Document:

EXECUTION

 

Exhibit
10.1

 

Management Agreement

 

THIS MANAGEMENT AGREEMENT ("Agreement"),
effective as of June 1, 2016 (the "Effective Date"), is made by and among LipimetiX Development, Inc., a Delaware
corporation (the "Company"), Benu BioPharma, Inc., a Massachusetts corporation (the "Management Company"),
and Dennis I. Goldberg, Ph.D., Phillip M. Friden, Ph.D, and Eric M. Morrel, Ph.D., all affiliates of the Management Company (collectively,
the "Principals").

 

RECITALS:

 

WHEREAS, the Company desires to retain
the Management Company to provide certain services for the Company as provided herein;

 

WHEREAS, the Management Company desires
to provide such services to the Company as provided herein; and

 

WHEREAS, as inducement to the Company
to enter into this Agreement, the Principals have agreed to be bound by the terms of certain restrictive covenant, confidentiality
and intellectual property ownership provisions set forth herein;

 

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

AGREEMENT:

 

		1.	Engagement. The Company hereby engages the Management Company to provide the services
set forth in Section 2 hereof to the Company, and the Management Company hereby accepts such engagement, on the terms and conditions
set forth in this Agreement.
	 	 	 

		2.	Services. The Management Company agrees to provide all management and operational
personnel to perform the day-to-day management of the Company, including business development, research and development, regulatory
affairs, product development, technical operations, assisting the Company's Board of Directors (“Board”) in intellectual
property strategy and management, and developing and managing clinical trials undertaken by the Company from time to time relating
to or involving the research, development, manufacturing, distribution, licensing or sale of technology, products or services relating
to the development of Apo E mimetics for the treatment of hypercholesterolemia and other diseases (collectively, the "Management
Services"); provided, that the Management Services shall not include those accounting and finance services to be performed
by Capstone Therapeutics Corp. (“Capstone”) pursuant to the Accounting Services Agreement between the Company and Capstone.
During the Term of this Agreement, the Management Company will diligently and faithfully perform, to the best of its ability, the
duties and activities assigned to it by the Company pursuant to this Agreement. The Management Company shall cause the Principals
to devote their full business time and effort, as needed, to the performance of this Agreement in the roles specified on Exhibit
A attached hereto. The Management Company and the Principals shall report to the Board of the Company and shall render the
Management Services in a manner that is consistent with the operating budgets for the Company approved from time to time by the
Board. All Management Services rendered by the Management Company hereunder shall be rendered by or under the direction of Dennis
I. Goldberg, Ph.D.
	 	 	 
	

     

     

    

	 	 	 

		3.	Term; Subsequent Agreement.
	 	 	 

		a.	Term. Subject to earlier termination pursuant to Section 5 hereof, the term of the Management
Company’s engagement hereunder shall commence on the Effective Date and shall continue until the completion and public presentation
of the final, statistically validated results of a AEM 28-14 Phase 1b/2a clinical trial, as outlined in the budget and development
program approved by the Board (the "Term").
	 	 	 

		b.	Subsequent Agreement. If, after expiration of the Term, the Company wishes the Management
Company to continue to provide any or all of the services contemplated in this Agreement, the Company and the Management Company
shall negotiate in good faith a new agreement regarding the duration of and compensation for the services that the Company wishes
the Management Company to provide.
	 	 	 
	 4.	Compensation.
	 	 	 

		a.	Management Fee. In consideration of the Management Services, the Management Company shall
be paid a management fee during the Term at the rates listed on Exhibit B hereto, payable monthly in advance (the "Management
Fee"), beginning with the payment for the month of June 2016 and ending with the payment for the month of December 2018
(31 months). However, Management Fees will only be due and payable to the extent funding is available, as unanimously approved
by the members of the Board, and as reflected in the approved operating budget in effect at that time.
	 	 	 

		b.	Reimbursement for Expenses. The Management Company shall be reimbursed for out-of-pocket
travel expenses and meeting registration costs and for other out-of-pocket expenses approved in advance by the Company’s
Joint Development Committee and consistent with the approved development budget. All such expenses shall be documented and submitted
in accordance with the reimbursement policies of the Company in effect from time to time.
	 	 	 
	 5.	Termination.
	 	 	 

		a.	Termination by Company. The Company may terminate this Agreement immediately upon written
notice for any of the following reasons:
	 	 	 
	

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		i.	the Management Company refuses or fails to perform the Management Services in accordance with this
Agreement, or otherwise violates or fails to perform any term, covenant or provision of this Agreement; or
	 	 	 

		ii.	a breach of Sections 6, 7, or 8 of this Agreement by any of the Principals; or
	 	 	 

		iii.	the Management Company shall voluntarily or involuntarily be dissolved; apply for or consent to
the appointment of a receiver, trustee or liquidator of all or a substantial part of its assets; file a voluntary petition in bankruptcy
or otherwise voluntarily avail itself of any federal or state laws for the relief of debtors; admit in writing its inability to
pay its debts as they become due; make a general assignment for the benefit of creditors; file a petition or an answer seeking
reorganization or arrangement with creditors or to take advantage of any insolvency law or file an answer admitting the material
allegations of any petition filed against it in any bankruptcy, reorganization or insolvency proceeding; suffer the filing of an
involuntary petition in bankruptcy or similar proceeding under state law which is not dismissed within ninety (90) days of such
filing; if an order, judgment or decree shall be entered by any court of competent jurisdiction on the application of any one or
more creditors of such defaulting party adjudicating it a bankrupt or insolvent or approving a petition seeking reorganization
or appointing a receiver, trustee or liquidator of all or a substantial part of its assets, and such order, judgment or decree
shall become final; or

 

		iv.	The Company makes a decision to cease development activities.
	 	 	 

		v.	The Company sub-licenses, or assigns/conveys or otherwise transfers its AEM 28 and analogs intellectual
property, including its License with UABRF, and associated development rights, to a pharmaceutical company.
	 	 	 

		b.	Termination upon Change of Control. This agreement shall terminate immediately upon a Change
of Control of the Company. As used herein, a "Change of Control" shall mean a change in the power to direct or
cause the direction of the management and policies of the Company, which change arises from (i) any "person" (including
a "person" as defined by Section 13(d)(3) and 14(d) of the Exchange Act) becoming the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty
percent (50%) of the combined voting power of the Company’s then outstanding equity securities or (ii) more than fifty percent
(50%) of the assets of the Company being disposed of by the Company pursuant to a partial or complete liquidation of the Company,
a sale of assets (including securities of a subsidiary or subsidiaries) of the Company or otherwise; provided, however that
no Change of Control shall be deemed to occur by reason of the acquisition of additional securities of the Company by any current
holder of the Company’s securities or any affiliate thereof.
	 	 	 
	

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		c.	Severance. In the event of a termination of this Agreement upon a Change of Control or pursuant
to Section 5(a)(iv) above, the Company shall provide the Management Company with either: (i) an offer for a Management Agreement
by the Company on terms and conditions reasonably equivalent to this Agreement (a "Management Offer") or (ii)
a severance payment equal to three (3) months of Management Fees, or, if the Company shall experience the Change of Control within
one (1) year of the Effective Date of this Agreement, a severance payment equal to six (6) months of Management Fees (the "Severance
Payment"). The Company shall pay the entire balance of the Severance Payment owed to the Management Company in cash within
30 days after the effective date of the Change of Control. If the Management Company receives and fails to accept a Management
Offer from the Company provided in accordance with the terms of this Section 5(c), it shall not be entitled to receive the Severance
Payment or any other payment or benefit of any kind from the Company.
	 	 	 
	 6.	Non-Disclosure and Non-Competition.
	 	 	 

		a.	Non-Disclosure. The Management Company and the Principals acknowledge that, in the course
of performing services for the Company, they may obtain knowledge of the Company’s business plans, products, research, results,
processes, software, know-how, trade secrets, formulas, methods, models, prototypes, discoveries, inventions, materials, improvements,
disclosures, customer, contractor and supplier lists, names and positions of employees and/or other proprietary or confidential
information or any copies or modifications or derivative works thereof or other works based thereon (collectively, the "Confidential
Information"). The Management Company and the Principals shall maintain the confidentiality of the Confidential Information
and shall not publish, disclose or divulge any Confidential Information to any other person, or use any Confidential Information
for the benefit of the Management Company or any third party, to the detriment of the Company or for any purpose other than in
connection with the performance of the Management Services, whether or not such Confidential Information is or was discovered or
developed by the Management Company or any of its agents or employees. The Management Company and the Principals shall not divulge,
publish or use any proprietary or confidential information of any third parties that the Company maintains, or is obligated to
maintain, in confidence.
	 	 	 

		b.	Employee Non-Disclosure Agreements. The Management Company shall take all actions necessary
to ensure that each of its affiliates, employees and agents who may perform services for or on behalf of the Company or may have
any access to the Company’s Confidential Information sign a Non-Disclosure and Invention Assignment Agreement in a form acceptable
to the Company containing agreements and undertakings substantially identical to those set forth in Sections 6(a) and 7 hereof.
	 	 	 
	

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		c.	Non-Competition. The Management Company and the Principals agree that during the Term of
the Management Company’s engagement by the Company hereunder and for a period of one (1) year from and after the termination
of this Agreement, that neither they nor any corporation or other entity in which the Management Company or the Principals may
be interested as a member, partner, trustee, director, officer, employee, agent, shareholder or other equity participant, lender
of money or guarantor, or for which the Management Company or the Principals perform services in any capacity (including as a consultant
or independent contractor) shall, at any time: (i) be engaged, directly or indirectly, in any Competitive Business (as herein defined)
or (ii) solicit, hire, contract for services or otherwise employ, directly or indirectly, any of the employees of the Company;
provided, however, that nothing herein contained shall be deemed to prevent the Management Company or the Principals from investing
in or acquiring, collectively, one percent (1%) or less of any class of securities of any company if such class of securities is
listed on a national securities exchange. For purposes of this Section 6(c) the term "Competitive Business" shall
mean a business that engages in any respect in the research, development, manufacturing, distribution, licensing or sale of technology,
products or services relating to Apoliprotein E mimetics for the treatment of hypercholesterolemia and other diseases, and/or any
other product that the Company develops or is in the process of developing during the Term of this Agreement.
	 	 	 

		7.	Inventions, Discoveries and Ownership.
	 	 	 

		a.	Disclosure. The Management Company and the Principals shall promptly and fully disclose
to the Company, with all necessary detail, all developments, know-how, discoveries, (whether registered or unregistered, copyrightable,
patentable or otherwise and including any applications for copyright registration or patent rights) made, received, conceived,
acquired or written by the Management Company (whether or not at the request or upon the suggestion of the Company), solely or
jointly with others, during the Term hereof that (i) specifically relate to Apoliprotein E mimetics for the treatment of hypercholesterolemia
and other diseases and/or any other technology with respect to which the Management Company renders research and development services
or oversight to the Company, or (ii) are otherwise made through the use of the Company’s time, facilities or materials (collectively,
the "Inventions.")
	 	 	 

		b.	Assignment and Transfer. The Management Company and the Principals shall assign and transfer
to the Company all of the Management Company’s and each Principal's rights, title and interest in and to each of the Inventions,
and the Management Company and the Principals shall further deliver to the Company any and all drawings, notes, specifications
and data relating to each of the Inventions, and to sign, acknowledge and deliver all such further papers, including applications
for and assignments of copyrights and parents, and all renewals thereof, as may be necessary to obtain copyrights and patents for
any and all of the Inventions in any and all countries and to vest title thereto in the Company and its successors and assigns
and to otherwise protect the Company’s right, title and interests therein.
	 	 	 
	

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		c.	Ownership. The Company shall own all right, title and interest in all Confidential Information,
Inventions and Company Documentation (as defined in Section 8(a)) and all other intellectual property, or tangible property or
equipment, developed or purchased by or on behalf of the Company (collectively, the "Company Property"). Nothing
in this Agreement or in the course of the performance of the Management Services hereunder, including, but not limited to the delivery
or maintenance of such Company Property at premises owned or controlled by the Management Company or any third party, shall be
construed to grant any right, title or interest in any Company Property unless expressly granted in writing by the Company. The
Management Company shall clearly label or otherwise designate all Company Property as such, and, upon request by the Company, shall
permit the Company to enter onto any premises owned or controlled by the Management Company and to access or remove any Company
Property present thereon. Management Company shall maintain all Company Property in accordance with at least the same level of
care and security as the Management Company applies to its own property.

		d.	Records. The Management Company agrees that, in connection with any research, development
or other services performed for the Company, it will maintain careful, adequate and contemporaneous written records of all Inventions,
which records shall be the property of the Company and shall be returned to the Company promptly upon any termination of this Agreement.
	 	 	 
	 8.	Company Documentation.
	 	 	 

		a.	Company Documentation. The Management Company and the Principals shall hold in a fiduciary
capacity for the benefit of the Company all documentation, programs, data, records, research materials, drawings, manuals, disks,
reports, sketches, blueprints, letters, notes, notebooks and all other writings, electronic data, graphics and tangible information
and materials of a secret, confidential or proprietary information nature relating to the Company or the Company’s business
(the "Company Documentation") that are, at any time, in the possession or under the control of the Management
Company or any of its agents or employees.
	 	 	 

		9.	Injunctive Relief. The Management Company and the Principals acknowledge that their
compliance with the agreements in Sections 6, 7, and 8 hereof is necessary to protect the good will and other proprietary interests
of the Company and that they have been and will be entrusted with highly confidential information regarding the Company and its
technology and are conversant with the Company’s affairs, its trade secrets and other proprietary information. The Management
Company and the Principals acknowledge that a breach of their agreements in Sections 6, 7, and 8 hereof will result in irreparable
and continuing damage to the Company for which there will be no adequate remedy at law; and the Management Company and the Principals
agree that, in the event of any breach of the aforesaid agreements, the Company and its successors and assigns shall be entitled
to injunctive relief, to recover all costs and attorneys fees and to such other and further relief as may be proper.
	 	 	 
	

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		10.	Compliance with the Laws. The Management Company shall at all times in performance
of the Management Services and any other obligations of the Management Company in connection with this Agreement comply with all
applicable federal, state or local laws, rules, regulations and orders of any court, tribunal or administrative agency having jurisdiction
over the Management Company, the Company or the Management Services (collectively, the "Laws"). The Management
Company shall, in connection with the Management Services, make all commercially reasonable efforts to remain aware of all existing
Laws and any new developments under the Laws, and the requirements for compliance with such Laws, that are applicable to the Management
Company, the Company or the Management Services.
	 	 	 
		11.	Representations and Warranties.
	 	 	 

		a.	Representations of the Company. As an inducement to the Management Company to enter into
this Agreement, the Company represents and warrants to the Management Company as follows:
	 	 	 

		i.	The Company is a corporation duly organized and validly existing under the laws of the State of
Delaware and has all requisite power to enter into this Agreement.
	 	 	 

		ii.	Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated
herein or therein nor compliance by the Company with any of the provisions hereof or thereof will (A) violate any order, writ,
injunction, decree, law statute, rule or regulation applicable to it or (B) require the consent, approval, permission or other
authorization of or qualification or filing without notice to, any court, arbitrator or other tribunal or any governmental, administrative,
regulatory or self-regulatory agency or any other third party.
	 	 	 

		iii.	This Agreement has been duly executed and delivered by the Company and constitutes a legal, valid
and binding agreement of the Company enforceable in accordance with its terms.
	 	 	 

		b.	Representations of the Management Company. As an inducement to the Company to enter into
this Agreement, the Management Company hereby represents and warrants to the Company as follows:
	 	 	 

		i.	The Management Company is an S corporation duly organized, validly existing and in good standing
under the laws of the State of Massachusetts, and the Management Company has all requisite power and authority to enter into this
Agreement.
	 	 	 
	

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		ii.	Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated
herein nor compliance by the Management Company with any of the provisions hereof will: (a) violate any order, writ injunction,
decree, law, statute, rule or regulation applicable in any respect to the Management Company or with respect to the services to
be rendered by the Management Company hereunder or the assignment of the Inventions contemplated hereby or (b) require the consent,
approval, permission or other authorization of, or qualification or filing with or notice to, any court, arbitrator or other tribunal
or any governmental, administrative, regulatory or self-regulatory agency or any other third party.
	 	 	 

		iii.	This Agreement has been duly executed and delivered by the Management Company and constitutes a
legal, valid and binding agreement of the Management Company enforceable in accordance with its terms.
	 	 	 

		iv.	The Management Company is not a party to or otherwise subject to any agreements or restrictions
that would prohibit the Management Company from entering into this Agreement and carrying out the transactions contemplated by
this Agreement in accordance with the terms hereof, and this Agreement and the transactions contemplated hereby will not infringe
or conflict with, and are not inconsistent with, the rights of any other person or entity.
	 	 	 

		c.	Representations of the Principals. As an inducement to the Company to enter into this Agreement,
each Principal hereby represents and warrants to the Company as follows:
	 	 	 

		i.	Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated
herein nor compliance by the Principal with any of the provisions hereof will: (a) violate any order, writ injunction, decree,
law, statute, rule or regulation applicable in any respect to such Principal or with respect to the services to be rendered by
such Principal hereunder or the assignment of the Inventions contemplated hereby or (b) require the consent, approval, permission
or other authorization of, or qualification or filing with or notice to, any court, arbitrator or other tribunal or any governmental,
administrative, regulatory or self-regulatory agency or any other third party.
	 	 	 

		ii.	Such Principal is not a party to or otherwise subject to any agreements or restrictions that would
prohibit such Principal from entering into this Agreement and carrying out the transactions contemplated by this Agreement in accordance
with the terms hereof, and this Agreement and the transactions contemplated hereby will not infringe or conflict with, and are
not inconsistent with, the rights of any other person or entity.
	 	 	 
	

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		12.	Insurance. The Management Company shall at all times maintain insurance policies
in the name of the Management Company, in such amounts and having such terms as are reasonably required by the Company.
	 	 	 

		13.	Survival of Representations, Warranties and Covenants. The provisions of Sections
6, 7, 8, 9, 10, and 11 hereof shall survive the termination of this Agreement.
	 	 	 

		14.	Independent Contractor. The parties intend that the Management Company shall render
services hereunder as an independent contractor, and nothing herein shall be construed to be inconsistent with this relationship
or status. The Management Company shall not be entitled to any benefits paid by the Company to its employees. The Management Company
shall be solely responsible for any tax consequences applicable to the Management Company by reason of this Agreement and the relationship
established hereunder, and the Company shall not be responsible for the payment of any federal, state or local taxes or contributions
imposed under any employment insurance, social security, income tax or other tax law or regulation with respect to the Management
Company’s performance of services hereunder. The Management Company shall promptly pay its employees all amounts owed to
such employees. The Management Company shall comply with all applicable state, federal and local laws, including laws and regulations
covering wages and payroll withholding.
	 	 	 

		15.	Amendments. Any amendments to this Agreement shall be made in writing and signed
by all parties hereto.
	 	 	 

		16.	Enforceability; Remedies. If any provision of this Agreement shall be invalid or
unenforceable, in whole or in part, then such provision shall be deemed to be modified or restricted to the extent and in the manner
necessary to render the same valid and enforceable, or shall be deemed excised from this Agreement, as the case may require, and
this Agreement shall be construed and enforced to the maximum extent permitted by law as if such provision had been originally
incorporated herein as so modified or restricted or as if such provision had not been originally incorporated herein, as the case
may be. The Management Company shall reimburse the Company reasonable attorney's fees incurred by the Company in connection with
the collection or attempt to collect, any damages arising from the Management Company's failure to fulfill any provisions or responsibility
provided herein. The remedies set forth in this Agreement shall be cumulative and no one shall be construed as exclusive of any
other or of any remedy provided by law, and failure of any party to exercise any remedy at any time shall not operate as a waiver
of the right of such party to exercise any remedy for the same or subsequent default at any time thereafter.
	 	 	 

		17.	Governing Law, Venue and Jurisdiction. This Agreement shall be construed and interpreted
in accordance with the internal laws of the State of Massachusetts without giving effect to principles of conflicts of laws thereunder.
	 	 	 
	

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		18.	Assignment.
	 	 	 

		a.	By the Company. The rights and obligations of the Company under this Agreement shall inure
to the benefit of, and shall be binding upon, the successors and assigns of the Company.
	 	 	 

		b.	By the Management Company. This Agreement and the obligations created hereunder may not
be assigned by the Management Company, and any such purported assignment shall be null and void ab initio.
	 	 	 

		19.	Notices. All notices, requests, consents and other communications hereunder to any
party shall be deemed to be sufficient if contained in a written instrument delivered in person or duly sent by certified mail,
postage prepaid, by an overnight delivery service, charges prepaid, or by confirmed telecopy, in each case addressed to such party
at the address set forth below or such other address as may hereafter be designated in writing by the addressee to the addressor:
	 	 	 

 

	 	If to the Company:	LipimetiX Development, Inc.
	 	 	5 Commonwealth Road
	 	 	Natick, MA 01770
	 	 	Attention: Dennis I. Goldberg, Ph.D.
	 	 	Facsimile: 978-443-2364
	 	 	 
	 	with a copy to:	Capstone Therapeutics Corp.
	 	 	1275 West Washington Street, 
	 	 	Tempe, Arizona 85281
	 	 	Attention: John M. Holliman, III,
	 	 	Executive Chairman
	 	 	Facsimile: 602-682-7018
	 	 	 
	 	If to the Management Company:	Benu BioPharma, Inc
	 	 	c/o Dr. Dennis I. Goldberg, President
	 	 	50 Lands End Lane
	 	 	Sudbury, MA 01776
	 	 	Facsimile:(978) 443-2364

 

Any party may from time to time change its address for the purpose
of notices to that party by a similar notice specifying a new address, but no such change shall be deemed to have been given until
it is actually received by the party sought to be charged with its contents.

 

		20.	Waivers. No claim or right arising out of a breach or default under this Agreement
shall be discharged in whole or in part by a waiver of that claim or right unless the waiver is supported by consideration and
is in writing and executed by the aggrieved party hereto or its duly authorized agent. A waiver by any party hereto of a breach
or default by the other party hereto of any provision of this Agreement shall not be deemed a waiver of future compliance therewith,
and such provisions shall remain in full force and effect.

 

 

[Signature Page Follows.]

 

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IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed and delivered effective as of the Effective Date.

 

	 	 	"COMPANY"
	 	 	 
	 	 	LipimetiX Development, Inc.
	 	 	 
	 	 	By:  /s/ John M. Holliman, III
	 	 	Name: John M. Holliman, III
	 	 	Title: Chairman
	 	 	 
	 	 	 
	 	 	"MANAGEMENT COMPANY"
	 	 	 
	 	 	Benu BioPharma, Inc.
	 	 	 
	 	 	By: /s/ Dennis I. Goldberg
	 	 	Name: Dennis I. Goldberg, Ph.D.
	 	 	Title: President

 

 

The following parties are executing this Agreement with respect to, and intend to be
bound by, Sections 6 (Non-Disclosure and Non-Competition), 7 (Inventions, Discoveries and Ownership), 8 (Company Documentation),
9 (Injunctive Relief) and 11 (Representations and Warranties) only.

 

 

	 	 	/s/ Dennis I. Goldberg
	 	 	Dennis I. Goldberg, Ph.D.
	 	 	 
	 	 	 
	 	 	/s/ Phillip M. Friden
	 	 	Phillip M. Friden, Ph.D.
	 	 	 
	 	 	 
	 	 	/s/ Eric M. Morrel
	 	 	Eric M. Morrel, Ph.D.
	 	 	 

 

 

Signature Page - Management Agreement

 

     

     

    

 

EXHIBIT A

 

MANAGEMENT SERVICES

 

The following representatives of the Management Company shall be
appointed and shall serve in the designated roles and perform all duties associated with these roles, as described below.

 

Dennis I. Goldberg, Ph.D. – President

 

Phillip M. Friden, Ph.D. – Vice President, Product Development

 

Eric M. Morrel, Ph.D. – Vice President, Clinical Research

 

 

 

 

 

    	A-1

     

    

 

EXHIBIT B

 

MANAGEMENT FEE PAYMENT SCHEDULE

 

 

	 	 	 	 	 	 	 
	$80,000 per month	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

 

 

 

 

 

B-1EXECUTION

 

Exhibit
10.2

 

ACCOUNTING SERVICES Agreement

 

THIS ACCOUNTING SERVICES AGREEMENT ("Agreement"),
effective as of June 1, 2016 (the "Effective Date"), is made by and among LipimetiX Development, Inc., a Delaware
corporation (the "Company") and Capstone Therapeutics Corp., a Delaware corporation ("Capstone").

 

RECITALS:

 

WHEREAS, the Company desires to retain
Capstone to provide certain services for the Company as provided herein;

 

WHEREAS, Capstone desires to provide
such services to the Company as provided herein; and

 

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

AGREEMENT:

 

		1.	Engagement. The Company hereby engages Capstone to provide the services set forth
in Section 2 hereof to the Company, and Capstone hereby accepts such engagement, on the terms and conditions set forth in this
Agreement.
	 	 	 

		2.	Services. Capstone agrees to provide all accounting, treasury, funds management and
finance functions for the Company, including without limitation, maintaining the Company's books and records, managing the Company's
funds, including receipts and disbursements, overseeing the preparation of tax returns, and preparing financial statements (collectively,
the "Accounting Services"). Capstone shall report to the Board of Directors (“Board”) of the Company.
	 	 	 

		3.	Term. The term of Capstone's engagement hereunder shall commence on the Effective
Date and shall continue until the earlier to occur of (in either case, the "Term"):
	 	 	 

		a.	Mutual termination upon 60 days prior written agreement; or
	 	 	 

		b.	Termination by either party to the other party upon 60 days written notice; provided, that a termination
by the Company is subject to the provisions of Section 4.1 of the Stockholders’ Agreement.
	 	 	 

		4.	Compensation.
	 	 	 

		a.	Accounting Services Fee. In consideration of the Accounting Services, Capstone shall be
paid a service fee during the Term at the rate of $10,000 per month, payable in advance (the "Accounting Services Fee").
However, Accounting Fees will only be due and payable to the extent funding is available, as unanimously approved by the members
of the Board, and as reflected in the approved operation budget in effect at that time.
	 	 	 
	

     

     

    

	 	 	 

		b.	Reimbursement for Expenses. Capstone shall be reimbursed for out-of-pocket travel expenses
and for other out-of-pocket expenses approved in advance by the Company’s Board. All such expenses shall be documented and
submitted in accordance with the reimbursement policies of the Company in effect from time to time.
	 	 	 

		5.	Compliance with the Laws. Capstone shall at all times in performance of the Accounting
Services and any other obligations of Capstone in connection with this Agreement comply with all applicable federal, state or local
laws, rules, regulations and orders of any court, tribunal or administrative agency having jurisdiction over Capstone, the Company
or the Accounting Services (collectively, the "Laws"). Capstone shall, in connection with the Accounting Services,
make all commercially reasonable efforts to remain aware of all existing Laws and any new developments under the Laws, and the
requirements for compliance with such Laws, that are applicable to Capstone, the Company or the Accounting Services.
	 	 	 

		6.	Independent Contractor. The parties intend that Capstone shall render services hereunder
as an independent contractor, and nothing herein shall be construed to be inconsistent with this relationship or status. Capstone
shall not be entitled to any benefits paid by the Company to its employees. Capstone shall be solely responsible for any tax consequences
applicable to Capstone by reason of this Agreement and the relationship established hereunder, and the Company shall not be responsible
for the payment of any federal, state or local taxes or contributions imposed under any employment insurance, social security,
income tax or other tax law or regulation with respect to Capstone’s performance of services hereunder. Capstone shall promptly
pay its employees all amounts owed to such employees. Capstone shall comply with all applicable state, federal and local laws,
including laws and regulations covering wages and payroll withholding.
	 	 	 

		7.	Amendments. Any amendments to this Agreement shall be made in writing and signed
by all parties hereto.
	 	 	 

		8.	Enforceability; Remedies. If any provision of this Agreement shall be invalid or
unenforceable, in whole or in part, then such provision shall be deemed to be modified or restricted to the extent and in the manner
necessary to render the same valid and enforceable, or shall be deemed excised from this Agreement, as the case may require, and
this Agreement shall be construed and enforced to the maximum extent permitted by law as if such provision had been originally
incorporated herein as so modified or restricted or as if such provision had not been originally incorporated herein, as the case
may be. Capstone shall reimburse the Company reasonable attorney's fees incurred by the Company in connection with the collection
or attempt to collect, any damages arising from Capstone's failure to fulfill any provisions or responsibility provided herein.
The remedies set forth in this Agreement shall be cumulative and no one shall be construed as exclusive of any other or of any
remedy provided by law, and failure of any party to exercise any remedy at any time shall not operate as a waiver of the right
of such party to exercise any remedy for the same or subsequent default at any time thereafter.
	 	 	 
	

    	2

     

    

	 	 	 

		9.	Governing Law, Venue and Jurisdiction. This Agreement shall be construed and interpreted
in accordance with the internal laws of the State of Delaware without giving effect to principles of conflicts of laws thereunder.
	 	 	 

		10.	Assignment. This Agreement and the obligations created hereunder may not be assigned
by either party hereto, and any such purported assignment shall be null and void ab initio.
	 	 	 

		11.	Notices. All notices, requests, consents and other communications hereunder to any
party shall be deemed to be sufficient if contained in a written instrument delivered in person or duly sent by certified mail,
postage prepaid, by an overnight delivery service, charges prepaid, or by confirmed telecopy, in each case addressed to such party
at the address set forth below or such other address as may hereafter be designated in writing by the addressee to the addressor:
	 	 	 

	 	If to the Company:	LipimetiX Development, Inc.
	 	 	5 Commonwealth Road
	 	 	Natick, MA 01770
	 	 	Attention: Dennis I. Goldberg, Ph.D.
	 	 	Facsimile: 978-443-2364
	 	 	 
	 	If to Capstone:	Capstone Therapeutics Corp.
	 	 	1275 West Washington Street, 
	 	 	Tempe, Arizona 85281
	 	 	Attention: John M. Holliman, III,
	 	 	Executive Chairman
	 	 	Facsimile: 602-682-7018

 

Any party may from time to time change its address for
the purpose of notices to that party by a similar notice specifying a new address, but no such change shall be deemed to have been
given until it is actually received by the party sought to be charged with its contents.

 

		12.	Waivers. No claim or right arising out of a breach or default under this Agreement
shall be discharged in whole or in part by a waiver of that claim or right unless the waiver is supported by consideration and
is in writing and executed by the aggrieved party hereto or its duly authorized agent. A waiver by any party hereto of a breach
or default by the other party hereto of any provision of this Agreement shall not be deemed a waiver of future compliance therewith,
and such provisions shall remain in full force and effect.

 

 

[Signature Page Follows.]

 

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IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed and delivered effective as of the Effective Date.

 

 

	 	 	LipimetiX Development, Inc.
	 	 	 
	 	 	By: /s/ Dennis I. Goldberg
	 	 	Name: Dennis I. Goldberg, Ph.D
	 	 	Title: Manager
	 	 	 
	 	 	 
	 	 	Capstone Therapeutics Corp.
	 	 	 
	 	 	By:  /s/ John M. Holliman, III
	 	 	Name: John M. Holliman, III
	 	 	Title: Executive Chairman
	 	 	 

 

 

 

 

 

 

Signature Page - Accounting Services Agreement

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