Document:

Exhibit

Exhibit 10.4

TRI POINTE GROUP, INC. 
2013 LONG-TERM INCENTIVE PLAN

PERFORMANCE-BASED RESTRICTED STOCK UNIT AWARD AGREEMENT
REVENUES PERFORMANCE MEASURE
(COMPANY/DIVISION PRESIDENTS FORM for 2020)

TRI Pointe Group, Inc., a Delaware corporation (the “Company”), hereby grants to [NAME] (the “Holder”) as of [DATE] (the “Grant Date”), pursuant to the terms and conditions of the TRI Pointe Group, Inc. Amended and Restated 2013 Long-Term Incentive Plan, as amended (the “Plan”), an award of performance-based restricted stock units (the “Award” and the restricted stock units granted pursuant to this Agreement, the “Award Units”) with respect to a maximum of [###] shares (with [###] shares referred to as the “Target Award”) of the Company’s Common Stock, par value $0.01 per share (“Common Stock”), upon and subject to the restrictions, terms, and conditions set forth in the Plan and this agreement (the “Agreement”). Capitalized terms used in this Agreement and not defined herein or set forth in Attachment A have the respective meanings given to them in the Plan.
1.Award Subject to Acceptance of Agreement. The Award shall be null and void unless the Holder accepts this Agreement by executing it in the space provided below and returning such original execution copy to the Company, or by approving this Agreement by electronic means in a manner that has been approved by the Company.
2.Rights as a Stockholder. Each Award Unit shall represent the Holder’s right to receive one share of the Company’s Common Stock if and to the extent that such Award Unit becomes vested pursuant to the terms and conditions of this Agreement and the Plan. The Holder shall not be entitled to any privileges of ownership with respect to the shares of Common Stock subject to the Award unless and until, and only to the extent, such shares become vested pursuant to Section 3 hereof and the Holder becomes a stockholder of record with respect to such shares. As of each date on which the Company pays a cash dividend to record owners of shares of Common Stock (a “Dividend Date”), then the number of Award Units and shares subject to the Award shall increase by (i) the product of the total number of shares subject to the Award immediately prior to such Dividend Date multiplied by the dollar amount of the cash dividend paid per share of Common Stock by the Company on such Dividend Date, divided by (ii) the Fair Market Value of a share of Common Stock on such Dividend Date. Any such additional Award Units and shares shall be subject to the same restrictions, vesting conditions, and payment terms set forth herein as the Award Units and shares to which they relate.
3.Performance Period and Vesting.
3.1.    Performance-Based Vesting Conditions. The Award granted pursuant to this Agreement shall constitute a Performance Award (as defined in the Plan). Except as otherwise provided in this Section 3, if and to the extent that all or a portion of the Award (as determined in accordance with the provisions of Attachment B) shall vest on the Vesting Date as a result of the Organizational Unit satisfying the Performance Measures set forth in Attachment B to this Agreement over the Performance Period, the Holder shall become vested in the Award Units, or the applicable portion thereof, if any, on the Vesting Date, provided that the Holder does not incur a Separation from Service before the Vesting Date. As used herein, (i) the term “Performance Period” shall mean the three-year period beginning on [DATE] and ending on [DATE] and (ii) the term “Vesting Date” shall mean [DATE]. 
3.2.    Reserved
3.3.    Separation from Service; Change in Position; Failure to Satisfy Performance Measures.
3.3.1.    Except as otherwise provided in the Plan and this Agreement, if the Holder incurs a Separation from Service before the Vesting Date for any reason, then the entire Award shall be immediately forfeited by the Holder for no consideration and cancelled, effective as of the date of the Holder’s Separation from Service.

3.3.2.    Notwithstanding anything in the Plan to the contrary, in the event that the Holder ceases to serve in the position the Holder has with the Organizational Unit on the Grant Date due to the Holder assuming or being appointed to another position with the Organizational Unit, the Company, any Subsidiary or any affiliate of the Company at any time before the Vesting Date, the Holder shall cease to earn any additional portion of the Award from and after the date of such cessation and, subject to the Holder not incurring a Separation from Service prior to the Vesting Date, shall, on the Vesting Date, only be eligible to earn a pro-rated portion of the Award Units that would have otherwise vested based upon actual performance through the last day of the Performance Period. Such pro-rated portion of the Award Units will be determined by multiplying the number of Award Units that would have otherwise vested by a fraction the numerator of which is the number of days in the Performance Period that elapsed prior to the date the Holder ceases to serve in the position the Holder has with the Organizational Unit on the Grant Date and the denominator of which is the total number of days in the Performance Period.  In calculating the pro-rated portion of the Award Units earned pursuant to the foregoing sentence, if the number of shares earned includes a fractional number, the number of shares earned shall be rounded down to the nearest whole number.
3.3.3.    If the Holder does not incur a Separation from Service before the Vesting Date, then any Award Units in which the Holder does not become vested pursuant to the Performance Measures set forth in Attachment B shall be immediately forfeited by the Holder for no consideration and cancelled, effective as of the last day of the Performance Period.
4.Delivery of Certificates. Subject to Section 6, as soon as practicable after the vesting of Award Units, in whole or in part, but in no event later than March 15 of the calendar year immediately following the year in which Award Units become vested, the Company shall (i) deliver or cause to be delivered one or more certificates issued in the Holder’s name (or such other name as is acceptable to the Company and designated in writing by the Holder), or (ii) issue in book entry form registered in the name of the Holder (or such other name as is acceptable to the Company and designated in writing by the Holder) a written or electronic notice or statement representing the number of vested shares represented by such vested Award Units. The Company shall pay all original issue or transfer taxes and all fees and expenses incident to such delivery, except as otherwise provided in Section 6. Prior to the issuance to the Holder of the shares of Common Stock subject to the Award, the Holder shall have no direct or secured claim in any specific assets of the Company or in such shares of Common Stock, and will have the status of a general unsecured creditor of the Company.
5.Transfer Restrictions and Investment Representation.
5.1.     Nontransferability of Award. The Award may not be transferred by the Holder other than by will or the laws of descent and distribution, pursuant to the designation of one or more beneficiaries on the form prescribed by the Company, a trust or entity established by the Holder for estate planning purposes, or a charitable organization designated by the Holder or pursuant to a qualified domestic relations order, in each case, without consideration. Except to the extent permitted by the foregoing sentence, the Award and the Award Units may not be sold, transferred, assigned, pledged, hypothecated, encumbered, or otherwise disposed of (whether by operation of law or otherwise) or be subject to execution, attachment, or similar process. Upon any attempt to so sell, transfer, assign, pledge, hypothecate, encumber, or otherwise dispose of the Award or the Award Units in violation of this Agreement or the Plan, the Award and the Award Units and all rights hereunder shall immediately become null and void.
5.2.    Investment Representation. The Holder hereby represents and covenants that (a) any share of Common Stock acquired upon the vesting of the Award Units will be acquired for investment and not with a view to the distribution thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), unless such acquisition has been registered under the Securities Act and any applicable state securities laws; (b) any subsequent sale of any such shares shall be made either pursuant to an effective registration statement under the Securities Act and any applicable state securities laws, or pursuant to an exemption from registration under the Securities Act and such state securities laws; and (c) if requested by the Company, the Holder shall submit a written statement, in form satisfactory to the Company, to the effect that such representation (x) is true and correct as of the date of vesting of any shares of Common Stock hereunder or (y) is true and correct as of the date of any sale of any such share, as applicable. As a further condition precedent to the delivery to the Holder of any shares of Common Stock subject to the Award, the Holder shall comply with all regulations and requirements of any regulatory authority having control of or 

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supervision over the issuance or delivery of the shares and, in connection therewith, shall execute any documents which the Board shall in its sole discretion deem necessary or advisable.
5.3.    Additional Restrictions. If the Holder is, or becomes, a person subject to any policy of the Company providing for recoupment of performance based compensation in the event of a restatement of the Company’s financial results, then Holder agrees the Award and the Award Units (and any shares of Common Stock issued with respect thereto) will be subject to such recoupment policy. The Company may impose, and Holder agrees to be bound by, such restrictions, conditions, or limitations as the Company determines appropriate as to the timing and manner of any resales or other transfers of any Award Units (and any shares of Common Stock issued with respect thereto) as to which transferability restrictions have lapsed as provided under this Agreement, including without limitation (a) restrictions under an insider trading or other Company policy, (b) restrictions designed to delay and/or coordinate the timing and manner of sales by Holder and others following a public offering of the Company’s securities, (c) stock ownership or holding requirements, and (d) the required use of a specified brokerage firm for such resales or other transfers.
6.Additional Terms and Conditions of Award.
6.1.    Withholding Taxes. The Company shall have the right to require, prior to the issuance or delivery of any shares of Common Stock upon the vesting of the Award Units, payment by the Holder of such Award of any federal, state, local or other taxes which may be required to be withheld or paid in connection with such Award (the “Required Tax Payments”). The Holder may satisfy his or her obligation to advance the Required Tax Payments by any of the following means: (1) a cash payment to the Company, (2) delivery (either actual delivery or by attestation procedures established by the Company) to the Company of previously owned whole shares of Common Stock having an aggregate Fair Market Value, determined as of the Tax Date, equal to the Required Tax Payments, (3) authorizing the Company to withhold up to the maximum required number of shares of Common Stock which would otherwise be delivered or an amount of cash which would otherwise be payable to the Holder having an aggregate Fair Market Value, determined as of the Tax Date, equal to the Required Tax Payments, or (4) any combination of (1), (2), and (3). To the extent applicable, the Holder may satisfy his or her withholding obligation only with shares that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements.
6.2.    Adjustment. In the event of any equity restructuring (within the meaning of Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation-Stock Compensation) that causes the per share value of shares of Common Stock to change, such as a stock dividend, stock split, spinoff, rights offering, or recapitalization through an extraordinary dividend, the terms of this Award, including the number and class of securities subject hereto, shall be appropriately adjusted by the Committee. In the event of any other change in corporate capitalization, including a merger, consolidation, reorganization, or partial or complete liquidation of the Company, such equitable adjustments described in the foregoing sentence may be made as determined to be appropriate and equitable by the Committee (or, if the Company is not the surviving corporation in any such transaction, the board of directors of the surviving corporation) to prevent dilution or enlargement of rights of participants. The decision of the Committee regarding any such adjustment shall be final, binding, and conclusive.
6.3.    Compliance with Applicable Law. The Award is subject to the condition that if the listing, registration, or qualification of the shares of Common Stock subject to the Award upon any securities exchange or under any law, or the consent or approval of any governmental body, or the taking of any other action is necessary or desirable as a condition of, or in connection with, the delivery of shares hereunder, the shares of Common Stock subject to the Award shall not be delivered, in whole or in part, unless such listing, registration, qualification, consent, approval, or other action shall have been effected or obtained, free of any conditions not acceptable to the Company. The Company agrees to use reasonable efforts to effect or obtain any such listing, registration, qualification, consent, approval, or other action.
6.4.    Award Confers No Rights to Continued Employment or Service. In no event shall the granting of the Award or its acceptance by the Holder, or any provision of this Agreement or the Plan, give or be deemed to give the Holder any right to continued employment by or service to the Company, any Subsidiary, or any affiliate of the Company or affect in any manner the right of the Company, any Subsidiary, or any affiliate of the Company to terminate the employment or service of any person at any time.

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6.5.    Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by the Holder or by the Company forthwith to the Committee for review. The resolution of such a dispute by the Committee shall be final and binding on all parties.
6.6.    Successors and Assigns. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon the Holder and his or her heirs, executors, administrators, successors, and assigns.
6.7.    Notices. All notices, requests or other communications provided for in this Agreement shall be made, if to the Company, to TRI Pointe Group, Inc., Attn: Chief Financial Officer, 19540 Jamboree Road, Suite 300, Irvine, California 92612, and if to the Holder, to the last known mailing address of the Holder contained in the records of the Company. All notices, requests or other communications provided for in this Agreement shall be made in writing either (a) by personal delivery, (b) by facsimile or electronic mail with confirmation of receipt, (c) by mailing in the United States mails, or (d) by express courier service. The notice, request, or other communication shall be deemed to be received upon personal delivery, upon confirmation of receipt of facsimile or electronic mail transmission, or upon receipt by the party entitled thereto if by United States mail or express courier service; provided, however, that if a notice, request, or other communication sent to the Company is not received during regular business hours, it shall be deemed to be received on the next succeeding business day of the Company.
6.8.    Governing Law. This Agreement, the Award, and all determinations made and actions taken pursuant hereto and thereto, to the extent not governed by the laws of the United States, shall be governed by the laws of the State of Delaware and construed in accordance therewith without giving effect to principles of conflicts of laws.
6.9.    Agreement Subject to the Plan. This Agreement is subject to the provisions of the Plan, including without limitation, Section 4.2 relating to terms of Performance Awards, and shall be interpreted in accordance therewith. To the extent of any inconsistency between the terms of the Plan and the terms of this Agreement, the terms of the Plan shall control. The Holder hereby acknowledges receipt of a copy of the Plan.
6.10.    Entire Agreement. The Plan is incorporated herein by reference. This Agreement and the Plan constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Holder with respect to the subject matter hereof, and may not be modified adversely to the Holder’s interest except by means of a writing signed by the Company and the Holder.
6.11.    Partial Invalidity. The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof and this Agreement shall be construed in all respects as if such invalid or unenforceable provision was omitted.
6.12.    Amendment and Waiver. The provisions of this Agreement may be amended or waived only by the written agreement of the Company and the Holder, and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall affect the validity, binding effect, or enforceability of this Agreement.
6.13.    Counterparts. This Agreement may be executed in two counterparts each of which shall be deemed an original and both of which together shall constitute one and the same instrument.
6.14.    Section 409A. This Agreement will be interpreted in accordance with Section 409A of the Code, to the extent applicable, including without limitation any Treasury Regulations or other Department of Treasury guidance that may be issued or amended after the date hereof, and will not be amended or modified in any manner that would cause this Agreement to violate the requirements of Section 409A. If, following the date hereof, the Committee determines that the Award may be subject to Section 409A, including such Department of Treasury guidance as may be issued after the date hereof, the Committee may, in its discretion, adopt such amendments to this Agreement or adopt such other policies and procedures (including amendments, policies, and procedures with retroactive effect), or take any other actions, as the 

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Committee determines are necessary or appropriate to (i) exempt the Award from Section 409A and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (ii) comply with the requirements of Section 409A. Notwithstanding anything to the contrary in the Plan or in this Agreement, the Holder agrees that the Holder (or the Holder’s estate or permitted beneficiary(ies)) will be solely responsible for the satisfaction of all taxes, interest, and penalties that may be imposed on the Holder or for the Holder’s account in connection with this Award (including, without limitation, any taxes, interest, and penalties under Section 409A), and neither the Company nor its Affiliates will have any obligation to reimburse, indemnify, or otherwise hold the Holder (or the Holder’s estate or permitted beneficiary(ies)) harmless from any or all of such taxes, interest, or penalties.
[Signature page follows.]

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TRI POINTE GROUP, INC.,
a Delaware corporation
By: __________________________________
Name: ________________________________
Title: _________________________________

Accepted this ___ day of [MONTH], [YEAR]
______________________________________
[NAME]

Attachment A
DEFINITIONS
For purpose of this Agreement, the following terms shall have the meanings set forth below: 
“Adjusted Revenue” means the home sales revenue of the Organizational Unit, as determined by the Committee for the relevant periods, after such adjustments thereto as the Committee deems appropriate in the Committee’s sole discretion (i) to exclude the effect of extraordinary, unusual, and/or nonrecurring items, including revenues attributable to non-controlling interests not originally forecast in the Cumulative Revenue Plan, and changes in applicable accounting standards and (ii) to reflect such other factors as the Committee deems appropriate to fairly reflect revenue. 
“Cumulative Revenue” means the sum of the Adjusted Revenue over the Performance Period for each period in which Adjusted Revenue is measured pursuant to the above definition of Adjusted Revenue. 
“Cumulative Revenue Plan” means $[_______]. 
“Organizational Unit” means [DIVISION].
“Performance Measures” means the Performance Measures set forth on Attachment B to this Agreement.

Attachment B
PERFORMANCE MEASURES
Cumulative Revenue Performance Table
	
			
	Performance Level
	Cumulative Revenue
	Revenue Performance Rating

	Maximum
	[__]% of Cumulative Revenue and above
	[__]%

	Target
	[__]% of Cumulative Revenue Plan
	[__]%

	Threshold
	[__]% of Cumulative Revenue Plan
	[__]%

	Below Threshold
	Below [__]% of Cumulative Revenue Plan
	0%

The percentage of the Award that is eligible to vest if the Cumulative Revenue for the Performance Period is between the “Threshold” and “Target” or “Target” and “Maximum” performance levels, as applicable, shall be determined by straight line interpolation.     
The Committee shall determine the number of Award Units that shall vest by the following formula: the Target Award x Revenue Performance Rating, rounded down to the nearest whole share.edsa_ex101

  Exhibit 10.1

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT
BECAUSE IT IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE
HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.

 

	
 

	
 

	

License Agreement

 

	
 

	
 

	
 

	

dated
April 17, 2020

 

	
 

	
 

	

between

 

	
 

	
 

	
 

	

NovImmune SA

Chemin
des Aulx 14, 1228 Plan-les-Ouates, Switzerland

 

	

(hereinafter
NI)

 

	
 

	
 

	

and

	
 

	
 

	
 

	

Edesa Biotech Research, Inc.

100 Spy
Court, Markham, Ontario, Canada, L3R 5H6]

	

(hereinafter
LICENSEE)

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

	

License
Agreement between NovImmune and Edesa Biotech Research

	
 
1|14

  

 

 

 

Table
of Contents

 

	
1.

	
DEFINITIONS

	
 5

	
 

	
 

	
 

	
2.

	
LICENSE

	
 5

	
 

	
2.1 Construct License

	
 5

	
 

	
2.2 Retained Rights

	
 5

	
 

	
 

	
 

	
3.

	
COST AND RISK; SPECIAL INDEMNITY

	
 6

	
 

	
 

	
 

	
4.

	
LICENSE FEES

	
 6

	
 

	
4.1 Upfront Payment

	
 6

	
 

	
4.2 Royalties

	
 6

	
 

	
4.3 [__] - Milestone Payments

	
 7

	
 

	
4.4 [__] - Milestone Payments

	
 7

	
 

	
4.5 Currency Conversion

	
 8

	
 

	
4.6 Reporting

	
 8

	
 

	
4.7 Payment

	
 8

	
 

	
4.8 Taxation

	
 9

	
 

	
4.9 Right to Purchase

	
 9

	
 

	
 

	
 

	
5.

	
BOOKS AND RECORDS; AUDITS

	
 9

	
 

	
5.1 Procudures

	
 9

	
 

	
5.2 Cost of Audits

	
 10

	
 

	
5.3 Retention Period

	
 10

	
 

	
 

	
 

	
6.

	
INTELLECTUAL PROPERTY

	
 10

	
 

	
6.1 Allocation of IP

	
 10

	
 

	
6.2 IP Responsibility Prosecution

	
 10

	
 

	
6.3 Third Party Infringement

	
 11

	
 

	
6.4 Infringement of Third Party's IP

	
 11

	
 

	
6.5 Transfer of the IND

	
 11

	
 

	
 

	
 

	
7.

	
REPRESENTATIONS AND WARRANTIES;
INDEMNITIES

	
 11

	
 

	
7.1 Representations and Warranties

	
 11

	
 

	
7.2 Indemnities

	
 12

	
 

	
7.3 Exclusions and Limitations

	
 12

	
 

	
 

	
 

	
8.

	
CONFIDENTIALITY AND PUBLIC
ANNOUNCEMENTS

	
 12

	
 

	
 

	
 

	
9.

	
TERM AND TERMINATION

	
 12

	
 

	
9.1 Term

	
 12

	
 

	
9.2 Termination for Cause

	
 12

	
 

	
9.3 Effects of Termination

	
 13

	
License Agreement
between NovImmune and Edesa Biotech Research

	
  2|14

 

 

 

	
10.

	
FINAL PROVISIONS

	
13

	
 

	
10.1 Entire Agreement

	
13

	
 

	
10.2 Written Form

	
13

	
 

	
10.3 Severability

	
13

	
 

	
10.4 Assignment

	
13

	
 

	
10.5 Independent Contractor

	
13

	
 

	
10.6 Further Assurances

	
13

	
 

	
10.7 Notices

	
14

	
 

	
10.8 Force Majeure

	
14

	
 

	
10.9 Waiver

	
14

	
 

	
10.10 Annexes

	
14

	
 

	
10.11 Governing Law

	
14

	
 

	
10.12 Arbitration

	
14

 

 

 

 

 

	

License
Agreement between NovImmune and Edesa Biotech Research

	
 
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14

  

 

 

 

Table of Annexes

 

	

Number of Annex

	

Name of Annex

	

Annex
1

	

Definitions

	

Annex 2.1(b)

	

Licensed
Patents

	

Annex
3(c)

	

Development
Plan

	

Annex
4.1(a)

	

Preferred Share
Terms

	

Annex
4.1(b)

	

Securities Purchase
Agreement

 

	

License
Agreement between NovImmune and Edesa Biotech Research

	
 
4|
14

 

 

 

WHEREAS, NI has developed, generated and produced certain
monoclonal antibodies (the Monoclonal Antibodies) and NI owns IP
(as defined) in the Monoclonal Antibodies;

 

WHEREAS, LICENSEE is interested in the development and
commercialization of the Monoclonal Antibodies known as [___]
(Anti-TLR4) ([___]) and [___] (Anti-CXCL10) ([___]) (each a
Construct, jointly the
Constructs); [Nature of constructs omitted
as competitively sensitive information.]

 

WHEREAS, NI is willing to grant LICENSEE
the license rights necessary to do so;

 

WHEREAS, NI has an existing inventory of
[___], and the Parties (as defined) shall enter into a separate
supply agreement concurrently with the signing of this agreement
pursuant to which NI intends to supply to LICENSEE, and LICENSEE
intends to purchase from NI, certain amounts of [___];[Nature of constructs omitted
as competitively sensitive information.]

 

NOW, THEREFORE, in consideration of the
mutual covenants and obligations contained herein and intending to
be legally bound hereby, the Parties agree as follows:
 

1.1111.

DEFINITIONS

 

Capitalized
terms used in this Agreement (as defined) shall have the meanings
assigned to them in Annex 1.

  

2.

LICENSE

 

 

2.1
Construct
License

 

(a)

Subject to the
terms and conditions of this Agreement, NI agrees to grant and
hereby grants to LICENSEE an exclusive, worldwide license, with the
right to sublicense, to develop, test, register (including, without
limitation, to file and amend applications for, and to hold
marketing authorisations as well as regulatory approvals),
manufacture, contract manufacture, modify, market, sell, distribute
and promote the Constructs and Licensed Products (as defined) in
the Licensed Field (as defined) (the Construct License).

 

(b)

The Construct
License shall include rights to exploit: (i) the Licensed Patents
(as defined) and (ii) the Know-How (as defined) and other IP
controlled by NI as reasonably necessary to commercialize the
Constructs or either of them (the latter referred to as
“Other Licensed
IP”). 

 

(c)

For the avoidance
of doubt, LICENSEE shall have the right to appoint sub-distributors
and/or sub-contractors for, developing, marketing, testing, selling
and manufacturing of the Licensed Products.

 

(d)

To the extent
available and/or permissible in any given jurisdiction, LICENSEE
shall have the right to register the Construct License, and NI
shall support any of LICENSEE's filings to such end by issuing and
executing deeds and other documents required to perfect such
license registrations upon LICENSEE's due request.

 

2.2
Retained
Rights

 

Unless
expressly provided for in this Agreement, this Agreement does not
grant any right or license to a Party under any of the other
Party’s IP or to the IP of Third Parties (as defined).
Notwithstanding anything in this Agreement, NI shall be free to
make use of all Monoclonal- and Bispecific Antibodies that are not
subject to the Construct License.

 

 
	

License
Agreement between NovImmune and Edesa Biotech Research

	
 
5|
14

 

 

 

3.
COST AND RISK;
SPECIAL INDEMNITY

 

(a)

LICENSEE shall be
responsible at its own cost and risk for the research, development,
testing, registration, manufacture, use, marketing, distribution
and commercialization of the Constructs and Licensed Products and
to obtain all necessary licenses, rights and authorizations as
necessary, however, in accordance with the terms and conditions of
this Agreement.

 

(b)

Notwithstanding any
general liability and indemnity under this Agreement but subject to
the provisions of Section 7.3, LICENSEE
shall indemnify and hold NI and its Affiliates (as defined) and
each of their officers, directors, employees, agents and
representatives from and against any and all third party
liabilities, claims, demands, actions, suits, losses, damages,
costs, and expenses (including reasonable attorneys' fees) arising
out of or in connection with LICENSEE's and its sub-licensees' and
sub-contractors' actions and omissions in the course of the
research, development, testing, registration, making, use,
marketing, distribution and commercialization of the Constructs and
any of the Licensed Products.

 

(c)

LICENSEE will be
responsible for the development of the Constructs in accordance
with the plan set forth in Annex 3(c) (the Development Plan), including the
development targets (the Development Targets) referenced therein.
LICENSEE shall provide NI with progress updates in accordance with
the Development Plan by no later than sixty (60) days from the end
of each 6-month period following the Effective Date, for the first
two years of this Agreement and, thereafter, within sixty (60) days
following each twelve (12) month anniversary of the Effective Date.
The Parties acknowledge and agree the Development Plan is based on
the best estimation of goals and timelines at the time of execution
of this Agreement and may be amended by mutual agreement in writing
over the course of its implementation by LICENSEE. After the
submission by LICENSEE of a Development Plan update, the Parties
shall meet (in person or through other means) and work in good
faith to agree on an amendment and adjustment of the Development
Plan as reasonably needed.

 

4.
LICENSE
FEES

 

4.1
Upfront
Payment

 

Within
thirty (30) calendar days of the Effective Date (as defined),
LICENSEE shall pay to NI a non-refundable fee of USD 2,500,000 for
the Construct License (the "Upfront
Payment"). At the option of the LICENSEE, the Upfront
Payment will be paid in either cash or through the issuance,
assignment and transfer to NI of Series A-1 Preferred Shares in the
share capital of Edesa Biotech, Inc. in accordance with the terms
set out in Annexes 4.1(a) and 4.1(b), or a combination of cash payment and
Series A-1 Preferred Shares.

 

4.2

Royalties

 

LICENSEE
shall pay to NI tiered royalties on Net Sales (as defined) or, as
the case may be, Sublicensing Revenues of Licensed Products, each
on a Licensed Product-by-Licensed Product and country-by-county
basis as follows (the Royalty
Payments):

 

	

Commercialization

	

Royalty
Rate (%)

	

Net
Sales in countries, in which LICENSEE commercializes the Licensed
Products on its own (directly or through subsidiaries or
distributors)

	

[___]% of Net Sales

	

With
respect to countries, in which LICENSEE does not commercialize the
Licensed Products on its own but through sublicensing

	

[___]%
of Sublicensing Revenue

 

[Royalty
rates omitted as competitively sensitive
information.]

 

4.3

4.3     [___]
– Milestone Payments

 

	

License
Agreement between NovImmune and Edesa Biotech Research

	
 
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As
regards [___] and/or Licensed Products based on [___], upon
occurrence of following events (the Milestone Event), LICENSEE shall pay to
NI the following payments (the Milestone Payments):

 

	

Milestone
Event regarding [___]

	

Milestone
Payment

 

	

Dosing of the first patient into the first stage of a Phase II
Clinical Trial (as defined)

	

USD
[___]

	

Earlier
of either (i) dosing of the first patient into the second stage of
a Phase II Clinical Trial or
(ii) completion of the Phase II
Clinical Trial

	

USD
[___]

	

Dosing
the first patient in the initial Phase
III Clinical Trial (as defined)

	

USD
[___]

	

Submission
of BLA (as defined) to the FDA (as defined)

	

USD
[___]

	

Upon
submission of a BLA or equivalent in Europe

	

USD
[___]

	

Upon
submission of a BLA or equivalent in Japan

	

USD
[___]

	

Receipt
of first marketing authorization by FDA

	

USD
[___]

	

Receipt
of first marketing authorization in Europe

	

USD
[___]

	

Receipt
of first marketing authorization in Japan

	

USD
[___]

	

First
Commercial Sale (as defined) in the United States

	

USD
[___]

	

First
Commercial Sale in Europe

	

USD
[___]

	

First
Commercial Sale in Japan

	

USD
[___]

	

First
annual occurrence of global Net Sales of USD
50,000,000

	

USD
[___]

	

First
annual occurrence of global Net Sales of USD
100,000,000

	

USD
[___]

	

First
annual occurrence of global Net Sales of USD
250,000,000

	

USD
[___]

	

First
annual occurrence of global Net Sales of USD
500,000,000

	

USD
[___]

	

First
annual occurrence of global Net Sales of USD
1,000,000,000

	

USD
[___]

 

[Nature
of constructs and quantum of milestone payments omitted as
competitively sensitive information.]

 

4.4

4.4      [___]–
Milestone Payments

 

As
regards [___] and/or the Licensed Products based on [___], upon
occurrence of following Milestone Events, LICENSEE shall pay to NI
the following Milestone Payments:

 

	

Milestone
Event regarding [___]

	

Milestone
Payment

	

Dosing
the first patient in the initial Phase
III Clinical Trial

	

USD
[___]

	

Submission
of BLA to the FDA

	

USD
[___]

	

Upon
submission of a BLA or equivalent in Europe

	

USD
[___]

	

Upon
submission of a BLA or equivalent in Japan

	

USD
[___]

	

Receipt
of first marketing authorization by FDA

	

USD
[___]

	

Receipt
of first marketing authorization in Europe

	

USD
[___]

	

Receipt
of first marketing authorization in Japan

	

USD
[___]

	

First
Commercial Sale in the United States

	

USD
[___]

	

First
Commercial Sale in Europe

	

USD
[___]

	

First
Commercial Sale in Japan

	

USD
[___]

	

First
annual occurrence of global Net Sales of USD
50,000,000

	

USD
[___]

	

First
annual occurrence of global Net Sales of USD
100,000,000

	

USD
[___]

	

First
annual occurrence of global Net Sales of USD
250,000,000

	

USD
[___]

	

First
annual occurrence of global Net Sales of USD
500,000,000

	

USD
[___]

	

First
annual occurrence of global Net Sales of USD
1,000,000,000

	

USD
[___]

 

[Nature
of constructs and quantum of milestone payments omitted as
competitively sensitive information.]

 

	

License
Agreement between NovImmune and Edesa Biotech Research

	
 
7|
14

 

 

 

4.5
Currency
Conversion

 

(a)

Currency
conversions, if any, shall be made at the average rates of exchange
rates reported by Thomson Reuters or OANDA (or any other qualified
source that is acceptable and agreed upon by both Parties) for the
applicable Calendar Quarter (as defined).

 

(b)

All payments owed
under this Agreement shall be made in USD and by wire transfer to a
bank and account designated in writing by NI, unless otherwise
specified in writing by NI.

 

4.6

Reporting

 

(a)

Net Sales and
Sublicensing Revenues of Licensed Products and Royalty Payments and
Milestone Payments thereon in accordance with this Agreement shall
be calculated on a Licensed Product-by-Licensed Product and
country-by-country basis and reported for each Calendar Quarter
within forty-five (45) calendar days following the end of the
quarter.

 

(b)

Each quarterly
report shall include the following
pieces of information provided for each Licensed Products and each
country where sales have actually been made:

 

(i)

Licensed Product
and country of sales;

 

(ii)

gross sales and
sublicensing revenue in local currency;

 

(iii)

exchange rates used
in determining the amount of USD;

 

(iv)

gross sales and
sublicensing revenue in USD;

 

(v)

deductions from
sales and sublicensing revenue to calculate Net Sales and
Sublicensing Revenue pursuant to the definition of Net Sales and
Sublicensing Revenue; for the avoidance of doubt, the amount of
each deduction listed in the definition of Net Sales shall be
detailed;

 

(vi)

Royalty rate
applied to calculate Royalty Payments;

 

(vii)

Net Sales and
Sublicensing Revenue in USD to be divided into (i) Net Sales
relating to Licensed Products based on [___] and (ii) Net Sales
relating to Licensed Products based on [___]; [Nature of constructs omitted as competitively
sensitive information.];

 

(viii)

gross Royalty
Payments in USD;

 

(ix)

withholding taxes,
if any, required by law to be deducted from gross Royalty Payments
or Milestone Payments;

 

(x)

net Royalty
Payments actually owed and to be paid to NI.

 

4.7

Payment

 

(a)

Based on the
quarterly reports received, and further upon the occurrence of any
Milestone Event, NI will provide to LICENSEE correct and duly
detailed invoices, and invoices shall be paid within thirty (30)
days of receipt.

 

(b)

In the event that
any payment due hereunder is not made when due, the payment shall
accrue interest from the due date at the rate of five percent (5%)
per annum The payment of such interest shall not limit NI from
exercising any other rights it may have because of non-payment or
late payment.

 
	

License
Agreement between NovImmune and Edesa Biotech Research

	
 
8|
14

 

 

 

4.8

Taxation

 

(a)

All fees and
royalties are being understood and agreed as net of taxes such as
VAT (as defined) or other levies. To the extent any fees and
royalties are subject to taxation in any jurisdiction, LICENSEE
agrees to bear such taxes.

 

(b)

All fees and
royalties shall be paid free and clear of all deductions and
withholdings whatsoever, unless the deduction or withholding is
required by law or any governmental agency. If any deduction or
withholding is required by law, LICENSEE shall pay to NI such sum
as will, after the deduction or withholding has been made, leave NI
with the same amount as it would have been entitled to receive in
the absence of any such requirement to make a deduction or
withholding.

 

(c)

The Parties shall
cooperate and exercise their Commercially Reasonable Efforts (as
defined) to ensure that any withholding taxes imposed on LICENSEE
are reduced as far as possible under the provisions of the
applicable double tax treaty. LICENSEE shall furnish NI with the
best available evidence of payment whenever LICENSEE deducts such
tax from any payments due to NI.

 

(d)

If VAT is owed on
fees and royalties hereunder and cannot be settled by filing a
notification instead of paying the VAT, VAT (or equivalent tax)
shall be added to the applicable fee or LICENSEE shall pay the
royalty and such VAT (or equivalent tax) owing. The Parties shall
cooperate and exercise their Commercially Reasonable Efforts (as
defined) to allow to the extent possible under applicable laws and
regulations recovery of any such VAT (or equivalent tax) paid. In
particular, NI shall provide invoices in accordance with applicable
VAT law and any other documentation reasonably required by LICENSEE
to obtain a refund of such VAT.

 

4.9
Right to
Purchase

 

(a)

As from completion
of the [___], the LICENSEE shall have
the right to notify NI in writing at any point in time henceforth
during the Term of its interest to purchase (i) the Licensed
Patents (as defined) and (ii) the Know-How (as defined) and a
royalty-free license for other IP controlled by NI as reasonably
necessary to commercialize the Constructs. Upon receipt by NI of
such notification, the Parties shall negotiate in good faith and
endeavour to agree on the terms of such IP purchase, including,
without limitation, on the purchase price [___].

 

[Commencement of option period
and methodology of calculating
purchase price omitted as competitively sensitive
information.]

 

(b)

For the avoidance
of doubt, however, failing an agreement to execute the requested IP
purchase by LICENSEE, the Construct License shall continue
unaffected, and LICENSEE shall have the right to notify its
interest to purchase again at any time [___]. If and when an
agreement can be reached, the parties will work expeditiously to
complete the purchase and sale contemplated within this Section 4.9
within [___] days
of LICENSEE's written notice upon customary terms acceptable to
both Parties acting reasonably and in good faith.

 

[Information pertaining to
option period and timing to complete purchase and sale omitted as
competitively sensitive information.]

 

(c)

During the Term, NI
shall not assign, sell or transfer any of Licensor’s right,
title or interest in or to Licensed Patents or the Know-How to a
Third Party unless:

 

(i) 

NI has first, by
written notice to LICENSEE, offered to LICENSEE the right to
acquire from NI such right, title or interest proposed to be
assigned, sold or transferred by NI [___]; and

 

(ii) 

LICENSEE has not
accepted NI’s offer by written notice of acceptance within
[___] days after receipt by LICENSEE of NI’s
offer;

 

in
which event NI may assign, sell or transfer to such Third Party the
right, title or interest in or to Licensed Patents or the Know-How
on the terms set out in [___]; provided that such Third Party
acquiring such right, title or interest in or to the Licensed
Patents or Know-How shall agree in writing: (x) to be bound to the
terms and conditions of this Agreement to the same extent as and
instead of NI; and (y) that, therefore, LICENSEE shall be direct
beneficiary of such agreement with the right to enforce such
agreement on such Third Party. If LICENSEE accepts an offer from NI
under this paragraph, the parties will work expeditiously to
complete the purchase and sale to LICENSEE contemplated in this
paragraph.

 

[Information pertaining to
right of first refusal terms and timing omitted as competitively
sensitive information.]

 

5.

BOOKS AND RECORDS; AUDITS

 

5.1

Procedures

 

(a)

LICENSEE shall keep
full and accurate accounting records related to the Net Sales and
Sublicensing Revenues of Licensed Products and all reporting
obligations according to this Agreement in sufficient detail and in
compliance with internationally accepted accounting and bookkeeping
standards (International Financial Reporting Standards (IFRS) or
Generally Accepted Accounting Principles (GAAP)). Such records,
together with all necessary supporting data, shall be kept at
LICENSEE's offices at the address set forth above or such other
address as LICENSEE may communicate in writing to NI.

 
	

License
Agreement between NovImmune and Edesa Biotech Research

	
 
9|
14

 

 

 

(b)

Upon reasonable
notice to LICENSEE, NI shall have the right during normal business
hours to have an independent certified public accountant, selected
by NI and reasonably acceptable to LICENSEE, to audit on a
confidential basis LICENSEE's records pertaining to Net Sales and
Sublicensing Revenue of Licensed Products to verify fees and
royalties payable pursuant to this Agreement; provided, however,
that such audit shall not (a) take place more frequently than once
in a Calendar Year (as defined), or (b) cover records for more than
the preceding three (3) years.

 

(c)

If deemed necessary
in the sole discretion of the accountant, the accountant shall, at
NI’s expense, be permitted to consult with and obtain the
assistance of consultants selected by the accountant and reasonably
acceptable to LICENSEE.

 

(d)

The results of the
examination shall be final and binding on the Parties, subject to
either Party's right to bring the case to arbitration in accordance
with Section 10.12, but solely on the
ground of arbitrary findings of the examination.

 

5.2
Cost of
Audits

 

The
fees and expenses of an audit shall be borne by NI; provided,
however, that if an audit reveals that LICENSEE underpaid fees or
royalties due to NI under this Agreement as to the period being
audited by more than seven point five percent (7.5%) of the amount
that was payable for such period, then LICENSEE shall, in addition
to paying immediately to NI any such shortfall, reimburse NI for
the cost of such audit.

 

5.3
Retention
Period

 

Subject
to any statutory provisions on the keeping of records applicable,
LICENSEE shall retain all books and records required to be
maintained under Section 5 for
not less than five (5) years from the date of the Royalty Payment
to which they pertain.

 

6.

INTELLECTUAL PROPERTY

 

6.1

Allocation of IP

 

(a)

NI shall own any
and all existing IP in the Constructs.

 

(b)

LICENSEE shall
own any and all newly created IP resulting from the exploitation of
the Construct License, such as, without limitation, IP in Construct
modifications, improvements and innovative combinations of either
of the Constructs with newly developed or existing other constructs
and any filings with regulators, including, without limitation,
IND, and any marketing authorisations and other regulatory
approvals filed or obtained by or under the control of LICENSEE
during the Term (all together referred to as Edesa IP).

 

6.2

IP Responsibility | Prosecution

 

(a)

LICENSEE shall be
responsible to prosecute, maintain and enforce upon its sole
discretion (such discretion to be exercised, however, in compliance
with, and to be without prejudice to, the terms and conditions of
this Agreement, including, without limitation, this
Section 6) the Licensed Patents
and Edesa IP.

 

(b)

In the event that
LICENSEE decides to cease prosecution or maintenance of any
Licensed Patent and/or Edesa IP, it shall promptly (but in any case
not less than three months prior to such ceasing of prosecution or
maintenance) notify NI of that election, and it shall be NI's sole
and unrestricted option to prosecute or not at its own
expense.

 

(c) 

For the avoidance
of doubt, if any of the Licensed Patent or Other Licensed IP
belongs to a patent family disclosing and claiming inventions other
than the Constructs, then NI shall control its prosecution. In the
event that NI decides to cease prosecution or maintenance of such
Licensed Patent or Other Licensed IP, it shall promptly (but in any
case not less than three months prior to such ceasing of
prosecution or maintenance) notify LICENSEE of that election, and
it shall be LICENSEE's sole and unrestricted option to prosecute or
not at its own expense.

 
	

License
Agreement between NovImmune and Edesa Biotech Research

	
 
10|
14

 

 

 

6.3
Third
Party Infringement

 

(a)

If, during the term
of this Agreement, either Party becomes aware that any Third Party
is infringing any Licensed Patents, Know-how or Other Licensed IP,
it shall promptly notify the other Party and provide to the other
Party all non-privileged information in its possession concerning
such infringement.

 

(b)

LICENSEE shall have
the first right to instigate action and legal proceedings against
such Third Party, and NI shall provide such assistance as LICENSEE
may reasonably request. LICENSEE shall bear the expense of any
legal proceeding instigated by it. If LICENSEE does not timely
instigate appropriate action or legal proceedings against the Third
Party infringement, or if any action or legal proceedings
instigated by LICENSEE do not reasonably protect NI's interest in
the Licensed Patents, NI shall have the right but no obligation
whatsoever to instigate any action and/or legal proceedings against
the Third Party as NI deems reasonable in its own
discretion.

 

(c)

If an infringement
concerns a patent or any other IP owned by LICENSEE, LICENSEE shall
have sole discretion in the decision to instigate legal proceedings
at its expense.

 

6.4
Infringement of
Third Party’s IP

 

(a)

To the knowledge
of NI and as per the Effective Date, there are no current, pending
or threatened legal claims, objections, litigation, judgments or
settlements against the Licensed Patents and the Know-How pursuant
to the Construct License and to the knowledge of NI, the Licensed
Patents and the Know-How pursuant to the Construct License do not
infringe on any IP of a Third Party. However, LICENSEE acknowledges
that NI has not conducted, and was under no obligation to conduct,
any FTO analysis or other research of potential conflicts with
Third Party IP.

 

(b)

NI does not
represent nor warrant or covenants, nor does NI assume any
liability whatsoever towards LICENSEE or any other person, that the
exploitation of the Construct License does not or may not infringe
upon any IP of a Third Party. It shall be LICENSEE's sole
responsibility to conduct due FTO analyses in view of any intended
exploitation.

 

6.5
Transfer
of the IND

 

Subject
to the terms of this Agreement, within 30 days of the Effective
Date, the Parties will file a request to transfer the IND for the
Licensed Products from NI to the LICENSEE.

 

7.

REPRESENTATIONS AND WARRANTIES;
INDEMNITIES

 

7.1

Representations and Warranties

 

(a)

Each Party
represents, warrants and covenants that: (i) it has the requisite
power and authority to enter into, execute, deliver and perform its
obligations under this Agreement; and (ii) it is in compliance with
all applicable laws related to such performance, including having
obtained all necessary permits and licenses; and (iii) it has not
entered and will not enter into any agreements inconsistent with
the provisions hereof.

 

(b)

Other than
expressly provided for in section 6.4(a), no Party
does represent or warrant nor does it assume any liability of any
kind for the validity and/or enforceability of any IP involved in
the exploitation of the Construct License, nor for the efficacy or
merchantability of the Constructs or Licensed
Products.

 

(c)

NI does not
represent or warrant nor does it assume any liability that
governmental authorities or any other institution or supervisory
board or similar agencies shall approve the Licensed Products. NI
does not represent or warrant that any Licensed Products made or
having been made by LICENSEE nor any other activities by LICENSEE
under or in relation with this Agreement do not infringe upon IP of
Third Parties, subject however to the representations and
warranties set forth in sub-paragraph (f).

 

(d)

NI represents and
warrants that, to the knowledge of NI and as per the Effective
Date, there are no legal claims, litigation, judgments or
settlements, whether against or owed by NI or pending legal claims
or litigation, in each case relating to the Constructs, the
Licensed Patents and the Know-How or NI’s rights thereto, and
to the knowledge of NI, there are no current, pending or threatened
legal claims or objections relating to the Licensed Patents,
Constructs, or NI’s rights thereto.

 

(e)

NI represents and
warrants that it owns all right, title and interest in and to the
Licensed Patents, Know-how and Other Licensed IP, and has the right
to grant the LICENSEE the rights and licenses that it purports to
grant hereunder and has not granted any Third Party rights that
would interfere or be inconsistent with the LICENSEE’s rights
hereunder.

 

(f)

Notifications of
and/or claims for misrepresentations and/or breaches of warranties
may be made, raised and filed as provided for by the applicable
law.

 
	

License
Agreement between NovImmune and Edesa Biotech Research

	
 
11|
14

 

 

 

7.2

Indemnities

 

The
Parties shall indemnify, defend, and hold harmless each other and
their Affiliates and their officers, directors, employees, agents
and representatives from and against any and all liabilities,
claims, demands, actions, suits, losses, damages, costs, and
expenses (including reasonable attorneys' fees) arising out of or
in connection with a breach of warranty or misrepresentation or any
other breach of contract; provided that no Party shall be required
to indemnify the other or its Affiliates to the extent that the
other Party's gross negligence or wilful misconduct has contributed
to the damage.

 

7.3
Exclusions and
Limitations

 

(a)

Neither Party shall
be liable to the other Party, under whatever theory, for any
indirect, special, punitive or consequential damages, or loss of
profit, loss revenue, or loss of opportunity, for any cause of
action a Party may have against the other Party arising
hereunder.

 

(b) 

All liabilities and
obligations for indemnification hereunder shall expire two (2)
years from the date of termination or expiry of this Agreement,
except with respect to claims already notified to the other Party
prior to the end of such two (2) year period.

 

8.

CONFIDENTIALITY AND PUBLIC
ANNOUNCEMENTS

 

(a)

Each Party shall
keep strictly confidential all Confidential Information (as
defined) obtained from or about the other Party, and it shall have
its officers and employees execute confidentiality covenants duly
protecting such Confidential Information of the other
Party.

 

(b)

Each Party agrees
(i) not to use Confidential Information received from the other for
any purpose other than the performance of its obligations
hereunder, and (ii) not to disclose Confidential Information so
received to any Third Party, except as is required by mandatory
statutes or a court, stock exchange or governmental authority or
otherwise for the good faith performance of its obligations and
exercise of its rights hereunder (e.g., for patent filings, for the
filing of applications for regulatory approvals,
etc.).

 

(c)

In the event that a
disclosure of Confidential Information to a Third Party becomes
necessary or required, and such disclosure is not otherwise
permitted under this Agreement, the Receiving Party (as defined)
requested to disclose shall give to the Disclosing Party (as
defined) the greatest practical prior written notice so as to
permit the latter to take all possible action to perfect and/or
safeguard its rights in the Confidential Information.

 

(d)

The obligations of
the Parties relating to Confidential Information shall expire five
(5) years after termination or expiry of this
Agreement.

 

(e)

Each
Party shall be as careful to preserve the confidential nature of
the other Party's Confidential Information as it is with its own
proprietary information.

 

(f)

Subject
to any statutory, governmental or stock exchange disclosure
requirements, neither Party shall make any public announcement
concerning the transactions contemplated herein or make any public
statement which includes the name of the other Party or any of its
Affiliates, or otherwise use the name of the other Party or any of
its Affiliates in any public statement or document without the
written consent of the other Party.

 

9.
TERM AND
TERMINATION

 

9.1

Term

 

(a)

This Agreement
shall enter into force on the Effective Date and shall remain in
effect for twenty-five (25) years from the First Commercial Sale in
the first country (the Initial
Period).

 

(b)

Subsequently, the
Agreement shall automatically and repeatedly renew for five (5)
year periods (the Renewal
Periods) unless either Party terminates the Agreement by
giving notice of termination to the other Party at least six (6)
months prior to the expiry of the Initial Period or a Renewal
Period (the Initial Period and the Renewal Periods constitute the
Term of the
Agreement).

 

9.2
Termination for
Cause

 

(a)

Either Party may
terminate this Agreement upon written notice to the other Party in
the event the other Party materially breaches this Agreement and
fails to cure such breach, if curable, within sixty (60) calendar
days after receipt of written notice of breach from the
non-breaching Party requesting the remedy of the breach and
expressly threatening to otherwise terminate the Agreement. In case
of incurable breach of contract, the right to terminate arises with
the breach immediately and is to be exercised within sixty (60)
days thereof.

 
	

License
Agreement between NovImmune and Edesa Biotech Research

	
 
12|
14

 

 

  

(b)

This Agreement may
be terminated upon written notice by NI if the LICENSEE (i) makes a
general assignment for the benefit of creditors; (ii) files any
petition, or commences any proceeding voluntarily, for any relief
under any bankruptcy or insolvency laws or any law relating to the
relief of debtors; (iii) consents to the entry of an order in an
involuntary bankruptcy or insolvency case; (iv) is the subject of
an order or decree for relief against it by a court of competent
jurisdiction in an involuntary case under any bankruptcy or
insolvency laws or any law relating to the relief of debtors, which
order or decree is unstayed and in effect for a period of 60
consecutive days; (v) is subject to appointment, with or without
its consent, of any receiver, liquidator, custodian, assignee,
trustee, sequestrator or other similar official of such other Party
or any substantial part of its property; or (vi) admits in writing
of its inability to pay its debts generally as they become
due.

 

(c)

If NI alleges that
the LICENSEE has failed to use Commercially Reasonable Efforts to
develop the Constructs in accordance with the Development Plan by
failing to meet the Development Targets, NI shall provide the
LICENSEE with written notice. If Commercially Reasonable Efforts to
develop the Constructs in accordance with the Development Plan have
not commenced within sixty (60) days of receipt of written notice
of such failure by the LICENSEE, or if such Commercially Reasonable
Efforts have commenced in time but are discontinued and not resumed
by LICENSEE within thirty (30) days of another written notice, NI
may serve notice of termination with immediate effect of the
Agreement.

 

9.3

Effects of Termination.

 

(a)

Upon termination or
expiry of this Agreement, LICENSEE shall remain entitled to
continue to use any Know-How available to LICENSEE as of the date
of the termination or expiry of this Agreement. For the avoidance
of doubt, this right of continued use does not refer to the use of
(i) any of the Licensed Patents or Other Licensed IP still in force
at the time of termination and (ii) any additions to the Know-How
as available upon termination or expiry of the
Agreement.

 

(b)

To the extent the
sale of Licensed Products is still covered by Licensed Patents or
Other Licensed IP upon termination of this Agreement, LICENSEE and
its Affiliates and sub-licensees shall be permitted to sell
Licensed Products during a period of one-hundred-twenty (120) days
of termination, provided, however, that the sale of such Licensed
Products will be subject to the terms of this Agreement including,
but not limited to, the payments due and at the rates and times
provided herein and the rendering of reports in connection
therewith.

 

(c)

The termination or
expiry of this Agreement for any reason shall not relieve the
Parties of any obligations accruing prior thereto and shall be
without prejudice to the rights and remedies of either Party with
respect to the breach of any of the provisions of this
Agreement.

 

(d)

Upon Termination
for Cause of this Agreement by NI, LICENSEE shall provide, and
hereby grants, a non-exclusive, irrevocable, and royalty-free
license to make use of Edesa IP as is reasonably necessary for NI
to commercialize the Constructs.

 

(e)

Sections 5, 6.1, 6.2, 7.2, 7.3, 8, 9.3 and 10 shall
survive any expiry or termination of this Agreement.

 

10.

FINAL PROVISIONS

 

10.1
Entire
Agreement

 

This
Agreement, together with the annexes and any other document
referred to in this Agreement, constitutes the entire agreement
between the Parties concerning the subject matter hereof and
supersedes all written or oral prior agreements or understandings
with respect thereto.

 

10.2
Written
Form

 

The
termination and any changes or amendments of this Agreement,
including the waiver of any provisions, are effective only if made
in writing. This also applies to a waiver of this formal
requirement.

 

10.3
Severability

 

In the
event that any provision, clause or application of this Agreement
is invalidated or unenforceable for any reason whatsoever, this
Agreement shall remain binding and in full force and effect except
for such invalidated or unenforceable provision, clause or
application. The Parties agree to use all Commercially Reasonable
Efforts to substitute any provision that shall be illegal or
unenforceable in good faith by another suitable provision that
maintains the economic purpose and the intent originally pursued by
them.

 

10.4
Assignment

 

Other
than to an Affiliate or to a Party's successor to a part or all of
the business to which this Agreement relates (including in
connection with any company merger, company trade sale, sale of
stock, sale of assets or other similar transaction), neither this
Agreement nor any interest herein shall be assignable or otherwise
transferable by a Party without the other Party’s prior
written consent, which shall not be unreasonably
withheld.

 

10.5
Independent
Contractor

 

The
relationship of NI to LICENSEE is that of independent contractor.
In no event shall either Party hold itself out to others or allow
itself to be considered the agent, employee, or representative of
the other Party.

 

10.6
Further
Assurances

 

Each
Party will, from time to time and at all times, without further
consideration perform the acts and execute and deliver the
documents and give the assurances necessary to give effect to this
Agreement.

 
	

License
Agreement between NovImmune and Edesa Biotech Research

	

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14

 

 

   

10.7

Notices

 

(a)

All notices
hereunder shall be in writing and shall be delivered personally,
mailed by overnight delivery, registered or certified mail, postage
prepaid, mailed by express mail service or given by facsimile or by
electronic mail to the designated representative(s) of the Parties
at the following addresses of the respective Parties:

	
If
to NI:

	
NovImmune
SA

Chemin
des Aulx 14

1228
Plan-les-Ouates

Switzerland

Attn:
Oliver Eckelmann

Fax
No.:

Email:

 

	
If
to LICENSEE:

	
Edesa Biotech
Research, Inc.

100
Spy Court

Markham,
Ontario, L3R 5H6

Canada

Attn:
Michael Brooks

Fax
No.:

Email:

 

[Personal information
omitted.]

 

(b)

Notices shall be
effective upon receipt if personally delivered, on the third
Business Day (as defined) following the date of mailing if sent by
certified or registered mail, and on the second Business Day
following the date of delivery to the express mail service if sent
by express mail, or the date of transmission if sent by facsimile.
A Party may change its address listed above by written notice to
the other Party.

 

10.8
Force
Majeure

 

(a) 

Any delay in the
performance of any of the duties or obligations of either Party
under this Agreement caused by an event outside the affected
Party's reasonable control shall not be considered a breach of this
Agreement, and the time required for performance shall be extended
for a period equal to the period of such delay. Such events shall
include, without limitation: acts of God; acts of terrorism; riots;
embargoes; labour disputes, including strikes, lockouts, job
actions, or boycotts; fires; explosions; earthquakes; floods;
shortages of material or energy; or other unforeseeable causes
beyond the reasonable control and without the fault or negligence
of the Party so affected. The Party so affected shall give prompt
notice to the other Party of such cause and shall take whatever
reasonable steps are necessary to relieve the effect of such cause
as rapidly as possible.

 

(b) 

Notwithstanding the
foregoing, the Parties acknowledge that uncertainties and events
outside control of the Parties related to the ongoing COVID-19
pandemic, such as emergency proclamations by national governments,
quarantines and travel restrictions, may prevent performance under
this Agreement. The Parties agree to enter into good faith
negotiations to amend development and milestones timelines
specified in this Agreement if a Party provides notice to the other
Party that such events prevent the Party, in spite of its good
faith and diligent efforts, to meet its performance
obligations.

 

10.9

Waiver

 

No
waiver of any of the terms of this Agreement shall be valid unless
in writing and signed by an authorized representative of the
Parties. Failure by either Party to enforce any rights under this
Agreement shall not be construed as a waiver of such rights, nor
shall a waiver by either Party in one or more instances be
construed as constituting a continuing waiver or as a waiver in
other instances.

 

10.10

Annexes

 

All
Annexes are incorporated herein by reference.

 

10.11
Governing
Law

 

This
Agreement has been construed in accordance with and shall be
governed by the substantive laws of Switzerland with the exclusion
of the UN Convention on International Sales of Goods (Vienna
Convention).

 

10.12

Arbitration

 

All
disputes arising out of or in connection with this Agreement,
including disputes on its conclusion, binding effect, amendment and
termination, shall be resolved, to the exclusion of the ordinary
courts, by arbitration in accordance with the Rules of Arbitration
of the International Chamber of Commerce in force on the date when
the notice of arbitration is submitted in accordance with these
Rules. The number of arbitrators shall be three (3), and they shall
be appointed in accordance with the Rules of Arbitration. The seat
of the arbitration shall be in London. The arbitral proceedings
shall be conducted in English.

 
	

License
Agreement between NovImmune and Edesa Biotech Research

	
 
14|
14

 

 

 

IN WITNESS WHEREOF, each Party has caused this Agreement to
be executed on its behalf by its duly authorized representatives as
of the Effective Date.

 

	

Place
and Date: _Switzerland April 17, 2020

 

NovImmune SA

	
 

	

/s/
Nicolas Fischer

	

/s/
Oliver Eckelmann

	

Nicolas
Fischer

 

 

 

	

Oliver
Eckelmann

 

	

Place
and Date: _Canada April 17, 2020__

 

Edesa Biotech Research, Inc.

	
 

	

/s/
Pardeep Nijhawan

	

/s/
Michael Brooks

	

 Pardeep Nijhawan

	

Michael
Brooks

 

 

	

Annex
1 to the License Agreement between
NovImmune and Edesa Biotech Research

	

1 | 6

 

 

 

Annex 1

 

Definitions

 

As used
in this Agreement and in any of the Annexes thereto in capitalized
form, the terms set forth below shall have the following meaning,
irrespective of whether used in the singular or plural. To the
extent terms are also defined in one or several Sections of the
Agreement and discrepancies in definitions occur, the definitions
set forth in this Annex 1 shall
prevail.

 

Affiliate shall mean any individual, corporation,
association or other business entity that directly or indirectly
controls, is controlled by, or is under common control with the
Party in question. As used in this definition, the term control
shall mean the direct or indirect ownership of more than fifty
percent (>50%) of the stock having the right to vote for
directors thereof or the ability to otherwise control the
management of the corporation or other business entity whether
through the ownership of voting securities, by contract,
resolution, regulation or otherwise.

 

Agreement shall mean this present License Agreement with its
Annexes.

 

Annex shall mean any of the numbered Annexes to this
Agreement.

 

BLA shall mean Biologic Application License as regulated
under FDA 21 CFR 600 – 680.

 

Business Day shall mean a day other than a Saturday or
Sunday or other day on which commercial banks in Zurich,
Switzerland are authorized or required by law to
close.

 

Calendar Quarter shall mean the four quarters of a Calendar
Year, each Calendar Quarter starting on January 1, April 1, July 1
and October 1.

 

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

 

Commercially Reasonable Efforts shall mean the level of
diligence, effort and resources required to carry out a particular
task or obligation in a manner consistent with the reasonable
general practices that a company within the pharmaceutical industry
at a similar size and similarly situated to NI or LICENSEE (as
applicable) applies in the exercise of its reasonable business
discretion relating to other pharmaceutical products which are of
similar market potential and at a similar stage in their
development or product life.

 

Confidential Information shall mean any and all information,
data or know-how, whether technical or non-technical, oral or
written, that is disclosed by one Party or its Affiliates
(Disclosing Party) to the
other Party or its Affiliates (Receiving Party). Confidential
Information shall not include any information, data or know-how
that:

 

(a)

as reasonably
evidenced by the Receiving Party, was generally available to the
public at the time of disclosure, or information that becomes
available to the public after disclosure by the Disclosing Party
other than through fault (whether by action or inaction) of the
Receiving Party or its Affiliates,

 

(b)

can be evidenced by
written records to have been already known to the Receiving Party
or its Affiliates prior to its receipt from the Disclosing
Party,

 

(c)

is obtained at any
time lawfully from a Third Party under circumstances permitting its
use or disclosure, as reasonably evidenced by the Receiving
Party,

 

(d)

is developed
independently by the Receiving Party or its Affiliates as evidenced
by written records other than through knowledge of Confidential
Information,

 

(e)

is required to be
disclosed by the Receiving Party of its Affiliates to comply with a
court or administrative order provided the Receiving Party or its
Affiliates furnishes prompt notice (in no event less than three (3)
Business Days) to the Disclosing Party to enable it to resist such
disclosure, provided however
that the exception in this sub-paragraph (e) shall apply
only for the purpose of complying with such court or administrative
order and that, for the avoidance of doubt, such disclosed
information shall otherwise remain Confidential
Information,

 

 

 

	
Annex 1 to the
License Agreement between NovImmune and Edesa Biotech
Research

	
  2| 6

 

(f)

is required to be disclosed by the Receiving Party
to fulfill stock exchange disclosure requirements,
or

 

(g)

is approved in
writing by the Disclosing Party for release by the Receiving
Party.

 

The
terms of this Agreement shall be considered Confidential
Information of either of the Parties.

 

Construct(s) shall have the meaning set forth in the second
whereas clause.

 

Construct License shall have the meaning set forth in
Section 2.1(a).

 

Development Plan shall have the meaning set forth in Section
3(c) and shall be further detailed in Annex 3.

 

Development Targets shall have the meaning set forth in
Section 3(c) and shall be further detailed in Annex 3

 

Disclosing Party shall have the meaning set forth in the
definition of Confidential Information.

 

Edesa IP shall have the meaning set forth in Section
6.1(b).

 

Effective Date shall mean the date on which the last Party
executes this Agreement.

 

FDA shall mean the U.S. Food and Drug Administration
or any successor entity as defined in the U.S. Federal Food, Drug
and Cosmetic Act.

 

First Commercial Sale shall mean, on a country-by-country
basis, the first invoiced sale of a Licensed Product to a Third
Party by or for LICENSEE following the receipt of any regulatory
approval required for the sale of such Licensed Product, or if no
such regulatory approval is required, the date of the first
invoiced sale of a Licensed Product to a Third Party by or for
LICENSEE in such country.

 

FTO shall mean Freedom to Operate.

 

IND shall mean an Investigational New Drug application in
the United States, a Clinical Trial Application in Canada, or a
foreign equivalent application or submission for approval to
conduct human clinical investigations filed with or submitted to a
Regulatory Authority in conformance with the requirements of such
Regulatory Authority.

 

Initial Period shall have the meaning set forth in Section
9.1.

 

IP stands for Intellectual Property rights and shall mean
patents along with all applications, reissues, continuations,
continuations-in-part, revisions, divisions, extensions and
re-examinations, supplementary protection certificates, any other
rights to inventions, copyright and related rights as well as, to
the extent required in the context, trademarks, trade names and
domain names, rights in get-up, rights in goodwill or rights to sue
for passing off, rights in designs, rights in computer software,
rights in data and database rights and any other intellectual
property rights, in each case whether registered or unregistered
and including all applications (and rights to apply) for and all
similar or equivalent rights or forms of protection which subsist
in any part of the world.

 

Know-How shall mean all documented information relating to
the Constructs as controlled by and reasonably available at NI. For
the avoidance of doubt, Know-How shall also include access to all
Constructs-related clinical, non-clinical data, manufacturing and
safety information available at NI for purposes of obtaining and
maintaining regulatory approvals. For avoidance of doubt, Know-How
shall include any draft and any completed and submitted regulatory
filings, including but not limited to INDs.

 

 

 

	
Annex 1 to the
License Agreement between NovImmune and Edesa Biotech
Research

	
  3| 6

 

Licensed Field shall mean all therapeutic, prophylactic and
diagnostic applications of the Constructs in humans and
animals.

 

Licensed Patent(s) shall mean all patents and patent
applications owned by NI listed and/or to be listed during the Term
in Annex
2.1(b), claiming any of the
Constructs or their manufacture, formulation or use in the Licensed
Field, including any patents issuing on such patent applications,
and further including any substitution, extension or supplementary
protection certificate, reissue, re-examination, renewal, division,
continuation or continuation-in-part of any of the
foregoing.

 

Licensed Product shall mean any product in the Licensed
Field which is, contains or comprises any of the Constructs,
regardless of such product’s methods of application (such as
systemically, locally into tumors, intravenously, subcutaneously,
orally, etc.), forms (e.g.
active pharmaceutical ingredient (API), finished dose forms,
kits) or formulations
or dosages, or the manufacture, use, or sale.

 

Milestone Events shall have the meaning set forth in Section
4.3.

 

Milestone Payments shall have the meaning set forth in
Section 4.3.

 

Monoclonal Antibodies shall have the meaning set forth in
the first whereas clause.

 

Net Sales shall mean, with respect to each given country or
jurisdiction, the gross amount invoiced for sales of Licensed
Products by LICENSEE, its Affiliates and its distributors,
exclusive of inter-company or group transfers or sales and
exclusive of transfers of samples of Licensed Products; less the
gross-to-net deductions taken in accordance with internationally
accepted financial reporting standards as of the date of the
invoice for such sales, to the extent actually allowed and incurred
with respect to such sales and accounted for on a Licensed
Product-by-Licensed Product basis.

 

By way
of example, the gross-to-net deductions taken in accordance with
internationally accepted financial reporting standards as of the
Effective Date include the following:

 

(a)

credits, reserves
or allowances granted for (i) damaged, outdated, returned,
rejected, withdrawn or recalled Licensed Product, (ii) wastage
replacement and short-shipments; (iii) billing errors and (iv)
indigent patient and similar programs (e.g., price
capitation);

 

(b)

governmental price
reductions and government mandated rebates;

 

(c)

chargebacks,
including those granted to wholesalers, buying groups and
retailers;

 

(d)

customer credits,
rebates, including cash sales incentives for prompt payment, cash
and volume discounts, wholesaler and pharmacy allowances including
initial distribution allowances;

 

(e)

freight, fees for
services charges, postage and duties, shipping and insurance
charges relating to such Licensed Product;

 

(f)

taxes, duties and
any other governmental charges or levies imposed upon or measured
by the import, export, use, manufacture or sale of a Licensed
Product (excluding income or franchise taxes).

 

 

Any
such deductions need to be customary under applicable International
Financial Reporting Standards (IFRS) or Generally Accepted
Accounting Principles (GAAP), as applicable, to the extent actually
incurred, allowed, accrued or paid.

 

 

 

	
Annex 1 to the
License Agreement between NovImmune and Edesa Biotech
Research

	
  4| 6

 

Notice of Conversion shall have the meaning as set forth in Annex
5.

 

Other Licensed IP shall have the meaning set forth in
Section 2.1(b).

 

Parties shall mean both NI and LICENSEE.

 

Party shall mean either NI or LICENSEE.

 

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

 

Phase III Clinical Trial shall mean a human clinical 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.

 

Receiving Party shall have the meaning set forth in the
definition of Confidential Information.

 

Regulatory Authority means a government agency or entity
that exercises a legal right to control the use or sale of the
Licensed Products in a jurisdiction and may take enforcement action
to ensure that such Licensed Products commercialized within such
jurisdiction comply with applicable law.

 

Renewal Period(s) shall have the meaning as set forth in Section
9.1.

 

Royalty Payments shall have the meaning as set forth in
Section 4.2.

 

Sublicensee shall mean any Third Party to which LICENSEE
permits the commercialization of Constructs or Licensed Products in
countries where LICENSEE does not commercializes such Construct(s)
or Licensed Products on its own, whether directly or through
Affiliates or distributors.

 

Sublicensing Revenue shall mean the gross amount of all
revenues, royalties, receipts, and monies, including upfront
payments, milestone payments, and license fees, earned or received
by the LICENSEE from Sublicensee(s) with respect to the Constructs
minus any reasonable costs of goods and/or costs incurred by
LICENSEE as directly related to ongoing commercialization
activities by Sublicensee(s) of the Constructs incurred by the
LICENSEE. Accounting for any such revenues needs to be customary
under applicable International Financial Reporting Standards (IFRS)
or Generally Accepted Accounting Principles (GAAP), as applicable,
to the extent actually earned, allowed, accrued or
received.

 

Term shall have the meaning as
set forth in Section 9.1.

 

Third Party shall mean a
natural person, corporation, partnership, joint venture, trust, any
governmental authority or other business entity or organization,
and any other recognized organization other than the Parties and/or
their Affiliates.

 

Upfront Payment shall have the meaning as set forth in
Section 4.1.

 

USD shall mean US Dollars, being the lawful currency in the
United States of America.

 

VAT shall mean value-added tax.

 

[Annexes
4.1(a) and 4.1(b) have been filed as separate exhibits to this
filing with the Securities and Exchange
Commission.]

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