Document:

FORM OF INDEMNIFICATION AGREEMENT

 

EXHIBIT 10.2

HEAT BIOLOGICS, INC.

INDEMNIFICATION AGREEMENT

This Indemnification Agreement (the “Agreement”) is made as of August __, 2016, by and between Heat Biologics, Inc., a Delaware corporation (the “Company”), and [________________] (“Indemnitee”).

WHEREAS, the Company and Indemnitee recognize the substantial increase in corporate litigation in general, subjecting officers and directors to expensive litigation risks;

WHEREAS, the Company desires to attract and continue to retain the services of highly qualified individuals, such as Indemnitee, to serve as officers and directors of the Company and to indemnify its officers and directors so as to provide them with the maximum protection permitted by law;

WHEREAS, the statutory indemnification provisions of the Delaware General Corporation Law (the “DGCL”), Section 145, expressly provide that they are non­exclusive, and it is the desire of the Company to indemnify directors and officers who have entered into settlements of derivative suits or have paid judgments, fines or penalties therefor, provided they have not breached the applicable statutory standard of conduct; and

WHEREAS, in view of such considerations, the Company desires to provide, independent from the indemnification to which the Indemnitee is otherwise entitled by law and under the Company’s Certificate of Incorporation and Bylaws, indemnification to the Indemnitee and advances of expenses, all as set forth in this Agreement to the maximum extent permitted by law.

NOW, THEREFORE, to induce the Indemnitee to serve the Company and in consideration of these premises and the mutual agreements set forth in this Agreement, as well as other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Indemnitee hereby agree as follows:

1.

Indemnification.

(a)

Third Party Proceedings. The Company shall indemnify Indemnitee if Indemnitee is or was a party or is threatened to be made a party to or is otherwise involved in (e.g., as a witness) any threatened, pending or completed action or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Company) by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company, or any subsidiary of the Company, by reason of any action or inaction on the part of Indemnitee while an officer or director or by reason of the fact that Indemnitee is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) actually and reasonably incurred by Indemnitee in connection with such action or proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe Indemnitee’s conduct was unlawful. The termination of any action or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, or with respect to any criminal action or proceeding, that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.  The parties hereto intend that this Agreement shall provide to the fullest extent permitted by law for indemnification in excess of that expressly permitted by statute, including, without limitation, any indemnification provided by the Company's Certificate of Incorporation and Bylaws, vote of its stockholders or disinterested directors or applicable law.

(b)

Proceedings by or in the Right of the Company. The Company shall indemnify Indemnitee if Indemnitee was or is a party or is threatened to be made a party to or is otherwise involved in (e.g., as a witness) any threatened, pending or completed action or proceeding by or in the right of the Company or any subsidiary of the Company to procure a judgment in its favor by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company, or any subsidiary of the Company, by reason of any action or inaction on the part of Indemnitee while an officer or director or by reason of the fact that Indemnitee is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees) and, to the fullest extent permitted by law, 

 

amounts paid in settlement, in each case to the extent actually and reasonably incurred by Indemnitee in connection with the defense or settlement of such action or proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and its shareholders, except that no indemnification shall be made in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudicated by court order or judgment to be liable to the Company in the performance of Indemnitee’s duty to the Company and its shareholders unless and only to the extent that the Delaware Court of Chancery or any other court in which such action or proceeding is or was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or other such court shall deem proper.

(c)

Indemnification of Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provisions of this Agreement, to the fullest extent permitted by applicable law and to the extent that Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise, in any action, suit or proceeding referred to in Section 1(a) or Section 1(b) or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify Indemnitee against all expenses (including attorneys' fees) actually and reasonably incurred by Indemnitee in connection therewith.  If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such action, suit or proceeding, the Company shall indemnify Indemnitee against all expenses (including attorneys' fees) actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with or related to each successfully resolved claim, issue or matter to the fullest extent permitted by law.  For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.  Without limiting the foregoing, if any action, suit or proceeding is disposed of, on the merits or otherwise (including a disposition without prejudice), without (i) the disposition being adverse to Indemnitee, (ii) an adjudication that Indemnitee was liable to the Company, (iii) a plea of guilty or nolo contendere by Indemnitee, (iv) an adjudication that Indemnitee did not act in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, and (v) with respect to any criminal proceeding, an adjudication that Indemnitee had reasonable cause to believe his conduct was unlawful, Indemnitee shall be considered for the purpose hereof to have been wholly successful with respect thereto.  DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.

2.

Expenses; Indemnification Procedure.

(a)

Advancement of Expenses. The Company shall advance, to the extent not prohibited by law, all expenses incurred by Indemnitee (“Expense Advances”) in connection with the investigation, defense, settlement or appeal of any civil or criminal action or proceeding referred to in Section 1(a) or (b) hereof.  Indemnitee hereby undertakes to repay such amounts advanced only if, and to the extent that, it shall ultimately be determined that Indemnitee is not entitled to be indemnified by the Company as authorized hereby. The advances to be made hereunder shall be paid by the Company to Indemnitee within thirty (30) days following receipt of an undertaking (the “Undertaking”), substantially in the form attached hereto as Exhibit 1, by or on behalf of Indemnitee to repay the amount of any such advance if and to the extent that it shall ultimately be determined that Indemnitee is not entitled to indemnification for such amount. The Undertaking shall be unsecured and shall bear no interest and shall be accepted without reference to the financial ability of Indemnitee to make repayment.

(b)

Notice/Cooperation by Indemnitee. Indemnitee shall, give the Company notice in writing as soon as practicable of any claim made against Indemnitee for which indemnification is or will be sought under this Agreement. Notice to the Company shall be directed to the Chief Executive Officer of the Company at the address shown on the signature page of this Agreement (or such other address as the Company shall designate in writing to Indemnitee). Notice shall be deemed received three (3) business days after the date postmarked if sent by domestic certified or registered mail, properly addressed; otherwise, notice shall be deemed received when such notice shall actually be received by the Company. In addition, Indemnitee shall give the Company such information and cooperation as it may reasonably require and as shall be within Indemnitee’s power.

(c)

Procedure. (1) The omission by Indemnitee to notify the Company hereunder will not relieve the Company from any liability which it may have to Indemnitee hereunder or otherwise than under this Agreement, and any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights under this Agreement. Any indemnification and advances provided for in Section 1 and this Section 2 shall be made promptly, and in any event within thirty (30) days after receipt by the Company of the written request of Indemnitee together with such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to such indemnification or advances and, in the case of advances, a statement or statements reasonably evidencing the expenses incurred by Indemnitee and an undertaking as required by Section 2 hereof, unless with respect to such requests the Company determines within such 30­day period that Indemnitee did 

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not meet the applicable standard of conduct or that indemnification is not required under Section 7 below. Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement of Indemnitee to indemnification under this Agreement shall be required to be made prior to the final disposition of any action, suit or proceeding.  Such determination shall be made in each instance (i) if a Change in Control shall have occurred, unless otherwise elected by Indemnitee, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; or (ii) if a Change in Control shall not have occurred: (a) by a majority vote of the directors of the Company who are not at that time parties to the action, suit or proceeding in question (“disinterested directors”), even though less than a quorum; (b) by a committee of such disinterested directors designated by majority vote of such disinterested directors, even though less than a quorum; (c) if there are no such disinterested directors, or if such disinterested directors so direct, by Independent Counsel in a written opinion ; or (d) a majority vote of a quorum of the outstanding shares of stock of all classes entitled to vote for directors, voting as a single class, which quorum shall consist of stockholders who are not at that time parties to the action, suit or proceeding in question.  For purposes of this Agreement:

(A)

A “Change in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events:

(i)

Acquisition of Stock by Third Party.  Any Person (as defined below) is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing fifteen percent (15%) or more of the combined voting power of the Company's then outstanding securities unless the change in relative Beneficial Ownership of the Company's securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors;

(ii)

Change in Board of Directors.  During any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in this definition of Change in Control whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Board;

(iii)

Corporate Transactions.  The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the Surviving Entity) more than 50% of the combined voting power of the voting securities of the Surviving Entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such Surviving Entity;

(iv)

Liquidation.  The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets; and

(v)

Other Events.  There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement.

(B)

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

(C)

“Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person shall exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.  

(D)

“Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial Owner shall exclude any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company with another entity.

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(E)

“Surviving Entity” shall mean the surviving entity in a merger or consolidation or any entity that controls, directly or indirectly, such surviving entity.

(F)

“Independent Counsel” shall mean a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent:  (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement.  The Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify such counsel against any and all expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

(2)

In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 2(c)(1) hereof, the Independent Counsel shall be selected as provided in this Section 2(c)(2).  If a Change in Control shall not have occurred, the Independent Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee advising Indemnitee of the identity of the Independent Counsel so selected.  If a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected.  In either event, Indemnitee or the Company, as the case may be, may, within ten (10) days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of "Independent Counsel" as defined in this Agreement, and the objection shall set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the person so selected shall act as Independent Counsel.  If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or the Delaware Court has determined that such objection is without merit.  If, within twenty (20) days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 2(c)(1) hereof and the final disposition of the Proceeding, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the Delaware Court for resolution of any objection which shall have been made by the Company or Indemnitee to the other's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by such court or by such other person as such court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 2(c)(1) hereof.  Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 2(d) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

(d) 

If a claim under this Agreement, under any statute, or under any provision of the Company’s Certificate of Incorporation or Bylaws providing for indemnification, is not paid in full by the Company within the time allowed, Indemnitee may, but need not, at any time thereafter bring an action against the Company to recover the unpaid amount of the claim and, subject to Section 8 of this Agreement, Indemnitee shall also be entitled to be paid for the expenses (including attorneys’ fees) of bringing such action. It shall be a defense to any such action (other than an action brought to enforce a claim for expenses incurred in connection with any action or proceeding in advance of its final disposition) that Indemnitee has not met the standards of conduct which make it permissible under applicable law for the Company to indemnify Indemnitee for the amount claimed, but the burden of proving such defense shall be on the Company. Indemnitee shall be entitled to receive interim payments of expenses pursuant to Section 2(a) unless and until such defense may be finally adjudicated by court order or judgment from which no further right of appeal exists.  Alternatively, Indemnitee, at Indemnitee's option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association.  Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 2(d).  The Company shall not oppose Indemnitee's right to seek any such adjudication or award in arbitration.  In the event that a determination shall have been made pursuant to this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 14 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.  If a determination shall have been made pursuant to this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Agreement, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

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The Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Agreement that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.  It is the intent of the Company that, to the fullest extent permitted by law, the Indemnitee not be required to incur legal fees or other expenses associated with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement by litigation or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Indemnitee hereunder.  The Company shall, to the fullest extent permitted by law, indemnify Indemnitee against any and all expenses (including attorneys' fees) and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefor) advance, to the extent not prohibited by law, such expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advancement of expenses from the Company under this Agreement or under any directors' and officers' liability insurance policies maintained by the Company if, in the case of indemnification, Indemnitee is wholly successful on the underlying claims; if Indemnitee is not wholly successful on the underlying claims, then such indemnification shall be only to the extent Indemnitee is successful on such underlying claims or otherwise as permitted by law, whichever is greater.

(e) 

Reliance on Reports. Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on Indemnitee’s good faith reliance on the records or books of account of the Company, including financial statements, or on information supplied to Indemnitee by the officers of the Company in the course of their duties, or on the advice of legal counsel for the Company or on information or records given or reports made to the Company by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Company. In addition, the knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Company shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

(f)

Presumption; Burden. In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement and has acted in good faith. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.

(g)

Notice to Insurers. If, at the time of the receipt of a notice of a claim pursuant to Section 2(b) hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

(h)

Assumption of Defense and Selection of Counsel. In the event the Company shall be obligated under Section 2(a) hereof to pay the expenses of any proceeding against Indemnitee, the Company, if appropriate, shall be entitled to assume the defense of such proceeding, with counsel approved by Indemnitee, which approval shall not be unreasonably withheld or delayed, upon the delivery to Indemnitee of written notice of its election so to do. Notwithstanding the foregoing, the Company shall not be permitted to settle any action or claim on behalf of Indemnitee in any manner which would impose any unindemnified liability or penalty on Indemnitee or require any acknowledgment of wrongdoing on the part of Indemnitee without Indemnitee’s written consent, which consent shall not be unreasonably withheld or delayed. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by Indemnitee with respect to the same proceeding, provided that (i) Indemnitee shall have the right to employ his or her counsel in any such proceeding at Indemnitee’s expense; and (ii) if (A) the employment of separate counsel by Indemnitee has been previously authorized by the Company; (B) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the conduct of any such defense; or (C) the Company shall not, in fact, have employed counsel to assume the defense of such proceeding, then the fees and expenses of Indemnitee’s counsel shall be at the expense of the Company. The Company shall not be entitled, without the consent of Indemnitee, to assume the defense of any claim brought by or in the right of the Company or as to which counsel for Indemnitee shall have reasonably made the conclusion provided for in clause (ii)(B) above.

3.

Additional Indemnification Rights; Nonexclusivity; Contribution.

(a)

Scope. Notwithstanding any other provision of this Agreement, the Company hereby agrees to indemnify Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification is not specifically authorized by the other provisions of this Agreement, the Company’s Certificate of Incorporation, the Company’s Bylaws or by statute. In the event of any change, after the date of this Agreement, in any applicable law, statute 

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or rule which expands the right of a Delaware corporation to indemnify a member of its board of directors or an officer, such changes shall be, ipso facto, within the purview of Indemnitee’s rights and the Company’s obligations under this Agreement. In the event of any change in any applicable law, statute or rule which narrows the right of a Delaware corporation to indemnify a member of its board of directors or an officer, such changes, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement shall have no effect on this Agreement or the parties’ rights and obligations hereunder.

(b)

Nonexclusivity. The indemnification provided by this Agreement shall not be deemed exclusive of any rights to which Indemnitee may be entitled under the Company’s Certificate of Incorporation, its Bylaws, any agreement, any vote of stockholders or disinterested directors, the DGCL, or otherwise, both as to action in Indemnitee’s official capacity and as to action in another capacity while holding such office. The indemnification provided under this Agreement shall continue as to Indemnitee for any action taken or not taken while serving in an indemnified capacity even though he or she may have ceased to serve in any such capacity at the time of any action, suit or other covered proceeding.

(c)

Contribution.

(i)

Whether or not the indemnification provided in Section 1 hereof is available, in respect of any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall pay, in the first instance, the entire amount of any judgment or settlement of such action, suit or proceeding without requiring Indemnitee to contribute to such payment and the Company hereby waives and relinquishes any right of contribution it may have against Indemnitee. The Company shall not enter into any settlement of any action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding) unless such settlement provides for a full and final release of all claims asserted against Indemnitee;

(ii)

Without diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason, Indemnitee shall elect or be required to pay all or any portion of any judgment or settlement in any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall contribute to the amount of expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by Indemnitee in proportion to the relative benefits received by the Company and all officers, directors or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, from the transaction from which such action, suit or proceeding arose; provided, however, that the proportion determined on the basis of relative benefit may, to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the Company and all officers, directors or employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the events that resulted in such expenses, judgments, fines or settlement amounts, as well as any other equitable considerations which they may be required to be considered by law. The relative fault of the Company and all officers, directors or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, shall be determined by reference to, among other things, the degree to which their actions were motivated by intent to gain personal profit or advantage, the degree to which their liability is primary or secondary and the degree to which their conduct is active or passive;

(iii)

The Company hereby agrees fully to indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by officers, directors or employees of the Company, other than Indemnitee, who may be jointly liable with Indemnitee; and

(iv)

To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

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4.

Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the expenses, judgments, fines or penalties actually or reasonably incurred by him in the investigation, defense, appeal or settlement of any civil or criminal action or proceeding, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such expenses, judgments, fines or penalties to which Indemnitee is entitled.

5.

Primacy of Indemnification. The Company hereby acknowledges that Indemnitee has certain rights to indemnification, advancement of expenses and/or insurance provided by the Company’s insurance provider and certain of its affiliates (collectively, the “Fund Indemnitors”). The Company hereby agrees (i) that it is the indemnitor of first resort (i.e., its obligations to Indemnitee are primary and any obligation of the Fund Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by Indemnitee are secondary); (ii) that it shall be required to advance the full amount of expenses incurred by Indemnitee and shall be liable for the full amount of all Expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of this Agreement and the Certificate of Incorporation or Bylaws of the Company (or any other agreement between the Company and Indemnitee), without regard to any rights Indemnitee may have against the Fund Indemnitors; and (iii) that it irrevocably waives, relinquishes and releases the Fund Indemnitors from any and all claims against the Fund Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof. The Company further agrees that no advancement or payment by the Fund Indemnitors on behalf of Indemnitee with respect to any claim for which Indemnitee has sought indemnification from the Company shall affect the foregoing and the Fund Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of Indemnitee against the Company. The Company and Indemnitee agree that the Fund Indemnitors are express third party beneficiaries of the terms of this Section 5.

6.

Officer and Director Liability Insurance. The Company shall maintain a policy or policies of insurance with reputable insurance companies providing the officers and directors of the Company with coverage for losses from wrongful acts, or to ensure the Company’s performance of its indemnification obligations under this Agreement. Among other considerations, the Company will weigh the costs of obtaining such insurance coverage against the protection afforded by such coverage. In all policies of director and officer liability insurance, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company’s directors, if Indemnitee is a director; or of the Company’s officers, if Indemnitee is not a director of the Company but is an officer; or of the Company’s key employees, if Indemnitee is not an officer or director but is a key employee. Notwithstanding the foregoing, subject to any other obligation or agreement to maintain such insurance, the Company shall have no obligation to obtain or maintain such insurance if the Company determines in good faith that such insurance is not reasonably available, if the premium costs for such insurance are disproportionate to the amount of coverage provided, if the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit, or if Indemnitee is covered by similar insurance maintained by a subsidiary or parent of the Company.

7.

Severability. Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in violation of applicable law. The Company’s inability, pursuant to court order, to perform its obligations under this Agreement shall not constitute a breach of this Agreement. The provisions of this Agreement shall be severable as provided in this Section 7. If this Agreement or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify Indemnitee to the fullest extent permitted by any applicable portion of this Agreement that shall not have been invalidated, and the balance of this Agreement not so invalidated shall be enforceable in accordance with its terms.

8.

Exceptions. Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement:

(a)

Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee with respect to proceedings or claims initiated or brought voluntarily by Indemnitee and not by way of defense, except as expressly contemplated by this Agreement, with respect to proceedings brought to establish or enforce a right to indemnification under this Agreement or any other statute or law or otherwise as required under Section 145 of the DGCL, but such indemnification or advancement of expenses may be provided by the Company in specific cases if the Board of Directors has approved the initiation of such suit; or

(b)

Insured Claims. To indemnify Indemnitee for expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and amounts paid in settlement) to the extent such expenses or liabilities have been paid directly to Indemnitee under a policy of officers’ and directors’ liability insurance or under any other insurance policy, contract, agreement or otherwise maintained by the Company; or

7

 

(c)

Claims under Section 16(b). To indemnify Indemnitee for expenses or the payment of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute; or

9.

Construction of Certain Phrases.  For purposes of this Agreement, references to the “Company” shall include, in addition to the resulting corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that if Indemnitee is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate existence had continued.

For purposes of this Agreement, references to “other enterprises” shall include employee benefit plans; references to “fines” shall include any excise taxes assessed on Indemnitee with respect to an employee benefit plan; and references to “serving at the request of the Company” shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries.

10.

Effectiveness of Agreement. This Agreement shall be effective as of the date set forth on the first page and may apply to acts or omissions of Indemnitee which occurred prior to such date if Indemnitee was an officer, director, employee or other agent of the Company, or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, as the time such act or omission occurred. The Company’s obligations hereunder shall continue as to Indemnitee if he or she ceases to be a director, officer, employee or agent.

11.

Attorneys’ Fees. In the event that any action is instituted by Indemnitee under this Agreement to enforce or interpret any of the terms hereof, Indemnitee shall be entitled to be paid all court costs and expenses, including reasonable attorneys’ fees, incurred by Indemnitee with respect to such action, unless as a part of such action, the Delaware Court of Chancery determines that each of the material assertions made by Indemnitee as a basis for such action were not made in good faith or were frivolous. In the event of an action instituted by or in the name of the Company under this Agreement or to enforce or interpret any of the terms of this Agreement, Indemnitee shall be entitled to be paid all court costs and expenses, including attorneys’ fees, incurred by Indemnitee in defense of such action (including with respect to Indemnitee’s counterclaims and cross­claims made in such action), unless as a part of such action the court determines that each of Indemnitee’s material defenses to such action were made in bad faith or were frivolous.

12.

No Rights of Continued Service. This Agreement shall not impose any obligation of the Company to continue Indemnitee’s service to the Company beyond any period otherwise required by law or by other agreements or commitments of the parties, if any.

13.

Miscellaneous.

(a)

Governing Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflict of law.

(b)

Consent to Jurisdiction. The Company and Indemnitee each hereby irrevocably consent to the exclusive jurisdiction of the Delaware Court of Chancery for any purpose in connection with any actions or proceedings which arise out of or relate to this Agreement.

(c)

Entire Agreement; Enforcement of Rights. This Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter herein and merges all prior discussions between them. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing and signed by the parties to this Agreement. Furthermore, the Company agrees not to seek from a court, or agree to, a “bar order” which would have the effect of prohibiting or limiting the Indemnitee’s rights to receive advancement of expenses under this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of such party.

(d)

Construction. This Agreement is the result of negotiations between, and has been reviewed by, each of the parties hereto and their respective counsel, if any; accordingly, this Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto.

8

 

(e)

Notices. Unless otherwise provided in this Agreement, any notice, demand or request required or permitted to be given under this Agreement shall be in writing and shall be deemed sufficient when directed to the Chief Executive Officer of the Company at the address shown on the signature page of this Agreement (or such other address as the Company shall designate in writing) and when delivered personally or three business days after being postmarked, as certified or registered mail, with postage prepaid, and addressed to the party to be notified at such party’s address as set forth below or as subsequently modified by written notice.

(f)

Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

(g)

Successors and Assigns. This Agreement shall be binding upon the Company and its successors and assigns, including any direct or indirect successor by purchase, merger, consolidation or otherwise to all, substantially all or a substantial part of the business or assets of the Company. This Agreement shall inure to the benefit of Indemnitee and Indemnitee’s heirs, legal representatives, executives and administrators. The Company shall require and cause any successor (whether direct or indirect, and whether by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part of the business or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

(h)

Subrogation. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Company to effectively bring suit to enforce such rights.

[Remainder of page intentionally left blank; signature page to follow]

9

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

					
	HEAT BIOLOGICS, INC.

	 
	The Indemnity

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:

	 
	 
	By:

	 

	Name:

	 
	 
	Name: 

	 

	Title:

	 
	 
	Title: 

	 

	Address: 

	801 Capitola Drive

	 
	Address:

	 

	     

	Durham, NC 27713

	 
	 
	 

Signature Page to Indemnification Agreement

10

 

EXHIBIT 1

UNDERTAKING

1.

This Undertaking is submitted pursuant to the Indemnification Agreement dated as of August __, 2016 between Heat Biologics, Inc., a Delaware corporation (the “Company”), and the undersigned (the “Agreement”).  Capitalized terms used but not defined herein shall have the respective meanings set forth in the Agreement.

2.

I am requesting certain Expense Advances in connection with a claim to which I believe I am entitled to indemnification.

3.

I hereby undertake to repay such Expense Advances if it shall ultimately be determined that I am not entitled to be indemnified by the Company therefor under the Agreement or otherwise.

4.

The Expense Advances are, in general, all related to:

________________________________________________________________

11CONFIDENTIAL

 

MANAGEMENT
SERVICES AGREEMENT

 

BETWEEN

 

DSWISS
(HK) LIMITED

 

AND

 

DSWISS
BIOTECH SDN BHD

 

JUNE
27, 2016

 

    	 

     

    

 

MANAGEMENT
SERVICES AGREEMENT

 

This
MANAGEMENT SERVICES AGREEMENT (“Agreement”) is entered into as of June 27, 2016 (the “Effective
Date”), by and between the following (each a “Party” and together the “Parties”):

 

	 	(i)	DSWISS
    BIOTECH SDN BHD. (“DSBT”)
	 	 	 
	 	 	Registered
    Address: A-08-06, Tropicana Avenue, Tropicana Golf & Country Resort, 47410 Petaling Jaya, Selangor. Malaysia
	 	 	 
	 	(ii)	DSWISS
    (HK) LIMITED. (“DSHK”)
	 	 	 
	 	 	Registered
    Address: Rm 405, 4/F Energy Plaza, Tsim Sha Tsui East, Kowloon, Hong Kong

 

RECITALS

 

This
Agreement is entered into with reference to the following facts:

 

A.
DSBT is a limited liability company incorporated under the laws of Malaysia. DSBT is 60% owned by JERVEY CHOON and 40% owned by
DSHK (collectively, the “Nominee Shareholders”). DSBT is engaged in biotechnology and trading business
in Malaysia (together with any expansion, contraction or other change to the scope of that business as contemplated by this Agreement,
the “Business”).

 

B.
DSHK is a limited liability company incorporated under the laws of Hong Kong. DSHK is 100% owned by DSwiss Holding Limited., a
Seychelles company, and subsequent owned by DSwiss Inc., a Nevada company. DSHK has executive and financial management experience
and capability relevant to the Business.

 

C.
DSBT desires to engage DSHK to provide management, financial and other services in connection with the operation of the Business,
and DSHK desires to provide those services to DSBT. The Parties now desire to memorialize the terms and conditions pursuant to
which those services will be provided by DSHK to DSBT, and pursuant to which DSBT will compensate DSHK therefor.

 

NOW,
THEREFORE, in consideration for the mutual covenants and promises contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which is acknowledged by the Parties, and through friendly consultation, under the principle of
equality and mutual benefits, in accordance with the relevant laws and regulations of Hong Kong, the Parties agree as follows:

 

AGREEMENT

 

1.
Management Services. During the Term of this Agreement, DSHK will identify and provide to DSBT executive and financial
management personnel in sufficient numbers and with expertise and experience appropriate to provide the services identified in
Appendix I, as it may be amended from time to time by written agreement of the Parties (the “Management Services”),
and will provide those Services to DSBT. DSBT will take all commercially reasonable actions to permit and facilitate the provision
of the Management Services by DSHK and accept those Services.

 

    	1

     

    

 

2.
Compensation to DSHK. As compensation for providing the Management Services, DSHK will be entitled to receive a
fee (the “Management Services Fee”), upon demand, equal to one hundred percent (100%) of the annual
Net Profit of DSBT during the Term of this Agreement. At the sole discretion of DSHK, the Net Profit of DSBT shall be calculated
through the end of the immediately preceding fiscal year of DSBT, and paid by DSBT to DSHK within sixty (60) days of demand therefor.
Until and unless such demand is made, the Management Services Fee is not due and payable to DSHK and it is the intent of the Parties
that the Fee represents shall not be accrued by DSBT. Any dispute between the Parties concerning any calculation or payment under
this Section 2 will be resolved pursuant to the dispute resolution provisions of Section 15.

 

For
the purpose of this agreement, Net Profit means the net profit of DSBT for the period immediately preceding the date for calculation
of Net Profit set out in the Agreement, calculated as follows: (a) all revenue or income accrued by DSBT, less (b) all costs,
accrued expenses and taxes paid or accrued and payable.

 

3.
Ad Hoc Payment. The Parties acknowledge that in order to provide the Management Services under this Agreement, DSHK
may incur expenses and costs from time to time, and the Parties further agree that DSHK may request an ad hoc payment every calendar
quarter and such payment may be credited against DSBT’s future payment obligations of the Management Services Fee.

 

4.
Credit for Amounts Paid Under Other Agreements. DSHK and DSBT are or may be parties to certain other agreements,
such as the Technical Service Agreement, some or all of which may require certain payments to be made by DSBT to affiliates and/or
designee of DSHK in consideration for services, equipment or other items of value provided by affiliates and/or designee of DSHK.
The Parties agree that any and all such amounts may be (a) separately paid by DSBT and accordingly counted as expenses of DSBT,
reducing DSBT’s Net Profit; or (b) included in the aggregate Net Profit of DSBT and not separately paid to DSHK.

 

5.
Interest Penalty. If any amounts due and payable under this Agreement are not paid when due, interest will accumulate
on such amounts at the rate of four percent (4%) per annum until paid. This interest penalty may be reduced or waived by the Party
entitled to receive it in light of actual circumstances, including the reason for any delay in payment.

 

6.
Guarantees. To the extent and only to the extent permitted by applicable law, each Party agrees to act as a guarantor
of the indebtedness of the other, as and only as follows:

 

	 	(a)	DSBT
    will not incur any indebtedness to any Person not a party to this Agreement without the advance written consent of DSHK in
    the exercise of its obligations to provide comprehensive Management Services under this Agreement.
	 	 	 
	 	(b)	DSHK
    may, in the exercise of its reasonable business judgment, incur indebtedness to any Person not a party to this Agreement,
    provided that any such indebtedness may only be in connection with the Business. If DSHK incurs any indebtedness as contemplated
    by this Section 6(b), DSBT will act as a guarantor of that indebtedness.

 

    	2

     

    

 

7.
Exclusivity. During the Term of this Agreement, (a) DSBT will not contract with any other Person to provide services
which are the same or similar to the Management Services. For purposes of this Section 7 only, “Person” does not include
any Affiliate of either Party, including other entities that may become affiliated with either Party.

 

8.
Operation of Business. During the Term of this Agreement:

 

	 	(a)	The
    DSBT will ensure that:
	 	 	 	 
	 	 	(i)	the
    business of DSBT, together with all business opportunities presented to or which become available to DSBT, will be treated
    as part of the Business covered by the Management Services and this Agreement;
	 	 	 	 
	 	(ii)	all
    cash of DSBT will be maintained in Company Bank Accounts or disposed of in accordance with this Agreement;
	 	 	 
	 	(iii)	all
    business income, working capital, recovered accounts receivable, and any other funds which come into the possession of DSBT
    or are derived from or related to the operation of the business of DSBT, are deposited into a Company Bank Account;
	 	 	 
	 	(iv)	all
    accounts payable, employee compensation and other employment-related expenses, and any payments in connection with the acquisition
    of any assets for the benefit of DSBT or the satisfaction of any liabilities of DSBT, are paid from amounts maintained in
    Company Bank Accounts;
	 	 	 
	 	(v)	DSHK
    or any third party designated by DSHK will have full access to the financial records of DSBT and from time to time, DSHK may
    request, at its sole option, to conduct an auditing with regard to the financial status of DSBT;
	 	 	 
	 	(vi)	no
    action is taken without the prior written consent of DSHK that would have the effect of entrusting all or any part of the
    business of DSBT to any other Person.

 

	 	(b)	DSHK
    will ensure that:
	 	 	 
	 	 	(i)	it
    exercises with respect to the conduct of the Business the same level of care it exercises with respect to the operation of
    its own business and will at all times act in accordance with its Reasonable Business Judgment, including taking no action
    which it knows, or in the exercise of its Reasonable Business Judgment should have known, would materially adversely affect
    the status of any of permits, licenses and approvals necessary for the conduct of the Business or constitute a violation of
    all Legal Requirements;
	 	 	 	 
	 	 	(ii)	neither
    it, nor any of its agents or representatives, takes any action that interferes with, or has the effect of interfering with,
    the operation of the Business in accordance with this Agreement, or which materially adversely affects its assets, operations,
    business or prospects;
	 	 	 	 
	 	 	(iii)	use
    its Best Efforts to cooperate and assist DSBT to maintain in effect all permits, licenses and other authorizations and approvals
    necessary or appropriate to the conduct of the Business; and
	 	 	 	 
	 	 	(iv)	subject
    to the provisions of Section 10 relating to the Transition period, it will preserve intact the business and operations
    of DSBT and take no action which it knows, or in the exercise of its Reasonable Business Judgment should have known, would
    materially adversely affect the business, operations, or prospects of DSBT.

 

    	3

     

    

 

9.
Material Actions. The Parties acknowledge and agree that the economic risk of the operation of the Business is being
substantially assumed by DSBT and that the continued business success of DSBT is necessary to permit the Parties to realize the
benefits of this Agreement. During the Term of this Agreement, the Parties therefore will ensure that DSBT does not take any Material
Action without the advance written consent of DSHK, which consent will not be unreasonably withheld or delayed.

 

10.
Transition of Business to DSHK; Future Expansion. At the sole discretion of DSHK, during the Term of this Agreement,
DSHK may transfer or cause to be transferred from DSBT to DSHK or its designee (referred to collectively for purposes of this
Section 10 as “DSHK”) any part or all of the business, personnel, assets and operations of DSBT which may be lawfully
conducted, employed, owned or operated by DSHK (the “Transition”), including any of the following:

 

	 	(a)	business
    opportunities presented to, or available to DSBT may be pursued and contracted for in the name of DSHK rather than DSBT, and
    at its discretion DSHK may employ the resources of DSBT to secure such opportunities;
	 	 	 
	 	(b)	any
    tangible or intangible property of DSBT, any contractual rights, any personnel, and any other items or things of value held
    by DSBT may be transferred to DSHK at book value;
	 	 	 
	 	(c)	real
    property, personal or intangible property, personnel, services, equipment, supplies and any other items useful for the conduct
    of the Business may be obtained by DSHK by acquisition, lease, license or otherwise, and made available to DSBT on terms to
    be determined by agreement between DSHK and DSBT;
	 	 	 
	 	(d)	contracts
    entered into in the name of DSBT may be transferred to DSHK, or the work under such contracts may be subcontracted, in whole
    or in part, to DSHK, on terms to be determined by agreement between DSHK and DSBT; and
	 	 	 
	 	(e)	any
    changes to, or any expansion or contraction of, the Business may be carried out in the exercise of the sole discretion of
    DSHK, and in the name of and at the expense of, DSHK;

 

provided,
however, that none of the foregoing, and no other part of the Transition may cause or have the effect of terminating (without
being substantially replaced under the name of DSHK) or adversely affecting any license, permit or regulatory status of DSBT.
Any of the activity contemplated by this Section10 will be deemed part of the “Business.”

 

    	4

     

    

 

11.
Ownership of Intellectual Property. All Intellectual Property created by DSHK in the course of providing the Management
Services will be the sole property of DSHK and DSBT will have no right to any ownership or use of such Intellectual Property except
under separate written agreement with DSHK.

 

12.
Representations and Warranties of DSBT. DSBT hereby makes the following representations and warranties for the benefit
of DSHK:

 

	 	(a)	Corporate
    Existence and Power. DSBT is a limited liability company duly organized and validly existing under the laws of Malaysia,
    and has all legal or corporate power and all governmental licenses, authorizations, consents and approvals required to carry
    on its business as now conducted and as currently contemplated to be conducted. DSBT has never approved, or commenced any
    proceeding or made any election contemplating, the dissolution or liquidation of DSBT or the winding up or cessation of the
    business or affairs of DSBT.
	 	 	 
	 	(b)	Authorization;
    No Consent. DSBT (i) has taken all necessary corporate and other actions to authorize its execution, delivery and
    performance of this Agreement and all related documents and has the corporate and other power and authorization to execute,
    deliver and perform this Agreement and the other related documents; (ii) has the absolute and unrestricted right, power, authority,
    and capacity to execute and deliver this Agreement and the other related documents and to perform its obligations under this
    Agreement and the other related documents; (iii) is not required to give any notice to or obtain any Consent from any Person
    in connection with the execution and delivery of this Agreement or the consummation or performance of any of the transactions
    or actions contemplated by any of the Business Cooperation Agreements, except for any notices that have been duly given or
    Consents that have been duly obtained; and (iv) holds all the governmental authorizations necessary to permit it to lawfully
    conduct and operate its business in the manner it currently conducts and operates such business and to permit DSBT to own
    and use its assets in the manner in which it currently owns and uses such assets. To the best knowledge of DSBT, there is
    no basis for any governmental authority to withdraw, cancel or cease in any manner any of such governmental authorizations.
	 	 	 
	 	(c)	No
    Conflicts. The execution and perform of this Agreement by DSBT will not contravene, conflict with, or result in violation
    of (i) any provision of the organizational documents of DSBT; (ii) resolution adopted by the board of directors or the equity
    holders of DSBT; and (iii) any laws and regulations to which DSBT or the transactions and relationships contemplated in this
    Agreement.

 

    	5

     

    

 

13.
Representations and Warranties of DSHK. DSHK hereby makes the following representations and warranties for the benefit
of DSBT:.

 

	 	(a)	Corporate
    Existence and Power. DSHK (i) is a limited liability company duly organized and validly existing under the laws of
    Hong Kong, and has all corporate power and all governmental licenses, authorizations, consents and approvals required to carry
    on its business as now conducted and as currently contemplated to be conducted; and (ii) has not ever approved, or commenced
    any proceeding or made any election contemplating, the dissolution or liquidation of DSHK or the winding up or cessation of
    the business or affairs of DSHK.
	 	 	 
	 	(b)	Authorization;
    No Consent. DSHK (i) has taken all necessary corporate actions to authorize its execution, delivery and performance
    of this Agreement and all related documents and has the corporate power and authorization to execute, deliver and perform
    this Agreement and the other related documents; (ii) has the absolute and unrestricted right, power, authority, and capacity
    to execute and deliver this Agreement and the other related documents and to perform its obligations under this Agreement
    and the other related documents; (iii) is not required to give any notice to or obtain any Consent from any Person in connection
    with the execution and delivery of this Agreement or the consummation or performance of any of the Business Cooperation Agreements,
    except for any notices that have been duly given or Consents that have been duly obtained; and (iv) has all the governmental
    authorizations necessary to permit DSHK to lawfully conduct and operate its business in the manner it currently conducts and
    operates such business and to permit DSHK to own and use its assets in the manner in which it currently owns and uses such
    assets. To the best knowledge of DSHK, there is no basis for any governmental authority to withdraw, cancel or cease in any
    manner any of such governmental authorizations.
	 	 	 
	 	(c)	No
    Conflicts. The execution and perform of this Agreement by DSHK will not contravene, conflict with, or result in violation
    of (i) any provision of the organizational documents of DSHK; (ii) any resolution adopted by the board of directors or the
    equity holders of DSHK; and (iii) any laws and regulations to which DSHK or the transactions and relationships contemplated
    in this Agreement and the Business Cooperation Agreements are subject.

 

14.
Liability for Breach; Indemnification and Hold Harmless. Each of the Parties will be liable to the other Party for
any damage or loss caused by such Party’s breach of this Agreement. DSBT will indemnify and hold harmless DSHK from and
against any claims, losses or damages unless caused by a breach by DSHK of its obligations under this Agreement or by the willful,
reckless or illegal conduct of DSHK. DSHK will indemnify and hold harmless DSBT from and against any claims, losses or damages
caused by any breach by DSBT of its obligations under this Agreement or by the willful, reckless or illegal conduct of DSBT.

 

    	6

     

    

 

15.
Dispute Resolution.

 

	 	(a)	Friendly
    Consultations. Any and all disputes, controversies or claims arising out of or relating to the interpretation or implementation
    of this Agreement, or the breach hereof or relationships created hereby, will be settled through friendly consultations.
	 	 	 
	 	(b)	Arbitration.
    If any such dispute is not resolved through friendly consultations within sixty (60) days from the date a Party gives
    the other Parties written notice of a dispute, then it will be resolved exclusively by arbitration under in accordance with
    the UNCITRAL Arbitration Rules as at present in force and as may be amended by the rest of this clause. The appointing authority
    shall be Hong Kong International Arbitration Centre. The place of arbitration shall be in Hong Kong at Hong Kong International
    Arbitration Centre (HKIAC). Any arbitration will be conducted in either in English or Chinese languages. The arbitration award
    will be final and binding on both Parties and will not be subject to any appeal, and the Parties agree to be bound thereby
    and to act accordingly.
	 	 	 
	 	(c)	Continuation
    of Agreement. It is not necessary for any Party to declare a breach of this Agreement in order to proceed with the
    dispute resolution process set out in this Section 15. Unless and until this Agreement is terminated pursuant to Section
    16, this Agreement will continue in effect during the pendency of any discussions or arbitration under this Section
    15.

 

16.
Term. This Agreement is effective as of the date first set forth above, and will continue in effect for a period
of ten (10) years (the “Initial Term”), and for succeeding periods of the same duration (each, “Subsequent
Term”), until terminated by one of the following means either during the Initial Term or thereafter. The period
during which this Agreement is effective is referred to as the “Term.”

 

	 	(a)	Mutual
    Consent. This Agreement may be terminated at any time by the mutual consent of the Parties, evidenced by an agreement
    in writing signed by both Parties.
	 	 	 
	 	(b)	Termination
    by DSHK. This Agreement may be terminated by DSHK ((i) upon written notice delivered to DSBT no later than ten (10)
    calendar days before the expiration of the Initial Term or any Subsequent Term; or (ii) at any time by upon ninety (90) calendar
    days’ written notice delivered to DSBT.
	 	 	 
	 	(c)	Breach
    or Insolvency. Either of DSBT or DSHK may terminate this Agreement immediately (a) upon the material breach by the
    other of its obligations hereunder and the failure of such Party to cure such breach within thirty (30) working days after
    written notice from the non-breaching Party; or (b) upon the filing of a voluntary or involuntary petition in bankruptcy by
    the other or of which the other is the subject, or the insolvency of the other, or the commencement of any proceedings placing
    the other in receivership, or of any assignment by the other for the benefit of creditors.

 

    	7

     

    

 

	 	(d)	Consequences
    of Termination. Upon any effective date of any termination of this Agreement: (i) DSHK will instruct all management
    personnel identified or provided by it to DSBT to cease working for DSBT; (ii) DSHK will deliver to DSBT all chops and seals
    of DSBT; (iii) DSHK will deliver to DSBT, or grant to DSBT unrestricted access to and control of, all of the financial and
    other books and records of DSBT, including any and all permits, licenses, certificates and other proprietary and operational
    documents and instruments; (iv) DSHK will cooperate fully in the replacement of any signatories or persons authorized to act
    on behalf of DSBT with persons appointed by DSBT; and (v) any licenses granted by DSHK to DSBT during the Term will terminate
    unless otherwise agreed by the Parties.
	 	 	 
	 	(e)	Survival.
    The provisions of Section 14 (Indemnification; Hold Harmless), Section 15 (Dispute Resolution), Section 16(d)
    (Consequences of Termination) and Section 17 (Miscellaneous) will survive any termination of this Agreement. Any
    amounts owing from any Party to any other Party on the effective date of any termination under the terms of this Agreement
    will continue to be due and owing despite such termination.

 

17.
Miscellaneous.

 

	 	(a)	Headings
    and Gender. The headings of Sections in this Agreement are provided for convenience only and will not affect its construction
    or interpretation. All references to “Section” or “Sections” refer to the corresponding Section or
    Sections of this Agreement. All words used in this Agreement will be construed to be of such gender or number as the circumstances
    require. Unless otherwise expressly provided, the word “including” does not limit the preceding words or terms.
	 	 	 
	 	(b)	Usage.
    The words “include” and “including” will be read to include “without limitation.”
	 	 	 
	 	(c)	Severability.
    Whenever possible each provision and term of this Agreement will be interpreted in a manner to be effective and valid but
    if any provision or term of this Agreement is held to be prohibited by or invalid, then such provision or term will be ineffective
    only to the extent of such prohibition or invalidity, without invalidating or affecting in any manner whatsoever the remainder
    of such provision or term or the remaining provisions or terms of this Agreement. If any of the covenants set forth in this
    Agreement are held to be unreasonable, arbitrary, or against public policy, such covenants will be considered divisible with
    respect to scope, time and geographic area, and in such lesser scope, time and geographic area, will be effective, binding
    and enforceable against the Parties.
	 	 	 
	 	(d)	Waiver.
    No failure or delay by any Party to exercise any right, power or remedy under this Agreement will operate as a waiver of any
    such right, power or remedy.
	 	 	 
	 	(e)	Integration.
    This Agreement supersede any and all prior discussions and agreements (written or oral) between the Parties with respect to
    cooperation arrangement and other matters contained herein.

 

    	8

     

    

 

	 	(f)	Assignments,
    Successors, and No Third-Party Rights. No Party may assign any of its rights under this Agreement without the prior
    consent of the other Parties, which will not be unreasonably withheld. Nothing expressed or referred to in this Agreement
    will be construed to give any Person other than the Parties to this Agreement any legal or equitable right, remedy, or claim
    under or with respect to this Agreement or any provision of this Agreement. This Agreement and all of its provisions and conditions
    are for the sole and exclusive benefit of the Parties to this Agreement and their successors and assigns.
	 	 	 
	 	(g)	Notices.
    All notices, requests, demands, claims, and other communications under this Agreement will be in writing. Any Party may send
    any notice, request, demand, claim, or other communication under this Agreement to the intended recipient at the address set
    forth on the signature page of this Agreement by any means (including personal delivery, expedited courier, messenger service,
    telecopy, telex, ordinary mail, or electronic mail), but no such notice, request, demand, claim, or other communication will
    be deemed to have been duly given unless and until it actually is received by the intended recipient. Refusal by a Party to
    accept notice that is validly given under this Agreement will be deemed to have been received by such Party upon receipt.
    Any Party may change the address to which notices, requests, demands, claims, and other communications under this Agreement
    are to be delivered by giving the other Parties notice in the manner herein set forth. Any notice, request, demand, claim,
    or other communication under this Agreement will be addressed to the intended recipient as set forth on the signature page
    hereto.
	 	 	 
	 	(h)	Further
    Assurances. Each of the Parties will use its best efforts to take all action and to do all things necessary, proper,
    or advisable in order to consummate and make effective the transactions contemplated by this Agreement.
	 	 	 
	 	(i)	Governing
    Law. This Agreement will be construed, and the rights and obligations under this Agreement determined, in accordance
    with the laws of the Hong Kong, without regard to the principles of conflict of laws thereunder.
	 	 	 
	 	(j)	Amendment.
    This Agreement may not be amended, altered or modified except by a subsequent written document signed by all Parties.

 

[Signature
Page Follows]

 

    	9

     

    

 

IN
WITNESS HEREOF, the Parties have caused this Management Services Agreement to be executed in Malaysia as of the date first herein
above mentioned.

 

	JERVEY
    CHOON	 
	 	 	 
	Signature
    by:	/s/
    Jervey Choon	 

 

For
and on behalf of

DSWISS
(HK) LIMITED (Company chop)

 

	Signature
    by: 	/s/
    Leong Ming Chia	 
	Name:	Leong
    Ming Chia	 
	Position:	Authorized
    Representative	 

 

For
and on behalf of

DSWISS
BIOTECH SDN BHD (Company chop)

 

	Signed
    by:	/s/
    Jervey Choon	 
	Name:	Jervey
    Choon	 
	Position:	Authorized
    Representative	 

 

    	10

     

    

 

APPENDIX
I

 

Management
Services

 

For
purposes of that certain Management Services Agreement to which this is Appendix A, “Management Services”
means the following:

 

General
Management Services

 

“Management
Services” includes the following general management services relating to the operation of the Business, except for those
compulsively limited or prohibited by laws of Hong Kong and regulations otherwise:

 

(a)
All aspects of the day-to-day operations of DSBT, including its relationships with its customers, its performance under agreements
or other arrangements with any other parties, its compliance with applicable laws and regulations;

 

(b)
The appointment, hiring, compensation (including any bonuses, non-monetary compensation, fringe and other benefits, and equity-based
compensation), firing and discipline of all employees, consultants, agents and other representatives of DSBT, including the Executive
Director or the Board of Directors of DSBT and all other executive officers or employees of DSBT;

 

(c)
Establishment, maintenance, termination or elimination of any plan or other arrangement for the benefit of any employees, consultants,
agents, representatives or other personnel of DSBT;

 

(d)
Management, control and authority over all accounts receivable, accounts payable and all funds and investments of DSBT;

 

(e)
Management, control and authority over DSBT Bank Accounts, in connection with which all seals and signatures will be those of
personnel appointed and confirmed by DSHK;

 

(f)
Any expenditure, including any capital expenditure, of DSBT;

 

(g)
The entry into, amendment or modification, or termination of any contract, agreement and/or other arrangement to which DSBT is,
was, or would become a party;

 

(h)
The acquisition, lease or license by DSBT of any assets, supplies, real or personal property, or intellectual or other intangible
property;

 

(i)
The acquisition of or entry into any joint venture or other arrangement by DSBT with any other Person;

 

(j)
Any borrowing or assumption by DSBT of any liability or obligation of any nature, or the subjection of any asset of DSBT to any
Lien;

 

(k)
Any sale, lease, license, retirement or other disposition of any asset owned, beneficially owned or controlled by DSBT;

 

(l)
Applying for, renewing, and taking any action to maintain in effect, any permits, licenses or other authorizations and approvals
necessary for the operation of DSBT’s business;

 

(m)
The commencement, prosecution or settlement by DSBT of any litigation or other dispute with any other Person, through mediation,
arbitration, lawsuit or appeal;

 

(n)
The declaration or payment of any dividend or other distribution of profits of

 

(o)
The preparation and filing of all Tax Returns, the payment or settlement of any and all Taxes, and the conduct of any proceedings
with any Governmental Authority with respect to any Taxes; and

 

(p)
The carrying out of the Transition, as defined in Section 10, and any business or corporate restructuring of DSBT or its subsidiaries.

 

    	11

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