Document:

Exhibit
4.17

 

EXECUTION
VERSION

 

REGISTRATION
RIGHTS AGREEMENT

 

REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of February 7, 2020, by and among Chanticleer Holdings,
Inc., a Delaware corporation, with headquarters located at 7621 Little Avenue, Suite 414, Charlotte, NC 28226, to be renamed “Sonnet
BioTherapeutics Holdings, Inc.” pursuant to the Merger Agreement (as defined below) (the “Company”),
and the investors listed on the Schedule of Buyers attached hereto (each, a “Buyer” and collectively, the “Buyers”).

 

WHEREAS:

 

A.
In connection with the Securities Purchase Agreement (the “Securities Purchase Agreement”) by and among Sonnet
BioTherapeutics, Inc., a New Jersey corporation (“Sonnet Private Company”), the Company and the Buyers of even
date herewith, upon the terms and subject to the conditions of the Securities Purchase Agreement, (i) Sonnet Private Company has
agreed to issue to each Buyer shares of common stock, no par value per share, of Sonnet Private Company and (ii) the Company has
agreed to issue Series A Warrants and Series B Warrants (collectively, the “Warrants”) which each will be exercisable
to purchase shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”) (as
exercised, collectively, the “Warrant Shares”) in accordance with the terms of the Warrants.

 

B.
In accordance with the terms of the Securities Purchase Agreement, provided that the transactions contemplated by that certain
Agreement and Plan of Merger among the Company, Biosub Inc., a Delaware corporation, and Sonnet Private Company, dated as of October
10, 2019 (the “Merger Agreement”) are consummated, the Company has agreed to provide certain registration rights
under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively,
the “1933 Act”), and applicable state securities laws.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and each of the Buyers hereby agree as follows:

 

1.
Definitions.

 

Capitalized
terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement.
As used in this Agreement, the following terms shall have the following meanings:

 

(a)
“Additional Effective Date” means the date an Additional Registration Statement is declared effective by the
SEC.

 

(b)
“Additional Effectiveness Deadline” means the date which is the earlier of (i) in the event that the Additional
Registration Statement (x) is not subject to a full review by the SEC, the date which is thirty (30) calendar days after the earlier
of the applicable Additional Filing Date and the Additional Filing Deadline or (y) is subject to a full review by the SEC, the
date which is sixty (60) calendar days after the earlier of the applicable Additional Filing Date and the Additional Filing Deadline
and (ii) the fifth (5th) Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the
SEC that such Additional Registration Statement will not be reviewed or will not be subject to further review; provided,
however, that if the Additional Effectiveness Deadline falls on a Saturday, Sunday or other day that the SEC is closed
for business, the Additional Effectiveness Deadline shall be extended to the next Business Day on which the SEC is open for business.

 

    	 	 	 

     

    

 

(c)
“Additional Filing Date” means the date on which an Additional Registration Statement is filed with the SEC.

 

(d)
“Additional Filing Deadline” means if Cutback Shares are required to be included in any Additional Registration
Statement, the later of (i) the date sixty (60) days after the date substantially all of the Registrable Securities registered
under the immediately preceding Registration Statement are sold and (ii) the date six (6) months from the Initial Effective Date,
the most recent Subsequent Effective Date or the most recent Additional Effective Date, as applicable.

 

(e)
“Additional Registrable Securities” means, (i) any Cutback Shares not previously included on a Registration
Statement, and (ii) any capital stock of the Company issued or issuable with respect to the Series A Warrants, the Series B Warrants,
the Series A Warrant Shares, the Series B Warrant Shares or the Cutback Shares, as applicable, as a result of any stock split,
stock dividend, recapitalization, exchange or similar event or otherwise, without regard to any limitations on exercise of the
Warrants.

 

(f)
“Additional Registration Statement” means a registration statement or registration statements of the Company
filed under the 1933 Act covering the resale any Additional Registrable Securities.

 

(g)
“Additional Required Registration Amount” means any Cutback Shares not previously included on a Registration
Statement, all subject to adjustment as provided in Section 2(g), without regard to any limitations on the exercise of the Warrants.

 

(h)
“Additional Vested Common Shares “ means the Exchange Shares issued in exchange for the Additional Common Shares
(as defined in the Securities Purchase Agreement) delivered or deliverable to the Buyers pursuant to the Securities Purchase Agreement
without giving effect to any limitation on delivery pursuant to Section 1(c)(iv) of the Securities Purchase Agreement.

 

(i)
“Applicable Percentage” means (x) with respect to the events described in clauses (i), (ii) and (iii) of Section
2(h), 2.0% and (y) with respect to the events described in clauses (iv), (v) and (vi) of Section 2(h), 1.5%.

 

(j)
“Business Day” means any day other than Saturday, Sunday or any other day on which commercial banks in the
City of New York are authorized or required by law to remain closed.

 

(k)
“Closing Date” shall have the meaning set forth in the Securities Purchase Agreement.

 

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(l)
“Cutback Shares” means any of the Initial Required Registration Amount, the Subsequent Required Registration
Amount or the Additional Required Registration Amount of Registrable Securities not included in all Registration Statements previously
declared effective hereunder as a result of a limitation on the maximum number of shares of Common Stock of the Company permitted
to be registered by the staff of the SEC pursuant to Rule 415. For the purpose of determining the Cutback Shares, in order to
determine any applicable Required Registration Amount, unless an Investor gives written notice to the Company to the contrary
with respect to the allocation of its Cutback Shares, first the Series A Warrant Shares shall be excluded on a pro rata basis
among the Investors until all of the Series A Warrant Shares have been excluded and second the Series B Warrant Shares shall be
excluded on a pro rata basis among the Investors until all of the Series B Warrant Shares have been excluded.

 

(m)
“Designee” means [  ].

 

(n)
“effective” and “effectiveness” refer to a Registration Statement that has been declared
effective by the SEC and is available for the resale of the Registrable Securities required to be covered thereby.

 

(o)
“Effective Date” means the Initial Effective Date, each Subsequent Effective Date and/or each Additional Effective
Date, as applicable.

 

(p)
“Effectiveness Deadline” means the Initial Effectiveness Deadline, each Subsequent Effectiveness Deadline and/or
each Additional Effectiveness Deadline, as applicable.

 

(q)
“Eligible Market” means the Principal Market, the NYSE American, The Nasdaq Global Select Market, The Nasdaq
Global Market or The New York Stock Exchange, Inc.

 

(r)
“End Reset Date” shall have the meaning ascribed to such term in the Series B Warrants

 

(s)
“Exchange Shares” shall have the meaning ascribed to such term in the Securities Purchase Agreement

 

(t)
“Filing Deadline” means the Initial Filing Deadline, each Subsequent Filing Deadline and/or each Additional
Filing Deadline, as applicable.

 

(u)
“Initial Common Shares” means the number of Exchange Shares issued in exchange for the Initial Common Shares
(as defined in the Securities Purchase Agreement).

 

(v)
“Initial Effective Date” means the date that the Initial Registration Statement has been declared effective
by the SEC.

 

    	 	3	 

     

    

 

(w)
“Initial Effectiveness Deadline” means the date which is the earlier of (x) (i) in the event that the Initial
Registration Statement is not subject to a full review by the SEC, forty five (45) calendar days after the Closing Date or (ii)
in the event that the Initial Registration Statement is subject to a full review by the SEC, seventy five (75) calendar days after
the Closing Date and (y) the fifth (5th) Business Day after the date the Company is notified (orally or in writing, whichever
is earlier) by the SEC that such Initial Registration Statement will not be reviewed or will not be subject to further review;
provided, however, that if the Initial Effectiveness Deadline falls on a Saturday, Sunday or other day that the
SEC is closed for business, the Initial Effectiveness Deadline shall be extended to the next Business Day on which the SEC is
open for business.

 

(x)
“Initial Filing Date” means the date on which the Initial Registration Statement is filed with the SEC.

 

(y)
“Initial Filing Deadline” means the date which is fifteen (15) Trading Days after the Closing Date.

 

(z)
“Initial Registrable Securities” means (i) the Series A Warrant Shares issued or issuable upon exercise of
the Series A Warrants, (ii) the Series B Warrant Shares issued or issuable upon exercise of the Series B Warrants and (iii) any
capital stock of the Company issued or issuable with respect to the Series A Warrant Shares, the Series A Warrants, the Series
B Warrant Shares or the Series B Warrants, in each case as a result of any stock split, stock dividend, recapitalization, exchange
or similar event or otherwise, without regard to any limitations on the exercise of the Series A Warrants and/or the Series B
Warrants.

 

(aa)
“Initial Registration Statement” means a registration statement or registration statements of the Company filed
under the 1933 Act covering the resale of Initial Registrable Securities.

 

(bb)
“Initial Required Registration Amount” means the number of shares of Common Stock issued and issuable pursuant
to the Series A Warrants and the Series B Warrants equal to the greater of (A) the sum of (x) the number of Series A Warrant Shares
issued and issuable pursuant to the Series A Warrants determined in accordance with Section 2(d) of the Series A Warrants assuming
a Reset Price (as defined in the Series A Warrants) equal to the Reset Floor Price without giving effect to any limitation on
exercise set forth therein, (y) the number of Series B Warrant Shares issued and issuable pursuant to the Series B Warrants assuming
that the Maximum Eligibility Number (as defined in the Series B Warrant) is determined based on a Reset Price (as defined in the
Series B Warrants) equal to the Reset Floor Price without giving effect to any limitation on exercise set forth therein and (B)
the number of shares of Common Stock issuable upon exercise of the Series A Warrants and the Series B Warrants, each without giving
effect to any limitation on exercise set forth in the Warrants, calculated as of the Trading Day immediately preceding the applicable
date of determination and all subject to adjustment as provided in Section 2(g).

 

(cc)
“Investor” means a Buyer or any transferee or assignee thereof to whom a Buyer assigns its rights under this
Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9 and any transferee or
assignee thereof to whom a transferee or assignee assigns its rights under this Agreement and who agrees to become bound by the
provisions of this Agreement in accordance with Section 9.

 

    	 	4	 

     

    

 

(dd)
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization and a government or any department or agency thereof.

 

(ee)
“Principal Market” means The Nasdaq Capital Market.

 

(ff)
“register,” “registered,” and “registration” refer to a registration
effected by preparing and filing one or more Registration Statements (as defined below) in compliance with the 1933 Act and pursuant
to Rule 415, and the declaration or ordering of effectiveness of such Registration Statement(s) by the SEC.

 

(gg)
“Registrable Securities” means the Initial Registrable Securities, the Subsequent Registrable Securities and/or
the Additional Registrable Securities, as applicable.

 

(hh)
“Registration Statement” means the Initial Registration Statement, the Subsequent Registration Statement(s)
and/or the Additional Registration Statement(s), as applicable.

 

(ii)
“Required Holders” means the holders of at least a majority of the Registrable Securities and shall include
the Designee so long as the Designee or any of its affiliates holds any Registrable Securities.

 

(jj)
“Required Registration Amount” means either the Initial Required Registration Amount, the Subsequent Required
Registration Amount and/or the Additional Required Registration Amount, as applicable.

 

(kk)
“Reservation Date” shall have the meaning ascribed to such term in the Warrants.

 

(ll)
“Reset Floor Price” shall have the meaning ascribed to such term in the Warrants.

 

(mm)
“Rule 415” means Rule 415 promulgated under the 1933 Act or any successor rule providing for offering securities
on a continuous or delayed basis.

 

(nn)
“SEC” means the United States Securities and Exchange Commission.

 

(oo)
“Series A Warrants” shall have the meaning set forth in the Securities Purchase Agreement.

 

(pp)
“Series A Warrant Shares” shall have the meaning set forth in the Securities Purchase Agreement.

 

(qq)
“Series B Warrants” shall have the meaning set forth in the Securities Purchase Agreement.

 

    	 	5	 

     

    

 

(rr)
“Series B Warrant Shares” shall have the meaning set forth in the Securities Purchase Agreement.

 

(ss)
“Subsequent Effective Date” means the date that a Subsequent Registration Statement has been declared effective
by the SEC.

 

(tt)
“Subsequent Effectiveness Deadline” means the date which is the earlier of (x) the sixtieth (60th)
day after the earlier of the applicable Subsequent Filing Date and the applicable Subsequent Filing Deadline and (y) the fifth
(5th) Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC that such Subsequent
Registration Statement will not be reviewed or will not be subject to further review; provided, however, that if
a Subsequent Effectiveness Deadline falls on a Saturday, Sunday or other day that the SEC is closed for business, the Subsequent
Effectiveness Deadline shall be extended to the next Business Day on which the SEC is open for business.

 

(uu)
“Subsequent Filing Date” means the date on which the applicable Subsequent Registration Statement is filed
with the SEC.

 

(vv)
“Subsequent Filing Deadline” means the date which is fifteen (15) calendar days after each End Reset Date.

 

(ww)
“Subsequent Registrable Securities” means (i) the Series A Warrant Shares issued or issuable upon exercise
of the Series A Warrants to the extent such Series A Warrant Shares were not included in all Registration Statements previously
declared effective hereunder, (ii) the Series B Warrant Shares issued or issuable upon exercise of the Series B Warrants to the
extent such Series B Warrant Shares were not included in all Registration Statements previously declared effective hereunder and
(iii) any capital stock of the Company issued or issuable with respect to the Series A Warrant Shares, Series B Warrant Shares,
Series A Warrants or Series B Warrants to the extent such capital stock was not included in all Registration Statements previously
declared effective hereunder, in each case as a result of any stock split, stock dividend, recapitalization, exchange or similar
event or otherwise, without regard to any limitations on the exercise of the Warrants.

 

(xx)
“Subsequent Registration Statement” means a registration statement or registration statements of the Company
filed under the 1933 Act covering the resale of Subsequent Registrable Securities.

 

(yy)
“Subsequent Required Registration Amount” means the number of shares of Common Stock issued and issuable pursuant
to the Series A Warrants and the Series B Warrants equal the greater of (A) the sum of (x) the number of Series A Warrant Shares
issued and issuable pursuant to the Series A Warrants determined in accordance with Section 2(d) of the Series A Warrants assuming
a Reset Price (as defined in the Series A Warrants) equal to Reset Floor Price without giving effect to any limitation on exercise
set forth therein to the extent such Series A Warrant Shares were not included in all Registration Statements previously declared
effective hereunder, (y) the number of Series B Warrant Shares issued and issuable pursuant to the Series B Warrants assuming
that the Maximum Eligibility Number (as defined in the Series B Warrant) is determined based on a Reset Price (as defined in the
Series B Warrants) equal to the Reset Floor Price without giving effect to any limitation on exercise set forth therein to the
extent such Series B Warrant Shares were not included in all Registration Statements previously declared effective hereunder and
(B) the number of shares of Common Stock issuable upon exercise of the Series A Warrants and the Series B Warrants, each without
giving effect to any limitation on exercise set forth in the Warrants to the extent such Series A Warrant Shares and Series B
Warrant Shares were not included in all Registration Statements previously declared effective hereunder, calculated as of the
Trading Day immediately preceding the applicable date of determination and all subject to adjustment as provided in Section 2(g).

 

    	 	6	 

     

    

 

(zz)
“Trading Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal
Market is not the principal trading market for the Common Stock on such day, then on the principal securities exchange or securities
market on which the Common Stock is then traded.

 

2.
Registration.

 

(a)
Initial Mandatory Registration. The Company shall prepare, and, as soon as practicable but in no event later than the Initial
Filing Deadline, file with the SEC the Initial Registration Statement on Form S-3 covering the resale of all of the Initial Registrable
Securities. In the event that Form S-3 is unavailable for such a registration, the Company shall use such other form as is available
for such a registration on another appropriate form reasonably acceptable to the Required Holders, subject to the provisions of
Section 2(f). The Initial Registration Statement prepared pursuant hereto shall register for resale at least the number of shares
of Common Stock equal to the Initial Required Registration Amount determined as of the date the Initial Registration Statement
is initially filed with the SEC, subject to adjustment as provided in Section 2(g). The Initial Registration Statement shall contain
(except if otherwise directed by the Required Holders) the “Plan of Distribution” and “Selling Stockholders”
sections in substantially the form attached hereto as Exhibit B. The Company shall use its commercially reasonable efforts
to have the Initial Registration Statement declared effective by the SEC as soon as practicable, but in no event later than the
Initial Effectiveness Deadline. By 9:30 a.m. New York time on the Business Day following the Initial Effective Date, the Company
shall file with the SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used in connection with sales
pursuant to such Initial Registration Statement.

 

(b)
Subsequent Mandatory Registrations. The Company shall prepare, and, as soon as practicable but in no event later than the
Subsequent Filing Deadline, file with the SEC a Subsequent Registration Statement on Form S-3 covering the resale of all of the
Subsequent Registrable Securities not previously registered on a Subsequent Registration Statement hereunder. In the event that
Form S-3 is unavailable for such a registration, the Company shall use such other form as is available for such a registration
on another appropriate form reasonably acceptable to the Required Holders, subject to the provisions of Section 2(f). Each Subsequent
Registration Statement prepared pursuant hereto shall register for resale at least that number of shares of Common Stock equal
to the Subsequent Required Registration Amount determined as of the date such Subsequent Registration Statement is initially filed
with the SEC, subject to adjustment as provided in Section 2(g). Each Subsequent Registration Statement shall contain (except
if otherwise directed by the Required Holders) the “Plan of Distribution” and “Selling Stockholders”
sections in substantially the form attached hereto as Exhibit B. The Company shall use its commercially reasonable efforts
to have each Subsequent Registration Statement declared effective by the SEC as soon as practicable, but in no event later than
the Subsequent Effectiveness Deadline. By 9:30 a.m. New York time on the Business Day following the Subsequent Effective Date,
the Company shall file with the SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used in connection
with sales pursuant to such Subsequent Registration Statement.

 

    	 	7	 

     

    

 

(c)
Additional Mandatory Registrations. The Company shall prepare, and, as soon as practicable but in no event later than the
Additional Filing Deadline, file with the SEC an Additional Registration Statement on Form S-3 covering the resale of all of the
Additional Registrable Securities not previously registered on an Additional Registration Statement hereunder. To the extent the
staff of the SEC does not permit the Additional Required Registration Amount to be registered on an Additional Registration Statement,
the Company shall file Additional Registration Statements successively trying to register on each such Additional Registration
Statement the maximum number of remaining Additional Registrable Securities until the Additional Required Registration Amount
has been registered with the SEC. In the event that Form S-3 is unavailable for such a registration, the Company shall use such
other form as is available for such a registration on another appropriate form reasonably acceptable to the Required Holders,
subject to the provisions of Section 2(f). Each Additional Registration Statement prepared pursuant hereto shall register for
resale at least that number of shares of Common Stock equal to the Additional Required Registration Amount determined as of the
date such Additional Registration Statement is initially filed with the SEC, subject to adjustment as provided in Section 2(g).
Each Additional Registration Statement shall contain (except if otherwise directed by the Required Holders) the “Plan
of Distribution” and “Selling Stockholders” sections in substantially the form attached hereto as
Exhibit B. The Company shall use its commercially reasonable efforts to have each Additional Registration Statement declared
effective by the SEC as soon as practicable, but in no event later than the Additional Effectiveness Deadline. By 9:30 a.m. New
York time on the Business Day following the Additional Effective Date, the Company shall file with the SEC in accordance with
Rule 424 under the 1933 Act the final prospectus to be used in connection with sales pursuant to such Additional Registration
Statement.

 

(d)
Allocation of Registrable Securities. The initial number of Registrable Securities included in any Registration Statement
and any increase or decrease in the number of Registrable Securities included therein shall be allocated pro rata among the Investors
based on the number of Registrable Securities held by each Investor at the time the Registration Statement covering such initial
number of Registrable Securities or increase or decrease thereof is declared effective by the SEC. In the event that an Investor
sells or otherwise transfers any of such Investor’s Registrable Securities, each transferee shall be allocated a pro rata
portion of the then remaining number of Registrable Securities included in such Registration Statement for such transferor. Any
shares of Common Stock included in a Registration Statement and which remain allocated to any Person which ceases to hold any
Registrable Securities covered by such Registration Statement shall be allocated to the remaining Investors, pro rata based on
the number of Registrable Securities then held by such Investors which are covered by such Registration Statement. In no event
shall the Company include any securities other than Registrable Securities on any Registration Statement without the prior written
consent of the Required Holders.

 

    	 	8	 

     

    

 

(e)
Legal Counsel. Subject to Section 5 hereof, the Required Holders shall have the right to select one legal counsel to review
and oversee any registration pursuant to this Section 2 (“Legal Counsel”), which shall be Schulte Roth &
Zabel LLP or such other counsel as thereafter designated by the Required Holders. The Company and Legal Counsel shall reasonably
cooperate with each other in performing the Company’s obligations under this Agreement.

 

(f)
Ineligibility for Form S-3. In the event that Form S-3 is not available for the registration of the resale of Registrable
Securities hereunder, the Company shall (i) register the resale of the Registrable Securities on Form S-1 or another appropriate
form reasonably acceptable to the Required Holders and (ii) undertake to register the Registrable Securities on Form S-3 as soon
as such form is available, provided that the Company shall maintain the effectiveness of the Registration Statement then in effect
until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared effective by the
SEC.

 

(g)
Sufficient Number of Shares Registered. In the event the number of shares available under a Registration Statement filed
pursuant to Section 2(a), Section 2(b) or Section 2(c) is insufficient to cover the Required Registration Amount of Registrable
Securities required to be covered by such Registration Statement or an Investor’s allocated portion of the Registrable Securities
pursuant to Section 2(d), the Company shall amend the applicable Registration Statement, or file a new Registration Statement
(on the short form available therefor, if applicable), or both, so as to cover at least the Required Registration Amount as of
the Trading Day immediately preceding the date of the filing of such amendment or new Registration Statement, in each case, as
soon as practicable, but in any event not later than fifteen (15) days after the necessity therefor arises. The Company shall
use its commercially reasonable efforts to cause such amendment and/or new Registration Statement to become effective as soon
as practicable following the filing thereof. For purposes of the foregoing provision, the number of shares available under a Registration
Statement shall be deemed “insufficient to cover all of the Registrable Securities” if at any time the number of shares
of Common Stock available for resale under the Registration Statement is less than the Required Registration Amount as of such
time. The calculation set forth in the foregoing sentence shall be made without regard to any limitations on the exercise of the
Warrants, and (i) until the Reservation Date, such calculation shall assume that the Series A Warrants and the Series B Warrants
are then exercisable in full into a number of shares of Common Stock equal to the sum of (x) the number of Series A Warrant Shares
issued and issuable pursuant to the Series A Warrants determined in accordance with Section 2(d) of the Series A Warrants assuming
a Reset Price (as defined in the Series A Warrants) equal to the Reset Floor Price without giving effect to any limitation on
exercise set forth therein, (y) the number of Series B Warrant Shares issued and issuable pursuant to the Series B Warrants assuming
that the Maximum Eligibility Number (as defined in the Series B Warrant) is determined based on a Reset Price (as defined in the
Series B Warrants) equal to the Reset Floor Price without giving effect to any limitation on exercise set forth therein, and (ii)
thereafter, 100% of the maximum number of shares of Common Stock as shall from time to time be necessary to effect the exercise
of all of the Warrants then outstanding, without giving effect to any limitation on exercise included herein.

 

    	 	9	 

     

    

 

(h)
Effect of Failure to File and Obtain and Maintain Effectiveness of Registration Statement. If (x) a Registration Statement
covering all of the Registrable Securities required to be covered thereby and required to be filed by the Company pursuant to
this Agreement is (A) not filed with the SEC on or before the applicable Filing Deadline (a “Filing Failure”)
or (B) not declared effective by the SEC on or before the applicable Effectiveness Deadline, (an “Effectiveness Failure”)
or (y) on any day after the applicable Effective Date sales of all of the Registrable Securities required to be included on such
Registration Statement cannot be made (other than during an Allowable Grace Period (as defined in Section 3(r)) pursuant to such
Registration Statement or otherwise (including, without limitation, because of the suspension of trading or any other limitation
imposed by an Eligible Market, a failure to keep such Registration Statement effective, a failure to disclose such information
as is necessary for sales to be made pursuant to such Registration Statement, a failure to register a sufficient number of shares
of Common Stock or a failure to maintain the listing of the Common Stock) (a “Maintenance Failure”), then,
as partial relief for the damages to any holder by reason of any such delay in or reduction of its ability to sell the Registrable
Securities (which remedy shall not be exclusive of any other remedies available at law or in equity, including, without limitation,
specific performance or the additional obligation of the Company to register any Cutback Shares), the Company shall pay to each
holder of Registrable Securities relating to such Registration Statement an amount in cash equal to the Applicable Percentage
of the aggregate Purchase Price (as such term is defined in the Securities Purchase Agreement) of such Investor’s Registrable
Securities whether or not included in such Registration Statement on each of the following dates: (i) the day of a Filing Failure;
(ii) the day of an Effectiveness Failure; (iii) the initial day of a Maintenance Failure; (iv) on the thirtieth day after the
date of a Filing Failure and every thirtieth day thereafter (pro rated for periods totaling less than thirty days) until such
Filing Failure is cured; (v) on the thirtieth day after the date of an Effectiveness Failure and every thirtieth day thereafter
(pro rated for periods totaling less than thirty days) until such Effectiveness Failure is cured; and (vi) on the thirtieth day
after the initial date of a Maintenance Failure and every thirtieth day thereafter (pro rated for periods totaling less than thirty
days) until such Maintenance Failure is cured. The payments to which a holder shall be entitled pursuant to this Section 2(h)
are referred to herein as “Registration Delay Payments.” In no event shall the aggregate amount of all Registration
Delay Payments payable to an Investor exceed 8.0% of the aggregate Purchase Price of such Investor’s Registrable Securities.
Registration Delay Payments shall be paid on the earlier of (I) the dates set forth above and (II) the third Business Day after
the event or failure giving rise to the Registration Delay Payments is cured. In the event the Company fails to make Registration
Delay Payments in a timely manner, such Registration Delay Payments shall bear interest at the rate of one and one-half percent
(1.5%) per month (prorated for partial months) until paid in full.

 

    	 	10	 

     

    

 

3.
Related Obligations.

 

At
such time as the Company is obligated to file a Registration Statement with the SEC pursuant to Section 2(a), 2(b), 2(c), 2(f)
or 2(g), the Company will use its commercially reasonable efforts to effect the registration of the Registrable Securities in
accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

 

(a)
The Company shall promptly prepare and file with the SEC a Registration Statement with respect to the Registrable Securities and
use its commercially reasonable efforts to cause such Registration Statement relating to the Registrable Securities to become
effective as soon as practicable after such filing (but in no event later than the Effectiveness Deadline). The Company shall
use commercially reasonable efforts to keep each Registration Statement effective pursuant to Rule 415 at all times until the
earlier of (i) the date as of which the Investors may sell all of the Registrable Securities covered by such Registration Statement
without restriction or limitation pursuant to Rule 144 and without the requirement to be in compliance with Rule 144(c)(1) (or
any successor thereto) promulgated under the 1933 Act or (ii) the date on which the Investors shall have sold all of the Registrable
Securities covered by such Registration Statement (the “Registration Period”). The Company shall ensure that
each Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the
statements therein (in the case of prospectuses, in the light of the circumstances in which they were made) not misleading. The
term “commercially reasonable efforts” shall mean, among other things, that the Company shall submit to the SEC, within
two (2) Business Days after the later of the date that (i) the Company learns that no review of a particular Registration Statement
will be made by the staff of the SEC or that the staff has no further comments on a particular Registration Statement, as the
case may be, and (ii) the approval of Legal Counsel pursuant to Section 3(c) (which approval is immediately sought), a request
for acceleration of effectiveness of such Registration Statement to a time and date not later than two (2) Business Days after
the submission of such request. The Company shall respond in writing to comments made by the SEC in respect of a Registration
Statement as soon as practicable, but in no event later than fifteen (15) days after the receipt of comments by or notice from
the SEC that an amendment is required in order for a Registration Statement to be declared effective.

 

(b)
The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to a Registration
Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to
Rule 424 promulgated under the 1933 Act, as may be necessary to keep such Registration Statement effective at all times during
the Registration Period, and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of
all Registrable Securities of the Company covered by such Registration Statement until such time as all of such Registrable Securities
shall have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth
in such Registration Statement. In the case of amendments and supplements to a Registration Statement which are required to be
filed pursuant to this Agreement (including pursuant to this Section 3(b)) by reason of the Company filing a report on Form 10-K,
Form 10-Q or Form 8-K or any analogous report under the Securities Exchange Act of 1934, as amended (the “1934 Act”),
the Company shall have incorporated such report by reference into such Registration Statement, if applicable, or shall file such
amendments or supplements with the SEC on the same day on which the 1934 Act report is filed which created the requirement for
the Company to amend or supplement such Registration Statement.

 

    	 	11	 

     

    

 

(c)
The Company shall (A) permit Legal Counsel to review and comment upon (i) a Registration Statement at least three (3) Business
Days prior to its filing with the SEC and (ii) all amendments and supplements to all Registration Statements (except for Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any similar or successor reports) within
a reasonable number of days prior to their filing with the SEC, and (B) not file any Registration Statement or amendment or supplement
thereto in a form to which Legal Counsel reasonably objects. The Company shall not submit a request for acceleration of the effectiveness
of a Registration Statement or any amendment or supplement thereto without the prior approval of Legal Counsel, which consent
shall not be unreasonably withheld. The Company shall furnish to Legal Counsel, without charge, (i) copies of any correspondence
from the SEC or the staff of the SEC to the Company or its representatives relating to any Registration Statement, (ii) unless
the following are filed with the SEC through EDGAR and are available to the public through the EDGAR system, promptly after the
same is prepared and filed with the SEC, one copy of any Registration Statement and any amendment(s) thereto, including financial
statements and schedules, all documents incorporated therein by reference, if requested by an Investor, and all exhibits and (iii)
unless the following are filed with the SEC through EDGAR and are available to the public through the EDGAR system, upon the effectiveness
of any Registration Statement, one copy of the prospectus included in such Registration Statement and all amendments and supplements
thereto. The Company shall reasonably cooperate with Legal Counsel in performing the Company’s obligations pursuant to this
Section 3.

 

(d)
The Company shall furnish to each Investor whose Registrable Securities are included in any Registration Statement, without charge,
upon request, (i) promptly after the same is prepared and filed with the SEC, at least one copy of such Registration Statement
and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference, if
requested by an Investor, all exhibits and each preliminary prospectus, (ii) upon the effectiveness of any Registration Statement,
ten (10) copies of the prospectus included in such Registration Statement and all amendments and supplements thereto (or such
other number of copies as such Investor may reasonably request) and (iii) such other documents, including copies of any preliminary
or final prospectus, as such Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable
Securities owned by such Investor.

 

(e)
The Company shall use its commercially reasonable efforts to (i) register and qualify, unless an exemption from registration and
qualification applies, the resale by Investors of the Registrable Securities covered by a Registration Statement under such other
securities or “blue sky” laws of all applicable jurisdictions in the United States, (ii) prepare and file in those
jurisdictions such amendments (including post-effective amendments) and supplements to such registrations and qualifications as
may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be
reasonably necessary to maintain such registrations and qualifications in effect at all times during the Registration Period,
and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions;
provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to
do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(e), (y) subject itself
to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The
Company shall promptly notify Legal Counsel and each Investor who holds Registrable Securities of the receipt by the Company of
any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for
sale under the securities or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice
of the initiation or threatening of any proceeding for such purpose.

 

    	 	12	 

     

    

 

(f)
The Company shall notify Legal Counsel and each Investor in writing of the happening of any event, as promptly as practicable
after becoming aware of such event but in any event on the same Trading Day as such event, as a result of which the prospectus
included in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state
a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading (provided that in no event shall such notice contain any material, nonpublic information),
and, subject to Section 3(r), promptly prepare a supplement or amendment to such Registration Statement to correct such untrue
statement or omission, and, if requested by an Investor, unless filed with the SEC through EDGAR and available to the public through
the EDGAR system, deliver one copy of such supplement or amendment to Legal Counsel and each Investor (or such other number of
copies as Legal Counsel or such Investor may reasonably request). The Company shall also promptly notify Legal Counsel and each
Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and when a
Registration Statement or any post-effective amendment has become effective (notification of such effectiveness shall be delivered
to Legal Counsel and each Investor by facsimile or email on the same day of such effectiveness and by overnight mail), (ii) of
any request by the SEC for amendments or supplements to a Registration Statement or related prospectus or related information
and (iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be
appropriate. By 9:30 a.m. New York City time on the Trading Day following the date any post-effective amendment has become effective,
the Company shall file with the SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used in connection
with sales pursuant to such Registration Statement.

 

(g)
The Company shall use its commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness
of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment
and to notify Legal Counsel and each Investor who holds Registrable Securities being sold of the issuance of such order and the
resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

(h)
If any Investor is required under applicable securities laws to be described in the Registration Statement as an underwriter or
an Investor believes that it could reasonably be deemed to be an underwriter of Registrable Securities, at the reasonable request
of such Investor, the Company shall furnish to such Investor, on the date of the effectiveness of the Registration Statement and
thereafter from time to time on such dates as an Investor may reasonably request (i) a letter, dated such date, from the Company’s
independent certified public accountants in form and substance as is customarily given by independent certified public accountants
to underwriters in an underwritten public offering, addressed to the Investors, and (ii) an opinion, dated as of such date, of
counsel representing the Company for purposes of such Registration Statement, in form, scope and substance as is customarily given
in an underwritten public offering, addressed to the Investors.

 

    	 	13	 

     

    

 

(i)
If any Investor is required under applicable securities laws to be described in the Registration Statement as an underwriter or
an Investor believes that it could reasonably be deemed to be an underwriter of Registrable Securities, the Company shall make
available for inspection by (i) such Investor, (ii) Legal Counsel and (iii) one firm of accountants or other agents retained by
the Investors (collectively, the “Inspectors”), all pertinent financial and other records, and pertinent corporate
documents and properties of the Company (collectively, the “Records”), as shall be reasonably deemed necessary
by each Inspector, and cause the Company’s officers, directors and employees to supply all information which any Inspector
may reasonably request; provided, however, that each Inspector shall agree to hold in strict confidence and shall not make any
disclosure (except to an Investor) or use of any Record or other information which the Company determines in good faith to be
confidential, and of which determination the Inspectors are so notified, unless (a) the disclosure of such Records is necessary
to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required under the 1933 Act, (b)
the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government body of
competent jurisdiction, or (c) the information in such Records has been made generally available to the public other than by disclosure
in violation of this Agreement. Each Investor agrees that it shall, upon learning that disclosure of such Records is sought in
or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to the Company and allow
the Company, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the
Records deemed confidential. Nothing herein (or in any other confidentiality agreement between the Company and any Investor) shall
be deemed to limit the Investors’ ability to sell Registrable Securities in a manner which is otherwise consistent with
applicable laws and regulations.

 

(j)
The Company shall hold in confidence and not make any disclosure of information concerning an Investor provided to the Company
unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of
such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release
of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of
competent jurisdiction, or (iv) such information has been made generally available to the public other than by disclosure in violation
of this Agreement or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information
concerning an Investor is sought in or by a court or governmental body of competent jurisdiction or through other means, give
prompt written notice to such Investor and allow such Investor, at the Investor’s expense, to undertake appropriate action
to prevent disclosure of, or to obtain a protective order for, such information.

 

(k)
The Company shall use its commercially reasonable efforts either to (i) cause all of the Registrable Securities covered by a Registration
Statement to be listed on each securities exchange on which securities of the same class or series issued by the Company are then
listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange or (ii) secure
the inclusion for quotation of all of the Registrable Securities on the Principal Market or (iii) if, despite the Company’s
commercially reasonable efforts, the Company is unsuccessful in satisfying the preceding clauses (i) and (ii), to secure the inclusion
for quotation on an Eligible Market for such Registrable Securities and, without limiting the generality of the foregoing, to
use its commercially reasonable efforts to arrange for at least two market makers to register with the Financial Industry Regulatory
Authority, Inc. (“FINRA”) as such with respect to such Registrable Securities. The Company shall pay all fees
and expenses in connection with satisfying its obligation under this Section 3(k).

 

    	 	14	 

     

    

 

(l)
The Company shall cooperate with the Investors who hold Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities
to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts, as the
case may be, as the Investors may reasonably request and registered in such names as the Investors may request.

 

(m)
If requested by an Investor, the Company shall as soon as practicable (i) incorporate in a prospectus supplement or post-effective
amendment such information as an Investor reasonably requests to be included therein relating to the sale and distribution of
Registrable Securities, including, without limitation, information with respect to the number of Registrable Securities being
offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be
sold in such offering; (ii) make all required filings of such prospectus supplement or post-effective amendment after being notified
of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments
to any Registration Statement if reasonably requested by an Investor holding any Registrable Securities.

 

(n)
The Company shall use its commercially reasonable efforts to cause the Registrable Securities covered by a Registration Statement
to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition
of such Registrable Securities.

 

(o)
The Company shall make generally available to its security holders as soon as practical, but not later than ninety (90) days after
the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions
of Rule 158 under the 1933 Act) covering a twelve-month period beginning not later than the first day of the Company’s fiscal
quarter next following the applicable Effective Date of a Registration Statement.

 

(p)
The Company shall otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the
SEC in connection with any registration hereunder.

 

(q)
Within two (2) Business Days after a Registration Statement which covers Registrable Securities is declared effective by the SEC,
the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable
Securities (with copies to the Investors whose Registrable Securities are included in such Registration Statement) confirmation
that such Registration Statement has been declared effective by the SEC in the form attached hereto as Exhibit A.

 

    	 	15	 

     

    

 

(r)
Notwithstanding anything to the contrary herein, at any time after the Effective Date, the Company may delay the disclosure of
material, non-public information concerning the Company the disclosure of which at the time is not, in the good faith opinion
of the Board of Directors of the Company and its counsel, in the best interest of the Company and, in the opinion of counsel to
the Company, otherwise required (a “Grace Period”); provided, that the Company shall promptly (i) notify the
Investors in writing of the existence of material, non-public information giving rise to a Grace Period (provided that in each
notice the Company will not disclose the content of such material, non-public information to the Investors) and the date on which
the Grace Period will begin, and (ii) notify the Investors in writing of the date on which the Grace Period ends; and, provided
further, that no Grace Period shall exceed five (5) consecutive Trading Days and during any three hundred sixty five (365) day
period such Grace Periods shall not exceed an aggregate of forty (40) days and the first day of any Grace Period must be at least
five (5) Trading Days after the last day of any prior Grace Period (each, an “Allowable Grace Period”). For
purposes of determining the length of a Grace Period above, the Grace Period shall begin on and include the date the Investors
receive the notice referred to in clause (i) and shall end on and include the later of the date the Investors receive the notice
referred to in clause (ii) and the date referred to in such notice. The provisions of Section 3(g) hereof shall not be applicable
during the period of any Allowable Grace Period. Upon expiration of the Grace Period, the Company shall again be bound by the
first sentence of Section 3(f) with respect to the information giving rise thereto unless such material, non-public information
is no longer applicable. Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended
shares of Common Stock to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection
with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale, prior to the Investor’s
receipt of the notice of a Grace Period and for which the Investor has not yet settled.

 

(s)
Neither the Company nor any Subsidiary or affiliate thereof shall identify any Investor as an underwriter in any public disclosure
or filing with the SEC, the Principal Market or any Eligible Market and any Investor being deemed an underwriter by the SEC shall
not relieve the Company of any obligations it has under this Agreement or any other Transaction Document (as defined in the Securities
Purchase Agreement); provided, however, that the foregoing shall not prohibit the Company from including the disclosure found
in the “Plan of Distribution” section attached hereto as Exhibit B in the Registration Statement.

 

(t)
Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company or any of its Subsidiaries,
on or after the date of this Agreement, enter into any agreement with respect to its securities, that would have the effect of
impairing the rights granted to the Buyers in this Agreement or otherwise conflicts with the provisions hereof.

 

4.
Obligations of the Investors.

 

(a)
At least five (5) Business Days prior to the first anticipated Filing Date of a Registration Statement, the Company shall notify
each Investor in writing of the information the Company requires from each such Investor if such Investor elects to have any of
such Investor’s Registrable Securities included in such Registration Statement. It shall be a condition precedent to the
obligations of the Company to complete any registration pursuant to this Agreement with respect to the Registrable Securities
of a particular Investor that such Investor shall furnish to the Company such information regarding itself, the Registrable Securities
held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to
effect and maintain the effectiveness of the registration of such Registrable Securities and shall execute such documents in connection
with such registration as the Company may reasonably request.

 

    	 	16	 

     

    

 

(b)
Each Investor, by such Investor’s acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of any Registration Statement hereunder, unless such Investor
has notified the Company in writing of such Investor’s election to exclude all of such Investor’s Registrable Securities
from such Registration Statement.

 

(c)
Each Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in
Section 3(g) or the first sentence of Section 3(f), such Investor will immediately discontinue disposition of Registrable Securities
pursuant to any Registration Statement(s) covering such Registrable Securities until such Investor’s receipt of copies of
the supplemented or amended prospectus as contemplated by Section 3(g) or the first sentence of Section 3(f) or receipt of notice
that no supplement or amendment is required. Notwithstanding anything to the contrary, the Company shall cause its transfer agent
to deliver unlegended shares of Common Stock to a transferee of an Investor in accordance with the terms of the Securities Purchase
Agreement in connection with any sale of Registrable Securities with respect to which an Investor has entered into a contract
for sale prior to the Investor’s receipt of a notice from the Company of the happening of any event of the kind described
in Section 3(g) or the first sentence of Section 3(f) and for which the Investor has not yet settled.

 

(d)
Each Investor covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable
to it or an exemption therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

5.
Expenses of Registration.

 

All
reasonable expenses, other than underwriting discounts and commissions, incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees,
printers and accounting fees, and fees and disbursements of counsel for the Company shall be paid by the Company. The Company
shall also reimburse the Investors for the fees and disbursements of Legal Counsel in connection with the registration, filing
or qualification pursuant to Sections 2 and 3 of this Agreement, which amount shall be limited to $10,000 for each such registration,
filing or qualification without the prior written consent of the Company

 

    	 	17	 

     

    

 

6.
Indemnification.

 

In
the event any Registrable Securities are included in a Registration Statement under this Agreement:

 

(a)
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend each Investor,
the directors, officers, partners, members, employees, agents, representatives of, and each Person, if any, who controls any Investor
within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified Person”), against any losses, claims,
damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement
or expenses, joint or several (collectively, “Claims”), incurred in investigating, preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party
is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any
untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto
or in any filing made in connection with the qualification of the offering under the securities or other “blue sky”
laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the omission or
alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading,
(ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus if used prior
to the effective date of such Registration Statement, or contained in the final prospectus (as amended or supplemented, if the
Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any
material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein
were made, not misleading, (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law,
including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of
the Registrable Securities pursuant to a Registration Statement or (iv) any violation of this Agreement (the matters in the foregoing
clauses (i) through (iv) being, collectively, “Violations”). For the avoidance of doubt, the Violations set
forth in this Section 6(a) are intended to apply, and shall apply, to direct claims asserted by any Buyer against the Company
as well as any third party claims asserted by an Indemnified Person (other than a Buyer) against the Company. Subject to Section
6(c), the Company shall reimburse the Indemnified Persons, promptly as such expenses are incurred and are due and payable, for
any legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to
a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with
information furnished in writing to the Company by such Indemnified Person for such Indemnified Person expressly for use in connection
with the preparation of the Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was
timely made available by the Company pursuant to Section 3(d); and (ii) shall not apply to amounts paid in settlement of any Claim
if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld
or delayed. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified
Person and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9.

 

    	 	18	 

     

    

 

(b)
In connection with any Registration Statement in which an Investor is participating, each such Investor agrees to severally and
not jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the
Company, each of its directors, each of its officers who signs the Registration Statement and each Person, if any, who controls
the Company within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified Party”), against any
Claim or Indemnified Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as
such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and only to the extent,
that such Violation occurs in reliance upon and in conformity with written information furnished to the Company by such Investor
expressly for use in connection with such Registration Statement; and, subject to Section 6(c), such Investor shall reimburse
the Indemnified Party for any legal or other expenses reasonably incurred by an Indemnified Party in connection with investigating
or defending any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement
with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement
is effected without the prior written consent of such Investor, which consent shall not be unreasonably withheld or delayed; provided,
further, however, that the Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages
as does not exceed the net proceeds to such Investor as a result of the sale of Registrable Securities pursuant to such Registration
Statement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified
Party and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9.

 

(c)
Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any
action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified
Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, and, the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its
own counsel with the fees and expenses of not more than one counsel for all such Indemnified Person or Indemnified Party to be
paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the Indemnified Person or Indemnified Party,
as applicable, the representation by such counsel of the Indemnified Person or Indemnified Party, as the case may be, and the
indemnifying party would be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified
Party and any other party represented by such counsel in such proceeding. In the case of an Indemnified Person, legal counsel
referred to in the immediately preceding sentence shall be selected by the Investors holding at least a majority in interest of
the Registrable Securities included in the Registration Statement to which the Claim relates. The Indemnified Party or Indemnified
Person shall reasonably cooperate with the indemnifying party in connection with any negotiation or defense of any such action
or Claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Indemnified
Party or Indemnified Person which relates to such action or Claim. The indemnifying party shall keep the Indemnified Party or
Indemnified Person fully apprised at all times as to the status of the defense or any settlement negotiations with respect thereto.
No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its prior written
consent, provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying
party shall, without the prior written consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment
or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant
or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability in respect to such Claim or litigation
and such settlement shall not include any admission as to fault on the part of the Indemnified Party. Following indemnification
as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person
with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure
to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not
relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to
the extent that the indemnifying party is prejudiced in its ability to defend such action. The provisions of this Section 6(c)
shall not apply to direct claims between the Company and a Buyer.

 

    	 	19	 

     

    

 

(d)
The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

(e)
The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

7.
Contribution.

 

To
the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make
the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent
permitted by law; provided, however, that: (i) no Person involved in the sale of Registrable Securities which Person is guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) in connection with such sale shall be entitled
to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation;
and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the amount of net proceeds received
by such seller from the sale of such Registrable Securities pursuant to such Registration Statement.

 

8.
Reports Under the 1934 Act.

 

With
a view to making available to the Investors the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule
or regulation of the SEC that may at any time permit the Investors to sell securities of the Company to the public without registration
(“Rule 144”), the Company agrees to, so long as an Investor owns Registrable Securities:

 

(a)
make and keep public information available, as those terms are understood and defined in Rule 144;

 

    	 	20	 

     

    

 

(b)
file with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act
so long as the Company remains subject to such requirements and the filing of such reports and other documents is required for
the applicable provisions of Rule 144; and

 

(c)
furnish to each Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written statement
by the Company, if true, that it has complied with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii)
a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company
(unless such report or document is already publicly available), and (iii) such other information as may be reasonably requested
to permit the Investors to sell such securities pursuant to Rule 144 without registration.

 

9.
Assignment of Registration Rights.

 

The
rights under this Agreement shall be automatically assignable by the Investors to any transferee of all or any portion of such
Investor’s Registrable Securities if: (i) the Investor agrees in writing with the transferee or assignee to assign such
rights, and a copy of such agreement is furnished to the Company within a reasonable time after such assignment; (ii) the Company
is, within a reasonable time after such transfer or assignment, furnished with written notice of (a) the name and address of such
transferee or assignee, and (b) the securities with respect to which such registration rights are being transferred or assigned;
(iii) immediately following such transfer or assignment the further disposition of such securities by the transferee or assignee
is restricted under the 1933 Act or applicable state securities laws; (iv) at or before the time the Company receives the written
notice contemplated by clause (ii) of this sentence the transferee or assignee agrees in writing with the Company to be bound
by all of the provisions contained herein; and (v) such transfer shall have been made in accordance with the applicable requirements
of the Securities Purchase Agreement.

 

10.
Amendment of Registration Rights.

 

Provisions
of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company and the Required Holders. Any amendment or waiver
effected in accordance with this Section 10 shall be binding upon each Investor and the Company. No such amendment shall be effective
to the extent that it applies to less than all of the holders of the Registrable Securities. No consideration shall be offered
or paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration
(other than the reimbursement of legal fees) also is offered to all of the parties to this Agreement.

 

11.
Miscellaneous.

 

(a)
Notwithstanding anything herein to the contrary, this Agreement shall not be effective unless and until the transactions contemplated
by the Merger Agreement are consummated.

 

    	 	21	 

     

    

 

(b)
A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from such record
owner of such Registrable Securities.

 

(c)
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon delivery, when
sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party), (iii) upon delivery, when sent by electronic mail (provided that the sending party does not receive an automated rejection
notice); or (iv) one Business Day after deposit with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses, facsimile numbers and e-mail addresses for such communications shall
be:

 

If
to the Company:

 

Chanticleer
Holdings, Inc.

7621
Little Avenue, Suite 414

Charlotte,
NC 28226

	 	Telephone:	(704)
    366-5122
	 	Facsimile:	(704)
    366-2463
	 	Attention:	Michael
    D. Pruitt
	 	E-mail:	mp@chanticleerholdings.com

 

    	 	22	 

     

    

 

With
a copy (for informational purposes only) to:

 

Lowenstein
Sandler LLP

1251
Avenue of the Americas

New
York, New York 10020

	 	Telephone:	(973) 597-2476
	 	Facsimile:	(973) 597-2477
	 	Attention:	Steven M. Skolnick, Esq.
	 	E-mail:	sskolnick@lowenstein.com

 

and,
if on or prior to the Closing Date:

 

Libertas
Law Group, Inc.

225
Santa Monica Boulevard, 5th Floor

Santa
Monica, CA 90401

	 	Telephone:	(949) 355-5405
	 	Facsimile:	(310) 356-1922
	 	Attention:	Ruba Qashu, Esq.
	 	E-mail:	ruba@libertaslaw.com

 

If
to the Transfer Agent:

 

Securities
Transfer Corporation

2901
N. Dallas Parkway, Suite 380

Plano,
Texas 75093

	 	Telephone:	(469) 633-0101
	 	Facsimile:	(469) 633-0088
	 	Attention:	Matthew Smith
	 	E-mail:	smith@stctransfer.com

 

If
to Legal Counsel:

 

Schulte
Roth & Zabel LLP

919
Third Avenue

New
York, New York 10022

	 	Telephone:	(212) 756-2000
	 	Facsimile:	(212) 593-5955
	 	Attention:	Eleazer Klein, Esq.
	 	Email:	eleazer.klein@srz.com

 

If
to a Buyer, to its address, facsimile number or email address set forth on the Schedule of Buyers attached hereto, with copies
to such Buyer’s representatives as set forth on the Schedule of Buyers, or to such other address, facsimile number and/or
email address to the attention of such other Person as the recipient party has specified by written notice given to each other
party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine
or e-mail transmission containing the time, date, recipient facsimile number or e-mail address and an image of the first page
of such transmission or (C) provided by a courier or overnight courier service shall be rebuttable evidence of personal service,
receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or
(iii) above, respectively.

 

    	 	23	 

     

    

 

(d)
Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such
right or remedy, shall not operate as a waiver thereof.

 

(e)
All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether
of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than
the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party
hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY
HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING
OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(f)
If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity
or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

(g)
This Agreement, the other Transaction Documents (as defined in the Securities Purchase Agreement) and the instruments referenced
herein and therein constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof.
There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein.
This Agreement, the other Transaction Documents and the instruments referenced herein and therein supersede all prior agreements
and understandings among the parties hereto with respect to the subject matter hereof and thereof.

 

    	 	24	 

     

    

 

(h)
Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors
and assigns of each of the parties hereto.

 

(i)
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

(j)
This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile
transmission or electronic mail of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

(k)
Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(l)
All consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by the Required Holders, determined as if all of the Warrants held by Investors then outstanding
have been exercised for Registrable Securities without regard to any limitations on exercise of the Warrants.

 

(m)
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and
no rules of strict construction will be applied against any party.

 

(n)
This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is
not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(o)
The obligations of each Investor hereunder are several and not joint with the obligations of any other Investor, and no provision
of this Agreement is intended to confer any obligations on any Investor vis-à-vis any other Investor. Nothing contained
herein, and no action taken by any Investor pursuant hereto, shall be deemed to constitute the Investors as a partnership, an
association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in
concert or as a group with respect to such obligations or the transactions contemplated herein.

 

*
* * * * *

 

[Signature
Page Follows]

 

    	 	25	 

     

    

 

IN
WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this Registration Rights Agreement
to be duly executed as of the date first written above.

 

	 	COMPANY:
    
	 	 
	 	Chanticleer
    Holdings, Inc.
	 	 
	 	By:	/s/
    Michael D. Pruitt
	 	Name:	Michael
    D. Pruitt
	 	Title:	Chief
    Executive Officer

 

    	 	 	 

     

    

 

SCHEDULE
OF BUYERS

 

	Buyer	 	Buyer
        Address, Facsimile

        Number
        and E-mail
	 	Buyer’s
        Representative’s Address, 

        Facsimile
        Number and E-Mail

	 	 	 	 	 

 

    	 	 	 

     

    

 

EXHIBIT
A

FORM
OF NOTICE OF EFFECTIVENESS

OF
REGISTRATION STATEMENT

 

Securities
Transfer Corporation

2901
N Dallas Parkway, Suite 380

Plano,
TX 75093

Telephone:
(469) 633-0101

Attention:
Matthew Smith

E-mail:
smith@stctransfer.com

 

Re:
Chanticleer Holdings, Inc.

 

Ladies
and Gentlemen:

 

[We
are][I am] counsel to Chanticleer Holdings, Inc., a Delaware corporation to be renamed “Sonnet BioTherapeutics Holdings,
Inc.” pursuant to that certain Agreement and Plan of Merger among the Company, Biosub Inc., a Delaware corporation, and
Sonnet Private Company, dated as of October 10, 2019 (the “Company”), and have represented the Company in connection
with that certain Securities Purchase Agreement, dated as of February [●], 2020 (the “Securities Purchase Agreement”),
entered into by and among the Company, Sonnet BioTherapeutics, Inc., a New Jersey corporation (“Sonnet Private Company”),
and the buyers named therein (collectively, the “Holders”) pursuant to which Sonnet Private Company issued
to the Holders shares of common stock, no par value per share, of Sonnet Private Company, and the Company issued to the Holders
two series of warrants (the “Warrants”) exercisable for shares of the Company’s common stock, par value
$0.0001 per share (the “Common Stock”). Pursuant to the Securities Purchase Agreement, the Company also has
entered into a Registration Rights Agreement with the Holders (the “Registration Rights Agreement”) pursuant
to which the Company agreed, among other things, to register the resale of the Registrable Securities (as defined in the Registration
Rights Agreement), including the shares of Common Stock issuable upon exercise of the Warrants under the Securities Act of 1933,
as amended (the “1933 Act”). In connection with the Company’s obligations under the Registration Rights
Agreement, on ____________ ___, 20__, the Company filed a Registration Statement on Form S-3 (File No. 333-_____________) (the
“Registration Statement”) with the Securities and Exchange Commission (the “SEC”) relating
to the Registrable Securities which names each of the Holders as a selling stockholder thereunder.

 

In
connection with the foregoing, [we][I] advise you that a member of the SEC’s staff has advised [us][me] by telephone that
the SEC has entered an order declaring the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS]
on [ENTER DATE OF EFFECTIVENESS] and [we][I] have no knowledge, after telephonic inquiry of a member of the
SEC’s staff, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are
pending before, or threatened by, the SEC and the Registrable Securities are available for resale under the 1933 Act pursuant
to the Registration Statement.

 

    		A-1	 

     

    

 

This
letter shall serve as our standing instruction to you that the shares of Common Stock are freely transferable by the Holders pursuant
to the Registration Statement. You need not require further letters from us to effect any future legend-free issuance or reissuance
of shares of Common Stock to the Holders as contemplated by the Company’s Irrevocable Transfer Agent Instructions dated
[●].

 

	 	Very
    truly yours,
	 	 
	 	[ISSUER’S
    COUNSEL]
	 	 	 
	 	By:	            

 

CC:
[LIST NAMES OF HOLDERS]

 

    		A-2	 

     

    

 

EXHIBIT
B

SELLING
STOCKHOLDERS

 

The
shares of common stock being offered by the selling stockholders are those issuable to the selling stockholders, upon exercise
of the warrants. For additional information regarding the issuances of those shares of common stock and the warrants, see “Private
Placement of Common Shares and Warrants” above. We are registering the Common Stock in order to permit the selling stockholders
to offer the shares for resale from time to time. Except for the ownership of the shares of common stock and the warrants, the
selling stockholders have not had any material relationship with us within the past three years.

 

The
table below lists the selling stockholders and other information regarding the beneficial ownership of the shares of common stock
by each of the selling stockholders. The second column lists the number of shares of common stock beneficially owned by each selling
stockholder, based on its ownership of the shares of common stock and the warrants, as of ________, 20__, assuming exercise of
the warrants held by the selling stockholders on that date, without regard to any limitations on exercises.

 

The
third column lists the shares of common stock being offered by this prospectus by the selling stockholders.

 

In
accordance with the terms of a registration rights agreement with the selling stockholders, this prospectus generally covers the
resale of the maximum number of shares of common stock issuable upon exercise of the related warrants, determined as if the outstanding
warrants were exercised in full as of the trading day immediately preceding the date this registration statement was initially
filed with the SEC, each as of the trading day immediately preceding the applicable date of determination and all subject to adjustment
as provided in the registration right agreement, without regard to any limitations on the exercise of the warrants and until the
Reservation Date, this registration statement registers a number of shares of common stock issued and issuable pursuant to the
Series A Warrants and Series B Warrants equal to the sum of (x) the number of Series A Warrant Shares issued and issuable pursuant
to the Series A Warrants determined in accordance with Section 2(d) of the Series A Warrants assuming a Reset Price (as defined
in the Series A Warrants) equal to the Reset Floor Price (as defined in the warrants) without giving effect to any limitation
on exercise set forth therein, (y) the number of Series B Warrant Shares issued and issuable pursuant to the Series B Warrants
assuming that the Maximum Eligibility Number (as defined in the Series B Warrant) is determined based on a Reset Price (as defined
in the Series B Warrants) equal to the Reset Floor Price without giving effect to any limitation on exercise set forth therein
and (B) thereafter, 100% of the maximum number of shares of Common Stock issuable upon exercise of the Series A Warrants and the
Series B Warrants as shall from time to time be necessary to effect the exercise of all of the Warrants then outstanding without
giving effect to any limitation on exercise set forth in the Warrants. The fourth column assumes the sale of all of the shares
offered by the selling stockholders pursuant to this prospectus.

 

Under
the terms of the warrants, a selling stockholder may not exercise the warrants to the extent such exercise would cause such selling
stockholder, together with its affiliates, to beneficially own a number of shares of common stock which would exceed 4.99% or
9.99%, as applicable, of our then outstanding common stock following such exercise, excluding for purposes of such determination
common stock issuable upon exercise of the warrants which have not been exercised. The number of shares in the second column does
not reflect this limitation. The selling stockholders may sell all, some or none of their shares in this offering. See “Plan
of Distribution.”

 

    	 	Annex I-1	 

     

    

 

	Name
    of Selling Stockholder	 	Number
    of Shares of Common Stock Owned Prior to Offering	 	Maximum
    Number of Shares of Common Stock to be Sold Pursuant to this Prospectus	 	Number
    of Shares of Common Stock Owned After Offering	 	Percentage
    of Shares of Common Stock Owned After Offering if Greater than 1%

 

    	 	Annex I-2	 

     

    

 

PLAN
OF DISTRIBUTION

 

We
are registering the shares of common stock issued and issuable upon exercise of the warrants to permit the resale of these shares
of common stock by the holders of the common stock warrants from time to time after the date of this prospectus. We will not receive
any of the proceeds from the sale by the selling stockholders of the shares of common stock. We will bear all fees and expenses
incident to our obligation to register the shares of common stock.

 

The
selling stockholders may sell all or a portion of the shares of common stock beneficially owned by them and offered hereby from
time to time directly or through one or more underwriters, broker-dealers or agents. If the shares of common stock are sold through
underwriters or broker-dealers, the selling stockholders will be responsible for underwriting discounts or commissions or agent’s
commissions. The shares of common stock may be sold in one or more transactions at fixed prices, at prevailing market prices at
the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in
transactions, which may involve crosses or block transactions,

 

	 	●	on
    any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale;
	 	 	 
	 	●	in
    the over-the-counter market;
	 	 	 
	 	●	in
    transactions otherwise than on these exchanges or systems or in the over-the-counter market;
	 	 	 
	 	●	through
    the writing of options, whether such options are listed on an options exchange or otherwise;
	 	 	 
	 	●	ordinary
    brokerage transactions and transactions in which the broker-dealer solicits purchasers;
	 	 	 
	 	●	block
    trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block
    as principal to facilitate the transaction;
	 	 	 
	 	●	purchases
    by a broker-dealer as principal and resale by the broker-dealer for its account;
	 	 	 
	 	●	an
    exchange distribution in accordance with the rules of the applicable exchange;
	 	 	 
	 	●	privately
    negotiated transactions;
	 	 	 
	 	●	short
    sales;
	 	 	 
	 	●	sales
    pursuant to Rule 144;
	 	 	 
	 	●	broker-dealers
    may agree with the selling securityholders to sell a specified number of such shares at a stipulated price per share;
	 	 	 
	 	●	a
    combination of any such methods of sale; and
	 	 	 
	 	●	any
    other method permitted pursuant to applicable law.

 

    	 	Annex I-3	 

     

    

 

If
the selling stockholders effect such transactions by selling shares of common stock to or through underwriters, broker-dealers
or agents, such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions
from the selling stockholders or commissions from purchasers of the shares of common stock for whom they may act as agent or to
whom they may sell as principal (which discounts, concessions or commissions as to particular underwriters, broker-dealers or
agents may be in excess of those customary in the types of transactions involved). In connection with sales of the shares of common
stock or otherwise, the selling stockholders may enter into hedging transactions with broker-dealers, which may in turn engage
in short sales of the shares of common stock in the course of hedging in positions they assume. The selling stockholders may also
sell shares of common stock short and deliver shares of common stock covered by this prospectus to close out short positions and
to return borrowed shares in connection with such short sales. The selling stockholders may also loan or pledge shares of common
stock to broker-dealers that in turn may sell such shares.

 

The
selling stockholders may pledge or grant a security interest in some or all of the warrants or shares of common stock owned by
them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell
the shares of common stock from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3)
or other applicable provision of the Securities Act of 1933, as amended, amending, if necessary, the list of selling stockholders
to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus. The selling
stockholders also may transfer and donate the shares of common stock in other circumstances in which case the transferees, donees,
pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

 

The
selling stockholders and any broker-dealer participating in the distribution of the shares of common stock may be deemed to be
“underwriters” within the meaning of the Securities Act, and any commission paid, or any discounts or concessions
allowed to, any such broker-dealer may be deemed to be underwriting commissions or discounts under the Securities Act. At the
time a particular offering of the shares of common stock is made, a prospectus supplement, if required, will be distributed which
will set forth the aggregate amount of shares of common stock being offered and the terms of the offering, including the name
or names of any broker-dealers or agents, any discounts, commissions and other terms constituting compensation from the selling
stockholders and any discounts, commissions or concessions allowed or reallowed or paid to broker-dealers.

 

Under
the securities laws of some states, the shares of common stock may be sold in such states only through registered or licensed
brokers or dealers. In addition, in some states the shares of common stock may not be sold unless such shares have been registered
or qualified for sale in such state or an exemption from registration or qualification is available and is complied with.

 

There
can be no assurance that any selling stockholder will sell any or all of the shares of common stock registered pursuant to the
registration statement, of which this prospectus forms a part.

 

    	 	Annex I-4	 

     

    

 

The
selling stockholders and any other person participating in such distribution will be subject to applicable provisions of the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder, including, without limitation, Regulation M of the
Exchange Act, which may limit the timing of purchases and sales of any of the shares of common stock by the selling stockholders
and any other participating person. Regulation M may also restrict the ability of any person engaged in the distribution of the
shares of common stock to engage in market-making activities with respect to the shares of common stock. All of the foregoing
may affect the marketability of the shares of common stock and the ability of any person or entity to engage in market-making
activities with respect to the shares of common stock.

 

We
will pay all expenses of the registration of the shares of common stock pursuant to the registration rights agreement, estimated
to be $[  ] in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of
compliance with state securities or “blue sky” laws; provided, however, that a selling stockholder will pay all underwriting
discounts and selling commissions, if any. We will indemnify the selling stockholders against liabilities, including some liabilities
under the Securities Act, in accordance with the registration rights agreements, or the selling stockholders will be entitled
to contribution. We may be indemnified by the selling stockholders against civil liabilities, including liabilities under the
Securities Act, that may arise from any written information furnished to us by the selling stockholder specifically for use in
this prospectus, in accordance with the related registration rights agreement, or we may be entitled to contribution.

 

Once
sold under the registration statement, of which this prospectus forms a part, the shares of common stock will be freely tradable
in the hands of persons other than our affiliates.

 

    	 	Annex I-5Exhibit
10.51

 

CERTAIN
IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM
TO THE REGISTRANT IF PUBLICLY DISCLOSED. THE OMISSIONS HAVE BEEN INDICATED BY “[***]”

 

LICENSE
AGREEMENT

 

This
License Agreement (hereinafter referred to as the “Agreement”) is made and effective as of the date of the
last signature (the “Effective Date”), by and between Ares Trading SA (hereinafter referred to as “ARES”),
a company organized under the laws of Switzerland and having its registered office at Zone Industrielle de l’Ouriettaz,
1170 Aubonne, Switzerland, and RELIEF THERAPEUTICS SA (hereinafter referred to as “Licensee”), a company organized
under the laws of Switzerland and having its registered office at c/o Fidraco, 54, rue Agasse, 1208 Geneva, Switzerland. ARES
and Licensee are each referred to herein as a “Party” and collectively as the “Parties”.

 

WITNESSETH:

 

WHEREAS,
Licensee is active in the field of developing, producing and marketing a pharmaceutical product based on the Compound (as hereinafter
defined);

 

WHEREAS,
ARES is engaged, among other activities, in the development of pharmaceutical products; and

 

WHEREAS,
ARES is in particular the owner of several patents related to the use of human recombinant interleukin-6 in peripheral neuropathies
and vascular complications (as further detailed below under the term “ARES Patents”);

 

WHEREAS,
ARES wishes to license to Licensee, on an exclusive worldwide basis, the right to research, Develop, make, have made, import,
export, use and Commercialize products comprising the Compound in the Field (as hereinafter defined);

 

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

 

ARTICLE
1 - DEFINITIONS

 

The
following terms shall have the following respective definitions:

 

	1.1	“Affiliate”
                                         means a Person that controls, is Controlled by or is under common Control with a
                                         Party, but only for so long as such Control exists. For the purposes of this Section
                                         1.1, the word “Control” (including, with correlative meaning, the
                                         terms “Controlled by” – save for its definition under Section
                                         1.15 – or “under the common Control with”) means the actual
                                         power, either directly or indirectly through one or more intermediaries, to direct the
                                         management and policies of such Person or entity, whether by the ownership of more than
                                         fifty percent (50%) of the voting stock of such entity, or by contract or otherwise.

 

    	 

    	 

    

 

	1.2	“ARES
                                         Know-How” means all Know-How that relates to the Compound and that is Controlled
                                         by ARES as of the Effective Date and is necessary in the research, Development, manufacture,
                                         use, or Commercialization of the Product. The Know-How set forth on Schedule 1.24
                                         constitutes all of such Know-How owned or Controlled by ARES as of the Effective
                                         Date.
	 	 
	1.3	“ARES
                                         Materials” means the biological materials and the Compound Controlled by ARES
                                         that are necessary for the Development and manufacture of the Product, as defined under
                                         Schedule 1.26.
	 	 
	1.4	“ARES
                                         Patents” means all Patent Rights set forth on Schedule 1.25 hereto,
                                         that are Controlled by ARES.

 

Notwithstanding
the above, if ARES decides to file any new patent Covering the same uses of the Compound as the Patent Rights set forth in Schedule
1.25, then such new patent(s) shall, immediately upon filing, become an integral part of the ARES Patents licensed to Licensee
under Section 2.1.

 

	1.5	“ARES
                                         Technology” means the ARES Know-How, the ARES Materials and the ARES Patents.
	 	 
	1.6	“Calendar
                                         Quarter” means each three- (3-) month period commencing January 1, April 1,
                                         July 1 or October 1 of any Calendar Year; provided, however, that (a) the first Calendar
                                         Quarter of the Term shall extend from the Effective Date to the end of the first full
                                         Calendar Quarter thereafter, and (b) the last Calendar Quarter of the Term shall end
                                         upon the expiration or termination of this Agreement.
	 	 
	1.7	“Calendar
                                         Year” means the period beginning on the 1st of January and ending
                                         on the 31st of December of the same year; provided, however, that (a) the
                                         first Calendar Year of the Term shall commence on the Effective Date and end on December
                                         31 of the same year and (b) the last Calendar Year of the Term shall commence on January
                                         1 of the Calendar Year in which this Agreement terminates or expires and end on the date
                                         of termination or expiration of this Agreement.
	 	 
	1.8	“Change
                                         of Control” means, with respect to a Person: (a) a transaction or series of
                                         related transactions that results in the Sale or other disposition of more than 50% of
                                         such Person’s assets; or (b) a merger or consolidation in which such Person is
                                         not the surviving corporation or in which, if such Person is the surviving corporation,
                                         the shareholders of such Person immediately prior to the consummation of such merger
                                         or consolidation do not, immediately after consummation of such merger or consolidation,
                                         possess, directly or indirectly through one or more intermediaries, a majority of the
                                         voting power of all of the surviving entity’s outstanding stock and other securities
                                         and the power to elect a majority of the members of such Person’s board of directors;
                                         but excluding transactions related to a capital increase of Licensee.

 

    	 	2	 

    	 

    

 

 

	1.9	“Clinical
                                         Trial” means a clinical trial in human subjects that has been approved by a
                                         Regulatory Authority, designed to measure the safety and/or efficacy of the Product.
                                         Clinical Trials shall include Phase I Trials, Phase II Trials and Phase III Trials.
	 	 
	1.10	“Combination
                                         Product” means a Product, used in the used in the frame of the ARES Patents,
                                         that: (a) includes one or more active ingredients in addition to the Compound; or (b)
                                         is combined with one or more products, devices, pieces of equipment or components.
	 	 
	1.11	“Commercialization”
or “Commercialize” means any and all activities undertaken before and after Regulatory Approval of a MAA
for  the Product and that relate to the marketing, promoting, distributing,
importing or exporting for sale, offering for sale, and selling of the Product, and interacting with Regulatory Authorities regarding
the foregoing.
	 	 
	1.12	“Commercially
                                         Reasonable Efforts” means: (a) with respect to the efforts to be expended by
                                         a Party with respect to any objective, such reasonable, diligent, and good faith efforts
                                         as such Party would normally use to accomplish a similar objective under similar circumstances;
                                         and (b) with respect to the Product, efforts and resources similar to those employed
                                         by companies in a similar stage of development and available resources as Licensee to
                                         Develop, manufacture or Commercialize a product of similar market potential at a similar
                                         stage in its product life, taking into account, without limitation, commercial, legal
                                         and regulatory factors, target product profiles, product labeling, past performance,
                                         the regulatory environment and competitive market conditions in the therapeutic area,
                                         safety and efficacy of the Product, the strength of its proprietary position and such
                                         other factors as such companies may reasonably consider (including resource availability),
                                         all based on conditions then prevailing. For the avoidance of doubt, “Commercially
                                         Reasonable Efforts” with respect to the Product Development shall be assessed independently
                                         of Licensees’ other activities that are not related to the Product Development
                                         and shall require what a diligent person would do to perform a sound and reasonable Development
                                         of the Product. For clarity, “Commercially Reasonable Efforts” will not mean
                                         that a Party guarantees that it will actually accomplish the applicable task or succeed
                                         in the targetted objective.
	 	 
	1.13	“Compound”
                                         means recombinant human interleukin-6 having the sequence set forth on Schedule
                                         1.27, including any derivative, fragment or conjugate thereof.
	 	 
	1.14	“Confidential
                                         Information” of a Party means any information relating to the business, operations
                                         or products of a Party or any of its Affiliates, including any Know-How and biological
                                         or chemical materials not known or generally available to the public, that such Party
                                         discloses to the other Party under this Agreement, or otherwise becomes known to the
                                         other Party by virtue of this Agreement. For any Party, this Agreement and the terms
                                         and conditions herein are deemed “Confidential Information” of the other
                                         Party.
	 	 
	1.15	“Controlled”
                                         means, with respect to (a) any Patent Right, (b) any Know-How or (c) any biological,
                                         chemical or physical material, that a Party or one of its Affiliates owns or has a license
                                         or sublicense to such Patent Right, Know-How or material (or in the case of material,
                                         has the right to physical possession of such material) and has the ability to grant a
                                         license or sublicense to, or to assign its right, title and interest in and to, such
                                         Patent Right, Know-How or material as provided for in this Agreement, without violating
                                         the terms of any agreement or other arrangement with any Third Party.

 

    	 	3	 

    	 

    

 

	1.16	“Cover”,
                                         “Covering” or “Covered” means, with respect to
                                         the Product, that the use, sale, or offer for sale of the Product would, except for a
                                         license granted under this Agreement, infringe a Valid Claim in the country in which
                                         the activity occurs.
	 	 
	1.17	“Development”
                                         or “Develop” means, with respect to the Product, the performance
                                         of all pre-clinical and clinical developments (including toxicology, pharmacology, test
                                         method development and stability testing, process development, formulation development,
                                         quality control development, statistical analysis), Clinical Trials (excluding Clinical
                                         Trials conducted after Regulatory Approval of an NDA), manufacturing and regulatory activities
                                         that are required to obtain Regulatory Approval of the Product in the Territory.
	 	 
	1.18	“EMA”
                                         means the European Medicines Agency or any successor agency.
	 	 
	1.19	“European
                                         Commission” means the authority within the European Union that has the legal
                                         authority to grant Regulatory Approvals in the European Union based on input received
                                         from the EMA or other competent Regulatory Authorities.
	 	 
	1.20	“European
                                         Union” or “EU” means the European Union, as may be redefined
                                         from time to time.
	 	 
	1.21	“Euros”
                                         or “€” means the lawful currency of the member states of the
                                         European Union that adopt the single currency in accordance with the relevant European
                                         Union treaties.
	 	 
	1.22	“Existing
                                         Third Party Agreement(s)” means the agreement(s) set forth on Schedule 1.28.
	 	 
	1.23	“FDA”
                                         means the United States Food and Drug Administration, or a successor federal agency
                                         thereto.
	 	 
	1.24	“Field”
                                         means all prophylactic, palliative, therapeutic, or diagnostic uses in humans and
                                         animals.
	 	 
	1.25	“First
                                         Commercial Sale” means, on a country-by-country basis and Product-by-Product
                                         basis, the first commercial transfer or disposition for value of a Product in such country
                                         to a Third Party by Licensee or any of its Affiliates.
	 	 
	1.26	“Governmental
                                         Body” means any: (a) nation, principality, state, commonwealth, province, territory,
                                         county, municipality, district or other jurisdiction of any nature; (b) federal, state,
                                         local, municipal, foreign or other government; (c) governmental or quasi-governmental
                                         authority of any nature (including any governmental division, subdivision, department,
                                         agency, bureau, branch, office, commission, council, board, instrumentality, officer,
                                         official, representative, organization, unit, body or entity and any court or other tribunal);
                                         (d) multi-national or supranational organization or body; or (e) individual, entity,
                                         or body exercising, or entitled to exercise, any executive, legislative, judicial, administrative,
                                         regulatory, police, military or taxing authority or power of any nature.

 

    	 	4	 

    	 

    

 

	1.27	“IFRS”
                                         means the International Financial Reporting Standards, which are the set of accounting
                                         standards and interpretations and the framework in force on the Effective Date and adopted
                                         by the European Union as issued by the International Accounting Standards Board (IASB)
                                         and the International Financial Reporting Interpretations Committee (IFRIC), as such
                                         accounting standards may be amended from time to time.
	 	 
	1.28	“IND”
                                         means an investigational new drug application submitted to any applicable Regulatory
                                         Authorities for approval to commence Clinical Trials in a given jurisdiction.
	 	 
	1.29	“Know-How”
                                         means any scientific or technical information, results and data of any type whatsoever,
                                         in any tangible or intangible form whatsoever, that is not in the public domain or otherwise
                                         publicly known, including discoveries, inventions, trade secrets, devices, databases,
                                         practices, protocols, regulatory filings, methods, processes (including manufacturing
                                         processes, specification and techniques), techniques, concepts, ideas, specifications,
                                         formulations, formulae, data (including pharmacological, biological, chemical, toxicological,
                                         clinical and analytical information, quality control, trial and stability data), case
                                         reports forms, medical records, data analyses, reports, studies and procedures, designs
                                         for experiments and tests and results of experimentation and testing (including results
                                         of research or development), summaries and information contained in submissions to and
                                         information from ethical committees, or Regulatory Authorities, and manufacturing process
                                         and development information, results and data, whether or not patentable, all to the
                                         extent not claimed or disclosed in a patent or patent application. The fact that an item
                                         is known to the public shall not be taken to exclude the possibility that a compilation
                                         including the item, and/or a development relating to the item, is (and remains) not known
                                         to the public. “Know-How” includes any rights including copyright, database
                                         or design rights protecting such Know-How. “Know-How” excludes Patent Rights.
	 	 
	1.30	“Law”
                                         or “Laws” means all applicable laws, statutes, rules, regulations,
                                         ordinances and other pronouncements having the binding effect of law of any Governmental
                                         Body.
	 	 
	1.31	“Liquidation
                                         Event” means any liquidation, dissolution, winding-up, or Change of Control
                                         of Licensee, irrespective of its legal qualification.
	 	 
	1.32	“MAA”
                                         means a Marketing Authorization Application submitted pursuant to the requirements of
                                         the FDA, as more fully defined in 21 U.S. C.F.R.§ 314.3 et seq, a Biologics License
                                         Application submitted pursuant to the requirements of the FDA, as more fully defined
                                         in 21 U.S. C.F.R. § 601, and any equivalent application submitted in any country
                                         in the Territory, including all additions, deletions or supplements thereto, and as any
                                         and all such requirements may be amended, or supplanted, at any time.
	 	 
	1.33	“Major
                                         Market” means the United States, Japan, Germany, France, Italy, the United
                                         Kingdom and Spain.
	 	 
	1.34	“Net
                                         Sales” means the gross amounts invoiced by, and effectively paid to, Licensee
                                         or any of its Affiliates for sales of Product to independent or unaffiliated Third Party
                                         purchasers of such Product, less those deductions with respect to such sales that are
                                         either included in the billing as a line item as part of the gross amount invoiced, or
                                         otherwise documented as a deduction in accordance with IFRS to be specifically attributable
                                         to actual sales of such Product.

 

    	 	5	 

    	 

    

 

If
a Product under this Agreement is sold in the form of a Combination Product, then Net Sales for such Combination Product shall
be determined on a country-by-country basis by mutual agreement of the Parties in good faith, taking into account the perceived
relative value contributions of the Product and the other ingredient or component in the Combination Product, as reflected in
their respective market prices. In case of disagreement, an independent expert designated by mutual agreement of both Parties
or, failing such agreement, designated by the International Chamber of Commerce, shall determine such relative value contributions
and such determination shall be final and binding upon the Parties.

 

In
the event Product is “bundled” for sale together with one or more other products in a country (a “Product
Bundle”), then Net Sales for such Product sold under such arrangement shall be determined on a country-by-country basis
by mutual agreement of the Parties in good faith taking into account the relative value contributions of the Product and the other
products in the Product Bundle, as reflected in their individual sales prices. In case of disagreement, an independent expert
designated by mutual agreement of both Parties or, failing such agreement, the International Chamber of Commerce shall determine
such relative value contributions and such determination shall be final and binding upon the Parties.

 

	1.35	“NDA”
                                         means a New Drug Application submitted pursuant to the requirements of the FDA, as more
                                         fully defined in 21 U.S. CFR.§ 314.3 et seq, a Biologics License Application submitted
                                         pursuant to the requirements of the FDA, as more fully defined in 21 U.S. CFR §
                                         601, and any equivalent application submitted in any country in the Territory, including
                                         a European Marketing Authorization Application, together, in each case, with all additions,
                                         deletions or supplements thereto .
	 	 
	1.36	“Patent
                                         Right” means: (a) an issued or granted patent, including any extension, supplemental
                                         protection certificate, registration, confirmation, reissue, reexamination, extension
                                         or renewal thereof; (b) a pending patent application, including any continuation, divisional,
                                         continuation-in-part, substitute or provisional application thereof; and (c) all counterparts
                                         or foreign equivalents of any of the foregoing issued by or filed in any country or other
                                         jurisdiction.
	 	 
	1.37	“Person”
                                         means any natural person, corporation, firm, business trust, joint venture, association,
                                         organization, partnership or other business entity, or any government or agency or political
                                         subdivision thereof.
	 	 
	1.38	“Phase
                                         I Trial” means a Clinical Trial in which the Product is administered to human
                                         subjects at multiple dose levels with the primary purpose of determining safety, metabolism,
                                         and pharmacokinetic and pharmacodynamic properties of the Product, and consistent with
                                         21 CFR § 312.21(a).
	 	 
	1.39	“Phase
                                         II Trial” means a Clinical Trial of the Product in human patients, the principal
                                         purposes of which are to make a preliminary determination that the Product is safe for
                                         its intended use, to determine its optimal dose, and to obtain sufficient information
                                         about the Product’s efficacy to permit the design of Phase III Trials, and consistent
                                         with 21 CFR 312.21(b).

 

    	 	6	 

    	 

    

 

	1.40	“Phase
                                         III Trial” means a human Clinical Trial of the Product, which trial is designed
                                         (a) to establish that the Product is safe and efficacious for its intended use; (b) to
                                         define warnings, precautions and adverse reactions that are associated with the Product
                                         in the dosage range to be prescribed; and (c) consistent with 21 CFR § 312.21(c).
	 	 
	1.41	“Product”
                                         means any pharmaceutical product, including any formulation thereof, containing or
                                         comprising the Compound used in the frame of the ARES Patents.
	 	 
	1.42	“Regulatory
                                         Authority” means (a) the FDA, (b) the EMEA or the European Commission, or (c)
                                         any regulatory body with similar regulatory authority over pharmaceutical or biotechnology
                                         products in any other jurisdiction anywhere in the world.
	 	 
	1.43	“Regulatory
                                         Approval” shall mean the receipt from a Regulatory Authority by Licensee, its
                                         Affiliates, or Sublicensees, of approval to lawfully market a Product in the corresponding
                                         jurisdiction in the Territory.
	 	 
	1.44	“Royalty
                                         Term” means, on a country-by-country and Product-by-Product basis, the period
                                         from the First Commercial Sale of such Product in such country until the later of (a)
                                         the last date on which such Product is Covered by a Valid Claim in such country, or (b)
                                         twelve (12) years after such First Commercial Sale of such Product in such country.
	 	 
	1.45	“Sale”
                                         means the sale and transfer of the entire outstanding and issued share capital of Licensee
                                         (100%) to any Third Party (except ARES or any Affiliate thereof), in a single transaction
                                         or series of related transactions.
	 	 
	1.46	“Section”
                                         means any section of this Agreement.
	 	 
	1.47	“Sublicensee”
                                         means a Person other than an Affiliate of Licensee, to which Licensee (or its Affiliate)
                                         has granted sublicense rights pursuant to Section 2.2; for the sake of clarity, “Sublicensee”
                                         shall exclude distributors.
	 	 
	1.48	“Tax”
                                         or “Taxes” means any federal, state, local or foreign income, gross
                                         receipts, license, payroll, employment, excise, severance, stamp, occupation, premium,
                                         windfall profits, environmental, customs duties, capital stock, franchise, profits, withholding,
                                         social security, unemployment, disability, real property, personal property, sales, use,
                                         transfer, registration, value added, alternative or add-on minimum, estimated, or other
                                         tax of any kind whatsoever imposed by any Governmental Body, including any interest,
                                         penalty, or addition thereto.
	 	 
	1.49	“Territory”
                                         means each and all the countries in the world.
	 	 
	1.50	“Third
                                         Party” shall mean any Person other than a Party or an Affiliate of a Party.

 

    	 	7	 

    	 

    

 

	1.51	“Valid
                                         Claim” means a claim of an issued and unexpired ARES Patent, filed in the related
                                         country/-ies, which has not lapsed or been revoked, abandoned or held unenforceable or
                                         invalid by a final decision of a court or governmental or supra-governmental agency of
                                         competent jurisdiction, unappealable or unappealed within the time allowed for appeal,
                                         and which has not been disclaimed, denied or admitted to be invalid or unenforceable
                                         through reissue, reexamination or disclaimer or otherwise.
	 	 
	1.52	Other
                                         Terms. The definition of each of the following terms is set forth in the Section
                                         of the Agreement indicated below:

 

“Action”
has the meaning set forth in Section 5.5 (b).

 

“ARES
Indemnitees” has the meaning set forth in Section 8.1.

 

“ARES
Royalty Rate” has the meaning set forth in Section 4.1 (a).

 

“Commercialization
Plan” has the meaning set forth in Section 3.2.

 

“Completion”
has the meaning set forth in Section 4.1 (d).

 

“Controlling
Party” has the meaning set forth in Section 5.6 (c).

 

“Development
Plan” has the meaning set forth in Section 3.1.

 

“Executive
Officers” has the meaning set forth in Section 10.2.

 

“Licensee
Indemnitees” has the meaning set forth in Section 8.2.

 

“Liquidation
Event” has the meaning set forth in Section 4.1 (g).

 

“Monetary
Third Party Obligations” has the meaning set forth in Section 4.1 (b).

 

“Preferred
Return’’ has the meaning set forth in Section 4.2

 

“Sole
Invention” has the meaning set forth in Section 5.3.

 

“Sublicensing
Fee” has the meaning set forth in Section 4.1 (d).

 

“Term”
has the meaning set forth in Section 9.1.

 

“Third
Party Action” has the meaning set forth in Section 5.5 (a).

 

article
2 – GRANT OF LICENSE

 

2.1 Grant
of License. Subject to the terms and conditions of this Agreement, ARES hereby grants to Licensee an exclusive (even as to
ARES), worldwide, royalty-bearing right and license (with the right to sublicense subject to Section 2.2) under the ARES Technology,
to research, Develop, make, have made, import, export, use and Commercialize the Products in the Field in the Territory.

 

    	 	8	 

    	 

    

 

2.2 Grant
of Sublicense by Licensee. The Licensee shall have the right to grant any sublicenses under the license granted in Section
2.1. The granting by Licensee of any sublicense shall not relieve Licensee of its obligations hereunder. Licensee shall provide
ARES with a copy of each such executed sublicense agreement; provided, that Licensee may redact from each such sublicense agreement
all provisions, that are not relevant to Licensee’s performance hereunder.

 

2.3 Transfer.
Upon receipt of a written request by Licensee, ARES shall transfer to Licensee, at Licensee’s cost and expense, all
relevant ARES Know-How and ARES Materials. Such transfer shall take place in an orderly fashion and in manner such that the value,
usefulness and confidentiality of the ARES Know-How and ARES Materials are preserved in all material respects throughout their
transfer.

 

The
Parties acknowledge that the delay to transfer such ARES Know-How and ARES Materials is depending upon the form under which such
transfer shall occur, the delivery under an electronic format taking more time than the delivery under a paper format; the choice
of the form is at Licensee’s sole discretion. ARES undertakes to make its best efforts to minimize the transfer period,
which shall not exceed 120 (one hundred and twenty) days.

 

article
3 – DEVELOPMENT AND COMMERCIALIZATION

 

3.1 Development
of the Product by Licensee. Licensee shall have the exclusive right to research and Develop the Product and to conduct (either
itself or through its Affiliates, agents, subcontractors and/or Sublicensees) all Clinical Trials and non-clinical studies Licensee
believes appropriate to obtain Regulatory Approval for the Product in the Field. The Development of each Product shall be governed
by a development plan, prepared and adopted by Licensee, that describes the proposed overall program of Development (the “Development
Plan”), which Development Plan will be updated by Licensee at least twice annually. Licensee will cover all costs associated
with the further research, Development, Regulatory Approval and Commercialization of the Products.

 

3.2 Commercialization.
Subject to the terms and conditions of this Agreement, Licensee shall have the exclusive right to Commercialize the Products
itself or through one or more Third Parties selected by Licensee. The Commercialization of each Product shall be governed by a
commercialization plan that describes the contemplated overall program of Commercialization (the “Commercialization Plan”),
which Commercialization Plan shall be prepared and adopted by Licensee nine (9) months prior to the expected Commercialization
of the Product. Such Commercialization Plan shall thereafter be updated by Licensee at least twice annually.

 

3.3 Manufacturing
and Supply. Subject to the terms and conditions of this Agreement, Licensee shall have the exclusive right to manufacture
the Compound and the Products itself or through one or more Third Parties selected by Licensee.

 

    	 	9	 

    	 

    

 

3.4 Regulatory
Filings. As between ARES and Licensee, Licensee shall own and maintain all regulatory filings and Regulatory Approvals for
the Products, including all INDs and MAAs.

 

3.5 Diligence
by Licensee. Licensee will use Commercially Reasonable Efforts to Develop and Commercialize at least one Product in the US
and in at least one other Major Market, provided that Licensee has received the necessary Regulatory Approvals.

 

3.6 Annual
Reporting. Licensee shall, on each anniversary of the Effective Date, provide ARES with a written report summarizing in reasonable
detail its Development and, as applicable, the Commercialization activities conducted during the preceding Calendar Year.

 

3.7 Trademarks.
Licensee shall have the sole authority to create, select and register trademarks for each and all Products and shall own all
such trademarks.

 

article
4 - Financials

 

4.1 Royalty;
Monetary Third Party Obligations

 

(a) Royalty
Rate. As consideration for the granting of rights to the ARES Technology, including the transfer of ARES Materials and ARES
Know-How, Licensee shall, during the Royalty Term, pay to ARES a royalty on the Net Sales of each Product at the rate of [***]
(the “ARES Royalty Rate”). Except as expressly set forth in this Agreement, such royalty shall not be subject
to any offset or reduction for any reason, including but not limited to any Taxes, royalties, milestone payments or other consideration
that Licensee may pay to any Third Party.

 

(b) Considerations
under Existing Third Party Agreements. Licensee shall be obliged to and be responsible for paying all monetary obligations
owed by ARES or any of its Affiliates to Third Parties (the “Monetary Third Party Obligations”) for the Product,
including without limitation royalty and other payment obligations, under Existing Third Party Agreements. Licensee shall not
be allowed to make any deductions from these payments under this Section 4.1 (a), provided that at the Effective Date, each and
all such Monetary Third Party Obligations have been fully disclosed by ARES to Licensee and duly listed in Schedule 1.28 . Licensee
shall also be obliged to pay the Monetary Third Party Obligations in case of a sublicensing in accordance with this Agreement.

 

(c) Royalties
Generally. If a Product is not Covered by a Valid Claim in a country or such Valid Claim has expired or been invalidated before
the twelfth (12th) anniversary of the date of the First Commercial Sale of such Product in such country, then such ARES Royalty
Rate applicable to such Product in such country shall be reduced by [***] percent ([***]%). Such a reduced ARES Royalty Rate shall
be paid commencing as of the date of expiration or invalidation of such Valid Claim, and continuing until the twelfth (12th) anniversary
of the date of such First Commercial Sale. If a Product is Covered by a pending patent application that subsequently becomes an
issued patent in a country, then the ARES Royalty Rate shall revert to the full royalty set forth in Section 4.1 commencing with
the date of issuance and ARES shall be reimbursed for the amount corresponding to the [***] percent ([***]%) reduction that applied
for the period from the date of the First Commercial Sale of such Product in such country to the date of issuance of such patent
in such country, subject to the other provisions of this Article 4. For clarity, the reduction does not apply to the Monetary
Third Party Obligation as set forth in Section 4.1(a) above.

 

    	 	10	 

    	 

    

 

(d) Sublicensing
Receipts. Licensee shall pay ARES a percentage of all revenue effectively received through sub-licensing of each Product under
Section 2.2 (including without limitation upfront, milestone payments, royalties, annual maintenance fees and similar payments,
but excluding payments directly related to research “full-time equivalent”), according to the following decreasing
percentage scale:

 

	(i)	[***]
                                         percent ([***]%), in case of sub-licensing after the Completion of the first Phase I
                                         Trial in neuropathy patients, or
	 	 
	(ii)	[***]
                                         percent ([***]%), in case of sub-licensing after the Completion of the first Phase II
                                         Trial in neuropathy patients, or
	 	 
	(iii)	[***]
                                         percent ([***]%), in case of sub-licensing after the Completion of the first Phase III
                                         Trial in neuropathy patients.

 

(each,
a “Sublicensing Fee”)

 

For
the avoidance of doubt, in case a Phase III Trial is scheduled right after Completion of the first study in neuropathy patients
(and therefore no Phase II Trial is performed), then (ii) shall apply for the Phase III Trial set up.

 

“Completion”
as used in this Section shall mean that the final study report as foreseen under the clinical trial protocol for the concerned
Clinical Trial has been adopted and finalized.

 

(e) Payment
of Royalties and Sublicensing Fees. Simultaneously with the delivery of the report described in Section 4.1 (f) , Licensee
shall pay, or cause to be paid, to ARES all royalties, all Monetary Third Party Obligations, and the Sublicensing Fees, accrued
pursuant to this Section 4.1 onto such bank account as ARES may from time to time designate in writing. All such payments shall
be made by wire transfer in Euros.

 

(f) Royalty-
and Sublicensing Fee Reporting ; Currency Conversion. Commencing with the Calendar Quarter in which the First Commercial Sale
of a Product is made by the Licensee or its Affiliate or any Sublicensee, Licensee shall submit to ARES with each royalty payment,
including any due royalty, Monetary Third Party Obligations and Sublicensing Fee, a report detailing its computation of (i) royalties
for the ARES Royalty Rate due on Net Sales, (ii) of any further Monetary Third Party Obligation due on all sales of Product, and
(iii) of the Sublicensing Fees, for the corresponding Calendar Quarter. Such Report and the associated payments shall be due within
sixty (60) days after the end of each Calendar Quarter. All payments to ARES hereunder shall be made by deposit of Euros in the
requisite amount to such bank account as ARES may from time to time designate by written notice to Licensee. With respect to sales
not denominated in Euros, any amounts other than Monetary Third Party Obligations owed to ARES by Licensee shall first be calculated
in the currency of sale, and then such amounts shall be converted into Euro using the exchange rate of the European Central Bank
on the last day of the Calendar Quarter to which the report relates. Any amounts owed to ARES based on Monetary Third Party Obligations
shall be calculated according to the obligations under the Existing Third Party Agreement(s). The Parties may vary the method
of payment set forth herein at any time upon mutual agreement, and any change shall be consistent with the local law at the place
of payment or remittance.

 

    	 	11	 

    	 

    

 

(g) Record
Retention, Inspection. Licensee shall keep or cause its Affiliates and Sublicensees to keep complete and accurate records
in sufficient detail to enable Net Sales and royalties, including the Sublicensing Fees, payable under this Section 4.1 to be
established for a period of sixty (60) months after the date that such royalties were payable. Such records shall be consistent
with Licensee’s normal accounting principles. At the request of ARES (but not more frequently than once each Calendar Year)
an independent chartered or certified public accountant chosen and paid by ARES but approved by the Licensee (which approval shall
not be unreasonably withheld or delayed) shall be allowed access during ordinary business hours to such records pertaining to
the preceding two (2) Calendar Years solely to verify the accuracy of any payments made to ARES under this Section 4.1. The accountant
shall not disclose to ARES any information other than that which should properly be contained in a report of matters relevant
to Net Sales and royalty calculation and, as the case may be, Sublicensing Fees’ payment arising under this Section 4.1.
As regards the Sublicensing Fees, Licensee shall cause its Sublicensees to make their records available to ARES.

 

4.2 Divestment
Proceeds. The Parties agree that in the event of a Liquidation Event ARES shall receive, after payment of all Third Parties’
claims and liquidation cost as well as any Preferred Return to holders of preferred shares of Licensee, an amount in cash equal
to [***] percent ([***]%) of the total remaining proceeds that shall be paid, delivered or transferred to the shareholders of
Licensee), prior to any distribution of such proceeds to holders of common shares of Licensee. Consequently, the proceeds shall
be distributed in the following order of preference:

 

	(1) 	any Preferred
    Return to holders of preferred shares of Licensee;
	 	 
	(2) 	[***] percent
    ([***]%) of the total remaining proceeds to ARES; and
	 	 
	(3)	the
                                         balance to the shareholders of Licensee according to Swiss law and/or any other agreement
                                         entered into among them.

 

“Preferred
Return” as used in this Section shall mean any distribution on any class of preferred shares of Licensee that exceeds
a shareholding pro-rata distribution. ARES’ claim to the liquidation proceeds shall by no means construe or imply any de
facto Control over, or deemed shareholding of, Licensee. Both are and will remain independent contractors for the purpose and
performance of this Agreement.

 

    	 	12	 

    	 

    

 

4.3 No
Participation in the Share Capital of Licensee. For the sake of clarity, nothing in this Agreement shall be construed or interpreted
as giving ARES a right of any sort whatsoever to any share or other form of participation in the share capital of Licensee or
any of its Affiliates.

 

article
5 - INVENTIONS AND PATENTS

 

5.1 Certification
Under Drug Price Competition and Patent Restoration Act. Each Party shall immediately give written notice to the other Party
of any certification filed pursuant to 21 U.S.C. Section 355(b)(2)(A) (or any amendment or successor statute thereto), of which
it becomes aware and which claims either that any ARES Patent, any Product or the Development, manufacture, use or Commercialization,
of each of the foregoing, are invalid or unenforceable, or that no infringement will arise from the Development, manufacture,
use or Commercialization of any similar product by a Third Party.

 

5.2 Listing
of Patents. ARES shall have the sole right to determine which of the ARES Patents, if any, shall be listed for inclusion in
the Approved Drug Products with “Therapeutic Equivalence Evaluations” pursuant to 21 U.S.C. Section 355, or any successor
law in the United States, together with any comparable laws or regulations in any other country in the Territory.

 

5.3 Title
to Inventions. Except as provided in the following sentence, all inventions having as inventors solely employees or independent
contractors of one Party in the course of the Parties’ performance under this Agreement and all intellectual property rights
arising thereof (the “Sole Inventions”), shall be the property of such Party.

 

5.4 Patent
Prosecution and Maintenance.

 

(a) Licensee.
Licensee shall have the right to file, prosecute and maintain each and all patents it owns. Licensee shall bear all costs and
expenses of filing, prosecuting and maintaining such patents.

 

Without
prejudice to the right of ARES on any ARES Patent, Licensee shall have the right to file, prosecute and maintain, in its name
and on its behalf, any patent pertaining to any unpatented use of the Compound.

 

(b) ARES
Patents. ARES shall have the first right, and the obligation, to file, prosecute and maintain each and all ARES Patents. ARES
shall bear all costs and expenses of filing, prosecuting and maintaining the ARES Patents, subject to Section 5.4 (c). ARES shall
keep Licensee informed about the course of the filing and prosecution of ARES Patents or related proceedings (e.g. interferences,
oppositions, re-examinations, reissues, revocations or nullifications) in the United States and the European Union in a timely
manner, and to take into consideration the advice and recommendations of Licensee. At ARES’s request, Licensee will provide
ARES with reasonable assistance in prosecuting ARES Patents to the extent possible, in particular by providing to ARES any data
related to the ARES Patents which is under Licensee’s Control and which is, in ARES’s reasonable judgment, needed
to support the prosecution of any ARES Patent; provided, however, that ARES shall reimburse Licensee for Licensee’s out-of-pocket
expenses incurred in providing such assistance.

 

    	 	13	 

    	 

    

 

(c) Cost
of Patent Prosecution and Maintenance. During the entire validity of this Agreement, on each anniversary of the Effective
Date and until such time that there is no longer a Valid Claim under an ARES Patent, Licensee shall pay ARES an annual license
maintenance fee of twenty-five-thousand Euro (EUR 25,000) provided that in the event of a Change of Control of Licensee the Licensee
or its respective successor shall pay all of ARES’s cost and expenses in filing, prosecution, and maintaining the ARES Patents
after the effective date of such Change of Control, and shall reimburse ARES for all of ARES’s costs and expenses incurred
in filling, prosecuting, and maintaining the ARES Patents from the Effective Date until the effective date of such Change of Control.

 

In
the event of a Liquidation Event of Licensee, Licensee shall reimburse all of ARES’s cost and expenses incurred by ARES
in filing, prosecuting, and maintaining the ARES Patents after the Effective Date until the Liquidation Event of Licensee, deduction
made of any paid annual license maintenance fees, at the occurrence of the Liquidation Event. For the sake of clarity, it is expressly
specified that Licensee has no additional obligation to indemnify ARES or any of ARES’ Affiliates for any subsequent renewal,
prosecution and maintenance by ARES of any ARES Patent.

 

(d) Election
not to file and prosecute ARES Patents. If ARES elects neither to file an ARES Patent, nor to prosecute or maintain any existing
ARES Patent, in a certain country, then ARES undertakes to notify Licensee in writing at least ninety (90) days before any deadline
applicable to the filing, prosecution or maintenance of such ARES Patent, as the case may be, or any other date by which an action
must be taken to establish or preserve such ARES Patent in such country. In such case, Licensee shall have the right, but not
the obligation, to initiate the filing or to support the continued prosecution or maintenance of such ARES Patent in the related
country. Licensee shall notify ARES of its decision, and ARES shall reasonably cooperate with Licensee in this regard, including,
if requested by Licensee, by assigning to Licensee all its right, title and interest in and to any such ARES Patent in such country,
with a view to transfer and assign the ownership of such ARES Patent to Licensee. Licensee shall thereupon be responsible for
the costs of filing, prosecution and maintenance.

 

For
the sake of clarity, it is specified that no royalty whatsoever under Section 4.1 shall be due anymore to ARES for the use of
any such transferred ARES Patent and no royalty or any other sort of indemnity shall be due to ARES for the filing of new patents
by Licensee in any unregistered country.

 

(e) Patent
Term Extension. ARES shall be responsible for obtaining patent term extensions wherever available for ARES Patents. Licensee
shall provide ARES with all relevant information, documentation and assistance in this respect. Any such assistance, supply of
information and consultation shall be provided promptly and in a manner that will ensure that all patent term extensions for Products
are obtained wherever legally permissible, and to the maximum extent available. In the event that any election with respect to
obtaining patent term extensions is to be made, Licensee shall have the right to make such elections, and ARES shall abide by
all such elections.

 

    	 	14	 

    	 

    

 

5.5 Enforcement
of Patents.

 

(a) Notice.
If either Party believes that any ARES Patent is being infringed by a Third Party or if a Third Party claims that any ARES
Patent is invalid or unenforceable, the Party possessing such knowledge or belief shall notify the other Party and provide it
with details of such infringement or claim that are known by such Party.

 

(b) Right
to bring an Action. As long as it owns the concerned ARES Patent, ARES shall have the exclusive right to attempt to resolve
such infringement or claim, including by filing an infringement suit, defending against such claim or taking other similar action
(each, an “Action”) and to compromise or settle such infringement or claim. If ARES does not intend to take
an Action, ARES shall promptly inform Licensee which therefore is granted the right to initiate such an Action.

 

Notwithstanding
the foregoing, each Party shall have the right to join an Action relating to a ARES Patent, taken by the other Party at its own
expense.

 

(c) Costs
of an Action. Subject to the respective indemnification obligations set forth in Section 8, the Party taking an Action under
Section 5.5 (b) shall assume all costs associated with such Action, including any possible assistance as detailed under Section
5.5 (e), to the exception of the expenses that the other Party may incur if it elects to join such Action.

 

(d) Settlement.
Neither Party shall settle or otherwise compromise any Action without the other Party’s prior written consent. The settlement
will be treated in accordance with the law of the country to which the settlement relates.

 

(e) Reasonable
Assistance. The Party who does not join an Action shall provide reasonable assistance to the other Party, including providing
access to relevant documents and other evidence and making its employees available, subject to the other Party’s reimbursement
of any out-of-pocket expenses incurred by such assistance.

 

(f) Distribution
of Amounts Recovered. Any amounts recovered by the Party taking an Action pursuant to this Section 5.5, whether by settlement
or judgment, shall be allocated in the following order:

 

	(i)	to
reimburse the Party taking such Action for any costs incurred;
	 	 
	(ii)	to
                                         reimburse the Party not taking such Action for its costs incurred in such Action, if
                                         it joins such Action; and
	 	 
	(iii)	the
                                         remaining amount of such recovery shall be deemed to be Net Sales, and Licensee shall
                                         pay to ARES a royalty in accordance to Section 4.1.

 

5.6 Third
Party Actions Claiming Infringement.

 

(a) Notice.
If a Party becomes aware of any claim or action by a Third Party against either Party that claims that the Product, or its use,
Development, manufacture or Commercialization infringes such Third Party’s intellectual property rights (each, a “Third
Party Action”), such Party shall promptly notify the other Party of all details regarding such claim or action that
is reasonably available to such Party.

 

    	 	15	 

    	 

    

 

(b) Right
to Defend. ARES shall have a first right, but not the obligation, to defend, at its sole expense, a Third Party Action. If
ARES declines or fails to assert its intention to defend such Third Party Action within a brief time period (i.e. with sufficient
time for Licensee to take whatever action may be necessary prior to the date on which such right to defend shall lapse), then
Licensee shall have the right to defend such Third Party Action. The Party defending such Third Party Action shall have the sole
and exclusive right to select its own counsel for such Third Party Action.

 

(c) Consultation.
The Party defending a Third Party Action pursuant to this Section 5.6 (the “Controlling Party”) shall consult
with the non-Controlling Party on all material aspects of the defense. The non-Controlling Party shall have a reasonable opportunity
for meaningful participation in decision-making and formulation of defense strategy. The Parties shall reasonably cooperate with
each other in all such actions or proceedings.

 

(d) Appeal.
In the event that a judgment in a Third Party Action is entered against the Controlling Party and an appeal is available, the
Controlling Party shall have the first right, but not the obligation, to file such appeal. In the event the Controlling Party
does not desire to file such an appeal, it will promptly, in a reasonable time period (i.e., with sufficient time for the non-Controlling
Party to take whatever action may be necessary) prior to the date on which such right to appeal will lapse or otherwise diminish,
permit the non-Controlling Party to pursue such appeal at such non-Controlling Party’s own cost and expense. If applicable
law requires the other Party’s involvement in an appeal, the other Party shall be a nominal party of the appeal and shall
provide reasonable cooperation to such Party at such Party’s expense.

 

(e) Costs
of an Action. Subject to the respective indemnification obligations of the Parties set forth in Article 8 the Controlling
Party shall pay all costs associated with such Third Party Action other than the expenses of the other Party if the other Party
elects to join such Action. Each Party shall have the right to join a Third Party Action defended by the other Party, at its own
expense.

 

(f) No
Settlement Without Consent. No Controlling Party shall settle or otherwise compromise any Third Party Action by admitting
that any ARES Patent is invalid or unenforceable without the non-Controlling Party’s prior written consent.

 

article
6 - CONFIDENTIALITY

 

6.1 Confidentiality
Obligations. Each Party agrees that, for the Term and for five (5) years thereafter, it shall, and shall ensure that its officers,
directors, employees and agents shall, keep completely confidential and not publish or otherwise disclose and not use for any
purpose, except as expressly permitted hereunder, any Confidential Information disclosed to it by the other Party pursuant to
this Agreement. The foregoing obligations shall not apply to any Confidential Information disclosed by a Party hereunder to the
extent that the receiving Party can demonstrate that such Confidential Information:

 

	(i)	was
                                         already known to the receiving Party or its Affiliates, other than under an obligation
                                         of confidentiality, at the time of disclosure;

 

    	 	16	 

    	 

    

 

	(ii)	was
                                         generally available to the public or otherwise part of the public domain at the time
                                         of its disclosure to the receiving Party;
	 	 
	(iii)	became
                                         generally available to the public or otherwise part of the public domain after its disclosure
                                         and other than through any act or omission of the receiving Party in breach of this Agreement;
	 	 
	(iv)	was
                                         subsequently lawfully disclosed to the receiving Party or its Affiliates by a Third Party
                                         without an obligation of confidentiality other than in contravention of a confidentiality
                                         obligation of such Third Party to the disclosing Party; or
	 	 
	(v)	was
                                         developed or discovered by employees or agents of the receiving Party or its Affiliates
                                         who had no access to the Confidential Information of the disclosing Party.

 

Notwithstanding
the above, a Party may disclose information to the extent that such disclosure is reasonably necessary in connection with:

 

	(vi)	filing
                                         new patent applications or prosecuting or maintening ARES Patents, in accordance with
                                         the terms and conditions of this Agreement;
	 	 
	(vii)	prosecuting
                                         or defending any litigation;
	 	 
	(viii)	conducting
                                         pre-clinical studies or Clinical Trials;
	 	 
	(ix)	seeking
                                         Regulatory Approval of the Product;
	 	 
	(x)	seeking
                                         additional equity investments, provided that only such information is disclosed that
                                         is directly related to the Product; or
	 	 
	(xi)	complying
                                         with any applicable law, including securities law and the rules of any securities exchange
                                         or market on which a Party’s securities are listed or traded

 

In
addition, in connection with any permitted filing by either Party of this Agreement with any Governmental Body, included but not
limited to the U.S. Securities and Exchange Commission Agreement, the filing Party shall endeavor to obtain confidential treatment
of economic, trade secret information and such other information as may be requested by the other Party, and shall provide the
other Party with the proposed confidential treatment request with reasonable time for such other Party to provide comments, and
shall include in such confidential treatment request all reasonable comments of the other Party. disclosures set forth in clauses
(i) through (v) above, the disclosing Party shall, where reasonably practicable, give such advance notice to the other Party of
such disclosure requirement as is reasonable under the circumstances and will use its reasonable efforts to cooperate with the
other Party in order to secure confidential treatment of such Confidential Information required to be disclosed.

 

    	 	17	 

    	 

    

 

6.2 Publications.
ARES shall not publish any information relating to the Product without the written consent of Licensee, which consent shall
not be unreasonably withheld. If such information has already been publicly disclosed either prior to the Effective Date or after
the Effective Date through no fault of ARES or otherwise not in violation of this Agreement, ARES shall provide Licensee with
written notice prior to publication in a journal in which a submission is made by ARES. In any case, ARES shall submit to Licensee
for Licensee’s written approval (which approval be granted or denied in Licensee’s sole discretion) any publication
or presentation (including, without limitation, in any seminars, symposia or otherwise) of information related directly or indirectly
to the Product for review and approval.

 

Licensee
shall have the right to make such publications as it chooses, in its sole discretion, without the approval of ARES, provided that
ARES receives a copy of such publication prior to its publication.

 

6.3 Press
Releases and Disclosure. It is understood that the Parties intend to issue a joint press release announcing the execution
of this Agreement at a mutually agreed upon time and content (as attached hereto as Exhibit A), and that each Party thereafter
may desire or be required to issue subsequent press releases relating to the Agreement or activities thereunder. Except as otherwise
provided in this Section 6.3, neither Party may issue a press release relating to this Agreement or activities hereunder without
the prior consent of the other Party (which consent shall not be unreasonably withheld or delayed) and without complying with
this Section 6.3, provided, however that either Party may issue such press releases as it determines, based on advice of counsel,
are strictly necessary to comply with laws or regulations or for appropriate market disclosure. If a Party wishes to issue a press
release, it shall provide the other Party with a draft of such press release so that the other Party shall have sufficient time
to review such release. If no comments are provided by the end of such a ten (10) business day period following the receipt of
the draft, the release will be deemed to have been approved by the other Party. Following the initial press release announcing
this Agreement, either Party shall be free to disclose, without the other Party’s prior written consent, the existence of
this Agreement, the identity of the other Party and those terms of the Agreement which have already been publicly disclosed in
accordance herewith.

 

article
7 - REPRESENTATIONS AND WARRANTIES

 

7.1 Representations
and Warranties. Each Party represents and warrants to the other Party that, as of the Effective Date:

 

(1) such
Party is duly organized and validly existing under the Laws of the jurisdiction of its incorporation or organization;

 

(2) such
Party has taken all action necessary to authorize the execution and delivery of this Agreement and the performance of each and
all its obligations thereunder;

 

    	 	18	 

    	 

    

 

(3) this
Agreement is a legal and valid obligation of such Party, binding upon such Party and enforceable against such Party in accordance
with the terms of this Agreement and applicable Law. The execution, delivery and performance of this Agreement by such Party does
not conflict with, breach or create in any Third Party, the right to accelerate, terminate or modify any agreement or instrument
to which such Party is a party or by which such Party is bound, and does not violate any Law of any Governmental Body having authority
over such Party; and such Party has all right, power and authority to enter into this Agreement, to perform its obligations under
this Agreement.

 

In
addition to the above, ARES expressly represents and warrants to Licensee that it is in Control of, or is validly entitled to
engage, each and all elements of the ARES Technology transferred and/or licensed to Licensee and Sublicensees, pursuant to this
Agreement.

 

7.2 No
Further Representations and Warranties. ARES gives no representations or warranties that the ARES Patents which are patent
applications will be granted or, if granted, neither that they will be valid nor that the exercise of the rights granted to Licensee
hereunder will not infringe other patent rights or intellectual property rights vested in any Third Party. No representation or
warranties are provided with respect to the accuracy, completeness, and validity of the ARES Materials and ARES Know-How. Furthermore,
the ARES Materials listed on Schedules 1.24 and 1.26 are provided “AS IS” and ARES gives no representation or warranty
that the ARES Know-How and the ARES Materials listed on Schedules 1.24 and 1.26 respectively will be in existence, are complete,
accurate, valid or else on the Effective Date. Similarly, ARES gives no representation or warranty on the accuracy of the results
of the testing activities, detailed under section 3 of a certain option agreement entered into by and between Licensee and ARES
on June 5th, 2013.

 

ARES
DISCLAIMS ALL OTHER WARRANTIES EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, WARRANTIES TO TITLE OR NON-INFRINGEMENT OR IMPLIED
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

Similarly,
Licensee gives no further representations or warranties.

 

article
8 – INDEMNIFICATION AND INSURANCE

 

8.1 Indemnification
by Licensee. Licensee shall indemnify, defend and hold ARES and its Affiliates and each of their respective employees, officers,
directors and agents (the “ARES Indemnitees”) harmless from and against any and all liability, damage, loss,
cost or expense (including reasonable attorneys’ fees) to the extent arising out of Third Party claims or suits related
to: (a) Licensee’s negligence or willful misconduct; (b) Licensee’s breach of its obligations under this Agreement
; (c) breach by Licensee of its representations or warranties set forth in Section 7.1; (d) the Development, manufacture and Commercialization
of Products, including without limitation product liability claims; provided, however, that Licensee’s obligations pursuant
to this Section 8.1 shall not apply (i) to the extent such claims or suits result from the negligence or willful misconduct of
any of the ARES Indemnitees, or (ii) with respect to claims or suits arising out of breach by ARES of its representations, warranties
or covenants set forth in Section 7.1.

 

    	 	19	 

    	 

    

 

8.2 Indemnification
by ARES. ARES shall indemnify, defend and hold Licensee and its Affiliates and each of their respective agents, employees,
officers and directors (the “Licensee Indemnitees”) harmless from and against any and all liability, damage,
loss, cost or expense (including reasonable attorney’s fees) to the extent arising out of Third Party claims or suits (including
Third Party Actions) related to: (a) ARES’s negligence or willful misconduct; (b) ARES’s performance of its obligations
under this Agreement; or (c) breach by ARES of its representations, warranties or covenants set forth in Section 7.1; provided,
however, that ARES’s obligations pursuant to this Section 8.2 shall not apply (i) to the extent that such claims or suits
result from the negligence or willful misconduct of any of Licensee Indemnitees or (ii) with respect to claims or suits arising
out of a breach by Licensee of its representations or warranties set forth in Section 7.1.

 

8.3 No
Consequential Damages. EXCEPT WITH RESPECT TO EACH PARTY’S INDEMNIFICATION OBLIGATIONS UNDER SECTION 8.1 OR SECTION
8.2, AS APPLICABLE, IN NO EVENT SHALL EITHER PARTY OR ANY OF ITS AFFILIATES BE LIABLE TO THE OTHER PARTY OR ANY OF ITS AFFILIATES
FOR SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, INCLUDING LOSS OF PROFITS, WHETHER IN CONTRACT, WARRANTY,
TORT, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREIN
OR ANY BREACH HEREOF. NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS AGREEMENT SHALL LIMIT EITHER PARTY FROM SEEKING OR OBTAINING
ANY REMEDY AVAILABLE UNDER LAW FOR ANY BREACH OF BY THE OTHER PARTY OF ITS CONFIDENTIALITY AND NON-USE OBLIGATIONS UNDER ARTICLE
8.

 

8.4 DISCLAIMER.
LICENSOR HAS INFORMED LICENSEE THAT ARES MATERIALS HAVE BEEN PRODUCED in 1993. AS ALREADY SET FORTH IN SECTION 7.2, THE ARES
MATERIAL IS SUPPLIED WITH NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT. LICENSEE ACKNOWLEDGES THAT IT IS AWARE OF THE INHERENT RISK POTENTIAL OF THE ARES
MATERIALS, INCLUDING STEMMING FROM THE AGE OF THE MATERIAL. USE OF THESE MATERIALS IS SOLELY WITHIN THE DISCRETION OF LICENSEE
AND LICENSEE WAIVES ANY AND ALL REQUESTS FOR LIABILITY COVERAGE AGAINST MERCK; INCLUDING FOR THIRD PARTY CLAIMS.

 

8.5 Notification
of Claims; Conditions to Indemnification Obligations. Except for the specifics foreseen under the scope of Section 5.6, as
a condition to a Party’s right to receive indemnification under this Article 8, it shall: (a) promptly notify the other
Party as soon as it becomes aware of a claim or suit for which indemnification may be sought pursuant hereto; (b) cooperate, and
cause the individual indemnitees to cooperate, with the indemnifying Party in the defense, settlement or compromise of such claim
or suit; and (c) permit the indemnifying Party to control the defense, settlement or compromise of such claim or suit, including
the right to select defense counsel. In no event, however, may the indemnifying Party compromise or settle any claim or suit in
a manner which admits fault or negligence on the part of the indemnified Party or any indemnitee without the prior written consent
of the indemnified Party. Each Party shall reasonably cooperate with the other Party and its counsel in the course of the defense
of any such suit, claim or demand, such cooperation to include without limitation using reasonable efforts to provide or make
available documents, information and witnesses. The indemnifying Party shall have no liability under this Article 8 with respect
to claims or suits settled or compromised without its prior written consent.

 

    	 	20	 

    	 

    

 

8.6 Insurance.
During the Term, each Party shall obtain and maintain, at its sole cost and expense, insurance (including any self-insured arrangements)
in types and amounts, that are reasonable and customary in the United States pharmaceutical and biotechnology industry for companies
engaged in comparable activities. It is understood and agreed that this insurance shall not be construed to limit either Party’s
liability with respect to its indemnification obligations hereunder. Each Party will, except to the extent self insured, provide
to the other Party upon request a certificate evidencing the insurance such Party is required to obtain and keep in force under
this Section 8.6.

 

article
9 – TERM AND TERMINATION

 

9.1 Term
of Agreement. The term of this Agreement (the “Term”) shall commence on the Effective Date and, unless
earlier terminated as provided in this Section 9, shall continue in full force and effect, on a country-by-country and Product-by-Product
basis, until the earlier of (i) the expiry of the Royalty Term in such country, or (ii) the transfer of the related ARES Patent(s)
to Licensee, as the case may be, at which time this Agreement shall expire in its entirety with respect to such Product in such
country. In case of such expiry, Licensee undertakes to pay any surviving Monetary Third Party Obligation, if any. Section 9.5
shall then apply.

 

9.2 Termination
of the Agreement for Convenience. At any time during the Term, Licensee may, at its convenience, terminate this Agreement
in its entirety, or on a Product-by-Product or country-by-country basis, upon one-hundred-and-twenty- (120-) days prior written
notice to ARES.

 

9.3 Termination
for Breach. Either Party may terminate this Agreement, and the rights and licenses granted hereunder, with a sixty- (60-)
days prior notice to the other Party if the other Party breaches any material provision of this Agreement, including any financial
obligations under Section 4.1, unless the other Party cures such breach within the period of such notice. Such termination shall
be in addition to any other remedies available to the terminating Party at Law.

 

9.4 
Termination on Bankruptcy. To the extent permitted by applicable Law, all rights and licenses granted by ARES to Licensee
pursuant to this Agreement shall terminate on the insolvency or bankruptcy of such Party or its Affiliates, and each Party hereby
claims the benefit of any applicable Law which may enable it to prevent such termination.

 

9.5 
Effects of Termination.

 

(a) Accrued
Rights and Obligations. Termination of this Agreement shall not release either Party from its obligations accrued prior to
the effective date of termination nor deprive either Party from any rights that shall survive termination according to this Agreement.

 

    	 	21	 

    	 

    

 

(b) Surviving
Provisions. Article 1, Article 4 as applicable, Article 6, Article 8, this Section 9.5, and Article 10 and 11 shall survive
any termination of this Agreement.

 

(c) Consequences
of Termination. Upon any termination of this Agreement , Licensee shall promptly and fully disclose and transfer to ARES all
rights, title and interest in and to, the ARES Know How and the ARES Patents; and

 

	(i)	All
                                         licenses granted to Licensee under Section 2.1 shall terminate;
	 	 
	(ii)	At
                                         ARES’s sole discretion, ARES has the right to assume legal responsibility for any
                                         Clinical Trials of the Product. Licensee shall, upon written request by ARES, transfer
                                         to ARES all regulatory documentation and Regulatory Approvals prepared or obtained by
                                         or on behalf of Licensee prior to the date of such termination, to the extent solely
                                         related to Products and transferable. In the case of ARES’ termination for material
                                         breach or Licensee’s termination for convenience the above transfer shall be at
                                         Licensee’s cost and expense. In the case of Licensee’s termination for breach
                                         the transfer shall be at ARES’ cost and expense.
	 	 
	(iii)	Licensee
                                         shall return to ARES all relevant records and materials in its possession or Control
                                         containing or comprising the ARES Know-How or such other Confidential Information of
                                         ARES.
	 	 
	(iv)	Licensee
                                         shall, at ARES’s option, transfer to ARES any and all ARES Materials free of charge,
                                         as well as chemical, biological or physical materials relating to or comprising the Products,
                                         including clinical supplies of Products, that are owned or Controlled by Licensee, upon
                                         commercial terms to be mutually agreed upon between the Parties in good faith.
	 	 
	(v)	To
                                         the extent not prohibited by Law, Licensee shall wind down any ongoing Clinical Trials
                                         with respect to the Product, or at ARES’s option, transfer such clinical trials
                                         to ARES, in which case Licensee shall provide ARES with the relevant Clinical Trial supplies
                                         of the Product free of charge. In the case of ARES’ termination for material breach
                                         or Licensee’s termination for convenience the above transfer shall be at Licensee’s
                                         cost and expense. In the case of Licensee’s termination for breach the transfer
                                         shall be at ARES’ cost and expense.
	 	 
	(vi)	Licensee,
                                         its Affiliates and Sublicensees shall be entitled, during the eighteen- (18-) month period
                                         following such termination, to sell any commercial inventory of Products which remains
                                         on hand as of the date of the termination, so long as Licensee pays to ARES the royalties
                                         applicable to said subsequent sales in accordance with the terms and conditions set forth
                                         in this Agreement. Any commercial inventory remaining following such eighteen- (18-)
                                         month period shall be offered for sale to ARES, upon commercial terms to be mutually
                                         agreed upon between the Parties in good faith.
	 	 
	(vii)	Licensee
                                         shall, if the termination is notified by ARES or by Licensee under Section 9.2, at ARES’
                                         option, assign the trademarks owned by Licensee relating to the Product(s) to ARES or
                                         otherwise transfer rights to such trademarks to ARES, upon commercial terms to be agreed
                                         upon between the Parties.

 

    	 	22	 

    	 

    

 

	(viii)	At
                                         ARES’s request, Licensee shall, if the termination is notified by Licensee under
                                         Section 9.2 or by ARES, negotiate in good faith a grant by Licensee or its Affiliates
                                         to ARES of a milestone (including an up-front payment) and royalty-bearing license in
                                         the Field under any Patent Rights and Know-How Controlled by Licensee to the extent necessary
                                         to make, have made, import, use, offer to sell and sell such Product(s). Such license
                                         shall contain such customary representations, warranties, covenants and agreements satisfactory
                                         in form and substance to the Parties and their legal advisors as are necessary or appropriate
                                         for transactions of this type. For the avoidance of doubt, such obligation to negotiate
                                         in good faith does not impose on either Party an obligation to enter into an agreement
                                         for the grant of such a license if the Parties cannot agree through such good faith negotiations
                                         on the terms and conditions of such license.

 

(d) Upon
termination of this Agreement of any sort, each Sublicensee shall continue to have the rights and license set forth in its sublicense
agreements, which agreements shall be automatically assigned to ARES, provided however, that such Sublicensee is not then in breach
of any of its material obligations under its sublicense agreement.

 

article
10

DISPUTE RESOLUTION - JURISDICTION

 

10.1 Disputes.
The Parties agree to first establish and follow procedures to facilitate the resolution of disputes arising out of or in relation
with this Agreement in an expedient manner by mutual cooperation and without resort to litigation. In the event that the Parties
are unable to resolve such dispute through diligent review and deliberation by their respective senior executives within thirty
(30) days from the day that one Party had notified the issue as a dispute in written notice to the other Party, then either Party
shall have the right to escalate such matter to their respective Executive Officers as further detailed under Section 10.2.

 

10.2 Escalation
to Executive Officers. Either Party may, by written notice to the other Party, request that a dispute arising out of or in
relation with this Agreement that remains unresolved by the respective senior executives of the Parties for a period of thirty
(30) days be resolved by the Executive Officers, within fifteen (15) days after referral of such dispute to them. If the
Executive Officers cannot resolve such dispute within fifteen (15) days after referral of such dispute to them, then, at any time
after such fifteen (15) day period, either Party may proceed to enforce any and all of its rights with respect to such dispute.

 

For
the purposes of Section 10.2, “Executive Officers” means, together, a member of the senior management of the
pharmaceutical division of ARES and the Chief Executive Officer of Licensee.

 

10.3 Injunctive
Relief. No provision herein shall be construed as precluding a Party from bringing an action for injunctive relief or other
equitable relief prior to the initiation or completion of the above procedure.

 

10.4 Jurisdiction.
Any dispute, controversy or claim arising out of or in relation to this Agreement, including the validity, invalidity, breach
or termination thereof, shall be settled exclusively by the courts of Geneva, Switzerland, subject to appeal to the Swiss Federal
Tribunal.

 

    	 	23	 

    	 

    

 

article
11- MISCELLANEOUS

 

11.1 Relationship
of the Parties. Nothing in this Agreement is intended or shall be deemed, for financial, tax, legal or other purposes, to
constitute a partnership, agency, joint venture or employer-employee relationship between the Parties.

 

11.2 Assignment.

 

(a) Assignment
by ARES. Except as expressly provided herein, neither this Agreement nor any interest hereunder shall be assignable, nor any
other obligation delegable, by ARES without the prior written consent of Licensee (not to be unreasonably withheld or delayed).
Notwithstanding the foregoing, ARES may assign this Agreement or delegate its obligations in whole without the consent of Licensee
to a successor to substantially all of the business of ARES to which this Agreement relates, in connection with any merger, sale
of stock, sale of assets or other similar transaction. In such event, ARES undertakes to inform Licensee in a timely manner.

 

(b) Assignment
by Licensee. Licensee may not assign this Agreement, in whole or in part, to any Affiliate or Third Party without the consent
of ARES (not to be unreasonably withheld or delayed).

 

(c) No
assignment under this Section 11.2 shall relieve the assigning Party of any of its responsibilities or obligations hereunder and
provided, further, that as a condition of such assignment, the assignee shall agree to be bound by all obligations of the assigning
Party hereunder.

 

(d) This
Agreement shall be binding upon the successors and permitted assigns of the Parties.

 

(e) Any
assignment not in accordance with this Section 11.2 shall be null and void.

 

11.3 Further
Actions. Each Party agrees to execute, acknowledge and deliver such further instruments and to do all such other acts as may
be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 

11.4 Accounting
Procedures. Each Party shall calculate all amounts hereunder and perform other accounting procedures required hereunder and
applicable to it in accordance with either, as applicable (a) United States generally accepted accounting principles (US GAAP)
or (b) International Financial Reporting Standard (IFRS), whichever is normally used by such Party to calculate its financial
position, and in each case consistently applied by such Party.

 

11.5 Force
Majeure. Neither Party shall be liable to the other Party or be deemed to have breached or defaulted under this Agreement
for failure or delay in the performance of any of its obligations under this Agreement for the time and to the extent such failure
or delay is caused by or results from acts of God, earthquake, riot, civil commotion, terrorism, war, strikes or other labor disputes,
fire, flood, failure or delay of transportation, omissions or delays in acting by a Governmental Body, acts of a government or
an agency thereof or judicial orders or decrees or restrictions or any other reason which is beyond the control of the respective
Party. The Party affected by force majeure shall provide the other Party with full particulars thereof as soon as it becomes aware
of the same (including its best estimate of the likely extent and duration of the interference with its activities), and will
use Commercially Reasonable Efforts to overcome the difficulties created thereby and to resume performance of its obligations
hereunder as soon as practicable.

 

    	 	24	 

    	 

    

 

11.6 No
Trademark Rights. No right, express or implied, is granted by this Agreement to a Party to use in any manner the name or any
other trade name or trademark of the other Party in connection with the performance of this Agreement or otherwise.

 

11.7 Entire
Agreement of the Parties; Amendments. This Agreement and the Schedules and Exhibits hereto constitute and contain the entire
understanding and agreement of the Parties respecting the subject matter hereof and cancel and supersede any and all prior negotiations,
correspondence, understandings and agreements between the Parties, whether oral or written, regarding such subject matter, in
particular a certain option agreement entered into on June 5th, 2013. No waiver, modification or amendment of any provision
of this Agreement shall be valid or effective unless made in a writing referencing this Agreement and signed by a duly authorized
officer of each Party.

 

11.8 Captions.
The captions to this Agreement are for convenience only, and are to be of no force or effect in construing or interpreting
any of the provisions of this Agreement.

 

11.9 Governing
Law. This Agreement shall be governed by and interpreted in accordance with the substantive laws of Switzerland, excluding
application of any conflict of laws principles that would require application of the Laws of a jurisdiction outside of Switzerland.

 

11.10 Notices
and Deliveries. Any notice, request, approval or consent required or permitted to be given under this Agreement shall be in
writing and shall be deemed to have been sufficiently given if delivered in person, transmitted by facsimile (receipt verified)
or by express courier service (signature required) to the Party to which it is directed at its address or facsimile number shown
below or such other address or facsimile number as such Party shall have last given by notice to the other Party.

 

If
to ARES , addressed to:

 

Ares
Trading S.A.

Zone
Industrielle de l’Ouriettaz

1170 Aubonne 

Switzerland 

Attn: Legal Department

Facsimile:
41-22-414-3070

 

If
to Licensee, addressed to:

 

Relief
Therapeutics SA

c/o
Fidraco

54,
Rue Agasse

1208
Geneva

Switzerland

Attn: Board of Directors

 

    	 	25	 

    	 

    

 

11.11 Waiver.
A waiver by either Party of any of the terms and conditions of this Agreement in any instance shall not be deemed or construed
to be a waiver of such term or condition for the future, or of any other term or condition hereof. All rights, remedies, undertakings,
obligations and agreements contained in this Agreement shall be cumulative and none of them shall be in limitation of any other
remedy, right, undertaking, obligation or agreement of either Party.

 

11.12 Severability.
When possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable
Law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable Law, such provision will be
ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement. The Parties
shall make a good faith effort to replace the invalid or unenforceable provision with a valid one which in its economic effect
is most consistent with the invalid or unenforceable provision.

 

11.13 Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed an original, and all of which together
will be deemed to be one and the same instrument. A facsimile copy of this Agreement, including the signature pages, will be deemed
an original.

 

    	 	26	 

    	 

    

 

IN
WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed and delivered in duplicate by their duly authorized
representatives with legal and binding effect as of the date first above written.

 

	LICENSEE	 	ARES
	 	 	 	 	 
		/s/
    Michel Dreano	 	 	/s/
    James Singleton
	By:	Michel
    Dreano	 	By:	James
    Singleton
	Its:	Chairman
    of the Board of Directors	 	Its:	Authorized
    Representative
	 	 	 	 	 
	 	 	 	 	/s/
    Cedric Hyde
	 	 	 	By:	Cedric
    Hyde
	 	 	 	Its:	Authorized
    Representative

 

    	 	27

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