Document:

Exhibit
10.2

 

Certain
identified information has been excluded from this exhibit because it is both not

material
and is the type that the registrant treats as private or confidential. Information

that
was omitted has been noted in this document with a placeholder identified by the mark

“[***]”

 

Execution
Copy

 

PATENT
AND KNOW-HOW LICENCE AGREEMENT

 

between

 

BDD
PHARMA LIMITED  

 

and

 

CINGULATE
THERAPEUTICS LLC

 

and,
solely for the purposes of Clause 12.3

 

DRUG
DELIVERY INTERNATIONAL LIMITED

 

 

 

re:  OralogiK

 

 

 

1
George Square Glasgow G2 1AL DX GW67 or LP 33 Glasgow-6

Tel +44 (0)330 222 0050 Fax +44 (0)330 222 0053

www.dentons.com

 

Ref:
SCI/BIO/0015/00001/RJN/34656616v1

 

    	 

     

    

 

 

PATENT
AND KNOW-HOW LICENCE AGREEMENT dated August 8, 2018 (the “Effective Date”)

 

between

 

		(1)	BDD
                                            PHARMA LIMITED incorporated and registered in Scotland with company number SC212868 whose
                                            registered office is at Glasgow Royal Infirmary, 84 Castle Street, Glasgow, G4 0SF (“Licensor”);
                                            and

 

		(2)	CINGULATE
                                            THERAPEUTICS LLC a Delaware limited liability company with registered office at 1901
                                            W 47th Pl., Kansas City, KS 66205 USA (“Licensee”);

 

each
a “Party” and together the “Parties”; and

 

		(3)	solely
                                            for the purposes of Clause 12.3, DRUG DELIVERY INTERNATIONAL LIMITED a company registered
                                            in Scotland (registered number SC382118) and having its registered office at Bio-Images Research
                                            Ltd Within Glasgow Royal Infirmary, 84 Castle Street, Glasgow, G4 0SF (“DDI”).

 

BACKGROUND

 

		(A)	The
                                            Parties have previously entered into the Feasibility Agreement (all terms as defined below);

 

		(B)	Pursuant
                                            to the Feasibility Agreement, the Licensee wishes to license the Patents and the Licensed
                                            Know-How for use in connection with the development and sale of Products; and

 

		(C)	The
                                            Parties now enter into this Agreement to record the terms and conditions of such licence.

 

AGREED
TERMS

 

		1.	Interpretation

 

1.1       The
following definitions and rules of interpretation apply in this Agreement.

 

	 	“Accounting
    Standards”	means
    generally accepted accounting principles in the United States;
	 	 	 
	 	“Act”	as
    applicable, the United States Federal Food, Drug and Cosmetic Act, 21 U.S.C. §§301 et seq., and/or the Public Health Service
    Act, 42 U.S.C. §§262 et seq., as such may be amended from time to time;
	 	 	 
	 	“Affiliate”	any
    entity or person that Controls, is Controlled by or is under common Control with a Party;

 

    	2	 	 

     

    

 

	 	“Agreement”	this Patent
    and Know-How Licence Agreement between the Parties;
	 	 	 
	 	“Applicable
    Laws”	the applicable laws and
    regulations of any jurisdiction, which are applicable to any of the Parties or their respective Affiliates in carrying out activities
    hereunder or to which any of the Parties or their respective Affiliates in carrying out the activities hereunder is subject, and
    shall include all statutes, enactments, acts of legislature, laws, ordinances, rules, regulations, notifications, guidelines, policies,
    directions, directives and orders of any statutory authority, tribunal, board, or court or any central or state government or local
    authority or other governmental entity in such jurisdictions;
	 	 	 
	 	“Business
    Day”	a day other than a Saturday,
    Sunday or public holiday in the United Kingdom and the United States when banks in New York and London are not open for business;
	 	 	 
	 	“Background
    IP”	means Intellectual Property
    Rights owned or otherwise Controlled by a Party or any of its Affiliates as at the Effective Date or which such Party or any of its
    Affiliates creates or otherwise obtains Control with respect to after the Effective Date but independently of this Agreement. The
    Licensor’s Background IP shall include the Licensor Background IP and the Licensee’s  Background IP shall include
    the Licensee Background IP; 
	 	 	 
	 	“Commercially
    Reasonable Efforts	with respect to the efforts
    to be expended by a Party with respect to any objective, the level of reasonable, diligent, good faith efforts that specialty pharmaceutical
    companies typically devote to products owned by them that are at a similar stage in their development or product life and are of
    similar market potential taking into account efficacy, safety, approved labeling, the competitiveness of alternative products in
    the marketplace, the patent and other proprietary position of the product, the likelihood of regulatory approval, the profitability
    of the product, and other relevant factors.  As used herein, “specialty pharmaceutical companies” shall mean
    companies in the pharmaceutical industry of a size and stage of development similar to that of such Party, including having human
    pharmaceutical product candidates or products in a similar stage of development to the Products.  Commercially Reasonable
    Efforts shall be determined on a market-by-market and Product-by-Product basis, and it is anticipated that the level of effort will
    be different for different markets, and will change over time, reflecting changes in the status of the Product and the market(s)
    involved;

 

    	3	 	 

     

    

 

	 	“Compound”	means (a) generic
    compound dextroamphetamine, (b) generic compound dexmethylphenidate, or (c) any methylphenidate based or any amphetamine based drug
    or mixture or combination thereof;
	 	 	 
	 	“Concerta”	means Methyphenidate HCL
    Extended Release Oral Tablets in 18mg, 27mg, 36 mg and 54 mg dosage strengths as approved in NDA 021121.
	 	 	 
	 	“Control”	means:

    (a)
    with respect to a company, the beneficial ownership of more than 50% of the issued share capital of a company or the legal power
    to direct or cause the direction of the general management of the company, and “controls”, “controlled”
    and the expression “change of Control” shall be construed accordingly; or

    (b)
    with respect to Intellectual Property Rights, the right (whether by ownership, license or otherwise) to grant a license, sublicense
    or other right to or under such item, as provided for in this Agreement, without violating the terms of any agreement or other binding
    arrangement with any Third Party;

	 	 	 
	 	“Cover”	(a) with respect to know-how,
    such know-how was used in making, having made, using, selling, offering to sell, importing, having sold, exporting or making improvements
    to the Product, and (b) with respect to Patents, a Valid Patent Claim would (absent a licence thereunder or ownership thereof) be
    infringed by making, having made, using, selling, offering to sell, importing, having sold, exporting or making improvements to the
    Product including research and development. Synonyms of the word “Cover” shall be construed accordingly;
	 	 	 
	 	“Effective
    Date”	the date of this Agreement
    set forth above;
	 	 	 
	 	“EMA”	the European Medicines
    Agency or any successor entity thereto;
	 	 	 
	 	“European
    Patent”	a patent granted under
    the provisions of the European Patent Convention, which does not benefit from unitary effect by virtue of Regulation (EU) No 1257/2012;

 

    	4	 	 

     

    

 

	 	“Feasibility
    Agreement”	the feasibility
    agreement between the Parties dated 8 September 2017;
	 	 	 
	 	“FDA”	the U.S. Food and Drug
    Administration and any successor entity thereto;
	 	 	 
	 	“Field
    of Use”	means the treatment of
    any disease or disorder in humans amenable to treatment with a methylphenidate based or amphetamine based drug or mixture or combination
    thereof, including but not limited to, the treatment of Attention Deficit Hyperactivity Disorder and other indications as approved
    by the FDA or other appropriate Regulatory Authority around the world;
	 	 	 
	 	“First
    Commercial Sale”	with respect to a given
    Product in a given country, the first commercial transfer or disposition for value of such Product by Licensee or a Related Party
    to a Third Party (other than a Related Party) for end use or consumption of such Product in such country after receipt of Marketing
    Approval for such Product in such country, excluding, however, transfers or dispositions of Product, without consideration:  (i)
    in connection with patient assistance programs; (ii) for charitable or promotional purposes; (iii) for preclinical, clinical, regulatory
    or governmental purposes or under so-called “named patient” or other limited access programs or (iv) for use in any tests
    or studies reasonably necessary to comply with Applicable Law, regulation or request by a Regulatory Authority.  For clarity,
    First Commercial Sale shall be determined on a Product-by-Product and country-by-country basis.
	 	 	 
	 	“Foreground
    IPR”	all Intellectual Property
    Rights generated at any time solely by or on behalf of the Licensee  or any sub-licensee in connection with the exercise
    of the Licence and/or the development, use, manufacture, supply or marketing of the Products, including  without limitation,
    any Intellectual Property Rights comprised in or relating to any technical data, know-how, computer software, notes, chemical compounds,
    biological material, models, prototypes, specimens, drawings, reports and information (including all Product safety information and
    any further information supplied under Clause 5), all documents concerning regulatory submissions and Marketing Authorisations and
    any improvements;

 

    	5	 	 

     

    

 

	 	“Generic
    Version”	with respect
    to a Product, on a country-by-country basis, a pharmaceutical product that:  (a) is sold in a given country by a Third
    Party (other than a Related Party, a licensee or sublicensee of a Related Party, or any other Person in a chain of distribution originating
    from Licensee, a Related Party or any of their respective licensees or sublicensees); (b) contains the same Compound as such Product
    in the same dosage form as such Product and is an A/B rated therapeutic equivalent of the Product and (c) has been approved for marketing
    by the relevant Regulatory Authority in such country in reliance on the Marketing Approval for such Product in such country, including
    any such pharmaceutical product that has been approved for marketing (i) in the United States, pursuant to Clause 505(b)(2) or Clause
    505(j) of the Act (21 U.S.C. §355(b)(2) or 21 U.S.C. §355(j), respectively), (ii) in the European Union or a European Union
    member state, as a “generic medicinal product” pursuant to Clause 10 of Parliament and Council Directive 2001/83/EC as
    amended (including an application under Clause 6.1 of Parliament and Council Regulation (EC) No 726/2004 that relies for its content
    on any such provision), or (iii) in any other country or jurisdiction, pursuant to any equivalent of the foregoing laws, regulations
    or directives, wherein the approval of such pharmaceutical product is based on reference to the Marketing Approval for such Product
    in such country and a demonstration of bio-equivalence to such Product and which may be substituted for the Product without any action
    by the physician or health care practitioner;
	 	 	 
	 	“Good
    Clinical Practice” or “GCP”	the then current “good
    clinical practices” as such term is defined from time to time by FDA, EMA or other Regulatory Authority of competent jurisdiction
    pursuant to its regulations, guidelines or otherwise as applicable;
	 	 	 
	 	“Good
    Industry Practice” or “GIP”	the exercise of that degree
    of skill, care, prudence, efficiency, foresight and timeliness as would be expected from a leading company within the pharmaceutical
    sector, including without limitation, compliance with Good Clinical Practice, Good Laboratory Practice, Good Manufacturing Practice
    and Good Pharmacovigilance Practice;
	 	 	 
	 	“Good
    Laboratory Practice” or “GLP”	shall mean the then current
    “good laboratory practices” as such term is defined from time to time by the FDA, EMA or other Regulatory Authority of
    competent jurisdiction pursuant to its regulations, guidelines or otherwise, as applicable;

 

    	6	 	 

     

    

 

	 	“Good
    Manufacturing Practice” or “GMP”	the then current
    “good manufacturing practices” as such term is defined from time to time by the FDA, EMA or other Regulatory Authority
    of competent jurisdiction pursuant to its regulations, guidelines or otherwise, as applicable;
	 	 	 
	 	“Good
    Pharmacovigilance Practice” or “GPP”	the then current “good
    pharmacovigilance practice as such term is defined from time to time by the FDA, EMA or other Regulatory Authority of competent jurisdiction
    pursuant to its regulations, guidelines or otherwise, as applicable;
	 	 	 
	 	“Group”	in relation to a company,
    that company, any subsidiary or holding company from time to time of that company, and any subsidiary from time to time of a holding
    company of that company; and “Group Company” shall mean any company within a Group;
	 	 	 
	 	“Holding
    Company and Subsidiary”	a “holding company”
    and “subsidiary” as defined in clause 1159 of the Companies Act 2006;
	 	 	 
	 	“Index”	the Retail Prices Index
    of the United Kingdom Office for National Statistics or, if that index ceases to be published, the nearest index having equivalent
    or near equivalent  effect;
	 	 	 
	 	“Intellectual
    Property Rights”	any and all intellectual
    property rights, including without limitation, patents, rights to inventions, supplementary protection certificates, copyright and
    related rights, trade marks and services marks, trade names and domain names, rights in get-up, goodwill and the right to sue for
    passing off and unfair competition, rights in designs, rights in computer software, database rights, rights to preserve the confidentiality
    of information (including know-how and trade secrets) and any other intellectual property rights, including all applications for
    (and rights to apply for and be granted) renewals or extensions of, and rights to claim priority from, such rights and all similar
    or equivalent rights or forms of protection which subsist or will subsist, now or in the future, in any part of the world; in all
    cases whether registered, registrable or otherwise;
	 	 	 
	 	“Launch”	the First Commercial Sale
    of the Product in the relevant country or region in the Territory by the Licensee or a Related Party;

 

    	7	 	 

     

    

 

	 	“Licence”	the licence
    and other rights granted or to be granted under this Agreement that may be exercised by the Licensee from time to time under this
    Agreement;
	 	 	 
	 	“Licensed
    Know-How”	the know-how identified
    at Part 2 of the Schedule together with any other know-how owned or otherwise Controlled by the Licensor or any of its Affiliates
    as at the Effective Date or which Licensor or any of its Affiliates develops or otherwise obtains Control with respect to after the
    Effective Date and which is reasonably necessary for the development, manufacture, use and sale of the Products in the Field;
	 	 	 
	 	“Licensee
    Background IPR”	means all Intellectual
    Property Rights Controlled by the Licensee (other than licensed from the Licensor under this Agreement or otherwise) related to a
    Product, any Compound or otherwise as at the Effective Date or acquired, generated or conceived by the Licensee thereafter but independently
    of this Agreement, including without limitation, as described in Part 2 of the Schedule;
	 	 	 
	 	“Licensor
    Background IPR”	means the Patents and all
    other Intellectual Property Rights Controlled by the Licensor or any of its Affiliates, existing as at the Effective Date or which
    Licensor or any of its Affiliates acquires, generates, conceives or otherwise obtains Control with respect to during the term of
    this Agreement (whether pursuant to or independent of this Agreement), including without limitation, as described in Part 2 of the
    Schedule;
	 	 	 
	 	“Licensor
    Technology”	means the information and
    technology for the Licensor’s proprietary OralogiKTM platform aimed to control drug release by a barrier layer around
    the drug product, the Licensed Know How and the Licensor Background IPR;
	 	 	 
	 	“Marketing
    Approval”	all approvals from the
    relevant Regulatory Authority in a given country necessary to market and sell a pharmaceutical product in such country, including
    pricing and reimbursement approvals if required for marketing or sale of such product in such country;
	 	 	 
	 	“Milestone
    Payments”	the milestone payments
    set out in Clause 8.2;
	 	 	 
	 	“NDA”	(a) in the United States,
    a New Drug Application (as more fully defined in 21 CFR 314.5, et seq.) filed with the FDA, or any successor application thereto;
    or (b) in any other country or group of countries, the equivalent application or submission for approval to market a pharmaceutical
    product filed with the governing Regulatory Authority in such country or group of countries;

 

    	8	 	 

     

    

 

	 	“Net
    Receipts”	means
                           the amount of any payments (excluding (i) value added tax and (ii) any royalties received from Related Parties
                           with respect to Sublicensee Net Sales (as defined below in Section 8.3.1)) actually received by the Licensee
                           or a Group company from a sub-licensee, joint venture or other collaboration partner in respect of any sublicensing
                           (including the grant of any option for a sub-licence) of the Patents or the Licensed Know-How, which may include
                           any of the following that are in consideration of such sublicense:

     

    (a)       up-front,
    milestone (whether at the stage of development, marketing, or otherwise), success, bonus, maintenance, periodic (including annual),
    payments due under any sub-licence agreement covering the Patents and/or Licensed Know-How;

     

    (b)       where
    any sub-licence is to be granted under cross-licensing arrangements, the value of any third-party licence obtained under such arrangements;

     

    (c)       any
    premium paid over the fair market value (at the time such premium is paid) of shares, options, or other securities in respect of
    any of the share capital of the Licensee, Licensee Group company or its Affiliate;

     

    (d)       any
    loan made or given other than on normal market terms at the time the loan is made; and

     

    (e)       any
    shares, options, or other securities obtained from a third party solely in exchange for the grant of a sublicense to the Patents
    and/or Licensed Know-How.

     

 

    	9	 	 

     

    

 

	 	“Net
    Sales”	means
                           the gross amounts invoiced for sales or other dispositions of Products by or on behalf of Licensee (or, subject
                           to Clause 8.3.1, any of its Related Parties) (each, a “Selling Party”) to Third Parties
                           (other than Related Parties) in an arms-length transaction less the following deductions actually incurred,
                           allowed, paid, accrued or otherwise specifically and reasonably allocated to Products by the Selling Party,
                           all in compliance with applicable Accounting Standards, consistently applied by the Selling Party:

     

    (a)       normal
    and customary trade discounts, including trade, cash and quantity discounts or rebates credits or refunds, actually allowed or taken;

     

    (b)       credits
    or allowances actually granted or made for rejection of or return of previously sold Products, including recalls, or for retroactive
    price reductions and billing errors or for stocking allowances;

     

    (c)       governmental
    and other rebates (or credits or other equivalents thereof) actually granted to managed health care organizations, commercial insurance
    companies, pharmacy benefit managers (or equivalents thereof), distributors, national, state/provincial, local, and other governments,
    their agencies and purchasers, and reimbursers, or to trade customers;

     

    (d)       chargebacks
    and other reasonable fees paid to wholesalers, distributors, selling agents (excluding sales representatives of the Selling Party),
    group purchasing organizations, Third Party payors, other contractees and managed care entities, in each case with respect to the
    Product;

     

    (e)       charges
    separately invoiced for freight, insurance, transportation, postage and handling;

     

    (f)       taxes,
    custom duties or other governmental charges (including any tax, such as a value added or similar tax or government charge, but excluding
    what is commonly known as income tax) levied on or measured by the billing amount for Products, as adjusted for rebates and refunds;
    and

     

    (g)       bad
    debts or provision for bad debts deductions actually written off during the applicable accounting period following the applicable
    Accounting Standards used by the Selling Party.

     

    In
    no event shall any particular amount identified above be deducted more than once in calculating Net Sales (i.e., no “double
    counting” of deductions).

     

    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 agreed upon by 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. In addition, if a Selling Party provides discounts or allowances with respect to a Product
    Bundle, such discounts and allowances shall be allocated (for purposes of the deductions used in calculating Net Sales as above)
    between the Product and the other products in the Product Bundle in a manner that does not unfairly or inappropriately bias the level
    of discounting against the Product as compared to the other products in such Product Bundle.

     

    For
    clarification, sale of Product by a Selling Party to another Selling Party for resale by such entity to a Third Party (other than
    a Related Party) shall not be deemed a sale for purposes of this definition of “Net Sales,” provided that the subsequent
    resale is included in the computation of Net Sales. Further, transfers or dispositions of Product, without consideration: (A) in
    connection with patient assistance programs; (B) for charitable or promotional purposes; (C) for preclinical, clinical, regulatory
    or governmental purposes or under so-called “named patient” or other limited access programs; or (D) for use in any tests
    or studies reasonably necessary to comply with Applicable Law, regulation or request by a Regulatory Authority, shall not, in each
    case of (A) through (D), be deemed sales of such Product for purposes of this definition of “Net Sales.”

     

    Where
    the sale or other disposal is not at arm’s length or not exclusively for money (except as provided in the preceding paragraph),
    the invoiced price for the purposes of calculating Net Sales shall be that price that would have been so invoiced if it had been
    at arm’s length or exclusively for money.

     

    All
    calculations shall be made in accordance with the Accounting Standards;

 

    	10	 	 

     

    

 

	 	“Patents”	(a) the patents
    and patent applications, the short particulars of which are set out in Part 1 of the Schedule, (b) any granted patents issuing from
    or claiming the same priority date as any patent application set out in Part 1 of the Schedule, (c) any supplementary protection
    certificate granted in respect of any Product and (d) any other patents or patent applications that are either included in the Licensor
    Background IPR or which the Licensor may agree in writing to license to the Licensee under this Agreement from time to time;
	 	 	 
	 	“Pharmacovigilance”	the science and activities
    relating to the detection, assessment, understanding and prevention of adverse effects or any other drug-related problem or any updated
    definition published by the World Health Organisation from time to time;
	 	 	 
	 	“Phase
    III Clinical Trial”	shall mean a human clinical
    trial of a Product designed to:  (i) establish that such Product is safe and efficacious for its intended use; (ii) define
    warnings, precautions and adverse reactions that are associated with the Product in the dosage range to be prescribed; and (iii)
    support regulatory approval of such Product that would satisfy the requirements of 21 CFR 312.21(c) or its non-US equivalents;
	 	 	 
	 	“Products”	any products incorporating
    any Compound that delivers three distinct doses of the Compound or has an extended release in vitro over a period of more than eight
    hours, or other product:
	 	 	 
	 	 	(a)               the
        manufacture, sale or other use of which falls within, or utilises any method or process which falls within, the scope of any
        of the Valid Claims of any of the Patents; and/or

    

	 	 	 
	 	 	(b)              which
        is made, developed or used in accordance with, embodies, incorporates or utilises, any of the Licensed Know-How.

     

    To
    avoid any doubt the definition of Product shall not extend to Concerta or any product which is therapeutically equivalent to Concerta
    or which has the same in vitro release profile as Concerta;

	 	 	 
	 	“Quarterly
    Periods”	the periods of (3) three
    months commencing on 1 January, 1 April, 1 July and 1 October respectively;
	 	 	 
	 	“Regulatory
    Authority”	any country, federal, supranational,
    state or local regulatory agency, department, bureau or other governmental or regulatory authority having the administrative authority
    to regulate the development or marketing of pharmaceutical products in any country or other jurisdiction including without limitation
    the EMA and FDA;

 

    	11	 	 

     

    

 

	 	“Regulatory
    Exclusivity	marketing or
    manufacturing exclusivity conferred by the applicable Regulatory Authority in a country or jurisdiction on the holder of a Marketing
    Approval for a pharmaceutical product in such country or jurisdiction, including, by way of example and not of limitation, regulatory
    data exclusivity, orphan drug exclusivity, new chemical entity exclusivity and pediatric exclusivity;
	 	 	 
	 	“Related
    Party”	a sub-licensee of the Licensee
    (or a sub-sub-licensee at whatever level) including Group Companies and Affiliates;
	 	 	 
	 	“Royalties”	royalties payable by the
    Licensee to the Licensor under this Agreement, under Clause 8.3 and/or 8.9;
	 	 	 
	 	“Schedule”	the schedule attached hereto
    and incorporated herein;
	 	 	 
	 	“Sublicensee
        Net Sales”

     
	means Net Sales of Product
    that is sold or otherwise supplied by or on behalf of a given Related Party.
	 	 	 
	 	“Third
    Party”	a party other than Licensor
    or Licensee or their respective Group Companies and/or Affiliates;
	 	 	 
	 	“Third
    Party Licence Agreement”	That cetain Intra Group
    License between Licensor and DDI dated March 14, 2018;
	 	 	 
	 	“Territory”	the entire world;
	 	 	 
	 	“Unitary
    Patent”	a European patent with
    unitary effect granted under the provisions of the European Patent Convention which benefits from unitary effect by virtue of Regulation
    (EU) No 1257/2012;
	 	 	 
	 	“Valid
    Claim”	a claim of an issued and
    unexpired patent within the Patents that has not expired or been revoked, held invalid or unenforceable by a court or other governmental
    agency of competent jurisdiction in a final and non-appealable judgement and which claim has not been disclaimed, denied or admitted
    to be invalid or unenforceable through reissue, re-examination or disclaimer or otherwise;
	 	 	 
	 	“VAT”	value added tax imposed
    in any member state of the European Union pursuant to Council Directive (EC) 2006/112 on the common system of value added tax and
    national legislation implementing that Directive or any predecessor to it, or supplemental to that Directive, or any similar tax
    which may be substituted for or levied in addition to it or any value added, sales, turnover or similar tax imposed in any country
    that is not a member of the European Union; and
	 	 	 
	 	“Year”	in the first instance,
    the period from the Effective Date until the end of the then-current Quarter and the subsequent four (4) consecutive Quarters; and
    thereafter each successive period of four (4) consecutive Quarters.

 

    	12	 	 

     

    

 

1.2       The
Schedule forms part of this Agreement and shall have effect as if set out in full in the body of this Agreement. Any reference to this
Agreement includes the Schedule. References to Clauses and the Schedule are to the Clauses and the Schedule of this Agreement.

 

1.3       Unless
the context otherwise requires, words in the singular include the plural and, in the plural, include the singular. Unless the context
otherwise requires, a reference to one gender shall include a reference to the other genders.

 

1.4       A
reference to a statute or statutory provision is a reference to it as amended, extended or re-enacted from time to time, and shall include
any subordinate legislation made from time to time under that statute or statutory provision. To avoid any doubt the foregoing shall
extend to any legislation which is enacted in the United Kingdom (or any part thereof as the same is constituted as at the Effective
Date) and which is intended to reflect current or future European Directives, Regulations or other legislation into the laws of the United
Kingdom following the cessation of the United Kingdom being a member of the European Union.

 

1.5       “Writing”
or “written” includes faxes but not e-mail.

 

1.6       Any
words following the terms “including”, “include”, “in particular” or any similar
expression shall be construed as illustrative and shall not limit the sense of the words preceding those terms.

 

1.7       A
“person” includes a natural person, corporate or unincorporated body (whether or not having separate legal personality)
and that person’s legal and personal representatives, successors and permitted assigns.

 

		2.	LICENCE
                                            Grant

 

2.1       Subject
to the terms and conditions of this Agreement and in consideration of the sums payable by the Licensee to the Licensor under this Agreement,
the Licensor hereby grants to the Licensee an exclusive licence (even as to Licensor and its Affiliates) including the right to sublicense
through multiple tiers of sublicence under the Licensor Technology, Patents and the Licensed Know-How, in each case, in the Field of
Use and within the Territory to:

 

2.1.1       develop,
manufacture, have manufactured, market, use, import, offer for sale, sell or otherwise supply and commercialise Products; and

 

2.1.2       apply
for Marketing Approvals and carry out clinical trials for the purpose of obtaining a Marketing Approval for the Products.

 

    	13	 	 

     

    

  

2.2       Intentionally
Omitted.

 

2.3       The
Licensee shall only grant sub-licences under this Agreement or subcontract the manufacture of the Products, as provided under Clauses
14 and 15 respectively.

 

2.4       The
Licensee undertakes not to exploit or otherwise use the Patents or the Licensed Know-How provided to Licensee by Licensor:

 

2.4.1       in
the Territory, other than in respect of Products in the Field of Use; or

 

2.4.2       outside
the Territory.

 

2.5       For
the avoidance of doubt, the Parties agree that the Licensee’s undertakings under Clause 2.4 shall (insofar as relating to the Licensed
Know-How) survive expiry or earlier termination of this Agreement, except to the extent that the Licensed Know-How enters the public
domain after that date other than by breach of this Agreement by the Licensee.

 

2.6       Intentionally
Omitted.

 

2.7       Except
for the licences expressly granted by this Clause 2, the Licensor reserves all of its rights. Without prejudice to the generality of
the foregoing, the Licensor grants no rights to any Intellectual Property Rights other than the Licensor Technology, Patents and Licensed
Know-How (to be used in accordance with this Clause 2) and subject to the terms of this Agreement reserves all rights under the Patents
and Licensed Know-How: (i) outside the Field of Use; and (ii) outside the Territory.

 

2.8       Licensor
hereby covenants not to practise, and not to permit or cause or grant any Affiliate, licensee or other Third Party the right under the
Licensor Technology, Patents or other proprietary technology to develop, use, make have made, sell, have sold, offer for sale, export,
import or otherwise commercialise any Product or Compound in the Field of Use in the Territory during the Term.

 

		3.	Provision
                                            of further know-how

 

3.1       The
Licensor shall from time to time upon Licensee’s request make available to the Licensee such further know-how owned or Controlled
by Licensor relating to the development, manufacture and marketing of the Products which is reasonably necessary for such development,
manufacture and marketing (“Further Know-How”) which Further Know-How shall be deemed to be Licensed Know-How without
any further action by the Parties.

 

3.2       The
Further Know How supplied by the Licensor under Clause 3.1 shall be used by the Licensee only for the purpose of exercising and/or exploiting
the Licence in the Territory and shall be subject to the provisions of Clause 7.

 

    	14	 	 

     

    

 

		4.	Provision
                                            of technical assistance

 

4.1       Licensor
shall make available to the Licensee the services of a fully qualified and experienced member (or members) of its staff to advise the
Licensee on the use of the Licensed Know-How for manufacture of Products, provided that:

 

4.1.1       the
Licensee shall reimburse travelling and reasonable hotel and living expenses of such person for the period from departure to return;

 

4.1.2       the
Licensee shall pay to the Licensor a fee for the services of such person in relation to time spent with the Licensee and in travelling
to and from the Licensee in accordance with rates and conditions agreed between the Licensor and the Licensee from time to time;

 

4.1.3       the
Licensor is under no obligation to provide such representative for more than an agreed number of man days (agreed in advance); and

 

4.1.4       such
representative shall act merely in an advisory capacity and neither the Licensor nor such person shall, to the fullest extent permitted
by law, be liable in any manner for any loss or damage (whether direct, indirect, consequential or otherwise, and whether economic or
otherwise) resulting from the implementation of, or reliance on, any actual or alleged advice or assistance of such person.

 

4.2       Nothing
in this Agreement shall constitute any representation or warranty that the technical assistance made available to the Licensee under
Clause 4.1 shall result in the Licensee being successful in the development, manufacture or marketing of the Products or achieving any
particular rate, cost or quality of production.

 

		5.	Quality
                                            control, Packaging and Alliance management

 

5.1       The
Licensee shall, in exercising its rights under this Agreement, comply with all Applicable Laws and Good Industry Practice.

 

5.2       The
Licensee shall ensure that all of the Products marketed by it and its Group Companies and/or sub-licensees are of satisfactory quality,
given the intended use of the Products.

 

5.3       The
Parties agree to form a Joint Information and Collaboration Committee (the “JICCC”) within sixty (60) days from the Effective
Date consisting of two (2) representatives from each of Licensor and Licensee. Each Party may replace its JICCC representative with another
representative of such Party at any time upon prior written notice to the other Party. The purpose of the JICC is to enable the Parties
to share information relating to the development and commercialization of the Products and to discuss other potential collaboration projects,
with a particular focus on opportunities in CNS disorders. The JICCC shall meet with such frequency as determined by the Parties as reasonably
necessary for the JICC’s performance of its obligations hereunder but not less frequently than once per calendar quarter. Meetings
can be held either in person or telephonically or as otherwise agreed to by the Parties. All meetings of the JICC shall be chaired by
a Chairperson who shall be a representative of Licensee. At each meeting of the JICC, Licensee shall provide the JICC with an update
on business, commercial and regulatory developments and Licensor shall provide an update on intellectual property and developments matters.
The Parties shall share such other information as requested by the JICC. Upon expiry or termination of this Agreement or upon Marketing
Approval of the Product, the JICC shall be dissolved.

 

    	15	 	 

     

    

 

5.4       The
Licensee shall mark all Products or, if it is agreed between the Parties that it is not practicable, then any relevant literature or
packaging, with:

 

5.4.1       the
relevant patent numbers of the Patents and with a clear and prominent statement in a form approved by the Licensor that the Products
are manufactured and supplied by the Licensee under licence from the Licensor;

 

5.4.2       the
symbols or words required or allowed under the laws of any jurisdiction to indicate the Licensor’s ownership of, or rights to,
any Intellectual Property Rights which may subsist in the Licensed Know-How; and

 

5.4.3       such
details as are necessary for dis-applying or avoiding infringement of any moral rights applying to any relevant material, the subject
of this Agreement.

 

5.5       The
Licensee shall, upon the Licensor’s reasonable request, supply samples (empty bottles and packaging) of all Products to the Licensor.

 

5.6       The
Licensee shall subject to reasonable undertakings of confidentiality permit, and shall use all reasonable endeavours to obtain permission
for, the Licensor at all reasonable times during normal business hours on reasonable notice to enter any place used for the development,
manufacture or storage of Products to inspect the methods of development, manufacture and storage.

 

5.7       If
any Product fails on efficacy, safety or toxicological grounds or if the Licensee fails to obtain or maintain regulatory approval for
the Product in a country in the Territory, the Licensee shall promptly give the Licensor written notice and a summary of relevant information.
The Licensee shall, if requested, give further evidence of such failure reasonably required by the Licensor, at the Licensor’s
cost.

 

5.8       The
Licensee shall, upon the Licensor’s written request and no more than twice per Year, provide the Licensor with details of any complaints
it has received relating to Products together with reports on the manner in which such complaints and communications are being, or have
been, dealt with, to the extent that the same are relevant to the Licensor and it would be reasonable to provide the information to the
Licensor. The Licensee shall consult with the Licensor in respect of the same but shall have the sole discretion as to how to respond
in respect of such complaints and communications, provided always that the Licensee complies with Applicable Laws.

 

    	16	 	 

     

    

 

5.9       The
provisions of clause 5.8 pertaining to the provision of information to the Licensor shall remain in effect for a period of twelve (12)
months following expiry of this Agreement.

 

		6.	Marketing

 

6.1       The
Licensee shall (and shall procure that any sub-licensees (including Group companies and Affiliates) shall following receipt of Marketing
Approval use Commercially Reasonable Efforts to promote the Products throughout the Territory.

 

6.2       Without
prejudice to the generality of the Licensee’s obligations under Clause 6.1, the Licensee shall provide at least annually to the
Licensor an updated, written statement (the “Commercialisation Plan”) that shall:

 

6.2.1       report
on all activities conducted under this Agreement since the Effective Date or the date of the previous Commercialisation Plan provided
under this Clause;

 

6.2.2       set
out the projected dates (and, where a milestone has been achieved, the actual dates) for achieving any milestones referred to in this
Agreement; and

 

6.2.3       set
out the past, current, and projected activities taken or planned to be taken by the Licensee and its sub-licensees (if any) to bring
Products to market and commercialise the Products in the Territory.

 

6.3       The
Licensor’s receipt or approval of any Commercialisation Plan shall not be taken to waive or qualify the Licensee’s obligations
under Clause 6.1. Without prejudice to the generality of the Licensee’s obligations under Clause 6.1, the Licensee shall use Commercially
Reasonable Efforts to comply with the Commercialisation Plan.

 

6.4       The
Licensee shall subject to Applicable Laws use the Licensor’s name and logo in the marketing of the Products provided always that
the Licensee may only use the name, logo and other trade marks of the Licensor in the marketing of Products to the extent that the same
is agreed with the Licensor and subject always to the use policy or other reasonable instructions of the Licensor relating to the use
of the same. The Licensee shall agree the use of the name, logo and other trade marks of the Licensor as part of the Commercialisation
Plan. Any goodwill arising out of the use of the Licensor’s name, logo and other trademarks shall accrue exclusively to the Licensor
and the Licensee shall execute all documents and take all steps as the Licensor may reasonably require from time to time to vest such
goodwill exclusively in the Licensor.

 

    	17	 	 

     

    

  

		7.	Confidentiality

 

7.1       Except
to the extent expressly authorized by this Agreement, each Party (in such capacity, the “Receiving Party”)
agrees that, during the Term and for seven (7) years thereafter, it shall keep confidential and shall not publish or otherwise disclose
to any Third Party, and shall not use for any purpose other than as expressly provided for in this Agreement or any other written agreement
between the Parties, any Confidential Information furnished or made available to it by or on behalf of the other Party (in such capacity,
the “Disclosing Party”). The Receiving Party shall use at least the same standard of care as it uses to protect
proprietary or confidential information of its own (but in no event less than reasonable care) to ensure that its, and its Affiliates’,
employees, agents, consultants and other representatives do not disclose or make any unauthorized use of the Confidential Information.
The Receiving Party shall promptly notify the Disclosing Party upon discovery of any unauthorized use or disclosure of the Disclosing
Party’s Confidential Information.

 

7.2       Confidential
Information shall not include any information which the Receiving Party can prove by competent evidence: (a) is now, or hereafter becomes,
through no act or failure to act on the part of the Receiving Party, generally known or available; (b) is known by the Receiving Party
and/or any of its Affiliates at the time of receiving such information, as evidenced by its records; (c) is hereafter furnished to the
Receiving Party and/or any of its Affiliates by a Third Party, as a matter of right and without restriction on disclosure; or (d) is
independently discovered or developed by the Receiving Party and/or any of its Affiliates, without the use of Confidential Information
of the Disclosing Party. Any combination of features or disclosures shall not be deemed to fall within the exclusions set forth in the
preceding Clauses (a) and (b) merely because individual features are published or available to the general public or in the rightful
possession of the Receiving Party unless the combination itself and principle of operation are published or available to the general
public or in the rightful possession of the Receiving Party.

 

7.3       Notwithstanding
the provisions of Clause 7.1, the Receiving Party may disclose Confidential Information of the Disclosing Party as expressly permitted
by this Agreement, or if and to the extent such disclosure is reasonably necessary in the following instances:

 

(a)       filing
or prosecuting Patents as permitted by this Agreement;

 

(b)       enforcing
such Party’s rights under this Agreement and in performing its obligations under this Agreement;

 

(c)       prosecuting
or defending litigation as permitted by this Agreement;

 

(d)       complying
with applicable court orders, applicable laws, rules or regulations, or the listing rules of any exchange on which the Receiving Party’s
securities are traded;

 

(e)       disclosure
to Affiliates, actual and potential licensees and sublicensees, employees, consultants or agents of the Receiving Party who have a need
to know such information in order for the Receiving Party to exercise its rights or fulfil its obligations under this Agreement, provided,
in each case, that any such Affiliate, actual or potential licensee or sublicensee, employee, consultant or agent agrees to be bound
by terms of confidentiality and non-use comparable in scope to those set forth in this Clause 7; and

 

    	18	 	 

     

    

 

(f)       disclosure
to Third Parties in connection with due diligence or similar investigations by such Third Parties, and disclosure to potential Third
Party investors or acquirers in confidential financing documents, provided, in each case, that any such Third Party agrees to be bound
by reasonable obligations of confidentiality and non-use.

 

7.4       Licensee
and its Related Parties shall have the right to publish the results of their development activities, including clinical trials, with
respect to the Products in the Field of Use. Licensor shall have the right to review and comment on any material proposed for public
disclosure or publication by Licensee or its Affiliate, such as by oral presentation, manuscript or abstract that includes Confidential
Information of Licensor. Before any such material is submitted for publication or other public disclosure (other than oral presentation
materials and abstracts, which are addressed below), Licensee shall deliver a complete copy to Licensor at least 10 days prior to submitting
the material to a publisher or initiating such other disclosure, and Licensor shall review any such material and give its comments to
Licensee within 5 days of the delivery of such material to Licensor which comments shall be considered by Licensee in good faith. With
respect to oral presentation materials and abstracts, Licensee shall deliver a complete copy to Licensor at least 5 days prior to the
anticipated date of the presentation, and Licensor shall make reasonable efforts to expedite review of such materials and abstracts,
and shall return such items as soon as practicable to Licensee with appropriate comments, if any, but in no event later than 3 days from
the date of delivery to Licensor which comments shall be considered by Licensee in good faith. Licensee shall comply or cause its Affiliate
to comply (as applicable), with Licensor’s requests to delete references to Licensor’s Confidential Information in any such
material and, if applicable, agrees to delay any submission for publication or other public disclosure for a period of up to an additional
60 days for the purpose of preparing and filing appropriate patent applications. Licensor shall not publish or otherwise disseminate,
posters, oral presentations or other formats, any information relating to Products developed by the Licensee without the prior written
consent of Licensee which consent shall not be unreasonably withheld, conditioned or delayed.

 

7.5       Unless
otherwise agreed to in writing by both Parties, no later than thirty (30) business days following the Effective Date, the Parties shall
issue joint press release announcing the execution of this Agreement in substantially the form attached hereto as Schedule 1.
Except as required by the applicable securities laws or the listing rules of any stock exchange on which securities issued by a Party
or its Affiliates are traded, neither Party shall make any other public announcement concerning this Agreement or the subject matter
hereof without the prior written consent of the other, which shall not be unreasonably withheld or delayed; provided that each Party
may make any public statement in response to questions by the press, analysts, investors or those attending industry conferences or financial
analyst calls, respond to queries by any exchange on which such Party’s securities are traded, or issue press releases, so long
as any such public statement, response, or press release is not inconsistent with prior public disclosures or public statements made
in accordance with this Clause 7.5 and which do not reveal non-public information about the other Party. In the event of a required public
announcement, to the extent practicable under the circumstances, the Party making such announcement shall use reasonable efforts to provide
the other Party with a copy of the proposed text of such announcement sufficiently in advance of the scheduled release to afford such
other Party a reasonable opportunity to review and comment upon the proposed text, unless the proposed text is substantially the same
as that used in any prior public disclosure, press release or public statement made in accordance with this Clause 7.5.

 

    	19	 	 

     

    

 

7.6       The
Parties shall coordinate in advance with each other in connection with the filing of this Agreement (including redaction of certain provisions
of this Agreement) with any securities authority or with any stock exchange on which securities issued by a Party or its Affiliate are
traded, and each Party will use reasonable efforts to seek confidential treatment for the terms proposed to be redacted; provided that
each Party will ultimately retain control over what information to disclose to any securities authority or stock exchange, as the case
may be, and provided further that the Parties will use their reasonable efforts to file redacted versions with any governing bodies which
are consistent with redacted versions previously filed with any other governing bodies. Other than such obligation, neither Party (nor
any of its Affiliates) will be obligated to consult with or obtain approval from the other Party with respect to any filings to any securities
authority or stock exchange. Licensor hereby consents to Licensee’s use of its name in any filing with a Regulatory Authority as
well as any private placement memorandum or other investment document related to Licensee or its securities; provided that, Licensor
shall be afforded a reasonable opportunity to review any references to Licensor that are contained in any such filing of investment document,
and any comments provided by Licensor to Licensee with respect to the use of its name in such filing or investment document shall be
considered in good faith by Licensee.

 

7.7       As
of the Effective Date, the terms of this Clause 7 shall supersede any prior non-disclosure, secrecy or confidentiality agreement between
the Parties (or their Affiliates) dealing with the subject of this Agreement.

 

		8.	milestone
                                            payments and Royalties

 

8.1       Within
five (5) days of the Effective Date the Licensee shall pay to the Licensor: (1) the non-refundable sum of ninety eight, six hundred and
twenty five Thousand US Dollars, ($98,625.00) being the sums outstanding from the Option Agreement entered into between the parties and
payable by the Licensee in respect of the option to license; and (2) the non- refundable sum of fifty thousand US Dollars ($50,000).

 

8.2       The
Licensee shall pay to the Licensor the following Milestone Payments immediately upon the occurrence of the following milestone events:

 

    	20	 	 

     

    

  

	Milestone
    Payment	 	Milestone
    event
	US
    $50,000	 	One
                                            time milestone payment upon dosing of first patient in the planned PK/Scintigraphy study.
                                            (completed as of 09 May 2017 date and due on signature of licence)

	US
    $250,000	 	Milestone
                                            payment upon dosing of first patient in a Phase III Clinical Trial for each Product in the
                                            Field (payable on a per Product basis). 

	US
    $250,000	 	Milestone
                                            payment upon Licensee filing of NDA for each Product in the Field (payable on a per Product
                                            basis). 

	US
    $250,000	 	Milestone
                                            payment upon receipt of first Marketing Approval of each Product in the Field (payable on
                                            a per Product basis) 

 

For
the avoidance of doubt, different dose strengths of a Product shall all count as the same Product for the purposes of the above milestone
payments. The Licensor shall be entitled to invoice the Licensee upon the occurrence of achieving each milestone and the Licensee shall
pay such invoice within thirty (30) days of receipt. Notwithstanding the foregoing the parties acknowledge that the first milestone has
been achieved and the Licensee shall pay the first milestone payment within five (5) days of the Effective Date (without further need
for an invoice).

 

Each
of the above milestone payments shall only be paid once, for the first achievement of the corresponding milestone event by each Product
(regardless of the number of times such milestone event is achieved by a Product).

 

8.3       Subject
to Clauses 8.5, 8.6 and 8.10 below, the Licensee shall pay to the Licensor the royalty set out below in respect of total Net Sales of
each Product that is sold or otherwise supplied by or on behalf of the Licensee (or, except as provided in Clause 8.3.1, any Related
Party) in the Territory to any person, as follows:

 

	Royalties
                                            payable to the Licensor on total Net Sales of each Product in a calendar year
	 	Percentage
                                            of Net

                           Sales
                           Price 

	Aggregate Net Sales of less than or equal to US $[***]	 	[***]%
	Aggregate
        Net Sales of greater than US $[***]  and less than or equal to US $[***]
	 	[***]%
	Aggregate
        Net Sales of greater than US $[***]  and less than or equal to US $[***]
	 	[***] %
	Aggregate Net Sales greater than US $[***]	 	[***] %

 

8.3.1       Notwithstanding
anything to the contrary, if (a) the applicable royalty that would be payable to Licensor pursuant to this Clause 8.3 (absent the application
of this Clause 8.3.1) with respect to a given Related Party’ Sublicensee Net Sales is greater than (b) the royalty actually received
by Licensee from such sub-licensee with respect to such Sublicensee Net Sales (the “Sublicensee Royalty”), then the
Percentage of Net Sales Price royalty rate payable in respect of such Sublicensee Net Sales shall be agreed between the Parties acting
reasonably and in good faith, such that Licensor and Licensee will each receive reasonable share of revenue from Sublicensee Net Sales.
The Parties will use best efforts to conclude such negotiations within 28 days after the date on which Licensee requests a change to
the royalty rate for such Sublicensee Net Sales pursuant to this Clause 8.3.1. To avoid any doubt the Related Party shall not be entitled
to make sales of the Products unless and until such royalty rate is agreed in writing.

 

    	21	 	 

     

    

 

8.4       Royalties
under Clause 8.3 shall be payable on a Product-by-Product and worldwide aggregate basis during the period of time commencing on the Launch
Date and ending on a country-by-country basis upon the later of: (a) 10 years from the date of First Commercial Sale of such Product
in such country; and (b) expiration of the last-to-expire Valid Claim of the Patents Covering the manufacture, use or sale of such Product
in such country (the “Royalty Term”). On a Product-by-Product and country-by-country basis, upon expiration
of the Royalty Term for a Product in a country, Licensee’s licence under Clause 2.1 with respect to such Product in such country
shall become fully-paid, irrevocable and perpetual.

 

8.5       In
the event that it is necessary to obtain one or more licenses to patent rights of Third Parties in order to make, have made, use, offer
to sell, sell or import a Product in a country (“Third Party Patent Licenses”), [***] percent ([***] %) of the royalties
actually paid to Third Parties under such Third Party Patent Licenses by Licensee or any of its Affiliates for the sale of such Product
in such country for a calendar quarter shall be creditable against the royalty payments due to Licensor by Licensee under Clause 8.3
(including Clause 8.3.1) with respect to Net Sales of such Product in such country for such calendar quarter; provided, however, that
in no event shall the royalties otherwise owed by Licensee to Licensor for such calendar quarter in such country be reduced by more than
[***] percent ([***] %) as a result of any and all such offsets in the aggregate. Any portion of the royalties paid to Third Parties
under such Third Party Patent Licenses with respect to such Product in such country that Licensee would, but for the foregoing limitation
on royalty reductions, be entitled to deduct under this Clause 8.5 shall be carried over and applied against royalties payable to Licensor
in respect of such Product in such country in subsequent calendar quarters until the full deduction is taken; provided, however,
that in no event shall the royalties otherwise owed by Licensee to Licensor for any calendar quarter in such country be reduced by more
than [***] % as a result of any and all such offsets in the aggregate.

 

    	22	 	 

     

    

 

8.6       On
a Product-by-Product and country-by-country basis, during any portion of the Royalty Term for a Product in a country when no Valid Claim
of the Patents covers the manufacture, use or sale of such Product in such country and there is no Regulatory Exclusivity for such Product
in such country, if one or more Generic Versions of such Product account for [***] % or more of aggregate unit sales of such Product
and such Generic Version(s) in such country in a calendar quarter, as determined by reference to applicable sales data obtained from
IMS Health or from such other source for such sales data as may be agreed upon by the Parties (provided that such other source, if any,
shall be generally recognized as a reliable source for pharmaceutical sales data among major pharmaceutical companies), then for the
remainder of the Royalty Term for such Product in such country, the royalties payable by Licensee under Clause 8.3 with respect to Net
Sales of such Product in such country shall be reduced by [***] %. For the avoidance of doubt, upon expiration of the Royalty Term, no
royalties shall be due and payable.

 

8.7       Intentionally
Omitted.

 

8.8       Intentionally
Omitted.

 

8.9       The
Licensee shall pay to the Licensor the Royalties set out below in respect of Net Receipts in respect of each Product within thirty (30)
days of receipt of such royalties. The Licensee shall promptly but no later than ten (10) business days notify the Licensor of each instance
of its receipt of any Net Receipts on such receipt by the Licensee or any Group Company of Licensee (along with any other particulars
in possession of Licensee that the Licensor may reasonably request). The Licensee shall make its own determination of Net Receipts but
the Licensor may challenge such determination in writing and, if it does so, the Licensee, at Licensor’s sole cost, shall promptly
obtain an external auditor’s certificate confirming or adjusting the determination made by Licensee. Both Parties shall abide by
any auditor’s certificate obtained under this Clause and shall promptly rectify any overpayment or underpayment (as the case may
be).

 

	Royalties
                                            payable to the Licensor on Net Receipts

    
	 	Percentage
    of Net Receipts 
	Net Receipts less than or equal to US $[***]	 	[***] %
	Net Receipts
        greater than US $[***]  and less than or equal to US $[***]
	 	[***] %
	Net Receipts
        greater than US $[***]  and less than or equal to US $[***]
	 	[***] %
	Net Receipts greater than US $[***]	 	[***] %

 

8.10       For
the avoidance of doubt the royalty bands in the tables above in Clause 8.3 and Clause 8.9 shall be applied cumulatively so that Net Sales,
and Net Receipts (as applicable) are calculated to the effect that where:

 

(i)
total, worldwide Net Sales for a Product (including all dose strengths of that Product) exceed US $[***] in a calendar year: (a) the
first US $[***] million shall accrue a royalty of [***] %; (b) the next US $[***] shall accrue a royalty of [***] %; (c) the next US
$[***] million shall accrue a royalty of [***] %; and (d) the Net Sales in excess of US $[***] shall accrue a royalty of [***] %;

 

    	23	 	 

     

    

 

(ii)
total, worldwide Net Receipts with respect to a given sublicensing transaction or sale exceed US $[***] over the lifetime of such transaction:
(a) the first US $[***] shall accrue a royalty of [***] %; (b) the next US $[***] shall accrue a royalty of [***] %; (c) the next US
$[***] shall accrue a royalty of [***] % and (d) the Net Receipts in excess of US $[***] shall accrue a royalty of [***] %.

 

8.11       Royalties
and other sums payable under this Agreement are exclusive of VAT (or similar tax) and shall be paid free and clear of all deductions
and withholdings whatsoever, unless the deduction or withholding is required by law. If the Licensee is required by law to make a deduction
or withholding, the Licensee shall, within five (5) Business Days of making the deduction or withholding, provide a statement in writing
showing the gross amount of the payment, the amount of the sum deducted and the actual amount paid. The Licensee shall use all reasonable
endeavours to assist the Licensor at Licensor’s cost to claim recovery or exemption under any double taxation or similar agreement
with respect to any such deduction.

 

8.12       Royalties
and any other sums payable under this Agreement shall be paid in US Dollars to the credit of a bank account to be designated in writing
by the Licensor.

 

8.13       Royalties
on Net Receipts are payable as provided for in Clause 8.9. Royalties on Net Sales accruing in a Quarterly Period shall be paid by the
Licensee within forty-five (45) days of the end of such Quarterly Period.

 

8.14       In
the event of any delay in paying any sum due under this Agreement by the due date, the Licensee shall pay to the Licensor:

 

8.14.1       interest
(calculated on a daily basis) on the overdue payment from the date when such payment was due to the date of actual payment at a rate
of [***] over the Bank of England base rate from time to time; and

 

8.14.2       Intentionally
Omitted.

 

8.15       At
the same time as payment of Royalties falls due, the Licensee shall submit or cause to be submitted to the Licensor a statement in writing
recording the calculation of such royalties payable and in particular, on a country-by-country basis:

 

8.15.1       the
Quarterly Period for which the royalties were calculated;

 

8.15.2       the
number of each of the Products sold or otherwise supplied during the Quarterly Period;

 

8.15.3       the
number of Products manufactured during the Quarterly Period but not yet sold or otherwise supplied;

 

8.15.4       the
Net Sales price of each Product sold or otherwise supplied in during the Quarterly Period and whether or not the supply in question was
a supply on an independent arm’s-length basis;

 

    	24	 	 

     

    

 

8.15.5       the
amount of Royalties due and payable;

 

8.15.6       where
relevant, the rate of exchange used;

 

8.15.7       the
amount of any withholding or other income taxes deductible or due to be deducted from the amount of Royalties due and payable; and

 

8.15.8       any
other particulars in possession of Licensee the Licensor may reasonably request.

 

8.16       Intentionally
Omitted.

 

8.17       The
Licensee shall keep proper records and books of account showing the description and price of Products supplied or put into use. Such
records and books shall be kept separate from any records and books not relating to the Products and be open during normal business hours
to inspection and audit by the Licensor (or its authorised representative), who shall be entitled to take copies of or extracts from
them. The Licensee shall provide such information and explanations as the representative shall require to verify any statements required
to be given under this Clause 8 and to satisfy the Licensor that the provisions of this Agreement are being complied with. If such inspection
or audit should reveal a discrepancy in the royalties paid from those payable under this Agreement, the Licensee shall immediately make
up the shortfall and (where the discrepancy is 5% of greater) reimburse the Licensor in respect of any reasonable actual documented professional
charges incurred for such audit or inspection. In the event that such inspection or audit reveals a discrepancy wherein the Licensee
has overpaid the Licensor, the Licensor shall immediately reimburse the Licensee for the overpayment and (where the discrepancy is 5%
of greater) also reimburse Licensee in respect of any reasonable actual documented professional charges Licensee may have incurred for
such audit or inspection. Such right of inspection of the Licensor may be exercised only once per Year and shall remain in effect for
a period of one (1) year after the termination of this Agreement. The Licensee shall procure, on the request of the Licensor, that its
sub-licensees shall grant rights directly to the Licensor corresponding to those granted by the Licensee under this Clause 8.17.

 

8.18       Within
one hundred and twenty (120) days of the end of each Year, the Licensee shall submit to the Licensor a written statement certified by
the Chief Financial Officer of Licensee’s or an alternative executive officer of Licensee if no Chief Financial Officer exists
of the aggregate Net Sales of Products supplied or put into use by the Licensee or a sub-licensee (including Group Companies and Affiliates)
in that Year and all sums due to be paid under this Agreement during that Year and the total amount due to be paid for that Year under
this Clause 8. If such statement shows that the amount paid by the Licensee is less than the amount due, the Licensee shall pay to the
Licensor within thirty (30) days of the submission of the statement an amount equivalent to the difference between the amount paid and
the amount due. Any overpayments shall be refunded by Licensor to Licensee within thirty (30) days following submission of the statement.
As noted in 8.17 above, Licensor shall have the right of audit or inspection of Licensee’s records with respect to the certified
statement and applicable supporting information or calculations contemplated in this section.

 

    	25	 	 

     

    

 

8.19       The
provisions of this Clause 8 shall remain in effect notwithstanding termination or expiry of this Agreement until the settlement of all
subsisting claims by the Licensor.

 

8.20       Where
the Licensee has granted any sub-licence under Clause 14, the Licensee shall include, in its payments due under this Clause 8 (subject
to, and to the extent provided in, this Clause 8), payments in respect of all activities set out in Clause 2 which are carried out by
or on behalf of the sub-licensee, and shall include records of such activities in all of the statements it submits under this Clause
8.

 

8.21       Intentionally
Omitted.

 

8.22       Intentionally
Omitted.

 

8.23       Unless
expressly stated to the contrary in this Agreement and except as set forth in Clause 8.18 above, no payments made under this Agreement
shall be returnable or available for credit against Royalties or any other sums payable by the Licensee under this Agreement.

 

		9.	BACKGROUND
                                            ipR AND Foreground IPR

 

9.1       As
between the Parties, Licensor is and shall at all times be the sole and exclusive owner of all right, title and interest in and to the
Licensor Background IPR and Licensee is and shall at all times be the sole and exclusive owner of all right, title and interest in and
to the Licensee Background IPR. Other than as expressly set out in this Agreement (or any other agreement between the Parties), the Licensee
shall have no right to use or any other right, title or interest in and to the Licensor’s Background IPR. Other than as expressly
set out in this Agreement (or any other agreement between the Parties) the Licensor shall have no right to use or any other right, title
or interest in and to the Licensee’s Background IPR.

 

9.2       The
Parties hereby acknowledge that Foreground IPR may be generated pursuant to the Licensee’s (or sub-licensee’s) exercise of
its rights and performance of its obligations under this Agreement. Such Foreground IPR shall be owned by the Licensee. To avoid any
doubt Joint IPR (as defined below) is not Foreground IPR and shall be owned and otherwise dealt with in accordance with Clause 10.

 

9.3       The
Licensee hereby grants to the Licensor a non-exclusive, royalty free, worldwide, irrevocable licence (together with the right to grant
sub-licences subject to the prior, written consent of Licensee (such consent not to be unreasonably withheld)) to use in any manner outside
the Field of Use any Foreground IP (other than Joint IPR, which is dealt with under Clause 10). The foregoing licence shall exclude the
Field of Use but shall automatically be extended to include the Field of Use in the event that this Agreement is terminated other than
due to a breach of this Agreement by the Licensor.

 

9.4       Intentionally
Omitted.

 

9.5       Intentionally
Omitted.

 

9.6       Intentionally
Omitted.

 

    	26	 	 

     

    

  

		10.	Intellectual
                                            Property Rights

 

10.1       
Without prejudice to Clause 9, a Party shall have and retain all right, title and interest in any Intellectual Property Rights created
solely by one or more employees or agents of such Party and or its Affiliates or other persons acting under its authority. The Parties
shall jointly own rights in any Intellectual Property Rights made jointly by one or more employees or agents of each Party and/or its
Affiliates or other persons acting under its authority (“Joint IPR”) and patents filed in respect of the same
(“Joint Patents”). The Licensee shall (subject to the following) have the exclusive right to practise and use,
and grant licences to practise and use, any Joint IPR and Joint Patents in the Field of Use without the Licensor’s consent and
has no duty to account to the Licensor for such practice, use or license. The Licensee shall have no right to make use of the Joint IPR
and/or the Joint Patents outside of the Field of Use without the prior written consent of the Licensor. The Licensor shall have the exclusive
right to practise and use, and grant licences to practise and use, any Joint IPR and Joint Patents outside the Field of Use without the
Licensee’s consent and has no duty to account to the Licensee for such practice, use or license. The Licensor shall have no right to
make use of the Joint IPR/or the Joint Patents within the Field of Use without the prior written consent of the Licensee provided that
in the event that this Agreement is terminated other than due to the acts and/or omissions of the Licensor or in the event that the Licensee
elects not to file a Joint Patent or elects to abandon any Joint Patents the Licensor shall be entitled to make non-exclusive use of
the Joint IPR and the Joint Patents within the Field of Use. The parties each hereby grant to the other party such licences of its joint
right, title and interest in and to the Joint IPR and the Joint Patents as are required to give effect to the foregoing rights of use
of the Joint IPR and the Joint Patents.

 

10.2       Licensor
shall have the sole right to control the preparation, filing, prosecution and maintenance of the Patents, at Licensor’s sole expense
and by counsel of its choice. Licensor shall keep Licensee reasonably informed of progress with regard to the preparation, filing, prosecution
and maintenance of such Patents and shall provide to Licensee copies of all material patent office submissions within a reasonable amount
of time following submission thereof by Licensor, to the extent that the foregoing is relevant to the licence rights granted to the Licensee.
Licensor shall consider any comments provided by Licensee in good faith. In the event that Licensor desires to abandon or cease prosecution
or maintenance of any Patents, Licensor shall provide written notice to Licensee of such intention to abandon no later than forty-five
(45) days prior to the next deadline for any action that must be taken with respect to such Patents in the relevant patent office. In
such case, upon receipt of a written request by Licensee to assume responsibility for prosecution and maintenance of such Patents, Licensor
shall allow Licensee at its sole cost and expense and by counsel of its own choice, delivered no later than 30 days after receipt of
notice from Licensee, to assume such responsibility from the Licensor. Each Party shall provide to the other Party any reasonable assistance
which the Party prosecuting and the maintaining the Patents reasonably requires in respect of the prosecution and maintenance of the
Patents. The Licensee shall take all necessary steps to facilitate the Licensor’s application for any supplementary protection
certificates, or any extension of, the Patents under any applicable law. The Licensor shall not be obliged to apply for the grant of
any supplementary protection certificates or for the extension of any Patents.

 

    	27	 	 

     

    

 

10.3       Licensee
shall have the first right, but not the obligation, to prepare, file, prosecute and maintain all Joint Patents, at Licensee’s sole
expense and by counsel of its choice. Licensee shall keep Licensor reasonably informed of progress with regard to the preparation, filing,
prosecution and maintenance of the Joint Patents, and shall provide to Licensor copies of all material patent office submissions within
a reasonable amount of time following submission thereof by Licensee. In the event that Licensee chooses not to file Joint Patents or
desires to abandon or cease prosecution or maintenance of any Joint Patents, Licensee shall provide written notice to Licensor of such
intention to abandon promptly after Licensee makes such determination, which notice shall be given no later than forty-five (45) days
prior to the next deadline for any action that must be taken with respect to such Joint Patents in the relevant patent office. In such
case, Licensor shall have the right, in its discretion, exercisable upon written notice to Licensee delivered no later than 30 days after
receipt of notice from Licensee, to assume responsibility for prosecution and maintenance of such Joint Patents, at its sole cost and
expense and by counsel of its own choice, and if Licensor exercises such right, then Licensee shall cease to have any license under Licensor’s
joint ownership interest in such Joint Patents but shall retain Licensee’s own joint ownership interest in such Joint Patents.

 

10.4       Licensee
shall have the sole right, but not the obligation, to control the preparation, filing, prosecution and maintenance of Licensee patents,
at Licensee’s sole expense and by counsel of its choice. Licensee shall keep Licensor reasonably informed of progress with regard
to the preparation, filing, prosecution and maintenance of patents relating to Products, and shall provide to Licensor copies of all
material patent office submissions within a reasonable amount of time following submission thereof by Licensee.

 

10.5       Each
Party agrees to cooperate fully in the preparation, filing, prosecution and maintenance of patents under this Agreement and in the obtaining
and maintenance of any patent extensions, supplementary protection certificates and the like with respect to any such patents. Such cooperation
includes, but is not limited to: (i) executing all papers and instruments, or requiring its employees or contractors to execute such
papers and instruments, so as to effectuate the joint ownership of Joint IPR and Joint Patents set forth in Clause 10.1, and to enable
the other Party to apply for and to prosecute patent applications in any country in accordance with the foregoing provisions of this
Clause 10; and (ii) promptly informing the other Party of any matters coming to such Party’s attention that may affect the preparation,
filing, prosecution or maintenance of any such patent applications.

 

    	28	 	 

     

    

 

10.6       Licensor
shall, within 10 days of learning of such event, inform Licensee of any request for, or filing or declaration of, any interference, opposition,
invalidation, reissue or reexamination relating to claims of the Patents that cover any Product or their use in the development or manufacture
of any Product (the “Relevant Licensor Patent Claims”). With respect to any request for, or filing or declaration
of, any interference, opposition, invalidation, reissue or reexamination relating to Relevant Licensor Patent Claims, Licensor shall
have the first right (in its discretion) to initiate, prosecute and/or respond, to such action or proceeding, provided that Licensor
shall consult with Licensee with respect to any such action or proceeding and shall consider Licensee’s position in good faith.
In the event that Licensor elects to initiate, prosecute and/or respond to any interference, opposition, invalidation, reexamination,
or reissue proceeding relating to any Relevant Licensor Patent Claim, the expenses thereof shall be borne solely by Licensor. Licensor
shall keep Licensee informed of developments in any such action or proceeding involving any Relevant Licensor Patent Claim.

 

10.7       Licensor
shall promptly inform Licensee in the event that Licensor elects not to initiate, prosecute and/or respond to any interference, opposition,
invalidation, reissue or reexamination relating to any Relevant Licensor Patent Claim, and in such case, subject always to any pre-existing
rights of a Third Party, Licensee shall have the right to do so (in Licensee’s discretion), at its cost and expense within ninety
(90) days of receiving notice from Licensor of its election not to prosecute and/or respond. The Licensee shall exercise such rights
at all times subject to and consistent with any pre-existing rights of Third Parties which have been notified by the Licensor to the
Licensee. Licensee shall not settle any interference, opposition, invalidation, reissue or reexamination action or proceeding relating
to any Relevant Licensor Patent Claim without the prior written consent of Licensor, which consent shall not be unreasonably withheld.
Licensee shall keep Licensor informed of developments in any such action or proceeding involving any Relevant Licensor Patent Claim.

 

10.8       Licensee
shall, within 10 days of learning of such event, inform Licensor of any request for, or filing or declaration of, any interference, opposition,
invalidation, reissue or reexamination relating to claims of the Joint Patents that cover a Product or its use or manufacture (the “Relevant
Joint Patent Claims”). Licensee shall have the first right (in its discretion) to initiate, prosecute and/or respond, to
such action or proceeding, provided that Licensee shall consult with Licensor with respect to any such action or proceeding and shall
consider Licensor’s position in good faith. In the event that Licensee elects to initiate, prosecute and/or respond to any interference,
opposition, invalidation, reexamination, or reissue proceeding relating to any Relevant Joint Patent Claim, the expenses thereof shall
be borne solely by Licensee. Licensee shall not settle any interference, opposition, invalidation, reissue or reexamination action or
proceeding relating to any Relevant Joint Patent Claim without the prior written consent of Licensor, which consent shall not be unreasonably
withheld. Licensee shall keep Licensor informed of developments in any such action or proceeding involving any Relevant Joint Patent
Claim.

 

    	29	 	 

     

    

 

10.9       Licensee
shall promptly inform Licensor in the event that Licensee elects not to initiate, prosecute and/or respond to any interference, opposition,
invalidation, reissue or reexamination relating to any Relevant Joint Patent Claim, and in such case, Licensor shall have the right to
do so (in Licensor’s discretion), at its cost and expense. Licensor shall not settle any interference, opposition, invalidation,
reissue or reexamination action or proceeding relating to any Relevant Joint Patent Claim without the prior written consent of Licensee,
which consent shall not be unreasonably withheld. Licensor shall keep Licensee informed of developments in any such action or proceeding
involving any Relevant Joint Patent Claim.

 

10.10       If
the request for, or filing or declaration of, any interference, opposition, invalidation, reissue or reexamination relates to claims
of the Joint Patents that do not cover a Product or its use or manufacture then the provisions of 10.6 and 10.7 shall apply, as if the
references to Licensor Patents were to Joint Patents.

 

10.11       Insofar
as any of the Patents licensed under this agreement are granted European Patents or applications for European Patents:

 

10.11.1       the
Licensor may at its absolute discretion decide to apply for a Unitary Patent in respect of any such European Patent or European Patent
application; and

 

10.11.2       the
Licensor shall notify the Licensee within 30 Business Days of any election to apply for a Unitary Patent under Clause 10.11.1.

 

10.12       In
the event that the Licensor elects to apply for a Unitary Patent under Clause 10.11, the Licensor shall provide notice of its grant to
the Licensee within 30 Business Days of receipt of the notification of the grant for the European Patent Office. The terms of this Agreement
shall apply to the Unitary Patent unless otherwise agreed by the parties in writing.

 

10.13       The
Licensor may at any time and at its absolute discretion elect to opt out from the exclusive jurisdiction of the Unified Patent Court
any:

 

10.13.1       Granted
European Patent; and

 

10.13.2       European
Patent application on grant.

 

10.14       Licensee
shall have the sole right, in its discretion, to handle any interference, opposition, invalidation, reissue, or reexamination proceeding
relating to Licensee patents, and Licensor shall have no rights in connection therewith provided that where any such patent has been
filed in respect of the Products, the Licensee shall keep Licensor informed of developments in any such action or proceeding.

 

    	30	 	 

     

    

  

10.15       Each
Party shall notify the other Party in writing within 10 Business Days (except as expressly set forth below) of becoming aware of any
alleged or threatened infringement by a Third Party of any of the Patents, Joint Patents or Licensee patents (“Infringement”),
including (x) any such alleged or threatened Infringement on account of a Third Party’s manufacture, use or sale of a Product in
the Field of Use, (y) any certification filed in the United States under 21 U.S.C. §355(b)(2) or 21 U.S.C. §355(j)(2) or similar
provisions in other jurisdictions in connection with an ANDA (an Abbreviated New Drug Application in the United States or a comparable
application for Marketing Approval under Applicable Law in any country other than the United States) or other NDA for a Product in the
Field of Use (a “Patent Certification”), and (z) any declaratory judgment action filed by a Third Party that
is developing, manufacturing or commercializing a Product in the Field of Use alleging the invalidity, unenforceability or non-infringement
of any of the Patents, Joint Patents or Licensee patents ((x)-(z), collectively, “Competitive Infringement”);
provided, however, that each Party shall notify the other Party of any Patent Certification regarding any Patents, Joint Patents
or Licensee patents that it receives, and such Party shall provide the other Party with a copy of such Patent Certification, within five
(5) days of receipt.

 

10.16       Licensor
shall have the first right, but not the obligation, to bring (or defend) and control any action or proceeding with respect to Competitive
Infringement of the Patents at Licensor’s own expense and by counsel of its own choice. If Licensor fails to bring any such action
or proceeding with respect to Competitive Infringement of any Patents that covers a Product within ninety (90) days following the notice
of alleged Competitive Infringement, Licensee shall have the right, subject always to any pre-existing rights of a Third Party, to bring
(or defend) and control any such action at its own expense and by counsel of its own choice, and Licensor shall have the right, at its
own expense, to be represented in any such action by counsel of its own choice. The Licensee shall not institute proceedings, except
as expressly authorised in advance and in writing by the Licensor. The Licensee’s exercise of the foregoing rights shall at all
times be subject to and consistent with any pre-existing rights of Third Parties.

 

10.17       Licensee
shall have the first right, but not the obligation, to bring (or defend) and control any action or proceeding with respect to Competitive
Infringement of a Joint Patent Right that covers a Product at Licensee’s own expense and by counsel of its own choice. If Licensee
fails to bring any such action or proceeding with respect to Competitive Infringement of any joint Patent Right that covers a Product
within ninety (90) days following the notice of alleged Competitive Infringement, Licensor shall have the right to bring (or defend)
and control any such action at its own expense and by counsel of its own choice, and Licensee shall have the right, at its own expense,
to be represented in any such action by counsel of its own choice.

 

10.18       In
the event of a Competitive Infringement of a Joint Patent Right that does not cover a Product the provisions of 10.16 shall apply and
the references to the Patents shall be deemed replaced by references to the Joint Patent Right.

 

10.19       Licensee
shall have the sole right, but not the obligation, to bring (or defend) and control any action or proceeding with respect to infringement
of any Licensee patents at its own expense and by counsel of its own choice.

    	31	 	 

     

    

 

10.20       In
the event a Party brings (or defends) an Infringement action in accordance with this Clause 10, or in the event a Party is entitled to
bring (or defend) an infringement action in accordance with this Clause 10 but lacks standing to do so, the other Party shall cooperate
reasonably, including, if required to bring (or defend) such action, the furnishing of a reasonable, limited, power of attorney or being
named as a party. Neither Party shall enter into any settlement or compromise of any action under this Clause 10 which would in any manner
alter, diminish, or be in derogation of the other Party’s rights under this Agreement without the prior written consent of such
other Party, which shall not be unreasonably withheld.

 

10.21       Except
as otherwise agreed by the Parties in connection with a cost-sharing arrangement, any recovery realized by a Party as a result of any
action or proceeding pursuant to this Clause 10, whether by way of settlement or otherwise, shall be applied first to reimburse the documented
out-of-pocket legal expenses of the Party that brought (or defended) and controlled such action or proceeding incurred in connection
with such action or proceeding, and second to reimburse the documented out-of-pocket legal expenses of the other Party incurred in connection
with such action or proceeding, and any remaining amounts shall be retained by the Party that brought (or defended) and controlled such
action; provided, however, that:

 

(a)       any
recovery realized by Licensee as a result of any action brought (or defended) and controlled by Licensee pursuant to Clause 10 (after
reimbursement of the Parties’ documented out-of-pocket legal expenses relating to the action or proceeding) shall be allocated
as follows:

 

		(i)	compensatory
                                            damages shall, if awarded, be treated as Net Sales of Products in the quarter in which such
                                            damages are received for purposes of Clause 8.3; and

 

		(ii)	non-compensatory
                                            damages shall be shared equally by the Parties; and

 

		(iii)	any
                                            recovery realized by Licensor as a result of any action brought and controlled by Licensor
                                            pursuant to Clause 10 (after reimbursement of the Parties’ documented out-of-pocket
                                            legal expenses relating to the action or proceeding) shall be allocated as follows:

 

		(1)	compensatory
                                            damages shall belong solely to Licensor; and

 

		(2)	non-compensatory
                                            damages shall be shared equally by the Parties.

 

10.22       The
Parties shall have the right to seek Patent Term Extensions as follows:

 

10.22.1       Licensor
shall have the right to determine the Patents for which it will apply for patent extension in any country and/or region for any Product
in the Field of Use. Licensor shall file for any such extension at Licensor’s cost and expense. Licensee shall provide all reasonable
assistance to Licensor in connection with such filings, provided that Licensor shall pay or reimburse any out-of-pocket costs incurred
by Licensee in providing such assistance. If Licensor determines not to seek a patent extension for a Patent covering the Product in
any country of the Territory, then in such instance, Licensor shall allow Licensee to seek such patent term extension (in Licensor’s
name) at Licensee’s cost and expense. In such instance, Licensor shall provide all reasonable assistance as necessary to enable
Licensee to seek such patent term extension.

 

    	32	 	 

     

    

 

10.22.2       Licensee
shall have the right to determine the Joint Patents for which it will apply for patent extension in any country and/or region for any
Product in the Field of Use, and Licensee shall file for any such extension at Licensee’s cost and expense. Licensor shall have
the right to determine the Joint Patents for which it will apply for patent extension in any country and/or region for any product outside
of the Field of Use, and Licensor shall file for any such extension at Licensor’s cost and expense. Each Party shall provide all
reasonable assistance to the other Party in connection with such filings, provided that the Party filing for any such extension shall
pay or reimburse any out-of-pocket costs incurred by the other Party in providing such assistance.

 

10.22.3       Licensee
shall have the sole right to apply for extension of any Licensee patents in any country and/or region for any product, including, without
limitation, any Product in the Field of Use, at Licensee’s sole cost and expense.

 

10.23       Each
Party shall promptly notify the other in writing of any allegation by a Third Party that the activity of either Party pursuant to this
Agreement infringes or may infringe the intellectual property rights of such Third Party. Neither Party shall have the right to settle
any patent infringement litigation under this Clause 10.23 in a manner that diminishes the rights or interests of the other Party without
the written consent of such other Party (which shall not be unreasonably withheld).

 

		11.	indemnity
                                            and insurance

 

11.1       Licensee
hereby agrees to save, defend, indemnify and hold harmless Licensor, its Affiliates, its and their respective officers, directors, agents,
employees, successors and assigns (the “Licensor Indemnitees”) from and against any and all losses, damages,
liabilities, expenses and costs, including reasonable and documented legal expense and attorneys’ fees (“Losses”),
to which any Licensor Indemnitee may become subject as a result of any claim, demand, action or other proceeding by any Third Party (each,
a “Claim”) to the extent such Losses arise out of or relate to (a) the gross negligence or wilful misconduct
of any Licensee Indemnitee (defined below), (b) the breach by Licensee of any warranty, representation, covenant made by Licensee in
this Agreement, or (c) the development, manufacture, use, sale, offer for sale or other disposition by or on behalf of Licensee, any
sub-licensee or any of its Related Parties of any Product; except, (i) in each case, to the extent such Losses result from the gross
negligence or wilful misconduct of any Licensor Indemnitee or the breach by Licensor of any warranty, representation, covenant or agreement
made by Licensor in this Agreement and (ii) any Claim for which Licensor is obligated to indemnify Licensee under Clause 11.2.

 

    	33	 	 

     

    

 

11.2       Licensor
hereby agrees to save, defend, indemnify and hold harmless Licensee, its Affiliates and their respective officers, directors, employees,
consultants and agents (the “Licensee Indemnitees”) from and against any and all Losses to which any Licensee
Indemnitee may become subject as a result of any claim, demand, action or other proceeding by any Third Party to the extent such Losses
arise out of or relate to (a) the gross negligence or wilful misconduct of any Licensor Indemnitee, (b) a breach of the warranty in Clause
12.2.7 and (c) the breach by Licensor of any other warranty, representation, covenant made by Licensor in this Agreement; in each case
except to the extent such Losses result from the gross negligence or wilful misconduct of any Licensee Indemnitee or the breach by Licensee
of any warranty, representation, covenant or agreement made by Licensee in this Agreement.

 

11.3       In
the event a Party (the “Indemnified Party”) seeks indemnification under Clause 11, it shall inform the other
Party (the “Indemnifying Party”) of a claim as soon as reasonably practicable after it receives notice of the
claim (it being understood and agreed, however, that the failure by an Indemnified Party to give notice of a claim as provided in this
Clause 11.3 shall not relieve the Indemnifying Party of its indemnification obligation under this Agreement except and only to the extent
that such Indemnifying Party is actually damaged as a result of such failure to give notice), shall permit the Indemnifying Party to
assume direction and control of the defense of the claim (including the right to settle the claim solely for monetary consideration)
using counsel reasonably satisfactory to the Indemnified Party, and shall cooperate as reasonably requested (at the expense of the Indemnifying
Party) in the defence of the claim. If the Indemnifying Party does not assume control of such defence within 15 days after receiving
notice of the claim from the Indemnified Party, the Indemnified Party shall control such defence and, without limiting the Indemnifying
Party’s indemnification obligations, the Indemnifying Party shall reimburse the Indemnified Party for all costs, including reasonable
and documented attorney fees, incurred by the Indemnified Party in defending itself within thirty (30) days after receipt of any invoice
therefor from the Indemnified Party. The Party not controlling such defence may participate therein at its own expense. The Party controlling
such defence shall keep the other Party advised of the status of such action, suit, proceeding or claim and the defence thereof and shall
consider recommendations made by the other Party with respect thereto. The Indemnified Party shall not agree to any settlement of such
action, suit, proceeding or claim without the prior written consent of the Indemnifying Party, which shall not be unreasonably withheld,
delayed or conditioned. The Indemnifying Party shall not agree to any settlement of such action, suit, proceeding or claim or consent
to any judgment in respect thereof that does not include a complete and unconditional release of the Indemnified Party from all liability
with respect thereto, that imposes any liability or obligation on the Indemnified Party or that acknowledges fault by the Indemnified
Party without the prior written consent of the Indemnified Party. If the Parties cannot agree as to the application of Clause 11.1 or
11.2 to any claim, pending resolution of the dispute pursuant to Clause 11, the Parties may conduct separate defenses of such claims,
with each Party retaining the right to claim indemnification from the other Party in accordance with Clause 11.1 or 11.2, as applicable,
upon resolution of the underlying claim.

 

    	34	 	 

     

    

 

11.4       Each
Party shall procure and maintain insurance, including comprehensive or commercial general liability insurance (including contractual
liability and product liability), adequate to cover its obligations hereunder and which is consistent with normal business practices
of prudent companies similarly situated. It is understood that such insurance shall not be construed to create a limit of either Party’s
liability with respect to its indemnification obligations under this Clause 11 or otherwise. Each Party shall provide the other Party
with written evidence of such insurance upon request. Each Party shall provide the other Party with written notice at least 30 days prior
to the cancellation, non-renewal or material change in such insurance which materially adversely affects the rights of the other Party
hereunder.

 

		12.	REPRESENTATIONS
                                            AND WARRANTIES; CERTAIN COVENANTS

 

12.1       Each
Party represents and warrants to the other that, as of the Effective Date: (a) it is duly organized and validly existing under the laws
of its jurisdiction of incorporation or formation, and has full corporate or other power and authority to enter into this Agreement and
to carry out the provisions hereof; (b) it is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder,
and the person or persons executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate or partnership
action; and (c) this Agreement is legally binding upon it, enforceable in accordance with its terms, and does not conflict with any agreement,
instrument or understanding, oral or written, to which it is a party or by which it may be bound, nor violate any material law or regulation
of any court, governmental body or administrative or other agency having jurisdiction over it.

 

12.2       Licensor
represents and warrants to Licensee that as of the Effective Date of this Agreement:

 

12.2.1       Schedule
1 attached hereto contains a true and complete list of the Licensor Background IPR including any Patents existing as of the Effective
Date. The Licensor Background IPR listed on Exhibit A include all of the patents and patent applications Controlled by Licensor or any
of its Affiliates as of the Effective Date that relate to the Licensor Technology.

 

12.2.2       Licensor
(i) has the right to grant the licenses that it purports to grant in Clause 2.1; and (ii) has not granted to any Third Party any licence
or other right with respect to a Product or Patents that conflicts with the licence and rights granted to Licensee herein;

 

12.2.3       except
for any Third Party Licence Agreements, there are no agreements in effect as of the Effective Date between (a) Licensor and any of its
Affiliates or (B) Licensor or any of its Affiliates and a Third Party, in each case under which rights with respect to the Licensor Technology
are being licensed to Licensor or any of its Affiliates;

 

    	35	 	 

     

    

 

12.2.4       (A)
each of the Third Party Licence Agreements remains in full force and effect, (B) (i) Licensor (and each of its Affiliates, as applicable)
and, (ii) to Licensor’s knowledge, each counterparty to a Third Party Licence Agreement, are each in compliance in all material
respects with the terms of the applicable Third Party Licence Agreement (including any applicable diligence requirements), (C) all necessary
consents, approvals, and authorisations under such Third Party Licence Agreement required to be obtained by Licensor or any of its Affiliates
in order to enter into this Agreement have been obtained and (D) the Licence (including the scope of Licensor Technology that is covered
by the Licence) will not be diminished or otherwise impacted in the event that Licensor and any Affiliate of Licensor that is currently
a party to a Third Party Licence Agreement are no longer Affiliates;

 

12.2.5       the
issued and unexpired claims of any Patents included in the Licensor Background IPR existing as of the Effective Date to the knowledge
of Licensor are valid and enforceable.

 

12.2.6       no
reexamination, interference, invalidity, opposition, nullity or similar claim or proceeding is pending or, to the Licensor’s knowledge,
threatened with respect to any Patents;

 

12.2.7       to
Licensor’s knowledge, the manufacture, use, sale, offer for sale or import of any Product containing or incorporating the Licensor
Technology shall not and does not infringe any issued patent of any Third Party, and Licensor has not received written notice from any
Third Party claiming that the manufacture, use, sale, offer for sale or import of the Licensor Technology infringes or would infringe
the patent or other Intellectual Property Rights of any Third Party; if Licensor receives any such written notice during the term of
this Agreement, Licensor shall promptly provide such written notice to Licensee;

 

12.2.8       there
are no claims, judgments or settlements against or owed by Licensor (or any of its Affiliates) with respect to the Licensor Technology,
and Licensor is not a party to any legal action, suit or proceeding relating to the Licensor Technology, or any Product, nor has Licensor
received any written communication from any Third Party, including, without limitation, any Regulatory Authority or other government
agency, threatening such action, suit or proceeding;

 

12.2.9       all
tangible or recorded information and data provided by or on behalf of Licensor to Licensee related to the Licensor Technology or any
Product on or before the Effective Date in contemplation of this Agreement was and is true, accurate and complete in all material respects,
and Licensor, to its knowledge, has not failed to disclose, or failed to cause to be disclosed, any such information or data related
to the Licensor Technology or any Product in its possession and Control that would cause the information and data that has been disclosed
to be misleading in any material respect;

 

    	36	 	 

     

    

 

12.2.10       neither
Licensor nor any of its Affiliates has obtained, or filed for, any INDs, NDAs or Marketing Approvals for any Product, and, to the best
of Licensor’s knowledge, no other Person has obtained, or filed for, any INDs, NDAs or Marketing Approvals for any Product in the
Field in the Territory;

 

12.2.11       at
the time of delivery to Licensee, any reference samples delivered to Licensee will be free and clear of any liens or encumbrances;

 

12.2.12       there
are no ongoing research or development activities (including any clinical trials) being conducted by or on behalf of Licensor or any
of its Affiliates related to Compounds or Products in the Field of Use in the Territory other than with respect to Concerta; and

 

12.2.13       neither
Licensor nor any of its Affiliates is debarred or disqualified under the Act or comparable Applicable Laws outside of the United States.

 

12.3       In
addition to any covenants made by Licensor elsewhere in this Agreement, Licensor hereby covenants to Licensee that during the Term, Licensor
will (i) not grant any Third Party any license or other right with respect to any Product or Licensor Technology in derogation of the
license and rights granted to Licensee hereunder, and (ii) disclose any and all additional Licensor Technology developed or Controlled
by Licensor after the Effective Date which is relevant to the Licence; and (iii) will ensure that each Third Party Licence Agreement
is maintained in full force and effect, and is not terminated or amended in any respect that would impact Licensee’s rights under
this Agreement. In addition, DDI hereby covenants to Licensee that during the Term, DDI will ensure that each Third Party Licence Agreement
is maintained in full force and effect, and is not terminated or amended in any respect that would impact Licensee’s rights under
this Agreement.

 

12.4       Licensee
represents and warrants to Licensor that as of the Effective Date of this Agreement:

 

12.4.1,
neither Licensee nor any of its Affiliates is debarred or disqualified under the Act or comparable Applicable Laws outside the United
States.

 

12.5       In
addition to any covenants made by a Party elsewhere in this Agreement, each Party hereby covenants to the other as follows:

 

12.5.1       neither
such Party nor any of its Affiliates will employ or use the services of any Person who is debarred or disqualified under United States
law, including 21 U.S.C. §335a, or any foreign equivalent thereof, in connection with activities relating to any Product; and in
the event that such Party becomes aware of the debarment or disqualification or threatened debarment or disqualification of any Person
providing services to such Party or any of its Affiliates with respect to any activities relating to any Product, such Party will immediately
notify the other Party in writing and such Party will cease, or cause its Affiliate to cease (as applicable), employing, contracting
with, or retaining any such Person to perform any services relating to any Product; and

 

    	37	 	 

     

    

 

12.5.2       neither
such Party nor any of its Affiliates will, in connection with the exercise of its rights or performance of its obligations under this
Agreement, directly or indirectly through Third Parties, pay, promise or offer to pay, or authorize the payment of, any money or give
any promise or offer to give, or authorize the giving of anything of value to a public official or entity or other Person for purpose
of obtaining or retaining business for or with, or directing business to, any Person, including such Party and its Affiliates, nor will
such Party or any of its Affiliates directly or indirectly promise, offer or provide any corrupt payment, gratuity, emolument, bribe,
kickback, illicit gift or hospitality or other illegal or unethical benefit to a public official or entity or any other Person in connection
with the exercise of such Party’s rights or performance of such Party’s obligations under this Agreement.

 

12.6       The
Parties recognize that each Party may perform some or all of its obligations or exercise some or all of its rights under this Agreement
through one or more Affiliates or subcontractors provided, in each case, that (a) none of the other Party’s rights hereunder
are diminished or otherwise adversely affected as a result of such delegation or subcontracting, and (b) each such Affiliate, or subcontractor
undertakes in writing obligations of confidentiality and non-use regarding Confidential Information and ownership of Inventions which
are substantially the same as those undertaken by the Parties pursuant to Clause 7; and provided, further, that such Party shall
at all times be fully responsible for the performance and payment of such Affiliate or subcontractor.

 

12.7       EXCEPT
FOR LIABILITY IN THE CASE OF FRAUD OR INTENTIONAL MISCONDUCT, AND WITHOUT LIMITING THE PARTIES’ RESPECTIVE INDEMNITY OBLIGATIONS
UNDER CLAUSE 11.1 AND CLAUSE 11.2 WITH RESPECT TO THIRD PARTY CLAIMS ONLY, NEITHER PARTY SHALL BE LIABLE FOR OR ENTITLED TO RECOVER FROM
THE OTHER PARTY ANY LOSS OF PROFITS, LOSS OF BUSINESS OPPORTUNITY OR ANY SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES
IN CONNECTION WITH THIS AGREEMENT OR ANY LICENCE GRANTED HEREUNDER HOWSOEVER CAUSED, WHETHER ARISING IN CONTRACT, TORT (INCLUDING NEGLIGENCE)
OR OTHERWISE AND WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES ARISING UNDER THIS AGREEMENT.

 

12.8       Except
in respect of liability for fraud or intentional misconduct, and without limiting Licensor’s indemnity obligations under Clause
11.2 with respect to Third Party Claims, the Licensor’s total liability, in aggregate, arising under or in connection with this
Agreement (whether in contract, tort or otherwise) shall in no event exceed the total of the sums payable under this Agreement by the
Licensee in the twelve months prior to the date of the event giving rise to the liability.

 

    	38	 	 

     

    

 

12.9       Except
for fraud or intentional misconduct, and without limiting Licensee’s indemnity obligations under Clause 11.1 with respect to Third
Party Claims, the Licensee’s total liability, in aggregate, arising under or in connection with this Agreement (whether in contract,
tort or otherwise) shall in no event exceed the total of the sums payable under this Agreement by the Licensee in the twelve months prior
to the date of the event giving rise to the liability.

 

12.10       Nothing
in this Agreement shall have the effect of excluding or limiting any liability for death or personal injury caused by negligence or for
fraud or which may not otherwise be excluded or limited under Applicable Law.

 

		13.	Additional
                                            licensee obligations

 

13.1       The
Licensee shall:

 

13.1.1       ensure
that the Products are safe for developmental and clinical trial use and for the indication(s) approved under the relevant Marketing Authorisation(s);

 

13.1.2       obtain
at its own expense all licences, permits and consents (including Marketing Approvals) necessary for the provision of the Products in
the Territory and upon reasonable request promptly supply copies of all of these to the Licensor and such further information as the
Licensor shall reasonably require;

 

13.1.3       perform
its obligations with all due skill, care and diligence, including Good Industry Practice;

 

13.1.4       only
make use of the Patents and the Licensed Know-How for the purposes authorised in this Agreement; and

 

13.1.5       comply
with all regulations and practices in force or use in the Territory to safeguard the Licensor’s rights in the Patents and the Licensed
Know-How.

 

13.2       The
Licensee shall not, nor directly or indirectly assist any other person to use any child labour in the manufacture or distribution of
the Products, and where third parties are to manufacture or distribute those Products, the Licensee shall procure from those third parties
written confirmation that they shall not use any child labour in the manufacture or distribution of the Products.

 

13.3       The
Licensee acknowledges and agrees that the exercise of the Licence is subject to all Applicable Laws in the Territory (including those
relating to Pharmacovigilance and data protection and privacy), codes of practice and Good Industry Practice (in each case, to the extent
applicable to Licensee), and the Licensee understands and agrees that it shall at all times be solely liable and responsible for such
due observance and performance of these.

 

    	39	 	 

     

    

  

		14.	Sub-licensing

 

The
Licensee shall have the right to grant to any person a sub-licence of any of its rights under this Agreement provided that:

 

(a)       the
prior written approval of the Licensor which approval shall not be unreasonably withheld, delayed or conditioned is obtained in respect
of each sub-licensee (provided, however, that no such approval is required with respect to any sublicenses granted to any manufacturer
pursuant to Clause 15 or with respect to any distributors or other third parties assisting Licensee with the development or commercialization
of the Product);

 

(b)       all
sub-licences granted shall terminate automatically on termination or expiry of this Agreement; and

 

(c)       the
Licensee shall be liable for all acts and omissions of any sub-licensee and shall indemnify the Licensor against all Losses incurred
or suffered by the Licensor, arising out of any act or omission of any sub-licensee, including any Claim based on any theory of product
liability relating to Products manufactured, supplied or put into use by the sub-licensee; and

 

(d)       any
sub-licensee shall first enter into an agreement with the Licensee which is no less protective of the Licensor’s interests in the
Patents and the Licensed Know-How than the terms of this Agreement. The Licensee agrees to monitor the sub-licensee’s compliance
with such agreement and, if necessary, promptly enforce such agreement either at its own discretion or at the request of the Licensor.

 

		15.	Subcontracting

 

The
Licensee shall have the right to subcontract the manufacture of the Products provided that:

 

(a)       any
subcontractor shall first enter into an agreement with the Licensee which is no less protective of the Licensor’s interests in
the Patents and the Licensed Know-How than the terms of this Agreement and the Licensee agrees to monitor the subcontractor’s compliance
with such agreement and, if necessary, promptly enforce such agreement either on its own motion or at the request of the Licensor; and

 

(b)       the
Licensee shall be liable for all acts and omissions of any subcontractor and shall indemnify the Licensor against all Losses or suffered
by the Licensor, or for which the Licensor may become liable (whether direct, indirect or consequential and including any economic loss
or other loss of profits, business or goodwill) arising out of any act or omission of any subcontractor, including any Claim based on
any theory of product liability relating to Products manufactured by the subcontractor.

 

    	40	 	 

     

    

 

		16.	Assignment
                                            and other dealings

 

16.1       Neither
Party shall without the prior written consent of the other Party which consent shall not be unreasonably withheld, conditioned or delayed,
assign, transfer, mortgage, charge, declare a trust of or deal in any other manner with any of its rights or obligations under this Agreement
provided however that each Party may assign this Agreement and its rights and delegate its obligations hereunder without the other Party’s
consent.

 

(a)       in
connection with the transfer or sale of all or substantially all of the business of such Party to which this Agreement relates to a Third
Party whether by merger, sale of stock, sale of assets or obtain (each a “Sale Transaction”); or

 

(b)       to
an Affiliate provided that the assigning Party shall remain liable and responsible to the non-assigning Party for the performance and
observance of all such duties and obligations by such Affiliate.

 

The
rights and obligations of the Parties under this Agreement shall be binding upon and insure to the benefit of the successors and permitted
assigns of the Parties, and the name of a Party appearing herein will be deemed to include the name of such Party’s successors
and permitted assigns to the extent necessary to carry out the intent of this clause. Any assignment not in accordance with this Agreement
shall be void. In the event of an assignment and assumption of rights and obligations under this Agreement to a Third Party in connection
with a Sale Transaction, the assigning Party shall be relieved of all obligations to the non-assigning Party assumed by the applicable
Party.

 

		17.	Duration
                                            and termination

 

17.1       The
term of this Agreement shall commence on the Effective Date and, unless earlier terminated in accordance with this Clause 17, continue
until the later of: (1) expiration of the last-to-expire of all Valid Claims of the Patents; and (2) the last-to-expire of all payment
obligations of the Licensee under this Agreement (the “Term”).

 

17.2       Termination
for Material Breach.

 

17.2.1       Each
Party shall have the right to terminate this Agreement in its entirety upon written notice to the other Party if such other Party is
in material breach of this Agreement and has not cured such breach within forty five (45) days after notice from the terminating Party
requesting cure of the breach. Any such termination shall become effective at the end of such forty five (45) day period unless the breaching
Party has cured such breach prior to the end of such period. Any right to terminate under this Clause 17.1 shall be stayed and the cure
period tolled in the event that, during any cure period, the Party alleged to have been in material breach shall have initiated dispute
resolution in accordance with Clause 20 with respect to the alleged breach, which stay and tolling shall continue until such (i) dispute
has been resolved in accordance with Clause 20 and (ii) a reasonable period to effect any necessary cure in connection with such resolution
has expired without such cure having been completed.

 

    	41	 	 

     

    

 

17.3       Termination
for Patent Challenge. Licensor shall have the right to terminate this Agreement immediately upon written notice to Licensee if Licensee,
any sub-licensee or Related Party or its Affiliate directly, or through assistance granted to a Third Party, commences any interference
or opposition proceeding with respect to, challenges the validity or enforceability of, or opposes any extension of or the grant of a
supplementary protection certificate with respect to, any Patents or the secret and substantial nature of the Licensed Know-How.

 

17.4       Termination
for Bankruptcy. Either Party may terminate this Agreement if, at any time, the other Party files in any court or agency pursuant
to any statute or regulation of any state, country or jurisdiction, a petition in bankruptcy or insolvency or for reorganization or for
an arrangement or for the appointment of an administrator, a receiver or trustee of that Party or of its assets, or if the other Party
proposes a written agreement of composition or extension of its debts, or if the other Party is served with an involuntary petition against
it, filed in any insolvency proceeding, and such petition is not dismissed within sixty (60) days after the filing thereof, or if the
other Party proposes or becomes a Party to any dissolution or liquidation, or if the other Party makes an assignment for the benefit
of its creditors, or any event occurs, or proceeding is taken, with respect to the other Party which in any jurisdiction to which it
is subject that has an equivalent effect to any of the foregoing.

 

		18.	EFFECT
                                            OF EXPIRATION OR TERMINATION

 

18.1       Upon
expiration (but not on earlier termination) of this Agreement, all licenses granted by Licensor to Licensee that were in effect immediately
prior to such expiration shall survive on a perpetual, irrevocable, non-exclusive, fully-paid, royalty-free basis and shall be fully
transferable and sublicensable without any obligation to obtain Licensor’s consent (and Licensor hereby grants such licenses to
Licensee, effective upon expiration of this Agreement).

 

18.2       Upon
any termination of this Agreement prior to its expiration, the licence granted to Licensee under this Agreement shall automatically terminate
and revert to Licensor, and all other rights and obligations of the Parties under this Agreement shall terminate, except as expressly
provided below in this Clause 18.3 or elsewhere in this Clause 18. Pursuant to the foregoing the Licensee shall and shall procure that
all sub-licensees (at all levels) shall cease all exploitation of the Patents, the Licensed Know-How and the Products.

 

18.3       
Neither expiration nor any termination of this Agreement shall relieve either Party of any obligation or liability accruing prior to
such expiration or termination, nor shall expiration or any termination of this Agreement preclude either Party from pursuing all rights
and remedies it may have under this Agreement, at law or in equity, with respect to breach of this Agreement. In addition, the Parties’
rights and obligations under Clauses 18.1 (following expiration of this Agreement), 18.2 (following termination of this Agreement), 18.3,
18.4, 18.5 and 18.7 and Clauses 5, 7, 10, 11,12 and 19 of this Agreement shall survive expiration or any termination of this Agreement.

 

    	42	 	 

     

    

 

18.4       Within
thirty (30) days following the expiration or termination of this Agreement, each Party shall promptly return to the other Party, or delete
or destroy, all relevant records and materials in such Party’s possession or control containing Confidential Information of the
other Party; provided that such Party may keep one copy of such materials for archival purposes only subject to a continuing confidentiality
obligations.

 

18.5       Termination
of this Agreement shall not preclude either Party from claiming any other damages, compensation or relief that it may be entitled to
hereunder.

 

18.6       Upon
termination of this Agreement all sums payable to the Licensor shall become immediately due for payment.

 

18.7       
Notwithstanding anything to the contrary, for one hundred eighty (180) days following the effective date of any termination of this Agreement,
other than due to the breach of this Agreement by the Licensee, (the “Sell-Off Period”), Licensee and any Related
Parties shall have the right, but not the obligation, to sell-off any inventories of Product that were manufactured or on order prior
to the effective date of termination. Any Net Sales (as applicable) generated during the Sell-Off Period in connection with the sale
of Products shall be subject to the royalty payment provisions set forth in Clause 8.3.

 

		19.	MISCELLANEOUS

 

19.1       Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of England and Wales except as to any issue which
depends upon the validity, scope or enforceability of any Patent, which issue shall be determined in accordance with the laws of the
country in which such patent was issued. Except as set forth in the immediately preceding sentence and in Clause 20 hereof and in the
definition of Net Sales, the Parties agree that the courts of England and Wales in London England shall have the exclusive jurisdiction
to settle any dispute or claim that arises out of or in connection with this Agreement or its subject matter.

 

19.2       Entire
Agreement; Amendments. This Agreement (including the Schedule hereto) is both a final expression of the Parties’ agreement
and a complete and exclusive statement with respect to all of its terms. This Agreement supersedes all prior and contemporaneous agreements
and communications, whether oral, written or otherwise, concerning any and all matters contained herein. The Schedule to this Agreement
is incorporated herein by reference and shall be deemed a part of this Agreement. This Agreement may be amended, or any term hereof modified,
only by a written instrument duly executed by authorised representatives of both Parties hereto.

 

    	43	 	 

     

    

 

19.3       Non-Waiver.
The failure of a Party to insist upon strict performance of any provision of this Agreement or to exercise any right arising out
of this Agreement shall neither impair that provision or right nor constitute a waiver of that provision or right, in whole or in part,
in that instance or in any other instance. Any waiver by a Party of a particular provision or right shall be in writing, shall be as
to a particular matter and, if applicable, for a particular period of time and shall be signed by such Party.

 

19.4       Force
Majeure. Each Party shall be excused from liability for the failure or delay in performance of any obligation under this Agreement
by reason of any event beyond such Party’s reasonable control, including but not limited to Acts of God, fire, flood, explosion,
earthquake, or other natural forces, war, civil unrest, acts of terrorism, accident, destruction or other casualty, any lack or failure
of transportation facilities, any lack or failure of supply of raw materials, any strike or labor disturbance, or any other event similar
to those enumerated above. Such excuse from liability shall be effective only to the extent and duration of the event(s) causing the
failure or delay in performance and provided that the Party has not caused such event(s) to occur. The affected Party shall notify the
other Party of such force majeure circumstances as soon as reasonably practical, and shall promptly undertake all reasonable efforts
necessary to cure such force majeure circumstances.

 

19.5       Severability.
If any one or more of the provisions contained in this Agreement is held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby, unless
the absence of the invalidated provision(s) adversely affects the substantive rights of the Parties. The Parties shall in such an instance
use their best efforts to replace the invalid, illegal or unenforceable provision(s) with valid, legal and enforceable provision(s) which,
insofar as practical, implement the purposes of this Agreement.

 

19.6       Notices.
All notices which are required or permitted hereunder shall be in writing and sufficient if delivered personally, sent by facsimile
(and promptly confirmed by personal delivery, registered or certified mail or overnight courier), sent by nationally-recognised overnight
courier or sent by registered or certified mail, postage prepaid, return receipt requested, addressed as follows:

 

	If
    to Licensor, to:	Carol
    Thomson, CEO
	 	BDD
    Pharma Limited
	 	The
    address set out above 
	 	 
	If
    to Licensee, to:	Cingulate
    Therapeutics, LLC.
	 	6
    South Street, Suite 201
	 	Morristown,
    New Jersey 07960 USA
	 	Attn:
    Craig S. Gilgallon
	 	Facsimile
    No.:  +1 973-605-8020
	 	 
	 	with
    a copy to:
	 	Lowenstein
    Sandler, LLP
	 	 
	 	65
    Livingston Avenue
	 	Roseland,
    New Jersey  07068 USA
	 	Attn:Michael
    J. Lerner 
	 	Facsimile
    No.:  +1 973-597-6395

 

or
to such other address(es) as the Party to whom notice is to be given may have furnished to the other Party in writing in accordance herewith.
Any such notice shall be deemed to have been given: (a) when delivered, if personally delivered or sent by facsimile on a business day
(or if delivered or sent on a non-business day, then on the next business day); (b) on the business day after dispatch, if sent by nationally-recognized
overnight courier; or (c) on the third (3rd) business day following the date of mailing, if sent by mail.

 

    	44	 	 

     

    

 

19.7       Interpretation.
The headings of clauses contained in this Agreement preceding the text of the clauses, subclauses and paragraphs hereof are inserted
solely for convenience and ease of reference only and shall not constitute any part of this Agreement, or have any effect on its interpretation
or construction. All references in this Agreement to the singular shall include the plural where applicable. The term “including”
or “includes” as used in this Agreement means including, without limiting the generality of any description preceding such
term, and the word “or” has the inclusive meaning represented by the phrase “and/or.” Unless otherwise specified,
references in this Agreement to any clause shall include all subclauses and paragraphs in such clause and references in this Agreement
to any subclause shall include all paragraphs in such subclause. All references to days in this Agreement shall mean calendar days, unless
otherwise specified. Ambiguities and uncertainties in this Agreement, if any, shall not be interpreted against either Party, irrespective
of which Party may be deemed to have caused the ambiguity or uncertainty to exist. This Agreement has been prepared in the English language,
and the English language shall control its interpretation. In addition, all notices required or permitted to be given hereunder, and
all written, electronic, oral or other communications between the Parties regarding this Agreement shall be in the English language.

 

19.8       Relationship
between the Parties. The Parties’ relationship, as established by this Agreement, is solely that of independent contractors.
This Agreement does not create any partnership, joint venture or similar business relationship between the Parties. Neither Party is
a legal representative of the other Party, and neither Party may assume or create any obligation, representation, warranty or guarantee,
express or implied, on behalf of the other Party for any purpose whatsoever.

 

19.9       Cumulative
Remedies. No remedy referred to in this Agreement is intended to be exclusive, but each shall be cumulative and in addition to any
other remedy referred to in this Agreement or otherwise available under law.

 

19.10       No
Third Party Rights. The provisions of this Agreement are for the exclusive benefit of the Parties, and no other person or entity
shall have any right or claim against any Party by reason of these provisions or be entitled to enforce any of these provisions against
any Party. To avoid any doubt the sole obligation of DDI is under Clause 12.3 and DDI shall not be bound by any other provision of this
Agreement nor shall Licensee be entitled to enforce against DDI any other provision of this Agreement. DDI shall benefit from the limitations
of liability under this Agreement, which apply to the Licensor, including those set out in Clauses 12.7 and 12.8 of this Agreement.

 

    	45	 	 

     

    

 

19.11       Further
Assurances. Each Party agrees to do and perform all such further reasonable acts and things and will execute and deliver such other
agreements, certificates, instruments and documents reasonably necessary or that the other Party may deem advisable, acting reasonably
and in good faith, in order to carry out the intent and accomplish the purposes of this Agreement and to evidence, perfect or otherwise
confirm its rights hereunder.

 

19.12       Costs.
Except as specifically provided in this Agreement, each Party shall be solely responsible for all costs, fees and other expenses
incurred in connection with this Agreement.

 

19.13       Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original document, and all of which, together with
this writing, shall be deemed one instrument. This Agreement may be executed by facsimile or PDF signatures, which signatures shall have
the same force and effect as original signatures.

 

19.14       Inadequacy
of Damages. Without prejudice to any other rights or remedies that a Party may have, each Party acknowledges and agrees that damages
alone would not be an adequate remedy for any breach of the terms of this Agreement by the other Party. Accordingly, each Party shall
be entitled, without proof of special damages, to the remedies of injunction, specific performance or other equitable relief for any
threatened or actual breach of the terms of this Agreement.

 

		20.	Dispute
                                            resolution procedure

 

20.1       If
a dispute arises out of or in connection with this Agreement or the performance, validity or enforceability of it (“Dispute”)
then, except as expressly provided in this Agreement, the Parties shall follow the dispute resolution procedure set out in this Clause
20.1:

 

20.1.1       either
Party shall give to the other written notice of the Dispute, setting out its nature and full particulars (“Dispute Notice”),
together with relevant supporting documents. On service of the Dispute Notice the CEO of the Licensor and CEO of the Licensee shall attempt
in good faith to resolve the Dispute;

 

20.1.2       if
such persons are for any reason unable to resolve the Dispute within thirty (30) days of it being referred to them, either Party may
take such further steps as it considers appropriate to resolve the Dispute, including the filing of an action in a court of competent
jurisdiction.

 

20.1.3       Nothing
contained in this Agreement shall deny either Party the right to seek injunctive or other equitable relief from a court of competent
jurisdiction in the context of a bona fide emergency or prospective irreparable harm, and such an action may be filed and maintained
notwithstanding any ongoing discussions between the Parties. In addition, either Party may bring an action in any court of competent
jurisdiction to resolve disputes pertaining to the validity, construction, scope, enforceability, infringement or other violations of
Intellectual Property Rights.

 

    	46	 	 

     

    

 

	SUBSCRIBED
                           for and on behalf of

        BDD
        PHARMA LIMITED by:

     

    Carol
    Thomson

    ......................................(print
    name)

    CEO

    ..........................................(position)

     

    /s/
    Carol Thomson

    ..............................................(sign)

    August
    8, 2018

    ...............................................(date)

     

     
	 

     
	SUBSCRIBED
                           for and on behalf of

        CINGULATE
        THERAPEUTICS LLC by:

     

    Shane
    J. Schaffer

    .......................................(print
    name)

    CEO

    ............................................(position)

     

    /s/
    Shane J. Schaffer

    ................................................(sign)

    August
    8, 2018

    ................................................(date)

     

 

	solely
                           for the purposes of Clause 12.3,

                                                          SUBSCRIBED
                                            for and on behalf of

                                                          DRUG
                                            DELIVERY INTERNATIONAL

                                                          LIMITED
                                            by:

     

    Carol
    Thomson

    ......................................(print
    name)

    Chief
    Operating Officer

    ..........................................(position)

     

    /s/
    Carol Thomson

    ..............................................(sign)

    August
    8, 2018

    ...............................................(date)

     

    
	 

     
	 

 

    	47	 	 

     

    

 

Schedule

 

Part
1

 

Licensor
Patents

 

Delayed
release formulations as described in filings of patent application families 

 

	Family
    / PCT application	 	Title	 	Applicant	 	Country
    Scope	 	US
    patent	 	EP
    	 	JP
	WO2011107750	 	Delayed

        Prolonged
        Drug Delivery
	 	DRUG DELIVERY INTERNAT LTD	 	US, EP, JP	 	Granted

    US9283192
    
	 	Granted

    EP2542226B1

    Validated
    in

    DE,
    FR, GB

    and
    CH
	 	Granted

    JP6162196B2

	WO2011107749	 	Pulsatile Drug Release	 	DRUG DELIVERY INTERNAT LTD	 	US, EP, JP	 	Granted

    US9474719
	 	Granted

    EP2542228B1
    

    Validated
    in

    DE,
    FR, GB,

    CH,
    IT, ES,

    GR,
    TR, BE,

    NL,
    AT, PT,

    SE,
    PL, DK,

    CZ,
    NO, IR,

    FI,
    HU, RO,

    SK,
    BG, SI
	 	Granted

    JP6165824B2

	WO2011107755	 	Immediate

        Delayed

        Release
	 	DRUG DELIVERY INTERNAT LTD	 	US, EP, JP	 	pending	 	Granted

    EP2542227B1
    

    Validated
    in

    DE,
    FR, GB,

    CH,
    IT, ES,

    GR,
    TR, BE,

    NL,
    AT, PT,

    SE,
    PL, DK,

    CZ,
    NO, IR,

    FI,
    HU, RO,

    SK,
    BG, SI
	 	Granted

    JP6162197B2

	WO2016075496 	 	Pharmaceutical

        Processing

        (methods
        for

        production
        of

        OralogiKTM)
        
	 	DRUG DELIVERY INTERNAT LTD 	 	US, EP, AU, CA, JP, CN, KR, RU, EG, SA, BR, MX	 	pending	 	EP3217965

    pending
	 	pending
	WO2016075495 	 	Compositions

        (Improvements

        on the
        OralogiKTM

        technology)
	 	DRUG DELIVERY INTERNAT LTD 	 	US, EP, AU, CA, JP, CN, KR, RU, EG, SA, BR, MX	 	pending	 	EP3217964

    pending
	 	pending
	WO2016075497	 	Tablet

        (OralogiKTM

        sustained

        release

        technology)
	 	DRUG DELIVERY INTERNAT LTD 	 	US, EP, AU, CA, JP, CN, KR, RU, EG, SA, BR, MX	 	pending	 	EP3220896

    pending
	 	pending

 

    	48	 	 

     

    

 

Part
2

 

Licensor
Know-How

 

Licensed
Know-How includes (without limitation):

 

	●	The
                                            design and manufacture of wax based controlled and/or delayed release formulations;

 

	●	The
                                            control of in-vitro and in-vitro erosion of wax based controlled and/or delayed release formulations;

 

	●	The
                                            control of lag phase from such formulations by varying the nature and ratio of excipients;

 

	●	The
                                            control of lag phase from such formulations by varying tablet size and thickness;

 

	●	The
                                            control of lag phase from such formulations through use of different manufacturing techniques
                                            and processes;

 

	●	Biopharmaceutics
                                            and the performance, behaviour and gastrointestinal transit of controlled release oral products
                                            in man and

 

	●	The
                                            biphasic or triphasic release of the same or different drugs from a single tablet

 

    	49	 	 

     

    

 

Part
3

 

Licensee
Patents

 

	Title	 	Applicant	 	Country
    Scope	 	US
    patent	 	International
    patent
	TRIPULSE

        RELEASE

        STIMULANT
        FORMULATIONS
	 	Cingulate

        Therapeutics,
        LLC
	 	US, EU,
        JP, CA, AUS,

        SK, ISRL,
        BRZ, MX, IND, CHINA
	 	US App. No. 62/121,537	 	PCT/US16/19877

 

    	50Exhibit
10.3

 

Certain
identified information has been excluded from this exhibit because it is both not material and is the type that the registrant treats
as private or confidential. Information that was omitted has been noted in this document with a placeholder identified by the mark “[***]”

 

MASTER
SERVICES AGREEMENT

 

This
Master Services Agreement (“Agreement”), effective as of the last signature date of this agreement (the “Effective
Date”), is by and between Pharmaceutical Manufacturing Research Services, Inc., having its principal place of business at 202 Precision
Road, Horsham, PA 19044 (“PMRS”) and Cingulate Therapeutics, LLC having its principal place of business at 1901 W. 47th Place,
Kansas City, KS 66205 (“CTx”).

 

RECITALS

 

CTx
and PMRS wish to establish the terms and conditions that will apply to the performance of certain services by PMRS.

 

AGREEMENT

 

In
consideration of the foregoing and of the mutual promises contained in this Agreement, the parties agree as follows:

 

ARTICLE
1: SCOPE OF THE AGREEMENT AND STATEMENT OF WORK

 

	1.1	During
                                            the Term (as defined below) of this Agreement, the terms and conditions herein contained
                                            shall govern the services to be provided by PMRS to CTx under any subsequent individual agreement
                                            mutually agreed upon by the parties in writing for specific services to be rendered, each
                                            such written agreement hereinafter referred to as a “Project Contract”. This
                                            Agreement allows the parties to contract multiple projects through the issuance of different
                                            Project Contracts (template attached hereto) without having to renegotiate the basic terms
                                            and conditions contained herein. Any modification of the terms and conditions in this Agreement
                                            within a Project Contract will apply only to that Project Contract in which the modification
                                            is set forth.

 

	1.2	The
                                            specific details of the services to be provided by PMRS to CTx under the Job Specific Quotes
                                            or Project Contracts, hereinafter collectively referred to as “Services”, including
                                            but not limited to, timelines and the amounts to be paid by CTx to PMRS for such Services,
                                            shall be negotiated in good faith and agreed upon in the Project Contracts entered into between
                                            the parties from time-to-time and on a product-to-product basis before commencement of any
                                            Services with respect to that particular product. For the avoidance of doubt, the term, “product”,
                                            as used throughout this Agreement means the product specified in the applicable Project Contract.
                                            PMRS shall conduct the Services, as CTx may specify in writing from time-to-time, in accordance
                                            with the terms of this Agreement, the applicable product specifications, the applicable Project
                                            Contract, current Good Manufacturing Practices (“cGMP”, as defined more fully
                                            below), the ICH guidelines and all applicable laws, rules, guidance, and regulations of the
                                            local country where the Services are conducted and with the standard of care customary for
                                            the pharmaceutical industry. PMRS shall conduct the Services in accordance with its policies
                                            and its standard operating procedures (“SOPs”) which it represents and warrants
                                            are not inconsistent with the terms of this Agreement. PMRS shall assign a sufficient number
                                            of qualified personnel to complete the Services in accordance with the terms of this Agreement
                                            and any applicable Project Contract.

 

	1.3	If
                                            agreed to by the parties in a Project Contract, PMRS shall undertake analytical technology
                                            and method transfer and process validation campaigns.

 

Confidential
– This document contains proprietary information and may not be disclosed without prior approval.

 

202
Precision Road • Horsham, PA 19044 • Phone (267) 960-3300

 

    	 

     

    

  

	1.4	PMRS
                                            shall provide written updates as identified in the project contract, if requested by CTx,
                                            participate in weekly teleconferences with CTx’ key project team members.

 

	1.5	If
                                            the parties agree to have PMRS undertake a process validation campaign, then PMRS has to
                                            generate a process validation protocol prior to commencing such validation services and must
                                            obtain CTx’ written approval of such protocol prior to any use thereof.

 

	1.6	PMRS
                                            must share any and all process validation reports with CTx within 30 days of completion and
                                            PMRS must provide CTx with copies of all executed batch records, TSE/ BSE statements, certificates
                                            of analysis and certificates for materials manufacture.

 

	1.7	PMRS
                                            will respond in a timely manner to all CTx requests for data or information relating to,
                                            or arising out of CTx regulatory submissions.

 

	1.8	Unless
                                            otherwise agreed by the parties in a Project Contract, CTx shall supply sufficient quantities
                                            of the raw material to manufacture the product.

 

	1.9	CTx
                                            has to agree in writing to the specifications for the product before manufacturing is initiated
                                            by PMRS and CTx must provide all validated analytical methods to support process validation
                                            and all material technical information, in each case, that it has in its possession that
                                            directly relates to the manufacturing of its product.

 

	1.10	CTx
                                            shall provide all material data in its possession that directly relates to the manufacture
                                            of its product to PMRS and CTx shall provide all technical assistance that is mutually agreed
                                            upon by the parties.

 

	1.11	PMRS
                                            shall perform all formal release testing for the batches of product manufactured by PMRS
                                            for CTx.

 

ARTICLE
2: COVENANTS, REPRESENTATIONS AND WARRANTIES

 

	2.1	PMRS
                                            will neither appoint any sub agency or subcontractor nor assign any rights or liabilities
                                            of this Agreement to any third party without the prior written consent of CTx. PMRS shall
                                            ensure that each of its Affiliates and third party sub agencies and subcontractors comply
                                            with all obligations imposed on PMRS under this Agreement. Any breach of any such obligations
                                            by any such Affiliate, sub agency or subcontractor shall be deemed a breach by PMRS of its
                                            obligations under this Agreement, and PMRS shall be responsible and liable for any breach
                                            of any such obligations by any such Affiliate, sub agency or subcontractor.

 

	2.2	All
                                            the employees/officers working under this Agreement for PMRS shall be the employees/officers
                                            of PMRS and CTx shall have no liability towards or other obligations to them.

 

	2.3	PMRS
                                            shall be responsible for all acts and omissions on the part of its employees and officers.
                                            Any compensation to be paid to any person for any damage caused by any such acts and/or omissions
                                            on the part of any of PMRS’s employees and officers shall be borne by PMRS.

 

	2.4	PMRS
                                            shall be responsible for all of its employees’ benefits, including but not limited
                                            to, injury, accident, compensation payments and benefits.

 

    	 

     

    

 

	2.5	Each
                                            party represents and warrants that (i) it has the full right and authority to enter into
                                            this Agreement and that it is not aware of any impediment that would inhibit its ability
                                            to perform its obligations under this Agreement; and (ii) it is a corporation duly organized,
                                            validly existing and in good standing under the laws of its incorporating jurisdiction, and
                                            it has all requisite power and authority to enter into this Agreement.

 

	2.6	PMRS
                                            represents and warrants to CTx that the product supplied under this Agreement shall (i) be
                                            manufactured in compliance with cGMP; (ii) meet all of the specifications for the product
                                            as mutually agreed upon by the parties in writing, including, without limitation, any specifications
                                            related to packaging and shipping when delivered as defined in the project contract; (iii)
                                            be delivered free of all liens and encumbrances; and (iv) not be adulterated or misbranded
                                            within the meaning of the US Federal Food, Drug and Cosmetic Act.

 

	2.7	PMRS
                                            further represents and warrants to CTx that PMRS (i) has and shall maintain at all relevant
                                            times the appropriate registrations, licenses and any other governmental authorizations required
                                            to enable it to lawfully and properly perform the Services under this Agreement; (ii) shall
                                            perform all of its obligations under this Agreement in a professional and workmanlike manner
                                            and in accordance with generally accepted standards of the pharmaceutical manufacturing industry,
                                            this Agreement, the applicable Project Contract, any quality agreement entered into by and
                                            between the parties, and Company’s SOPs to the extent not inconsistent with this Agreement,
                                            the applicable Project Contract or such quality agreement, cGMPs and other applicable laws
                                            and regulations and CTx’ specifications.

 

	2.8	Each
                                            party also represents and warrants that (i) none of the Services or any part of this Agreement
                                            is or will be inconsistent with any obligation such party may have to others and (ii) none
                                            of its officers, directors, employees or Affiliates, sub agencies or subcontractors performing
                                            Services hereunder are listed by any U.S. federal agency as being suspended, debarred, excluded
                                            or otherwise ineligible to participate in federal procurement or non-procurement programs,
                                            and PMRS is not aware of any reason for why any of its officers, directors, employees, Affiliates,
                                            sub agencies or subcontractors performing Services hereunder might be listed by any U.S.
                                            federal agency as being suspended, debarred, excluded or otherwise ineligible to participate
                                            in federal procurement or non-procurement programs. PMRS will immediately inform CTx if any
                                            of its officers, directors, employees, Affiliates, sub agencies or subcontractors performing
                                            Services hereunder becomes listed by any U.S. Federal agency as being suspended, debarred,
                                            excluded or otherwise ineligible to participate in federal procurement or non-procurement
                                            programs or PMRS becomes aware of a reason for why one of its officers, directors, employees,
                                            Affiliates, sub agencies or subcontractors performing Services under this Agreement might
                                            be listed by any U.S. federal agency as being suspended, debarred, excluded or otherwise
                                            ineligible to participate in federal procurement or non-procurement programs.

 

	2.9	For
                                            the purposes of this Agreement, “cGMP” means current practices with respect to
                                            the manufacturing, testing, packaging, storage and/or shipment of product required by (as
                                            amended from time to time) the provisions of the US. Code of Federal Regulations, Title 21,
                                            Parts 210 and 211 and all applicable rules, regulations, orders and guidance published thereunder.

 

ARTICLE
3: TERM AND TERMINATION

 

	3.1	The
                                            term of this Agreement shall commence on the date of execution and shall be valid for a period
                                            of five (5) years from the Effective Date, subject to earlier termination in accordance with
                                            Section 3.2 herein (the “Term”). The Term shall automatically be extended to
                                            conform to the term of any project contract, and may be extended or amended by express mutual
                                            consent of the parties conveyed in writing.

 

    	 

     

    

 

	3.2	Without
                                            prejudicing any other rights or remedies available at law or in equity, either party shall
                                            be entitled to terminate this Agreement (and any and all outstanding Project Contracts) by
                                            providing written notice to the other party upon the occurrence of any of the following events:

 

		i.	If
                                            the other party commits a breach of any of the terms or conditions of this Agreement and
                                            fails to remedy such breach within thirty (30) days from the date of receipt of the written
                                            notice calling upon it to do so;

 

		ii.	If
                                            the other party goes into liquidation, voluntary or otherwise;

 

		iii.	If
                                            the other party makes any assignment for the benefit
                                            of creditors, or a receiver, trustee in bankruptcy or similar officer is appointed to take
                                            charge of any or all of the other party’s property, or the other party seeks protection
                                            under any bankruptcy, receivership, trust deed, creditors arrangement, composition or comparable
                                            proceeding or such a proceeding is instituted against
                                            the other party and is not dismissed within ninety (90) days.

 

	3.3	Notwithstanding
                                            anything contained in this Agreement and without prejudice to the rights and remedies available,
                                            CTx shall be entitled to terminate this Agreement (and any and all outstanding Project Contracts),
                                            at any time, for any or no reason, upon at least one hundred and eighty (180) days prior
                                            written notice to PMRS. In addition, notwithstanding anything contained in this Agreement,
                                            CTx may terminate at any time, for any or no reason, upon at least thirty (30) days prior
                                            written notice one or more outstanding Project Contracts.

 

	3.4	The
                                            termination of this Agreement shall be without prejudice to any claim or right of action
                                            previously accrued or acquired by any of the parties. Each party understands that the rights
                                            of termination hereunder are absolute and that it has no right to a continued relationship
                                            with the other after termination, except as expressly stated in this Agreement. Neither party
                                            shall incur any liability whatsoever for any damage, loss or expense of any kind suffered
                                            or incurred by the other (or for any compensation to the other) arising from or incident
                                            to any termination of this Agreement for any reason which complies with the terms of this
                                            Agreement whether or not such party is aware of any such damage, loss or expense.

 

	3.5	In
                                            the event of termination by CTx of this Agreement for any reason not attributable to any
                                            fault on the part of PMRS, CTx shall pay for all the costs incurred in accordance with this
                                            Agreement up to the date of termination, including the cost of un-cancellable orders and
                                            expenses committed by PMRS in accordance with this Agreement and any and all amounts due
                                            for the Services completed in accordance with this Agreement prior to the termination.

 

	3.6	Following
                                            any termination or expiration of this Agreement, PMRS will promptly provide or return to
                                            CTx any and all work product, including final product, data, records, reports, and works-in-progress
                                            collected, made, developed or generated under this Agreement and any and all CTx IP (as defined
                                            below) except for 1 copy for their files. In addition, PMRS will promptly provide or return
                                            to CTx all raw materials and supplies purchased by CTx or provided by or on behalf of CTx,
                                            and if requested by CTx, any other Proprietary Information (as defined below) of CTx.

 

    	 

     

    

 

	3.7	Any
                                            and all remedies for breach of this Agreement and Articles 2, 4, 7-11, and 13-18 and Sections
                                            3.4-3.7, and 6.6 will survive any termination or expiration of this Agreement.

 

ARTICLE
4: CONFIDENTIALITY

 

	4.1	During
                                            the performance of a Project Contract and otherwise during the Term of this Agreement, PMRS
                                            may receive from CTx any non-public, confidential or trade secret information, that relates
                                            to the actual or anticipated business and/or products, research or development of CTx or
                                            its Affiliates, or to CTx’s or its Affiliates’ technical and non-technical data,
                                            trade secrets, or know-how, including, without limitation, information concerning CTx’s
                                            or its Affiliates’ present and future business, marketing plans, regulatory submissions,
                                            product lines, product plans, data, including, without limitation, clinical research results,
                                            toxicity and hazard data, assay standards, methods and related information, testing and research
                                            techniques, inventions, materials, processes, practices, research, customer lists and customers,
                                            developments, ideas, processes, formulas, technology, finances, manufacturing processes and
                                            techniques, formulae, chemical synthesis routes, process schematics, operational details,
                                            historical production data, patent applications, technical specifications, and other business
                                            information, disclosed by CTx or its Affiliates, either directly or indirectly, in writing,
                                            orally or by drawings or inspection of premises, parts, equipment, or other property of CTx
                                            or its Affiliates (collectively, “Confidential Information”). In addition, all
                                            of the CTx Inventions (as defined below) resulting from the performance of the Services shall
                                            be deemed Confidential Information of CTx under this Agreement. PMRS agrees to hold in confidence
                                            all Confidential Information and, except as permitted under this Agreement, not to make use
                                            of any Confidential Information or to disclose or make any Confidential Information available
                                            to any third parties without CTx’s written permission. PMRS has had or will have all
                                            of its directors, officers and employees who have access to Confidential Information, and
                                            any other third party authorized by CTx to receive Confidential Information from PMRS, such
                                            as its consultants, agents and subcontractors, sign an agreement with the PMRS which contains
                                            confidentiality provisions substantially similar to those contained in this Article 4 prior
                                            to having access to Confidential Information or undertaking the Services. PMRS shall promptly
                                            notify CTx of any impermissible or suspected use or disclosure of any Confidential Information.
                                            Confidential Information of either party shall only be deemed “Confidential Information”
                                            if (1) it is marked “Confidential”, in the event such confidential information
                                            is in a written, electronic or other form which permits markings as such, or (2) it is confirmed
                                            as confidential information by the disclosing party in writing within a 60 day period after
                                            the initial disclosure; provided that the foregoing prerequisite shall not apply to CTx Inventions
                                            or any information which would, based on the nature of the information disclosed or the manner
                                            of its disclosure, be understood by a reasonable person to be the confidential or proprietary
                                            information of the disclosing party. All the terms of this clause apply to any non-public,
                                            confidential or trade secret information that CTx may receive from PMRS, that relates to
                                            the actual or anticipated business and/or products.

 

	4.2	Notwithstanding
                                            the foregoing, PMRS shall not have liability to CTx for any Confidential Information that
                                            PMRS can prove: (i) was in the public domain at the time it was disclosed by CTx to PMRS
                                            or has entered the public domain through no fault of PMRS or its personnel; (ii) was known
                                            to PMRS, without restriction, at the time of disclosure by CTx to PMRS, as demonstrated by
                                            files in existence at the time of disclosure; (iii) is disclosed with the prior written approval
                                            of CTx; (iv) was independently developed by PMRS without any use of the Confidential Information
                                            of CTx; or (v) becomes known to PMRS, without restriction, from a source other than CTx without
                                            breach of this Agreement by PMRS and otherwise not in violation of the disclosing party’s
                                            rights.

 

    	 

     

    

 

	4.3	PMRS
                                            acknowledges that, in performing the Services, it may access and collect information from
                                            patients concerning their health, health care treatment and payment (including insurance
                                            information) (collectively, “Patient Information”) and that some of this Patient
                                            Information may contain Protected Health Information, as that term is defined under the Health
                                            Insurance Portability and Accountability Act of 1996 and the regulations promulgated thereunder.
                                            PMRS agrees to hold such Patient Information in strict confidence and to take all necessary
                                            steps to comply with the restrictions in any subject authorization regarding the use, disclosure
                                            and confidentiality of Patient Information as required under law. PMRS shall not provide
                                            Patient Information to CTx, or any third party, except as may be required by, or otherwise
                                            allowed under, the law. PMRS shall not use Patient Information for any other purpose than
                                            to perform its obligations under this Agreement. Company will have binding agreements with
                                            all contractors and other third-parties that access Patient Information on its behalf obligating
                                            such third parties (i) to maintain the confidentiality of all Patient Information to which
                                            it may have access; and (ii) to use Patient Information solely as permitted by the subject’s
                                            authorization and informed consent.

 

	4.4	PMRS’s
                                            affirmative obligations under this Article 4 will survive for a period commencing on the
                                            Effective Date and terminating ten (10) years from the date of expiration or termination
                                            of this Agreement.

 

ARTICLE
5: MILESTONE PAYMENTS

 

	5.1	CTx
                                            will pay PMRS for the Services performed in accordance with this Agreement and the Project
                                            Contracts as agreed upon by the parties in writing in the applicable Project Contracts. PMRS
                                            may issue invoices for such amounts in accordance with the applicable payment schedule set
                                            out in the applicable Project Contract.

 

	5.2	Each
                                            undisputed PMRS invoice will be due and payable within 30 days after its receipt by CTx.

 

	5.3	If
                                            any portion of an invoice is disputed, CTx will notify PMRS of such dispute within such 30
                                            day period, and CTx will act in good faith in cooperating with PMRS to reconcile the disputed
                                            amount as soon as practicable.

 

ARTICLE
6: AUDIT, REGULATORY COMMUNICATIONS AND RECORD KEEPING

 

	6.1	PMRS
                                            shall immediately, but in any event within two (2) business days following its receipt thereof,
                                            notify CTx and/or provide CTx with copies of any inquiries, correspondence or communications
                                            to or from any governmental or regulatory authority relating to the Services performed under
                                            this Agreement.

 

	6.2	CTx
                                            shall have the opportunity to review and comment on any responses that may be required in
                                            connection with any such inquiries, correspondence or communications, and PMRS will consider
                                            any and all such responses and comments reasonably and in good faith. CTx also has the right
                                            to be present during an inspection of PMRS by any governmental or regulatory authority that
                                            relates to CTx’ product.

 

	6.3	PMRS
                                            shall promptly notify CTx in writing of any investigations that adversely affect the safety,
                                            efficacy and quality of the product manufactured pursuant to this Agreement in a manner which
                                            might result in the recall or seizure of the product. PMRS shall promptly notify CTx in writing
                                            of any and all questions or complaints it receives from CTx’ customers.

 

    	 

     

    

 

	6.4	CTx shall have the right
  to audit the manufacturing facility usedby PMRS to perform the Services under this Agreement (the “Manufacturing Facility”)for
  a maximum of two (2) business days per audit, upon reasonable prior notice and during normal business hours, to conduct reasonable
  in-depth quality assurance audits including, butnot limited to, quality, safety and environmental audits, of the Manufacturing
  Facility.

 

	6.5	With
                                            the exception of “for-cause” audits, CTx is limited to conducting one quality
                                            assurance audit per year. If, however, PMRS is found to be in breach of this Agreement during
                                            an audit, then CTx may conduct a second quality assurance audit of the Manufacturing Facility
                                            at no additional cost during the same calendar year. Observations and conclusions of CTx’s
                                            audits will be issued to PMRS. PMRS shall provide a written response that, among other things,
                                            addresses any and all issues described in such observations and conclusions, within thirty
                                            (30) days of receipt of such observations and conclusions. The parties will discuss such
                                            response and promptly agree on corrective action to be implemented.

 

	6.6	PMRS
                                            shall keep records of the manufacture, testing, storage, packaging and shipping of CTx’
                                            product and retain samples of such products as are necessary to comply with manufacturing
                                            regulatory requirements applicable to PMRS and/or CTx, as well as to assist with resolving
                                            product complaints and other similar investigations. Copies of such records and samples shall
                                            be retained for a period of one (1) year following the date of product expiry, or longer
                                            if required by law, at which time CTx will be contacted in writing concerning the delivery
                                            or destruction of such documents and/or products. Such documents and/or products shall not
                                            be destroyed without the prior written consent of CTx.

 

	6.7	Notwithstanding
                                            anything to the contrary in this Agreement, PMRS will respond promptly to any and all reasonable
                                            requests from CTx for additional information and/or materials. In addition, PMRS shall cooperate
                                            as reasonably required to allow CTx to determine the cause of and resolve any customer questions
                                            and/or complaints. This assistance will include follow-up investigations. Where applicable
                                            investigational work and additional testing outside the scope of the original job quote will
                                            get handled via a separate change order.

 

ARTICLE
7: INDEMNITY

 

	7.1	PMRS
                                            shall indemnify, defend and hold harmless CTx, its Affiliates and its and their respective
                                            officers, directors, employees and agents (collectively, “CTx Indemnitees”) from
                                            any and all third-party actions, causes of action, costs (including reasonable legal fees),
                                            liabilities, losses, damages and claims (collectively, “Losses”) to the extent
                                            relating to or arising out of (i) any breach by PMRS of any of its obligations or warranties
                                            under this Agreement or (ii) any negligence, gross negligence or willful misconduct by PMRS,
                                            its Affiliates or its or their respective officers, directors, employees and agents (collectively,
                                            “PMRS Indemnitees”) in the performance of PMRS’s obligations under this
                                            Agreement.

 

	7.2	CTx
                                            shall indemnify, defend and hold harmless the PMRS Indemnitees from any and all Losses to
                                            the extent relating to or arising out of (i) any breach by CTx of any of its obligations
                                            or warranties under this Agreement or (ii) any negligence, gross negligence or willful misconduct
                                            by CTx in the performance of its obligations under this Agreement or (iii) a claim that the
                                            manufacture of the product by PMRS in accordance with this Agreement infringes a patent registered
                                            in the United States for the product, or any other jurisdiction, or (iv) the manufacture,
                                            use, marketing, sale or distribution by CTx (or any other affiliate, assignee, contractor,
                                            or licensee thereof) of the product, unless, in each case, such claim is subject to PMRS’s
                                            indemnification obligations pursuant to Article 7.1 or is based on any PMRS Intellectual
                                            Property (as defined below).

 

    	 

     

    

 

	7.3	The
                                            indemnifying party’s obligations hereunder are conditioned on (i) the party seeking
                                            indemnification providing prompt written notice thereof and reasonable cooperation, information,
                                            and assistance in connection therewith and (ii) the indemnifying party having sole control
                                            and authority to defend, settle or compromise such claim. The indemnifying party shall not
                                            be responsible for any settlement it does not approve in writing.

 

ARTICLE
8: LIMITATION OF LIABILITY

 

	8.1	Except
                                            in connection with any breaches of confidentiality, amounts owed to third parties in connection
                                            with a party’s indemnification obligation under this Agreement and a party’s
                                            gross negligence or willful misconduct, under no circumstances whatsoever will either party
                                            be liable to the other Party, or to any third party claiming under or through such party,
                                            in contract, tort, negligence, breach of statutory duty or otherwise for (i) any loss of
                                            profits, of anticipated savings, of business or goodwill or (ii) any other liability, damage,
                                            cost or expense of any kind incurred by the other party of an indirect or consequential nature,
                                            regardless of any notice of the possibility of the damages.

 

ARTICLE
9: INTELLECTUAL PROPERTY OWNERSHIP

 

	9.1	CTx
                                            shall retain all rights, title and interests (including without limitation, any and all Intellectual
                                            Property (as defined below) rights worldwide) and Trade Secrets (as defined below) in and
                                            to any and all analytical methods, certified reference standards, impurity markers, manufacturing
                                            storage, packaging processes and procedures, specifications, batch records and control documents,
                                            raw materials and other materials, data and information provided by or on behalf of CTx to
                                            PMRS in connection with this Agreement, including, without limitation, and all improvements
                                            and other modifications thereto (collectively, the “CTx IP”). PMRS may only use
                                            CTx IP as needed to perform Services under this Agreement. All CTx IP is deemed to be the
                                            Proprietary Information of CTx.

 

	 	PMRS is, and at all times
  remains, the sole and exclusive owner of PMRS Intellectual Property. Except as otherwise provided in Article 9.2 of this Agreement,
  no right, license or ownership interest under, in or to PMRS Intellectual Property is granted to CTx. The term PMRS Intellectual Property
  shall mean any and all intellectual property, including but not limited to patents, patent applications, trade secrets, know-how, or
  other proprietary techniques, inventions, process improvements, protocols or methods, including but not limited to the manufacture
  of pharmaceuticals, owned, developed, and/or controlled by PMRS during the term of this Agreement, but excludes CTx Inventions (as
  defined below).

 

	9.2	All
                                            Inventions (defined herein below), including any and all Intellectual Property (as defined
                                            herein below) rights and Trade Secrets (as defined below) therein conceived, generated, developed,
                                            derived, collected or reduced to practice by PMRS in the course of performing services under
                                            this Agreement, to the extent it is specifically related to the development, manufacture,
                                            testing, storage packaging, use and/or sale of any CTx product and/or contains CTx’s
                                            Confidential Information (as defined above) (collectively, “CTx Inventions”),
                                            shall be the exclusive property of CTx. PMRS shall give CTx written notice, as promptly as
                                            practicable, of all such Inventions, and all such Inventions are deemed to be the Proprietary
                                            Information of CTx.

 

    	 

     

    

 

	9.3	PMRS
                                            hereby makes, and agrees to make, any and all assignments necessary to effect, exclusively
                                            and throughout the world, the ownership by CTx of Inventions under this Article 9.

 

	9.4	PMRS
                                            shall, and shall cause its employees and contractors to, fully cooperate with, and sign any
                                            documents reasonably requested by CTx, to evidence, confirm, record and perfect such assignments
                                            and to obtain, maintain, enforce and/or defend any rights assigned.

 

	9.5	“Inventions”
                                            means any idea, concept, innovation, invention, improvement, development, discovery, technology,
                                            computer program, device, trade secret, work of authorship, reports, records, certificates,
                                            statements, data, formula, compound method, know-how, process, method, technique, protocol
                                            or the like, whether or not written or otherwise fixed in any form or medium, regardless
                                            of the media on which it is contained and whether or not patentable or copyrightable.

 

	9.6	“Intellectual
                                            Property” includes, without limitation, rights in patents, patent applications, formulae,
                                            trademarks, trademark applications, trade names, trade dress, trade secrets, Inventions,
                                            discoveries, improvements, modifications, work product, works-in-progress, data, records,
                                            reports, analytical methods, other methods and procedures, copyright, industrial designs,
                                            know-how and all other intellectual and industrial property rights of any sort throughout
                                            the world now known or hereafter recognized.

 

	9.7	“Trade
                                            Secrets” means a formula, practice, process, design, instrument, pattern, commercial
                                            method, or compilation of information not generally known or reasonably ascertainable by
                                            others by which CTx can obtain an economic advantage over competitors or customer.

 

	9.7	PMRS
                                            shall not use any CTx IP, CTx Trade Secrets or any CTx Inventions except to provide services
                                            or goods to CTx.

 

ARTICLE
10: FORCE MAJEURE

 

	10.1	A
                                            party shall be excused from performing its obligations under this Agreement to the extent
                                            its performance is delayed or prevented by any cause beyond such party’s reasonable
                                            control, including, but not limited to, acts of God, fire, explosion, disease, extreme weather,
                                            war, insurrection, civil strike, riots, terrorism, government action not resulting from the
                                            actions or emissions of PMRS, interruption of or delay in transportation, or power interruption
                                            from a supplier (a “Force Majeure Event”) provided the affected party gives the
                                            other party prompt written notice of the occurrence of any Force Majeure Event and the nature
                                            and the extent to which the affected party will be unable to perform its obligations under
                                            this Agreement.

 

	10.2	The
                                            affected party agrees to use commercially reasonable efforts to correct the Force Majeure
                                            Event as quickly as possible, to perform its obligations under this Agreement to the extent
                                            feasible given the Force Majeure Event, and to give the other party prompt written notice
                                            when it is again fully able to perform its obligations. Performance shall be excused only
                                            to the extent of and during the reasonable continuance of such Force Majeure Event, provided
                                            that non-affected party may terminate this Agreement upon written notice to the affected
                                            party if such Force Majeure Event continues for a period of forty-five (45) days or more.

 

ARTICLE
11: ENTIRE AGREEMENT

 

	11.1	This
                                            Agreement represents the entire understanding of the parties with respect to the subject
                                            matter of this Agreement. This Agreement supersedes all prior agreements and understandings,
                                            discussions and writings, whether written or oral, and constitutes the entire agreement between
                                            the parties with respect to the subject matter hereof. Any modifications, amendment, supplement
                                            or waiver to this Agreement must be in writing and signed by authorized representatives of
                                            both parties.

 

    	 

     

    

 

	11.2	The
                                            parties have participated jointly in the negotiation and drafting of this Agreement. In the
                                            event that an ambiguity or question of intent or interpretation arises, this Agreement shall
                                            be construed as if drafted jointly by the parties and no presumption or burden of proof shall
                                            arise favoring or disfavoring any party by virtue of the authorship of any of the provisions
                                            of this Agreement. Except where the context otherwise requires, where used, the singular
                                            shall include the plural, the plural the singular, the use of any gender shall be applicable
                                            to all genders and the word “or” is used in the inclusive sense.

 

	11.3	The headings of this Agreement are only for the convenience
  of reference.

 

ARTICLE
12: ASSIGNMENT

 

	12.1	This
                                            Agreement shall not be assigned by either party without the prior written consent of the
                                            other, to any third party, which consent shall not be unreasonably withheld, conditioned
                                            or delayed, provided either party may, without written consent of the other party but with
                                            written notice to the other party, assign, in whole or in part, its rights and obligations
                                            under this Agreement, to an Affiliate or to an unrelated third party in connection with a
                                            merger, consolidation or sale of all or substantially all of the business of such party to
                                            which this Agreement relates. Any attempted transfer in violation hereof will be void and
                                            of no effect. This Agreement will be binding upon, and inure to the benefit of, the successors
                                            and permitted assigns of the parties. For purposes of this Agreement, “Affiliate”
                                            means an entity controlling, controlled by or under common control with another entity, only
                                            for so long as such control continues to exist, where control is defined as ownership, directly
                                            or indirectly, of more than 50% of the voting rights in the entity.

 

ARTICLE
13: NO PARTNERSHIP OR AGENCY

 

	13.1	It
                                            is understood that this Agreement does not constitute PMRS as the agent or legal representative
                                            of CTx for any purpose whatsoever, and accordingly, PMRS is not authorized to assume or create
                                            any obligation or responsibility, express or implied, on behalf of or in the name of CTx.

 

    	 

     

    

 

ARTICLE
14: SEVERABILITY

 

	14.1	The
                                            invalidity or unenforceability of any term or provision of this Agreement shall not affect
                                            the validity or enforceability of any other term or provision of this Agreement. In the event
                                            that any of the provisions of this Agreement shall be held by a court or other tribunal of
                                            competent jurisdiction to be illegal, invalid or unenforceable, such provisions shall be
                                            limited or eliminated to the minimum extent necessary so that this Agreement shall otherwise
                                            remain in full force and effect.

 

ARTICLE
15: NOTICE

 

		15.1	All
                                            notices given under this Agreement shall be in writing, in English, and shall be delivered
                                            either personally or sent by mail to the parties at the addresses set forth below or to such
                                            other addresses as the parties may designate in writing and by mail in accordance with this
                                            Section.

 

	For
    Company:	 	For
    CLIENT:
	

     

    Name:
    Edwin R. Thompson

    Title:
    President

    Address:
    202 Precision Road,

    Horsham,
    PA 19044

    Telephone:
    267 960 3300

    E-mail:
    [**]
	 	

     

    Name:
    Craig S. Gilgallon, Esquire

    Title:
    General Counsel

    Address:
    6 South Street, Suite 201

    Morristown,
    New Jersey 07960

    Telephone:
    [**]

    E-mail:
    [**]

    

 

ARTICLE
16: WAIVER

 

	16.1	No
                                            waiver of any term, provision, or condition of this Agreement will be binding upon a party
                                            unless made in writing and signed by a duly authorized representative of both parties and
                                            no failure or delay in enforcing any right will be deemed a waiver.

 

ARTICLE
17: DISPUTE RESOLUTION AND GOVERNING LAW

 

	17.1	In
                                            the event of a dispute between the parties arising out of or relating to this Agreement,
                                            representatives of the parties responsible for the day-to-day operations under this Agreement
                                            (the “Operations Representatives”) will meet and work in good faith to attempt
                                            to resolve such dispute prior to initiating any action hereunder for a period of thirty (30)
                                            days from the date of written notice of such dispute from either party. If the Operations
                                            Representatives fail to reach a resolution mutually satisfactory to both parties within such
                                            time period, the dispute will be referred to members of the senior management of both parties,
                                            who will meet and work in good faith to attempt to resolve such dispute for a period of thirty
                                            (30) days after completion of the Operations Representatives’ discussions.

 

    	 

     

    

 

	17.2	In
                                            the event that any such dispute cannot be resolved thereby within the aforementioned thirty
                                            (30) day period (the last day of such thirty (30) day period being herein referred to as
                                            the “Arbitration Date”), such dispute shall be finally settled by arbitration
                                            in Philadelphia, Pennsylvania, using the English language in accordance with the Arbitration
                                            Rules and Procedures of the American Arbitration Association then in effect, by one or more
                                            commercial arbitrator(s) with substantial experience in resolving complex commercial contract
                                            disputes, who may or may not be selected from the appropriate list of AAA arbitrators. If
                                            the parties cannot agree upon the number and identity of the arbitrators within fifteen (15)
                                            days following the Arbitration Date, then a single arbitrator shall be selected on an expedited
                                            basis in accordance with the Arbitration Rules and Procedures of AAA, provided that any arbitrator
                                            so selected shall have substantial experience in the pharmaceutical industry. The arbitrator(s)
                                            shall have the authority to grant specific performance and to allocate between the parties
                                            the costs of arbitration (including service fees, arbitrator fees and all other fees related
                                            to the arbitration) in such equitable manner as the arbitrator(s) may determine. The prevailing
                                            party in the arbitration shall be entitled to receive reimbursement of its reasonable expenses
                                            (including reasonable attorneys’ fees, expert witness fees and all other expenses)
                                            incurred in connection therewith. Judgment upon the award so rendered may be entered in a
                                            court having jurisdiction or application may be made to such court for judicial acceptance
                                            of any award and an order of enforcement, as the case may be. Notwithstanding the foregoing,
                                            each party shall have the right to institute an action in a court of proper jurisdiction
                                            for preliminary injunctive relief pending a final decision by the arbitrator(s), provided
                                            that a permanent injunction and damages shall only be awarded by the arbitrator(s). In any
                                            action or proceeding to enforce rights under this Agreement, the prevailing party shall be
                                            entitled to recover costs and attorneys’ fees. For the avoidance of doubt, the validity,
                                            construction, and enforceability of this Agreement and the resolution of disputes arising
                                            out of and relating to this Agreement and any related agreements, collectively or separately,
                                            shall be governed solely by this Section 17.2.

 

	17.3	This
                                            Agreement shall be governed by the laws of the State of Pennsylvania without regard to the
                                            conflicts of law provisions thereof. The United Nations Convention on Contracts for the International
                                            Sale of Goods shall not apply to this Agreement.

 

ARTICLE
18: INSURANCE

 

	18.1	Each
                                            party shall maintain commercial general liability insurance, including blanket contractual
                                            liability insurance covering the obligations of that party under this Agreement through the
                                            term of this Agreement and for a period of three (3) years thereafter, which insurance shall
                                            afford limits of not less than (i) $[***] for each occurrence for personal injury or property
                                            damage liability; and (ii) $[***] of umbrella liability coverage with respect to product
                                            and completed operations liability. If requested each party will provide the other with a
                                            certificate of insurance evidencing the above and showing the name of the issuing insurer,
                                            the policy number, the effective date, the expiration date and the limits of liability. PMRS
                                            shall name Cingulate and Cingulate shall name PMRS as additional insured with waiver of surogation.
                                            The insurance certificate shall further provide for a minimum of 30 days’ written notice
                                            to the insured of a cancellation of, or material change in, the insurance, except 10 days
                                            written notice in the event of non-payment of the premium. If a party is unable to maintain
                                            the insurance policies required under this Agreement through no fault on the part of such
                                            party, then such party shall forthwith promptly notify the other party in writing and the
                                            parties shall in good faith negotiate appropriate amendments to the insurance provision of
                                            this Agreement in order to provide adequate assurances, provided that in no event shall such
                                            party terminate its insurance policies until such amendments to the insurance provision of
                                            this Agreement that are mutually agreed upon by the parties in writing are enacted.

 

ARTICLE
19: COUNTERPARTS

 

	19.1	This
                                            Agreement may be executed in one or more counterparts, each of which is an original, but
                                            taken together constituting one and the same instrument.

 

	19.2	Execution
                                            of a facsimile or a scanned copy shall have the same force and effect as execution of an
                                            original and a facsimile or scanned signature shall be deemed an original and valid signature.

 

    	 

     

    

 

IN
WITNESS WHEREOF, the duly authorized representatives of the parties hereto have executed and signed this Agreement as on the Effective
Date.

 

	For and on behalf
    of:	 	For and on behalf
    of 
	PMRS	 	Cingulate Therapeutics,
    LLC 
	 	 	 	 	 
	Signature:	/s/
    Ed Thompson	 	Signature:	/s/
    Shane J. Schaffer
	Name:	Ed Thompson	 	Name:	Shane J. Schaffer 
	Title:	President	 	Title:	CEO
	Date:	August 20, 2018	 	Date:	August 13, 2018

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