Document:

Exhibit 10.2

 

NGL ENERGY PARTNERS LP

 

WARRANT TO PURCHASE COMMON UNITS

 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD OR OFFERED FOR SALE, PLEDGED OR HYPOTHECATED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OR OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, SUCH WARRANTS AND THE SECURITIES ISSUABLE UPON EXERCISE OF SUCH WARRANTS MAY ONLY BE TRANSFERRED IF THE TRANSFER AGENT FOR SUCH WARRANTS AND THE SECURITIES ISSUABLE UPON EXERCISE OF SUCH WARRANTS HAS RECEIVED DOCUMENTATION SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT.

 

	
Original   Issue Date: [·]
    	
Warrant Certificate No.: [·]  
    

 

FOR VALUE RECEIVED, NGL Energy Partners LP, a Delaware limited partnership (the “Partnership”), hereby certifies that                , a                , or its registered assigns (the “Holder”) is entitled to purchase from the Partnership            Common Units(1) at a purchase price per unit of $0.01 (the “Exercise Price”), all subject to the terms, conditions and adjustments set forth below in this Warrant.  Certain capitalized terms used herein are defined in Section 1 hereof.

 

This Warrant is one of a series of like tenor issued by the Partnership pursuant to the terms of the Class A Convertible Preferred Unit and Warrant Purchase Agreement, dated as of April 21, 2016 (the “Original Purchase Agreement”), between the Partnership and the Purchasers named on Schedule A thereto (the “Original Purchasers”), as amended by the Amendment thereto, dated as of June 23, 2016 (the Original Purchase Agreement, as so amended, the “Purchase Agreement”), by and among the Partnership, the Original Purchasers and NGL CIV A, LLC, a Delaware limited liability company (such entity, together with the Original Purchasers, the “Purchasers”).

 

1.             Definitions.  As used in this Warrant, the following terms have the respective meanings set forth below:

 

“Aggregate Exercise Price” means an amount equal to the product of (a) the number of Warrant Units in respect of which this Warrant is then being exercised pursuant to Section 3 hereof, multiplied by (b) the Exercise Price.

 

“Board” means the board of directors of the NGL Energy Holdings LLC, the general partner of the Partnership.

 

(1)  The aggregate number of Common Units issuable upon exercise of all of the Warrants will be equal to 4.2% of the Common Units issued and outstanding immediately prior to the close of this transaction.

 

 

“Board Observation Rights Agreement” means that certain Amended and Restated Board Representation and Observation Rights Agreement, dated June 24, 2016, by and among the General Partner, the Partnership, Highstar Capital IV, L.P. and the Purchasers.

 

“Business Day” means any day, except a Saturday, Sunday or legal holiday, on which banking institutions in the cities of New York, New York or Tulsa, Oklahoma are authorized or obligated by law or executive order to close.

 

“Buy-in” has the meaning set forth in Section 3(h).

 

“Buy-in Price” has the meaning set forth in Section 3(h).

 

“Change of Control” means the occurrence of any of the following events: (i) the current owners of the General Partner have ceased to directly or indirectly own at least 50% of the voting stock and the membership interests of the General Partner (other than in connection with a Qualified IPO of the General Partner); (ii) the Partnership’s Common Units are no longer publicly traded on the New York Stock Exchange or another national securities exchange; (iii) the sale, lease, transfer, conveyance or other disposition (including by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of the Partnership and its subsidiaries taken as a whole to any “person” (as such term is used in Sections 13(d) of the Exchange Act); (iv) the General Partner withdraws or is removed by the limited partners of the Partnership in accordance with the terms of the Partnership Agreement; (v) the dissolution or liquidation of the Partnership or the General Partner (other than in connection with a bankruptcy proceeding or statutory winding up); (vi) any other transaction pursuant to which the General Partner or any of its affiliates exercises its rights to purchase all of the common units of the Partnership pursuant to Section 15.1 of the Partnership Agreement; and (vii) any transaction that would constitute a “Change of Control” under the Indentures (whether or not still in effect).

 

“Common Units” means common units representing limited partner interests in the Partnership, the terms of which are set forth in the Partnership Agreement.

 

“Common Units Deemed Outstanding” means, at any given time, the sum of (a) the number of Common Units actually outstanding at such time, plus (b) the number of Common Units issuable upon conversion, exercise or exchange of Convertible Securities actually outstanding at such time, including, for the avoidance of doubt, Warrants in the series issued by the Partnership pursuant to the Purchase Agreement, in each case, regardless of whether the Convertible Securities are actually convertible, exercisable or exchangeable at such time; provided, that Common Units Deemed Outstanding at any given time shall not include units owned or held by or for the account of the Partnership.

 

“Convertible Securities” means any warrants or other rights exercisable to subscribe for or to purchase Common Units, or any security convertible into or exchangeable for Common Units, whether or not the right to exercise, convert or exchange any such Convertible Securities is immediately exercisable, including, for the avoidance of doubt, Warrants in the series issued by the Partnership pursuant to the Purchase Agreement.

 

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“Delaware LP Act” means the means the Delaware Revised Uniform Limited Partnership Act.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Exercise Date” means, for any given exercise of this Warrant, the date on which the conditions to such exercise as set forth in Section 3 shall have been satisfied at or prior to 5:00 p.m., Central Time, on a Business Day, including, without limitation, the receipt by the Partnership of the Exercise Agreement, the Warrant and the Aggregate Exercise Price.

 

“Exercise Agreement” has the meaning set forth in Section 3(a)(i).

 

“Exercise Period” has the meaning set forth in Section 2.

 

“Exercise Price” has the meaning set forth in the preamble.

 

“Fair Market Value” means, as of any particular date: (a) the VWAP Price of the Common Units for such day on all domestic securities exchanges on which the Common Units may at the time be listed; (b) if there have been no sales of the Common Units on any such exchange on any such day, the average of the highest bid and lowest asked prices for the Common Units on all such exchanges at the end of such day; (c) if on any such day the Common Units are not listed on a domestic securities exchange, the closing sales price of the Common Units as quoted on the OTC Bulletin Board, the Pink OTC Markets or similar quotation system or association for such day; or (d) if there have been no sales of the Common Units on the OTC Bulletin Board, the Pink OTC Markets or similar quotation system or association on such day, the average of the highest bid and lowest asked prices for Common Units quoted on the OTC Bulletin Board, the Pink OTC Markets or similar quotation system or association at the end of the day; in each case, averaged over the fifteen consecutive Business Days ending on the Business Day immediately prior to the day as of which “Fair Market Value” is being determined; provided, that if the Common Units are listed on any domestic securities exchange, the term “Business Day” as used in this sentence means Business Days on which such exchange is open for trading.  If at any time the Common Units are not listed on any domestic securities exchange or quoted on the OTC Bulletin Board, the Pink OTC Markets or similar quotation system or association, the “Fair Market Value” of the Common Units shall be the fair market value per unit as determined in good faith by the Board.

 

“First Vesting Date” means the earlier of (i) the first anniversary of the Original Issue Date and (ii) a Change of Control.

 

“General Partner” means NGL Energy Holdings LLC, the general partner of the Partnership.

 

“GP LLC Agreement” means the Third Amended and Restated Limited Liability Company Agreement of the General Partner dated as of February 25, 2013, as amended.

 

“Holder” has the meaning set forth in the preamble.

 

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“Indentures” means (i) the Indenture, dated as of October 16, 2013, by and among the Partnership, NGL Energy Finance Corp., the guarantors party thereto and U.S. Bank National Association, as trustee, and (ii) the Indenture, dated as of July 9, 2014, by and among the Partnership, NGL Energy Finance Corp., the guarantors party thereto and U.S. Bank National Association, as trustee, in each case of (i) and (ii) as amended or supplemented on or prior to the date hereof, but without giving effect to any amendment or supplement to the same entered into after the date hereof and regardless of whether such Indenture remains in effect.

 

“NYSE” means New York Stock Exchange.

 

“Opt-Out Notice” has the meaning set forth in Section 6(c).

 

“Original Issue Date” means [·], 2016, the date on which the Warrant was issued by the Partnership pursuant to the Purchase Agreement.

 

“OTC Bulletin Board” means the Financial Industry Regulatory Authority OTC Bulletin Board electronic inter-dealer quotation system.

 

“Partnership” has the meaning set forth in the preamble.

 

“Partnership Agreement” means the Second Amended and Restated Agreement of Limited Partnership of the Partnership, as amended.

 

“Person” means any individual, sole proprietorship, partnership, limited liability company, corporation, joint venture, trust, incorporated organization or government or department or agency thereof.

 

“Pink OTC Markets” means the OTC Markets Group Inc. electronic inter-dealer quotation system, including OTCQX, OTCQB and OTC Pink.

 

“Preferred Units” means the Class A Convertible Preferred Units representing limited partner interests in the Partnership, the terms of which are to be set forth in the Partnership Agreement.

 

“Purchase Agreement” has the meaning set forth in the preamble.

 

“Qualified IPO” has the meaning as set forth in the Partnership Agreement.

 

“Second Vesting Date” means the earlier of (i) the second anniversary of the Original Issue Date and (ii) a Change of Control.

 

“Third Vesting Date” means the earlier of (i) the third anniversary of the Original Issue Date and (ii) a Change of Control.

 

“VWAP Price” as of a particular date means the volume-weighted average trading price, as adjusted for splits, combinations and other similar transactions, of a Common Unit.

 

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“Warrant” means this Warrant and all warrants issued upon division or combination of, or in substitution for, this Warrant.

 

“Warrant Units” means the Common Units purchasable upon exercise of this Warrant in accordance with the terms of this Warrant (without taking into account any limitations or restrictions on the exercisability of this Warrant, other than with respect to Section 2 or Section 3 of this Warrant).

 

“Warrant Unit Adjustment” has the meaning set forth in Section 4(e).

 

2.             Term of Warrant.  Subject to the terms and conditions hereof, at any time or from time to time during the period beginning on the First Vesting Date and ending at 5:00 p.m., Central Time, on the eighth anniversary of the Original Issue Date or, if such day is not a Business Day, on the next preceding Business Day (the “Exercise Period”), the Holder of this Warrant may exercise this Warrant for the Warrant Units purchasable hereunder (subject to adjustment as provided herein) as provided in Section 3.  Holders may not exercise this Warrant except during the Exercise Period.

 

3.             Exercise of Warrant.

 

(a)           Vesting and Exercise Procedure.  Subject to Section 2, the Holder may purchase no more than one-third of the Warrant Units purchasable upon exercise of this Warrant from the First Vesting Date until the Second Vesting Date; the Holder may purchase no more than two-thirds of the Warrant Units purchasable upon exercise of this Warrant from the date after the First Vesting Date until the Third Vesting Date; the Holder may purchase all or any part of the Warrant Units purchasable upon exercise of this Warrant beginning on the earlier of: (i) the date following the Third Vesting Date, (ii) the redemption (or requirement of the Partnership to redeem) in full of all the issued and outstanding Preferred Units, (iii) the occurrence of a Change of Control and (iv) the voluntary or involuntary dissolution, liquidation or winding-up of the Partnership.  The Holder may exercise this Warrant only upon:

 

(i)            surrender of this Warrant to the Partnership at its then principal executive offices (or an indemnification undertaking with respect to this Warrant in the case of its loss, theft or destruction), together with an Exercise Agreement in the form attached hereto as Exhibit A (each, an “Exercise Agreement”), duly completed (including specifying the number of Warrant Units to be purchased) and executed; and

 

(ii)           payment to the Partnership of the Aggregate Exercise Price in accordance with Section 3(b).

 

(b)           Payment of the Aggregate Exercise Price.  Payment of the Aggregate Exercise Price shall be made, at the option of the Holder as expressed in the Exercise Agreement, only by the following methods:

 

(i)            by delivery to the Partnership of a certified or official bank check payable to the order of the Partnership or by wire transfer of immediately available funds to an account designated in writing by the Partnership, in the amount of such Aggregate Exercise Price;

 

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(ii)           by instructing the Partnership to withhold a number of Warrant Units then issuable upon exercise of this Warrant with an aggregate Fair Market Value as of the Exercise Date equal to such Aggregate Exercise Price; or

 

(iii)          any combination of the foregoing.

 

In the event of any withholding of Warrant Units pursuant to clause (ii) or (iii) above where the number of units whose value is equal to the Aggregate Exercise Price is not a whole number, the number of units withheld by or surrendered to the Partnership shall be rounded up to the nearest whole unit and the Partnership shall make a cash payment to the Holder (by delivery of a certified or official bank check or by wire transfer of immediately available funds) based on the incremental fraction of a unit being so withheld by or surrendered to the Partnership in an amount equal to the product of (x) such incremental fraction of a unit being so withheld or surrendered multiplied by (y) in the case of Common Units, the Fair Market Value per Warrant Unit as of the Exercise Date, and, in all other cases, the value thereof as of the Exercise Date determined in accordance with clause (iii)(y) above.

 

(c)           Delivery of Certificates.  Upon receipt by the Partnership of the Exercise Agreement, surrender of this Warrant and payment of the Aggregate Exercise Price (in accordance with Section 3(a) hereof), the Partnership shall, as promptly as practicable, and in any event within three Business Days thereafter, execute (or cause to be executed) and deliver (or cause to be delivered) to the Holder a certificate or certificates representing the Warrant Units issuable upon such exercise, together with cash in lieu of any fraction of a unit, as provided in Section 3(d) hereof.  Certificates shall be transmitted by the Partnership’s transfer agent by crediting the account of the Holder’s prime broker with The Depository Trust Company through its Deposit / Withdrawal At Custodian system if the Partnership is a participant in such system, and otherwise by physical delivery to the address specified by the Holder in the Exercise Agreement. The certificate or certificates so delivered shall be, to the extent possible, in such denomination or denominations as the exercising Holder shall reasonably request in the Exercise Agreement and shall be registered in the name of the Holder or, subject to compliance with Section 6 below, such other Person’s name as shall be designated in the Exercise Agreement.  This Warrant shall be deemed to have been exercised and such certificate or certificates of Warrant Units shall be deemed to have been issued, and the Holder or any other Person so designated to be named therein shall be deemed to have become a holder of record of such Warrant Units for all purposes, as of the Exercise Date.

 

(d)           Fractional Units.  The Partnership shall not be required to issue a fractional Warrant Unit upon exercise of any Warrant.  As to any fraction of a Warrant Unit that the Holder would otherwise be entitled to purchase upon such exercise, the Partnership shall pay to such Holder an amount in cash (by delivery of a certified or official bank check or by wire transfer of immediately available funds) equal to the product of (i) such fraction multiplied by (ii) the Fair Market Value of one Warrant Unit on the Exercise Date.

 

(e)           Delivery of New Warrant.  Unless the purchase rights represented by this Warrant shall have expired or shall have been fully exercised, the Partnership shall, at the time of delivery of the certificate or certificates representing the Warrant Units being issued in accordance with Section 3(c) hereof, deliver to the Holder a new Warrant evidencing the rights

 

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of the Holder to purchase the unexpired and unexercised Warrant Units called for by this Warrant.  Such new Warrant shall in all other respects be identical to this Warrant.

 

(f)            Valid Issuance of Warrant and Warrant Units; Payment of Taxes.  With respect to the exercise of this warrant, the Partnership hereby represents, covenants and agrees:

 

(i)            This Warrant is, and any Warrant issued in substitution for or replacement of this Warrant shall be, upon issuance, duly authorized and validly issued.

 

(ii)           All Warrant Units issuable upon the exercise of this Warrant pursuant to the terms hereof shall be, upon issuance, and the Partnership shall take all such actions as may be necessary or appropriate in order that such Warrant Units are, validly issued, fully paid (to the extent required under applicable law and the Partnership Agreement) and non-assessable (except as such nonassessability may be affected by Sections 17-303, 17-607 and 17-804 of the Delaware LP Act), issued without violation of any preemptive or similar rights of any unitholder of the Partnership and free and clear of all taxes, liens and charges.

 

(iii)          The Partnership shall take all such actions as may be necessary to ensure that all such Warrant Units are issued without violation by the Partnership of any applicable law or governmental regulation or any requirements of any domestic securities exchange upon which Common Units or other securities constituting Warrant Units may be listed at the time of such exercise (except for official notice of issuance which shall be immediately delivered by the Partnership upon each such issuance).

 

(iv)          The Partnership shall use its reasonable best efforts to cause the Warrant Units, immediately upon such exercise, to be listed on any domestic securities exchange upon which Common Units or other securities constituting Warrant Units are listed at the time of such exercise.

 

(v)           The Partnership shall pay all expenses in connection with, and all taxes and other governmental charges that may be imposed with respect to, the issuance or delivery of Warrant Units upon exercise of this Warrant; provided, that the Partnership shall not be required to pay any tax or governmental charge that may be imposed with respect to any applicable withholding or the issuance or delivery of the Warrant Units to any Person other than the Holder, and no such issuance or delivery shall be made unless and until the Person requesting such issuance has paid to the Partnership the amount of any such tax, or has established to the satisfaction of the Partnership that such tax has been paid.

 

(g)           Conditional Exercise.  Notwithstanding any other provision hereof, if an exercise of any portion of this Warrant is to be made in connection with a sale of the Partnership (pursuant to a merger, sale of units, or otherwise), such exercise may at the election of the Holder be conditioned upon the consummation of such transaction, in which case such exercise shall not be deemed to be effective until immediately prior to the consummation of such transaction.

 

(h)           Buy-In.  In addition to any other rights available to the Holder, if the Partnership fails to deliver to the Holder a certificate or certificates representing the Warrant Units pursuant to an exercise within seven Business Days of such exercise, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) Common Units to

 

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deliver in satisfaction of a sale by the Holder of the Warrant Units which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Partnership shall, at the Holder’s option, either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for the Common Units so purchased (the “Buy-In Price”), at which point the Partnership’s obligation to deliver such certificate (and to issue such Common Units) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Common Units and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of Common Units, times (B) the closing bid price on the date of exercise.  The Holder shall provide the Partnership written notice indicating the amounts payable to the Holder in respect to the Buy-In, together with applicable confirmations and other evidence reasonably requested by the Partnership.  Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Partnership’s failure to timely deliver certificates representing Common Units upon exercise of this Warrant as required pursuant to the terms hereof.

 

4.             Adjustment to Number of Warrant Units.  In order to prevent dilution of the purchase rights granted under this Warrant, the number of Warrant Units issuable upon exercise of this Warrant shall be subject to adjustment from time to time as provided in this Section 4 (in each case, after taking into consideration any prior adjustments pursuant to this Section 4).

 

(a)           Adjustment to Number of Warrant Units Upon Dividend, Subdivision or Combination of Common Units.  If the Partnership shall, at any time or from time to time after the Original Issue Date, (i) pay a dividend or make any other distribution upon the Common Units or any other limited partner interests of the Partnership payable in Common Units or Convertible Securities, or (ii) subdivide (by any split, recapitalization or otherwise) its outstanding Common Units into a greater number of units, the number of Warrant Units issuable upon exercise of this Warrant immediately prior to any such dividend, distribution or subdivision shall be proportionately increased.  If the Partnership at any time combines (by combination, reverse split or otherwise) its outstanding Common Units into a smaller number of units, the number of Warrant Units issuable upon exercise of this Warrant immediately prior to such combination shall be proportionately decreased.  Any adjustment under this Section 4(a) shall become effective at the close of business on the date the dividend, subdivision or combination becomes effective.

 

(b)           Adjustment to Number of Warrant Units Upon a Change of Control.  In the event of any Change of Control, each Warrant shall, immediately after such Change of Control, remain outstanding and shall thereafter, in lieu of or in addition to (as the case may be) the number of Warrant Units then exercisable under this Warrant, be exercisable for the kind and number of other securities or assets of the Partnership or of the successor Person resulting from such Change of Control to which the Holder would have been entitled upon such Change of Control if the Holder had exercised this Warrant in full immediately prior to the time of such Change of Control and acquired the applicable number of Warrant Units then issuable hereunder as a result of such exercise (without taking into account any limitations or restrictions on the exercisability of this Warrant); and, in such case, appropriate adjustment (in form and substance satisfactory to the Holder) shall be made with respect to the Holder’s rights under this Warrant to

 

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insure that the provisions of this Section 4(b) shall thereafter be applicable, as nearly as possible, to this Warrant in relation to any securities or assets thereafter acquirable upon exercise of this Warrant.  The provisions of this Section 4(b) shall similarly apply to successive Changes of Control.  The Partnership shall not effect any such Change of Control unless, prior to the consummation thereof, the successor Person (if other than the Partnership) resulting from such Change of Control, shall assume, by written instrument substantially similar in form and substance to this Warrant and satisfactory to the Holder, the obligation to deliver to the Holder such securities or assets which, in accordance with the foregoing provisions, such Holder shall be entitled to receive upon exercise of this Warrant.  Notwithstanding anything to the contrary contained herein, with respect to any Change of Control or other transaction contemplated by the provisions of this Section 4(b), the Holder shall have the right to elect prior to the consummation of such event or transaction, to give effect to the exercise rights contained in Section 3 instead of giving effect to the provisions contained in this Section 4(b) with respect to this Warrant.

 

(c)           Certain Events.  If any event of the type contemplated by the provisions of this Section 4 but not expressly provided for by such provisions (including, without limitation, the granting of unit appreciation rights, phantom unit rights or other rights with equity features) occurs, then the Board shall make an appropriate adjustment in the number of Warrant Units issuable upon exercise of this Warrant so as to protect the rights of the Holder in a manner consistent with the provisions of this Section 4; provided, that no such adjustment pursuant to this Section 4(c) shall decrease the number of Warrant Units issuable as otherwise determined pursuant to this Section 4.

 

(d)           Certificate as to Adjustment.

 

(i)            As promptly as reasonably practicable following any adjustment of the number of Warrant Units pursuant to the provisions of this Section 4, but in any event not later than five Business Days thereafter, the Partnership shall furnish to the Holder a certificate of an executive officer setting forth in reasonable detail such adjustment and the facts upon which it is based and certifying the calculation thereof.

 

(ii)           As promptly as reasonably practicable following the receipt by the Partnership of a written request by the Holder, but in any event not later than five Business Days thereafter, the Partnership shall furnish to the Holder a certificate of an executive officer certifying the number of Warrant Units or the amount, if any, of other, securities or assets then issuable upon exercise of the Warrant.

 

(e)           Adjustment in Exercise Price. Upon any adjustment to the number of Warrant Units issuable upon exercise of this Warrant pursuant to this Section 4 (each, a “Warrant Unit Adjustment”), the Aggregate Exercise Price upon the exercise of this Warrant thereafter shall be adjusted by multiplying the Aggregate Exercise Price applicable prior to such Warrant Unit Adjustment by a fraction: the numerator of which shall be the number of Warrants Units issuable upon exercise of this Warrant immediately prior to such Warrant Unit Adjustment and the denominator of which shall be the number of Warrant Units issuable upon exercise of this Warrant immediately after such Warrant Unit Adjustment.

 

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(f)            Notices.  In the event:

 

(i)            that the Partnership shall take a record of the holders of its Common Units (or other securities at the time issuable upon exercise of the Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, to vote at a meeting (or by written consent), to receive any right to subscribe for or purchase any  class or any other securities, or to receive any other security; or

 

(ii)           of the voluntary or involuntary dissolution, liquidation or winding-up of the Partnership; or

 

(iii)          of any Change of Control;

 

then, and in each such case, the Partnership shall send or cause to be sent to the Holder at least 10 days prior to the applicable record date or the applicable expected effective date, as the case may be, for the event, a written notice specifying, as the case may be, (A) the record date for such dividend, distribution, meeting or consent or other right or action, and a description of such dividend, distribution or other right or action to be taken at such meeting or by written consent, or (B) the effective date on which such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up is proposed to take place, and the date, if any is to be fixed, as of which the books of the Partnership shall close or a record shall be taken with respect to which the holders of record of Common Units (or securities at the time issuable upon exercise of the Warrant) shall be entitled to exchange their Common Units (or such other securities) for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up, and the amount per unit and character of such exchange applicable to the Warrant and the Warrant Units.

 

5.             Purchase Rights.  In addition to any adjustments pursuant to Section 4 above, if at any time the Partnership grants, issues or sells any Common Units, Convertible Securities or rights to purchase units, warrants, securities or other property exclusively pro rata to the record holders of Common Units (the “Purchase Rights”), then the Holder shall be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder would have acquired if the Holder had held the number of Warrant Units acquirable upon complete exercise of this Warrant immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Common Units are to be determined for the grant, issue or sale of such Purchase Rights.

 

6.             Preemptive Rights.

 

(a)           Prior to the issuance of any New Securities (as defined below in Section 6(b)) by the Partnership, the Partnership shall offer to sell to each Holder its pro rata share of such New Securities by delivering written notice to such Holder (the “Notice of Issuance”), stating (i) the Company’s bona fide intention to offer such New Securities, (ii) the number of such New Securities to be offered and (iii) the price and general terms, if any, upon which the Partnership proposes to offer such New Securities; provided, that if any Holder fails to provide written notice of its intent to exercise its right to purchase its pro rata share of such New Securities within seven

 

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Business Days of the date of the Notice of Issuance, such Holder shall be deemed to have waived any and all rights to purchase such New Securities in such transaction.  Each Holder’s pro rata share of any New Securities, for purposes of this Section 6, shall be equal to the quotient of (x) the number of Common Units held by such Holder (including Warrant Units) on the date of the Notice of Issuance divided by (y) the number of Common Units outstanding (on a fully diluted basis assuming exercise of all outstanding options and warrants, including this Warrant) on the date of the Notice of Issuance.

 

(b)           “New Securities” means any Common Units and rights, options or warrants to purchase Common Units, and securities of any type whatsoever that are, or may become, convertible into or exchangeable or exercisable for Common Units; provided, however, that New Securities shall not include (i) securities issued to the owners of another entity in connection with the acquisition of such entity by the Partnership by merger, consolidation, sale or exchange of securities, purchase of substantially all of the assets, or other reorganization whereby the Partnership acquires more than 50% of the voting power or assets of such entity; (ii) Common Units (including options to purchase Common Units and Common Units issued upon exercise of such options) issued to employees, consultants or directors of the Partnership or the General Partner pursuant to plans, programs or agreements approved by the Board; (iii) securities issued pursuant to any dividend, split, combination or other reclassification by the Partnership or the General Partner of the Common Units, or pursuant to a recapitalization or reorganization of the Partnership; (iv) securities (including without limitation the Warrant Units and Common Units issuable upon conversion of the Class A Convertible Preferred Units) issued upon the exercise of warrants or options, or upon the conversion of convertible securities, in each case regardless of whether such warrants, options or convertible securities are outstanding on the date hereof or issued hereafter; (v) Common Units issued in a transaction registered under the Securities Act pursuant to an at-the-market Common Units offering program of the Partnership; or (vi) Common Units issued in a firm commitment underwritten public offering registered under the Securities Act, but only if with respect to such public offering, (A) at least two Business Days prior to first publication of its intention to conduct such public offering of Common Units, the Partnership provides each Holder with a Notice of Issuance and (B) if not more than one Business Day after the date of the Notice of Issuance any Holder provides written notice of its intention to purchase (at the public offering price) Common Units in such offering, the Partnership instructs the managing underwriter, and shall use commercially reasonable efforts to cause the managing underwriter, to make available for purchase by such Holder, in such public offering and at the public offering price, a number of the Common Units equal to the lower of (1) such Holder’s pro rata share of all the Common Units being sold in such public offering and (2) the number of Common Units for which such Holder places an buy order with such managing underwriter.  Notwithstanding any provision hereof to the contrary, each Notice of Issuance pertaining to a firm commitment underwritten public offering registered under the Securities Act need not include a particular price, and instead may state that the Partnership intends to sell Common Units to underwriters at customary discount to the public offering price that will be determined upon pricing of such offering.  Each Holder’s pro rata share of the Common Units to be sold in a firm commitment underwritten public offering registered under the Securities Act shall be equal to the quotient of (x) the number of Common Units held by such Holder (including Warrant Units) on the date of the Notice of Issuance divided by (y) the number of Common Units outstanding (on a fully diluted basis assuming exercise of all outstanding options and warrants, including this Warrant) on the date of the Notice of Issuance.

 

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(c)           Any Holder may deliver written notice (an “Opt-Out Notice”) to the Partnership requesting that such Holder not receive any Notice of Issuance from the Partnership with respect to firm commitment underwritten public offerings of the Partnership’s Common Units;  provided, however, that if a Holder has delivered an Opt-Out Notice, the Partnership shall not be required to comply with its obligations pursuant to Section 6(b)(vi)(A) and (B) with respect to such Holder; provided, further, that such Holder may later revoke any such Opt-Out Notice in writing.   [The Holders indicated on Schedule A hereto as having opted out shall each be deemed to have delivered an Opt-Out Notice as of the date hereof.]

 

7.             Transfer of Warrant.  Subject to the transfer conditions referred to in the legend endorsed hereon, this Warrant and all rights hereunder are transferable, in whole or in part, by the Holder without charge to the Holder, upon surrender of this Warrant to the Partnership at its then principal executive offices with a properly completed and duly executed Assignment in the form attached hereto as Exhibit B, together with funds sufficient to pay any transfer taxes described in Section 3(f)(v) in connection with the making of such transfer.  Upon such compliance, surrender and delivery and, if required, such payment, the Partnership shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees and in the denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant, if any, not so assigned and this Warrant shall promptly be cancelled. For the avoidance of doubt, Warrants may be transferred separately from Preferred Units.

 

8.             Holder Not Deemed a Unitholder; Limitations on Liability.  Except as described in the Board Observation Rights Agreement, the Partnership Agreement, the GP LLC Agreement, or otherwise specifically provided herein, prior to the issuance to the Holder of the Warrant Units to which the Holder is then entitled to receive upon the due exercise of this Warrant, the Holder shall not be entitled to vote or receive dividends or be deemed the holder of limited partner interests of the Partnership for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, as such, any of the rights of a unitholder of the Partnership or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of limited partner interests, reclassification of limited partner interests, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise.  In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a unitholder of the Partnership, whether such liabilities are asserted by the Partnership or by creditors of the Partnership.  Notwithstanding this Section 8, (i) the Partnership shall provide the Holder with copies of the same notices and other information given to the unitholders of the Partnership generally, contemporaneously with the giving thereof to the unitholders and (ii) the Partnership shall not amend or modify its Partnership Agreement in a manner adverse to any rights or benefits applicable to the Warrant Units thereunder.

 

9.             Replacement on Loss; Division and Combination.

 

(a)           Replacement of Warrant on Loss.  Upon receipt of evidence reasonably satisfactory to the Partnership of the loss, theft, destruction or mutilation of this Warrant and upon delivery of an indemnity reasonably satisfactory to it (it being understood that a written indemnification agreement with an affidavit of loss of the Holder shall be a sufficient indemnity)

 

12

 

and, in case of mutilation, upon surrender of such Warrant for cancellation to the Partnership, the Partnership at its own expense shall execute and deliver to the Holder, in lieu hereof, a new Warrant of like tenor and exercisable for an equivalent number of Warrant Units as the Warrant so lost, stolen, mutilated or destroyed; provided, that, in the case of mutilation, no indemnity shall be required if this Warrant in identifiable form is surrendered to the Partnership for cancellation.

 

(b)           Division and Combination of Warrant.  Subject to compliance with the applicable provisions of this Warrant as to any transfer or other assignment which may be involved in such division or combination, this Warrant may be divided or, following any such division of this Warrant, subsequently combined with other Warrants, upon the surrender of this Warrant or Warrants to the Partnership at its then principal executive offices, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the respective Holders or their agents or attorneys.  Subject to compliance with the applicable provisions of this Warrant as to any transfer or assignment which may be involved in such division or combination, the Partnership shall at its own expense execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants so surrendered in accordance with such notice.  Such new Warrant or Warrants shall be of like tenor to the surrendered Warrant or Warrants and shall be exercisable in the aggregate for an equivalent number of Warrant Units as the Warrant or Warrants so surrendered in accordance with such notice.

 

10.          No Impairment.  The Partnership shall not, by amendment of its Certificate of Formation or Partnership Agreement, or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed by it hereunder, but shall at all times in good faith assist in the carrying out of all the provisions of this Warrant and in the taking of all such action as may reasonably be requested by the Holder in order to protect the exercise rights of the Holder against dilution or other impairment, consistent with the tenor and purpose of this Warrant.

 

11.          Agreement to Comply with the Securities Act; Legend.  The Holder, by acceptance of this Warrant, agrees to comply in all respects with the provisions of this Section 11 and the restrictive legend requirements set forth on the face of this Warrant and further agrees that such Holder shall not offer, sell or otherwise dispose of this Warrant or any Warrant Units to be issued upon exercise hereof except under circumstances that will not result in a violation of the Securities Act.  All Warrant Units issued upon exercise of this Warrant (unless registered under the Securities Act or the conditions for the removal of the legend set forth in Section 8.06 of the Partnership Agreement are otherwise satisfied) shall be stamped or imprinted with a legend in substantially the following form:

 

“These securities have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state or other jurisdiction. These securities may not be sold or offered for sale, pledged or hypothecated except pursuant to an effective registration statement under the Securities Act or pursuant to an exemption from registration thereunder, in each case in accordance with all applicable securities laws of the states or other jurisdictions, and in the case of a transaction exempt from registration, such

 

13

 

securities may only be transferred if the transfer agent for such securities has received documentation satisfactory to it that such transaction does not require registration under the Securities Act.”

 

12.          Warrant Register.  The Partnership shall keep and properly maintain at its principal executive offices books for the registration of the Warrant and any transfers thereof.  The Partnership may deem and treat the Person in whose name the Warrant is registered on such register as the Holder thereof for all purposes, and the Partnership shall not be affected by any notice to the contrary, except any assignment, division, combination or other transfer of the Warrant effected in accordance with the provisions of this Warrant.

 

13.          Notices.  All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid.  Such communications must be sent to the respective parties at the addresses indicated below (or at such other address for a party as shall be specified in a notice given in accordance with this Section 13).

 

If to the Partnership:                                                                                                                                NGL Energy Partners LP
 6120 South Yale Avenue
 Suite 805
 Tulsa, Oklahoma 74316
 Attention: H. Michael Krimbill
 Facsimile:  (918) 492-0990
 Email:  michael.krimbill@nglep.com

 

with a copy to (which shall not constitute notice):

 

Andrews Kurth LLP
 600 Travis St., Suite 4200
 Houston, Texas 77002
 Attention: G. Michael O’Leary
 Facsimile: (713) 238-7130
 Email: gmoleary@andrewskurth.com

 

If to the Holder:                                                                                                                                                        [·]

 

with a copy to (which shall not constitute notice):

 

Vinson & Elkins L.L.P. 
 666 Fifth Avenue, 26th Floor
 New York, NY 10103

 

14

 

Attention: David B. Cohen
 Todd R. Triller
 Email: dcohen@velaw.com
 ttriller@velaw.com

 

Vinson & Elkins L.L.P.

1001 Fannin, Suite 2500
 Houston, TX 77002
 Attention: Julian J. Seiguer
 Email: jseiguer@velaw.com

 

14.          Cumulative Remedies.  Except to the extent expressly provided in Section 8 to the contrary, the rights and remedies provided in this Warrant are cumulative and are not exclusive of, and are in addition to and not in substitution for, any other rights or remedies available at law, in equity or otherwise.

 

15.          Equitable Relief.  Each of the Partnership and the Holder acknowledges that a breach or threatened breach by such party of any of its obligations under this Warrant would give rise to irreparable harm to the other party hereto for which monetary damages would not be an adequate remedy and hereby agrees that in the event of a breach or a threatened breach by such party of any such obligations, the other party hereto shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach, be entitled to equitable relief, including a restraining order, an injunction, specific performance and any other relief that may be available from a court of competent jurisdiction.

 

16.          Entire Agreement.  This Warrant, together with the Purchase Agreement, constitutes the sole and entire agreement of the parties to this Warrant with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter.  In the event of any inconsistency between the statements in the body of this Warrant and the Purchase Agreement, the statements in the body of this Warrant shall control.

 

17.          Successor and Assigns.  This Warrant and the rights evidenced hereby shall be binding upon and shall inure to the benefit of the parties hereto and the successors of the Partnership and the successors and permitted assigns of the Holder.  Such successors and/or permitted assigns of the Holder shall be deemed to be a Holder for all purposes hereunder.

 

18.          No Third-Party Beneficiaries.  This Warrant is for the sole benefit of the Partnership and the Holder and their respective successors and, in the case of the Holder, permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Warrant.

 

19.          Headings.  The headings in this Warrant are for reference only and shall not affect the interpretation of this Warrant.

 

15

 

20.          Amendment and Modification; Waiver.  Except as otherwise provided herein, this Warrant may only be amended, modified or supplemented by an agreement in writing signed by each party hereto.  No waiver by the Partnership or the Holder of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving.  No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver.  No failure to exercise, or delay in exercising, any rights, remedy, power or privilege arising from this Warrant shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

21.          Severability.  If any term or provision of this Warrant is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Warrant or invalidate or render unenforceable such term or provision in any other jurisdiction.

 

22.          Governing Law.  This Warrant shall be governed by and construed in accordance with the internal laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of New York.

 

23.          Submission to Jurisdiction.  The parties hereby submit to the exclusive jurisdiction of any U.S. federal or state court located in the Borough of Manhattan, the City and County of New York in any legal suit, action or proceeding arising out of or based upon this Warrant or the transactions contemplated hereby, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding.  Service of process, summons, notice or other document by certified or registered mail to such party’s address for receipt of notices pursuant to Section 13 shall be effective service of process for any suit, action or other proceeding brought in any such court.  The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or any proceeding in such courts and irrevocably waive and agree not to plead or claim in any such court that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 

24.          Waiver of Jury Trial.  Each party acknowledges and agrees that any controversy which may arise under this Warrant is likely to involve complicated and difficult issues and, therefore, each such party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any legal action arising out of or relating to this Warrant or the transactions contemplated hereby.

 

25.          Counterparts.  This Warrant may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement.  A signed copy of this Warrant delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Warrant.

 

16

 

26.          No Strict Construction.  This Warrant shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted.

 

(SIGNATURE PAGE FOLLOWS)

 

17

 

IN WITNESS WHEREOF, the Partnership has duly executed this Warrant on the Original Issue Date.

 

	
 
    	
NGL ENERGY PARTNERS LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
NGL Energy Holdings LLC,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    

 

 

Accepted and agreed,

 

[HOLDER NAME]

 

 

	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

SIGNATURE PAGE
 TO
 WARRANT AGREEMENT

 

 

 

EXHIBIT A

 

NGL ENERGY PARTNERS LP
  EXERCISE AGREEMENT

 

To [Name]:

 

The undersigned hereby irrevocably elects to exercise the right of purchase represented by the within Warrant (“Warrant”) for, and to purchase thereunder by the payment of the Exercise Price and surrender of this Warrant, Common Units (“Warrant Units”) provided for therein, and requests that certificates for the Warrant Units be issued as follows:

 

	
 
    	
Name
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Address
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Federal   Tax or Social Security No.
    
	
 
    	
 
    
	
 
    	
 
    

 

	
and delivered by
    	
(certified mail to the above address, or
    
	
 
    	
 
    
	
 
    	
(electronically                       (provide   DWAC 
   Instructions:                              ),   or
    
	
 
    	
 
    
	
 
    	
(other                                 )   (specify):.
    

 

and, if the number of Warrant Units shall not be all the Warrant Units purchasable upon exercise of this Warrant, that a new Warrant for the balance of the Warrant Units purchasable upon exercise of this Warrant be registered in the name of the undersigned Holder or the undersigned’s Assignee as below indicated and delivered to the address stated below.

 

Dated:                                            ,

 

Note:              The signature must correspond with

 

A-1

 

	
Signature:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
the name of the Holder as written on the   first page of this Warrant in every particular, without alteration or   enlargement or any change whatever, unless this Warrant has been assigned.
    	
 
    	
Name (please print)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Federal Identification or Social Security   No.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Assignee:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

A-2

 

EXHIBIT B

 

NGL ENERGY PARTNERS LP
 ASSIGNMENT

 

For value received                                    hereby sells, assigns and transfers unto                                          the within Warrant(2), together with all right, title and interest therein, and does hereby irrevocably constitute and appoint attorney, to transfer said Warrant on the books of the within-named Partnership, with full power of substitution in the premises.

 

	
Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
 
    	
 
    

 

Note:  The above signature must correspond with the name as written upon the face of this Warrant in every particular, without alteration or enlargement or any change whatever.

 

(2)  For partial assignment, indicate portion assigned.

 

B-1

 

Schedule A

 

Purchaser Name; Notice and Contact Information

 

	
Purchaser
    	
 
    	
Contact Information
    
	
[Name]
    	
 
    	
[Address]

Attention:  [Title]

Telephone:  [Phone Number]

Facsimile:  [Fax Number]

Email:  [Email address]
    

 

B-2Exhibit 10.2

 

Confidential portions of this document have been redacted and omitted
pursuant to a Request for Confidential Treatment filed with the Securities and Exchange Commission (the "SEC") pursuant
to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. The redacted and omitted portions are indicated with the notation
“*” and have been filed separately with the SEC.

 

LICENSE AND TRANSFER AGREEMENT

 

This license and transfer agreement (the “Agreement”)
is entered into with effect as of April 18, 2016 (the “Effective Date”) by and between Pieris Pharmaceuticals,
Inc., a Nevada corporation with a place of business at 255 State Street, 9th Floor, Boston, MA 02109 and Pieris Pharmaceuticals
GmbH, a German company with a place of business at Lise-Meitner-Strasse 30, 85354 Freising, Germany (collectively and together
with their Affiliates, “Pieris”) and Enumeral Biomedical Holdings, Inc., a Delaware corporation with a place
of business at 200 CambridgePark Drive, Suite 2000, Cambridge, MA 02140 (together with its Affiliates, “Enumeral”).

 

Whereas, Enumeral possesses proprietary technology
and intellectual property rights related to certain antibodies; and

 

Whereas, Pieris wishes to obtain one or more
of such antibodies for development and commercialization and a license to intellectual property related to such antibodies; and

 

Whereas, Enumeral is willing to provide such
antibodies and license such intellectual property to Pieris for development and commercialization of novel compounds comprising
fusion proteins based on such antibodies in oncology; and

 

Therefore, in consideration of the mutual covenants
and promises contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereto, intending to be legally bound, do hereby agree as follows:

 

1. Definitions. As used in this Agreement, the following
terms, whether used in the singular or plural, shall have the following meanings:

 

Affiliate. The term “Affiliate” shall
mean any individual, corporation, association or other business entity that directly or indirectly controls, is controlled by,
or is under common control with the Party in question. As used in this definition of “Affiliate” only, the term “control”
shall mean the direct or indirect ownership of more than fifty percent (>50%) of the stock having the right to vote for directors
thereof or the ability to otherwise control the management of the corporation or other business entity whether through the ownership
of voting securities, by contract, resolution, regulation or otherwise.

 

Anticalin®. The term “Anticalin®”
shall mean, whether in nucleic acid or protein form, any mutein of any lipocalin. The term “mutein” shall mean a protein
arising as a result of a mutation or a recombinant DNA procedure.

 

    	 	Page 1 of 28	 

     

    
 

Commercially Reasonable Efforts. The term “Commercially
Reasonable Efforts” shall mean such level of efforts required to carry out such obligation in a manner consistent with the
efforts that a pharmaceutical company comparable with Pieris would devote at the same stage of development or commercialization,
as applicable, for its own internally developed therapeutic products in a similar area with similar market potential, at a similar
stage of their product life taking into account the existence of other competitive products in the market place or under development,
the proprietary position of the product, the regulatory structure involved, intellectual property considerations, the anticipated
profitability of the product and other relevant factors. It is understood that such product potential may change from time to time
based upon changing scientific, business and marketing and return on investment considerations. For avoidance of any doubt, Commercially
Reasonably Efforts do not require Pieris to seek to market any therapeutic product in every country or seek to obtain regulatory
approval in every country or for every potential indication.

 

Confidential Information. The term “Confidential
Information” means all nonpublic information disclosed in oral, written, electronic or other form or otherwise learned by
the Party receiving such information (the “Recipient”), including but not limited to information regarding the
activities of the party disclosing such information (the “Discloser”), such as research, development, preclinical
and clinical programs, data and results; pharmaceutical or biologic candidates and products; inventions, works of authorship, trade
secrets, processes, conceptions, formulas, patents, patent applications, and licenses; business, product, marketing, sales, scientific
and technical strategies, programs and results, including costs and prices; suppliers, manufacturers, customers, market data, personnel,
and consultants; and other confidential matters related to Discloser. Pieris’ Confidential Information shall specifically
include any and all non-public sequence information provided by Pieris to Enumeral of Anticalin® proteins and/or
lipocalin muteins, any and all therapeutic or diagnostic information of Anticalin® proteins and/or lipocalin muteins
including any therapeutic drug programs derived therefrom, any and all information disclosed by Pieris to Enumeral relating to
target molecules of Anticalin® proteins; provided however that Pieris shall not disclose any information related
to the target molecules of any Anticalin® to Enumeral without the prior written consent of Enumeral. “Enumeral
Confidential Information” shall be Confidential Information disclosed by Enumeral and “Pieris Confidential Information”
shall be Confidential Information disclosed by Pieris.

 

Calendar Quarter. The term “Calendar Quarter”
means each three-month period in any year commencing with January 1 of such year.

 

Definitive Agreement. The term “Definitive
Agreement” shall have the meaning set forth in Section 4.

 

Developed IP. The term “Developed
IP” shall have the meaning set forth in Section 6.

 

Effective Date. The term “Effective Date”
shall have the meaning set forth in the first paragraph of the Agreement.

 

    	 	Page 2 of 28	 

     

    

 

Enumeral IP. The term “Enumeral IP”
shall mean (i) Know-How Enumeral owns or controls with respect to the First Antibody as of the Effective Date, (ii) Know-How Enumeral
owns or controls with respect to the Subsequent Antibody as of the Option Exercise Date (as defined in Section 4.7) and (iii) the,
Patent Rights Enumeral owns or controls claiming the First Antibody and, upon the Option Exercise Date, the Subsequent Antibody
(including, without limitation, any patents issuing on such patent applications, and any substitution, extension or supplementary
protection certificate, reissue, reexamination, renewal, division, continuation or continuation-in-part with respect thereto during
the Term); and in the case of each clause (i), (ii) and (iii) only as such Know How and Patent Rights relate to the First Antibody
and/or Subsequent Antibody, methods of using, administrating, manufacturing or formulating said First or Subsequent Antibody, useful
or necessary for Pieris to develop and commercialize Products under this Agreement. The Patent Rights as of the Effective Date
are listed in Exhibit A.

 

Exclusive Field. The term “Exclusive Field”
shall mean the uses within the Field that employ a First Antibody and/or a Subsequent Antibody fused with or linked to one or more
Anticalin® proteins.

 

Field. The term “Field” shall mean,
all therapeutic, prophylactic, diagnostic and palliative uses for the diagnosis and treatment of cancer, provided that, subject
to Section 4.8, any diagnostic uses shall be limited to Products and shall not include services until a Definitive Agreement is
reached, which the Parties intend will provide for the inclusion of diagnostic services within the Field.

 

First Antibody. The term “First Antibody”
shall mean, individually and collectively, the antibodies against PD-1 described in Exhibit B.

 

GLP Tox Study. The term “GLP
Tox Study” means, with respect to a Product, a study conducted in accordance with GLP for the purposes of assessing the efficacy,
safety or the onset, severity, and duration of toxic effects and their dose dependency to establish a profile sufficient to support
the filing of an investigational new drug application.

 

Good Laboratory Practice or GLP.  The term
“Good Laboratory Practice” or “GLP” means the then-current Good Laboratory Practice Standards promulgated
or endorsed by the U.S. Food and Drug Administration or in the case of any other country in the Territory, comparable regulatory
standards promulgated or endorsed by that country, including those procedures expressed in or contemplated by any Regulatory Filings.

 

Infringed Patent. The term “Infringed Patent”
shall mean an issued and unexpired patent (a) that has not been abandoned, held invalid, revoked, held or rendered unenforceable
or lost through interference and (b) the claims of which would be infringed by Pieris’ making, using, selling, offering for
sale or importing of the First Antibody, Subsequent Antibody, or any portion or component thereof, as the case may be.

 

Know-How. The term “Know-How” shall
mean data, knowledge and information, including chemical manufacturing data, toxicological data, pharmacological data, preclinical
data, formulations, specifications, quality control testing data, that are necessary or useful for the discovery, manufacture,
development or commercialization of any Product existing as of the date of this Agreement. For avoidance of doubt, Know-How does
not include the antibody screening technology licensed by Enumeral from the Massachusetts Institute of Technology (“MIT”)
and further does not require Enumeral to provide samples of the First Antibody. The Parties will agree in writing whether and to
what extent samples of any Subsequent Antibody are required in connection with the Definitive Agreement.

 

    	 	Page 3 of 28	 

     

    

 

Maintenance Fee. The term
“Maintenance Fee” shall have the meaning set forth in Section 4.

 

Major Markets. The term Major
Markets means the territories of North America, European Union and Japan.

 

Marketing Authorization or
MA. The term “Marketing Authorization” or “MA” shall mean shall mean any approvals, licenses, registrations
or authorizations, including any pricing approvals, necessary for the sale of a Product on the market in any country of the Territory
as granted by a competent regulatory authority.

 

Modifications. The term “Modifications”
means an alteration, mutation or derivative of the First Antibody or any Subsequent Antibody invented, conceived or reduced to
practice by or on behalf of Pieris, its Affiliates or its Sublicensees. For avoidance of doubt, Modification shall not mean the
First Antibody or the Subsequent Antibody fused with or linked to an Anticalin.

 

Net Sales. The term “Net
Sales” shall mean shall mean for a Product in a particular period, the sum of (1) and (2):

 

(1) the gross amount invoiced by Pieris
for sale of Products to Third Parties in the Field and Territory, excluding transactions transferring a Product to a Pieris Affiliate,
Sublicensee, distributor and/or agent for resale, less the sum of the following items:

 

		(a)	customary trade, prompt payment, quantity or cash discounts to the extent actually allowed and
taken;

 

		(b)	amounts repaid or credited by reason of rejection, recalls or returns;

 

		(c)	to the extent separately stated on purchase orders, invoices or other documents of sale, any taxes,
duties, tariffs or other governmental charges levied on the production, sale, transportation, delivery or use of a Product;

 

		(d)	outbound transportation costs prepaid or allowed and costs of insurance of transit;

 

		(e)	discounts or rebates or other payments required by law to be made under Medicaid, Medicare or other
governmental special medical assistance programs to the extent actually allowed and taken; and

 

		(f)	amounts written off by reason of uncollectible bad debt, but not to exceed * of the Net Sales per
calendar year.

 

No other deductions shall be made
for commissions paid to individuals whether they be with independent sales agencies or regularly employed by Pieris and on its
payroll, or for the cost of collections. Products shall be considered “sold” ninety (90) days after billing or invoicing,
or upon receipt of payment, whichever comes first, provided, however, that Products are actually shipped to customers.

 

(2) for Sublicensees,
the net sales amounts reported on a calendar quarterly basis to Pieris in accordance with the Sublicensee contractual terms and
their then-currently used accounting standards (provided, however, that such accounting standards are consistent with the US GAAP
and/or IFRS or such other internationally recognized accounting standards as may be agreed by the Parties).

 

    	 	Page 4 of 28	 

     

    

 

Party. The term “Party” shall mean
Pieris or Enumeral, as the case may be, and “Parties” shall mean Pieris and Enumeral collectively.

 

Patent Rights. The term “Patent Rights”
shall mean all rights under any patent or patent application, in any country of the Territory, including any patents issuing on
such patent application, and further including any substitution, extension or supplementary protection certificate, reissue, reexamination,
renewal, division, continuation or continuation-in-part to any of the foregoing.

 

Phase I Clinical Trial. The term “Phase
I Clinical Trial” means a human clinical trial for any Product in any country that would satisfy the requirements of 21 CFR
312.21(a).

 

Phase II Clinical Trial. The term “Phase
II Clinical Trial” means a human clinical trial conducted in any country that would satisfy the requirements of 21 CFR 312.21(b)
and is intended to explore one or more doses, dose response, and duration of effect, and to generate initial evidence of clinical
activity and safety, for any Product in the target patient population.

 

Phase III Clinical Trial. The term “Phase
III Clinical Trial” means a clinical trial in an extended human patient population designed to obtain data determining efficacy
and safety of any Product to support regulatory approvals in the proposed therapeutic indication, as more fully defined in 21 C.F.R.
§312.21(c), or its successor regulation, or the equivalent in any foreign country.

 

Product. The term “Product” shall
mean a fusion protein, or formulations containing such fusion protein, that constitutes a First Antibody, Subsequent Antibody and/or
Modification, which First Antibody, Subsequent Antibody, or any component or portion thereof, and/or Modification is fused with
or linked to at least one Anticalin®. For avoidance of doubt, Product may also include a First Antibody, Subsequent
Antibody and/or Modification that is fused with or linked to an Anticalin® and one or more additional proteins. The term “Product”
expressly includes bi- and multi-specific fusion proteins against at least two and up to an unlimited number of targets.

 

Royalty Term. The term “Royalty Term”
shall mean, with respect to a Product and for a given country, the period of time commencing on the date of first commercial sale
of the Product in such country and ending on the later of the date that is (a) ten (10) years after the date of the first commercial
sale of the Product in such country, or (b) the expiration of the last to expire or lapse of any valid claims of Patent Rights
owned by Enumeral and filed as of the Effective Date in such country covering the use, import, offering for sale, or sale of the
Product.

 

Sublicensee. The term “Sublicensee”
shall mean an entity to which Pieris has licensed any right (through one or multiple tiers) pursuant to this Agreement.

 

Subsequent Antibody. The term “Subsequent
Antibody” shall mean the antibody or antibodies which principally and specifically bind(s) to one of the target sites known
as * owned by Enumeral other than the First Antibody that is licensed by Pieris pursuant to Section 4.7, as will be more specifically
described in Exhibit C included in the Definitive Agreement.. 

 

    	 	Page 5 of 28	 

     

    

 

Territory. The term “Territory” shall
mean all countries of the world.

 

Term. The term “Term” shall have the
meaning set forth in Section 9.1.

 

Third Party. The term “Third Party”
shall mean any party other than Pieris or Enumeral.

 

2. Grant of License and Transfer 

 

2.1 License to Pieris. Subject to the terms and
conditions hereof, Enumeral hereby grants to Pieris during the Term a currently effective, royalty bearing, non-exclusive (except
as to the Exclusive Field) right and license (including the right to sublicense through multiple tiers), under Enumeral IP, to
research, have researched, develop, have developed, register, have registered, use, have used, make, have made, import, have imported,
export, have exported, market, have marketed, distribute, have distributed, sold and have sold Products in the Field and in the
Territory.

 

2.2 Transfer. Within ten (10) days of payment
of the Initial Fee, Enumeral shall provide to Pieris the full sequence information for the First Antibody and relevant Know-How
related to the First Antibody as described in the definition of Enumeral IP.

 

2.3 Exclusive Field. Until the completion of all
royalty payments under Section 4.5, Enumeral hereby covenants and agrees it shall not practice in the Exclusive Field. For avoidance
of any doubt, during such period of time, Enumeral shall not conduct any research or development efforts in the Exclusive Field
and shall not file any patent applications claiming any invention in the Exclusive Field or assist Third Parties in doing so. Enumeral
further shall not out-license any Enumeral IP for use in the Exclusive Field to any party other than Pieris and shall, if applicable,
include in any out-license or other agreement a restriction prohibiting the use of a First Antibody and/or Subsequent Antibody
in the Exclusive Field. Enumeral shall remain responsible for enforcement of this Section and shall by liable for any breach
of this Section by any licensee or sublicensee of Enumeral that violate this Section. Notwithstanding the foregoing, nothing herein
shall be deemed to prevent any Third Party from acquiring Enumeral, even if it is engaged in the research, development or sale
of lipocalins, provided it does not use such lipocalins with any Enumeral IP during the period herein.

 

2.4 Sublicenses. Pieris shall have the right to
sublicense or subcontract (through multiple tiers) without the prior consent of Enumeral; provided, however, that in the event
of such sublicensing, (a) such Sublicensees will be subject to at least the same confidentiality and diligence obligations Pieris
has hereunder, and (b) Pieris will remain liable for all the terms and conditions of this Agreement and for any breach by the Sublicensee
of these terms, (c) Pieris promptly notifies Enumeral of any Sublicense along with the identity of the applicable Sublicensee(s),
and (d) all Sublicenses shall be in writing. Pieris shall not sublicense the First Antibody, any Subsequent Antibody or a Modification
unless it is part of a Product.

 

3. Diligence. 

 

3.1 Diligence. During the Term of
the Agreement, Pieris shall use Commercially Reasonable Efforts to develop at least one Product for sale in at least each of the
Major Markets.

 

    	 	Page 6 of 28	 

     

    

 

4. Payments.

 

4.1 Initial Fee. Pieris shall pay
to Enumeral an initial fee of $250,000, which shall be due upon execution of this Agreement and paid within fifteen (15) days of
the Effective Date.

 

4.2 Maintenance Fee. By May 31, 2016 Pieris shall
pay to Enumeral a maintenance fee of $750,000 (“Maintenance Fee”). In the event that Pieris does not pay this
Maintenance Fee, the Agreement shall terminate and the license under Section 2.1 shall automatically terminate. For the avoidance
of doubt, the non-payment of the Maintenance Fee shall not be deemed a breach of this Agreement and other than the initial fee
set forth in Section 4.1, Pieris shall have no further financial obligation to Enumeral. Simultaneous with the payment of the Maintenance
Fee by Pieris, the Parties shall execute a full license and transfer agreement including customary contractual terms that set forth
all rights and obligations of the Parties (“Definitive Agreement”) and superseding this Agreement, which the
Parties hereby agree to diligently negotiate in good faith upon execution of the Agreement. If the Parties fail to agree on a Definitive
Agreement by the due date for payment of the Maintenance Fee specified in this Section, Pieris may elect, upon its sole discretion,
to pay the Maintenance Fee and this Agreement shall continue to govern the rights and obligations of the Parties. For avoidance
of any doubt, Enumeral shall not have the right to terminate this Agreement for failure to execute the Definitive Agreement. Moreover,
failure to execute a Definitive Agreement shall not affect any of Pieris’ or Enumeral’s rights under this Agreement.

 

4.3 Development Milestone Payments. With respect
to each of the First Antibody and the Subsequent Antibody, Pieris shall pay the following milestone payments to Enumeral by the
later of (i) * days of the occurrence of * Product (and * Product) to achieve each of the following events and (ii) * days of the
occurrence of the following events for any corresponding milestone payment with respect to any payment from Sublicensee to Pieris:

 

	Development Event	 	* Product, 

* indication	 	* Product or

indication	 	* Product or

indication
	Start of GLP Tox Studies	 	*	 	*	 	*
	Phase I Clinical Trial initiation (first in person dosing)	 	*	 	*	 	*
	Phase II Clinical Trial initiation (first in patient dosing)	 	*	 	*	 	*
	Phase III Clinical Trial initiation	 	*	 
	BLA filing US	 	*	 
	BLA or other marketing authorization filing EU	 	*	 
	BLA or other marketing authorization filing JP	 	*	 

 

    	 	Page 7 of 28	 

     

    

 

	BLA or other marketing authorization approval US	 	*	 	 	 	 
	BLA or other marketing authorization approval EU	 	*	 	 
	BLA or other marketing authorization approval JP	 	*	 	 
	Total	 	*	 	 
	Grand Total	 	$37,750,000 (thirty seven million seven hundred and fifty thousand dollars)

 

For avoidance of any doubt, in no event shall milestone
payments paid by Pieris under this Section 4.3 exceed $37,750,000 (thirty-seven million seven hundred and fifty thousand dollars)
for the First Antibody and $37,750,000 (thirty-seven million seven hundred and fifty thousand dollars) for the Subsequent Antibody.

 

4.4 Sales Milestone Payments. With respect to
each of the First Antibody and the Subsequent Antibody, Pieris shall pay the following sales milestone payments to Enumeral by
the later of (i) * days of the occurrence of * Product to achieve each of the following events and (ii) * days of the occurrence
of the following events for any corresponding milestone payment with respect to any payment from Sublicensee to Pieris:

 

	Net sales threshold	 	* Product	 	* Product
	1st year with Net Sales *	 	*	 	*
	1st year with Net Sales *	 	*	 	*
	1st year with Net Sales *	 	*	 	*
	Total	 	*	 	*
	Grand Total	 	$67,500,000 (sixty seven million five hundred thousand dollars)

 

For avoidance of any doubt, in no event shall milestone
payments paid by Pieris under this Section 4.4 exceed $67,500,000 (sixty-seven million five hundred thousand dollars) for the First
Antibody and $67,500,000 (sixty-seven million five hundred thousand dollars) for the Subsequent Antibody. Net Sales shall be calculated
on a worldwide basis.

 

4.5 Royalty Payments. During the Royalty Term,
Pieris shall pay the following royalty payments to Enumeral within the time set forth in Section 5.2(b):

 

	Royalty Tier	 	Royalty Rate on incremental annual Net Sales
	* in Net Sales	 	*
	* in Net Sales	 	*
	* in Net Sales	 	*
	* in Net Sales	 	*

 

    	 	Page 8 of 28	 

     

    

 

Royalty payments under this Section 4.5 shall be incremental
and calculated and paid on a Product-by-Product and on a worldwide basis. For avoidance of doubt, the Royalty Term shall be on
a country-by country basis and a royalty under this Section 4.5 shall not be paid for Net Sales in countries where the Royalty
Term has expired.

 

4.6 Royalty Payment Reduction.

 

4.6(a) In the event that Pieris is required to enter into
a license or other agreement and pay a license fee or royalty to any Third Party for an Infringed Patent, the royalty payment described
in Section 4.5 shall be reduced by the amount of such Third Party payment, up to fifty percent (50%) of the royalty payment for
each calendar year. For the avoidance of doubt, in no event shall the royalty rate under Section 4.5 be reduced by more than fifty
percent (50%) in any period.

 

4.6(b) In the event that no valid patent claim issues
from the Enumeral IP covering the First Antibody or Subsequent Antibody in a country or that all claims of the Enumeral IP covering
the First Antibody or Subsequent Antibody are subsequently invalidated in a country, then the royalty shall be reduced by * for
the duration of the Royalty Term on a country-by-country basis. For the avoidance of doubt, in no event shall the royalty rate
under Section 4.5 be reduced by more than * in any period.

 

4.7 Subsequent Antibody Payment. Enumeral hereby
grants to Pieris an exclusive option, for a period ending 12 months after the Effective Date, to license one (1) Subsequent Antibody
owned or controlled by Enumeral in order to develop and commercialize one or more additional Products within the Field. Such Subsequent
Antibody shall be identified by Pieris to Enumeral in writing no later than the time the Maintenance Fee is paid pursuant to Section
4.2. If Pieris wishes to exercise the option, Pieris shall pay Enumeral * within * days of Pieris’ written notice to Enumeral
of its election to exercise the option (“Option Exercise Date”) described in this section and within * days
of such payment, Enumeral shall provide to Pieris the full sequence information and any related Know-How for the Subsequent Antibody
useful or necessary for Pieris to develop and commercialize Products under this Agreement. In the event that Pieris makes such
an election, the Definitive Agreement (or this Agreement, in the event that there is no Definitive Agreement) shall apply to the
Subsequent Antibody mutatis mutandis as if the Subsequent Antibody was a new First Antibody, meaning all terms shall apply
to it in addition to the application of the terms to the First Antibody.

 

4.8 Diagnostic Services Payment. For a Product
used in connection with a diagnostic service, the Parties shall negotiate in good faith a payment structure for such services in
the Definitive Agreement by Pieris to Enumeral. Such payment structure shall be in view of Enumeral’s Third Party obligations
to the Massachusetts Institute of Technology and shall take into account the Parties’ desire to maintain the same overall
economic structure as set forth in this Agreement.

 

    	 	Page 9 of 28	 

     

    

 

4.9 Development and Commercialization. Pieris
shall be solely responsible for development and commercialization of all Products under this Agreement, and shall have no obligation
to consult with Enumeral regarding such development or commercialization activities.

 

5. Reports; Payments; Records. 

 

5.1 Reports and Payments.

 

(a) Reports. Within * days after the conclusion of each
Calendar Quarter commencing with the first Calendar Quarter in which Net Sales are generated, Pieris shall deliver to Enumeral
a report containing the following information (in each instance, on a Product-by-Product basis):

 

(i) the amount of Products sold, leased or otherwise transferred
or performed by Pieris, its Affiliates and Sublicensees for the applicable Calendar Quarter;

 

(ii) the gross amount billed or invoiced for Products sold,
leased or otherwise transferred or performed by Pieris, its Affiliates and Sublicensees during the applicable Calendar Quarter;

 

(iii) a calculation of Net Sales for the applicable Calendar
Quarter;

 

(v) the total amount payable to Enumeral in U.S. Dollars
on Net Sales for the applicable Calendar Quarter, together with the exchange rates used for conversion.

 

Each such quarterly report shall be certified on behalf
of Pieris by its chief financial officer as true, correct and complete in all material respects. If no amounts are due to Enumeral
for a particular Calendar Quarter, the report shall so state. To the extent that any of the information described in this Section
5.1(a) is not received from a Sublicensee, Pieris shall not be required to provide such information to Enumeral but shall take
actions to obtain such information.

 

(b) Payment. Within the later of (i) * days after the
end of each Calendar Quarter and (ii) * days after the end of each Quarter with respect to any payment from any Sublicensee, Pieris
shall pay Enumeral all amounts due with respect to Net Sales for the applicable Calendar Quarter.

 

5.2. Payment Currency. All payments due under
this Agreement will be paid in U.S. Dollars. Conversion of foreign currency to U.S. Dollars will be made at the conversion rate
existing in the United States (as reported in the Wall Street Journal) on the last working day of the applicable Calendar Quarter.
Such payments will be without deduction of exchange, collection or other charges.

 

    	 	Page 10 of 28	 

     

    

 

5.3. Records. Pieris shall maintain, and shall,
if applicable, cause its Affiliates to maintain, complete and accurate records of Products that are sold, leased or transferred
under this Agreement, any amounts payable to Enumeral in relation to such Products, which records shall contain sufficient information
to permit Enumeral to confirm the accuracy of any reports or notifications delivered to Enumeral under Section 5.1. Pieris and
its Affiliates, as applicable, shall retain such records relating to a given Calendar Quarter for at least * years after the conclusion
of that Calendar Quarter, during which time Enumeral will have the right, at its expense, to cause an independent, certified public
accountant to inspect such records of Pieris during normal business hours for the purposes of verifying the accuracy of any reports
and payments delivered under this Agreement and Pieris’ compliance with the terms hereof. Such accountant or other auditor,
as applicable, shall not disclose to Enumeral any information other than information relating to the accuracy of reports and payments
delivered under this Agreement. The Parties shall reconcile any underpayment or overpayment within * days after the accountant
delivers the results of the audit. If any audit performed under this Section 5.3 reveals an underpayment in excess of * in any
calendar year, Pieris shall reimburse Enumeral for all amounts incurred in connection with such audit. For avoidance of doubt,
Enumeral shall not have the right to audit or inspect Sublicensee(s) directly but may audit or inspect any applicable materials
received from Sublicensee and in the possession of Pieris. Pieris, however, shall audit Sublicensees and require royalty and milestone
reports in connection with any Sublicense. Enumeral may exercise its rights under this Section 5.3 only once every 12-month period
and only with reasonable prior notice.

 

5.4. Late Payments. Any payments by Pieris that
are not paid on or before the date such payments are due under this Agreement will bear interest at * per month. Interest will
accrue beginning on the first day following the due date for payment and will be compounded quarterly. Payment of such interest
by Pieris shall not limit, in any way, Enumeral’s right to exercise any other remedies Enumeral may have as a consequence
of the lateness of any payment.

 

5.5. Payment Method. Each payment due to Enumeral
under this Agreement shall be paid by check or wire transfer of funds to Enumeral’s account in accordance with written instructions
provided by Enumeral. If made by wire transfer, such payments shall be marked so as to refer to this Agreement.

 

5.6. Withholding and Similar Taxes. If Pieris
is required to withhold any amounts payable hereunder to Enumeral due to the applicable laws of any country, such amount will be
deducted from the payment to be made by Pieris and remitted to the appropriate taxing authority for the benefit of Enumeral. Pieris
will withhold only such amounts as are required to be withheld by applicable law in the country from which payment is being made.
Pieris shall submit to Enumeral originals of the remittance voucher and the official receipt evidencing the payment of the corresponding
taxes with the applicable royalty report. Pieris will cooperate with Enumeral to provide such information and records as Enumeral
may require in connection with any application by Enumeral to the tax authorities in any country, including attempt to obtain an
exemption or a credit for any withholding tax paid in any country.

 

6. Intellectual Property.

 

6.1 Product Intellectual Property. Pieris shall
have the right to file patent applications on inventions developed by, at the direction of, or under the sponsorship of Pieris
(including but not limited to inventions conceived or reduced to practice by Pieris employees, contractors, consultants, and/or
Sublicenses) related to any Product, materials, processes or other intellectual property generated under this Agreement including
any manufacture, formulation or use thereof (“Developed IP”). For avoidance of doubt, Developed IP includes
but is not limited to IP directed to the sequence for any Product and formulations, methods of use, and methods of manufacture
thereof. In the event of termination of this Agreement, Pieris shall continue to own such intellectual property.

 

    	 	Page 11 of 28	 

     

    

 

6.2 License to Enumeral. For any Developed IP
that falls outside of the scope of the Product and Developed IP related to the Product (including but not limited to the Product
formulations, methods of use of the Product, methods of manufacture of the Product, target-based claims including the Product,
and the Exclusive Field) (collectively, the “Grantback IP”), Pieris hereby grants to Enumeral, on a claim-by-claim
basis, a royalty free, fully paid up, non-exclusive license (with the right to sublicense) to any such claims from the Grantback
IP; for the sake of clarity, nothing in the license granted under this Section 6.2 shall affect the scope of the Exclusive Field
or the covenant by Enumeral under Section 2.3. Without limiting the foregoing, if Pieris files patent application and/or obtains
a patent containing a claim or claims directed to a Modification (other than a Modification fused with or linked to an Anticalin),
whether singly or one or more of many claims under a broader patent, then it (or such claims, as the case may be) shall be part
of the Grantback IP licensed hereunder, including but not limited to a composition of matter and method of use or manufacture,
and any vectors or host cells related thereto.

 

7. Liability and Indemnification. 

 

7.1 Indemnity by Enumeral. Enumeral shall indemnify,
defend and hold harmless Pieris, its Affiliates, their respective directors, officers, employees and agents, and their respective
successors, heirs and assigns (collectively, the “Pieris Indemnitees”) from and against all liabilities, damages, losses
and expenses (including reasonable attorneys’ fees and expenses of litigation) (collectively, “Losses”) (i) incurred
by or imposed upon the Pieris Indemnitees, or any of them, as a result of any claim by MIT, Whitehead Institute for Biomedical
Research, the General Hospital Corporation (d/b/a Massachusetts General Hospital), the President and Fellows of Harvard College,
and Howard Hughes Medical Institute (collectively the “MIT Agreement Parties”) in connection with any agreement between
the MIT Agreement Parties and Enumeral, or (ii) incurred by or imposed upon the Pieris Indemnitees, or any of them, as a direct
result of claims, suits, actions, demands or judgments of Third Parties arising out of or resulting from a breach of the representations
and warranties hereunder (collectively, the “Pieris Indemnity Claims”).

 

7.2 Indemnity by Pieris. Pieris shall indemnify,
defend and hold harmless Enumeral, its Affiliates, their respective directors, officers, employees and agents, and their respective
successors, heirs and assigns (collectively, the “Enumeral Indemnitees”) against any Losses incurred by or imposed
upon the Enumeral Indemnitees, or any of them, as a direct result of claims, suits, actions, demands or judgments of Third Parties
arising out of or resulting from (i) the development, commercialization, manufacture or use of any Product either before or after
the receipt of any MA or (ii) any breach of the representations and warranties hereunder (collectively, the “Enumeral Indemnity
Claims”).

 

    	 	Page 12 of 28	 

     

    

 

7.3 Conditions for Indemnification. A Person seeking
recovery under this Section 7 (the “Indemnified Party”) in respect of a Claim shall give prompt notice of such Claim
to the Party from whom indemnification is sought (the “Indemnifying Party”); and provided that the Indemnifying Party
is not contesting its obligation under this Section 7, shall permit the Indemnifying Party to control any litigation relating to
such Claim and the disposition of such Claim; and further provided, that the Indemnifying Party shall (a) act reasonably and in
good faith with respect to all matters relating to the settlement or disposition of such Claim as the settlement or disposition
relates to such Indemnified Party and (b) not settle or otherwise resolve such claim without the prior written consent of such
Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed). Each Indemnified Party shall cooperate
with the Indemnifying Party in its defense of any such Claim in all reasonable respects and shall have the right to be present
in person or through counsel at all legal proceedings with respect to such Claim. If the Indemnifying Party does not assume and
conduct the defense of the Claim as provided above, (a) the Indemnified Party may defend against, consent to the entry of any judgment,
or enter into any settlement with respect to such Claim in any manner the Indemnified Party may deem reasonably appropriate (and
the Indemnified Party need not consult with, or obtain any consent from, the Indemnifying Party in connection therewith), and (b)
the Indemnifying Party shall remain responsible to indemnify the Indemnified Party as provided in this Section 7.

 

7.4 Insurance. Each Party shall procure and maintain
insurance, including, as applicable to Pieris and any of its Affiliates, product liability insurance, or shall self-insure, in
each case in a manner adequate to cover its obligations under this Agreement and consistent with normal business practices of prudent
companies similarly situated at all times during the Term and for a period of five (5) years thereafter. Each Party shall procure
insurance or self-insure at its own expense. It is understood that such insurance shall not be construed to create a limit of either
Party’s liability with respect to its indemnification obligations under this Section 7. Each Party shall provide the other
Party with written evidence of such insurance or self-insurance upon request. Each Party shall provide the other Party with prompt
written notice prior to the cancellation, non-renewal or material change in such insurance.

 

8. Confidentiality. 

 

8.1 Treatment of Confidential Information. With
respect to Confidential Information of Discloser, Recipient agrees to: (a) use such Confidential Information solely as contemplated
by this Agreement (including by Pieris for the development and commercialization of one or more Products) and for no other purpose;
(b) hold such Confidential Information in confidence and not to disclose such Confidential Information to others, except to its
employees, consultants and representatives who require Confidential Information in order to carry out the Purpose and who are subject
to binding obligations of confidentiality and restricted use at least as protective as those of this Agreement; (c) protect the
confidentiality of such Confidential Information using at least the same level of efforts and measures used to protect its own
valuable confidential information, and at least commercially reasonable efforts and measures; and (d) notify Discloser as promptly
as practicable of any unauthorized use or disclosure of such Confidential Information of which Recipient becomes aware.

 

    	 	Page 13 of 28	 

     

    

 

8.2 Exceptions to Confidential Treatment. The
obligations of Section 8.1 shall not apply to any Confidential Information that: (a) Recipient knew before learning it under this
Agreement, as demonstrated by written records predating the date it was learned under this Agreement; (b) is now, or becomes in
the future, publicly available except by an act or omission of Recipient; (c) a Third Party discloses to Recipient without any
restriction on disclosure or breach of confidentiality obligations to which such Third Party is subject; or (d) Recipient independently
develops without use of or reference to Confidential Information, as demonstrated by Recipient’s written records contemporaneous
with such development.

 

8.3 Required Disclosures. Notwithstanding Section
8.1, Recipient may disclose Discloser’s Confidential Information to the extent and to the persons or entities required under
applicable governmental law, rule, regulation or order provided that Recipient (a) first gives prompt written notice of such disclosure
requirement to Discloser so as to enable Discloser to seek any limitations on or exemptions from such disclosure requirement and
(b) reasonably cooperates at Discloser’s request in any such efforts by Discloser.

 

8.4 Ownership of Confidential Information. Subject
to Section 8.6, Discloser retains all right, title and interest in and to its Confidential Information.

 

8.5 Publicity. Upon execution of this Agreement,
the Parties may file the Form 8-K statements attached as Exhibit D. No disclosure of the existence, or the terms, of this Agreement
may be made by either Party, and no Party shall use the name, trademark, trade name or logo of the other Party or its employees
in any publicity, promotion, news release or disclosure relating to this Agreement or its subject matter, without the prior express
written permission of the other Party, except as otherwise set forth herein and/or to the extent as may be required by law or regulation
(including, but not limited to, federal and state securities laws), for which prior written permission is not required. With respect
to any filing of this Agreement with the U.S. Securities and Exchange Commission, each Party will provide the other Party with
reasonable advance notice and a copy of the portion of such proposed filing to which the Agreement directly relates. Each Party
may provide comments and/or requests regarding any proposed confidential treatment of the Agreement or the terms and conditions
of the Agreement, as the case may be, and the other Party will consider any reasonable comments and requests made with respect
to such filing, provided that such comments and requests are consistent with applicable law and regulation. The Parties will agree
to propose redaction of the same information on any confidential treatment application for this Agreement (and, if applicable,
the Definitive Agreement). Notwithstanding this Section 8.5, each Party
shall be permitted to issue, at a later date, public filings, presentations and press releases regarding this Agreement or the
Definitive Agreement that contain information from the Parties’ Form 8-K statements attached as Exhibit D and, as applicable,
the Enumeral press release attached as Exhibit E.

 

8.6 Ownership of Information and Data. All information
generated by Pieris using Enumeral Confidential Information including but not limited to all data and information related to the
Product shall be the sole property of Pieris and Pieris shall have the unlimited right to use and disclose such information. All
information related to the Product, whether generated using Enumeral Confidential Information or otherwise, shall be the sole property
of Pieris. Pieris shall have no obligation to disclose the information described in this Section 8.6 to Enumeral.

 

    	 	Page 14 of 28	 

     

    

 

8.7 Third Party Disclosure. Notwithstanding anything
in this Section 8, either Party may share the existence and terms of this Agreement and Enumeral Confidential Information related
to the First Antibody with Third Parties under an obligation of confidentiality at least as restrictive as those of this Agreement
and the CDA (as defined below) without the prior consent of the other Party. This includes the right to provide such information
to potential investors in order to facilitate investment financing in connection with the development of one or more Products by
Pieris. In all events, each Party remains subject to its obligations set forth herein and in the CDA.

 

8.8 Prior Agreements. The parties have previously
entered into a Mutual Confidential Disclosure Agreement, dated October 9, 2015 (the “CDA”) and the Material Transfer
and Non-Disclosure Agreement, dated January 27, 2016 (the “MTA”). Confidential Information under this Agreement includes
all non-public information disclosed in connection with the CDA and the MTA. To the extent that there are any inconsistencies,
this Agreement shall supersede the CDA and the MTA.

 

9. Term and Termination. 

 

9.1 Term. The Term of this Agreement shall be
from the Effective Date and, in the absence of early termination as provided for below, shall expire upon the expiration of the
last to expire patent claim from the Enumeral IP covering the use, import, offering for sale or sale of any Product.

 

9.2 Termination by Pieris. Pieris may terminate
this Agreement at any time upon thirty (30) days’ notice.

 

9.3 Termination by Enumeral. Enumeral may terminate
this Agreement if Pieris breaches any of its material obligations under this Agreement and fails to cure such breach within sixty
(60) days (or thirty (30) days with respect to a breach of payment obligations by Pieris) following its receipt of written notice
thereof from Enumeral if such breach is curable within the aforesaid period; provided, however, that, without limiting
the application of Section 11.3 to this Agreement, if there is a dispute between the Parties in connection with such termination
under this Section 9.3 shall be subject to the dispute resolution procedures of Section 11.3.

 

9.4 Termination for Insolvency. A Party shall
have the right to terminate this Agreement in its entirety upon immediate written notice if the other Party (i) applies for or
consents to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of itself or of all
of a substantial part of its property, (ii) makes a general assignment for the benefit of its creditors, (iii) commences a voluntary
case under the Bankruptcy Code (as defined below) of any country, (iv) fails to controvert in a timely and appropriate manner,
or acquiesce in writing to, any petition filed against it in any involuntary case under the Bankruptcy Code of any country, (v)
takes a corporate action for the purpose of effecting any of the foregoing, or (vi) has an order for relief against it entered
in an involuntary case under the Bankruptcy Code of any country and, in any of (i) through (v) above, the application, assignment,
commencement, filing, or corporate action continues unstayed for, and/or is not otherwise discharged or withdrawn on or before,
a period of sixty (60) days.

 

    	 	Page 15 of 28	 

     

    

 

9.5 Effect of Termination. In the event of a termination
of this Agreement, (a) Pieris may retain and shall not be required to provide Enumeral with information or materials related to
any Products created or developed in connection with this Agreement, including the material described in Section 8.6 and (b) all
licenses to Enumeral IP shall terminate and, until a Definitive Agreement is reached to more distinctly set forth the Parties’
rights post-termination, Pieris shall no longer have the right to develop and commercialize Products.

 

9.6 Survival. The following Sections shall survive
termination or expiration of this Agreement:1, 4 (to the extent any payments are or will be earned as of or after termination),
5 (to the extent any payments are or will be earned as of or after termination), 6.1, 7, 8, 9, 10, 11.2, 11.3, 11,4, 11.5, 11.6,
11.7 and 11.8.

 

10. Representations and Warranties. 

 

10.1 No Notice of Infringement. Enumeral warrants
and represents that it has not received a cease and desist letter or otherwise been informed by a Third Party that it may be infringing
intellectual property related to the First Antibody or that would otherwise adversely impair Pieris’ ability to develop and
commercialize Products under this Agreement.

 

10.2 No Conflicting Obligation. Enumeral warrants
and represents that it has the ability to enter into this Agreement and that no agreement with any Third Party, including MIT,
conflicts with this Agreement.

 

10.3 Mutual Representations and Warranties. Pieris
and Enumeral each represents and warrants to the other, as of the Effective Date (except as otherwise noted), as follows:

 

(a) Organization. It is a corporation or company
duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, and has all requisite
power and authority, corporate or otherwise, to execute, deliver and perform this Agreement.

 

(b) Authorization. The execution and delivery
of this Agreement and the performance by it of the transactions contemplated hereby have been duly authorized by all necessary
corporate or company action and will not violate (a) such Party’s certificate of incorporation or bylaws (or equivalent organizational
documents), (b) any agreement, instrument or contractual obligation to which such Party is bound in any material respect, (c) any
requirement of any applicable laws, or (d) any order, writ, judgment, injunction, decree, determination or award of any court or
governmental agency presently in effect applicable to such Party.

 

(c) Binding Agreement. This Agreement is a legal,
valid and binding obligation of such Party, enforceable against it in accordance with its terms and conditions.

 

(d) No Inconsistent Obligation. It is not under
any obligation, contractual or otherwise, to any Person that conflicts with or is inconsistent in any respect with the terms of
this Agreement or that would impede the diligent and complete fulfillment of its obligations hereunder.

 

    	 	Page 16 of 28	 

     

    

 

(e) Compliance with Law. During the Term, it will
comply, and will ensure that its Affiliates comply, with all local, state, federal and international laws and regulations in all
material respects in connection with its obligations hereunder, including, with respect to Pieris, those laws and regulations relating
to the development, manufacture, use, sale and importation of Products.

 

11. Miscellaneous.

 

11.1 Bankruptcy. All licenses (and to the extent
applicable rights) granted under or pursuant to this Agreement by Enumeral to Pieris are, and shall otherwise be deemed to be,
for purposes of Section 365(n) of Title 11, United States Code (the “Bankruptcy Code”) licenses of rights to “intellectual
property” as defined under Section 101 of the Bankruptcy Code. The Parties agree that Pieris, as a licensee of such rights
under this Agreement, shall retain and may fully exercise all of its rights and elections under the Bankruptcy Code.

 

11.2 Limitation on Damages. Other than the representations
and warranties set forth herein, Pieris and Enumeral disclaim all other warranties, whether express or implied, with respect to
each of their obligations hereunder, including whether one or more Products can be successfully developed or marketed. In no event
shall either Pieris or Enumeral be liable for special, indirect, incidental or consequential damages arising out of this Agreement
based on contract, tort or any other legal theory.

 

11.3 Dispute Resolution. In the event of any controversy,
claim or counterclaim arising out of or in relation to this Agreement, the Parties will first attempt to resolve such controversy
or claim through good-faith negotiation between Pieris’ CEO and Enumeral’s CEO, for a period of not less than thirty
(30) days following written notification of such controversy or claim to the other Party. If such controversy or claim cannot be
resolved by means of such negotiations during such period, then it will be finally settled under the Rules of Arbitration of the
International Chamber of Commerce by one or more arbitrators appointed in accordance with such rules. The place of arbitration
will be New York, the language to be used in the arbitration proceedings will be English. Notwithstanding the foregoing, nothing
shall prevent either Party from seeking injunctive or other similar equitable relief in in the venue permitted by Section 11.4.

 

11.4 Governing Law. This Agreement shall be governed
by and construed in accordance with the laws of New York, without reference to its conflict of laws principles. Subject to Section
11.3, the Parties consent to the exclusive jurisdiction of the state and federal courts of New York in the event that there is
a dispute related to this Agreement.

 

11.5 Assignment. This Agreement may not be assigned
or transferred by either Party without the prior written consent of the other Party. Notwithstanding the foregoing, either Party
shall have the right to assign this Agreement to its Affiliates or to a Third Party in connection with: (i) an acquisition (of
or by), a consolidation with, or merger into, any other corporation or other entity or person; (ii) any corporate reorganization
wherein there is a change of control; or (iii) the sale of its business to which this Agreement is related; provided, however,
that in any such transaction the assignee expressly obligates itself in a written instrument delivered to the non-assigning
Party to this Agreement, on or before the date of closing of such transaction, to fully perform all of the obligations of the assigning
Party under this Agreement.  This right of assignment shall likewise be available to the assignee in the same manner as it
is to the assigning Party, and subsequent assignees in like manner, provided that in each instance of assignment, the assignee
provides the writing specified above to the non-assigning Party to this Agreement prior to the date of closing of such transaction.

 

    	 	Page 17 of 28	 

     

    

 

11.6 Entire Understanding. This Agreement contains
the entire understanding between the Parties hereto with respect to the within subject matter and supersedes any and all prior
agreements, understandings and arrangements, whether written or oral.

 

11.7 Unenforceable Provisions and Severability.
If any of the provisions of this Agreement are held to be void or unenforceable, then such void or unenforceable provisions shall
be replaced by valid and enforceable provisions that will achieve as far as possible the economic business intentions of the Parties.
However, the remainder of this Agreement will remain in full force and effect, provided that the material interests of the Parties
are not affected, i.e. the Parties would presumably have concluded this Agreement without the unenforceable provisions.

 

11.8 Waiver and Amendment. This Agreement may
be amended, modified, superseded or canceled, and any of the terms of this Agreement may be waived, only by a written instrument
executed by each Party or, in the case of waiver, by the Party or Parties waiving compliance. The delay or failure of either Party
at any time or times to require performance or to exercise any right arising out of any provisions shall in no manner affect the
rights at a later time to enforce the same. Any waiver by a party of a particular provision or right shall be in writing, shall
be as to a particular matter and, if applicable, for a particular period of time and shall be signed by such party. No single or
partial exercise of any right, power or privilege will preclude any other or further exercise of such right, power or privilege
or the exercise of any other right, power or privilege. No waiver by either Party of any condition or of the breach of any term
contained in this Agreement, whether by conduct, or otherwise, in any one or more instances, shall be deemed to be, or considered
as, a further or continuing waiver of any such condition or of the breach of such term or any other term of this Agreement. Except
as expressly set forth in this Agreement, all rights and remedies available to a party, whether under this Agreement or afforded
by applicable laws or otherwise, will be cumulative and not in the alternative to any other rights or remedies that may be available
to such party.

 

    	 	Page 18 of 28	 

     

    

 

In Witness Whereof, the Parties hereto have
executed this Agreement as of the Effective Date.

 

	Pieris Pharmaceuticals Inc.	 	Enumeral Biomedical Holdings Inc.
	 	 	 	 	 
	By	/s/ Stephen Yoder	 	By	/s/ John J. Rydzewski 
	 	 	 	 	 
	Name:	Stephen Yoder	 	Name:	John J. Rydzewski
	 	 	 	 	 
	Title:	President and CEO	 	Title:	Executive Chairman of the Board
	 	 	 	 	 
	Date:	18 April 2016	 	Date:	April 18, 2016
	 	 	 	 	 
	Pieris Pharmaceuticals GmbH	 	 	 
	 	 	 	 	 
	By	/s/ Stephen Yoder	 	 	 
	 	 	 	 	 
	Name:	Stephen Yoder	 	 	 
	 	 	 	 	 
	Title:	President and CEO	 	 	 
	 	 	 	 	 
	Date:	18 April 2016	 	 	 

 

    	 	Page 19 of 28	 

     

    

 

Exhibit A

 

Patent Rights as of the Effective Date

 

The subject matter that pertains to the First Antibody in the claims
(but not, for example, subject matter that would apply to a different antibody even if contained in the same claim) of the following
patent applications:

 

	Patent Application No.	 	Filing Date
	 	 	 
	*	 	
	 	 	 
		 	
	 	 	 
		 	
	 	 	 
		 	
	 	 	 
		 	

 

    	 	Page 20 of 28	 

     

    

 

Exhibit B

 

First Antibody Description

 

*

 

 

 

 

    	 	Page 21 of 28	 

     

    

 

Exhibit C

 

Subsequent Antibody Descriptions

 

[As completed with the Definitive Agreement]

 

Enumeral antibodies against * and *, including humanized or chimeric
sequences and other Know-How generated through the Option Exercise Date, to be described with specificity, in the event that one
or both Subsequent Antibody Options are exercised.

 

    	 	Page 22 of 28	 

     

    

 

Exhibit
D

 

Pieris
and Enumeral Form 8-K Filings 

 

Pieris Form 8-K Disclosure:

 

On April 18, 2016, Pieris Pharmaceuticals,
Inc. (the “Company”) and Pieris Pharmaceuticals GmbH, a wholly-owned subsidiary of the Company (together with the Company,
“Pieris”), entered into a license and transfer agreement (the “Agreement”) with Enumeral Biomedical Holdings,
Inc. (“Enumeral”), pursuant to which Pieris acquired a non-exclusive (except in the exclusive field described below)
worldwide license to use specified patent rights and know-how owned by Enumeral to research, develop and market fusion proteins
consisting of PD-1 antibodies linked to one or more Anticalin proteins for use in the oncology area. Enumeral also agreed not to
practice or assist third parties in practicing in the exclusive field, consisting of licensed antibodies fused to Anticalin proteins
in the oncology area. 

 

Under the Agreement, Pieris agreed to pay Enumeral
an upfront license fee of $250,000 and, on May 31, 2016, a $750,000 maintenance fee.   Under the initial license, Pieris
also agreed to pay to Enumeral development milestones of up to an aggregate of $37.8 million for all products and indications and
sales milestones of up to an aggregate of $67.5 million for all products and indications.  Pieris also agreed to pay Enumeral
royalties within a range in the low to lower-middle single digits as a percentage of net sales depending on the amount of net sales
in the applicable years.  In the event that Pieris is required to pay a license fee or royalty to any third party related
to the licensed products, the royalty payment due to Enumeral shall be reduced by the amount of such third party fees or payments,
up to 50% of the royalty payment for each calendar year due to Enumeral.  

 

Under the Agreement, Pieris has an option for
twelve months after the date of the Agreement to license from Enumeral one of a specified set of antibodies owned by Enumeral for
use in developing such fusion Anticalin proteins for use in the oncology area. If Pieris licenses an additional antibody pursuant
to the option described above, Pieris must pay to Enumeral an additional undisclosed upfront payment, and any resulting fusion
protein products will be subject to additional royalties and development and sales milestones in the same amounts applicable to
the fusion proteins linking PD-1 and Anticalins under the initial license. 

 

The term of the Agreement ends upon the expiration
of the last to expire patent covered under the license.   The Agreement may be terminated by Pieris on 30 days’
notice and by Enumeral upon 60 days’ notice of a material breach by Pieris (or 30 days with respect to a breach of payment
obligations by Pieris), provided that Pieris has not cured such breach and dispute resolution procedures specified in the Agreement
have been followed. The Agreement will also automatically terminate if Pieris elects to not make the maintenance fee payment described
above.

 

The foregoing description of the Agreement
does not purport to be complete and is qualified in its entirety by reference to the Agreement, which Pieris intends to file as
an exhibit to its Quarterly Report on Form 10-Q for the quarter ended March 31, 2016.

 

    	 	Page 23 of 28	 

     

    

 

Enumeral Form 8-K Disclosure:

 

On April 18, 2016, Enumeral Biomedical Holdings,
Inc. (with its subsidiaries, “Enumeral” or the “Company”) entered into a License and Transfer Agreement
(the “Agreement”) with Pieris Pharmaceuticals, Inc. and Pieris Pharmaceuticals GmbH (collectively, “Pieris”).
Pursuant to the terms of the Agreement, Enumeral is granting Pieris a non-exclusive, royalty-bearing worldwide license to use specified
Enumeral patent rights and know-how to research, develop and market fusion proteins consisting of Enumeral’s 388D4 family
of anti-PD-1 antibodies linked to one or more Pieris Anticalin proteins for use in the oncology area. Enumeral has agreed not to
practice or assist third parties in practicing in an exclusive field consisting of licensed antibodies fused to Anticalin proteins
in the oncology area. 

 

Pursuant to the Agreement, Pieris has agreed
to pay Enumeral an upfront initial license fee of $250,000. The Agreement also provides that Pieris has an option to continue the
license by paying Enumeral an additional maintenance fee in the amount of $750,000 by May 31, 2016. In the event that Pieris does
not pay this maintenance fee by May 31, 2016, the Agreement expires and the license granted thereunder automatically terminates.

 

If Pieris elects to continue the license and
pays Enumeral the maintenance fee, the Agreement provides that Pieris shall also receive an option for twelve months following
the date of the Agreement to license from Enumeral one of a specified set of antibodies owned by Enumeral on the same terms and
conditions as for Enumeral’s 388D4 family of anti-PD-1 antibodies (the “Subsequent Option”). In the event that
Pieris exercises the Subsequent Option, Pieris will pay Enumeral an additional undisclosed license fee.

 

The terms of the Agreement provide for Pieris
to pay Enumeral development milestones of up to an aggregate of $37.8 million upon the achievement of specified events, as well
as net sales milestone payments of up to an aggregate of $67.5 million upon the achievement of specified net sales thresholds. 
Pieris also agrees to pay Enumeral royalties in the low-to-lower middle single digits as a percentage of net sales depending on
the amount of net sales in the applicable years.  In the event that Pieris is required to pay a license fee or royalty to
any third party related to the licensed products, the royalty payment due to Enumeral shall be reduced by the amount of such third
party fees or payments, up to 50% of the royalty payment for each calendar year due to Enumeral.  

 

The Agreement also provides that in the event
Pieris licenses an additional antibody pursuant to the Subsequent Option, any resulting fusion protein products will be subject
to additional royalties and development and sales milestones in the same amounts applicable to the fusion proteins linking PD-1
and Anticalins under the initial license. 

 

 

    	 	Page 24 of 28	 

     

    

 

Pursuant to the terms of the Agreement, Enumeral will indemnify
Pieris Indemnitees (as defined in the Agreement) against certain claims specified therein, including with respect to breaches of
representations and warranties, as well as claims by the Massachusetts Institute of Technology and other specified entities who
are parties to an agreement with Enumeral. In addition, Pieris will indemnify Enumeral Indemnitees (as defined in the Agreement)
against certain claims specified therein, including with respect to breaches of representations and warranties, as well as with
respect to the development, commercialization, manufacture or use of any Product before or after Marketing Authorization (as such
terms are defined in the Agreement). The Agreement also contains customary representations and warranties for both Enumeral and
Pieris.

 

The term of the Agreement ends upon the expiration
of the last to expire patent covered under the license.   The Agreement may be terminated by Pieris on 30 days’
notice and by Enumeral upon 60 days’ notice of a material breach by Pieris (or 30 days with respect to a breach of payment
obligations by Pieris), provided that Pieris has not cured such breach and that dispute resolution procedures specified in the
Agreement have been followed. The Agreement will also automatically terminate if Pieris elects to not make the maintenance fee
payment described above.

 

    	 	Page 25 of 28	 

     

    

 

Exhibit E

 

Enumeral Press Release

 

Enumeral and Pieris Pharmaceuticals Enter
into 

License and Transfer Agreement

 

CAMBRIDGE, Mass.—April 18, 2016—Enumeral
Biomedical Holdings, Inc. (OTCQB: ENUM) (“Enumeral” or the “Company”), a biotechnology company focused
on discovering and developing novel antibody-based immunotherapies to help the immune system fight cancer and other diseases, today
announced that it has entered into a License and Transfer Agreement (the “License Agreement”) with Pieris Pharmaceuticals,
Inc. and Pieris Pharmaceuticals GmbH (collectively, “Pieris”).

 

Pursuant to the terms and conditions of the
License Agreement, Pieris is licensing from Enumeral specified intellectual property related to Enumeral’s anti-PD-1 antibody
program ENUM 388D4 for the potential development and commercialization by Pieris of novel multispecific therapeutic proteins comprising
fusion proteins based on Pieris’ Anticalins®
class of therapeutic proteins and Enumeral antibodies in the field of oncology.

 

Under the License Agreement, Pieris has agreed
to pay Enumeral a $250,000 initial license fee, and Enumeral is providing Pieris with sequence and related information for Enumeral’s
388D4 family of anti-PD-1 antibodies. The License Agreement provides that Pieris may continue the license by paying Enumeral an
additional maintenance fee in the amount of $750,000 by May 31, 2016. In the event that Pieris does not pay this maintenance fee
by May 31, 2016, the License Agreement expires and the license granted thereunder automatically terminates.

 

If Pieris elects to continue the license and
pays Enumeral the maintenance fee, the License Agreement provides that Pieris shall also receive an exclusive twelve-month option
to license Enumeral intellectual property related to an additional antibody program on the same terms and conditions as for the
ENUM 388D4 family of anti-PD-1 antibodies (the “Subsequent Option”). The antibody subject to the Subsequent Option
will be selected by Pieris from a specified list of antibodies owned by Enumeral. In the event that Pieris exercises the Subsequent
Option, Pieris will pay Enumeral an additional undisclosed license fee.

 

The terms of the License Agreement provide
for Pieris to pay Enumeral development milestones of up to an aggregate of $37.8 million upon the achievement of specified events,
as well as net sales milestone payments of up to an aggregate of $67.5 million upon the achievement of specified net sales thresholds.
Under the License Agreement, Pieris also agrees to pay Enumeral royalties in the low-to-lower middle single digits as a percentage
of net sales depending on the amount of net sales in the applicable years. In the event that Pieris licenses an additional antibody
pursuant to the Subsequent Option, any resulting fusion protein products will be subject to the same royalties and development
and sales milestones applicable to the fusion proteins linking PD-1 and Anticalins under the initial license.

 

    	 	Page 26 of 28	 

     

    

 

“We are excited that Pieris has decided
to work with our antibody sequences, and we are encouraged that these sequences could become part of a novel class of therapeutic
based on Pieris’ Anticalin platform,” said Cokey Nguyen, Ph.D., Enumeral’s Vice President of Research and Development.
“Enumeral has been able to generate antibodies using our proprietary platform technology in a very efficient manner, and
this transaction is further validation for the Enumeral approach. We look forward to working with Pieris as we pursue our mutual
interests under the License Agreement.”

 

"Gaining access to Enumeral's valuable
PD-1 antibody IP not only enables Pieris to leverage its antibody-Anticalin multispecifics capabilities with a cornerstone immune
checkpoint inhibitor, but also brings a high level of intra-pipeline synergy, including with Pieris’ lead CD137 bispecific
immune costimulator candidate PRS-343," commented Pieris President and CEO, Stephen S. Yoder. "This license gives Pieris
an opportunity to independently develop anti-PD-1 antibody-Anticalin multispecific immune checkpoint inhibitors as next generation
cancer immunotherapeutics."

 

About Enumeral

 

Enumeral is a biopharmaceutical company discovering
and developing novel antibody immunotherapies that help the immune system fight cancer and other diseases. The Company is building
a pipeline focused on next-generation checkpoint modulators, with initial targets including PD-1, TIM-3, LAG-3, OX40, and VISTA.
In developing these agents, Enumeral’s researchers apply a proprietary immune profiling technology platform that measures
functioning of the human immune system at the level of individual cells, providing key insights for candidate selection and validation.
For more information on Enumeral, please visit www.enumeral.com.

 

About Pieris

 

Pieris Pharmaceuticals is a clinical-stage biotechnology company
that discovers and develops Anticalin-based drugs to target validated disease pathways in a unique and transformative way. Pieris’
pipeline includes immuno-oncology multi-specifics tailored for the tumor micro-environment, an inhaled Anticalin to treat uncontrolled
asthma and a half-life-optimized Anticalin to treat anemia. Proprietary to Pieris, Anticalins are a novel class of protein therapeutics
validated in the clinic and by partnerships with leading pharmaceutical companies. Anticalin®, Anticalins®
are registered trademarks of Pieris. For more information visit www.pieris.com.

 

    	 	Page 27 of 28	 

     

    

 

Forward Looking Statements Disclosure

 

This press release contains certain “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements reflect
current beliefs of Enumeral Biomedical Holdings, Inc. (“Enumeral”) with respect to future events and involve known
and unknown risks, uncertainties, and other factors affecting operations, market growth, Enumeral’s stock price, services,
products and licenses. No assurances can be given regarding the achievement of future results, and although Enumeral believes that
the expectations reflected in these forward-looking statements are based on reasonable assumptions, actual results may differ from
the assumptions underlying the statements that have been made regarding anticipated events. Factors that may cause actual results,
performance or achievements, or industry results to differ materially from those contemplated by such forward-looking statements
include, among others, the risks that (a) Enumeral’s expectations regarding market acceptance of the Company’s business
in general and the Company’s ability to penetrate the antibody discovery and development fields in particular, as well as
the timing of such acceptance, (b) Enumeral’s ability to attract and retain management with experience in biotechnology and
antibody discovery and similar emerging technologies, (c) the scope, validity and enforceability of Enumeral’s and third
party intellectual property rights, (d) Enumeral’s ability to raise capital when needed and on acceptable terms and conditions,
(e) Enumeral’s ability to comply with governmental regulation, (f) the intensity of competition, (g) changes in the political
and regulatory environment and in business and fiscal conditions in the United States and overseas and (h) general economic conditions.

 

More detailed information about Enumeral and
risk factors that may affect the realization of forward-looking statements, including forward-looking statements in this press
release, is set forth in Enumeral’s filings with the Securities and Exchange Commission. Enumeral urges investors and security
holders to read those documents free of charge at the Commission’s website at http://www.sec.gov. Forward-looking
statements speak only as to the date they are made, and except for any obligation under the U.S. federal securities laws, Enumeral
undertakes no obligation to publicly update any forward-looking statement as a result of new information, future events or otherwise.

 

Contact

Enumeral Biomedical Holdings, Inc.

Kevin Sarney, (617) 945-9146

kevin@enumeral.com

 

    	 	Page 28 of 28

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