on [****] under the Non-Exclusive License Agreement between EMD Millipore Corporation (“Millipore”)
and MacroGenics, Inc. effective [****] as amended and restated [****] (the “ Millipore  License”),
for which responsibility shall be allocated as set forth in Section 6.4(c).

 

(b)
Except for Third Party Obligations that MacroGenics is solely responsible for paying pursuant to Section 6.4(a), Provention
shall be responsible for all other Third Party Obligations arising from any Third Party intellectual property rights Provention
secures after the Effective Date; provided that for any Patent Rights that the Provention Group otherwise would reasonably
have been likely to have infringed by selling the relevant Product in the relevant country, Provention shall have the right to
deduct a maximum of [****] percent ([****]%) of the royalties actually paid by Provention to a Third Party with respect to such
arrangement from royalties otherwise due and payable to MacroGenics for such Product in such country during any Calendar Quarter
for which royalties are payable under Section 6.3(a); provided further, that Provention shall not have the right to deduct
any amounts paid by a member of the Provention Group under this Section 6.4(b) to (i) any Third Party that is a member of the
Provention Group or (ii) for any Patent Right that claims (A) any pharmaceutically-active compound other than the Compound, (B)
any use claims (except those claiming one or more approved Indications for the Product in the given country) or (C) any manufacturing
claims. 

 

    	 	20	 

    	 

    

 
  

(c)
Provention shall be responsible for [****] percent ([****]%) of the amounts due to Millipore under the Millipore
License, provided that MacroGenics shall be responsible for making payments to Millipore and complying with all its
other obligations as required under the Millipore License. Provention shall include its share of any royalties due under
the Millipore License in its payment of the amounts due to MacroGenics under Section 6.3(a). In addition, Provention shall
provide MacroGenics with (i) notice of the achievement of any milestone attributable to the Product under the Non-Exclusive License
and (ii) the amount due in connection with such milestone sufficiently in advance of the deadlines provided for under the Millipore
License to allow MacroGenics to make the payments contemplated thereunder. For clarity, any Third Party Obligations that (i)
[****] related to the Product, including those due under MacroGenics [****] Agreement with Millipore , or (ii) are the responsibility
of Provention under Section 6.4(b), shall remain MacroGenics’ sole responsibility.

 

6.5
Royalty Floor. Notwithstanding anything to the contrary in the foregoing, in no event shall the reductions from Section 6.3(b)
and Section 6.4, in the aggregate, reduce the royalties payable to MacroGenics for any Calendar Quarter by more than [****] percent
([****]%) of the payments that would otherwise be due for such Product pursuant to Section 6.3(a).

 

6.6
Qualified Consideration. Provention shall pay MacroGenics an amount equal to [****] percent ([****]%) of all Qualified Consideration
received pursuant to any Qualified Consideration Agreement; provided that if Provention or its Affiliates enter into the Qualified
Consideration Agreement [****], then all such amounts paid to MacroGenics shall be creditable against future milestones related
to the applicable Product which are due to MacroGenics in accordance with Section 6.2. For the avoidance of doubt, in the event
that a Qualified Consideration Agreement involves the grant of rights with respect to the Provention License and rights that relate
to Teplizumab, any milestone payments that would constitute Qualified Consideration shall be allocated to the specific product
(either a Product hereunder or a Teplizumab product) for which such milestone was achieved and any upfront payment or equity received
that would constitute Qualified Consideration shall be allocated to the respective products based on the ratio of the comparative
total milestone payment amounts for such products under such Qualified Consideration Agreement (e.g., if total milestone payments
payable under the Qualified Consideration Agreement equals $100,000,000 and $40,000,000 is based on milestones achieved by a Product
and $60,000,000 is based on milestones achieved by a Teplizumab product, the upfront payment or equity received will be allocated
forty percent (40%) to Product and sixty percent (60%) to Teplizumab).

 

6.7
Reporting.

 

(a)
Royalty Reports and Payment. Within forty-five (45) days (sixty (60) days in the event that a sublicensee has generated Net
Sales) after the conclusion of each Calendar Quarter in which Net Sales are generated or Qualified Consideration is received,
Provention shall deliver to MacroGenics a report containing the following information (in each instance, with a Product-by-Product
and country-by-country breakdown): (i) the gross amount billed or invoiced for Products sold, leased or otherwise transferred
by the Provention Group during the applicable Calendar Quarter; (ii) a calculation of Net Sales for the applicable Calendar Quarter,
including an itemized listing of allowable deductions; (iii) a detailed accounting of all Qualified Consideration received during
the applicable Calendar Quarter; and (iv) the total amount payable to MacroGenics in U.S. dollars on Net Sales and Qualified Consideration
for the applicable Calendar Quarter, together with the exchange rates used for conversion

 

(b)
Timing of Payments. Provention shall pay all amounts due to MacroGenics pursuant to Section 6.3(a) or Section 6.6, as applicable,
with respect to Net Sales by the Provention Group or Qualified Consideration for any Calendar Quarter concurrent with the submission
of the applicable quarterly report pursuant to Section 6.7(a).

 

    	 	21	 

    	 

    

 

(c)
Currency Conversion. Conversion of foreign currency to U.S. Dollars will be made at the conversion rate existing in the United
States (as reported in The Wall Street Journal, Eastern Edition) on the last working day of the applicable Calendar Quarter.
Such payments will be without deduction of exchange, collection or other charges.

 

6.8
Late Payment. Any payment under this Agreement that is overdue shall bear interest, to the extent permitted by Applicable
Laws, at the thirty-day United States Dollar London Interbank Offered Rate (LIBOR) effective for the date that payment was due
(as published in The Wall Street Journal, Eastern Edition) plus three percentage points, on a per year basis.

 

6.9
Currency and Method of Payment. Royalties on Net Sales and all other amounts payable by Provention hereunder shall be paid
by Provention in U.S. Dollars in immediately available funds to account(s) designated in writing by MacroGenics.

 

6.10
Taxes.

 

(a)
Taxes on Income. Each Party shall be solely responsible for the payment of all taxes imposed on its share of income arising
directly or indirectly from the activities of the Parties under this Agreement.

 

(b)
General. Provention will make all payments to MacroGenics under this Agreement without deduction or withholding for taxes,
except to the extent that any such deduction or withholding is required by Applicable Law in effect at the time of payment.

 

(c)
Tax Cooperation. The Parties agree to cooperate with one another and use reasonable efforts to avoid or reduce tax withholding
or similar obligations in respect of any royalties, License Fees, Event Payments, and other payments made by Provention to MacroGenics
under this Agreement. To the extent Provention is required to deduct and withhold taxes on any payment to MacroGenics, Provention
shall be entitled to make such deduction or withholding and shall pay the amounts of such taxes to the proper Governmental Authority
in a timely manner, and, as soon as practicable after any payment of taxes by Provention to a Governmental Authority pursuant
this Section 6.10(c), Provention shall transmit to MacroGenics an official tax certificate or other evidence of such payment sufficient
to enable MacroGenics to claim such payment of taxes. MacroGenics shall provide Provention any tax forms that may be reasonably
necessary in order for Provention, as permitted by Applicable Law, to not withhold tax or to withhold tax at a reduced rate under
an applicable bilateral income tax treaty, to the extent MacroGenics is legally able to do so. In addition, MacroGenics shall
deliver such documentation prescribed by Applicable Law or reasonably requested by Provention as will enable Provention to determine
whether or not MacroGenics is subject to backup withholding or information reporting requirements. MacroGenics shall deliver to
Provention on or prior to the date of this Agreement (and from time to time thereafter upon the reasonable request of Provention)
executed originals of IRS Form W-9 certifying that MacroGenics is exempt from U.S. federal backup withholding tax. Each Party
shall provide the other with reasonable assistance to enable the recovery, as permitted by Applicable Law, of withholding taxes
or similar obligations resulting from payments made under this Agreement, such recovery to be for the benefit of MacroGenics as
the Party bearing such withholding tax under this Section 6.10(c). In addition, the Parties shall cooperate in accordance with
Applicable Law to minimize indirect taxes (such as value added tax, sales tax, consumption tax and other similar taxes) in connection
with this Agreement.

 

(d)
Assignment. If Provention assigns its rights and obligations hereunder to an Affiliate or Third Party in compliance with Section
13.3 and if such Affiliate or Third Party shall be required by Applicable Law to withhold any additional taxes from or in respect
of any amount payable to MacroGenics under this Agreement solely as a result of such assignment by Provention, then any such amount
payable under this Agreement shall be increased to take into account the additional taxes withheld as may be necessary so that,
after making all required withholdings, MacroGenics receives an amount equal to the sum it would have received had no such assignment
been made. The foregoing sentence shall not apply to any additional taxes withheld for which MacroGenics may obtain a foreign
tax credit.

 

    	 	22	 

    	 

    

 

6.11
Records and Audit Rights. Provention will maintain, and cause its Affiliates and Sublicensees to maintain, complete and accurate
books and records in sufficient detail to enable verification of the correctness of the payments due hereunder. MacroGenics may
audit Provention’s and its Affiliates’ and Sublicensees’ relevant books and records in order to verify the aforesaid
matters. Upon reasonable prior notice and during normal business hours, MacroGenics’ independent public accountants, subject
to confidentiality obligations consistent with Article 8, shall have access to such books and records in order to conduct such
a review or audit. The Parties shall reconcile any underpayment within sixty (60) days after the accountant delivers the results
of the audit. If any audit performed under this Section 6.11 reveals an underpayment in excess of [****] percent ([****]%) in
any Calendar Year, Provention shall reimburse MacroGenics for all amounts incurred in connection with such audit. MacroGenics
may exercise its rights under this Section 6.11 only once every year per audited entity and only with reasonable prior notice
to the audited entity. This Section 6.11 shall survive expiration or termination for a period of one (1) year.

 

ARTICLE
7

INTELLECTUAL PROPERTY RIGHTS

 

7.1
Ownership of Inventions. Each Party shall own any Inventions made solely by its (or its Affiliates’) own employees,
agents, or independent contractors in the course of conducting its activities under this Agreement, together with all intellectual
property rights therein (“Sole Inventions”). The Parties shall jointly own any Inventions for which the inventors
include at least one employee, agent, or independent contractor of each Party (or its respective Affiliates) in the course of
performing activities under this Agreement, together with all intellectual property rights therein (“Joint Inventions”);
provided that, any Inventions that are not Covered by a Product Claim and are improvements to the DART Platform or Platform
Patents (such Inventions, “MacroGenics Platform Inventions”) shall be treated as MacroGenics’ Sole Inventions
and shall not constitute “Joint Inventions” or Provention’s “Sole Inventions” for purposes of this
Agreement but shall be deemed included in the license granted to Provention pursuant to Section 2.1(ii) and any Inventions that
are Covered by a Product Claim shall be deemed included in the license granted to Provention pursuant to Section 2.1(i); provided
further, Provention hereby assigns, and agrees to assign to MacroGenics, all of its and Provention Group’s right, title
and interest in MacroGenics Platform Inventions, together with all intellectual property rights in the foregoing. Inventorship
shall be determined in accordance with U.S. patent laws. Subject to any licenses granted under this Agreement, each Party will
have the right to practice and Exploit any Joint Inventions without the duty of accounting to any other Party or seeking consent
(for licensing, assigning or otherwise exploiting Joint Inventions) from the other Party by reason of the joint ownership thereof;
and each Party hereby waives any right such Party may have under the laws of any jurisdiction to require any such approval or
accounting and, to the extent there are any Applicable Laws that prohibit such a waiver, each Party will be deemed to have so
consented. In furtherance thereof, at the reasonable written request of a Party, the other Party will in writing grant such consents
and confirm that no such accounting is required to effect the foregoing regarding Joint Inventions.

 

7.2
Disclosure of Inventions. Provention shall promptly disclose to MacroGenics any Invention that relates to the Compound or
Products or DART® Molecules and/or the Manufacture of DART® Molecules generally. With
respect to any Joint Invention, each Party shall promptly disclose to the other Party any invention disclosures, or other similar
documents, submitted to it by its employees, agents or independent contractors describing the Joint Invention, and all Information
relating to such Invention to the extent necessary for the use of such Invention in the Development or Commercialization of the
Compound or the Products in the Field and, to the extent patentable, for the preparation, filing and maintenance of any Patent
with respect to such Invention.

 

    	 	23	 

    	 

    

 

7.3
Prosecution of Patents.

 

(a)
MacroGenics Patents. As between the Parties, MacroGenics shall have the sole right and authority, to prepare, file, prosecute
and maintain the MacroGenics Patents on a worldwide basis; provided that Provention shall have the right to direct MacroGenics
to prepare, file, prosecute and maintain MacroGenics Patents in specified countries and/or regions at Provention’s expense,
MacroGenics shall, during the Agreement Term, (i) keep Provention reasonably informed of the status of the MacroGenics Patents
and provide Provention with copies of material communications from any patent authority in the Territory in connection therewith;
(ii) provide Provention with drafts of all proposed material filings and correspondences to any patent authorities with respect
to the MacroGenics Product Patents having at least one independent Product Claim for Provention’s review and comment prior
to the submission of such proposed filings and correspondences. MacroGenics shall reasonably consider in good faith Provention’s
comments prior to submitting such filings and correspondences and shall not unreasonably disregard any such comments. If MacroGenics
determines in its discretion to abandon or not maintain any MacroGenics Patent(s) which Covers the Compound or Product in any
country(ies) of the world, then MacroGenics shall provide Provention with written notice of such determination within such period
of time reasonably necessary to allow Provention to request that MacroGenics continue to maintain and/or prosecute of such MacroGenics
Patent (which notice from MacroGenics shall be given no later than thirty (30) days prior to any final deadline for any pending
action or response that may be due with respect to such MacroGenics Patent(s) with the applicable patent authority). Upon receipt
of any such request, MacroGenics shall continue to prosecute and maintain such MacroGenics Patent(s) in such country(ies) at Provention’s
expense; provided, however, that MacroGenics shall not be required to continue to prosecute or maintain any such MacroGenics
Patent(s) if, instead of prosecuting such patent application, MacroGenics instead files a divisional, continuation or continuation-in-part
of such patent application to be prosecuted by MacroGenics, which divisional, continuation or continuation-in-part Covers the
same or greater scope for the Compound or relevant Product as the MacroGenics Patent(s) proposed to be abandoned. Notwithstanding
anything to the contrary in this Section 7.3(a), unless consented to by Provention in writing (such consent not to be unreasonably
withheld, delayed or denied), MacroGenics shall prepare, file, prosecute and maintain the MacroGenics Patents that Cover the Compound
or Product in the Major Markets at its sole expense throughout the Term.

 

(b)
Provention Patents. Provention shall have the sole right and authority to prepare, file, prosecute and maintain the Provention
Patents on a worldwide basis at its sole expense. 

 

(c)
Joint Patents. Except as otherwise provided in this Section 7.3(c), Provention shall have the primary right and authority
to prepare, file, prosecute and maintain the Patent Rights included in the Joint Inventions (“Joint Patents”)
on a worldwide basis at its own expense. Provention shall provide MacroGenics with a reasonable opportunity to review and comment
on its efforts to prepare, file, prosecute and maintain Joint Patents, including by providing MacroGenics with a copy of material
communications from any patent authority regarding any Joint Patent, and by providing drafts of any material filings or responses
to be made in advance of submitting such filings or responses. Provention shall consider MacroGenics’ comments regarding
such communications and drafts in good faith and shall not unreasonably disregard any such comments. If Provention determines
in its discretion to abandon or not maintain any Joint Patent(s) in any country(ies) of the world, then Provention shall provide
MacroGenics with written notice of such determination within such period of time reasonably necessary to allow MacroGenics to
determine its interest in such Joint Patent(s) (which notice from Provention shall be given no later than sixty (60) days prior
to any final deadline for any pending action or response that may be due with respect to such Joint Patent(s) with the applicable
patent authority). If MacroGenics provides written notice expressing its interest in obtaining such Joint Patent(s), Provention
shall, free of charge, assign and transfer to MacroGenics the ownership of, and interest in, such Joint Patent(s) in such country(ies),
at MacroGenics’ own expense, and Provention shall cooperate with MacroGenics for assignment and transfer of such Joint Patent(s)
in such country. Thereafter, all such assigned and transferred Patents will be deemed MacroGenics Platform Patents and MacroGenics
shall have the sole right to prepare, file, prosecute and maintain such Patent Rights as set forth in Section 7.3(a).

 

    	 	24	 

    	 

    

 

(d)
Cooperation in Prosecution. Each Party shall provide the other Party all reasonable assistance and cooperation in the Patent
prosecution efforts provided above in this Section 7.3, including providing any necessary powers of attorney and executing any
other required documents or instruments for such prosecution, as well as further actions as set forth below. Such assistance and
cooperation shall include making a Party’s inventors and other scientific advisors reasonably available to assist the other
Party’s prosecution efforts.

 

(i)
The Parties shall respectively prepare, file, maintain and prosecute the MacroGenics Patents, the Provention Patents and the
Joint Patents as set forth in this Section 7.3. As used herein, “prosecution” of such Patents shall include all communication
and other interaction with any patent office or patent authority having jurisdiction over a patent application in connection with
pre-grant proceedings.

 

(ii)
All communications between the Parties relating to the preparation, filing, prosecution or maintenance of the MacroGenics
Patents, the Provention Patents and the Joint Patents, including copies of any draft or final documents or any communications
received from or sent to patent offices or patenting authorities with respect to such Patents, shall be considered Confidential
Information of the Party Controlling the relevant Patent and subject to the confidentiality provisions of Article 8.

 

7.4
Patent Term Extensions in the Territory. Provention, in consultation with MacroGenics, shall decide for which, if any, of
MacroGenics Product Patents, Joint Patents and Provention Patents the Parties should seek patent term extensions, supplemental
protection certificates or their equivalents (each, a “Patent Extension” and collectively, “Patent
Extensions”) in the Territory. MacroGenics, in the case of a MacroGenics Product Patent, and Provention, in the case
of a Provention Patent or Joint Patent, shall act with reasonable promptness in light of the developmental stage of the Products
to apply for any such Patent Extension. In the event that the opportunity to seek a patent extension, supplemental protection
certificate or an equivalent becomes available for a Product in the Territory based on a MacroGenics Platform Patent (“Platform
Patent Extension”), MacroGenics shall have the sole right to seek such Platform Patent Extension if there are no other
Patent Rights for which a Patent Extension could reasonably be sought. In the event that Provention does not intend to seek Patent
Extensions for any MacroGenics Product Patent or Joint Patent, it shall so inform MacroGenics in writing in sufficient time to
permit MacroGenics to seek a Patent Extension on any such MacroGenics Product Patent or Joint Patent. The Party that does not
apply for a Patent Extension hereunder will cooperate fully with the other Party in making such filings or actions, including
making available all required regulatory data and Information and executing any required authorizations, to enable the other Party
to apply for such Patent Term Extension. All expenses incurred in connection with activities of each Party with respect to the
Patent Right(s) for which such Party seeks Patent Extension pursuant to this Section 7.4 shall be entirely borne by such Party.

 

    	 	25	 

    	 

    

 

7.5
Infringement of Patents by Third Parties.

 

(a)
Notification. Each Party shall promptly notify the other Party in writing of any existing, alleged or threatened infringement
of any MacroGenics Patent, Joint Patent or Provention Patent of which it becomes aware, and shall provide all Information in such
Party’s possession or control demonstrating such infringement.

 

(b)
Infringement of MacroGenics Product Patents or Joint Patents.

 

(i)
Provention, subject to Section 7.5(b)(ii) through Section 7.5(b)(vii) and the rights of any Third Party licensor of MacroGenics
Product Patents, shall have the first right, but not the obligation, to bring an appropriate suit or other action against any
Third Party engaged in any existing, alleged or threatened infringement of any MacroGenics Product Patent or Joint Patent that
has claims that solely and specifically Cover the Exploitation of the Compound or Products.

 

(ii)
Provention shall notify MacroGenics of its election to take any action in accordance with Section 7.5(b)(i) within the earlier
of: (A) ninety (90) days after the first notice under Section 7.5(a); or (B) fifteen (15) days before any time limit set forth
in Applicable Law or regulation, including the time limits set forth under the Hatch-Waxman Act. Notwithstanding the foregoing
sentence, Provention shall not initiate any such suit or take such other action with respect to any MacroGenics Product Patent
or Joint Patent without first consulting with MacroGenics and giving good faith consideration to any reasonable objection from
MacroGenics regarding Provention’s proposed course of action and shall enforce the MacroGenics Product Patent Rights consistent
with MacroGenics’ obligations and rights under any Third Party Licenses. MacroGenics shall cooperate in the prosecution
of any suit under this Section 7.5 as may be reasonably requested by Provention. In the event that Provention elects not to initiate
a lawsuit or take other reasonable action with respect to an infringement described in Section 7.5(b)(i), MacroGenics shall have
the right, but not the obligation, to initiate such suit or take such other action, after providing thirty (30) days (or five
(5) days in the event there is a time limit) notice to Provention and giving good faith consideration to Provention’s reason(s)
for not initiating a suit or taking other action. 

 

(iii)
If one Party elects to bring suit or take action under this Section 7.5(b) against an infringement, then the other Party shall
have the right, prior to commencement of the suit or action, to join any such suit or action.

 

(iv)
Each Party shall provide to the Party enforcing any such rights under this Section 7.5(b) reasonable assistance in such enforcement,
at such enforcing Party’s request and expense, including joining such action as a party plaintiff if required by Applicable
Law to pursue such action. The enforcing Party shall keep the other Party regularly informed of the status and progress of such
enforcement efforts, shall reasonably consider the other Party’s comments on any such efforts, and shall consult the other
Party in any important aspects of such enforcement, including determination of material litigation strategy and filing of important
papers to the competent court.

 

(v)
Each Party shall bear all of its own internal costs incurred in connection with its activities under this Section 7.5(b).

 

(vi)
The Party not bringing an action with respect to infringement in the Territory under this Section 7.5(b) shall be entitled
to separate representation in such matter by counsel of its own choice and at its own expense, but such Party shall at all times
cooperate fully with the Party bringing such action.

 

    	 	26	 

    	 

    

 

(vii)
Neither Party shall settle any claim, suit or action that it brought under this Section 7.5 involving MacroGenics Product
Patents or Joint Patents without the prior written consent of the other Party, such consent not to be unreasonably withheld, delayed
or conditioned. 

 

(c)
Infringement of Provention Patents. For any and all infringement of any Provention Patent, Provention shall have the sole
and exclusive right, but not the obligation, to bring, at Provention’s expense and in its sole control, an appropriate suit
or other action against any person or entity engaged in such infringement of the Provention Patent.

 

(d)
Infringement of Other MacroGenics Patents. For any and all infringement of any MacroGenics Patent other than a MacroGenics
Product Patent (a “Platform Patent”), MacroGenics shall have the sole and exclusive right, but not the obligation,
to bring, at MacroGenics’ expense and in its sole control, an appropriate suit or other action against any person or entity
engaged in such infringement of such MacroGenics Patent; provided that if a Platform Patent is reasonably likely to have the effect
of blocking Biosimilar Competition, MacroGenics shall have the obligation, at Provention’s reasonable request, to bring
a claim or suit against any person or entity engaged or alleged to be engaged in infringement of the subject Platform Patent.

 

(e)
Allocation of Proceeds. If either Party recovers monetary damages from any Third Party in a suit or action brought under Section
7.5(b) or Section 7.7(a) or any royalties, milestones or other payments from a license agreement with a Third Party related to
any alleged infringement related to a Product, whether such damages or royalties result from the infringement of MacroGenics Product
Patents or Joint Patents, such recovery (“Infringement Recovery”) shall be allocated first to the reimbursement
of any expenses incurred by the Parties in such litigation, action or license negotiations, and any remaining amounts shall be
allocated as follows:

 

(i)
with respect to suits or actions brought by Provention, if the recovery award is based on reasonable royalty payments, such
remaining amount shall be deemed Qualified Consideration if the award is based on lost profits, MacroGenics shall receive an amount
equal to the royalty that would be payable, pursuant to Section 6.3 on the corresponding amount (as determined by the court) of
Net Sales represented by such loss profits of the relevant Product(s); and 

 

(ii)
with respect to all suits or actions brought by MacroGenics, the recovery shall be retained by MacroGenics. 

 

7.6
Infringement of Third Party Rights in the Territory.

 

(a)
Notice. If any Product used or sold by either Party, its Affiliates, or sublicensees becomes the subject of a Third Party’s
claim or assertion of infringement of a Patent Right granted by a jurisdiction within the Territory, the Party first having notice
of the claim or assertion shall promptly notify the other Party.

 

(b)
Defense. Provention shall have the first right, but not the obligation, to defend against any such Third Party claim or assertion
of infringement of a Patent Right as described in Section 7.6(a) above, at Provention’s expense. If Provention does not
commence actions to defend such claim within thirty (30) days after it receives notice thereof (or within thirty (30) days after
it should have given notice thereof to MacroGenics as required by Section 7.6(a)), then to the extent allowed by Applicable Law,
MacroGenics shall have the right, but not the obligation, to control the defense of such claim by counsel of its choice, at MacroGenics’
expense. The non-defending Party shall reasonably cooperate with the Party conducting the defense of the claim or assertion, including
if required to conduct such defense, furnishing a power of attorney. 

 

    	 	27	 

    	 

    

 

(c)
Settlement; Licenses. Neither Party shall enter into any settlement of any claim described in this Section 7.6 that affects
the other Party’s rights or interests without such other Party’s written consent, such consent not to be unreasonably
withheld, delayed or conditioned. Each Party shall have the right to decline to defend or to tender defense of any claim described
in this Section 7.6 upon reasonable notice to the other Party, including if the other Party fails to agree to a settlement that
the declining Party proposes. In the event that it is determined by any court of competent jurisdiction that any Exploitation
of a Product, conducted in accordance with the terms and conditions of this Agreement, infringes, or Provention determines reasonably
and in good faith that such activities are likely to infringe, any Patent Right, copyright, trademark, data exclusivity right
or trade secret right arising under Applicable Law of any Third Party, Provention shall use Commercially Reasonable Efforts to,
at its expense: (i) procure a license from such Third Party authorizing Provention to continue to conduct such activity (in which
case the royalties payable thereunder may be deducted from royalties otherwise due to MacroGenics hereunder to the extent permitted
by Sections 6.4(b) and 6.5 hereof); or (ii) modify such activity so as to render it non-infringing. In the event that Provention
decides that neither of the foregoing alternatives is reasonably available or commercially feasible, Provention may, at its discretion,
terminate this Agreement in accordance with Section 10.2. 

 

7.7
Patent Oppositions and Other Proceedings.

 

(a)
Third-Party Patent Rights. If either Party desires to bring an opposition, action for declaratory judgment, nullity action,
interference, declaration for non-infringement, reexamination or other attack upon the validity, title or enforceability of a
Patent Right owned or controlled by a Third Party and having one or more claims that Cover the Compound or Product, or the use,
sale, offer for sale or importation of the Compound or Product (except insofar as such action is a counterclaim to or defense
of, or accompanies a defense of, a Third Party’s claim or assertion of infringement under Section 7.6, in which case the
provisions of Section 7.6 shall govern), such Party shall so notify the other Party and the Parties shall promptly confer to determine
whether to bring such action or the manner in which to settle such action. Provention shall have the exclusive right, but not
the obligation, to bring, at its own expense and in its sole control, such action in the Territory. If Provention does not bring
such an action in the Territory, within ninety (90) days of notification thereof pursuant to this Section 7.7(a) (or earlier,
if required by the nature of the proceeding), MacroGenics shall have the right, but not the obligation, to bring, at MacroGenics’
own expense, such action. The Party not bringing an action under this Section 7.7(a) shall be entitled to separate representation
in such proceeding by counsel of its own choice and at its own expense, and shall cooperate fully with the Party bringing such
action. Any awards or amounts received in bringing any such action shall be first allocated to reimburse the initiating Party’s
expenses in such action, and any remaining amounts shall be allocated between the Parties as provided in Section 7.5(e).

 

(b)
Parties’ Patent Rights. If any MacroGenics Product Patent or Joint Patent becomes the subject of any proceeding commenced
by a Third Party within the Territory in connection with an opposition, reexamination request, action for declaratory judgment,
nullity action, interference or other attack upon the validity, title or enforceability thereof (a “Third Party Patent
Challenge”) (except insofar as such action is a counterclaim to or defense of, or accompanies a defense of, an action
for infringement against a Third Party under Section 7.6, in which case the provisions of Section 7.6 shall govern), then the
Party responsible for filing, preparing, prosecuting and maintaining such Patent as set forth in Section 7.3 hereof, shall control
such defense at its own expense. The controlling Party shall permit the non-controlling Party to participate in the proceeding
to the extent permissible under Applicable Law, and to be represented by its own counsel in such proceeding, at the non-controlling
Party’s expense. If either Party decides that it does not wish to defend against such action, then the other Party shall
have a backup right to assume defense of such Third Party action at its own expense. Any awards or amounts received in defending
any such Third Party action shall be allocated between the Parties as provided in Section 7.5(e). MacroGenics shall have the sole
discretion whether to defend and shall solely control any defense of a Platform Patent which is the subject of a Third Party Patent
Challenge; provided that MacroGenics shall keep Provention reasonably informed regarding such enforcement and shall consider
Provention’s comments regarding such enforcement in good faith.

 

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ARTICLE
8

CONFIDENTIALITY; PUBLICATION

 

8.1
Non-Use and Non-Disclosure. During the Agreement Term and for seven (7) years thereafter, a Receiving Party shall (and shall
require its Affiliates to): (a) maintain in confidence all Confidential Information of the Disclosing Party using not less than
the efforts such Receiving Party uses to maintain in confidence its own confidential or proprietary Information of similar kind
and value, (b) take all reasonable precautions not to disclose such Confidential Information of the Disclosing Party to Third
Parties, without the Disclosing Party’s prior written consent, except for disclosures expressly permitted below and (c)
not use such Confidential Information of the Disclosing Party for any other purpose other than for fulfilling its obligations
or exercising its rights under this Agreement. Notwithstanding anything to the contrary in the foregoing, the obligations of confidentiality
and non-use with respect to any trade secret within such Confidential Information shall survive such seven (7) year period for
so long as such Confidential Information remains protected as a trade secret under Applicable Law.

 

8.2
Permitted Disclosure. Notwithstanding the obligation of non-use and non-disclosure set forth in Section 8.1, the Receiving
Party may disclose Confidential Information of the Disclosing Party only to the extent such disclosure is reasonably necessary
in the following instances:

 

(a)
filing, prosecuting, maintaining, enforcing or defending Patents as permitted by this Agreement;

 

(b)
as reasonably required in generating Regulatory Documentation and obtaining Regulatory Approvals;

 

(c)
prosecuting or defending litigation, including responding to a subpoena in a Third Party litigation;

 

(d)
complying with Applicable Law or court or administrative orders;

 

(e)
complying with any obligation under this Agreement;

 

(f)
in communications with existing or bona fide prospective acquirers, merger partners, financing sources, investment bankers,
lenders or investors, and consultants and advisors of the Receiving Party in connection with transactions or bona fide prospective
transactions with the foregoing, in each case on a “need-to-know” basis and under appropriate confidentiality provisions
substantially equivalent to those of this Agreement; provided however, that the Receiving Party shall remain responsible
for any violation of such confidentiality provisions by any Third Party receiving such Confidential Information; or

 

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(g)
to its Affiliates, sublicensees or prospective sublicensees, subcontractors or prospective subcontractors, consultants, agents
advisors and other Third Parties on a “need-to-know” basis in order for the Receiving Party to exercise its rights
or fulfill its obligations under this Agreement, each of whom prior to disclosure must be bound by obligations of confidentiality
and restrictions on use of such Confidential Information that are no less restrictive than those set forth in this Article 8;
provided however, that, in each of the above situations, the Receiving Party shall remain responsible for any failure by
any person or entity who receives Confidential Information pursuant to this Section 8.2(g) to treat such Confidential Information
as required under this Article 8.

 

If
and whenever any Confidential Information is disclosed in accordance with this Section 8.2, such disclosure shall not cause any
such information to cease to be Confidential Information except to the extent that such disclosure results in a public disclosure
of such information (other than by breach of this Agreement). Notwithstanding the foregoing, in the event a Party is required
to make a disclosure of the other Party’s Confidential Information pursuant to (i) Sections 8.2(b), 8.2(c) or 8.2(d), it
will, except where impracticable or not legally permitted, give reasonable advance notice to the other Party of such disclosure
and (ii) Sections 8.2(a) through 8.2(e), it will use not less than the same efforts to secure confidential treatment of such information
as it would to protect its own confidential information from disclosure.

 

8.3
Publicity.

 

(a)
Attached as Exhibit G is a copy of the press release to be issued by Provention in connection with this Agreement. Except
as set forth in the previous sentence or as required to comply with Applicable Law or as set forth in Section 8.3(b), each Party
agrees not to issue any other press release or other public statement disclosing other information relating to this Agreement
or the transactions contemplated hereby without the prior written consent of the other Party, such consent not to be unreasonably
withheld, delayed or conditioned.

 

(b)
The Parties acknowledge the importance of supporting each other’s efforts to publicly disclose results and significant
developments regarding the Compound and Products and other activities in connection with this Agreement that may include information
that is not otherwise permitted to be disclosed under this Article 8, and that may be beyond what is required by Applicable Law,
but in each case consistent with the need to keep investors informed regarding such Party’s business in accordance with
customary investor relations, and each Party may request the right to make such disclosures from time to time. Such disclosures
may include achievement of milestones, significant events in the Development and regulatory process, Commercialization activities
and the like. Except for the initial press release(s) described in Section 8.3(a), whenever a Party (the “Requesting
Party”) elects to make any such public disclosure, it shall first notify the other Party (the “Cooperating
Party”) of such planned press release or public announcement and provide a draft for review at least three (3) Business
Days in advance of issuing such press release or making such public announcement (or, with respect to press releases and public
announcements that are required by Applicable Law, or by regulation or rule of any public stock exchange (including NASDAQ), with
as much advance notice as reasonably practicable under the circumstances if it is not possible to provide notice at least three
(3) Business Days in advance). The Requesting Party and Cooperating Party will discuss such proposed public disclosure in good
faith. Unless otherwise permitted pursuant to Section 8.4 or required by Applicable Law, or by regulation or rule of any public
stock exchange (including NASDAQ), the Requesting Party will not issue such press release or make such public announcement without
the prior written consent of the Cooperating Party, not to be unreasonably withheld, conditioned or delayed, provided that
a Party may issue such press release or make such public announcement if: (i) the contents of such press release or public
announcement have previously been made public other than through a breach of this Agreement by the Requesting Party, (ii) such
press release or public announcement does not materially differ from the previously issued press release or other publicly available
information, and (iii) the Requesting Party notifies the Cooperating Party reasonably in advance of issuance. The principles to
be observed in such disclosures shall include accuracy, compliance with Applicable Law and regulatory guidance documents, reasonable
sensitivity to potential negative reactions of the FDA (and its foreign counterparts), the need to protect competitively sensitive
information regarding the Compound and Products and the need to keep investors informed regarding the Requesting Party’s
business. 

 

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8.4
Securities Filings. Notwithstanding anything to the contrary in this Article 8, in the event either Party seeks to file with
the U.S. Securities and Exchange Commission or the securities regulators of any state or other jurisdiction a registration statement
or any other disclosure document that describes or refers to the terms and conditions of this Agreement or any related agreements
between the Parties, or requires the filing of this Agreement as an exhibit to such registration, statement or disclosure document,
such Party shall, to the extent practicable, notify the other Party of such intention and shall provide the other Party with a
copy of relevant portions of the proposed filing within a reasonable time prior to the filing thereof such that the other Party
shall have the opportunity to comment on such filing (which comments the filing Party shall reasonably consider in good faith);
provided that, no notice or comment period shall be required under this Section 8.4 if the description of or reference
to this Agreement or any related agreement between the Parties contained in the proposed filing has been included in any previous
filing made by either Party in accordance with this Section 8.4 or otherwise approved by the other Party. Each Party acknowledges
that the other Party may be required by securities regulators, including the U.S. Securities and Exchange Commission, or advised
by such other Party’s outside counsel that the financial terms, including the milestone amounts and/or royalty rates must
be included in such filings.

 

8.5
Relationship to Confidentiality Agreement. This Agreement supersedes the Mutual Confidentiality Agreement between MacroGenics
and Provention, effective as of August 8, 2017 (the “Prior CDA”); provided however, that all “Confidential
Information” disclosed or received by the Parties and their Affiliates thereunder shall be deemed Confidential Information
hereunder and shall be subject to the terms and conditions of this Agreement.

 

8.6
Equitable Relief. Given the nature of the Confidential Information and the competitive damage that could result to a Party
upon unauthorized disclosure, use or transfer of its Confidential Information to any Third Party, the Parties agree that monetary
damages may not be a sufficient remedy for any breach of this Article 8. In addition to all other remedies, a Party shall be entitled
to seek specific performance and injunctive and other equitable relief as a remedy for any breach or threatened breach of this
Article 8.

 

8.7
Publications. Provention shall have the sole right to publish results of all Clinical Studies conducted with respect to the
Compound or a Product; provided however, MacroGenics as the non-publishing Party (the “Reviewing Party”)
shall have the right to review all proposed publications of Provention (the “Publishing Party”) prior to submission
of each publication, for the purposes reviewing and commenting on the subject matter of such publication and of identifying any
relevant intellectual property or Confidential Information of the Reviewing Party. Publishing Party shall provide Reviewing Party
with a copy of the applicable proposed abstract, manuscript, or presentation no less than thirty (30) days (fifteen (15) days
in the case of abstracts) prior to its intended submission for publication. Reviewing Party shall respond in writing promptly
and in no event later than thirty (30) days (fifteen (15) days in the case of abstracts) after receipt of the proposed material
with any comments or concerns regarding the scientific integrity or other aspects of the subject matter of the proposed publication
and any concerns regarding patentability or protection of Reviewing Party’s Confidential Information. The Publishing Party
will consider any comments and concerns expressed by the Reviewing Party regarding the subject matter of a proposed publication
in good faith. In the event of concern over patent protection, Publishing Party agrees not to submit such publication or to make
such presentation that contains such information until Reviewing Party is given a reasonable period of time, and in no event less
than thirty (30) days, to seek patent protection for any material in such publication or presentation which it believes is patentable,
unless Publishing Party reasonably determines that publication of such information is required by Applicable Law. Subject to Section
8.2, any Confidential Information of Reviewing Party shall, if requested by Reviewing Party, be removed by Publishing Party from
such publication or presentation.

 

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8.8
Attorney-Client Privilege. Neither Party is waiving, nor shall be deemed to have waived or diminished, any of its attorney
work product protections, attorney-client privileges or similar protections and privileges or the like as a result of disclosing
information pursuant to this Agreement, or any of its Confidential Information (including Confidential Information related to
pending or threatened litigation) to the Receiving Party, regardless of whether the Disclosing Party has asserted, or is or may
be entitled to assert, such privileges and protections. The Parties: (a) share a common legal and commercial interest in such
disclosure that is subject to such privileges and protections; (b) are or may become joint defendants in proceedings to which
the information covered by such protections and privileges relates; (c) intend that such privileges and protections remain intact
should either Party become subject to any actual or threatened proceeding to which the Disclosing Party’s Confidential Information
covered by such protections and privileges relates; and (d) intend that after the Effective Date both the Receiving Party and
the Disclosing Party shall have the right to assert such protections and privileges.

 

ARTICLE
9

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

9.1
Mutual Representations, Warranties and Covenants. Each of the Parties hereby represents and warrants to the other Party as
of the Effective Date and, as applicable, hereinafter covenants that:

 

(a)
It is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of organization,
and has all requisite power, authority, and legal right, and is free, to enter into this Agreement; 

 

(b)
The execution, delivery, and performance of this Agreement by such Party have been duly authorized by all necessary corporate
action and do not conflict with any agreement, obligation, instrument, or understanding, oral or written, to which it is a party
or by which it is bound, nor violate any Applicable Law or any order, writ, judgment, injunction, decree, determination, or award
of any Governmental Authority presently in effect applicable to such Party;

 

(c)
It is not aware of any government authorization, consent, approval, license, exemption of or filing or registration with any
Governmental Authority under any Applicable Law, currently in effect, necessary for, or in connection with, the transactions contemplated
by this Agreement or any other agreement or instrument executed in connection herewith, or for the performance by it of its obligations
under this Agreement or such other agreements (save for Regulatory Approvals and similar authorizations from Governmental Authorities
necessary for the Exploitation of the Compound and Products as contemplated hereunder), except as may be required to obtain clearance
of this Agreement under the HSR Act;

 

(d)
It is not under any obligation, contractual or otherwise, to any party that conflicts with or is inconsistent in any material
respect with the terms of this Agreement, or that would impede the diligent and complete fulfillment of its obligations hereunder;

 

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(e)
This Agreement constitutes a legal, valid, and binding obligation of such representing Party and is enforceable against it
in accordance with its terms, subject to the effects of bankruptcy, insolvency, or other laws of general application affecting
the enforcement of creditor rights and judicial principles affecting the availability of specific performance and general principles
of equity, whether enforceability is considered a proceeding at law or equity;

 

(f)
There are no claims or investigations, pending or, to the knowledge of the representing Party, threatened against the representing
Party or any of its Affiliates, at law or in equity, or before or by any Governmental Authority relating to the matters contemplated
under this Agreement or that would materially adversely affect such representing Party’s ability to perform its obligations
hereunder;

 

(g)
Neither such representing Party, nor any of its Affiliates, or its or their employees, officers, subcontractors or consultants
who have rendered or shall render services relating to the Compound or Product (i) has ever been debarred or is subject to debarment
or convicted of a crime for which an entity or person could be debarred under 21 U.S.C. Section 335a or (ii) has ever been under
indictment for a crime for which a person or entity could be debarred under said Section 335a; and

 

(h)
The representing Party shall inform the other Party in writing promptly if during the Agreement Term it or any of its Affiliates,
or its or their employees, officers, subcontractors or consultants who is rendering services related to the Compound or Product
under this Agreement is debarred or is the subject of a conviction described in Section 306 of the FFDCA, or if any action, suit,
claim, investigation or legal or administrative proceeding is pending or, to the representing Party’s knowledge, is threatened,
relating to the debarment or conviction of the representing Party, any of its Affiliates or its or their employees, officers,
subcontractors or consultants performing services hereunder. 

 

9.2
Additional Representations and Warranties of MacroGenics. MacroGenics represents and warrants as of the Effective Date that:

 

(a)
MacroGenics is the exclusive owner of all right, title and interest in, or is a licensee of, the MacroGenics Technology.

 

(b)
MacroGenics is entitled to grant the rights and licenses granted to Provention under this Agreement, and is not currently
bound by any agreement with any Third Party, or by any outstanding order, judgment, or decree of any court or administrative agency,
that restricts it from granting to Provention the rights and licenses as set forth in this Agreement.

 

(c)
MacroGenics has complied in all respects with and is not in breach, violation or noncompliance of any Applicable Laws with
respect to its ownership, use, or Manufacture of the Product.

 

(d)
MacroGenics has made timely payment of any filing, registration, examination, maintenance and renewal fees due with respect
to the MacroGenics Patents, except where the failure to do so does not have a material adverse effect with respect to the applicable
MacroGenics Patents.

 

(e)
To the knowledge of MacroGenics, the Exploitation of the Compound or the Products in the manner contemplated by this Agreement
in the Field in the Territory as of the Effective Date does not infringe any Valid Claim of a Third Party. To the knowledge of
MacroGenics, no Third Party is infringing any MacroGenics Patents in the Territory. MacroGenics has not received any written notice
from any Third Party asserting that any of the MacroGenics Patents in the Territory are invalid, unenforceable, or not infringed.
MacroGenics has not provided any Third Party written notice that such Third Party infringes or has infringed the MacroGenics Patents
or misappropriated or used, without authorization, the MacroGenics Know-How. MacroGenics has not received any notice of infringement
of any Patent Rights owned by any Third Party that would prevent Provention from Exploiting the Compound or the Products in the
Field in the Territory.

 

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(f)
Each of the Third Party Licenses identified on Exhibit D remains in full force and effect and (i) MacroGenics and, (ii) to
MacroGenics’ knowledge, each counterparty to such Third Party Licenses, are each in compliance in all material respects
with the terms of the applicable Third Party Licenses (including any applicable diligence requirements), and all necessary consents,
approvals, and authorizations under such Third Party Licenses required to be obtained by MacroGenics in order to enter into this
Agreement have been obtained. MacroGenics shall comply in all material respects with its obligations under each Third Party License
identified on Exhibit D, shall not terminate or waive any breach of any such Third Party License in a manner that would undermine
Provention’s ability to perform its obligations or exercise its rights under this Agreement and, except as would not reasonably
be expected to result in the termination, or material limitation, restriction or adverse change, in the rights granted to Provention
by the terms of this Agreement, MacroGenics shall at all times enforce all of its rights under such Third Party Licenses.

 

(g)
 Schedule 9.2(g) lists all licenses, sublicenses and other agreements to which MacroGenics or any of its Affiliates
is a party and pursuant to which any Third Party grants to MacroGenics or any of its Affiliates (i) any license or other right
to Exploit the Compound or the Products, (ii) any covenant not to assert/sue or other immunity from suit under any intellectual
property rights Covering the Compound or the Product, (iii) any ownership right or title, whether actual or contingent, to any
intellectual property rights Covering the Compound or Product, or (iv) an option or right of first refusal relating to any intellectual
property rights Covering the Exploitation of the Compound or Products, in each case, excluding any grant to MacroGenics or any
of its Affiliates with respect to intellectual property rights Covering the DART Platform and not specifically Covering the Compound
or Product (collectively, “Inbound Licenses”). Schedule 9.2(g) also identifies all Inbound Licenses
requiring MacroGenics or any of its Affiliates to license, assign or otherwise grant rights to any Third Party for any additions,
modifications or improvements made by or for MacroGenics or its Affiliates to any MacroGenics Product Patents Covering the Compound
or Product. MacroGenics has delivered or otherwise made available to Provention copies of all Inbound Licenses, and MacroGenics
or its Affiliate, as applicable, is in compliance with (and, to the knowledge of MacroGenics, each other party to such Inbound
Licenses are in compliance with) all material terms and conditions of all Inbound Licenses. Except as set forth on Schedule
9.2(g), neither MacroGenics nor any of its Affiliates is a party to (A) any license, sublicense or other agreement to which
and pursuant to which any Third Party is granted any license or other right to make, have made, use, sell, have sold, offer for
sale, import or otherwise distribute or Exploit the Compound or the Products, (B) any covenant not to assert/sue or other immunity
from suit under or any other rights to, any MacroGenics Product Patents, (C) any ownership right or title, whether actual or contingent,
to any MacroGenics Product Patents, or (D) an option or right of first refusal relating to any MacroGenics Product Patents.

 

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

 

(i)
MacroGenics has materially complied with all Applicable Laws in its Exploitation of the Compound and Product.

 

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(j)
The Transferred Materials have been manufactured in compliance with all Applicable Laws including cGMP and have met all applicable
specifications, except as would not materially adversely affect Provention’s ability to Exploit the Product. Neither MacroGenics
nor any Third Party has received any written notices or correspondence from the FDA or any other Government Authority regarding
the Transferred Materials. 

 

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

 

9.3
Provention Stock Representation and Warranty. Provention represents and warrants to MacroGenics that: The authorized capital
stock of Provention consists of (i) 50,000,000 shares of common stock, par value $0.0001 per share (“Provention Common
Stock”), 10,000,000 of which are issued and outstanding and (ii) 25,000,000 shares of preferred stock, $0.0001 par value,
of which 13,000,000 shares have been designated as Series A Preferred Stock (“Provention Series A Preferred Stock”),
of which 11,381,999 shares of Provention Series A Preferred Stock are issued and outstanding. Provention has reserved 3,869,424
shares of Provention Common Stock for issuance to officers, directors, employees and consultants of Provention pursuant to its
2017 Equity Incentive Plan duly adopted by the board of directors of Provention and approved by the stockholders of Provention,
of which 2,656,435 have been issued to employees and consultants of Provention. Provention has reserved 558,740 shares of Provention
Series A Preferred Stock for issuance pursuant to that certain Warrant, dated as of April 25, 2017, in favor of MDB Capital Group,
LLC. There are no bonds, debentures, notes or other indebtedness having general voting rights (or convertible into securities
having such rights) (“Voting Debt”) of Provention issued and outstanding. Except as set forth above, there
are no options, warrants, calls, subscriptions or other rights, agreements, arrangements or commitments of any kind relating to
the issued or unissued capital stock of Provention, obligating Provention to issue, transfer or sell or cause to be issued, transferred
or sold any shares of capital stock or Voting Debt of, or other equity interest in, Provention or securities convertible into
or exchangeable for such shares or equity interests, or obligating Provention to grant, extend or enter into any such option,
warrant, call, subscription or other right, agreement, arrangement or commitment.

 

9.4
Certain Compliance Matters.

 

(a)
Each Party will materially comply with all Applicable Laws with respect to its obligations under this Agreement. Notwithstanding
anything to the contrary in this Agreement, neither Party shall be required to undertake any activity or obligation under this
Agreement which such Party has reason to believe may violate any Applicable Laws; provided however, that a Party which
so believes shall promptly inform the other Party of such belief.

 

(b)
Neither Party nor its Affiliates will make any payment, either directly or indirectly, of money or other assets, including
the compensation such Party derives from this Agreement (collectively, a “Payment”), to government or political
party officials, officials of International Public Organizations, candidates for public office, or representatives of other businesses
or persons acting on behalf of any of the foregoing (collectively, “Officials”) or other individuals where
such Payment would constitute violation of any Applicable Law, including the FCPA and the UKBA. In addition, regardless of legality,
neither Party nor its Affiliates will make any Payment either directly or indirectly to Officials or other individuals if such
Payment is for the purpose of improperly influencing decisions or actions to secure a business advantage, including with respect
to the subject matter of this Agreement. Each Party shall have necessary procedures in place to prevent bribery and corrupt conduct
by itself and each of its Affiliates and subcontractors. All activities will be conducted in compliance with the FCA and the AKA.

 

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9.5
No Other Representations or Warranties. EXCEPT AS EXPRESSLY SET FORTH IN THIS ARTICLE 9, NEITHER PARTY MAKES ANY REPRESENTATION
OR WARRANTY OF ANY KIND WHATSOEVER, EITHER EXPRESS OR IMPLIED, WRITTEN OR ORAL, IN FACT OR BY OPERATION OF LAW, BY STATUTE OR
OTHERWISE, AND EACH PARTY SPECIFICALLY DISCLAIMS ANY OTHER WARRANTIES, INCLUDING ANY EXPRESS OR IMPLIED WARRANTY OF QUALITY, MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, OR WARRANTY OF NON-INFRINGEMENT OR AS TO THE VALIDITY OF ANY PATENT RIGHTS.

 

ARTICLE
10

TERM AND TERMINATION

 

10.1
Term. This Agreement shall become effective as of the Effective Date and, unless earlier terminated pursuant to this Article
10, shall continue in full force and effect until the date of expiration of all payment obligations under this Agreement (the
“Agreement Term”). 

 

10.2
Unilateral Termination by Provention. Provention shall have the right to terminate this Agreement at any time after the Effective
Date, for any or no reason, as follows: (a) if such termination is effective prior to the First Commercial Sale of a Product anywhere
in the Territory, upon providing ninety (90) days’ prior written notice to MacroGenics; and (b) if such termination is effective
after the First Commercial Sale of a Product anywhere in the Territory, upon providing one hundred eighty (180) days’ prior
written notice to MacroGenics (each, a “Voluntary Termination”). Notwithstanding the foregoing, in the event
that Provention provides notice of termination pursuant to subsections (a) or (b), MacroGenics may, in its sole discretion, reduce
the ninety (90) day or one hundred eighty (180) day notice period, respectively, by written notice to Provention.

 

10.3
Termination for Material Breach. Either Party (the “Terminating Party”) may terminate this Agreement in
its entirety, or on a country-by-country and Product-by-Product basis, in the event the other Party (the “Breaching Party”)
has materially breached this Agreement, and such material breach has not been cured within sixty (60) days after receipt of written
notice of such breach by the Breaching Party from the Terminating Party (the “Cure Period”). The written notice
describing the alleged material breach shall provide sufficient detail to put the Breaching Party on notice of such material breach.
Any termination of this Agreement pursuant to this Section 10.3 shall become effective at the end of the Cure Period, unless the
Breaching Party has cured any such material breach prior to the expiration of such Cure Period; provided that in the event a claim
of material breach is being contested diligently and in good faith by appropriate proceedings hereunder, any termination pursuant
to this Section shall not become effective unless and until such material breach has been established in such proceedings and,
in the event that, following such establishment, a cure may then be accomplished by the payment of money or the taking of certain
actions, such payment or actions are not paid or taken within sixty (60) days of the conclusion of such proceedings. The right
of either Party to terminate this Agreement as provided in this Section 10.3 shall not be affected in any way by such Party’s
waiver of or failure to take action with respect to any previous breach under this Agreement.

 

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10.4
 MacroGenics may terminate this Agreement with respect to the Compound or a Product (or this Agreement in its entirety if
such Compound or Product is the only Compound or Product for which this Agreement is applicable), if Provention directly or indirectly
disputes, or assists any Third Party to dispute, the validity of any granted Patent within the MacroGenics Patents in a litigation
or other court proceeding with respect to such Compound or Product; provided however, MacroGenics acknowledges and agrees
that nothing in this Section 10.4 prevents Provention from taking any of the actions referred to in this Section 10.4.

 

10.5
Termination for Bankruptcy.

 

(a)
Either Party may terminate this Agreement in its entirety upon providing written notice to the other Party on or after the
time that such other Party makes a general assignment for the benefit of creditors, files an insolvency petition in bankruptcy,
petitions for or acquiesces in the appointment of any receiver, trustee or similar officer to liquidate or conserve its business
or any substantial part of its assets, commences under the laws of any jurisdiction any proceeding involving its insolvency, bankruptcy,
reorganization, adjustment of debt, dissolution, liquidation or any other similar proceeding for the release of financially distressed
debtors, or becomes a party to any proceeding or action of the type described above (each, an “Insolvency Event”),
and such proceeding or action remains un-dismissed or un-stayed for a period of more than ninety (90) days.

 

(b)
All rights and licenses granted under or pursuant to this Agreement, including, for the avoidance of doubt, the licenses granted
pursuant to Sections 2.1 and 2.2, are, and shall otherwise be deemed to be, for purposes of Section 365(n) of Title 11 of the
U.S. Code and other similar laws in any jurisdiction outside the U.S. (collectively, the “Bankruptcy Laws”),
licenses of rights to “intellectual property” as defined under the Bankruptcy Laws. If a case is commenced during
the Agreement Term by or against a Party under Bankruptcy Laws then, unless and until this Agreement is rejected as provided pursuant
to such Bankruptcy Laws, such Party (in any capacity, including debtor-in-possession) and its successors and assigns (including
a Title 11 trustee) shall perform all of the obligations in this Agreement intended to be performed by such Party. If a case is
commenced during the Agreement Term by or against a Party under the Bankruptcy Laws, this Agreement is rejected as provided for
under the Bankruptcy Laws, and the non-bankrupt Party elects to retain its rights hereunder as provided for under the Bankruptcy
Laws, then the Party subject to such case under the Bankruptcy Laws (in any capacity, including debtor-in-possession) and its
successors and assigns (including a Title 11 trustee), shall provide to the non-bankrupt Party copies of all Patent Rights and
Information necessary for the non-bankrupt Party to prosecute, maintain and enjoy its rights under the terms of this Agreement.
All rights, powers and remedies of the non-bankrupt Party as provided herein are in addition to and not in substitution for any
and all other rights, powers and remedies now or hereafter existing at law or in equity (including the Bankruptcy Laws) in the
event of the commencement of a case by or against a Party under the Bankruptcy Laws. In particular, it is the intention and understanding
of the Parties to this Agreement that the rights granted to the Parties under this Section 10.5 are essential to the Parties’
respective businesses and the Parties acknowledge that damages are not an adequate remedy.

 

10.6
Effects of Termination. All of the following effects of termination are in addition to the other rights and remedies that
may be available to either of the Parties under this Agreement and shall not be construed to limit any such rights or remedies.
In the event this Agreement is terminated (which, for clarity, will not include an expiration), then:

 

(a)
Without limiting the effect that such termination shall have on any provisions of this Agreement, other than those provisions
that this Agreement expressly provides shall survive such termination, all rights and licenses granted herein to Provention shall
terminate, and Provention shall cease any and all Development, Manufacturing, and Commercialization activities with respect to
the Products as soon as is reasonably practicable under Applicable Law; provided that with respect to any Clinical Study being
conducted by Provention or its Affiliates as of the date the Agreement termination notice is delivered, Provention shall, as directed
by MacroGenics and at Provention’s cost and expense, either (i) wind-down such Clinical Study and, as required for patient
safety or applicable Law, complete such Clinical Study only with respect to those study subjects enrolled at the date of termination
and otherwise cease enrollment and all other activities with respect to such Clinical Study and for the purpose of such wind-down
activities, and at MacroGenics’ option, the termination notice period may be extended by an additional ninety (90) days;
or (ii) cooperate with MacroGenics to facilitate the orderly transfer of the conduct of such Clinical Trial to MacroGenics as
soon as reasonably practicable after the effective date of termination; 

 

    	 	37	 

    	 

    

 

(b)
All payment obligations hereunder shall terminate, other than those that are accrued and unpaid as of the effective date of
such termination or otherwise expressly set forth in this Section 10.6(a);

 

(c)
MacroGenics shall thereafter have all rights and materials previously licensed to Provention hereunder to Develop, Manufacture
and Commercialize the Products at MacroGenics’ discretion; 

 

(d)
Unless this Agreement is terminated by Provention pursuant to Section 10.3 or 10.5, Provention hereby grants to MacroGenics,
effective as of the effective date of such termination, a limited, non-exclusive, transferable, fully paid-up, royalty-free, sublicensable
license in the Field in the Territory, under the Provention Technology created or acquired during the Agreement Term and Provention’s
interest in Joint Inventions and Joint Patents, solely to Exploit the Compound and Products;

 

(e)
Unless this Agreement is terminated by Provention pursuant to Section 10.3 or 10.5, at MacroGenics’ written request,
Provention shall grant to MacroGenics, effective as of the date of such request, a limited, exclusive, transferable royalty bearing
license to use any trademarks owned or Controlled by Provention which are directly related to the Commercialization of Products
in the Territory (excluding any Provention house marks);

 

(f)
Unless this Agreement is terminated by Provention pursuant to Section 10.3 or 10.5, at MacroGenics’ written request,
Provention shall transfer to MacroGenics, or at MacroGenics direction, destroy (and certify such destruction in writing) (i) all
materials, documents and know-how licensed and/or provided to Provention by MacroGenics pursuant to this Agreement and (ii) any
inventory of any Product on hand at the time of such termination or in the process of Manufacturing. Provention shall reimburse
MacroGenics for any costs MacroGenics incurs in connection with any such transfer; 

 

(g)
Unless this Agreement is terminated by Provention pursuant to Section 10.3 or 10.5, at MacroGenics’ written request,
Provention shall transfer to MacroGenics any and all Regulatory Documentation directly related to any Products and, upon MacroGenics’
request, shall make available to MacroGenics any other relevant Information reasonably related to such Regulatory Documentation
and provide a right of reference to applicable Regulatory Documentation to the extent necessary for MacroGenics or its licensees
to Develop and Commercialize Products; and

 

(h)
The step-in rights granted to MacroGenics with respect to Joint Patents under Sections 7.3(d), 7.5(b) and 7.7(b) shall remain
in effect, and MacroGenics shall have to the right to enforce the Provention Patents, solely to the extent a license is granted
under this Section 10.6, against Third Party infringers.

 

    	 	38	 

    	 

    

 

10.7
Remedies. Except as otherwise explicitly set forth in this Agreement, termination or expiration of this Agreement shall not
relieve the Parties of any liability or obligation which accrued hereunder prior to the effective date of such termination or
expiration, nor prejudice either Party’s right to obtain performance of any obligation. Each Party shall be free, pursuant
to Article 11, to seek, without restriction as to the number of times it may seek, damages, costs and remedies that may be available
to it under Applicable Law or in equity and shall be entitled to offset the amount of any damages and costs obtained against the
other Party in a final determination under Section 11.3, against any amounts otherwise due to such other Party under this Agreement.

 

10.8
Survival. In the event of termination or expiration of this Agreement, in addition to the provisions of this Agreement that
continue in effect in accordance with their terms, the following provisions of this Agreement shall survive: 6.1, 6.7 –
6.10 (solely with respect to payment obligations that have accrued at the time of termination), 6.11, 7.1, 7.2, 8, 9.5, 10.6,
10.7, 10.8, 11, 12 and 13 and any other provisions of this Agreement that are necessary to interpret or effectuate the intent
of the foregoing provisions. With respect to an expiration of the Agreement, all licenses granted to Provention hereunder shall
continue in perpetuity.

 

ARTICLE
11

DISPUTE RESOLUTION

 

11.1
Exclusive Dispute Resolution Mechanism. The Parties agree that the procedures set forth in this Article 11 shall be the exclusive
mechanism for resolving any Dispute between the Parties that may arise from time to time that is not resolved through good faith
negotiation between the Parties.

 

11.2
Resolution by Executive Officers. Except as otherwise provided in this Article 11, in the event of any Dispute regarding the
construction or interpretation of this Agreement or the rights, duties or liabilities of either Party hereunder, the Parties shall
first attempt in good faith to resolve such Dispute by negotiation and consultation between themselves. In the event that such
Dispute is not resolved on such basis within fifteen (15) Business Days (unless otherwise agreed by the Parties), either Party
may, by written notice to the other Party, refer the Dispute to the Executive Officers for attempted resolution by good faith
negotiation within thirty (30) Business Days after such notice is received (unless otherwise agreed by the Parties). Each Party
may, in its discretion, seek resolution of any and all Disputes that are not resolved under this Section 11.2 in accordance with
Section 11.3.

 

11.3
Disputes. 

 

(a)
JAMS. Any unresolved Dispute which was subject to Section 11.2 shall be resolved by arbitration administered by JAMS (the
“Administrator”) in accordance with its then-effective International Arbitration Rules (the “Rules”),
except to the extent any such Rule conflicts with the express provisions of this Section 11.3. Capitalized terms used but not
otherwise defined in this Agreement shall have the meanings provided in the Rules. The Arbitration shall be conducted by one neutral
arbitrator selected in accordance with the Rules, provided that such individual shall not be a current or former employee or director,
or a current stockholder, of either Party or any of their respective Affiliates (or any licensee or sublicensee of the rights
granted to such Party under this Agreement). The arbitration and all associated discovery proceedings and communications shall
be conducted in English, and the arbitration shall be held in New York, NY, USA. The Arbitrator shall render the Award within
30 days after the Arbitrator declares the Hearing closed, and the Award shall include a written statement describing the essential
findings and conclusions on which the Award is based, including the calculation of any damages awarded. The Arbitrator will, in
rendering his or her decision, apply the substantive law of the State of New York, excluding its conflicts of laws principles
with the exception of Sections 5-1401 and 5-1402 of New York General Obligations Law. The Award rendered by the Arbitrator may
be appealed by a Party pursuant to the JAMS Optional Arbitration Appeal Produced. Judgment may be entered upon an award by the
Arbitrator in any court of competent jurisdiction. Each Party shall bear its own attorney’s fees, costs, and disbursements
arising out of the arbitration, and shall pay an equal share of the fees and costs of the arbitrator. 

 

    	 	39	 

    	 

    

 

(b)
Court Actions. Nothing contained in this Agreement shall deny either Party the right to seek injunctive or other equitable
relief from a court of competent jurisdiction in the context of a bona fide emergency or prospective irreparable harm,
and such an action may be filed and maintained notwithstanding any ongoing discussions between the Parties or any ongoing arbitration
proceeding. In addition, either Party may bring an action in any court of competent jurisdiction to resolve disputes pertaining
to the validity, construction, scope, enforceability, infringement or other violations of patent rights or other intellectual
property rights, and no such claim shall be subject to arbitration pursuant to Section 11.3(a).

 

11.4
Confidentiality. Any and all activities conducted under this Article 11 shall be deemed Confidential Information of each of
the Parties, and shall be subject to Article 8 above.

 

ARTICLE
12

INDEMNIFICATION

 

12.1
Indemnification by Provention. Provention hereby agrees to defend, indemnify and hold harmless MacroGenics and its Affiliates,
and each of their respective directors, officers, employees, agents and representatives (each, a “MacroGenics Indemnitee”)
from and against any and all claims, suits, actions, demands, liabilities, expenses and/or losses, including reasonable legal
expenses and attorneys’ fees (collectively, the “Losses”), to which any MacroGenics Indemnitee may become
subject as a result of any claim, demand, action or other proceeding by any Third Party (each, a “Claim”),
to the extent such Losses arise directly or indirectly out of: (a) the practice by Provention Group of any license granted to
it under this Agreement; (b) the Exploitation of any Compound or Product by Provention Group; (c) the breach by Provention of
this Agreement; or (d) the negligence, illegal conduct or willful act or omission of Provention Group, or any officer, director,
employee, agent or representative thereof; except, with respect to each of clauses (a) through (d) above, to the extent such Losses
arise directly or indirectly from the negligence, illegal conduct or willful act or omission of any MacroGenics Indemnitee or
the breach by MacroGenics of this Agreement.

 

12.2
Indemnification by MacroGenics. MacroGenics hereby agrees to defend, indemnify and hold harmless Provention and its Affiliates
and each of their respective directors, officers, employees, agents and representatives (each, a “Provention Indemnitee”)
from and against any and all Losses to which any Provention Indemnitee may become subject as a result of any Claim to the extent
such Losses arise directly or indirectly out of: (a) any Claims of misappropriation of any intellectual property rights based
on the practice by the Provention Group of the Provention License to the extent arising out of the circumstances described in
Schedule 12.2; (b) the Exploitation of any Compound or Product by MacroGenics or its Affiliate or its licensee (other than Provention
Group); (c) the breach by MacroGenics of this Agreement; or (d) the negligence, illegal conduct, or willful act or omission of
MacroGenics or its Affiliate or its licensee (other than Provention Group), or any officer, director, employee, agent or representative
thereof; except, with respect to each of clauses (a) through (d) above, to the extent such Losses arise directly or indirectly
from the negligence, illegal conduct or willful act or omission of any Provention Indemnitee or the breach by Provention of this
Agreement.

 

    	 	40	 

    	 

    

 

12.3
Indemnification Procedures.

 

(a)
Notice. Promptly after a MacroGenics Indemnitee or a Provention Indemnitee (each, an “Indemnitee”) receives
notice of a pending or threatened Claim, such Indemnitee shall give written notice of the Claim to the Party from whom the Indemnitee
is entitled to receive indemnification pursuant to Sections 12.1 or 12.2, as applicable (the “Indemnifying Party”).
However, an Indemnitee’s delay in providing or failure to provide such notice shall not relieve the Indemnifying Party of
its indemnification obligations under this Agreement, except to the extent it can demonstrate actual prejudice due to the delay
or lack of notice.

 

(b)
Defense. Upon receipt of notice under this Section 12.3 from the Indemnitee, the Indemnifying Party will have the duty to
either compromise or defend against, at its own expense and by counsel (reasonably satisfactory to Indemnitee), such Claim. The
Indemnifying Party will promptly (and in any event not more than twenty (20) days after receipt of the Indemnitee’s original
notice) notify the Indemnitee in writing that it acknowledges its obligation (which acknowledgment shall not be deemed or construed
as an admission of liability, either under this Article 12 or otherwise) to indemnify the Indemnitee with respect to the Claim
pursuant to this Article 12 and of its intention to compromise or defend such Claim. Once the Indemnifying Party gives such notice
to the Indemnitee, the Indemnifying Party is not liable to the Indemnitee for the fees of other counsel or any other expenses
subsequently incurred by the Indemnitee in connection with such defense, other than the Indemnitee’s reasonable Third Party
expenses related to its investigation and cooperation. As to all Claims as to which the Indemnifying Party has assumed control
under this Section 12.3(b), the Indemnitee shall have the right to employ separate counsel and to participate in the defense of
such Claim (as reasonably directed by the Indemnifying Party) at its own expense.

 

(c)
Cooperation. The Indemnitee will cooperate fully with the Indemnifying Party and its legal representatives in the investigation
and defense of any Claim. The Indemnifying Party shall keep the Indemnitee informed on a reasonable and timely basis as to the
status of such Claim (to the extent the Indemnitee is not participating in the defense of such Claim) and conduct the defense
of such Claim in a prudent manner.

 

(d)
Settlement. If an Indemnifying Party assumes the defense of a Claim, no compromise or settlement of such Claim may be effected
by the Indemnifying Party without the Indemnitee’s written consent (such consent not to be unreasonably withheld, delayed
or conditioned), unless: (i) there is no finding or admission of any violation of law or any violation of the rights of any person
or entity and no effect on any other claims that may be made against the Indemnitee; (ii) the sole relief provided is monetary
damages that are paid in full by the Indemnifying Party; and (iii) the Indemnitee’s rights under this Agreement are not
adversely affected. If the Indemnifying Party fails to assume defense of a Claim within a reasonable time, the Indemnitee may
settle such Claim on such terms as it deems appropriate with the consent of the Indemnifying Party (such consent not to be unreasonably
withheld, delayed or conditioned), and the Indemnifying Party shall be obligated to indemnify the Indemnitee for such settlement
as provided in this Article 12.

 

12.4
Insurance. Provention shall, at its own expense, procure and maintain, during the period commencing on the Effective Date
through the period of Commercialization and for a period of five (5) years thereafter, insurance policies, including product liability
insurance, adequate to cover its obligations hereunder and which are consistent with normal business practices of prudent companies
similarly situated; provided however, that in no event shall such product liability insurance, from and after the commencement
of the first Clinical Study of the Compound or Product by Provention, its Affiliates or sublicensees, be written in amounts less
than Five Million Dollars ($5,000,000) per claim and annual aggregate. All such insurance shall include worldwide coverage. Prior
to the initiation of any Clinical Study, Provention shall secure, and maintain in full force and effect, clinical trial insurance
as required by Applicable Law in those territories where such Clinical Study shall be conducted. Upon request, Provention shall
provide MacroGenics with a certificate of insurance evidencing the coverage required under this Section 12.4. Such insurance shall
not be construed to create a limit of Provention’s liability with respect to its indemnification obligations under this
Article 12. Provention shall provide MacroGenics with prompt written notice of any cancellation, non-renewal or material change
in such insurance that could materially adversely affect the rights of MacroGenics hereunder, and shall provide such notice within
thirty (30) days after any such cancellation, non-renewal or material change.

 

    	 	41	 

    	 

    

 

12.5
Limitation of Liability. EXCEPT TO THE EXTENT INCLUDED IN LOSSES RESULTING FROM A THIRD PARTY CLAIM FOR WHICH ONE PARTY IS
OBLIGATED TO INDEMNIFY THE OTHER PARTY (OR AN INDEMNITEE OF SUCH OTHER PARTY) PURSUANT TO THIS ARTICLE 12 OR ANY BREACH OF ARTICLE
7 (INTELLECTUAL PROPERTY RIGHTS) OR ARTICLE 8 (CONFIDENTIALITY), IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY (OR
THE OTHER PARTY’S AFFILIATES OR SUBLICENSEES) IN CONNECTION WITH THIS AGREEMENT FOR LOST REVENUE, LOST PROFITS, LOST SAVINGS,
LOSS OF USE, DAMAGE TO GOODWILL, OR ANY CONSEQUENTIAL, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR INDIRECT DAMAGES UNDER ANY
THEORY, INCLUDING CONTRACT, NEGLIGENCE, OR STRICT LIABILITY, EVEN IF THAT PARTY HAS BEEN PLACED ON NOTICE OF THE POSSIBILITY OF
SUCH DAMAGES.

 

ARTICLE
13

MISCELLANEOUS

 

13.1
Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have
been duly given on the date delivered, if delivered personally, or on the next Business Day after being sent by reputable overnight
courier (with delivery tracking provided, signature required and delivery prepaid), in each case, to the Parties at the following
addresses, or on the date sent and confirmed by e-mail to the address specified below (or at such other address for a Party as
shall be specified by notice given in accordance with this Section 13.1).

 

(a)
If to Provention:

 

Provention
Bio, Inc.

Email: apalmer@provention.com

Attention: Ashleigh Palmer

 

with
copies to:

 

Lowenstein
Sandler LLP

1251 Avenue of the Americas

17th Floor

New York, NY 10020

E-mail: mlerner@lowenstein.com; hweinstein@lowenstein.com

Attention: Michael Lerner; Herschel Weinstein

 

(b)
If to MacroGenics:

 

MacroGenics,
Inc.

9704 Medical Center Drive

Rockville, MD 20850

Attention: CEO

 

with
copies to:

 

MacroGenics,
Inc.

9704 Medical Center Drive

Rockville, MD 20850

Attention: General Counsel

 

    	 	42	 

    	 

    

 

13.2
Governing Law. This Agreement shall be governed by and construed under the laws of the State of Delaware, without regard to
conflict of law principles. The provisions of the United Nations Convention on Contracts for the International Sale of Goods the
1974 Convention on the Limitation Period in the International Sale of Goods, as amended by that certain Protocol, done at Vienna
on April 11, 1980 shall not apply to the Transaction Agreements or any subject matter hereof or thereof.

 

13.3
Assignment.

 

(a)
Neither Party may assign or transfer this Agreement or any rights or obligations hereunder without the prior written consent
of the other, except that a Party may make such an assignment without the other Party’s consent to an Affiliate or to a
successor to substantially all of the business of such Party to which this Agreement relates, whether in a merger, sale of stock,
sale of assets or other transaction. Any successor or assignee of rights and/or obligations permitted hereunder shall, in writing
to the other Party, expressly assume performance of such rights and/or obligations. Any permitted assignment shall be binding
on the successors of the assigning Party. Any assignment or attempted assignment by either Party in violation of the terms of
this Section 13.3 shall be null, void and of no legal effect. 

 

(b)
Notwithstanding the foregoing, each Party agrees that in the event that a Party (the “Acquired Party”)
is acquired (whether by way of merger, acquisition, sale of all or substantially all of its business or assets to which this Agreement
pertains, or otherwise) (an “Acquisition”) by a Third Party (the “Acquirer”), the non-Acquired
Party shall not obtain any rights or access under this Agreement to any Know-How or Patent Rights Controlled by such Acquirer
which were not already within MacroGenics Technology (if the Acquired Party is MacroGenics) or Provention Technology (if the Acquired
Party is Provention) immediately prior to the consummation of such Acquisition.

 

13.4
Designation of Affiliates. Each Party may discharge any obligation and exercise any right hereunder through delegation of
its obligations or rights to any of its Affiliates. Each Party hereby guarantees the performance by its Affiliates of such Party’s
obligations under this Agreement, and shall cause its Affiliates to comply with the provisions of this Agreement in connection
with such performance. Any breach by a Party’s Affiliate of any of such Party’s obligations under this Agreement shall
be deemed a breach by such Party, and the other Party may proceed directly against such Party without any obligation to first
proceed against such Party’s Affiliate.

 

13.5
Relationship of the Parties. It is expressly agreed that MacroGenics, on the one hand, and Provention, on the other hand,
shall be independent contractors and that the relationship between the two Parties shall not constitute a partnership, joint venture
or agency. Neither MacroGenics nor Provention shall have the authority to make any statements, representations or commitments
of any kind, or to take any action which shall be binding on the other, without the prior written consent of the other Party to
do so. All persons employed by a Party shall be employees of that Party and not of the other Party and all costs and obligations
incurred by reason of such employment shall be for the account and expense of such Party.

 

    	 	43	 

    	 

    

 

13.6
Force Majeure. Both Parties shall be excused from the performance of their obligations under this Agreement to the extent
that such performance is prevented by Force Majeure and the nonperforming Party promptly provides notice of the prevention to
the other Party. Such excuse shall be continued so long as the condition constituting Force Majeure continues and the nonperforming
Party takes reasonable efforts to remove the condition. Notwithstanding the foregoing, a Party shall not be excused from making
payments owed hereunder because of Force Majeure affecting such Party. If Force Majeure persists for more than ninety (90) days,
then the Parties shall discuss in good faith the modification of the Parties’ obligations under this Agreement in order
to mitigate the delays caused by such Force Majeure. In the event a Party is prevented from performing its obligations under this
Agreement due to Force Majeure for more than one hundred eighty (180) days according to this Section 13.6, the other Party shall
have the right to terminate this Agreement written notice. A termination under this Section 13.6 by either Party shall be treated
as a termination under Section 10.3 and the corresponding provisions for termination under Section 10.3 shall apply except to
the extent the affected Party is prevented from performing due to the Force Majeure.

 

13.7
Entire Agreement. This Agreement, including the Exhibits hereto, sets forth the complete, final and exclusive agreement and
all the covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties hereto
with respect to the subject matter hereof and supersedes, as of the Effective Date, all prior and contemporaneous agreements and
understandings between the Parties with respect to the subject matter hereof; provided, that the Prior CDA shall be superseded
and terminated hereby, with all Confidential Information disclosed thereunder being deemed Confidential Information under this
Agreement. There are no covenants, promises, agreements, warranties, representations, conditions or understandings, either oral
or written, between the Parties other than as are set forth herein and therein. No subsequent alteration, amendment, change or
addition to this Agreement shall be binding upon the Parties unless reduced to writing and signed by an authorized officer of
each Party. In the event of any inconsistency between the body of this Agreement and either any Exhibits to this Agreement or
any subsequent agreements ancillary to this Agreement, unless otherwise express stated to the contrary in such Exhibit or ancillary
agreement, the terms contained in this Agreement shall control.

 

13.8
Severability. If any one or more of the provisions of this Agreement is held to be invalid or unenforceable by any court of
competent jurisdiction from which no appeal can be or is taken, the provision shall be considered severed from this Agreement
and shall not serve to invalidate any remaining provisions hereof. The Parties shall make a good faith effort to replace any invalid
or unenforceable provision with a valid and enforceable one such that the objectives contemplated by the Parties when entering
this Agreement may be realized.

 

13.9
English Language. This Agreement shall be written in and executed in, and all other communications under or in connection
with this Agreement, shall be in the English language. Any translation into any other language shall not be an official version
thereof, and in the event of any conflict in interpretation between the English version and such translation, the English version
shall control.

 

13.10
Waiver and Non-Exclusion of Remedies. Any term or condition of this Agreement may be waived at any time by the Party that
is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed
by or on behalf of the Party waiving such term or condition. The waiver by either Party hereto of any right hereunder or of the
failure to perform or of a breach by the other Party shall not be deemed a waiver of any other right hereunder or of any other
breach or failure by such other Party whether of a similar nature or otherwise. The rights and remedies provided herein are cumulative
and do not exclude any other right or remedy provided by Applicable Law or otherwise available except as expressly set forth herein.

 

    	 	44	 

    	 

    

 

13.11
Further Assurance. Each Party shall duly execute and deliver, or cause to be duly executed and delivered, such further instruments
and do and cause to be done such further acts and things, including the filing of such assignments, agreements, documents, and
instruments, as may be necessary or as the other Party may reasonably request in connection with this Agreement or to carry out
more effectively the provisions and purposes hereof.

 

13.12
Headings. The headings of each Article and Section in this Agreement have been inserted for convenience of reference only
and are not intended to limit or expand on the meaning of the language contained in the particular Article or Section.

 

13.13
Construction. Whenever this Agreement refers to a number of days without using a term otherwise defined herein, such number
refers to calendar days. Except where the context otherwise requires, (a) wherever used, the singular shall include the plural,
the plural shall include the singular; (b) the use of any gender shall be applicable to all genders; (c) the terms “including,”
“include,” “includes” or “for example” shall not limit the generality of any description preceding
such term and, as used herein, shall have the same meaning as “including, but not limited to,” and/or “including,
without limitation”; (d) the words “herein”, “hereof” and hereunder”, and words of similar
import, refer to this Agreement in its entirety and not to any particular provision hereof; (e) the word “or” has
the inclusive meaning that is typically associated with the phrase “and/or”; (f) the word “will” means
“shall”; (g) if a period of time is specified and dates from a given day or Business Day, or the day or Business Day
of an act or event, it is to be calculated exclusive of that day or Business Day; (h) “Dollar”, “USD”
or “$” means U.S. dollars; (i) a capitalized term not defined herein but reflecting a different part of speech than
a capitalized term which is defined herein shall be interpreted in a correlative manner; and (j) any definition of or reference
to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document
as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements
or modifications set forth herein). The language of this Agreement shall be deemed to be the language mutually chosen by the Parties
and no rule of strict construction shall be applied against either Party. Each Party represents that it has been represented by
legal counsel in connection with this Agreement and acknowledges that it has participated in the drafting hereof.

 

13.14
Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument. This Agreement may be executed by .pdf or other electronically
transmitted signatures and such signatures shall be deemed to bind each Party hereto as if they were the original signatures.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	45	 

    	 

    

 

IN
WITNESS WHEREOF, the Parties have signed this Agreement as of the date(s) set forth below.

 

	Provention
    Bio, Inc. 	 
	 	 	 
	By:	/s/
    Ashleigh Palmer	 
	Name:	Ashleigh
    Palmer	 
	Title:
    	Chief
    Executive Officer	 
	Date:	May
    7, 2018	 
	 	 	 
	MacroGenics,
    Inc.	 
	 	 	 
	By:	/s/
    Scott Koenig	 
	Name:	Scott
    Koenig	 
	Title:
    	Chief
    Executive Officer	 
	Date:	May
    7, 2018	 

 

    	 	1	 

    	 

    

 

Schedule
9.2(g)

 
 

1. The license elected by MacroGenics for
[****] on [****] under the Non-Exclusive License Agreement between EMD Millipore Corporation and MacroGenics, Inc. effective
[****] as amended and restated [****].

 

 2.
 [****]

 

    	 	2	 

    	 

    

 

Schedule
12.2(b)

 

[****]

 

    	 	3	 

    	 

    

 

EXHIBIT
A

 

Compound

 

MGD010

 

Secretion
Signal Sequences are double underlined in lowercase letters.

 

Chain1
[****]

 

Chain2
[****]

 

Chain3
[****]

 

    	 	4	 

    	 

    

 

EXHIBIT
B

 

MACROGENICS
PATENTS - MGD010

 

	Country	 	Application
    No.	 	Publication
    No.	 	Patent
    No.
	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]

 

    	 	5	 

    	 

    

 

	Country	 	Application
    No.	 	Publication
    No.	 	Patent
    No.
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]

 

    	 	6	 

    	 

    

 

	Country	 	Application
    No.	 	Publication
    No.	 	Patent
    No.
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]

 

    	 	7	 

    	 

    

 

	Country	 	Application
    No.	 	Publication
    No.	 	Patent
    No.
	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]

 

    	 	8	 

    	 

    

 

	Country	 	Application
    No.	 	Publication
    No.	 	Patent
    No.
	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]

 

    	 	9	 

    	 

    

 

	Country	 	Application
    No.	 	Publication
    No.	 	Patent
    No.
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]

 

    	 	10	 

    	 

    

 

	Country	 	Application
    No.	 	Publication
    No.	 	Patent
    No.
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]
	[****]	 	[****]	 	[****]	 	[****]

 

    	 	11	 

    	 

    

 

EXHIBIT
C

 

Development
Plan

 

[****]

 

    	 	12	 

    	 

    

 

EXHIBIT
D

 

Third
Party Licenses

 

[****]

 

    	 	13	 

    	 

    

 

EXHIBIT
E

 

Transferred
Documentation and Biological and Chemical Materials and Reagents

 

The
items on this list are anticipated to be either transferred or otherwise made available by MacroGenics as soon as practicable
using Commercially Reasonable Efforts during the Transition Period. Items that are not transferred during the Transition Period
shall be transferred by MacroGenics during the remainder of the eighteen (18) months after the Effective Date using Commercially
Reasonable Efforts to the extent available and feasible. Electronic documentation shall be transferred in formats to be mutually
agreed upon by both Parties. Type of access for biological and chemical materials and reagents will be mutually agreed upon by
the Parties during the Transition Period.

 

Documentation

 

■
[****]

 

    	 	 	 

    	 

    

 

EXHIBIT
F

 

PRESS
RELEASE

 

    	 	 	 

    	 

    

 

ExHIBIT
G

 

WARRANT

 

Warrant
Number ____

 

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

 

Warrant
to Purchase

 

Shares
of

 

Common
Stock

 

As
Herein Described

 

May
__, 2018

 

    	 	 	 

    	 

    

 

WARRANT
TO PURCHASE COMMON STOCK OF

 

PROVENTION
BIO, INC.

 

This
is to certify that, for value received, MacroGenics, Inc., or a proper assignee (the “Holder”), is entitled to purchase
up to 270,299 shares (“Warrant Shares”) of common stock, $0.0001 par value per share (the “Common Stock”),
of Provention Bio, Inc., a Delaware corporation (the “Company”), subject to the provisions of this Warrant. This Warrant
shall be exercisable at Two Dollars and Fifty Cents ($2.50) per share (the “Exercise Price”). This Warrant also is
subject to the following terms and conditions:

 

1.
Exercise and Payment;
Exchange.

 

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

 

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

 

	X	=	Y
    (A – B)
	A

 

Where:

 

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

 

    	 	 	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	 	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	 	 

    	 

    

 

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

 

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

 

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

 

    	 	 	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	 	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

[Signature
page follows.]

 

    	 	 	 

    	 

    

 

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

 

	 	PROVENTION
    BIO, INC.
	 	 	               
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	 	 

    	 

    

 

eXHIBIT
h

 

lOCK-UP
aGREEMENT

 

Provention
Bio, Inc.

Lock-Up
AGREEMENT

 

May
__, 2018

 

MDB
Capital Group, Inc.

2425
Cedar Springs Road

Dallas,
Texas 75201

 

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

 

Ladies
and Gentlemen:

 

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

 

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

 

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

 

    	 	 	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	 	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	 	 

    	 

    

 

	Very
    truly yours,	 	 
	 	 	 
	 	 	        
	 	 	Exact
    Name of Shareholder
	      	 	 
	 	 	 
	 	 	Authorized
    Signature
	 	 	 
	 	 	 
	 	 	Title

 

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

 

ASSET
PURCHASE AGREEMENT

 

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

 

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

 

and

 

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

 

RECITALS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	1

    	 

    

 

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

 

    	2

    	 

    

 

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

 

    	3

    	 

    

 

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

 

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

 

	 	 	Notwithstanding
    the foregoing, any combination of features or disclosures shall not be deemed to fall within the foregoing exclusions merely
    because individual features are published or available to the general public or in the rightful possession of the Receiving
    Party unless the combination itself and principle of operation are published or available to the general public or in the
    rightful possession of the Receiving Party. Confidential Information to the extent solely and specifically related to the
    Purchased Assets and/or the Product shall be deemed to be the Confidential Information of the Buyer, notwithstanding the fact
    that it was initially disclosed to the Buyer by the Seller.
	 	 	 
	 	“Consents
    and Waivers”:	means
    the Eli Lilly Consent, Intrexon Waiver, Lonza Novation and Consent and Tolerance Comfort Letter.
	 	 	 
	 	“Control”
    or “Controlled”: 	means,
    the possession by a Party of the ability to assign, transfer or license rights or assets as contemplated by this Agreement
    with respect to (i) the Purchased Assets; and (ii) other intellectual property and assets of any kind, unless, with respect
    to intellectual property and/or assets other than the Purchased Assets, such assignment transfer or license of rights or assets
    would violate the terms of any agreement or other arrangement with any Third Party existing at the time such Party would be
    first required to assign, transfer or license such rights or assets; provided however that if such agreement or other arrangement
    with any Third Party later terminates, or would no longer be violated, then such intellectual property or other assets shall
    be deemed Controlled by such Party. 

 

    	4

    	 

    

 

	 	“Core
    Representation”:	has
    the meaning set forth in Section 9.1(ii).
	 	 	 
	 	“Damages”:
    	means
    any loss, damage, injury, liability, settlement, judgment, obligation, award, fine, penalty, tax, fee (including any reasonable
    legal fee, accounting fee, expert fee or advisory fee), charge, cost (including any reasonable cost of investigation) or expense.
	 	 	 
	 	“Data”:	means
    any and all research data, technical data, test and development data, pre-clinical and clinical data, formulations, processes,
    protocols, regulatory files and the like which are developed by Seller, its Affiliates, licensees and/or Third Party providers
    of services, in each case including their respective predecessors in interest, and Controlled by Seller, prior to the Closing
    Date or generated in the performance of the Technology Transition Plan. 
	 	 	 
	 	“Data Room”:	means
    that certain electronic data room populated by the Seller on ShareVault.com relating to the Product and the Purchased Assets.
	 	 	 
	 	“Development”
    or “Develop”:	means
    to discover, research or otherwise develop a product, including conducting any pre-clinical, non-clinical or clinical research
    and any drug development activity, including discovery, research, toxicology, pharmacology and other similar activities, test
    method development and stability testing, manufacturing process development, formulation development, delivery system development,
    quality assurance and quality control development, statistical analysis, clinical studies (including pre- and post-approval
    studies), diagnostic assays in connection with clinical studies, and all activities directed to obtaining any Regulatory Approval,
    including any marketing, pricing or reimbursement approval. For the sake of clarity, Development shall not include any activities
    related to Commercialization. 
	 	 	 
	 	“Development
    and Regulatory Milestone”:	has
    the meaning set forth in Section 3.2.
	 	 	 
	 	“Development
    Plan”:	means
    plans for the Development of the Product as outlined in Exhibit 4 and as may be modified by the Buyer from time to time during
    the Term.

 

    	5

    	 

    

 

	 	“Device”:	means
    any medical device, instrument, apparatus, implant, or similar or related device that is used to diagnose, prevent and/or
    treat a disease or other condition, such as a drug delivery system (including a single use disposable injection device), that
    is distributed, marketed and/or sold by Buyer, its Affiliates and/or Licensees to Third Parties, including hospitals, clinics,
    medical practitioners, pharmacists, and patients, either in the secondary packaging of the Product or separately, the use
    of which is related to the use of the Product.
	 	 	 
	 	“Diagnostic
    Tool”:	means
    any companion and/or diagnostic assay developed and used to (i) identify patients who are most likely to benefit from a Product,
    (ii) identify patients likely to be at increased risk for serious adverse reactions as a result of treatment with a Product,
    and/or (iii) monitor a patient’s response to a Product for the purpose of adjusting treatment (e.g., schedule,
    dose, discontinuation) to achieve improved safety or effectiveness.
	 	 	 
	 	“Disclosing
    Party”:	shall
    have the meaning provided in the definition of “Confidential Information.”
	 	 	 
	 	“Disclosure
    Schedules”: 	means
    the Disclosure Schedules set forth in Exhibit 5.
	 	 	 
	 	“Earn-Out
    Term”:	means,
    on a Product-by-Product, and country-by-country basis, the period commencing upon the First Commercial Sale of such Product
    in such country and expiring upon the later of: (i) the last-to-expire Valid Claim in a Product Patent in a given country,
    or (ii) [****] years after the date of First Commercial Sale of such Product in such country.
	 	 	 
	 	“Eli
    Lilly Agreement”:	means
    the “[****] Agreement” entered into by and between Seller and Eli Lilly, effective as of October 16, 2007,
    as subsequently amended on June 8, 2010 and May 11, 2011, which has been terminated prior to the Closing Date. 
	 	 	 
	 	“Eli
    Lilly Consent”:	means
    that certain Consent Agreement, between Eli Lilly & Company and Seller, dated as of April 30, 2018. 
	 	 	 
	 	“Encumbrance”:
    	means
    any lien, pledge, charge, mortgage, security interest, lease, license, option, right of first refusal, preemptive right, put,
    call or other restriction on transfer (other than express provisions of Assumed Contracts), defect or imperfection of title,
    assessment, deed of trust, levy, or other encumbrance of any kind, or any conditional sale or title retention agreement or
    other agreement to give any of the foregoing in the future.

 

    	6

    	 

    

 

	 	“Excluded
    Taxes”:	means
    (i) all Taxes of or relating to Seller, or for which Seller is liable, for any taxable period, including (A) all Taxes of
    any member of an affiliated group of which Seller (or any predecessor) is or was a member on a prior to the Closing Date,
    including pursuant to Treasury Regulation Section 1.1502-6 or any analogous or similar state, local or foreign law; (B) any
    and all Taxes of any person imposed on Buyer as a transferee or successor, by contract or pursuant to any Applicable Law,
    which Taxes relate to an event or transaction occurring before the Closing Date, and (C) payments under any Tax allocation,
    sharing or similar agreement (whether oral or written); (ii) all Taxes relating to the “Retained Rights” described
    in Section 2.3 or Retained Liabilities for any taxable period; (iii) all Taxes attributable to ownership or use of any Purchased
    Assets or the Assumed Liabilities for any taxable period ending on or prior to the Closing Date and, with respect to any taxable
    period beginning before and ending after the Closing Date, for the portion of such taxable period ending on the Closing Date;
    and (iv) Seller’s portion of transfer taxes (as provided in Section 3.9).
	 	 	 
	 	“Exhibit”:	means
    any or all of the exhibits attached to this Agreement.
	 	 	 
	 	“FFDCA”:	means
    the Federal Food, Drug, and Cosmetic Act.
	 	 	 
	 	“First
    Commercial Sale”:	means,
    with respect to a Product in a given country, the first commercial sale or disposition for value of such Product to a Third
    Party (other than a Related Party) for end use or consumption of such Product in such country, excluding, however, transfers
    or dispositions of without consideration: (i) in connection with patient assistance programs; (ii) for charitable or promotional
    purposes; (iii) for preclinical, clinical, regulatory or governmental purposes or under so-called “named patient”,
    “compassionate use” or other limited access programs; or (iv) for use in any tests or studies reasonably necessary
    to comply with Applicable Laws, regulation or request by a Governmental Authority. For clarity, First Commercial Sale shall
    be determined on a country-by-country basis.
	 	 	 
	 	“First
    Indication”:	means
    a first indication for which a Product receives approval. 
	 	 	 
	 	“FTE”:	means
    a full time equivalent person by year consisting of [****] days per year of work, corresponding to [****] hours per year of
    work. 
	 	 	 
	 	“FTE
    Rate”:	means
    [****] United States Dollars (US$[****]) per FTE.
	 	 	 
	 	“Fundamental
    Representation”:	has
    the meaning set forth in Section 9.1(i).
	 	 	 
	 	“Generic
    Competition”:	means,
    with respect to a Product in any country in a given calendar quarter, that, during such calendar quarter, (i) one or more
    Generic Products are commercially available in such country, and (ii) aggregate Net Sales of such Product in such country
    in such calendar quarter equal less than [****] percent ([****]%) of the average aggregate Net Sales of the Product over the
    four (4) calendar quarters immediately prior to the calendar quarter in which one or more Generic Products first became commercially
    available in such country.

 

    	7

    	 

    

 

	 	“Generic
    Product”:	for
    a given country means a pharmaceutical product that (i) is sold by a Person that is not a Related Party under a Regulatory
    Approval granted by a Government Authority to a Third Party, (ii) contains the same active ingredient(s) as are contained
    in a Product, and (iii) is approved by the Government Authority pursuant to an abbreviated approval process that relies in
    part on such Government Authority’s previous grant of marketing authorization to a Product.
	 	 	 
	 	“Governmental
    Authority”: 	means
    any court, tribunal, arbitrator, authority, agency, commission, official or other instrumentality of the United States of
    America or other country, including without limitation any regulatory authority involved in granting approval to initiate
    or conduct clinical testing in humans, for regulatory approval to market a pharmaceutical/biologic product and/or, to the
    extent required in such country or jurisdiction, for pricing or reimbursement approval for a pharmaceutical product in such
    country or jurisdiction, including (i) the Food and Drug Administration of the United States of America (“FDA”),
    (ii) the European Medicines Agency of the European Union (“EMA”), and (iii) the European Commission. 
	 	 	 
	 	“Inbound
    Licenses”: 	has
    the meaning set forth in Section 5.7(v).
	 	 	 
	 	“Indemnitee”:
    	has
    the meaning set forth in Section 9.4.
	 	 	 
	 	“Indemnitor”:
    	has
    the meaning set forth in Section 9.4.
	 	 	 
	 	“INDs
    and CTAs”:	means
    any and all investigational new drug applications and clinical trial applications with respect to the Product as listed in
    Exhibit 8. 
	 	 	 
	 	“Intrexon
    Agreement”:	means
    that certain [****] Agreement between Seller, Intrexon T1D Partners LLC (“ITID”) and Intexon Corporation (“Intrexon”),
    dated December 20, 2017. 
	 	 	 
	 	“Intrexon
    Payment”:	means
    any payment due pursuant to Section 7.1.1(b) of the Intrexon Agreement. 
	 	 	 
	 	“Intrexon
    Supply”:	means
    supply of [****] (as defined under the Intrexon Agreement) under Section 2.5 of the Intrexon Agreement.
	 	 	 
	 	“Intrexon
    Waiver”:	means
    that certain Waiver Agreement, between Intrexon, Buyer and Seller, dated as of May 7, 2018.
	 	 	 
	 	“Invitrogen”	means
    Invitrogen Corporation.
	 	 	 
	 	“JDRF
    Agreement”	means
    that certain Research Agreement, effective as of December 19, 2006 between the Juvenile Diabetes Research Foundation
    International and Seller. 

 

    	8

    	 

    

 

	 	“Know-How”:	means
    technical and other information, including trade secrets and information comprising or relating to concepts, discoveries,
    designs, formulae, ideas, inventions, methods, models, assays, research plans, procedures, designs for experiments and tests
    and results of experimentation and testing (including results of Development), formulations, processes (including manufacturing
    processes, specifications and techniques), and any such information contained in the Data, including documents containing
    any of the above.
	 	 	 
	 	“Knowledge”:
    	with
    respect to Seller, means the actual knowledge of the vice-president level or higher executive officers (or persons performing
    similar functions) of Seller after reasonable inquiry. 
	 	 	 
	 	“Licensee”:	means
    a Third Party licensee that has entered into a license agreement with Buyer for the Product.
	 	 	 
	 	“Listed
    Patents”:	has
    the meaning set forth in Section 5.7(ii).
	 	 	 
	 	“Lock-Up
    Agreement”	means
    that certain Lock-Up Agreement, substantially in the form attached hereto as Exhibit 12.
	 	 	 
	 	“Lonza
    Novation and Consent”:	means
    that certain Novation Agreement, between Lonza Sales AG, Buyer and Seller, dated as of May 4, 2018.
	 	 	 
	 	“Major
    European Country”:	means
    France, Germany, Italy, Spain or the United Kingdom.
	 	 	 
	 	“[****]”	means
    any payments due to be [****] under the Tolerance [****] or any other agreement entered into by Seller or any of its predecessors
    in interest prior the Closing Date.
	 	 	 
	 	“Net
    Sales”: 	means
    the gross amount billed or invoiced for a Product by (a) by Buyer; (b) by any Buyer’s assignee (including such assignee’s
    affiliates or licensees), (c) by Buyer’s Affiliates, or (d) by Licensees (each of the Persons referred to in (b), (c)
    and (d), a “Related Party”), in each case, for the sale of a Product to Third Parties (excluding a sale
    of a Product to Affiliates or licensees for resale), subject to the following deductions, as allocable to such Product (if
    not previously deducted in calculating the amount invoiced and to the extent included in the gross invoice price):

 

    	9

    	 

    

 

	 	(i)	reasonable
    trade, quantity, prompt settlement and other cash discounts and rebates (including wholesale inventory management fees and
    fees or allowances to other distributors, buying groups, health care insurance carriers or other pharmacy benefit managers
    (or equivalents thereof), federal, state/provincial, local or other Governmental Authority or other institution, or their
    agencies or purchasers, reimbursers, or trade customers), chargebacks, and price reductions or allowances actually allowed
    or granted from the billed amount, and discounts to customers, including cash coupons, vouchers and loyalty cards (and their
    redemption) and co-pay assistance;
	 	 	 
	 	(ii)	credits
    or allowances actually granted upon claims, rejections or returns of such sales of Products, including recalls;
	 	 	 
	 	(iii)	taxes
    imposed on the production, sale, delivery, import, export, distribution or use of the Product (including sales, use, excise
    or value added taxes, but excluding income taxes), duties or other governmental charges levied on or measured by the billing
    amount when included in billing, as adjusted for tax refunds and tax rebates; 
	 	 	 
	 	(iv)	any
    discounts, rebates or similar payments in respect of sales paid for by any Governmental Authority, including Federal or state
    Medicaid, Medicare or similar state program, or any other similar program, or any other government imposed rebates or discounts
    from invoiced prices (to the extent not covered under clause (i) above); and
	 	 	 
	 	(v)	transport,
    freight, postage and insurance costs relating to the transportation or delivery of Products.

 

	 	Such
                                         amounts shall be determined from the books and records of Buyer or its Related Party,
                                         maintained in accordance with Accounting Standards with regard to Buyer, and, with respect
                                         to a related Party, in accordance with the accounting standards applicable to such a
                                         Related Party.

        

	 	 
	 	Net
                                         Sales shall exclude transfers or dispositions of Product, without consideration: (1)
                                         in connection with patient assistance programs; (2) for charitable or promotional purposes;
                                         (3) for preclinical, clinical, regulatory or governmental purposes or under so-called
                                         “named patient”, “compassionate use” or other limited access
                                         programs; or (4) for use in any tests or studies reasonably necessary to comply with
                                         applicable Law, regulation or request by a Governmental Authority.

        

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

        

 

    	10

    	 

    

 

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

        

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

        

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

        

	 	 

 

	 	“Outbound
    Licenses”: 	has
    the meaning set forth in Section 5.7(iv).
	 	 	 
	 	“Party”:	means
    either Buyer or Seller, as the context requires, and, when used in plural, shall mean Buyer and Seller. 

 

    	11

    	 

    

 

	 	“Patents”:	means
    (i) all issued patents (extensions, restorations by existing or future extension or registration mechanism, including patent
    term adjustments, patent term extension, supplemental protection certificates or the equivalent thereof, substitutions, confirmations,
    re-registrations, re-examinations, reissues and patents of addition), (ii) patent applications (including all provisional
    and non-provisional applications, substitutions, requests for continuation, continuations, continuations-in-part, divisionals
    and renewals), (iii) inventor’s certificates, (iv) design registrations, design registration applications, industrial
    designs, industrial design applications and industrial design registrations, (v) any and all divisions, continuations, continuations
    in part, extensions, substitutions, renewals, registrations, revalidations, reversions, reexaminations, reissues or additions,
    of or to any of the foregoing items, (vi) all equivalents of the foregoing in any country of the world, and (vii) all rights
    and priorities afforded under any Applicable Law with respect to each of the foregoing items.
	 		 
	 	“Patent
    Assignment  Agreement”:	means
    the “Patent Assignment Agreement” between Seller and Buyer to be executed on or prior to the Closing, in
    the form attached as Exhibit 7.
	 	 	 
	 	“Permitted
    Encumbrance”:	means
    all (i) mechanics’, carriers’, workmen’s, repairmen’s or warehousemen’s Encumbrances arising
    under Applicable Law and incurred in the ordinary course of Seller’s business and Encumbrances for taxes and other governmental
    charges which are not yet due and payable; and (ii) other imperfections of title or encumbrances, if any, which have no more
    than de minimis impact on the continued use and operation or value of the assets to which they relate.
	 	 	 
	 	“Person”:
    	means
    any natural person, corporation, general partnership, limited partnership, limited liability company, proprietorship, other
    business organization, trust, union, association or Governmental Authority.
	 	 	 
	 	“Phase
    III Clinical Trial”:	means
    with regard to the United States of America a clinical trial consistent with the United States Code of Federal Regulations,
    Title 21, Section 312.21 (c) “Phase 3”, and means with regard to other countries a pivotal multi-center
    human clinical trial in a large number of patients to establish safety and efficacy in the particular claim and indication
    tested and required to obtain a Regulatory Approval.
	 	 	 
	 	“Prior
    Confidentiality Agreement”:	means
    that certain Mutual Confidentiality Agreement entered into by and between Buyer and Seller, effective as of August 8, 2017.
    
	 	 	 
	 	“Product”:
    	means
    a product which contains Teplizumab, whether or not as the sole API (i.e., including any Combination Product), in any dosage
    form, formulation (including lyophilizate or solution) and mode of administration and for all indications. For the sake of
    clarity, the term “Product” shall not be deemed to include any Device or Diagnostic Tool for purposes of determining
    if a First Commercial Sale has been made or for calculating Net Sales.

 

    	12

    	 

    

 

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

 

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

 

    	13

    	 

    

 

	 	“Qualified
    Consideration”:	means
    any consideration that Buyer or any of its Affiliates receive in connection with the (and, in a transaction in which rights
    to multiple products are transferred, to the extent allocable to a) grant of rights under the Product Intellectual Property
    and/or rights with respect Products in an agreement or arrangement with a Third Party (“Qualified Consideration Agreement”).
    In furtherance and not in limitation of the foregoing, Qualified Consideration shall not include (i) royalties based on Net
    Sales, (ii) amounts received to cover future reasonable, fully-burdened costs incurred or to be incurred by Buyer or its Affiliates
    in the performance of research, development or manufacturing activities to be performed by Buyer or its Affiliates after the
    Effective Date, (iii) amounts received as reimbursement for out-of-pocket costs incurred by Buyer in the preparation, filing,
    prosecution and maintenance of the Product Patents, or (iv) consideration for the issuance of equity interests in Buyer or
    its Affiliates to the extent there is no premium included in such issuance for rights granted with respect to the Product.
    If Buyer or its Affiliate receives non-cash consideration that otherwise qualifies as Qualified Consideration, the Qualified
    Consideration will be calculated based on the fair market value of such consideration, at the time of the transaction, assuming
    an arm’s length transaction made in the ordinary course of business. 
	 		 
	 	“Reasonable
    Commercial Efforts”:	means
    those efforts and resources to Develop a Product and Commercialize a Product that are consistent with the usual practice of
    Buyer in pursuing the development or commercialization of other compounds and pharmaceutical products in its portfolio that
    are at a similar development stage as the Product or are of a similar market potential as the Product, taking into account
    all relevant factors, including present and future market potential, and Buyer’s own pharmaceutical products that are
    of similar market potential, financial return, medical and clinical considerations, present and future regulatory environment
    and competitive market conditions, all as measured by the facts and circumstances at the time such efforts are due.
	 	 	 
	 	“Receiving
    Party”:	has
    the meaning provided in the definition of “Confidential Information.”
	 	 	 
	 	“Regulatory
    Approval	means
    approval by a Governmental Authority of (i) a New Drug Approval Application or Biologics License Application (each, as defined
    in the FFDCA) in the U.S., or (ii) any corresponding application for regulatory approval in any country or jurisdiction outside
    the U.S., including, with respect to the European Union, a Marketing Authorization Application filed with the EMA pursuant
    to the Centralised Approval Procedure or with the applicable Regulatory Authority of a country in Europe with respect to the
    decentralised procedure, mutual recognition or any national approval procedure.
	 	 	 
	 	“Related
    Party”:	has
    the meaning provided in the definition of “Net Sales” in this Section 1.1.

 

    	14

    	 

    

 

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

 

    	15

    	 

    

 

	 	“Teplizumab”:	means
    the compound “Teplizumab”, designated by Seller as MGA031, a novel cluster of differentiation 3 (“CD3”)
    partial agonist, as described in Exhibit 1.
	 	 	 
	 	“Third
    Party”:	means
    any Person other than (i) Buyer or Seller, or (ii) an Affiliate of Buyer or Seller.
	 	 	 
	 	“Third
    Party Claims”: 	has
    the meaning set forth in Section 9.2.
	 		 
	 	“Third
    Party  Obligations”	means
    (i) the Tolerance [****] Consideration; (ii) the Eli Lilly Royalty; and (iii) all royalties, milestones other consideration
    due to Third Parties in connection with sales of a Product or the assignment or other transfer of rights in connection with
    a Product or the Purchased Assets under agreements entered into by Seller or its predecessors in interest prior to the Closing
    Date.
	 	 	 
	 	“Tolerance
    [****]”:	means
    the [****] entered into by and between Tolerance Therapeutics, Inc., an Illinois corporation having its principal place of
    business at 5490 South Shore Drive, Suite 3N, Chicago, Illinois 60615, USA, and Seller, effective as of June 15, 2005 and
    amended May 21, 2015. 
	 	 	 
	 	“Tolerance
    [****] Consideration”:	means
    obligations to provide consideration to Tolerance under the Tolerance [****], including such obligations under 2.5(c) of the
    Tolerance [****]; provided that this definition shall not include any [****].
	 	 	 
	 	“Tolerance
    Comfort Letter”:	means
    that certain letter agreement between Buyer, Seller and Tolerance Therapeutics, Inc., dated May 7, 2018.
	 	 	 
	 	“Transaction
    Documents”: 	means
    the Warrant, Bill of Sale and General Assignment Agreement, Patent Assignment Agreement and Lock-Up Agreement. 
	 	 	 
	 	“Transfer
    Letter”: 	means
    the transfer letter to be submitted to each relevant Governmental Authority by Seller, in the form attached as Exhibit 9.
	 		 
	 	“Transferable
    Books and Records”:	means
    all of the original (or if unavailable a copy) documents, Data, lists, files, records, research, studies, information and
    correspondence with Governmental Authorities, in whatever form kept, including electronic form, Controlled by Seller as of
    the Closing Date and relating solely and exclusively to the Assumed Contracts, the Product Intellectual Property or the Product,
    including all INDs and CTAs (including all amendments) and any other regulatory documentation to the extent solely and exclusively
    related to the Product, all clinical study reports, all data sets (SAS, ADaM, SDTM, etc.), copies of all Trial Master Files,
    all Financial Disclosure forms, the pharmacovigilance database and other similar books and records. Drafts, internal update
    reports, summaries of Data compiled for internal reporting, non-official communications and documents incidental to the Development
    and Commercialization of the Product conducted by Seller and which do not contain material Data or Product Know-How not otherwise
    subject to transfer to Buyer hereunder or under any Transaction Document are not deemed to be Transferrable Books and Records.

 

    	16

    	 

    

 

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

 

	1.2	For
    purposes of this Agreement (i) words in the singular shall be held to include the plural and vice versa as the context requires,
    (ii) the words “including” and “include” shall mean “including, without limitation”, unless
    otherwise specified; (iii) the terms “hereof”, “herein”, “herewith”, and “hereunder”,
    and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to
    any particular provision of this Agreement; (iv) all references to “Article” or “Section”, unless
    otherwise specified, are intended to refer to an Article or a Section of this Agreement; and (v) all references to “Exhibit”
    or “Schedule”, unless otherwise specified, are intended to refer to an Exhibit or Schedule of this Agreement.
	 	 
	2.
    	PURCHASE
    AND SALE OF ASSETS
	 	 
	2.1	Purchase
    and Sale of the Purchased Assets. Subject to the terms and conditions of this Agreement, on the Closing Date, Seller shall,
    or shall cause its relevant Affiliates to, sell, transfer, convey, assign and deliver to Buyer, free and clear from all Encumbrances
    (other than Permitted Encumbrances), and Buyer shall purchase, acquire and accept from Seller, and such Affiliates of Seller,
    all right, title and interest of Seller and such Affiliates in and to the Purchased Assets. 

 

    	17

    	 

    

 

	2.2	Assumption
    of Liabilities. On the Closing Date, Buyer shall assume and thereafter pay, perform and discharge when due, all Assumed
    Liabilities. 
	 	 
	2.3	Retained
    Rights. Notwithstanding anything to the contrary contained in this Agreement, from and after the Closing Date, other than
    the Purchased Assets and the license to Related Technology provided hereby, Seller shall retain all of its right, title and
    interest in and to all of its assets, including:

 

	 	(i)	all
    cash and cash equivalents of Seller and its Affiliates;
	 	 	 
	 	(ii)	all
    Accounts Receivable of Seller and its Affiliates;
	 	 	 
	 	(iii)	all
    Related Technology;
	 	 	 
	 	(iv)	all
    the trademarks and service marks, the corporate logos and trade names of Seller and its Affiliates, together with any variations
    and derivatives thereof and any other logos, symbols or trademarks, trade names or service marks of Seller and its Affiliates;
	 	 	 
	 	(v)	any
    refund or credit of taxes attributable to any tax period prior to the Closing Date; 
	 	 	 
	 	(vi)	all
    books and records other than the Transferrable Books and Records; 
	 	 	 
	 	(vii)	all
    tangible property owned by Seller and its Affiliates, other than such tangible property included in the Purchased Assets;
    and
	 	 	 
	 	(viii)	except
    as expressly included in the Purchased Assets, all other properties, assets, goodwill and rights of Seller and its Affiliates
    of whatever kind and nature, real, personal, mixed, tangible or intangible.

 

	2.4	Retained
    Liabilities. Notwithstanding anything to the contrary contained in this Agreement, from and after the Closing Date, Buyer
    shall not assume any Retained Liability, each of which, as between the Parties, shall remain the sole and exclusive responsibility
    of Seller, irrespective of whether claims for such liabilities are brought on, before or after the Closing Date, and which
    Seller shall pay, perform and discharge when due.
	 	 
	2.5	Retention
    of Copies of Certain Assets. Notwithstanding anything to the contrary contained in this Agreement, Seller may retain,
    at its expense, and be able to use the information in, copies of any or all of the documentation that Seller or any of Seller’s
    Affiliates deliver to Buyer hereunder or that otherwise constitute Purchased Assets solely (i) for archival purposes, (ii)
    to fulfill or otherwise dispose of any of Seller’s rights or obligations under this Agreement, (iii) to comply with
    or fulfill its obligations under Applicable Law, including as necessary for any regulatory, tax or securities filing, (iv)
    for use in any pending or threatened legal or administrative claim, suit, demand or action, (v) subject to its confidentiality
    obligations under this Agreement, in connection with a financing, acquisition or similar transaction, or (vi) for such other
    purposes as Seller may reasonably request, subject to Buyer’s prior written consent, which shall be in Buyer’s
    sole discretion. 

 

    	18

    	 

    

 

	2.6	Related
    Technology License. Seller grants to Buyer, and Buyer accepts, a perpetual, worldwide, royalty-free, non-exclusive license,
    with right to grant sublicenses (including through multiple tiers), under the Related Technology solely in connection with
    the Development, manufacture and Commercialization of the Products. Buyer shall have the right to sublicense its rights under
    this Section 2.6 to (i) an Affiliate of Buyer or (ii) any Third Party in connection with a license, agreement or transaction
    under which Buyer grants such Third Party a right to Develop or Commercialize the Product; provided that in each case such
    sublicensee agrees in writing to be bound by Buyer’s obligations under this Section 2.6. Buyer shall provide Seller
    a copy of each executed sublicense entered into by Buyer under this agreement. Buyer shall (a) comply in all material respects
    with all Applicable Law relating to the Development, manufacture and Commercialization of Products; (b) not claim or represent
    through the use of the Related Technology that it has acquired any title in or ownership of the Related Technology; and (c)
    not register or permit any Related Party to register any industrial or intellectual property right embodying the Related Technology
    in any country without Seller’s prior written consent, which consent shall not be unreasonably withheld or delayed.
	 	 
	2.7	Technology
    Transfer Transition Plan. As soon as practicable after the Closing Date, but in no case later than fifteen (15) Business
    Days after Closing the Parties shall meet in person at Seller’s offices to discuss and agree upon a written Technology
    Transition Plan that will, at a minimum, include the items set forth on Exhibit 8. Beginning on the Closing Date and for a
    period of one hundred and five (105) days after the Closing Date (the “Transition Period”), Seller shall
    use commercially reasonable efforts to transfer to Buyer, the Product Know-How, Transferred Materials and Transferable Books
    and Records in accordance with the Technology Transition Plan. As part of such technology transfer, for the first eighteen
    (18) months following the Closing Date, Seller shall provide to Buyer or its designee, such Product Know-How and Related Technology
    as reasonably requested by Seller to enable Seller to Develop, manufacture and Commercialize Products; provided that such
    Product Know-How and/or Related Technology is in Seller’s possession and reasonably capable of being transferred. Seller
    shall provide information and necessary support in accordance with the Technology Transition Plan. During the Transition Period,
    Seller shall bear its own expenses related to the Technology Transition Plan and the Technology Transfer. Buyer shall fund
    (a) all of the reasonable FTE costs incurred by Seller in the performance of the Technology Transition Plan after the Transfer
    Period and any subsequent transfer by Seller of Product Know-How, Transferred Materials or Transferable Books and Records
    on the basis of the FTE Rate per FTE and (b) all third party out-of-pocket expenses incurred by Seller in the performance
    of the Technology Transition Plan, to the extent such third party out-of-pocket costs are approved in writing in advance by
    Buyer. Buyer shall pay such FTE costs and such approved third party out-of-pocket expenses within thirty (30) days following
    receipt of an invoice therefor. Without limiting the foregoing, the Seller shall continue to support the technology transition
    efforts during the first eighteen (18) months following the Closing Date until all Transferred Materials and Transferable
    Books and Records have been effectively transferred to Buyer. 
	 	 
	2.8	Intrexon
    [****] and Payment. The Parties acknowledge that (a) pursuant to the Intrexon Agreement, Seller agreed to [****]
    with IT1D in the performance of a [****] relating to the Product, including by [****] of Product to IT1D; and (b) the Intrexon
    Payment is a portion of the compensation to be paid by Intrexon for the rights granted to IT1D pursuant to the Intrexon Agreement.
    In consideration of the foregoing, and notwithstanding anything to the contrary herein, the Parties agree that (i) Seller
    (or its designated vendor) shall retain [****] (as defined in the Intrexon Agreement) of the inventory of Product as required
    to [****] under the Intrexon Agreement; (ii) Seller shall, directly or through its vendor, [****] IT1D such quantities of
    Product as required to [****] Intrexon [****]; (iii) Seller shall have the right to directly request and receive the Intrexon
    Payment; and (iv) Buyer shall not supply Product to IT1D until after the Intrexon [****] has been [****] unless (A) Seller
    has breached the Intrexon [****] obligation and (B) the failure of Buyer to [****] ITID would result in a breach of the Intrexon
    Agreement. All obligations to Third Parties related to the safety, efficacy or non-conformance of the Intrexon [****], including
    any obligation to replace Product or to engage independent laboratories for testing, shall be deemed Retained Liabilities
    and shall remain with the Seller and Seller shall discharge all such obligations as required under each applicable agreement
    or understanding related to the Intrexon [****]. As reasonably requested by Seller, Buyer shall cooperate with Seller to support
    Seller’s efforts to fulfill the Intrexon [****]. 

 

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	2.9	Grant
    Back. Buyer grants to Seller, and Seller accepts, a worldwide, royalty-free, non-exclusive license, with right to grant
    sublicenses, under the Purchased Assets solely to perform its obligations under this Agreement.

 

	 	3.	CONSIDERATION
    AND PAYMENT

 

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

 

	Development
    and Regulatory Milestone	 	Payment
	[****]	 	[****]
	[****]	 	[****]
	[****]	 	[****]
	[****]	 	[****]
	[****]	 	[****]
	[****]	 	[****]

 

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

 

	3.3	Earn-Out.
    

 

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

 

    	20

    	 

    

 

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

 

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

 

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

 

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

 

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	3.5	Qualified
    Consideration. Buyer shall pay Seller an amount equal to [****] percent ([****]%) of all Qualified Consideration received
    pursuant to any Qualified Consideration Agreement; provided that if Buyer or its Affiliates enter into the Qualified Consideration
    Agreement after the Completion of the first Phase III Clinical Trial for a Product, then all such amounts paid to Seller shall
    be creditable against future milestones related to the applicable Product which are due to Seller in accordance with Section
    3.2 or Section 3.4.
	 	 
	3.6	Reports.
    Within forty-five (45) days (sixty (60) days in the event that a Licensee has generated Net Sales) after the conclusion of
    each calendar quarter in which Net Sales are generated or Qualified Consideration is received, Buyer shall deliver to Seller
    a report containing the following information (in each instance, with a Product-by-Product and country-by-country breakdown):
    (i) the gross amount billed or invoiced for Products sold, leased or otherwise transferred by Buyer, its Affiliates and Licensees
    during the applicable calendar quarter; (ii) a calculation of Net Sales for the applicable calendar quarter, including an
    itemized listing of deductions; (iii) a detailed accounting of all Qualified Consideration received during the applicable
    calendar quarter, if any; and (iv) the total amount payable to Seller in U.S. Dollars on Net Sales and Qualified Consideration
    for the applicable calendar quarter, together with the exchange rates used for conversion.
	 	 
	3.7	Payments.
    Within forty-five (45) days (sixty (60) days in the event that a Licensee has generated Net Sales) after the end of each calendar
    quarter, Buyer shall pay Seller all amounts due with respect to Net Sales and Qualified Consideration for the applicable calendar
    quarter. All payments due under this Agreement will be paid in U.S. Dollars. Conversion of foreign currency to U.S. Dollars
    will be made at the conversion rate existing in the United States (as reported in The Wall Street Journal, Eastern
    Edition) on the last working day of the applicable Calendar Quarter. Such payments will be without deduction of exchange,
    collection or other charges.
	 	 
	3.8	Interest.
    MacroGenics shall be entitled to charge interest on any payment under this Agreement that is overdue, to the extent permitted
    by Applicable Laws, at the thirty-day United States Dollar London Interbank Offered Rate (LIBOR) effective for the date that
    payment was due (as published in The Wall Street Journal, Eastern Edition) plus [****] percent ([****]%), on a per
    year basis. 
	 	 
	3.9	Taxes.
    Buyer and Seller do not anticipate there being any sales taxes, value added tax, use taxes, transfer taxes, or similar taxes
    or withholding requirements that will become payable in connection with the transactions under this Agreement. In the event
    any such taxes are payable or withholding is required by Applicable Laws, the Parties shall discuss in good faith and agree
    on a fair allocation of such taxes or withholding requirements; provided that in the absence of such agreement, the Parties
    shall equally bear any such taxes or withholding requirements. Seller shall bear any such taxes payable in connection with
    the manufacture or Development of the Product prior to the Closing Date, Buyer shall bear any such taxes payable in connection
    with the manufacture, Development or Commercialization of the Product on or after the Closing Date, and the Parties will cooperate
    in the filing of all necessary tax returns and other documentation with respect to all such taxes. For clarity, Buyer shall
    be responsible for all fees charged by Governmental Authorities, including recording or filing fees or similar charges, for
    effecting or recording the transfer to Buyer of any Purchased Assets. For further clarity, Seller shall remain exclusively
    liable for all corporate income tax, capital tax, and other corporate taxes imposed on the Seller.
	 	 
	3.10	Books
    and Records. With respect to each quarter in which a payment was due hereunder, Buyer will maintain complete and accurate
    books and records in sufficient detail to enable verification of the correctness of the payments due hereunder for a period
    of five (5) years after such quarter. Seller may audit Buyer’s and its Affiliates’ and Licensees’ relevant
    books and records in order to verify the aforesaid matters within the subject five year period. Upon reasonable prior notice
    and during normal business hours, Seller’s independent public accountants, subject to confidentiality obligations consistent
    with Article 7, shall have access to such books and records in order to conduct such a review or audit. The Parties shall
    reconcile any underpayment within sixty (60) days after the accountant delivers the results of the audit. If any audit performed
    under this Section 3.10 reveals an underpayment in excess of [****] percent ([****]%) in any calendar year, Buyer shall reimburse
    Seller for all amounts incurred in connection with such audit. Seller may exercise its rights under this Section 3.10 only
    once every year per audited entity, each period shall only be subject to audit with reasonable prior notice to the audited
    entity. 

 

    	22

    	 

    

 

	3.11	MGNX
    Stock Consideration. Notwithstanding anything to the contrary in this Agreement or any other agreement related to the
    transactions contemplated herein, Seller shall be solely responsible for, and shall perform when required under the Assumed
    Contracts, all obligations related to the issuance of MGNX Stock Milestones.
	 	 
	4.	CLOSING
    DELIVERIES
	 	 
	4.1	Time
    and Place. The closing of the transactions contemplated by this Agreement, including the purchase and sale of the Purchased
    Assets (the “Closing”), shall take place simultaneously with the signing of this Agreement, by electronic
    exchange of documents or otherwise at the offices of Seller, on the Closing Date, unless another place shall be agreed to
    by the Parties.
	 	 
	4.2	Seller
    Closing Deliveries. At Closing, Seller shall deliver or cause to be delivered to Buyer:

 

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

 

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

 

	 	(i)	the
    Warrant, duly executed by the Buyer; 
	 	 	 
	 	(ii)	the
    Lock-Up Agreement, duly executed by MDB Capital;
	 	 	 
	 	(iii)	the
    Bill of Sale and General Assignment Agreement, duly executed by Buyer; 
	 	 	 
	 	(iv)	the
    Patent Assignment Agreement, duly executed by Buyer; and 
	 	 	 
	 	(v)	a
    copy of all Consents and Waivers to which Buyer is a party, duly executed by Buyer. 

 

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	5.
    	REPRESENTATIONS
    AND WARRANTIES OF SELLER
	 	 
	5.1	Seller
    hereby makes to Buyer the following representations and warranties set forth in Section 5.2 through 5.21, as of the Closing
    Date. 
	 	 
	5.2	Corporate
    Organization. Seller is a corporation duly organized, validly existing and in good standing under the Applicable Laws
    of the State of Delaware. 
	 	 
	5.3	Authority
    of Seller. Seller has all necessary power and authority and has taken all actions necessary to enter into this Agreement
    and the other Transaction Documents and to carry out the transactions contemplated hereby and thereby. This Agreement and
    the other Transaction Documents have been duly and validly executed and delivered by Seller and, when executed and delivered
    by Buyer, will constitute legal, valid and binding obligations of Seller enforceable against it in accordance with their respective
    terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other Applicable Laws of
    general application affecting enforcement of creditors’ rights generally, and (ii) as limited by Applicable Laws relating
    to the availability of specific performance, injunctive relief or other equitable remedies. The execution, delivery and performance
    of this Agreement and all agreements, documents and instruments executed and delivered by Seller pursuant hereto, have been
    duly authorized by all necessary corporate or other action of Seller.
	 	 
	5.4	Non-Contravention.
    The execution and delivery by Seller of this Agreement and the other Transaction Documents to which it is a party, does not,
    and the performance by it or its relevant Affiliates of its or their obligations under this Agreement and the other Transaction
    Documents and the consummation of the transactions contemplated hereby and thereby will not:

 

	 	(i)	conflict
    with or result in a material violation or breach of any of the terms, conditions or provisions of the Certificate of Incorporation
    or Bylaws or other organizational documents of Seller or its relevant Affiliates or of any Program Contract;
	 	 	 
	 	(ii)	assuming
    the receipt of the Required Consents, conflict with or result in a material violation or breach of any term or provision of
    any Applicable Law that applies to Seller, the Product or the Purchased Assets;
	 	 	 
	 	(iii)	other
    than the Required Consents, the Transfer Letter and the transfer of any other regulatory documentation, require from Seller
    any notice to, declaration or filing with, or consent or approval of, any Governmental Authority in any country or other Third
    Party (other than any filing of Product Patents required to be made in accordance with the terms of this Agreement); or
	 	 	 
	 	(iv)	assuming
    the receipt of the Required Consents, accelerate any obligation under, or give rise to a right of termination of, any Program
    Contract. 

 

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

 

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	5.7	Intellectual
    Property. 

 

	 	(i)	As
    of the Closing Date each item of Product Intellectual Property is Controlled by Seller free and clear of any Encumbrances,
    other than the Permitted Encumbrances. The Product Intellectual Property, together with the Related Technology (the “Program
    IP”), constitutes all of the intellectual property Controlled by Seller and/or any of its Affiliates as of the Closing
    Date that is used or held for use in connection with, or otherwise necessary or useful for the manufacture, Development or
    Commercialization of the Product. Except as set forth on Schedule 5.7(i) of the Disclosure Schedules, neither Seller, nor
    any of its Affiliates, transferred ownership of, or granted any license of, or right to use, or authorized the retention of
    any rights to use or joint ownership of any Product Intellectual Property to any other Person.
	 	 	 
	 	(ii)	Exhibit
    2 sets forth a true, correct and complete list of all Patents Controlled by Seller that are solely and exclusively related
    to the Product (the “Listed Patents”) including, in each case, the title, jurisdiction(s) in which each
    Patent was or is filed, and the respective application number, patent number (if any), filing date and issuance date (if any).
    Seller has taken all actions required to duly file and maintain the Listed Patents in a timely manner, including the timely
    submission of all necessary filings in accordance with the legal and administrative requirements of the appropriate Government
    Authority. Neither Seller nor any of its Affiliates has received any written notice of any inventorship challenge, ownership
    dispute, Third Party right, interference, patentability, validity or enforceability with respect to any Listed Patent. Seller
    has made timely payment of any filing, registration, examination, maintenance, annuity and renewal fees due with respect to
    the Listed Patents, and the Listed Patents are not subject to any unpaid fees or taxes for filings falling due within sixty
    (60) days after the Closing Date. 
	 	 	 
	 	(iii)	Seller
    has not received any written communication from any Person (A) challenging, or threatening to challenge, the right of Seller
    or any of its Affiliates to use, exercise, sell, license, transfer or dispose of any Program IP or the Product, or (B) challenging
    the ownership, validity or enforceability of any Program IP. To Seller’s Knowledge, (A) all issued Patents included
    in the Listed Patents are valid, subsisting, and enforceable; and (B) all Patent applications included in the Listed Patents
    are subsisting and, to Seller’s Knowledge, valid and enforceable. Seller and its Affiliates have complied (and to Seller’s
    Knowledge, any other Person involved in filing, maintaining and prosecution of the Listed Patents, have complied) in all material
    respects with Applicable Law regarding the duty to disclose and duties of candor in the filing, maintaining and prosecution
    of the Listed Patents.
	 	 	 
	 	(iv)	Schedule
    5.7(iv) lists all licenses, sublicenses and other agreements in effect as of the Closing Date to which Seller or any of
    its Affiliates is a party and pursuant to which any Third Party is granted (A) any license or other right to make, have made,
    use, sell, have sold, offer for sale, import or otherwise distribute or exploit any Product, including any materials transfer
    agreements and research agreements related to the Product, and any other material instrument by which the Product has been
    provided to any Third Party for research or any other purpose, (B) any covenant not to assert/sue or other immunity from suit
    under or any other rights to, any Product Intellectual Property, (C) any ownership right or title, whether actual or contingent,
    to any Product Intellectual Property, or (D) an option or right of first refusal relating to any Product Intellectual Property
    (collectively, “Outbound Licenses”). Seller has delivered or otherwise made available to Buyer accurate
    and complete copies of all Outbound Licenses, and Seller or its applicable Affiliate is in compliance with (and, to Seller’s
    Knowledge, each other party to such Outbound Licenses are in compliance with) all material terms and conditions of all Outbound
    Licenses. Except as set forth on Schedule 5.7(iv), neither Seller nor any of its Affiliates is party to any contract that
    provides for earn-outs, milestone payments, royalties or other contingent payments to be paid to Seller or its Affiliates
    related to the development, approval, manufacture, use, sale, offer for sale, or import or other exploitation of any Product.

 

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	 	(v)	Schedule
    5.7(v) lists all licenses, sublicenses and other agreements in effect as of the Closing Date to which Seller or any of
    its Affiliates is a party and pursuant to which any Third Party grants to Seller or any of its Affiliates (A) any license
    or other right to make, have made, use, sell, have sold, offer for sale, import or otherwise distribute or exploit any Product,
    (B) any covenant not to assert/sue or other immunity from suit under or any other rights to, any intellectual property rights
    claiming or covering the development, approval, manufacture, use, sale, offer for sale, or import or other exploitation of
    any Product and/or otherwise related to the Product Intellectual Property, (C) any ownership right or title, whether actual
    or contingent, to any intellectual property rights claiming or covering the development, approval manufacture, use, sale,
    offer for sale, or import or other exploitation of any Product and/or otherwise related to the Product Intellectual Property,
    or (D) an option or right of first refusal relating to any intellectual property rights claiming or covering the development,
    approval, manufacture, use, sale, offer for sale, or import or other exploitation of any Product and/or otherwise related
    to the Product Intellectual Property (collectively, “Inbound Licenses”). Schedule 5.7(v) also identifies
    all Inbound Licenses requiring Seller or any of its Affiliates to license, assign or otherwise grant rights to any Third Party
    for any additions, modifications or improvements to any Product Intellectual Property made by or for Seller or its Affiliates.
    Seller has delivered or otherwise made available to Buyer copies of all Inbound Licenses, and Seller or its Affiliate, as
    applicable, is in compliance with (and, to Seller’s Knowledge, each other party to such Inbound Licenses are in compliance
    with) all material terms and conditions of all Inbound Licenses.
	 	 	 
	 	(vi)	Schedule
    5.7(vi) lists agreements for Development (including pre-clinical and clinical) or other services currently being provided
    by any Third Party or under which Seller has outstanding obligations related to the Product and/or the Product Intellectual
    Property (“Service Contracts”). Seller has delivered or otherwise made available to Buyer copies of all
    Service Contracts, and Seller or its Affiliate, as applicable, is in compliance with (and, to Seller’s Knowledge, each
    other party to such Service Contracts are in compliance with) all material terms and conditions of all Service Contracts.
	 	 	 
	 	(vii)	Except
    as set forth in Schedule 5.7(vii) of the Disclosure Schedules, neither Seller, nor any of its Affiliates, has received any
    written communication, claim or demand from any Third Party concerning Third Party intellectual property rights in connection
    with the Product, or alleging that any material infringement, violation or misappropriation of any Third Party’s intellectual
    property rights has occurred with respect to the Program IP or as a result of the manufacture, Development or Commercialization
    of the Product. During the last three (3) years, neither Seller nor any of its Affiliates has received any written communication
    alleging that the conduct of the practice of any Program IP violates any right to privacy or publicity of any Person, violates
    any Applicable Laws or constitutes unfair competition or trade practices under Applicable Law. To the Knowledge of Seller
    as of the Closing Date, neither the past or current Development, manufacture (including use of certain cells to produce Teplizumab
    for the Product), Commercialization, use, sale or import of Teplizumab or the Product has or would infringe, misappropriate
    or otherwise violate the intellectual property rights of any Third Party as of the Closing Date.

 

    	26

    	 

    

 

	 	(viii)	Seller
    has taken customary measures and precautions necessary to protect and maintain the confidentiality of the Product Know-How.
    During the last three (3) years, neither Seller nor any Seller Affiliate has received any written communication alleging any
    violation of Applicable Laws pertaining to the privacy and security of protected health information within any clinical data
    or regulatory materials related to the Product.
	 	 	 
	 	(ix)	Each
    current or former employee, consultant and independent contractor employed or engaged by Seller or any of its Affiliates in
    the manufacture, Development or Commercialization of Product has executed a valid and binding written agreement (A) expressly
    assigning to Seller all right, title and interest in any intellectual property rights which relate the Product and were invented,
    created, developed, conceived or reduced to practice during the term of such employee’s, consultant’s or and independent
    contractor’s employment or engagement; and (B) requiring each such employee, consultant or independent contractor to
    protect and preserve all applicable Program IP. Such assignments have been directly assigned to Seller or its Affiliates.
	 	 	 
	 	(x)	Except
    as set forth in Schedule 5.7(x) of the Disclosure Schedules, neither Seller nor any of its Affiliates has (A) sought, applied
    for or received any support, funding, resources, materials or assistance from any Government Authority, university, college
    or other educational or non-profit institution or research center in connection with the creation or development of the Product
    Intellectual Property or the Product, or (B) used any facilities of a university, college, or other educational institution
    or research center in the development of any Product or the creation or development of the Product Intellectual Property.
    To Seller’s Knowledge, no current or former employee, consultant or independent contractor who was in any way involved
    in (or has in any way contributed to) the creation or development of the Product Intellectual Property or the Product has
    performed services for any Government Authority, university, college or other educational or non-profit institution or research
    center during a period of time during which such employee, consultant or independent contractor was also performing services
    for Seller or Seller Affiliates that would result in any adverse claim or right relating to the Product Intellectual Property.
    Except as set forth in Schedule 5.7(x) of the Disclosure Schedules, no Government Authority, university, college or other
    educational or non-profit institution or research center has any claim of right to ownership of or other liens, claims or
    interests with respect to the Product Intellectual Property. 

 

	5.8	Compliance
    with Law. Seller has complied in all material respects with and is not in material breach, violation or noncompliance
    of any Applicable Laws with respect to the ownership, use, manufacture or Commercialization of the Product, except for such
    non-compliance as would not reasonably be expected to materially adversely affect Buyer’s interest in the Purchased
    Assets or Buyer’s ability to Develop, manufacture or Commercialize any Product.
	 	 
	5.9	Litigation.
    During the past five (5) years there have been no, and as of the Closing Date there are no Third Party Claims pending or,
    to the Knowledge of Seller, threatened against Seller, relating to, affecting or arising in connection with (i) a Product,
    (ii) the Purchased Assets, (iii) this Agreement, (iv) the Related Technology or (v) the transactions contemplated by this
    Agreement. To the Knowledge of Seller, no event has occurred, and no condition or circumstance exists, that can be reasonably
    expected to serve as a basis for the commencement of any such Third Party Claims against Seller with respect to the manufacture
    or Development of a Product until the Closing Date. Neither the Related Technology, nor the Purchased Assets are subject to
    any judgment, order, writ, injunction, decree or award of any court, arbitrator or governmental department, commission, board,
    bureau, agency or instrumentality against Seller that can reasonably be expected to materially and adversely affect, prevent,
    impair or delay the consummation of this Agreement.

 

    	27

    	 

    

 

	5.10	Regulatory
    Compliance; Debarment. As of the Closing Date: (i) there is no pending or, to the Knowledge of Seller, threatened Action
    or Proceeding by a Governmental Authority against Seller relating to the Product, the Related Technology or the Purchased
    Assets, (ii) there is no pending or, to the Knowledge of Seller, threatened Action or Proceeding by a Governmental Authority
    against a Product Developed, manufactured or Commercialized by or on behalf of Seller or against any Purchased Assets, (iii)
    there is no act or omission by, or event or circumstance known to the Seller that, to the Knowledge of the Seller, would or
    reasonably would be expected to result in an Action or Proceeding by a Governmental Authority against Seller relating to the
    Product, the Related Technology or the Purchased Assets, (iv) all required submissions to the FDA related to Seller’s
    manufacture or Development of the Product have been made, (v) all submissions made by or on behalf of Seller to the FDA or
    any other Governmental Authority, if any, are accurate and complete in all material respects; (vi) there is no arrangement
    to which Seller is a party or authorized by Seller providing for any rebates, kickbacks or other forms of compensation that
    are unlawful to be paid to any Person in return for the referral of business or for the arrangement for recommendation of
    such referrals, (vii) neither Seller, nor any individual who is an officer or director of Seller as of the Closing Date, nor,
    to the Knowledge of Seller, any other employee, consultant, agent of Seller or any of Seller’s predecessors in interest
    or its collaborators, directly involved in the Development or manufacture of a Product (A) has been convicted of, charged
    with or, to the Knowledge of Seller, investigated for any offense related to healthcare, or (B) has been convicted of, charged
    with or, to the Knowledge of Seller, investigated for a violation of Applicable Laws related to fraud, theft, embezzlement,
    breach of fiduciary responsibility, financial misconduct, obstruction of an investigation or distribution of controlled substances,
    (C) has engaged in any conduct that has resulted, or would reasonably be expected to result, in debarments under 21 U.S.C.
    § 335a(a) or any similar Applicable Laws, or (D) committed an act, made a statement or failed to make a statement that
    would provide the basis for the FDA to invoke its policy respecting “Fraud, Untrue Statements of Material Facts, Bribery,
    and Illegal Gratuities,” as set forth in 56 Fed. Reg. 46191 (September 10, 1991), (viii) there have been no recalls,
    field notifications or seizures or adverse regulatory actions taken (or, to the Knowledge of Seller after reasonable investigation,
    threatened) by any Governmental Authority with respect to the Product or, to the Knowledge of Seller, an ingredient of a Product,
    including any such actions materially and adversely affecting facilities where the Product or Product ingredients are manufactured,
    produced, processed, packaged or stored for Seller, and Seller has not, either voluntarily or at the request of any Governmental
    Authority, initiated or participated in a recall of a Product. 
	5.11	Disclosures.
    Seller has made available to Buyer true, correct and complete copies of (i) all Program Contracts; (ii) the INDs and CTAs
    and all material Product related information that Seller is required to maintain pursuant to the requirements of the FDA,
    including Product complaint files and labeling change files, (iii) all Patents Controlled by Seller, to the extent not publicly
    available, relating to the Product or its manufacture or Commercialization and to the extent included in the Product Patents,
    (iv) the Transferrable Books and Records, including the complete regulatory file for the Product. Neither Seller nor any Affiliate
    is a party to any unwritten agreement directly relating to the Development, manufacture or Commercialization of Product that
    would materially adversely affect the sale, use, manufacture or Commercialization of a Product. Except as set forth on Schedule
    5.11 of the Disclosure Schedules, Seller has not granted to a Third Party any right, and no Third Party has any right under
    the INDs and CTAs or the Product Intellectual Property, to manufacture, Develop or Commercialize the Product. To the Knowledge
    of Seller, all information provided by Seller to Buyer relating to the manufacture, Development and Commercialization of the
    Product has not contained any untrue statement of a material fact or intentionally omitted to state a material fact necessary
    in order to make the statements therein not misleading in light of the circumstances under which they were made.

 

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	5.12	Brokers.
    Seller has not retained any broker in connection with the transactions contemplated under this Agreement. Buyer will have
    no obligation to pay fees of any brokers, finders, investment bankers, or financial advisors engaged by Seller in connection
    with this Agreement or the transactions contemplated hereby.
	 	 
	5.13	Solvency.
    Seller has entered into this Agreement in good faith as a result of arms-length negotiations with Buyer. Seller is not entering
    into this Agreement or any transaction contemplated hereunder with the intent to hinder, delay or defraud any Person to which
    it is, or may become, indebted. As of the Closing Date, Seller has the capacity and financial capability to comply with and
    perform all of the covenants and obligations under this Agreement. Further, as of the Closing, giving effect to the consummation
    of all of the transactions contemplated by this Agreement, including, without limitation, the transfer and delivery of the
    Purchased Assets, will not cause Seller to be insolvent under any Applicable Law relating to fraudulent transfers or fraudulent
    conveyance.
	 	 
	5.14
    	Eli
    Lilly Agreement; Third Party Obligations. The Eli Lilly Agreement has been terminated and the [****] described in Amendment
    No. 2 to the Eli Lilly Agreement, dated as of [****], has been completed. There are no outstanding obligations or liabilities
    related to the Product or the Purchased Assets under the Eli Lilly Agreement. The total amount due under the Eli Lilly Agreement,
    as agreed between Eli Lilly & Company, Buyer and Seller in the Eli Lilly Consent is [****] U.S. dollars ($[****]) and
    is exclusively due as a royalty on sales of Product. Schedule 5.14(ii) sets forth a true, complete and correct list of the
    Third Party Obligations that would be payable on sales of Product.
	 	 
	5.15	Clinical
    Trials. Schedule 5.15 contains a complete listing of all clinical trials conducted using Product, including any investigator-Sponsored
    studies. The preclinical studies and clinical trials of the Product conducted by or on behalf of Seller were and, if still
    ongoing, are being conducted in all material respects in accordance with experimental protocols, procedures and controls pursuant
    to accepted professional scientific standards and all Applicable Laws (including, to the extent applicable, cGLPs and cGCPs).
    All required IRB approvals have been obtained and are currently in place for any ongoing clinical trials of Product. Valid
    informed consents have been obtained and are in the Seller’s possession or control for all patients who have been in
    Seller’s clinical trials of Product. All adverse experiences occurring in clinical trials have been reported to FDA
    as required. All Product used in such clinical trials materially complied with all Applicable Laws (including, to the extent
    applicable, cGMPs), and there have not been any material deficiencies or defects in such Product. Neither Seller, nor any
    of its agents, or to its Knowledge and of its collaborators, have received any written notices or correspondence from the
    FDA or any other Government Authority requiring the termination, suspension, hold or material modification of any preclinical
    study or clinical trial of a Product conducted by or on behalf of Seller. Neither Seller nor any of its agents, or to its
    Knowledge any of its collaborators, have received any written communication from any Person threatening any claim or lawsuit
    against Seller, any of its agents or its collaborators, arising from the administration of a Product to any Person in the
    course of any clinical trial conducted by or on behalf of Seller. FDA has not issued any 483 or finding of deficiency or non-compliance
    in respect of the Product, any clinical trial of the Product, or any Third Party involved in the conduct of a clinical trial
    of the Product. 
	 	 
	5.16	Undisclosed
    Liabilities. To Seller’s Knowledge, except for liabilities to Seller and any liabilities which are disclosed on
    Schedule 5.14(ii), there is no financial or economic liability that would be due in connection with the Development, manufacturing
    or Commercialization of the Product under agreements that were entered into by Seller, or to its Knowledge, its predecessors
    in interest prior to the Closing Date. 

 

    	29

    	 

    

 

	5.17	Transferred
    Materials; Suppliers. The Transferred Materials have been manufactured in compliance with all Applicable Laws including
    cGMP and have met all applicable specifications, except as would not materially adversely affect Buyer’s ability to
    manufacture, Develop or Commercialize the Product. Neither Seller nor any Third Party has received any written notices or
    correspondence from the FDA or any other Government Authority regarding the Transferred Materials. 
	 	 
	5.18	Sufficiency;
    Development and Manufacturing Pre-Closing. The Transferable Notes and Books accurately describe and document the Development
    and manufacturing of the Product in the manner done by Seller prior to the Closing Date. The Purchased Assets, together with
    the Related Technology, constitute the intellectual property rights necessary for the Development or manufacturing of the
    Product in the manner done by Seller prior to the Closing Date. Except for intellectual property rights that constitute Related
    Technology or that are included in the Purchased Assets, there are no intellectual property rights that Seller has an interest
    in prior to the Closing Date that are necessary for the Commercialization of the Product. 
	 	 
	5.19	Data
    Room. All information and documentation contained in the Data Room, to which Buyer has been provided access, is true and
    accurate in all material respects and reflects the subject matter to which it relates. The Data Room (i) contains all material
    information in order to give a true and documentation fair view of the Purchased Assets, the Assumed Liabilities and the Product,
    (ii) does not include any matter of material importance which is incorrect or misleading, and (iii) does not omit any information
    which is of material importance, which by omission would make the contents of the Data Room materially incorrect or misleading,
    except as would not materially adversely affect Buyer’s interest in the Purchased Buyer’s interest in the Purchased
    Assets or Buyer’s ability to Develop, manufacture or Commercialize any Product. 
	 	 
	5.20	Insurance.
    All of the Purchased Assets which are of an insurable nature have at all material times been insured against all such risks
    as persons carrying on a similar business to the Seller would be expected to cover by insurance. Seller has at all relevant
    times maintained adequate product liability insurance and insurance covering clinical trials related to the Product performed
    by it or on its behalf. 
	 	 
	5.21	Accredited
    Investor. Seller is an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities
    Act of 1933 (the “Securities Act”), as amended. The Seller has substantial experience in evaluating and
    investing in securities in companies similar to the Buyer so that Seller is capable of evaluating the merits and risks of
    Seller’s investment in Buyer (pursuant to the Warrant) and has the capacity to protect Seller’s own interests.
    The Seller is acquiring the Warrant (and the shares issuable upon exercise of this Warrant) for investment for Seller’s
    own account, not as a nominee or agent, and not with the view to, or for resale in connection with, any distribution thereof.
    Seller understands that the Warrant (and the shares issuable upon exercise of the Warrant) have not been, and will not be,
    registered under the Securities Act by reason of a specific exemption from the registration provisions of the Securities Act
    which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of Seller’s representations
    as expressed herein and in the Warrant.
	 	 
	5.22	No
    Other Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS OR WARRANTIES EXPRESSLY SET FORTH IN THIS ARTICLE
    5 OR IN ANY OTHER TRANSACTION DOCUMENTS, SELLER DISCLAIMS ANY AND ALL OTHER REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS
    OR IMPLIED, ORAL OR WRITTEN, INCLUDING ANY INFORMATION FURNISHED BY SELLER WITH REGARD TO THE PRODUCT OR THE PURCHASED ASSETS,
    INCLUDING THE FUTURE PROFITABILITY OF ANY PRODUCT, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT
    OF INTELLECTUAL PROPERTY RIGHTS.

 

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	6.	REPRESENTATIONS
    AND WARRANTIES OF BUYER
	 	 
	6.1	Representations
    and Warranties. Buyer hereby makes to Seller the representations and warranties set forth in Sections 6.2 through 6.8,
    as of the Closing Date.
	 	 
	6.2	Corporate
    Organization. Buyer is a corporation duly organized, validly existing and in good standing under the Applicable Laws of
    Delaware.
	 	 
	6.3	Authority
    of Buyer. Buyer has all necessary power and authority and has taken all actions necessary to enter into this Agreement
    and the Transaction Documents and to carry out the transactions contemplated hereby and thereby. This Agreement and all Transaction
    Documents have been duly and validly executed and delivered by Buyer and, when executed and delivered by Seller, will constitute
    legal, valid and binding obligations of Buyer enforceable against it in accordance with their terms except (i) as limited
    by applicable bankruptcy, insolvency, reorganization, moratorium and other Applicable Laws of general application affecting
    enforcement of creditors’ rights generally, and (ii) as limited by Applicable Laws relating to the availability of specific
    performance, injunctive relief or other equitable remedies. The execution, delivery and performance of this Agreement and
    all agreements, documents and instruments executed and delivered by Buyer pursuant hereto, have been duly authorized by all
    necessary corporate or other action of Buyer.
	 	 
	6.4	Non-Contravention.
    The execution and delivery by Buyer of this Agreement does not, and the performance by it of its obligations under this Agreement
    and the consummation of the transactions contemplated hereby will not:

 

	 	(i)
    	conflict
    with or result in a material violation or breach of any of the terms, conditions or provisions of the Articles of Incorporation,
    Bylaws or other organizational documents of Buyer;
	 	 	 
	 	(ii)	assuming
    the receipt of the Required Consents, violate, conflict with or result in a violation of, or constitute a default (whether
    after the giving of notice, lapse of time or both) under, any provision of any Applicable Law, regulation or rule, or any
    order of, or any restriction imposed by, any court or governmental agency applicable to Buyer; 
	 	 	 
	 	(iii)	other
    than the Required Consents, require from Buyer any notice to, declaration or filing with, or consent or approval of any Governmental
    Authority in any country or other Third Party; or
	 	 	 
	

                                                                               
	(iv)	assuming
    the receipt of the Required Consents, violate or result in a violation of, or conflict with or constitute or result in a violation
    of or default (whether after the giving of notice, lapse of time or both) under, accelerate any obligation under, or give
    rise to a right of termination of, any contract, agreement, permit, license, authorization or other obligation to which Buyer
    is a party or by which Buyer or any of its assets are bound.

 

	6.5	Financial
    Capability. Buyer has entered into this Agreement in good faith as a result of arms-length negotiations with Seller. Buyer
    is not entering into this Agreement or any transaction contemplated hereunder with the intent to hinder, delay or defraud
    any Person to which it is, or may become, indebted. Buyer believes in good faith that it has or will have at the time required
    to perform the capacity and financial capability to comply with and perform all of the covenants and obligations under this
    Agreement. 
	 	 
	6.6	Brokers.
    Buyer has not retained any broker in connection with the transactions contemplated hereunder. Seller will have no obligation
    to pay fees of any brokers, finders, investment bankers, or financial advisors engaged by Buyer in connection with this Agreement
    or the transactions contemplated hereby.

 

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	6.7	Diligence
    Investigation. Buyer has conducted its own independent investigation, review and analysis in connection with this Agreement
    and the transactions contemplated hereby, including regarding the Purchased Assets, the Assumed Contracts and the Product
    and the manufacture and Development thereof. Such investigation shall in no way limit any claims by Buyer resulting from any
    breach by Seller of any of its representations, warranties and covenants contained herein, including, without limitation,
    claims arising from or fraud or intentional misconduct. 
	 	 
	6.8	Buyer
    Stock. The authorized capital stock of Buyer consists of (i) 50,000,000 shares of common stock, par value $0.0001 per
    share (“Buyer Common Stock”), 10,000,000 of which are issued and outstanding and (ii) 25,000,000 shares
    of preferred stock, $0.0001 par value, of which 13,000,000 shares have been designated as Series A Preferred Stock (“Buyer
    Series A Preferred Stock”), of which 11,381,999 shares of Buyer Series A Preferred Stock are issued and outstanding.
    Buyer has reserved 3,869,424 shares of Buyer Common Stock for issuance to officers, directors, employees and consultants of
    Buyer pursuant to its 2017 Equity Incentive Plan duly adopted by the board of directors of Buyer and approved by the stockholders
    of Buyer, of which 2,656,435 have been issued to employees and consultants of the Buyer. Buyer has reserved 558,740 shares
    of Buyer Series A Preferred Stock for issuance pursuant to that certain Warrant, dated as of April 25, 2017, in favor of MDB
    Capital Group, LLC. There are no bonds, debentures, notes or other indebtedness having general voting rights (or convertible
    into securities having such rights) (“Voting Debt”) of Buyer issued and outstanding. Except as set forth
    above, there are no options, warrants, calls, subscriptions or other rights, agreements, arrangements or commitments of any
    kind relating to the issued or unissued capital stock of Buyer, obligating Buyer to issue, transfer or sell or cause to be
    issued, transferred or sold any shares of capital stock or Voting Debt of, or other equity interest in, Buyer or securities
    convertible into or exchangeable for such shares or equity interests, or obligating Buyer to grant, extend or enter into any
    such option, warrant, call, subscription or other right, agreement, arrangement or commitment.
	 	 
	6.9	No
    Other Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS OR WARRANTIES EXPRESSLY SET FORTH IN THIS ARTICLE
    6 OF THIS AGREEMENT OR IN ANY OTHER TRANSACTION DOCUMENTS, BUYER DISCLAIMS ALL OTHER REPRESENTATIONS OR WARRANTIES, WHETHER
    EXPRESS OR IMPLIED, ORAL OR WRITTEN, RELATED TO THIS AGREEMENT.
	 	 
	7.	COVENANTS
    OF THE PARTIES
	 	 
	7.1	Cooperation.

 

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

 

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

 

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	7.5	Press
    Releases and Other Permitted Disclosures.

 

	 	(i)
    	Attached
    as Exhibit 11, is a copy of the press release to be issued by the Buyer on the Closing Date. Except as set forth in the previous
    sentence or otherwise in this Section 7.5, no press release, public statement or disclosure concerning the existence or terms
    of this Agreement shall be made, either directly or indirectly, by either Party, without first obtaining the written approval
    of the other Party, which such approval shall not be unreasonably withheld or delayed; provided that Seller may disclose
    the receipt of any milestone payment amount under this Agreement. Once any public statement or disclosure has been approved
    in accordance with this Section 7.5, then either Party may appropriately communicate information contained in such permitted
    statement or disclosure. 
	 	 	 
	 	(ii)	Each
    Party may disclose the existence and terms of this Agreement in confidence: (a) (1) to its attorneys, professional accountants,
    and auditors, and (2) bankers or other financial advisors in connection with an initial public offering, private financing
    or other strategic transaction, or corporate valuation for internal purposes; provided that any such disclosure to
    such professional accountants, auditors, bankers or other financial advisors is under an agreement to keep the terms of confidentiality
    and non-use no less rigorous than the terms contained in this Agreement and to use such information solely for the applicable
    purpose permitted pursuant to this Section 7.4(ii)(a); (b) to potential acquirers (and their respective attorneys and professional
    advisors), in connection with a potential merger, acquisition or reorganization; provided that such disclosure is under
    an agreement according to terms of confidentiality and non-use that are no less rigorous than the terms contained in this
    Agreement and require the use of such information solely for the purpose permitted pursuant to this Section 7.5(ii)(b); (c)
    to existing or potential investors, lenders or permitted assignees of such Party (and their respective attorneys and professional
    advisors); provided that such disclosure is under an agreement according to terms of confidentiality and non-use that
    are no less rigorous than the terms contained in this Agreement; and (d) to current and potential licensees or sublicensees
    or potential acquirors of such Party or of the Product (and their respective attorneys and professional advisors).
	 	 	 
	 	(iii)	Notwithstanding
    the foregoing provisions of this Article 7, a Party may disclose the existence and terms of this Agreement or a Party’s
    or the Parties’ activities under this Agreement where required, as reasonably determined by the legal counsel of the
    disclosing Party, by Applicable Law, by applicable stock exchange regulation, as required in connection with filings under
    applicable securities laws or by order or other ruling of a competent court, although, to the extent practicable, the other
    Party shall be given prompt notice of any such legally required disclosure to comment and reasonably consider such comments
    provided by such Party on the proposed disclosure.
	 	 	 
	 	(iv)	Nothing
    in this Section 7.5 shall be deemed to restrict Buyer from providing public updates on the Product or its Development, manufacturing
    or Commercialization as deemed necessary or advisable by the Buyer in its sole discretion; provided that Buyer does not use
    the name of Seller or its Affiliates (except to the extent referred to as the manufacturer of Product or licensor of certain
    Product-related rights, as may be necessary under applicable law or the Assumed Contracts) in any such public updates and
    does not otherwise disclose any Confidential Information of Seller.

 

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

 

    	34

    	 

    

 

	7.7	Regulatory
    Matters. A copy of each Transfer Letter authorizing the transfer of ownership of the INDs and CTAs as well as the orphan
    drug designation owned by Seller to Buyer shall be delivered on the Closing Date and within ten (10) Business Days after the
    Closing Date, (a) Seller shall submit the Transfer Letters to the relevant Governmental Authorities and shall notify Buyer
    of such submission on the date submitted (providing Buyer an electronic copy of the submission with such notification) and
    (b) shall provide to Buyer the full regulatory file for the INDs and CTAs held by the Seller, including all available electronic
    meta data. Upon notification of the Seller’s submission of the Transfer Letter to the relevant Governmental Authorities,
    Buyer shall execute and submit to the relevant Governmental Authorities letters acknowledging Buyer’s commitment to
    assume ownership of the INDs and CTAs and the orphan drug designation owned by Seller. As of the Closing Date, except as otherwise
    set forth in this Section 7.7, Buyer shall be solely responsible for taking any actions necessary to (i) obtain any documentation
    required to maintain the INDs and CTAs or the orphaned drug designation owned by Seller or obtain any further authorizations
    under any Applicable Law, and (ii) otherwise comply with any Applicable Law with respect to regulatory authorizations. During
    the period between the Closing Date and the date that is that is eighteen (18) months from the Closing Date, Seller shall
    provide reasonable assistance as requested by Buyer in connection with Buyer’s fulfilment of its obligations under this
    Section 7.7. Except as set forth in any further written agreement between the Parties, as of the Closing Date, Buyer shall
    be solely responsible for investigating and reporting adverse experiences for the Product to any Governmental Authorities
    and addressing any such Governmental Authorities’ inquiries related to the safety of the Product; provided, however,
    that Seller shall provide reasonable assistance and cooperation to Buyer to the extent any such investigations or inquiries
    related to the manufacture or development of the Product prior to the Closing Date by or on behalf of Seller. Except as set
    forth in any further written agreement between the Parties, as of the Closing Date, Buyer shall be solely responsible for
    addressing any Person’s medical inquiries or complaints relating to the Product; provided, however, that Seller shall
    provide reasonable assistance and cooperation to Buyer to the extent any such inquiries or complaints related to the manufacture
    or Development of the Product prior to the Closing Date by or on behalf of Seller.
	 	 
	7.8	Development
    and Commercialization of Products after Closing. Following the Closing Date Buyer agrees to (i) use Reasonable Commercial
    Efforts to commence a [****] in accordance with the Development Plan; and (ii) use Reasonable Commercial Efforts to manufacture,
    Develop and Commercialize at least one Product in the United States and Europe. Buyer shall provide to Seller, semi-annually,
    written reports on its completed and planned Development and Commercialization activities with respect to each Product. Each
    such report shall include an update regarding Development activities conducted by or on behalf of Buyer (including activities
    conducted under the Development Plan) and progress towards achieving the Development and Regulatory Milestones.
	 	 
	8.	MANUFACTURING
	 	 
	8.1	Manufacturing
    and Quality Agreements. As part of the Technology Transition Plan described in Section 2.7, during the Transition Period,
    Buyer and Seller shall negotiate in good faith manufacturing transfer and quality agreements for the Product that will include
    provisions regarding the transfer of: (i) existing clinical material; (ii) all cGMP and non-cGMP bulk drug substance or partially
    finished drug Product, including API, along with the corresponding cell lines and any specialized and dedicated equipment
    (e.g., proprietary media, dedicated purification columns/filters, etc.) required for the production of Teplizumab; and (iii)
    the CMC and quality support and documentation necessary to label, package, release and ship the existing inventory of cGMP
    finished drug product vials to clinical trial sites and/or a corresponding storage and distribution subcontractor. After the
    Transition Period, Seller shall continue to provide support on the manufacturing transfer described in this Section 8.1 in
    accordance with the Technology Transition Plan and in accordance with the terms of Section 2.7 for a period of eighteen (18)
    months from the Effective Date. Costs incurred by Seller in connection with this Section 8.1 shall be subject to the cost
    allocation and reimbursement provisions of Section 2.7. 

    	35

    	 

    

 

	9	INDEMNIFICATION
	 	 
	9.1	Survival
    of Representations, and Warranties.

 

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

 

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

 

    	36

    	 

    

 

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

 

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

 

	9.6	Insurance.
    Buyer and Seller shall each maintain a commercial general liability insurance policy or policies to protect against potential
    liabilities and risk arising out of this Agreement and are as are appropriate to cover the Parties’ respective indemnification
    obligations hereunder. Upon request, each Party shall provide certificates of insurance to the other evidencing the coverage
    specifies herein. Neither Party’s liability to the other is in any way limited to the extent of its insurance coverage.
    

 

    	37

    	 

    

 

	9.7	Limitations
    on Indemnification. Notwithstanding anything to the contrary herein, (i) Seller shall not have any liability under Section
    9.2 for any individual item (or series of related items) where the Damages relating thereto until the aggregate damages related
    thereto meet or exceed [****] United States dollars ($[****]) provided that once the Damages equal or exceed [****] United
    States dollars ($[****]), the Seller shall be liable for all Damages from the first dollar and (ii) Seller’s aggregate
    liability under Section 9.2(i) (other than for breaches of Fundamental Representations or Core Representations, or for claims
    related to fraud, gross negligence or willful misconduct) shall in no event exceed, on a cumulative basis, [****] percent
    ([****]%) of the Aggregate Consideration (as determined from time to time). Notwithstanding anything to the contrary herein,
    (a) Buyer shall not have any liability under Section 9.3 for any individual item (or series of related items) where the Damages
    relating thereto until the aggregate damages related thereto meet or exceed [****] United States dollars ($[****]) provided
    that once the Damages equal or exceed [****] United States dollars ($[****]), the Buyer shall be liable for all Damages from
    the first dollar and (b) Buyer’s aggregate liability under Section 9.3(i) (other than for breaches of Fundamental Representations
    or Core Representations, or for claims related to fraud, gross negligence or willful misconduct) shall in no event exceed,
    on a cumulative basis, [****] percent ([****]%) of the Aggregate Consideration (as determined from time to time). For purposes
    of this Section 9.7, “Aggregate Consideration” means, as determined from time to time, the sum of each
    of the following amounts: (A) the [****], (B) the [****]; (C) [****] paid to Seller in accordance with Section [****]; (D)
    the [****]; (E) [****] paid to Seller in accordance with Section [****]; (F) the aggregate amount of [****], including consideration
    due to Tolerance in connection with the consummation of the transactions contemplated under this Agreement. Nothing in this
    Section 9.7 is intended to, nor shall it, limit Seller’s liability under Sections 9.2(ii) or 9.2(iii) or Buyer’s
    liability under Section 9.3(ii) or 9.3(iii).
	 	 
	9.8	Cap
    on Damages. Except for claims involving fraud, gross negligence or willful misconduct and for Seller’s indemnification
    obligations pursuant to Section 9.2 or Buyer’s indemnification obligations pursuant to Section 9.3, each Party’s
    aggregate liability under this Agreement (including negligence) shall not exceed the aggregate amounts actually paid (and,
    with respect to Buyer’s liability hereunder, payable) by Buyer to Seller pursuant to Sections 3.1 through 3.5. 
	 	 
	9.9	Set-Off.
    To the extent that any amount would have been payable to Buyer under Section 9.2 but for the “Aggregate Consideration”
    limitations set forth in Section 9.7, Buyer shall be entitled to set off such unpaid amount against the BLA Approval Milestone
    payment subject to the following conditions:

 

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

 

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

 

	 	(i)	if
    sent by email, upon acknowledgment of receipt; or
	 	 	 
	 	(ii)	in
    the case of delivery by registered mail, within five (5) Business Days from the date of dispatch; or
	 	 	 
	 	(iii)
    	in
    the case of delivery by nationally recognized overnight courier service, within one (1) Business Day from date of dispatch,

 

    	38

    	 

    

 

	 	provided
    that in each case where delivery by registered mail or courier occurs after 6pm on a Business Day or on a day which is not
    a Business Day, service shall be deemed to occur at 9am on the next following Business Day. 
	 	 
	10.2	The
    addressees of the Parties for the purpose of Section 10.1 are as follows:
	 	 

 

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

 

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

 

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

 

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

 

with
copies to: 

 

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

 

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

 

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

 

    	39

    	 

    

 

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

 

	11.	MISCELLANEOUS
	 	 
	11.1	Entire
    Agreement. This Agreement, including all the Exhibits, sets forth the entire understanding of the Parties with respect
    to the subject matter hereof and cancels and supersedes all previous communications, representations or understandings, and
    agreements, whether oral or written, between the Parties relating to the subject matter hereof including the Prior Confidentiality
    Agreement. Information disclosed under the Prior Confidentiality Agreement shall be deemed to be Confidential Information
    disclosed under this Agreement and subject to the same obligations of confidentiality and use as other Confidential Information
    disclosed hereunder. 
	 	 
	11.2	Amendment.
    No modification or amendment of any provision of this Agreement shall be valid or effective unless made in writing and signed
    by duly authorized officers of each Party.
	 	 
	11.3	Assignment.
    Neither Party may assign, transfer, charge or otherwise encumber this Agreement or any right, benefit or interest under it,
    nor transfer it without the prior written consent of the other Party provided that a Party may assign this Agreement to any
    Affiliate or to any successor in interest by way of merger, acquisition or sale of all or substantially all of its assets
    to which this Agreement relates, provided that such successor agrees in writing to be bound by the terms of this Agreement
    as if it were the assigning Party. Each Party agrees that, notwithstanding any provisions of this Agreement to the contrary,
    if this Agreement is assigned by a Party in connection with a merger, acquisition or sale of all or substantially all of its
    assets, such assignment shall not provide the non-assigning Party with rights or access to any intellectual property or technology
    of the acquirer of the assigning Party beyond that which is specifically contemplated in this Agreement. This Agreement shall
    be binding upon the successors and permitted assigns of the Parties. Any assignment not in accordance with this Section 11.3
    shall be void.
	 	 
	11.4	Governing
    Law. This Agreement shall be governed by and construed under the laws of the State of Delaware, without regard to conflict
    of law principles. The provisions of the United Nations Convention on Contracts for the International Sale of Goods the 1974
    Convention on the Limitation Period in the International Sale of Goods, as amended by that certain Protocol, done at Vienna
    on April 11, 1980 shall not apply to the Transaction Agreements or any subject matter hereof or thereof.
	 	 
	11.5	Severability.
    If any of the provisions of this Agreement are held to be void or unenforceable by a court of competent jurisdiction, then
    such void or unenforceable provisions shall be replaced by valid and enforceable provisions which will achieve as far as possible
    the economic business intentions of the Parties. However, the remainder of this Agreement will remain in full force and effect,
    provided that the material interests of the Parties are not affected i.e., the Parties would presumably have concluded this
    Agreement without the unenforceable provisions.
	 	 
	11.6	Waiver.
    A waiver of any default, breach or non-compliance under this Agreement is not effective unless signed by the Party granting
    such waiver. No waiver will be inferred from or implied by any failure to act or delay in acting by a Party in respect of
    any default, breach, non-observance or by anything done or omitted to be done by the other Party. The waiver by a Party of
    any default, breach or non-compliance under this Agreement will not operate as a waiver of that Party’s rights under
    this Agreement in respect of any continuing or subsequent default, breach or non-compliance.

 

    	40

    	 

    

 

	11.7	Damages
    Limitation. EXCEPT WITH RESPECT TO THEIR RESPECTIVE INDEMNIFICATION OBLIGATIONS UNDER SECTIONS 9.2 AND 9.3 OF THIS AGREEMENT,
    IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY UNDER OR WITH RESPECT TO THIS AGREEMENT, OR ANY OTHER AGREEMENT
    OR INSTRUMENT CONTEMPLATED HEREBY, FOR ANY INDIRECT, INCIDENTAL, EXEMPLARY, SPECIAL, OR CONSEQUENTIAL DAMAGES, INCLUDING BUT
    NOT LIMITED TO LOSS OF PROFITS OR BUSINESS INTERRUPTION, OR PUNITIVE DAMAGES.
	 	 
	11.8	Expenses.
    Except as otherwise provided in this Agreement, each Party hereto shall pay its own expenses and costs incidental to the preparation
    of this Agreement and to the consummation of the transactions contemplated hereby, including the fees for any business, legal
    or regulatory counsel.
	 	 
	11.9	Relationship
    of the Parties. Neither Party shall be deemed an agent or representative of the other Party for any purpose, and this
    Agreement shall not create or establish an agency. Except as may be specifically provided herein, neither Party shall have
    any right, power, or authority, nor shall they represent themselves as having authority to assume, create or incur any expense,
    liability or obligation, express or implied, on behalf of the other Party, or otherwise act as an agent for the other Party
    for any purpose. This Agreement does not, is not intended to, and shall not be construed to, establish or create an employment,
    agency, partnership, joint venture or any other legal arrangement that would impose liability upon one Party for the act or
    failure to act of the other Party. 
	 	 
	11.10	No
    Third Party Beneficiaries. This Agreement is neither expressly nor impliedly made for the benefit of any entity other
    than the Parties, and neither any Third Party nor any Affiliate shall have any claim against either Party on the basis of
    this Agreement.
	 	 
	11.11	Language.
    This Agreement has been drafted in the English language, and the English language shall control its interpretation. Any translation
    shall be for convenience purposes only and shall not be legally binding.
	 	 
	11.12	Interpretation.
    The Parties agree that the terms and conditions of this Agreement are the result of negotiations between the Parties and that
    this Agreement shall not be construed in favour of or against either Party by reason of the extent to which such a Party participated
    in the drafting of this Agreement.
	 	 
	11.13	Descriptive
    Headings. The descriptive headings of this Agreement are for convenience only and shall be of no force or effect in construing
    or interpreting any of the provisions of this Agreement.
	 	 
	11.14	Counterparts.
    The Parties shall execute this Agreement in two (2) counterparts, either of which the Parties shall deem an original, but
    which together shall constitute one and the same instrument. Counterparts may be signed and delivered by facsimile or PDF
    file, each of which shall be binding when received by the applicable Party.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	41

    	 

    

 

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

 

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

 

    	42

    	 

    

 

	Exhibits:	 

                                                                                                                                                       
	 

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

 

    	43

    	 

    

 

Exhibit
1

 

Teplizumab

 
 

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

 

Amino
Acid Sequence:

 

Light
Chain

 

[****]

 

Heavy
Chain

 

[****]

 

    	44

    	 

    

 

Exhibit
2

 

Product
Patents

 

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

 

    	45

    	 

    

 

Exhibit
3

 

Assumed
Contracts

 

 

	 1. 	 The
    Tolerance APA 
	   	   
	 2. 	 Assignment
    and License Agreement effective April 11, 2005 between Janssen Pharmaceuticals, Inc. (successor interest to Centocor, Inc.)
    and Seller (as successor interest to Tolerance Therapeutics, Inc.) 
	   	   
	 3. 	 Patent
    License Agreement effective May 10, 2005 between Janssen Pharmaceuticals, Inc. (successor in interest to Centocor, Inc. which
    is successor in interest to Ortho-McNeil Pharmaceutical, Inc.) and Seller 
	   	   
	 4. 	 License
    Agreement effective August 26, 2016 by and between UCB Pharma SA (as successor in interest to Celltech Ltd) and Seller 
	   	   
	 5. 	 License
    Agreement effective December 24, 2015 between Lonza Sales AG and Seller 
	   	   
	 6. 	 The
    Eli Lilly Agreement 
	   	   
	 7. 	 Extramural
    Clinical Trial Agreement effective as of December 21, 2009 as amended on August 30, 2011 and amended and restated on February
    9, 2014 between the National Institute of Digestive and Diabetes and Kidney Diseases and MacroGenics 
	   	   
	 8. 	 Transfer
    of Regulatory Obligations effective as of January 11, 2010 between the National Institute of Digestive and Diabetes and Kidney
    Diseases and Seller 
	   	   
	 9. 	 Clinical
    Monitoring and Travel Agreement effective after August 20, 2010 between the University of South Florida and Seller 
	   	   
	 10. 	 Technical
    Agreement effective as of December 16, 2015 between Biotec Services International, University of South Florida and Seller 
	   	   
	 11. 	 Material
    Transfer Agreement effective as March 23, 2017 by Yale University and Seller 
	   	   
	 12. 	 The
    Intrexon Agreement 
	   	   
	 13. 	 Quality
    Agreement effective April 6, 2018 between Intrexon T1D Partners LLC and Seller 

 

    	46

    	 

    

 

Exhibit
4

Development
Plan

 

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

 

[****]

 

    	47

    	 

    

 

Exhibit
5

 

Disclosure
Schedules

 

[****]

 

    	48

    	 

    

 

Exhibit
6

 

Bill
of Sale and General Assignment Agreement

 

BILL
OF SALE AND GENERAL ASSIGNMENT AGREEMENT

 

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

 

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

 

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

 

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

 

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

 

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

 

    	49

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

[SIGNATURE
PAGE FOLLOWS]

 

    	50

    	 

    

 

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

 

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

 

    	51

    	 

    

 

Exhibit
7

 

Patent
Assignment Agreement

 

PATENT
ASSIGNMENT AGREEMENT

 

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

 

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

 

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

 

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

 

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

 

    	52

    	 

    

 

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

 

[SIGNATURE
PAGE FOLLOWS]

 

    	53

    	 

    

 

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

 

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

 

	STATE
    OF______________	}	
	 	}	ss:
	COUNTY
    OF __________	}	 

 

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

 

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

 

    	54

    	 

    

 

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

 

 

	STATE
    OF______________	}	
	 	}	ss:
	COUNTY
    OF __________	}	 

 

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

 

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

 

    	55

    	 

    

 

Schedule
A

 

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

 

    	56

    	 

    

 

Exhibit
8

 

Transferred
Documentation and Biological and Chemical Materials and Reagents

 

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

 

Documentation

 

[****] 

 

    	57

    	 

    

 

Exhibit
9

 

Form
of Transfer Letter

 

[****]

 

	ATTN:	[****]

 

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

 

Dear
Dr. [****]:

 

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

 

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

 

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

Provention
Bio

<insert
address>

 

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

<insert
Provention Bio’s Regulatory Authorized Sponsor>

<insert
address, phone number and email address>

 

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

 

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

 

Sincerely,

[See
appended electronic signature page.]

 

[****]

 

    	58

    	 

    

 

Exhibit
10

 

Form
of Warrant

 

Warrant
Number ____

 

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

 

Warrant
to Purchase

Shares
of

Common
Stock

As
Herein Described

 

May
__, 2018

 

WARRANT
TO PURCHASE COMMON STOCK OF

 

PROVENTION
BIO, INC.

 

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

 

    	59

    	 

    

 

1.
Exercise and Payment; Exchange.

 

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

 

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

 

	 	X	=	Y
    (A – B)	 
	 	 	 	A	 

 

Where:

 

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

 

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

 

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

 

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

 

    	60

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	63

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

[Signature
page follows.]

 

    	64

    	 

    

 

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

 

	 	PROVENTION
    BIO, INC.
	 	 	 
	 	By:	 
	 	Name:	             
	 	Title:	 

 

    	65

    	 

    

 

FORM
OF EXERCISE

 

To
be executed upon exercise of Warrant

(please print)

 

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

 

Representations
of the undersigned.

 

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

 

	 	[  ]
    YES	 	[  ]
    NO

 

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

 

	 	[  ]
    YES	 	[  ]
    NO

 

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

 

	 	[  ]
    YES	 	[  ]
    NO

 

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

 

    	66

    	 

    

 

	 	[  ]	1.
    The undersigned is a natural person whose present net worth (or whose joint net worth with his or her spouse), excluding the
    value of the undersigned’s primary residence, exceeds $1,000,000. For purposes of calculating the undersigned’s
    present net worth, the undersigned has included the following as liabilities: (i) any indebtedness that is secured by the
    undersigned’s primary residence in excess of the estimated fair market value of the undersigned’s primary residence
    at the time of the sale of the shares, and (ii) any incremental debt secured by the undersigned’s primary residence
    that was incurred in the 60 days before the sale of the shares, other than as a result of the acquisition of the undersigned’s
    primary residence.
	 	 	 
	 	[  ]	2.
    The undersigned is a natural person who had individual income in excess of $200,000 in each of the last two years or joint
    income with the undersigned’s spouse in excess of $300,000 during such two years, and the undersigned reasonably expects
    to have the same income level in the current year.
	 	 	 
	 	[  ]	3.
    The undersigned is an officer or director of the Company.
	 	 	 
	 	[  ]	4.
    The undersigned is a corporation or partnership not formed for the specific purpose of acquiring the securities offered, with
    total assets in excess of $5,000,000.
	 	 	 
	 	[  ]	5.
    The undersigned is a trust with total assets in excess of $5,000,000 whose purchase is directed by a person with such knowledge
    and experience in financial and business matters that such person is capable of evaluating the merits and risks of the prospective
    investment.
	 	 	 
	 	[  ]	6.
    The undersigned is an entity, all of whose equity owners are accredited investors under paragraphs 1, 2, 3, 4 or 5, above.

 

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

 

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

 

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

 

    	67

    	 

    

 

Exhibit
11

 

Press
Release

 

    	68

    	 

    

 

Exhibit
12

 

Form
of Lock-Up Agreement

 

Provention
Bio, Inc.

Lock-Up
AGREEMENT

 

May
__, 2018

MDB
Capital Group, Inc.

2425
Cedar Springs Road

Dallas,
Texas 75201

 

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

 

Ladies
and Gentlemen:

 

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

 

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

 

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

 

    	69

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	70

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

    	71

    	 

    

 

Very
truly yours,

	 	_____________________________
	      	Exact
    Name of Shareholder
	      	______________________________
	      	Authorized
    Signature
	      	______________________________
	      	Title

 

Agreed
to and Acknowledged:

 

MDB
CAPITAL GROUP, LLC

 

	By:
    	

                                                                                 
	 
	Name:	 	 
	Title:	 	 

 

    	72

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