Document:

Exhibit 10.14

 

 

STOCK
PURCHASE AND DEBT CONVERSION AGREEMENT

 

This Stock
Purchase and Debt Conversion Agreement (the “Agreement”) is made and entered into as of January 31,
2017 (the “Effective Date”) by and between Arog Pharmaceuticals Inc., a Delaware corporation (the “Company”),
and Jain Investments LLC, a Texas limited liability company (the “Purchaser”). Capitalized terms not
otherwise defined herein shall have the meanings assigned thereto in the Company’s Bylaws adopted pursuant to the Company’s
Agreement and Plan of Conversion, effective September 30, 2014 (the “Bylaws”).

 

WHEREAS,
the Company has agreed to issue Purchaser new shares of common stock (“Stock”) pursuant to the Company’s
Bylaws;

 

WHEREAS,
the Company entered into an initial Loan Agreement (the “First Loan Agreement”) dated June 3, 2015 with
Purchaser whereby Purchaser agreed to provide to the Company an operating line of credit (the “First Line of Credit”)
in an amount not to exceed $4,000,000.00, subject to repayment of principal and interest; and

 

WHEREAS,
the Company borrowed funds from Purchaser on the First Line of Credit, on the following amounts: $2,000,000.00 on June 3, 2015
and $2,000,000.00 on October 22, 2015;

 

WHEREAS,
the Company entered into a second Loan Agreement (the “Second Loan Agreement”) dated February 22, 2016
with Purchaser whereby Purchaser agreed to provide to the Company another operating line of credit (the “Second Line
of Credit”) in an amount not to exceed $4,000,000.00, subject to repayment of principal and interest; and

 

WHEREAS,
the Company borrowed funds from Purchaser on the Second Line of Credit, on the following amounts: $2,000,000.00 on February 22,
2016 and $2,000,000.00 on August 23, 2016;

 

WHEREAS,
the First Loan Agreement and Second Loan Agreement are referred to collectively herein as the “Loan Agreements,”
and the First Line of Credit and Second Line of Credit are referred to collectively herein as the “Lines of Credit.”

 

WHEREAS,
the Company desires to repay the Lines of Credit from Purchaser in full in Stock, and Purchaser desires to acquire additional
Stock of the Company as payment for the Lines of Credit;

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree
as follows:

 

Article
I

PURCHASE OF NEW STOCK AND LINES OF CREDIT CONVERSION

 

Section
1.1           Lines
of Credit Conversion. On the Effective Date and subject to the terms and conditions of this Agreement, Company hereby
provides to the Purchaser, and Purchaser hereby accepts from the Company, an aggregate of fifty thousand three hundred sixty-four
(50,364) shares of the Company’s Stock, with a per share value of $163.22 each and an aggregate value of eight million two-hundred
twenty thousand three hundred twenty dollars and 00/100 ($8,220,320.00) (the “Conversion Value”) as
full payment of the Lines of Credit.

 

    Page 1 of 9 

     

    

 

Section
1.2           Purchase
of New Stock. On the Effective Date and subject to the terms and conditions of this Agreement, Purchaser hereby purchases
from the Company, and Company hereby sells to Purchaser, an aggregate of eighteen thousand three hundred eighty-one (18,381) shares
of the Company’s Stock, at an aggregate purchase price of three million one hundred forty-six dollars and 82/100 ($3,000,146.82)
(the “Purchase Price”), or $163.22 per share.

 

Section
1.3           Description
of Stock. As used in this Agreement, the term Stock refers to the common stock purchased under this Agreement and includes
all securities received (i) in replacement of the Stock, (ii) as a result of any division or split of Stock or other equity interests
in the Company, and (iii) in replacement of the Stock in connection with a combination, exchange, merger, recapitalization, reclassification,
reorganization, consolidation or other business combination transaction involving the Company or otherwise.

 

Article
II

PAYMENT AND CLOSING

 

Section
2.1           Deliveries
by Purchaser. Purchaser hereby delivers to the Company: (i) a duly executed copy of this Agreement, and (ii) payment of
the Purchase Price in the form a Loan Termination Agreement and Release of all obligations related to the Loan Agreements.

 

Subject to the terms and conditions
hereinafter stated, Purchaser will hereby acknowledge receipt of the full payment of the Loan Agreements, the principal of which
is eight million dollars ($8,000,000) and the accrued interest due as of January 31, 2017 is $220,320.00. The Purchaser therefore
releases the Company from all obligations under the Loan Agreements and this release shall be binding upon the Lender’s
successors, legal representatives, and assigns.

 

The Purchase
Price is paid by execution of the Loan Termination Agreement and Release in the form attached hereto as Exhibit A at closing simultaneously
with the execution of this Agreement.

 

Article
III

DELIVERIES BY THE COMPANY

 

Section
3.1           Deliveries
by the Company. Upon its receipt of the entire Purchase Price and all the documents to be executed and delivered by Purchaser
to the Company under Section 2.1, the Stock will be deemed to have been issued.

 

Article
IV

REPRESENTATIONS AND WARRANTIES OF PURCHASER

 

Purchaser
represents and warrants to the Company that:

 

Section
4.1           Investment
Intent. Purchaser (i) is an “accredited investor” as defined in Regulation D of the Securities Act of 1933,
as amended (the “1933 Act”) and (ii) is purchasing the Shares for Purchaser’s own account for
investment purposes only and not with a view to, or for sale in connection with, a distribution of the Shares within the meaning
of the Act. Purchaser has no present intention of selling or otherwise disposing of all or any portion of the Shares and no one
other than Purchaser has any beneficial ownership of any of the Shares.

 

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Section
4.2           Access
to Information. Purchaser has had access to all information regarding the Company and its present and prospective business,
assets, liabilities and financial condition that Purchaser reasonably considers important in making the decision to purchase the
Stock, and Purchaser has had ample opportunity to ask questions of the Company’s representatives concerning such matters
and this investment.

 

Section
4.3           Understanding
of Risks. Purchaser is a founder of the Company and is fully aware of: (i) the highly speculative nature of the investment
in the Stock; (ii) the financial hazards involved; (iii) the lack of liquidity of the Stock and the restrictions on transferability
of the Stock (e.g., that Purchaser may not be able to sell or dispose of the Stock or use them as collateral for loans); (iv)
the qualifications and backgrounds of the management of the Company; and (v) the tax consequences of investment in the Stock.
Purchaser is in a financial position sufficient to enable him, her or it to (x) hold such Stock for an indefinite period of time
and (y) bear the economic risk of loss and withstand a complete loss of his, her or its investment in the Stock.

 

Section
4.4           Purchaser’s
Qualifications. Purchaser has a preexisting personal or business relationship with the Company and/or certain of its officers
and/or directors of a nature and duration sufficient to make Purchaser aware of the character, business acumen and general business
and financial circumstances of the Company and/or such officers and directors. By reason of Purchaser’s business or financial
experience, Purchaser is capable of evaluating the merits and risks of this investment, has the ability to protect Purchaser’s
own interests in this transaction and is financially capable of bearing a total loss of this investment. Purchaser is experienced
in evaluating and investing in companies such as the Company and is familiar with the risks associated with the business and operations
of the Company.

 

Section
4.5           No
General Solicitation. At no time was Purchaser presented with or solicited by any publicly issued or circulated newspaper,
mail, radio, television or other form of general advertising or solicitation in connection with the offer, sale and purchase of
the Stock.

 

Section
4.6           Compliance
with Securities Laws. Purchaser understands and acknowledges that, in reliance upon the representations and warranties
made by Purchaser herein, the Stock are not being registered with the Securities and Exchange Commission (“SEC”)
under the 1933 Act or being qualified under the Texas Securities Act, as amended (the “Act”) or under
the blue sky laws of any other state, but instead are being issued under an exemption or exemptions from the registration and
qualification requirements of the 1933 Act, the Act and the applicable blue sky laws of any other state in which such registration
and qualification is or may be necessary, which exemptions impose certain restrictions on Purchaser’s ability to transfer
the Stock.

 

Section
4.7           Restrictions
on Transfer. Purchaser understands that (i) the Stock are not registered under the 1933 Act on the grounds that the Company
intends the sale and the issuance of securities hereunder to be exempt from registration under the 1933 Act pursuant to Regulation
D thereof, and that the Company’s reliance on such exemption is predicated on the Purchaser’s representations set
forth herein, and (ii) Purchaser may not transfer any Stock unless such Stock are registered under the 1933 Act and qualified
under the Act and the blue sky laws of any other state in which such qualification is or may be necessary or unless, in the opinion
of counsel to the Company, exemptions from such registration and qualification requirements are available, and in the absence
of an effective registration statement covering the Stock or an available exemption from registration under the 1933 Act and applicable
state securities laws, the Stocks must be held indefinitely. Purchaser understands that only the Company may file a registration
statement with the SEC, the Texas Securities Commissioner or the securities commissioner of any other state and that the Company
is under no obligation to do so with respect to the Stock. Purchaser has also been advised that exemptions from registration and
qualification may not be available or may not permit Purchaser to transfer all or any of the Stock in the amounts or at the times
proposed by Purchaser. Purchaser understands that any certificates representing the Stock may bear a restrictive legend to this
effect.

 

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Section
4.8           Rule
144. In addition, Purchaser has been advised that SEC Rule 144 promulgated under the 1933 Act, which permits certain limited
sales of unregistered securities, is not presently available with respect to the Stock and, in any event, requires that the Stock
be held for a minimum of one (1) year, and in certain cases two (2) years, after they have been purchased and paid for (within
the meaning of Rule 144), before they may be resold under Rule 144. Purchaser understands that Rule 144 may indefinitely restrict
transfer of the Stock so long as Purchaser remains an “affiliate” of the Company and “current public information”
about the Company (as defined in Rule 144) is not publicly available.

 

Article
V

RIGHTS AS MEMBER

 

Section
5.1           Rights
as Member. Subject to the terms and conditions of this Agreement and the Bylaws, Purchaser will have all of the rights
of a shareholder of the Company with respect to the Stock from and after the date that Purchaser delivers payment of the Purchase
Price until such time as Purchaser disposes of the Stock.

 

Article
VI

TAX CONSEQUENCES

 

Section
6.1           Tax
Consequences. PURCHASER UNDERSTANDS THAT PURCHASER MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF PURCHASER’S PURCHASE
OR DISPOSITION OF THE STOCK. PURCHASER REPRESENTS (i) THAT PURCHASER HAS CONSULTED WITH A TAX ADVISER THAT PURCHASER DEEMS ADVISABLE
IN CONNECTION WITH THE PURCHASE OR DISPOSITION OF THE STOCK AND (ii) THAT PURCHASER IS NOT RELYING ON THE COMPANY FOR ANY TAX
ADVICE.

 

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Article
VII

RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS

 

Section
7.1           Legends.
Purchaser understands and agrees that the Company will place the legends set forth below or similar legends on the certificate(s),
if any are issued, evidencing the Stock, together with any other legends that may be required by state or federal securities laws,
the Company’s Bylaws, any other agreement between Purchaser and the Company or any agreement between Purchaser and any third
party:

 

Section
7.2           THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR
UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED
EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS IN ACCORDANCE WITH APPLICABLE REGISTRATION REQUIREMENTS
OR AN EXEMPTION THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER
THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES
LAWS. THIS CERTIFICATE MUST BE SURRENDERED TO THE COMPANY OR ITS TRANSFER AGENT AS A CONDITION PRECEDENT TO THE SALE, TRANSFER,
PLEDGE OR HYPOTHECATION OF ANY INTEREST IN ANY OF THE SECURITIES REPRESENTED HEREBY.

 

Section
7.3           THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE, INCLUDING A LOCK-UP PERIOD IN
THE EVENT OF A PUBLIC OFFERING.

 

Section
7.4           Stop-Transfer
Instructions. Purchaser agrees that, to ensure compliance with the restrictions imposed by this Agreement, the Company
may issue appropriate “stop-transfer” instructions to its transfer agent, if any, and if the Company transfers its
own securities, it may make appropriate notations to the same effect in its own records.

 

Section
7.5           Refusal
to Transfer. The Company will not be required (i) to transfer on its books any Stock that have been sold or otherwise
transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Stock, or to accord the
right to vote or be allocated profits and losses or pay distributions, to any purchaser or other transferee to whom such Stock
have been so transferred.

 

Section
7.6           Compliance
with Laws and Regulations. The issuance and transfer of the Stock will be subject to and conditioned upon compliance by
the Company and Purchaser with all applicable state and federal laws and regulations and with all applicable requirements of any
stock exchange or automated quotation system on which the Company’s Stock may be listed or quoted at the time of such issuance
or transfer.

 

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Article
VIII

GENERAL PROVISIONS.

 

Section
8.1           Assignments:
Successors and Assigns. The Company may assign any of its rights and obligations under this Agreement. Any assignment
of rights and obligations by any other party to this Agreement requires the Company’s prior written consent. This Agreement,
and the rights and obligations of the parties hereunder, will be binding upon and inure to the benefit of their respective successors,
assigns, heirs, executors, administrators and legal representatives.

 

Section
8.2           Governing
Law. This Agreement will be governed by and construed in accordance with the laws of the State of Delaware, without giving
effect to that body of laws pertaining to conflict of laws.

 

Section
8.3           Notices.
Any and all notices required or permitted to be given to a party pursuant to the provisions of this Agreement will be in writing
and will be effective and deemed to provide such party sufficient notice under this Agreement on the earliest of the following:
(i) at the time of personal delivery, if delivery is in person; (ii) at the time of transmission by facsimile, addressed to the
other party at its facsimile number specified herein (or hereafter modified by subsequent notice to the parties hereto), with
confirmation of receipt made by both telephone and printed confirmation sheet verifying successful transmission of the facsimile;
(iii) one (1) business day after deposit with an express overnight courier for United States deliveries, or two (2) business days
after such deposit for deliveries outside of the United States; or (iv) five (5) business days after deposit in the United States
mail by certified mail (return receipt requested) for United States deliveries.

 

All notices for delivery outside
the United States will be sent by facsimile or by express courier. All notices not delivered personally or by facsimile will be
sent with postage and/or other charges prepaid and properly addressed to the party to be notified at the address or facsimile
number set forth below the signature lines of this Agreement or at such other address or facsimile number as such other party
may designate by one of the indicated means of notice herein to the other party hereto. Notices by facsimile shall be machine
verified as received.

 

Section
8.4           Further
Assurances. The parties agree to execute such further documents and instruments and to take such further actions as may
be reasonably necessary to carry out the purposes and intent of this Agreement.

 

Section
8.5           Titles
and Headings. The titles, captions and headings of this Agreement are included for ease of reference only and will be
disregarded in interpreting or construing this Agreement. Unless otherwise specifically stated, all references herein to “sections”
and “exhibits” will mean “sections” and “exhibits” to this Agreement.

 

Section
8.6           Counterparts.
This Agreement may be executed in any number of counterparts, each of which when so executed and delivered will be deemed an original,
and all of which together shall constitute one and the same agreement.

 

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Section
8.7           Severability.
If any provision of this Agreement is determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or
unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent of the parties hereto.
If such clause or provision cannot be so enforced, such provision shall be stricken from this Agreement and the remainder of this
Agreement shall be enforced as if such invalid, illegal or unenforceable clause or provision had (to the extent not enforceable)
never been contained in this Agreement. Notwithstanding the forgoing, if the value of this Agreement based upon the substantial
benefit of the bargain for any party is materially impaired, which determination as made by the presiding court or arbitrator
of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations.

 

Section
8.8           Facsimile
Signatures. This Agreement may be executed and delivered by facsimile and upon such delivery the facsimile signature will
be deemed to have the same effect as if the original signature had been delivered to the other party. The original signature copy
shall be delivered to the other party by express overnight delivery. The failure to deliver the original signature copy and/or
the nonreceipt of the original signature copy shall have no effect upon the binding and enforceable nature of this Agreement.

 

Section
8.9           Amendment
and Waivers. This Agreement may be amended only by a written agreement executed by each of the parties hereto. No amendment
of or waiver of, or modification of any obligation under this Agreement will be enforceable unless set forth in a writing signed
by the party against which enforcement is sought. Any amendment effected in accordance with this section will be binding upon
all parties hereto and each of their respective successors and assigns. No delay or failure to require performance of any provision
of this Agreement shall constitute a waiver of that provision as to that or any other instance. No waiver granted under this Agreement
as to any one provision herein shall constitute a subsequent waiver of such provision or of any other provision herein, nor shall
it constitute the waiver of any performance other than the actual performance specifically waived.

 

Section
8.10       Entire Agreement.
This Agreement and the documents referred to herein constitute the entire agreement and understanding of the parties with respect
to the subject matter of this Agreement, and supersede all prior understandings and agreements, whether oral or written, between
or among the parties hereto with respect to the specific subject matter hereof.

 

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IN WITNESS
WHEREOF, the Company and the Purchaser have caused this Agreement to be executed by their respective duly authorize d representatives
as of the Effective Date.

 

	COMPANY

    

    AROG PHARMACEUTICALS, INC.	 	PURCHASER

    

    JAIN INVESTMENTS LLC
	 	 	 
	 	 	 
	By:	 	 	By:	 
	 	Dr. Yinay K. Jain 	 	 	Name:Dr. Yinay K. Jain
	 	CEO	 	 	Manager

 

 

 

 

 

 

 

Signature
Page to Stock Interest Purchase and Debt Conversion Agreement

 

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EXHIBIT
A

Loan Termination Agreement and Release

 

This Termination
Agreement and Release (this “Agreement”) is made this 31st day of January, 2017, by and between Jain
Investments, LLC (“Lender”) and Arog Pharmaceuticals, Inc. (“Borrower”).

 

The Lender
hereby acknowledges receipt of the full payment of the Loan Agreements dated June 3, 2015 and February 22, 2016 in the total principal
loan amount of $8,000,000.00 as well as receipt of full payment of interest accrued of $220,320.00.

 

The Lender
therefore releases the Borrower from all obligations thereunder and this release shall be binding upon the Lender’s successors,
legal representatives and assigns.

 

The Lender
warrants that the Loan Agreements referenced have not been assigned, ceded, transferred or sold to a third party and warrants
his authority as Note holder to issue this Loan Agreement Release.

 

Signed on this 31st day of January,
2017.

 

	JAIN INVESTMENTS, LLC	 
	 	 
	 	 
	By:	 	 
	 	Vinay K. Jain	 
	 	Manager	 

 

 

    Page 9 of 9Exhibit 10.15

 

 

LOAN AGREEMENT

 

THIS LOAN AGREEMENT
(this “Loan Agreement”) dated effective as of September 8, 2017 (the “Effective Date”) is
made and executed by and between Jain Investments, LLC, a Texas limited liability company (the “Lender”) and
Arog Pharmaceuticals, Inc., a Delaware corporation (the “Borrower”).

 

WHEREAS, Lender wishes
to provide, and Borrower wishes to accept, certain loans pursuant to reasonable terms as set forth herein.

 

NOW THEREFORE, in consideration
of the premises set forth above and the promises contained herein, the sufficiency and receipt of which are hereby acknowledged,
the parties agree as follows:

 

1.  
Line of Credit. Lender agrees to make available to Borrower an operating line of credit (the “Line of Credit”)
in an amount of principal not to exceed Four Million and No/100 Dollars ($4,000,000) (the “Maximum Amount”).
Advances shall be made under the Line of Credit only upon written request, signed by an authorized officer of Borrower, specifying
in reasonable detail the intended use of the funds and the requested amount of principal to be advanced, up to the Maximum Amount.
All funds advanced pursuant to this Section 1 (each an “Advance”) shall be evidenced by the Promissory
Note substantially in the form attached hereto as Exhibit A (the “Promissory Note”). Borrower authorizes
Lender to endorse on Schedule A to the Promissory Note the date and principal amount of each Advance, with each endorsement to
be binding on the Borrower absent manifest error; provided that the failure of Lender to make any such endorsement shall not affect
the obligation of Borrower to repay each Advance and to pay interest accrued thereon and other sums payable under the Promissory
Note.

 

2.  
First Advance. Upon signing this Agreement, Lender agrees to make a first Advance to Borrower in the amount of One
Million and No/100 Dollars ($1,000,000), to be used for general corporate business purposes (the “First Advance”).
The First Advance shall bear interest from the date advanced until the date of repayment at a simple interest rate equal to 2.58%
per annum. The parties hereby agree and acknowledge that the interest rate of the First Advance set forth herein is consistent
with prevailing fair market rates for similar loans. Accrued interest on the First Advance shall be due and payable at maturity.
Lender’s calculations of accrued interest on the First Advance shall be binding and conclusive in the absence of manifest
error.

 

3.  
Interest. All subsequent Advances after the First Advance under the Line of Credit shall bear interest from the date
of such Advance until the date of repayment at such simple annual interest rate as shall be fixed on the date the Advance is made
in accordance with the interest rate. Such interest shall be calculated based on a 365-day year and shall be paid from the actual
number of days elapsed. Accrued interest on amounts borrowed under this Agreement shall be due and payable at maturity. Lender’s
calculations of accrued interest hereunder shall be binding and conclusive in the absence of manifest error.

 

4.  
Repayment. The outstanding principal balance and accrued but unpaid interest under the Promissory Note is due and
payable in full upon the demand by Lender. Prior to such

 

     

     

    

demand, Borrower shall have the right,
upon payment of all accrued but unpaid interest, to repay without premium or penalty, all or part of the outstanding principal
under the Promissory Note. Any such repayment of principal by the Borrower, unless the repayment is the result of a demand for
payment in full by the Lender, shall increase the availability of funds which the Borrower may re-borrow up to the Maximum Amount.

 

5.  
Term. The term of this Agreement shall be for a period of ten (10) years from the Effective Date. Thereafter, this
Agreement may be renewed for additional five-year terms upon the mutual written consent of both parties. If not renewed, this Agreement
shall expire, and the outstanding principal balance of all Advances shall mature and be due and payable in full, together with
all interest thereon.

 

6.  
Representations. Borrower makes the following representations and warranties, which shall survive the execution of
this Loan Agreement and the making of each Advance hereunder:

 

a.  
Borrower is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware;

 

b.  
Borrower has the corporate power to enter into and perform this Loan Agreement and to borrower hereunder and has taken all necessary
corporate actions to authorize the borrowings upon the terms and conditions of this Loan Agreement and to authorize the borrowings
upon the terms and conditions of this Loan Agreement and to authorize the execution, deliver and performance of this Loan Agreement
in accordance with its terms; and

 

c.  
This Loan Agreement and the Promissory Note are valid and legally enforceable against the Borrower in accordance with their terms
except to the extent that enforcement thereof may be limited by bankruptcy, insolvency, or similar laws affecting the enforcement
of creditors’ rights generally.

 

7.
 Covenants.

 

a.  
In the event of a sale, merger, consolidation, reorganization or similar transaction or series of transactions as a result of which
the stockholders of Borrower immediately prior to such transaction or series of transactions hold less than a majority of the equity
entitled to vote in the election of directors of Borrower (a “Change of Control”) or an Initial Public Offering
(an “IPO”), Lender may at any time thereafter, with or without notice to the Borrower, terminate its commitment
hereunder, and declare the Promissory Note, together with accrued interest thereon and any other amounts payable hereunder to be,
and the Promissory Note and all such amounts shall become, immediately due and payable without presentment, demand, protest or
other notice of any kind, all of which are hereby waived by Borrower;

 

b.  
So long as this Loan Agreement shall remain in effect, Borrower shall not, without the consent of Lender, consolidate or merge
with or into any other person or convey, transfer or lease all or substantially all of its assets to any person or entity; and

 

 

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c.  
So long as this Loan Agreement shall remain in effect, the Borrower shall not mortgage, lease or allow any liens upon its properties
except liens which have not matured (including any which Borrower is contesting in good faith by adequate proceedings).

 

8.  
Events of Default. Each of the following, if unremedied, shall constitute an event of default under this Loan Agreement

 

a.  
Borrower’s default in the payment when due of any principal balance under this Loan Agreement or of any Advance;

 

b.  
Borrower’s default for five (5) days in the payment when due of any interest under this Loan Agreement or of any Advance;

 

c.  
Borrower’s consent to the appointment of a receiver, trustee or liquidator of all or substantially all of its assets due
to Borrower’s inability to meet debts,

 

d.
  or Borrower’s filing of bankruptcy;

 

e.  
The filing against Borrower of any receivership, bankruptcy or other similar proceedings unless same is stayed or dismissed within
sixty (60) days;

 

f.  
Any material misrepresentation or omission made by Borrower in this Loan Agreement; and Borrower’s failure to observe or
perform any covenant contained in this Loan Agreement.

 

In the event of default, the maturity dates
of the Promissory Note, if any, shall be accelerated, Lender shall have the right to demand payment by Borrower of any and all
funds outstanding under this Loan Agreement, and Lender’s commitment shall terminate immediately.

 

9. Increased
Costs. If Lender’s cost of borrowing is increased by an amount deemed by Lender in its sole discretion to be material,
Lender will provide notice thereof to Borrower as soon as practicable and Borrower shall compensate Lender for all such increased
costs. Borrower may, upon receiving such a notice, terminate any applicable Advance upon payment of all outstanding amounts owed
with respect thereto, including increased costs accrued to the date of such termination and owing to Lender pursuant to the foregoing.
Any certificate of Lender in respect of the foregoing will be conclusive and binding upon the Borrower, absent manifest error,
provided that the Lender shall determine the amounts owing to it in good faith using any reasonable averaging and attribution methods.

 

10. Attorneys’
Fees. In the event of any litigation or other action to enforce Borrower’s obligations hereunder, Lender shall be
entitled to recover, in addition to any other damages, its reasonable attorneys’ fees, and all other costs and expenses incurred
in connection with such litigation or action.

 

11. Notices.
The parties shall send notices in writing, references this Loan Agreement. Notices shall be deemed given when: (i) delivered personally;
(ii) one (1) day after having sent by facsimile, with a copy sent promptly by registered or certified mail, return receipt requested,
postage prepaid; (iii) five (5) days after having been sent by registered or certified

 

 

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mail, return receipt requested, postage
prepaid; or (iv) two (2) days after deposit with a nationally recognized overnight carrier, with written verification of receipt.
Notice shall be given to the parties to the addressees set forth below (or to such other addressee as a party subsequently designates):

 

If to Jain Investments LLC:

 

Attn: Vinay Jain, Manager

Two Lincoln Centre

5420 LBJ Freeway, Ste 410

Dallas, Texas 75240

214.593.0500

214.594.0002 fax

 

If to Arog Pharmaceuticals, Inc.:

 

Attn: Vinay Jain, Chief Executive Officer

Two
Lincoln Centre

5420 LBJ Freeway, Ste 410

Dallas, Texas 75240

214.593.0500

214.594.0002 fax

 

12.
  Miscellaneous.

 

a.  
This Loan Agreement and the rights, duties and obligations contained herein shall be solely for the benefit of the parties hereto
and their permitted assignees and transferees, and no third person or entities shall have any rights hereunder as a third-party
beneficiary, or otherwise.

 

b.  
Borrower shall not assign any of its rights or duties under this Loan Agreement or the Promissory Note, whether voluntarily or
by operation of law, without Lender’s prior written consent.

 

c.  
Any provision of this Loan Agreement which is invalid, illegal or unenforceable in any respect in any given instance in any jurisdiction
shall, as to such instance and jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without
in any way affecting the validity, legality or enforceability of the remaining provisions hereof, and any such invalidity, illegality
or unenforceability in any instance in any jurisdiction shall not invalidate or in any way affect the validity, legality or enforceability
of such provisions in any other instance or in any other jurisdiction. A waiver by either party with respect to the breach of any
provision hereof shall not be deemed a waiver of any other provision in this Loan Agreement or of a subsequent breach of the same
provision.

 

d.  
This Loan Agreement, together with the attached exhibits, constitutes the entire agreement between the parties hereto with respect
to its subject matter and supersedes all prior and contemporaneous written or oral agreements or promises. This Loan Agreement
shall be modified only by a written instrument executed by both parties.

 

 

    4 

     

    

e.  
Section headings are inserted in this Loan Agreement for convenience of reference only and shall not be used to construe any provision
hereof.

 

f.  
This Loan Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including
pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission
method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for
all purposes

 

g.  
In the event any interest is paid on the Promissory Note that is deemed to be in excess of the then legal maximum rate, then that
portion of the interest payment representing an amount in excess of the then legal maximum rate shall be deemed a payment of principal
and applied against the principal of the Promissory Note.

 

h.  
This Loan Agreement and the Promissory Note shall be construed in accordance with and governed in all other respects by the internal
substantive laws of the State of Texas without regard to its provisions concerning choice of law.

 

13.           
WAIVER OF JURY TRIAL. BORROWER AND LENDER HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS LOAN AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

[Signature Page Follows]

 

 

    5 

     

    

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

 

 

	LENDER:

Jain Investments LLC
	 
	 
	By:	/s/ Vinay K. Jain
	 	Vinay K. Jain, Manager

 

 

 

	BORROWER:

Arog Pharmaceuticals, Inc.
	 
	 
	By:	/s/ Vinay K. Jain
	 	Vinay K. Jain
	 	Chief Executive Officer

 

 

 

 

 

 

 

SIGNATURE PAGE TO LOAN AGREEMENT

 

     

     

    

EXHIBIT A

 

PROMISSORY NOTE

 

FOR VALUE RECEIVED, the undersigned promises and agrees as follows:

 

1.  
Promise to Pay. For value received, Arog Pharmaceuticals, Inc. (“Borrower”) promises to pay to
the order of Jain Investments, LLC (“Lender”), at the address of Lender at Two Lincoln Centre, 5420 LBJ Freeway,
Ste 410, Dallas, Texas 75240, the principal sum of each cash advance (each an “Advance”) made by Lender to Borrower
pursuant to the terms and conditions as set forth in the Loan Agreement by and between the Borrower and Lender dated September
8, 2017, as same may be amended form time to time (the “Loan Agreement”). Said Loan Agreement is incorporated
herein as if fully set forth. Terms defined in the Loan Agreement are used herein with the same meaning.

 

2.  
Borrower promises to pay interest on each Advance from the date of such Advance to the date of repayment in full of such Advance
on the dates and at the rate or rates provided for in the Loan Agreement.

 

3.  
Reference is made to the Loan Agreement for provisions regarding demand, prepayment, default and acceleration of maturity. All
payments of principal and interest shall be made in lawful money of the United States.

 

4.  
Borrower hereby authorizes Lender to endorse on the grid attached hereto Schedule A the date and principal amount of each Advance,
each endorsement to be binding on the Borrower absent manifest error; provided that Lender’s failure to make any such endorsement
shall not affect Borrower’s obligation to repay each Advance and to pay interest accrued thereon and other sums payable hereunder.
The aggregate principal amount of all Advances outstanding at any time under this Promissory Note shall not exceed Four Million
and No/100 Dollars ($4,000,000) at any one time.

 

5.  
Borrower specifically and knowingly waives any right to offset or any other similar defense to this Promissory Note, and Borrower
waives presentment, notice of nonpayment or dishonor, protest, notice of protest, and all other notices in connection with the
delivery, acceptance, performance, default, or enforcement of this Promissory Note.

 

6.  
This Promissory Note shall be governed and construed in accordance with the internal substantive laws of the State of Texas, exclusive
of its provisions regarding conflicts of law.

 

[Signature Page Follows]

 

 

 

 

 

 

Promissory
Note 

     

     

    

IN WITNESS WHEREOF, the Borrower has executed
this Promissory Note as of the day and year set forth above.

 

 

	 	
        BORROWER:

         

        Arog Pharmaceuticals, Inc.

         

	 	 
	 	By:	 
	 	Name:	Vinay K. Jain
	 	Title:	President

 

 

Schedule
A to Promissory Note

 

     

     

    

SCHEDULE A TO PROMISSORY NOTE

 

Arog Pharmaceuticals, Inc.

 

 

	Date of

Advance	Amount of Advance	Principal

Balance	Date of

Advance	Amount of Advance	Principal

Balance
	 	$	$	 	$	$
	 	$	$	 	$	$
	 	$	$	 	$	$
	 	$	$	 	$	$
	 	$	$	 	$	$
	 	$	$	 	$	$
	 	$	$	 	$	$
	 	$	$	 	$	$
	 	$	$	 	$	$
	 	$	$	 	$	$
	 	$	$	 	$	$
	 	$	$	 	$	$
	 	$	$	 	$	$
	 	$	$	 	$	$
	 	$	$	 	$	$
	 	$	$	 	$	$
	 	$	$	 	$	$

 

 

 

Schedule
A to Promissory Note

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