Document:

Exhibit 10.8

 

EMPLOYMENT
AGREEMENT

 

 

THIS EMPLOYMENT AGREEMENT
(“Agreement”) is made and shall be effective as of February 18, 2013 (the “Effective Date”),
by and between Capricor, Inc., a Delaware corporation, whose offices are located at 8840 Wilshire Blvd., 3rd
Floor, Beverly Hills, California 90211 (the “Company”), and Dr. Anthony H. Davies (“Employee”)
who resides at 15945 Niles Road, Los Gatos, California 95033.

 

A. Capricor
extended an offer of employment to Employee pursuant to an Offer Letter dated January 9, 2013 which has been accepted by Employee
(the “Offer Letter”).

 

B. The parties
now desire to enter into a definitive agreement which shall set forth the full terms and conditions of Employee’s employment.

 

NOW, THEREFORE, in
consideration of the mutual covenants, promises, and agreements set forth herein and for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereby mutually agree as follows:

 

1. EMPLOYMENT. The
Company hereby agrees to employ Employee, and Employee hereby agrees to accept employment with the Company, upon the terms and
conditions herein set forth.

 

2.  DUTIES AND POWERS OF EMPLOYEE

 

2.1 Duties
of Employee. . Employee shall serve as the Chief Technology Officer of the Company reporting directly to the Chief Executive
Officer. In that capacity, Employee shall do and perform all services, acts or things necessary or advisable to develop, manage
and execute a to-market commercialization plan for the Company’s therapeutic products (including, but not limited to CDC’s).
Employee’s responsibilities shall include, without limitation, the following:

		·	process development and manufacturing;

 

		·	evaluating information and making recommendations to the Company’s Board of Directors (the
“Board”) regarding process development and manufacturing for new products being considered by the Company;

 

		·	participating in the Company’s fundraising activities, when necessary, which may include
travel from time to time;

 

		·	evaluating off-site manufacturing options, including those outside the U.S. and making recommendations
regarding same;

 

    	1

    	 

    

 

 

Exhibit 10.8

 

		·	supervising the manufacturing, process development and, if requested, quality divisions including
all employees therein; and

 

		·	working with the Company’s team to formulate budgets for expansion of the Company.

 

During the duration
of his employment, and except for periods of illness, vacation, or reasonable leaves of absence, Employee shall devote his full
time and attention to the business and affairs of the Company, as such business and affairs now exist and as they hereafter may
be changed or added to, under and pursuant to the general direction of the Company’s Board.

 

2.2 Place of
Performance. Employee shall perform most of his duties from the Company’s offices located in Los Angeles, California
unless otherwise specifically authorized in writing. However, the parties acknowledge that as of the Effective Date of this Agreement,
Employee is residing in Los Gatos, California and that for a period not to exceed six (6) months from the Effective Date (the “Relocation
Period”), Employee shall be required to commute to Los Angeles to perform his responsibilities. During the Relocation
Period or until Employee actually relocates to Los Angeles, whichever occurs first, Employee shall spend at least three (3) days
each week in Los Angeles and work remotely on the remaining two (2) days of the week, unless Employee is traveling to other locations
on behalf of the Company. Before the expiration of the Relocation Period, Employee shall be required to relocate his residence
to Los Angeles. 

 

2.3 Other
Activities. During the continuation of his employment hereunder, Employee shall not provide any work or services to any
other person or organization without the prior written consent of the Chief Executive Officer or the Board, which consent may be
withheld in their sole and absolute discretion. Nothing contained herein shall prohibit Employee from making passive personal investments
in publicly traded companies so long as Employee’s investment does not constitute an equity position greater than five percent
(5%) of such company’s outstanding securities.

 

3. COMPENSATION

 

3.1 Base Salary.
In consideration of the services to be provided by Employee during his employment hereunder, Employee shall receive a base salary
of two hundred sixty thousand dollars ($260,000) per annum, which sum shall be payable in semi-monthly installments consistent
with Company pay practices.

 

3.2 Bonuses.
 In addition to the base salary, Employee will also be considered for an annual bonus at the end of each fiscal year of the
Company in an amount up to twenty percent (20%) of his base salary, the awarding and amount
of which will be in the discretion of the Board and dependent upon successful completion of performance-based milestones to be
determined by the Chief Executive Officer and the Company’s Compensation Committee. The Company shall have the discretion
to pay any amount awarded either in cash or in options to purchase Common Shares of the Company valued in a like amount. If options
are granted to Employee as a bonus, they will be deemed fully vested on the date of grant. If Employee does not work for the entire
fiscal year of the Company and/or if Employee is in default of any material term of this Agreement, the Company, in its discretion,
may discontinue, deny, prorate or reduce the amount of any bonus which otherwise could be awarded.

 

    	2

    	 

    

 

Exhibit 10.8

 

3.3 Commuting
Expenses. During the Relocation Period and while Employee is commuting to Los Angeles, the Company will reimburse Employee
for all travel expenses incurred by him including airline flights at the best available coach rates, ground transportation, lodging
at rates pre-approved by the Chief Executive Officer and meals while in Los Angeles (collectively, the “Commuting Expenses”).
Once Employee has actually completed his move to Los Angeles, the Company will provide Employee with a housing allowance of four
thousand dollars ($4,000) per month for a period of nine (9) months. If Employee’s move is completed within the Relocation
Period, the reimbursement of the Commuting Expenses shall cease. All such payments to Employee shall be subject to deductions for
taxes and other withholdings as required by applicable Federal and state law. Each such expense shall be reimbursable only if Employee
furnishes to the Company adequate records, receipts and other documentary evidence of any such expenses incurred. Reimbursements
shall be made within thirty (30) days of the Company’s receipt of such expense records from Employee.

 

3.4 Stock Options.

 

(a) Grant
of Stock Option. As further consideration for the services to be provided by Employee hereunder, subject to the approval
of the Company’s Board, Employee shall be granted a stock option under the Company’s 2012 Restated Equity Incentive
Plan (the “Stock Plan”) to purchase an aggregate of 91,245 shares of the Company’s Common Stock (the “Option
Shares”). The Option Shares shall vest at the rate of twenty-five percent (25%) per year over a four-year period commencing
on the first anniversary of the date of grant and continuing at the rate of twenty-five percent (25%) on each of the three (3)
anniversary dates thereafter. The exercise price for the Option Shares shall be equal to the fair market value of the shares on
the date of grant as determined by the Company’s Board. The Option Shares shall be further subject to the provisions of the
Stock Plan and the applicable Stock Option Agreement to be executed by the Company and Employee.

 

(b) Accelerated
Vesting. In the event of a Change of Control of the Company (as defined below) and Employee’s employment is terminated,
or his position or responsibilities are materially diminished, within the twelve (12) month period following the effective date
of such Change of Control, the vesting of all of Employee’s then unvested Option Shares shall be accelerated and deemed fully
vested as if the termination had not occurred; provided, however, that the exercise of such Option Shares shall be governed by
the provisions of the relevant plan and stock option agreement applicable thereto.

 

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Exhibit 10.8

 

(i) The term
"Change of Control" means: (1) a sale of all or substantially all of the assets of the Company; or (2) the
acquisition of more than fifty percent (50%) of the voting power of the outstanding securities of the Company by another person
or entity by means of any transaction or series of related transactions (including, without limitation, reorganization, merger
or consolidation) unless the stockholders of record of the Company as constituted immediately prior to such acquisition will, immediately
after such acquisition (by virtue of their continuing to hold such stock and/or their receipt in exchange therefor of securities
issued as consideration for the outstanding stock of the Company) hold at least fifty percent (50%) of the voting power of the
surviving or acquiring entity.

 

3.5  Deduction
of Taxes. The Company shall have the right to deduct or withhold from the compensation due to Employee hereunder any and
all sums required for Federal Income and Social Security taxes and all other federal, state or local taxes now applicable or that
may be enacted and become applicable in the future.

 

4. OTHER BENEFITS

 

4.1 Insurance.
Commencing on the first day of the month following the thirty (30)-day period after the Effective Date of this Agreement, and so
long as Employee remains employed by the Company, Employee shall be entitled to participate in any medical and dental insurance
plan which is from time to time generally made available to other senior Employees of the Company. The right to receive such insurance
benefits shall vest if and only if any of the foregoing types of insurance plans are adopted and maintained by the Company. In
addition, commencing on the second year of Employee’s employment, the sum of one thousand dollars ($1,000) shall be deposited
into a flexible spending account earmarked for Employee’s benefit to be used only for qualified medical expenses. If Employee’s
employment is terminated for whatever reason before such sum is expended by him, any remaining balance will be cancelled upon termination
of employment.

 

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Exhibit 10.8

 

4.2  Vacation
and Personal Leave.

 

(i) Vacation.
Employee shall be entitled to a maximum of fifteen (15) working days’ vacation time during each one-year period of this Agreement
without loss of compensation, to be taken at a time or times mutually agreed upon by the Company and Employee. Vacation days may
be taken only at such times as are mutually convenient for the Company and Employee. If Employee is unable for any reason to take
the total amount of authorized vacation time for any year, Employee may accrue no more than five (5) days of that time and add
it to vacation time for any following year or alternatively, may receive a cash payment in an amount equal to the amount of annual
salary attributable to that period. Once the maximum accrual has been reached, all further accruals will cease. Vacation accruals
will recommence after Employee has taken his vacation and his accrued hours have dropped below the maximum or Employee has received
pay in lieu of the vacation time.

 

(ii) Personal Days.
Employee shall be entitled to a maximum of four (4) working days’ personal leave (including sick days) during each one-year
period of this Agreement without loss of compensation.

 

4.3 Business
Expenses. The Company shall reimburse Employee monthly for all business expenses incurred by Employee in performing his
duties hereunder, including, without limitation: (a) expenses incurred for business travel; (b) meals, lodging, and ground transportation
expenses; (c) pre-approved promotional expenses; (d) long distance telephone charges; and (e) any other expenses which the Company
determines is necessary in connection with the performance of Employee’s duties hereunder. Each such expense shall be reimbursable
only if it is of such a nature qualifying it as a proper deduction on the federal and state income tax returns of the Company.
Employee shall furnish to the Company adequate records, receipts and other documentary evidence required by federal and state statutes
and regulations issued by the appropriate taxing authorities for the substantiation of that expenditure as an income tax deduction.

 

4.4 Sarbanes-Oxley
Act of 2002. Notwithstanding anything herein to the contrary, if the Company determines, in its good faith judgment, that
any provision of this Agreement is likely to be interpreted as a personal loan prohibited by the Sarbanes-Oxley Act of 2002 and
the rules and regulations promulgated thereunder (the “Act”), then such provision shall be modified as necessary
or appropriate so as to not violate the Act and if this cannot be accomplished, then the Company shall use its reasonable efforts
to provide Employee with similar, but lawful, substitute benefits at a cost to the Company not to significantly exceed the amount
the Company would have otherwise paid to provide such benefit(s) to Employee.

 

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Exhibit 10.8

 

5. OBLIGATIONS
OF EMPLOYEE

 

5.1 Confidential
and Proprietary Information. Employee acknowledges and agrees that he has been given, and during the continuance of this
Agreement and in the course of discharging his duties hereunder he will have access to and become acquainted with, information
and know-how concerning the operation, products and processes of the Company which are confidential and/or proprietary to the Company
(and/or its licensors and affiliates). As a condition of Employee’s employment, Employee agrees to execute an At-Will
Employment, Confidential Information, and Invention Assignment Agreement (the “Proprietary Rights Agreement”)
which, among other things, shall set forth Employee’s obligations with respect to the Company’s confidential and proprietary
information. An executed copy of the Proprietary Rights Agreement shall be attached hereto as Exhibit A and incorporated
herein by reference.

 

 

 

5.2 Non-Competition
and Non-Solicitation By Employee. Employee acknowledges and agrees that his duty of loyalty to the Company is of paramount
importance.  As a condition of Employee’s employment, Employee acknowledges and agrees to abide by the provisions
regarding non-competition and non-solicitation set forth in the Proprietary Rights Agreement attached hereto as Exhibit A.

 

5.3 Equitable
Remedies. In the event of a breach or threatened breach of the provisions of Section 5 of this Agreement, including its
subsections, the Company shall be entitled to an injunction enjoining Employee from such breach, but nothing herein shall be construed
as prohibiting the Company from pursuing in addition any other remedies available for such breach or threatened breach.

 

6. TERMINATION OF EMPLOYMENT

 

6.1 At-Will
Employment. The employment of Employee shall commence on the Effective Date and shall continue in effect until the termination
hereof by either party. The employment of Employee is At-Will and may be terminated at the will of either the Company or Employee,
with or without cause or notice.

 

6.2 Payments
Due Upon Termination. Upon termination of Employee’s employment, the Company shall pay to Employee on such date required
by applicable law, a lump sum amount in cash equal to Employee’s base salary and other payments due through the Date of Termination
to the extent not theretofore paid.

 

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Exhibit 10.8

 

7. GENERAL PROVISIONS

 

7.1 Notices.
Any notices to be given by either party to the other may be effected either by personal delivery in writing, by facsimile or electronic
transmission or by mail, registered or certified, postage prepaid. Mailed notices shall be addressed to the parties at the addresses
appearing in the introductory paragraph of this Agreement, but each party may change its address by written notice in accordance
with this section. Notices personally delivered or sent by facsimile transmission shall be deemed communicated as of the date of
actual receipt; mailed notices shall be deemed communicated two (2) days after the date on which they are mailed.

 

7.2 Entire Agreement.
This Agreement supersedes any and all other agreements, either oral or in writing, between the parties with respect to the employment
of Employee by the Company, including the Offer Letter but excluding the Proprietary Rights Agreement and a Dispute Resolution
and Mutually Binding Arbitration Agreement to be executed by the parties, and contains all of the covenants and agreements between
the parties with respect to that employment in any manner whatsoever. Each party acknowledges that no representations, inducements,
promises, or agreements, orally or otherwise, other than those set forth herein, have been made by any party, or anyone acting
on behalf of any party, and that no other agreement, statement, or promise between the parties not contained in this Agreement
shall be valid or binding on the parties. Any modification of this Agreement will be effective only if it is in writing signed
by the party to be charged.

 

7.3 Severability.
 If any one or more provisions in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable,
such provision shall be judicially modified accordingly to make such provision enforceable and if not possible to reasonably
do so, such provision shall be deemed excluded from this Agreement. In such case, the balance of this Agreement shall be interpreted
as if such provision were so excluded and shall be enforceable in accordance with its terms.

 

7.4 Waiver.
The failure of either party to insist on strict compliance with any of the terms, covenants, or conditions of this Agreement by
the other party shall not be deemed a waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any
right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times.

 

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Exhibit 10.8

 

7.5 Governing
Law. This Agreement and each of its provisions shall be governed by and construed in accordance with the laws of the State
of California (without regard to its conflict of law principles), except that the laws of the State of Delaware shall govern all
matters as to the Stock Plan and Stock Option Agreement.

 

7.6 Agreement
Binding. This Agreement shall inure to the benefit of and be binding upon the Company and its affiliates, successors and
assigns. The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to
all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in
the same manner and to the same extent that the Company would be required to perform it as if no such succession had taken place.

 

7.7 Survival.
Notwithstanding any provision of this Agreement to the contrary, the provisions of Sections 5 and 7 (and each of their subsections)
shall survive the expiration or termination of this Agreement as necessary to give full effect to all of the provisions contained
herein.

 

7.8 Headings
and Captions. Section headings and captions used in this Agreement are for reference only and shall not affect the construction
of this Agreement.

 

 

Signature Page Follows

 

    	8

    	 

    

 

IN WITNESS WHEREOF,
the parties have caused this Agreement to be executed as of the Effective Date.

 

 

	 	 	 	 
	 	Employee:	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 /s/
    Anthony Davies 	 
	 	Dr. Anthony H. Davies	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	Capricor, Inc.	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Linda Marban 	 
	 	 	Linda Marbán, Ph.D.	 
	 	 	Chief Executive Officer	 

 

    	9Exhibit 10.9

 

CONSULTING AGREEMENT 

 

THIS
CONSULTING AGREEMENT (“Agreement”) is
made and shall be effective as of the 24th day of March, 2014 (the “Effective
Date”), by and between Capricor, Inc., a Delaware
corporation with its offices at 8840 Wilshire Blvd., 2nd Floor, Beverly Hills, California 90211 (“Capricor”)
and Frank Litvack, MD, whose address is c/o 8550 Wilshire Blvd., Ste. 840, Los Angeles,
California 90010  (“Consultant”).

 

 

RECITALS

 

A. Capricor
is engaged in research and development of stem-cell therapies for the treatment of cardiovascular disease.

 

B. Consultant
is a medical practitioner and businessman experienced in the development, operation and financing of medtech and biotech companies
in the healthcare industry.

 

C. Consultant
has been providing consulting services and advice to Capricor since 2010 and the parties are desirous of memorializing the terms
of Consultant’s continuing consulting relationship with Capricor.

 

 

NOW, THEREFORE, in
consideration of the mutual promises and covenants set forth in this Agreement and intending to be legally bound hereby, the parties
mutually agree as follows:

 

 

1. Engagement
of Consultant.

 

1.1 Engagement.
Capricor hereby agrees to continue the engagement of Consultant, and Consultant hereby agrees to accept such continuing engagement
with Capricor, to serve as an advisor and consultant to the management of Capricor and its parent, Capricor Therapeutics, Inc.,
(“CAPR”) and to provide such other consultation and advice as may be requested from time to time (collectively
the “Services”). In such capacity, Consultant shall use his best efforts and abilities in the performance of
the Services hereunder. Capricor may, from time to time, contract with the Consultant for other services and other specific projects
as may be agreed to by the parties.

 

1.2 Services
Non-Exclusive. During the continuance of this Agreement, it shall not be a violation of this Agreement for Consultant to
engage in other ventures or activities, whether existing now or in the future, including, but not limited to, rendering services
of a business, commercial, or professional nature to any other person or organization, whether for compensation or otherwise, as
long as such duties or pursuits do not materially interfere with the services required to be performed by Consultant hereunder.
If Consultant is engaged or desires to engage in other ventures or activities in the same or similar business in which Capricor
is engaged, Consultant shall disclose in writing to Capricor the nature and scope of such other business ventures or activities.
Capricor may terminate this Agreement if Capricor believes that Consultant’s participation in such venture or activity would
pose an actual or potential conflict of interest or would be materially detrimental to the business interests of Capricor. Consultant
shall disclose on Exhibit A, attached hereto, the names of each person or entity for whom Consultant provides services
which may present an actual or potential conflict of interest with Capricor. Such Exhibit A shall be updated regularly
by Consultant.

 

    	1

    	 

    

 

Exhibit 10.9

 

2. Relationship
of the Parties. Consultant is an independent contractor and is not an agent, partner, joint venturer or employee of Capricor.
No provision of this Agreement shall be deemed to create or imply any contract of employment between Capricor and Consultant. In
his capacity as a consultant, Consultant shall have no authority to bind Capricor in any manner or create any liability for Capricor
unless authorized by the Board of Directors or Capricor’s Chief Executive Officer. Consultant shall not be treated as an
employee for purposes of the Federal Insurance Contributions Act, the Social Security Act, the Federal Unemployment Act, income
tax withholding and applicable state laws, including, without limitation, those pertaining to workers’ compensation, unemployment
compensation and state income tax withholding. Consultant acknowledges that he shall not be eligible for any pension, vacation,
sick pay or other benefits that Capricor may provide to its employees. Consultant is responsible for the payment of all required
taxes, whether federal, state or local in nature, including, but not limited to, income taxes, Social Security taxes, Federal Unemployment
Compensation taxes, and any other fees, charges, licenses or other payments required by law relating to Consultant’s engagement
by Capricor hereunder. Consultant shall indemnify Capricor and hold it harmless from and against all claims, demands, losses, costs,
liabilities, judgments, and attorneys’ fees that Capricor may incur that arise out of or relate to any failure of Consultant
to pay such taxes and/or contributions.

 

3.
Remuneration. As compensation for the Services rendered hereunder, Capricor will pay Consultant at the rate of ten thousand
dollars ($10,000) per month for the Services. Payments will be made on a monthly basis. Consultant shall report as income all compensation
received by him hereunder. 

 

4. Expenses.
Consultant will be reimbursed for such reasonable expenses for travel and lodging, necessary and actually incurred in the performance
of the Services, including, without limitation, costs actually incurred for any meeting that Capricor requests Consultant to attend;
provided, however, that in order to qualify for reimbursement, all such expenses must be approved in advance in writing by Capricor.
Consultant agrees to supply Capricor with receipts and such other supporting documentation requested by Capricor for all expenses
submitted for reimbursement. Payment for such expenses shall be made within the next check cycle, but not more than thirty (30)
days after receipt of supporting documentation.

 

5. Confidential
Information.

 

5.1 Consultant
has executed a Nondisclosure Agreement with Capricor dated January 30, 2013, a copy of which is attached hereto as Exhibit
B (the "NDA"). The terms and conditions of the NDA shall be incorporated herein by reference and
shall be deemed a part of this Agreement, applicable hereto and applicable to any confidential information received from CAPR as
well.

 

5.2 All Confidential
Information shall be the sole property of Capricor, its affiliates and its assigns, and Capricor, its affiliates and its assigns,
as applicable, shall be the sole owner of all patents and other intellectual property rights in connection therewith. Consultant
shall and does hereby assign to Capricor any rights Consultant may have or may acquire in such Confidential Information.

 

5.3 Except to
the extent reasonably necessary to perform the Services on behalf of Capricor, Consultant agrees to maintain in strictest confidence
and not to disclose or use, either during or at any time after the termination of this Agreement, any Confidential Information
belonging to Capricor, its affiliates or assigns, whether or not in written form, without first obtaining the written permission
of Capricor.

 

    	2

    	 

    

 

Exhibit 10.9

 

5.4 Consultant
recognizes that Capricor has received and in the future will receive from third parties their confidential or proprietary information
subject to a duty on Capricor’s part to maintain the confidentiality of such information and, in some cases, to use it only
for certain limited purposes. Consultant agrees that it owes Capricor and such third parties, both during the term of this Agreement
and thereafter, a duty to hold all such confidential or proprietary information in the strictest confidence and not to disclose
it to any person, firm or corporation (except in a manner that is consistent with Capricor’s agreement with such third party)
or use it for the benefit of any person or entity other than Capricor or such third party (consistent with Capricor’s agreement
with such third party).

 

5.5 Upon the
termination of this Agreement, Consultant will deliver to Capricor (and will not keep in Consultant’s possession, recreate
or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications,
drawings, blueprints, sketches, materials, equipment, computer disks other documents, materials or property, together with all
copies thereof (in whatever medium recorded) belonging to Capricor, its affiliates, licensors, successors or assigns.

 

5.6 Unless the
prior written consent of Capricor has been obtained, Consultant shall not discuss or mention in scientific publications, medical
literature, abstracts or verbal presentations any information regarding Capricor, including, without limitation, any information
related to Capricor’s business, products, processes, data, plans, strategies or Confidential Information, unless such information
is in the public domain not by reason of a breach of any confidentiality obligation owed to Capricor.

 

6. Property Rights
of the Parties

 

6.1 As used
in this Agreement, the term “Inventions” shall refer to any new or useful art, discovery, development, contribution,
finding or improvement whether or not patentable, and all related know-how. Inventions include, but are not limited to, all trade
secrets, designs, discoveries, formulae, processes, methods, manufacturing techniques, computer software, improvements, and ideas.

 

6.2 Consultant
will promptly disclose, and hereby assigns, to Capricor, all right, title and interest worldwide of Consultant in and to all Inventions,
which have been or shall be made, conceived, learned, or reduced to practice or writing by Consultant, either alone or with others
in connection with or related to Capricor’s products and processes during the continuance of this Agreement or after the
termination hereof. Consultant acknowledges that all original works of authorship which are made by Consultant (solely or jointly
with others) in the performance of the Services and which are protected by copyrights are “works made for hire,” as
that term is defined in the United States Copyright Act (17 U.S.C., Section 101).

 

6.3 Consultant
will, both during and after termination of this Agreement, assist Capricor, at Capricor’s expense, in every proper manner
to obtain for Capricor and to maintain and enforce, in any and all countries, patents and copyrights on all of Capricor’s
Inventions assigned by Consultant to Capricor, and for such purpose Consultant shall sign all documents related to such of Capricor's
Inventions as Capricor may reasonably request. In the event that Capricor is unable for any reason whatsoever to secure Consultant’s
signature to any lawful and necessary document required to apply for or execute any copyright or patent application with respect
to any Capricor Invention requiring an assignment by Consultant hereunder, Consultant hereby irrevocably designates and appoints
Capricor and its duly authorized officers and agents as its agents and attorneys-in-fact to act for and in its behalf and instead
of Consultant, to execute and file any such application and to do all other lawfully permitted acts to further the prosecution
and issuance of patents, copyrights or other rights thereon with the same legal force and effect as if executed by Consultant.

 

    	3

    	 

    

 

Exhibit 10.9

 

7.
Termination.  

 

7.1 Term/Termination.
Subject to earlier termination as provided herein, this Agreement shall commence on the Effective Date and shall continue in force
until terminated by one of the parties hereto. Consultant shall have the right to terminate this Agreement at any time after giving
Capricor at least seven (7) days’ prior written notice with or without cause; (b) Capricor shall have the right to terminate
this Agreement upon thirty (30) days’ written notice to Consultant with or without cause; and (c) Capricor shall have the
right to immediately terminate this Agreement upon notice to Consultant upon the occurrence of any Termination Event (as defined
below).

 

7.2 For purposes
of this Agreement, the term “Termination Event” shall mean the occurrence of any of the following:

 

		(a)	The commission of an act of fraud or dishonesty by Consultant;

 

		(b)	The unauthorized use or disclosure of Confidential Information
by Consultant;

 

		(c)	The willful or habitual neglect by Consultant in the
performance of the  Services;

 

		(d)	Consultant is convicted of a felony or other crime involving
moral turpitude; and

 

		(e)	Any other conduct by Consultant which is injurious to
the business or reputation of Capricor.

 

8. Assignability.
This Agreement is personal between Consultant and Capricor. Consultant shall not assign Consultant’s rights or delegate
his duties under this Agreement, in whole or in part, without the prior written consent of Capricor, which consent can be withheld
at Capricor’s sole discretion. Capricor shall have the right to assign its rights and delegate its duties under this Agreement
in whole or in part to a successor to Capricor without the consent of Consultant.

 

9.
Compliance with Business Ethics and Laws 

 

9.1
Ethical Conduct. It is the policy of Capricor to conduct its business at all times in accordance with the highest standards
of corporate, business and medical ethics. Consultant agrees to comply with those standards in all matters relating to the Services
and all other performance under or pursuant to this Agreement. 

 

9.2 Compliance
with Laws. Consultant shall comply with all applicable laws affecting this Agreement and his performance hereunder and,
without limiting the generality of the foregoing, shall maintain all licenses which may be required under local law in order to
enable him lawfully to perform his obligations under this Agreement.

 

9.3 Anti-bribery
and Anti-Corruption Cause. Consultant confirms that he has not given or promised to give, will not give or promise to give
any payment or anything of value, directly or indirectly, to any government, public institution, public international organization
or public official in connection with this Agreement for the purpose of obtaining or retaining business or any other improper advantage.
Consultant represents that no payment made under this Agreement is intended to influence any government, public institution, public
international organization or public official with regard to the sale of Capricor’s products or the conduct of its trials.
Each party represents that no payment made to the other pursuant to this Agreement proceeds of any illegal activity.

 

    	4

    	 

    

 

Exhibit 10.9

 

9.4 Materiality.
Non-compliance by Consultant with the provisions of this Section 9 shall constitute a material breach of this Agreement and shall
constitute grounds for its termination in accordance with Section 7.2 hereof.

 

10. General Provisions.

 

10.1 Notices.
Any notices to be given by either party to the other may be effected either by personal delivery in writing, by facsimile or electronic
transmission, courier or by mail, registered or certified, postage prepaid. Mailed notices shall be addressed to the parties at
the addresses appearing in the introductory paragraph of this Agreement, but each party may change its address by written notice
in accordance with this section. Notices personally delivered, sent by courier or sent by facsimile or electronic transmission
shall be deemed communicated as of the date of actual receipt; mailed notices shall be deemed communicated two (2) days after the
date on which they are mailed.

 

10.2 Agreement
Binding. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective
heirs, representatives, successors and permissible assigns.

 

10.3 Severability.
If any covenant, condition or other provision contained in this Agreement is held to be invalid, void or unenforceable by any court
of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall in no way affect,
impair or invalidate any other covenant, condition or other provision contained herein. If such condition, covenant or other provision
shall be deemed invalid due to its scope or breadth, such covenant, condition or other provision shall be deemed valid to the extent
of the scope or breadth permitted by law.

 

10.4 Interpretation
of Agreement. No provision of this Agreement is to be interpreted for or against either party because that party or that
party’s legal representative drafted such provision.

 

10.5 Entire Agreement.
This Agreement and the NDA set forth the entire agreement and understanding of the parties relating to Consultant’s consulting
relationship with Capricor. No representation, promise or inducement has been made by either party that is not embodied in this
Agreement and the NDA, and neither party shall be bound by or liable for any alleged representation, promise or inducement not
so set forth. Except as set forth herein, all prior negotiations, representations and agreements are waived, merged herein and
superseded hereby. Notwithstanding the foregoing, nothing in this Agreement is intended to supersede, waive or nullify any agreement
previously entered into between Capricor and Consultant, including, without limitation, Stock Option Agreements, which shall remain
in full force and effect.

 

10.6 Governing
Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California.
The state and federal courts of the State of California in Los Angeles County shall have exclusive jurisdiction to determine any
controversies arising in connection with this Agreement or the relationship of the parties.

 

    	5

    	 

    

 

Exhibit 10.9

 

10.7 Modifications.
No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by each of the parties.

 

10.8 Waiver.
No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether
or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the
party making the waiver. The failure of either party at any time or times to require performance of any provision hereof shall
in no manner affect the party’s right at a later time to enforce the same.

 

 10.9 Survival. Notwithstanding
any provision of this Agreement to the contrary, the provisions of Sections 2, 5, 6, and 10 (and each of their subsections) shall
survive the expiration or termination of this Agreement as necessary to give full effect to all of the provisions contained herein.

 

 

IN WITNESS WHEREOF,
the parties have executed this Agreement on the date(s) set forth below.

 

	CAPRICOR, INC.	 	 CONSULTANT 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	By:	/s/ Linda
    Marban	 	/s/ Frank Litvack
	Linda Marbán, Chief Executive Officer	 	Frank Litvack, MD.
	 	 	 	 
	 	 	 	 
	Date:___March 24, 2014 	 	Date: March 21, 2014

 

    	6

    	 

    

 

Exhibit 10.9

 

EXHIBIT A

 

 

CONSULTANT’S DISCLOSURE OF OTHER

 

ACTIVITIES AND
OWNERSHIP INTERESTS

 

POSING ACTUAL AND POTENTIAL CONFLICTS
OF INTEREST

 

 

 

 

1. ___________________________________________________________________________

 

 

 

2. ____________________________________________________________________________

 

 

 

3. ____________________________________________________________________________

 

 

 

4. ____________________________________________________________________________

 

 

 

5. ____________________________________________________________________________

 

    	7

    	 

    

 

 

EXHIBIT B

 

 

 

NONDISCLOSURE AGREEMENT

 

    	8

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