Document:

iddr_ex102.htm

EXHIBIT 10.2

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

	
Principal Amount: US$168,500.00 
	
Issue Date: April 10, 2017

	
Purchase Price: US$168,500.00
	
 

 

CONVERTIBLE PROMISSORY NOTE

 

FOR VALUE RECEIVED, IDDRIVEN, INC., a Nevada corporation (hereinafter called the “Borrower”), hereby promises to pay to the order of AUCTUS FUND, LLC, a Delaware limited liability company, or registered assigns (the “Holder”) the sum of US$168,500.00 together with any interest as set forth herein, on January 10, 2018 (the “Maturity Date”), and to pay interest on the unpaid principal balance hereof at the rate of ten percent (10%) (the “Interest Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment or otherwise. This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein with the written consent of the Holder which may be withheld for any reason or for no reason. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of twenty-four percent (24%) per annum from the due date thereof until the same is paid (the “Default Interest”). Interest shall commence accruing on the date that the Note is fully paid and shall be computed on the basis of a 360-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a business day, the same shall instead be due on the next succeeding day which is a business day and, in the case of any interest payment date which is not the date on which this Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining the amount of interest due on such date. As used in this Note, the term “business day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the city of New York, New York are authorized or required by law or executive order to remain closed. Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”).

	 
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This Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof. 

 

The following terms shall apply to this Note:

 

ARTICLE I. CONVERSION RIGHTS

 

1.1 Conversion Right. The Holder shall have the right from time to time, and at any time following the Issue Date and ending on the later of (i) the Maturity Date and (ii) the date of payment of the Default Amount (as defined in Article III) pursuant to Section 1.6(a) or Article III, each in respect of the remaining outstanding principal amount of this Note to convert all or any part of the outstanding and unpaid principal amount of this Note into fully paid and non-assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the Conversion Price (as defined below) determined as provided herein (a “Conversion”); provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided, further, however, that the limitations on conversion may be waived by the Holder upon, at the election of the Holder, not less than 61 days’ prior notice to the Borrower, and the provisions of the conversion limitation shall continue to apply until such 61st day (or such later date, as determined by the Holder, as may be specified in such notice of waiver). The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”). The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) at the Holder’s option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, provided however, that the Borrower shall have the right to pay any or all interest in cash plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.

	 
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1.2 Conversion Price.

 

Calculation of Conversion Price. Subject to the adjustments described herein, the conversion price (the “Conversion Price”) shall equal $0.04, provided, however, that at any time after the 180th day after the Issue Date, the Conversion Price shall equal the lesser of (i) 60% multiplied by the lowest Trading Price (as defined below) (representing a discount rate of 40%) during the previous twenty (20) Trading Day period ending on the latest complete Trading Day prior to the date of this Note and (ii) the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 60% multiplied by the Market Price (as defined herein) (representing a discount rate of 40%). “Market Price” means the lowest Trading Price (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. “Trading Price” means, for any security as of any date, the lesser of: (i) the lowest trade price on the OTC Pink, OTCQB or applicable trading market as reported by a reliable reporting service (“Reporting Service”) designated by the Holder or, if the OTC Pink is not the principal trading market for such security, the trading price of such security on the principal securities exchange or trading market where such security is listed or traded or, if no trading price of such security is available in any of the foregoing manners, the average of the trading prices of any market makers for such security that are listed in the “pink sheets” by the National Quotation Bureau, Inc., or (ii) the closing bid price on the OTC Pink, OTCQB or applicable trading market as reported by a Reporting Service designated by the Holder or, if the OTC Pink is not the principal trading market for such security, the closing bid price of such security on the principal securities exchange or trading market where such security is listed or traded or, if no closing bid price of such security is available in any of the foregoing manners, the average of the closing bid prices of any market makers for such security that are listed in the “pink sheets” by the National Quotation Bureau, Inc. To the extent the Conversion Price of the Borrower’s Common Stock closes below the par value per share, the Borrower will take all steps necessary to solicit the consent of the stockholders to reduce the par value to the lowest value possible under law. The Borrower agrees to honor all conversions submitted pending this adjustment. Furthermore, the Conversion Price may be adjusted downward if, within three (3) business days of the transmittal of the Notice of Conversion to the Borrower, the Common Stock has a closing bid which is 5% or lower than that set forth in the Notice of Conversion. If the shares of the Borrower’s Common Stock have not been delivered within three (3) business days to the Borrower, the Notice of Conversion may be rescinded. At any time after the Closing Date, if in the case that the Borrower’s Common Stock is not deliverable by DWAC (including if the Borrower’s transfer agent has a policy prohibiting or limiting delivery of shares of the Borrower’s Common Stock specified in a Notice of Conversion), an additional 10% discount will apply for all future conversions under all Notes. If in the case that the Borrower’s Common Stock is “chilled” for deposit into the DTC system and only eligible for clearing deposit, an additional 15% discount shall apply for all future conversions under all Notes while the “chill” is in effect. If in the case of both of the above, an additional cumulative 25% discount shall apply. Additionally, if the Company ceases to be a reporting company pursuant to the 1934 Act or if the Note cannot be converted into free trading shares after one hundred eighty-one (181) days from the Issue Date, an additional 15% discount will be attributed to the Conversion Price. If the Trading Price cannot be calculated for such security on such date in the manner provided above, the Trading Price shall be the fair market value as mutually determined by the Borrower and the holders of a majority in interest of the Notes being converted for which the calculation of the Trading Price is required in order to determine the Conversion Price of such Notes. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTC Pink, OTCQB or on the principal securities exchange or other securities market on which the Common Stock is then being traded. The Borrower shall be responsible for the fees of its transfer agent and all DTC fees associated with any such issuance. Holder shall be entitled to deduct $500.00 from the conversion amount in each Notice of Conversion to cover Holder’s deposit fees associated with each Notice of Conversion.

	 
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While this Note is outstanding, each time any 3rd party has the right to convert monies owed to that 3rd party (or receive shares pursuant to a settlement or otherwise), including but not limited to under Section 3(a)(9) and Section 3(a)(10), at a discount to market greater than the Conversion Price in effect at that time (prior to all other applicable adjustments in the Note), then the H1older, in Holder’s sole discretion, may utilize such greater discount percentage (prior to all applicable adjustments in this Note) until this Note is no longer outstanding. While this Note is outstanding, each time any 3rd party has a look back period greater than the look back period in effect under the Note at that time, including but not limited to under Section 3(a)(9) and Section 3(a)(10), then the Holder, in Holder’s sole discretion, may utilize such greater number of look back days until this Note is no longer outstanding. The Borrower shall give written notice to the Holder within one (1) business day of becoming aware of any event that could permit the Holder to make any adjustment described in the two immediately preceding sentences. 

 

(a) Conversion Price During Major Announcements. Notwithstanding anything contained in Section 1.2(a) to the contrary, in the event the Borrower (i) makes a public announcement that it intends to consolidate or merge with any other corporation (other than a merger in which the Borrower is the surviving or continuing corporation and its capital stock is unchanged) or sell or transfer all or substantially all of the assets of the Borrower or (ii) any person, group or entity (including the Borrower) publicly announces a tender offer to purchase 50% or more of the Borrower’s Common Stock (or any other takeover scheme) (the date of the announcement referred to in clause (i) or (ii) is hereinafter referred to as the “Announcement Date”), then the Conversion Price shall, effective upon the Announcement Date and continuing through the Adjusted Conversion Price Termination Date (as defined below), be equal to the lower of (x) the Conversion Price which would have been applicable for a Conversion occurring on the Announcement Date and (y) the Conversion Price that would otherwise be in effect. From and after the Adjusted Conversion Price Termination Date, the Conversion Price shall be determined as set forth in this Section 1.2(a). For purposes hereof, “Adjusted Conversion Price Termination Date” shall mean, with respect to any proposed transaction or tender offer (or takeover scheme) for which a public announcement as contemplated by this Section 1.2(b) has been made, the date upon which the Borrower (in the case of clause (i) above) or the person, group or entity (in the case of clause (ii) above) consummates or publicly announces the termination or abandonment of the proposed transaction or tender offer (or takeover scheme) which caused this Section 1.2(b) to become operative.

	 
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(b) Pro Rata Conversion; Disputes. In the event of a dispute as to the number of shares of Common Stock issuable to the Holder in connection with a conversion of this Note, the Borrower shall issue to the Holder the number of shares of Common Stock not in dispute and resolve such dispute in accordance with Section 4.13.

 

1.3 Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at all times to have authorized and reserved eight times the number of shares that is actually issuable upon full conversion of the Note (based on the Conversion Price of the Notes in effect from time to time) (the “Reserved Amount”). The Reserved Amount shall be increased from time to time in accordance with the Borrower’s obligations pursuant to Section 3(d) of the Purchase Agreement. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Notes. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note. Notwithstanding the foregoing, in no event shall the Reserved Amount be lower than the initial Reserved Amount, regardless of any prior conversions.

 

If, at any time the Borrower does not maintain or replenish the Reserved Amount within three (3) business days of the request of the Holder, the principal amount of the Note shall increase by Five Thousand and No/100 United States Dollars ($5,000) (under Holder’s and Borrower’s expectation that any principal amount increase will tack back to the Issue Date) per occurrence.

 

1.4 Method of Conversion.

 

(a) Mechanics of Conversion. Subject to Section 1.1, this Note may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 5:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower. 

	 
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(b) Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion. In the event of any dispute or discrepancy, such records of the Borrower shall, prima facie, be controlling and determinative in the absence of manifest error. Notwithstanding the foregoing, if any portion of this Note is converted as aforesaid, the Holder may not transfer this Note unless the Holder first physically surrenders this Note to the Borrower, whereupon the Borrower will forthwith issue and deliver upon the order of the Holder a new Note of like tenor, registered as the Holder (upon payment by the Holder of any applicable transfer taxes) may request, representing in the aggregate the remaining unpaid principal amount of this Note. The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be less than the amount stated on the face hereof.

 

(c) Payment of Taxes. The Borrower shall not be required to pay any tax which may be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock or other securities or property on conversion of this Note in a name other than that of the Holder (or in street name), and the Borrower shall not be required to issue or deliver any such shares or other securities or property unless and until the person or persons (other than the Holder or the custodian in whose street name such shares are to be held for the Holder’s account) requesting the issuance thereof shall have paid to the Borrower the amount of any such tax or shall have established to the satisfaction of the Borrower that such tax has been paid.

 

(d) Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement.

 

(e) Obligation of Borrower to Deliver Common Stock. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations under this Article I, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion. The Conversion Date specified in the Notice of Conversion shall be the Conversion Date so long as the Notice of Conversion is received by the Borrower before 5:00 p.m., New York, New York time, on such date.

	 
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(f) Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions contained in Section 1.1 and in this Section 1.4, the Borrower shall use its commercially reasonable best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal At Custodian (“DWAC”) system.

 

(g) DTC Eligibility & Sub-Penny. If the Borrower fails to maintain its status as “DTC Eligible” for any reason, or, if the Conversion Price is less than $0.01, the principal amount of the Note shall increase by Fifteen Thousand and No/100 United States Dollars ($15,000) (under Holder’s and Borrower’s expectation that any principal amount increase will tack back to the Issue Date). In addition, the Variable Conversion Price shall be redefined to mean forty percent (40%) multiplied by the Market Price, subject to adjustment as provided in this Note.

 

(h) Failure to Deliver Common Stock Prior to Delivery Deadline. Without in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (other than a failure due to the circumstances described in Section 1.3 above, which failure shall be governed by such Section) the Borrower shall pay to the Holder $2,000 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock until the Borrower issues and delivers a certificate to the Holder or credit the Holder's balance account with OTC for the number of shares of Common Stock to which the Holder is entitled upon such Holder's conversion of any Conversion Amount (under Holder's and Borrower's expectation that any damages will tack back to the Issue Date).. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly the parties acknowledge that the liquidated damages provision contained in this Section 1.4(h) are justified.

	 
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(i) Rescindment of a Notice of Conversion. If (i) the Borrower fails to respond to Holder within one (1) business day from the Conversion Date confirming the details of Notice of Conversion, (ii) the Borrower fails to provide any of the shares of the Borrower’s Common Stock requested in the Notice of Conversion within three (3) business days from the date of receipt of the Note of Conversion, (iii) the Holder is unable to procure a legal opinion required to have the shares of the Borrower’s Common Stock issued unrestricted and/or deposited to sell for any reason related to the Borrower’s standing, (iv) the Holder is unable to deposit the shares of the Borrower’s Common Stock requested in the Notice of Conversion for any reason related to the Borrower’s standing, (v) at any time after a missed Deadline, at the Holder’s sole discretion, or (vi) if OTC Markets changes the Borrower's designation to ‘Limited Information’ (Yield), ‘No Information’ (Stop Sign), ‘Caveat Emptor’ (Skull & Crossbones), ‘OTC’, ‘Other OTC’ or ‘Grey Market’ (Exclamation Mark Sign) or other trading restriction on the day of or any day after the Conversion Date, the Holder maintains the option and sole discretion to rescind the Notice of Conversion (“Rescindment”) with a “Notice of Rescindment.”

 

1.5 Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer agent shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration or (iii) such shares are sold or transferred pursuant to Rule 144 under the Act (or a successor rule) (“Rule 144”) or (iv) such shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). Except as otherwise provided in the Purchase Agreement (and subject to the removal provisions set forth below), until such time as the shares of Common Stock issuable upon conversion of this Note have been registered under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included in an effective registration statement or that has not been sold pursuant to an effective registration statement or an exemption that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:

  

	
 
	
“NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”
	
 

 

	 
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The legend set forth above shall be removed and the Borrower shall issue to the Holder a new certificate therefore free of any transfer legend if (i) the Borrower or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made without registration under the Act, which opinion shall be reasonably accepted by the Borrower so that the sale or transfer is effected or (ii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder under an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold. In the event that the Borrower does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to Section 3.2 of the Note.

 

1.6 Effect of Certain Events.

 

(a) Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall either: (i) be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III) or (ii) be treated pursuant to Section 1.6(b) hereof. “Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.

 

(b) Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Notes, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, thirty (30) days prior written notice (but in any event at least fifteen (15) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Section 1.6(b). The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.

	 
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(c) Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution.

 

(d) Adjustment Due to Dilutive Issuance. If, at any time when any Notes are issued and outstanding, the Borrower issues or sells, or in accordance with this Section 1.6(d) hereof is deemed to have issued or sold, except for shares of Common Stock issued directly to vendors or suppliers of the Borrower in satisfaction of amounts owed to such vendors or suppliers (provided, however, that such vendors or suppliers shall not have an arrangement to transfer, sell or assign such shares of Common Stock prior to the issuance of such shares), any shares of Common Stock for no consideration or for a consideration per share (before deduction of reasonable expenses or commissions or underwriting discounts or allowances in connection therewith) less than the Conversion Price in effect on the date of such issuance (or deemed issuance) of such shares of Common Stock (a “Dilutive Issuance”), then immediately upon the Dilutive Issuance, the Conversion Price will be reduced to the amount of the consideration per share received by the Borrower in such Dilutive Issuance.

 

The Borrower shall be deemed to have issued or sold shares of Common Stock if the Borrower in any manner issues or grants any warrants, rights or options (not including employee stock option plans), whether or not immediately exercisable, to subscribe for or to purchase Common Stock or other securities convertible into or exchangeable for Common Stock (“Convertible Securities”) (such warrants, rights and options to purchase Common Stock or Convertible Securities are hereinafter referred to as “Options”) and the price per share for which Common Stock is issuable upon the exercise of such Options is less than the Conversion Price then in effect, then the Conversion Price shall be equal to such price per share. For purposes of the preceding sentence, the “price per share for which Common Stock is issuable upon the exercise of such Options” is determined by dividing (i) the total amount, if any, received or receivable by the Borrower as consideration for the issuance or granting of all such Options, plus the minimum aggregate amount of additional consideration, if any, payable to the Borrower upon the exercise of all such Options, plus, in the case of Convertible Securities issuable upon the exercise of such Options, the minimum aggregate amount of additional consideration payable upon the conversion or exchange thereof at the time such Convertible Securities first become convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the exercise of all such Options (assuming full conversion of Convertible Securities, if applicable). No further adjustment to the Conversion Price will be made upon the actual issuance of such Common Stock upon the exercise of such Options or upon the conversion or exchange of Convertible Securities issuable upon exercise of such Options.

	 
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Additionally, the Borrower shall be deemed to have issued or sold shares of Common Stock if the Borrower in any manner issues or sells any Convertible Securities, whether or not immediately convertible (other than where the same are issuable upon the exercise of Options), and the price per share for which Common Stock is issuable upon such conversion or exchange is less than the Conversion Price then in effect, then the Conversion Price shall be equal to such price per share. For the purposes of the preceding sentence, the “price per share for which Common Stock is issuable upon such conversion or exchange” is determined by dividing (i) the total amount, if any, received or receivable by the Borrower as consideration for the issuance or sale of all such Convertible Securities, plus the minimum aggregate amount of additional consideration, if any, payable to the Borrower upon the conversion or exchange thereof at the time such Convertible Securities first become convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the conversion or exchange of all such Convertible Securities. No further adjustment to the Conversion Price will be made upon the actual issuance of such Common Stock upon conversion or exchange of such Convertible Securities.

 

(e) Purchase Rights. If, at any time when any Notes are issued and outstanding, the Borrower issues any convertible securities or rights to purchase stock, warrants, securities or other property (the “Purchase Rights”) pro rata to the record holders of any class of Common Stock, then the Holder of this Note will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without regard to any limitations on conversion contained herein) 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 Stock are to be determined for the grant, issue or sale of such Purchase Rights.

 

(f) Notice of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the events described in this Section 1.6, the Borrower, at its expense, shall promptly compute such adjustment or readjustment and prepare and furnish to the Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. The Borrower shall, upon the written request at any time of the Holder, furnish to such Holder a like certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect and (iii) the number of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received upon conversion of the Note.

	 
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1.7 Trading Market Limitations. Unless permitted by the applicable rules and regulations of the principal securities market on which the Common Stock is then listed or traded, in no event shall the Borrower issue upon conversion of or otherwise pursuant to this Note and the other Notes issued pursuant to the Purchase Agreement more than the maximum number of shares of Common Stock that the Borrower can issue pursuant to any rule of the principal United States securities market on which the Common Stock is then traded (the “Maximum Share Amount”), which shall be 4.99% of the total shares outstanding on the Closing Date (as defined in the Purchase Agreement), subject to equitable adjustment from time to time for stock splits, stock dividends, combinations, capital reorganizations and similar events relating to the Common Stock occurring after the date hereof. Once the Maximum Share Amount has been issued, if the Borrower fails to eliminate any prohibitions under applicable law or the rules or regulations of any stock exchange, interdealer quotation system or other self-regulatory organization with jurisdiction over the Borrower or any of its securities on the Borrower’s ability to issue shares of Common Stock in excess of the Maximum Share Amount, in lieu of any further right to convert this Note, this will be considered an Event of Default under Section 3.2 of the Note.

 

1.8 Status as Shareholder. Upon submission of a Notice of Conversion by a Holder, (i) the shares covered thereby (other than the shares, if any, which cannot be issued because their issuance would exceed such Holder’s allocated portion of the Reserved Amount or Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the Holder’s rights as a Holder of such converted portion of this Note shall cease and terminate, excepting only the right to receive certificates for such shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder because of a failure by the Borrower to comply with the terms of this Note. Notwithstanding the foregoing, if a Holder has not received certificates for all shares of Common Stock prior to the tenth (10th) business day after the expiration of the Deadline with respect to a conversion of any portion of this Note for any reason, then (unless the Holder otherwise elects to retain its status as a holder of Common Stock by so notifying the Borrower) the Holder shall regain the rights of a Holder of this Note with respect to such unconverted portions of this Note and the Borrower shall, as soon as practicable, return such unconverted Note to the Holder or, if the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not been converted. In all cases, the Holder shall retain all of its rights and remedies (including, without limitation, (i) the right to receive Conversion Default Payments pursuant to Section 1.3 to the extent required thereby for such Conversion Default and any subsequent Conversion Default and (ii) the right to have the Conversion Price with respect to subsequent conversions determined in accordance with Section 1.3) for the Borrower’s failure to convert this Note.

 

1.9 Prepayment. Notwithstanding anything to the contrary contained in this Note, the Borrower may prepay the amounts outstanding hereunder pursuant to the following terms and conditions:

	 
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(a) At any time during the period beginning on the Issue Date and ending on the date which is ninety (90) days following the Issue Date, the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full by making a payment to the Holder of an amount in cash equal to 135%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note plus (y) Default Interest, if any. 

 

(b) At any time during the period beginning the day which is ninety one (91) days following the Issue Date and ending on the date which is one hundred eighty (180) days following the Issue Date, the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full by making a payment to the Holder of an amount in cash equal to 150%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note plus (y) Default Interest, if any. 

 

(c) After the expiration of one hundred eighty (180) days following the date of the Note, the Borrower shall have no right of prepayment.

 

Any notice of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the date fixed for prepayment (the “Optional Prepayment Date”), the Borrower shall make payment of the applicable prepayment amount to or upon the order of the Holder as specified by the Holder in writing to the Borrower at least one (1) business day prior to the Optional Prepayment Date. If the Borrower delivers an Optional Prepayment Notice and fails to pay the applicable prepayment amount due to the Holder of the Note within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepay the Note pursuant to this Section 1.9.

 

ARTICLE II. CERTAIN COVENANTS

 

2.1 Distributions on Capital Stock. So long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder’s written consent (a) pay, declare or set apart for such payment, any dividend or other distribution (whether in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock solely in the form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment or distribution in respect of its capital stock except for distributions pursuant to any shareholders’ rights plan which is approved by a majority of the Borrower’s disinterested directors.

	 
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2.2 Restriction on Stock Repurchases. So long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder’s written consent redeem, repurchase or otherwise acquire (whether for cash or in exchange for property or other securities or otherwise) in any one transaction or series of related transactions any shares of capital stock of the Borrower or any warrants, rights or options to purchase or acquire any such shares.

 

2.3 Borrowings. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder’s written consent, create, incur, assume guarantee, endorse, contingently agree to purchase or otherwise become liable upon the obligation of any person, firm, partnership, joint venture or corporation, except by the endorsement of negotiable instruments for deposit or collection, or suffer to exist any liability for borrowed money, except (a) borrowings in existence or committed on the date hereof and of which the Borrower has informed Holder in writing prior to the date hereof, (b) indebtedness to trade creditors financial institutions or other lenders incurred in the ordinary course of business or (c) borrowings, the proceeds of which shall be used to repay this Note.

 

2.4 Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder’s written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition.

 

2.5 Advances and Loans. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder’s written consent, lend money, give credit or make advances to any person, firm, joint venture or corporation, including, without limitation, officers, directors, employees, subsidiaries and affiliates of the Borrower, except loans, credits or advances (a) in existence or committed on the date hereof and which the Borrower has informed Holder in writing prior to the date hereof, (b) made in the ordinary course of business or (c) not in excess of $100,000.

 

2.6 Section 3(a)(9) or 3(a)(10) Transaction. So long as this Note is outstanding, the Borrower shall not enter into any transaction or arrangement structured in accordance with, based upon, or related or pursuant to, in whole or in part, either Section 3(a)(9) of the Securities Act (a “3(a)(9) Transaction”) or Section 3(a)(l0) of the Securities Act (a “3(a)(l0) Transaction”). In the event that the Borrower does enter into, or makes any issuance of Common Stock related to a 3(a)(9) Transaction or a 3(a)(l0) Transaction while this note is outstanding, a liquidated damages charge of 25% of the outstanding principal balance of this Note, but not less than Fifteen Thousand Dollars $15,000, will be assessed and will become immediately due and payable to the Holder at its election in the form of cash payment or addition to the balance of this Note.

	 
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2.7 Preservation of Existence, etc. The Borrower shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, its existence, rights and privileges, and become or remain, and cause each of its Subsidiaries (other than dormant Subsidiaries that have no or minimum assets) to become or remain, duly qualified and in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary.

 

2.8 Non-circumvention. The Borrower hereby covenants and agrees that the Borrower will not, by amendment of its Certificate or Articles of Incorporation or Bylaws, or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, 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 of this Note, and will at all times in good faith carry out all the provisions of this Note and take all action as may be required to protect the rights of the Holder.

 

ARTICLE III. EVENTS OF DEFAULT

 

If any of the following events of default (each, an “Event of Default”) shall occur:

 

3.1 Failure to Pay Principal or Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity, upon acceleration or otherwise.

 

3.2 Conversion and the Shares. The Borrower (i) fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, (ii) fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, (iii) directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, (iv) fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion, (v) fails to remain current in its obligations to its transfer agent, (vi) causes a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent, (vii) fails to repay Holder, within forty eight (48) hours of a demand from the Holder, any amount of funds advanced by Holder to Borrower’s transfer agent in order to process a conversion, and/or (viii) fails to maintain the Reserved Amount.

	 
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3.3 Failure to Deliver Transaction Expense Amount. The Borrower fails to deliver the Transaction Expense Amount (as defined in the Purchase Agreement) to the Holder within three (3) business days of the date such amount is due.

 

3.4 Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of ten (10) days after written notice thereof to the Borrower from the Holder.

 

3.5 Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.

 

3.6 Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors or commence proceedings for its dissolution, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed for the Borrower or for a substantial part of its property or business without its consent and shall not be discharged within sixty (60) days after such appointment.

 

3.7 Judgments. Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary of the Borrower or any of its property or other assets for more than $50,000, and shall remain unvacated, unbonded or unstayed for a period of twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld.

 

3.8 Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower, or the Borrower admits in writing its inability to pay its debts generally as they mature, or have filed against it an involuntary petition for bankruptcy relief, all under federal or state laws as applicable or the Borrower admits in writing its inability to pay its debts generally as they mature, or have filed against it an involuntary petition for bankruptcy relief, all under international, federal or state laws as applicable.

 

3.9 Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC Pink, OTCQB, Nasdaq National Market, Nasdaq Small Cap Market, New York Stock Exchange, NYSE MKT, or an equivalent replacement exchange

 

3.10 Failure to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the Exchange Act (including but not limited to becoming delinquent in its filings); and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act.

	 
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3.11 Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

3.12 Cessation of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

 

3.13 Maintenance of Assets. The failure by Borrower to maintain any material intellectual property rights, personal, real property or other assets which are necessary to conduct its business (whether now or in the future), or any disposition or conveyance of any material asset of the Company.

 

3.14 Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with the SEC for any date or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding, if the result of such restatement would, by comparison to the unrestated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement. 

 

3.15 Reverse Splits. The Borrower effectuates a reverse split of its Common Stock without twenty (20) days prior written notice to the Holder.

 

3.16 Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.

 

3.17 Cessation of Trading. Any cessation of trading of the Common Stock on at least one of the OTC Pink, OTCQB, Nasdaq National Market, Nasdaq Small Cap Market, New York Stock Exchange, NYSE MKT, or an equivalent replacement exchange, and such cessation of trading shall continue for a period of five consecutive (5) Trading Days.

 

3.18 Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements (as defined herein), after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2) the Holder (and any affiliate of the Holder) or any other third party, including, without limitation, promissory notes; provided, however, the term “Other Agreements” shall not include the agreements and instruments defined as the Documents. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt of Borrower to the Holder.

	 
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3.19 Bid Price. The Borrower shall lose the “bid” price for its Common Stock ($0.0001 on the “Ask” with zero market makers on the “Bid” per Level 2) and/or a market (including the OTC Pink, OTCQB or an equivalent replacement exchange).

 

3.20 OTC Markets Designation. OTC Markets changes the Borrower’s designation to ‘No Information’ (Stop Sign), ‘Caveat Emptor’ (Skull and Crossbones), or ‘OTC’, ‘Other OTC’ or ‘Grey Market’ (Exclamation Mark Sign).

 

3.21 Inside Information. Any attempt by the Borrower or its officers, directors, and/or affiliates to transmit, convey, disclose, or any actual transmittal, conveyance, or disclosure by the Borrower or its officers, directors, and/or affiliates of, material non-public information concerning the Borrower, to the Holder or its successors and assigns, which is not immediately cured by Borrower’s filing of a Form 8-K pursuant to Regulation FD on that same date.

 

Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note upon acceleration), 3.3, 3.4, 3.6, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13, 3.14, 3.15, 3.16. 3.17, 3.18, 3.19, 3.20, and/or 3.21 exercisable through the delivery of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the remaining sections of Article III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3.1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to (i) 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Sum”) or (ii) at the option of the Holder, the “parity value” of the Default Sum to be prepaid, where parity value means (a) the highest number of shares of Common Stock issuable upon conversion of or otherwise pursuant to such Default Sum in accordance with Article I, treating the Trading Day immediately preceding the Mandatory Prepayment Date as the “Conversion Date” for purposes of determining the lowest applicable Conversion Price, unless the Default Event arises as a result of a breach in respect of a specific Conversion Date in which case such Conversion Date shall be the Conversion Date), multiplied by (b) the highest Trading Price for the Common Stock during the period beginning on the date of first occurrence of the Event of Default and ending one day prior to the Mandatory Prepayment Date (the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity. Further, if a breach of Sections 3.9, 3.10 and/or 3.19 occurs or is continuing after the six (6) month anniversary of this Note, then the principal amount of the Note shall increase by Fifteen Thousand and No/100 United States Dollars ($15,000) (under Holder’s and Borrower’s expectation that any principal amount increase will tack back to the Issue Date) and the Holder shall be entitled to use the lowest Trading Price during the delinquency period as a base price for the conversion with the Variable Conversion Price shall be redefined to mean forty percent (40%) multiplied by the Market Price, subject to adjustment as provided in this Note. For example, if the lowest Trading Price during the delinquency period is $0.01 per share and the conversion discount is 50%, then the Holder may elect to convert future conversions at $0.005 per share. If this Note is not paid at Maturity Date, then the outstanding principal due under this Note shall increase by Fifteen Thousand and No/100 United States Dollars ($15,000).

	 
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If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect. This requirement by the Borrower shall automatically apply upon the occurrence of an Event of Default without the need for any party to give any notice or take any other action.

 

If the Holder shall commence an action or proceeding to enforce any provisions of this Note, including, without limitation, engaging an attorney, then if the Holder prevails in such action, the Holder shall be reimbursed by the Borrower for its attorneys' fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

ARTICLE IV. MISCELLANEOUS

 

4.1 Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

	 
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4.2 Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

If to the Borrower, to:

 

IDDriven, Inc.

13355 Moss Rock Dr.

Auburn, CA 95602

Attn: Arend D. Verweij

E-mail: info@iddriven.com

 

If to the Holder:

 

Auctus Fund, LLC

101 Arch Street, 20th Floor

Boston, MA 02110

Attn: Lou Posner 

Facsimile: (617) 532-6420

 

4.3 Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented.

 

4.4 Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) of the 1933 Act). Notwithstanding anything in this Note to the contrary, this Note may be pledged as collateral in connection with a bona fide margin account or other lending arrangement. The Holder and any assignee, by acceptance of this Note, acknowledge and agree that following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be less than the amount stated on the face hereof.

	 
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4.5 Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof reasonable costs of collection, including reasonable attorneys’ fees.

 

4.6 Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of Massachusetts or in the federal courts located in the Commonwealth of Massachusetts. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. THE BORROWER HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

4.7 Certain Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding principal amount (or the portion thereof required to be paid at that time) plus accrued and unpaid interest plus Default Interest on such interest, the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on this Note may be difficult to determine and the amount to be so paid by the Borrower represents stipulated damages and not a penalty and is intended to compensate the Holder in part for loss of the opportunity to convert this Note and to earn a return from the sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price paid for such shares pursuant to this Note. The Borrower and the Holder hereby agree that such amount of stipulated damages is not plainly disproportionate to the possible loss to the Holder from the receipt of a cash payment without the opportunity to convert this Note into shares of Common Stock.

 

4.8 Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.

	 
	21
	

 
	 

 

4.9 Notice of Corporate Events. Except as otherwise provided below, the Holder of this Note shall have no rights as a Holder of Common Stock unless and only to the extent that it converts this Note into Common Stock. The Borrower shall provide the Holder with prior notification of any meeting of the Borrower’s shareholders (and copies of proxy materials and other information sent to shareholders). In the event of any taking by the Borrower of a record of its shareholders for the purpose of determining shareholders who are entitled to receive payment of any dividend or other distribution, any right to subscribe for, purchase or otherwise acquire (including by way of merger, consolidation, reclassification or recapitalization) any share of any class or any other securities or property, or to receive any other right, or for the purpose of determining shareholders who are entitled to vote in connection with any proposed sale, lease or conveyance of all or substantially all of the assets of the Borrower or any proposed liquidation, dissolution or winding up of the Borrower, the Borrower shall mail a notice to the Holder, at least twenty (20) days prior to the record date specified therein (or thirty (30) days prior to the consummation of the transaction or event, whichever is earlier), of the date on which any such record is to be taken for the purpose of such dividend, distribution, right or other event, and a brief statement regarding the amount and character of such dividend, distribution, right or other event to the extent known at such time. The Borrower shall make a public announcement of any event requiring notification to the Holder hereunder substantially simultaneously with the notification to the Holder in accordance with the terms of this Section 4.9 including, but not limited to, name changes, recapitalizations, etc. as soon as possible under law.

 

4.10 Usury. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable provision shall automatically be revised to equal the maximum rate of interest or other amount deemed interest permitted under applicable law. The Borrower covenants (to the extent that it may lawfully do so) that it will not seek to claim or take advantage of any law that would prohibit or forgive the Borrower from paying all or a portion of the principal or interest on this Note.

 

4.11 Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required. No provision of this Note shall alter or impair the obligation of the Borrower, which is absolute and unconditional, to pay the principal of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.

 

4.12 Severability. In the event that any provision of this Note is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.

	 
	22
	

 
	 

 

4.13 Dispute Resolution. In the case of a dispute as to the determination of the Conversion Price, Conversion Amount, any prepayment amount or Default Amount, Default Sum, Closing or Maturity Date, the closing bid price, or fair market value (as the case may be) or the arithmetic calculation of the Conversion Price or the applicable prepayment amount(s) (as the case may be), the Borrower or the Holder shall submit the disputed determinations or arithmetic calculations via facsimile (i) within two (2) Business Days after receipt of the applicable notice giving rise to such dispute to the Borrower or the Holder or (ii) if no notice gave rise to such dispute, at any time after the Holder learned of the circumstances giving rise to such dispute. If the Holder and the Borrower are unable to agree upon such determination or calculation within two (2) Business Days of such disputed determination or arithmetic calculation (as the case may be) being submitted to the Borrower or the Holder, then the Borrower shall, within two (2) Business Days, submit via facsimile (a) the disputed determination of the Conversion Price, the closing bid price, the or fair market value (as the case may be) to an independent, reputable investment bank selected by the Borrower and approved by the Holder or (b) the disputed arithmetic calculation of the Conversion Price, Conversion Amount, any prepayment amount or Default Amount, Default Sum to an independent, outside accountant selected by the Holder that is reasonably acceptable to the Borrower. The Borrower shall cause at its expense the investment bank or the accountant to perform the determinations or calculations and notify the Borrower and the Holder of the results no later than ten (10) Business Days from the time it receives such disputed determinations or calculations. Such investment bank’s or accountant’s determination or calculation shall be binding upon all parties absent demonstrable error.

 

4.14 Terms of Future Financings. So long as this Note is outstanding, upon any issuance by the Borrower or any of its subsidiaries of any security with any term more favorable to the holder of such security or with a term in favor of the holder of such security that was not similarly provided to the Holder in this Note, then the Borrower shall notify the Holder of such additional or more favorable term and such term, at Holder’s option, shall become a part of the transaction documents with the Holder. The types of terms contained in another security that may be more favorable to the holder of such security include, but are not limited to, terms addressing conversion discounts, prepayment rate, conversion lookback periods, interest rates, original issue discounts, stock sale price, private placement price per share, and warrant coverage.

 

4.15 Piggyback Registration Rights. The Borrower shall include on the next registration statement the Borrower files with SEC (or on the subsequent registration statement if such registration statement is withdrawn) all shares issuable upon conversion of this Note. Failure to do so will result in liquidated damages of 25% of the outstanding principal balance of this Note, but not less than Fifteen Thousand and No/100 United States Dollars ($15,000), being immediately due and payable to the Holder at its election in the form of cash payment or addition to the balance of this Note.

 

[signature page follows]

	 
	23
	

 
	 

 

IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer as of the date first above written.

 

	 	IDDRIVEN, INC.	
	 	  	 	 
		By:		
	
 
	
Name: 
	Arend D. Verweij 	 
	 	Title: 	Chief Executive Officer	 

 
	 
	24
	

 
	 

 

EXHIBIT A

NOTICE OF CONVERSION

 

The undersigned hereby elects to convert $______________principal amount of the Note (defined below) together with $______________ of accrued and unpaid interest thereto, totaling $___________ into that number of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of IDDriven, Inc., a Nevada corporation (the “Borrower”), according to the conditions of the convertible note of the Borrower dated as of April 10, 2017 (the “Note”), as of the date written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any.

   

Box Checked as to applicable instructions:

 

	
 
	o	The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal At Custodian system (“DWAC Transfer”).
	
 
	
  
	
 

	
 
	
 
	
Name of DTC Prime Broker:

Account Number: 

	
 
	
  
	
 

	
 
	
o
	
The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto:

	
 
	
 
	
  

	
 
	
 
	
Name: [NAME]

Address: [ADDRESS]

 

	
 
	
Date of Conversion:
	
________________

	
 
	
Applicable Conversion Price:
	
$_______________

	
 
	
Number of Shares of Common Stock to be Issued
	
	
 
	
Pursuant to Conversion of the Notes:
	
________________

	
 
	
Amount of Principal Balance Due remaining
	
 

	
 
	
Under the Note after this conversion:
	
________________

	
 
	
Accrued and unpaid interest remaining:
	
________________

	
 
	
 
	
 

	
 
	
[HOLDER]
	
 

  

	
 
	
By:
	
 
	
 

	
 
	
Name:
	
[NAME]
	
 

	
 
	
Title: 
	
[TITLE]
	
 

	
 
	
Date:
	
[DATE]
	
 

 

 

	
25Exhibit 10.1

 

Confidential Treatment has been granted for portions of this
exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as
“****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

 

LICENSE AGREEMENT

 

between

 

LIGHTLAKE
THERAPEUTICS INC.

 

and

 

ADAPT PHARMA OPERATIONS LIMITED 

 

Dated as of December 15, 2014

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

LICENSE AGREEMENT

 

This License Agreement (the “Agreement”)
is made and entered into effective as of December 15, 2014 (the “Effective Date”) by and between Lightlake Therapeutics
Inc., a Nevada corporation (“Lightlake”), and Adapt Pharma Operations Limited, an Irish limited company (“Adapt”).
Lightlake and Adapt are sometimes referred to herein individually as a “Party” and collectively as the “Parties”.

 

Recitals

 

WHEREAS, Lightlake owns or Controls
certain intellectual property relating to the use of intranasal naloxone for a treatment to reverse opioid overdoses; and

 

WHEREAS, Lightlake wishes to license
to Adapt, and Adapt wishes to license from Lightlake, through the license grants contemplated herein, such intellectual property
rights to develop and commercialize Products (as defined below) in accordance with the terms and conditions set forth below.

 

NOW, THEREFORE, in consideration
of the premises and the mutual promises and conditions hereinafter set forth, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, do hereby agree as follows:

 

ARTICLE 1

DEFINITIONS

 

Unless otherwise specifically provided herein,
the following terms shall have the following meanings:

 

1.1            “Adapt”
has the meaning set forth in the preamble hereto.

 

1.2            “Adapt
Applied Know-How” means all Information Controlled by Adapt or any of its Affiliates as of the Effective Date or during
the Term (other than as a result of the licenses granted by Lightlake to Adapt under this Agreement) and incorporated by Adapt
in any Product prior to any termination of this Agreement (provided, however, that such Information is necessary or reasonably
useful for the Development, manufacture or Commercialization of any Product).

 

1.3            “Adapt
Applied Patents” means all of the Patents Controlled by Adapt or any of its Affiliates as of the Effective Date or during
the Term (other than as a result of the licenses granted by Lightlake to Adapt under this Agreement) that claim any Adapt Applied
Know-How or claim or cover a Product.

 

    2 

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

1.4            “Affiliate”
means, with respect to a Party, any Person that, directly or indirectly, through one or more intermediaries, controls, is controlled
by or is under common control with such Party. For purposes of this definition, “control” and, with correlative meanings,
the terms “controlled by” and “under common control with”, means (i) the possession, directly or indirectly,
of the power to direct the management or policies of a business entity, whether through the ownership of voting securities, by
contract relating to voting rights or corporate governance, or otherwise; or (ii) the ownership, directly or indirectly, of
more than fifty percent (50%) of the voting securities or other ownership interest of a business entity (or, with respect to a
limited partnership or other similar entity, its general partner or controlling entity). The Parties acknowledge that in the case
of certain entities organized under the laws of certain countries outside of the United States, the maximum percentage ownership
permitted by law for a foreign investor may be less than fifty percent (50%), and that in such case such lower percentage shall
be substituted in the preceding sentence, provided that such foreign investor has the power to direct the management or
policies of such entity.

 

1.5            “Applicable
Law” means federal, state, local, national and supra-national laws, statutes, rules, and regulations, including any rules,
regulations, guidelines, or other requirements of the Regulatory Authorities, major national securities exchanges or major securities
listing organizations, that may be in effect from time to time during the Term and applicable to a particular activity.

 

1.6            “****
Unit Dose Device” means that certain nasal unit-dose spray device sold by **** Inc. or its Affiliates.

 

1.7            “Business
Day” means a day other than a Saturday or Sunday on which banking institutions in New York, New York and Ireland are
open for business.

 

1.8            “Calendar
Quarter” means each successive period of three (3) calendar months commencing on January 1, April 1, July 1 and October
1, except that the first Calendar Quarter of the Term shall commence on the Effective Date and end on the day immediately prior
to the first to occur of January 1, April 1, July 1 or October 1 after the Effective Date, and the last Calendar Quarter shall
end on the last day of the Term.

 

1.9            “Calendar
Year” means each successive period of twelve (12) calendar months commencing on January 1 and ending on December 31,
except that the first Calendar Year of the Term shall commence on the Effective Date and end on December 31 of the year in which
the Effective Date occurs and the last Calendar Year of the Term shall commence on January 1 of the year in which the Term ends
and end on the last day of the Term.

 

1.10         “Change
in Control” means with respect to a Party: (1) the sale of all or substantially all of such Party’s assets or business
relating to this Agreement; (2) a merger, reorganization or consolidation involving such Party in which the holders of voting securities
of such Party outstanding immediately prior thereto cease to hold voting securities that represent at least fifty percent (50%)
of the combined voting power of the surviving entity immediately after such merger, reorganization or consolidation; or (3) a person
or entity, or group of persons or entities, acting in concert acquire more than fifty percent (50%) of the voting equity securities
or management control of such Party.

 

    3 

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

1.11         “Commercial
Sublicensee” means a Sublicensee to whom Adapt has granted a right to offer for sale, have sold or sell one or more Products
in all or a portion of the Territory including exclusive distributors, but excluding (i) Persons who Manufacture Product(s) or
any element thereof and sell such Product(s) only to or at the direction of Adapt, Sublicensees or any of their respective Affiliates,
(ii) wholesalers, (iii) pharmacies, (iv) Persons comprising the First Responder Market, (v) any Person performing third party logistics
or warehousing services on behalf of Adapt or its Affiliates or Sublicensees, and (v) any other Person to whom Adapt has not relinquished
material control over commercial decision-making in respect of the applicable Products and where such Person does not have any
obligation to make an upfront, milestone or royalty payment with respect to the applicable Products.

 

1.12         “Commercialization”
means any and all activities directed to the preparation for sale of, offering for sale of, or sale of a Product, including activities
related to marketing, promoting, distributing, and importing such Product, and interacting with Regulatory Authorities regarding
any of the foregoing. When used as a verb, “to Commercialize” and “Commercializing” means
to engage in Commercialization, and “Commercialized” has a corresponding meaning.

 

1.13         “Commercialization
Costs” means the out-of-pocket costs and expenses incurred by Adapt or its Affiliates directly attributable to, or reasonably
allocable to, the Commercialization of a Product. Commercialization Costs for a Product shall include, preparation of promotional,
advertising, communication, medical, and educational materials relating to the Product and other Product literature and selling
materials, activities directed to marketing of the Product, including purchase of market data, development and conduct of market
research, advertising, public relations, public affairs and other communications with Third Parties regarding the Product; development
and conduct of sales force training (including materials, programs and travel to and attendance at training programs) for medical
representatives responsible for promoting the Product; and development and maintenance of sales bulletins, call reporting and other
monitoring/tracking, sales force targeting, validation and alignment programs and documentation.

 

1.14         “Commercially
Reasonable Efforts” means, with respect to the objective that is the subject of such efforts, such reasonable, good faith
efforts and resources as a similarly-situated (including in relation to size and personnel and other resources) company within
the pharmaceutical industry would normally use to accomplish a similar objective under similar circumstances, it being understood
and agreed that, with respect to the Development and Commercialization of a Product by Adapt, such efforts shall take into account
the Product’s safety and efficacy, its cost to Develop, the competitiveness of alternative products marketed by or being
developed by Third Parties and the nature and extent of market exclusivity (including Patent coverage and regulatory exclusivity),
the likelihood of obtaining Regulatory Approval, the expected or actual pricing, reimbursement and formulary status, the Product’s
expected or actual profitability, including the amounts of marketing and promotional expenditures with respect to such Product
and all other relevant factors with respect to the market for the Product, on a country-by-country basis.

 

    4 

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

1.15         “Confidential
Information” means any technical, business, or other information or data provided orally, visually, in writing or other
form by or on behalf of one Party to the other Party in connection with this Agreement (including any information provided under
either that certain Mutual Non-Disclosure Agreement between the Parties dated May 1, 2014 or that certain Three-Way Confidential
Disclosure Agreement among Lightlake, Adapt Pharma Operations Limited and **** dated August 13, 2014 collectively, (“Existing
CDAs”), including information relating to the terms of this Agreement, any Product (including the Regulatory Documentation),
any Exploitation of any Product, any know-how with respect thereto developed by or on behalf of the disclosing Party or its Affiliates
(including Lightlake Know-How and Adapt Applied Know-How, as applicable), or the scientific, regulatory or business affairs or
other activities of either Party. Notwithstanding the foregoing, (i) all non-clinical, clinical, technical, chemical, safety, and
scientific data and information and other results, and results of test method development and stability testing, toxicology, formulation,
process development, manufacturing scale-up, qualification and validation, quality assurance/quality control activities and statistical
analysis, including relevant laboratory notebook information, screening data, and synthesis schemes, including descriptions in
any form, data and other Information relating to or resulting from the conduct of Development of Products after the Effective Date,
or relating to or resulting from the pharmacokinetics study in respect of a Product commenced or commissioned by or at the direction
of Lightlake prior to the Effective Date (the “Pharmacokinetic Data”), shall be Confidential Information of
Adapt and (ii) subject to the foregoing clause (i), Joint Know-How shall be deemed to be the Confidential Information of both Parties.

 

1.16         “Control”
means, with respect to any item of Information, Regulatory Documentation, material, Patent, or other property right existing
on or after the Effective Date and during the Term, possession of the right, whether directly or indirectly, and whether by ownership,
license or otherwise (other than by operation of the license and other grants in Section 4.1 or 4.2), to grant a
license, sublicense or other right (including the right to reference Regulatory Documentation) to or under such Information, Regulatory
Documentation, material, Patent, or other property right as provided for herein without violating the terms of any agreement or
other arrangement with any Third Party.

 

1.17         “Development”
means all activities related to research, pre-clinical and other non-clinical testing, test method development and stability testing,
toxicology, formulation, process development, manufacturing scale-up, qualification and validation, quality assurance/quality control,
clinical studies, statistical analysis and report writing, the preparation and submission of Drug Approval Applications, regulatory
affairs with respect to the foregoing and all other activities necessary or reasonably useful or otherwise requested or required
by a Regulatory Authority as a condition or in support of obtaining or maintaining a Regulatory Approval. When used as a verb,
“Develop” means to engage in Development.

 

1.18         “Development
Costs” means the out-of-pocket costs and expenses incurred by a Party or its Affiliates directly attributable to, or
reasonably allocable to, the Development of a Product, including costs and expenses associated with obtaining and/or Manufacturing
product and materials utilized in clinical trials, submission batches or in connection with process validation, scale-up or otherwise
required for purposes of obtaining Regulatory Approval.

 

    5 

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

1.19         “Development
Data” means all non-clinical, clinical, technical, chemical, safety, and scientific data and information and other results,
including relevant laboratory notebook information, screening data, and synthesis schemes, including descriptions in any form,
data and other information, in each case, that is generated by or resulting from or in connection with the conduct of Development
of Products, to the extent that the same are Controlled by or in Adapt’s or its Affiliates’ or Adapt’s Commercial
Sublicensees’ possession, and may be disclosed to Lightlake without violating any obligation under Applicable Law.

 

1.20         “Dollars”
or “$” means United States Dollars.

 

1.21         “Drug
Approval Application” means a New Drug Application (an “NDA”) as defined in the FFDCA, or any corresponding
foreign application, including, with respect to the European Union, a Marketing Authorization Application (a “MAA”)
filed with the EMA or with the applicable Regulatory Authority of a country in Europe with respect to the mutual recognition or
any other national approval procedure.

 

1.22         “Effective
Date” means the effective date of this Agreement as set forth in the preamble hereto.

 

1.23         “EMA”
means the European Medicines Agency and any successor agency or authority having substantially the same function.

 

1.24         “Existing
Inventory Supply” means Lightlake’s existing inventory of naloxone, excipients, devices and packaging set forth
on Schedule 1.24 to be transferred to Adapt in accordance with Section 3.6.1 and the Initial Development Plan.

 

1.25         “Exploit”
means to make, have made, import, use, sell, or offer for sale, including to research, Develop, Commercialize, Manufacture, have
Manufactured, obtain Regulatory Approval for, hold, or keep (whether for disposal or otherwise), have used, export, transport,
distribute, promote, market, or have sold or otherwise dispose of on a worldwide basis. “Exploitation” shall
mean the act of Exploiting.

 

1.26         “FDA”
means the United States Food and Drug Administration and any successor agency(ies) or authority having substantially the same function.

 

1.27         “FFDCA”
means the United States Federal Food, Drug, and Cosmetic Act, 21 U.S.C. §301 et seq., as amended from time to time,
together with any rules, regulations and requirements promulgated thereunder (including all additions, supplements, extensions,
and modifications thereto).

 

1.28         “First
Commercial Sale” means, with respect to a Product and a country, the first sale by Adapt, its Affiliate or its Commercial
Sublicensee to a Third Party for monetary value of such Product in such country after Regulatory Approval for such Product has
been obtained in such country; provided, however, no sale comprising the Limited Purdue Sales shall be deemed a “First Commercial
Sale” for purposes hereof.

 

    6 

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

1.29         “First
Responder Market” means governmental agencies, non-profit institutions and medical directors that prescribe on behalf
of an organization for use by fire, police, emergency medical personnel, military or similar personnel that act as first responders,
but excluding hospitals and clinics and any Person acquiring Products through retail channels.

 

1.30         “Generic
Product” means, with respect to a Product, any intranasal product in an intranasal device that (i) is sold by a
Third Party that is not a licensee or a Commercial Sublicensee of Adapt or its Affiliates, under an Abbreviated New Drug Application
(ANDA), or any of such Third Party’s direct or indirect licensees or sublicensees; (ii) contains naloxone as the primary
active ingredient; and (iii) is approved in reliance, in whole or in part, on the prior approval of such Product. A Product
licensed or produced by Adapt or its Affiliates or Commercial Sublicensees (i.e., an authorized generic product) will not constitute
a Generic Product.

 

1.31         “IND”
means an application filed with a Regulatory Authority for authorization to commence human clinical studies, including (a) an Investigational
New Drug Application as defined in the FFDCA or any successor application or procedure filed with the FDA, (b) any equivalent of
a United States IND in other countries or regulatory jurisdictions, and (c) all supplements, amendments, variations, extensions
and renewals thereof that may be filed with respect to the foregoing.

 

1.32         “Information”
means all technical, scientific, and other know-how and information, trade secrets, knowledge, technology, means, methods, processes,
practices, formulae, instructions, skills, techniques, procedures, experiences, ideas, technical assistance, designs, drawings,
assembly procedures, computer programs, apparatuses, specifications, data, results and other material, including: biological, chemical,
pharmacological, toxicological, pharmaceutical, physical and analytical, pre-clinical, clinical, safety, manufacturing and quality
control data and information, including study designs and protocols, assays, biological methodology, other data relating to Development,
all data, information and materials relating to Commercialization, including customer lists (both actual and target customers),
any market studies and competitive data; in each case (whether or not confidential, proprietary, patented or patentable) in written,
electronic or any other form now known or hereafter developed.

 

1.33         “Initial
Development Plan” means the initial Development Plan (including the Development budget) attached hereto as Schedule
1.33 covering the initial Development activities, as the same may be amended from time to time in accordance with the terms
hereof.

 

1.34         “Invention”
means any writing, invention, discovery, improvement, technology, Information or other Know-How (in each case, whether patented
or not) that is not existing as of the Effective Date and is invented under this Agreement during the Term.

 

1.35         “LIBOR”
means the London Interbank Offered Rate for deposits in United States Dollars having a maturity of one month published by the British
Bankers’ Association, as adjusted from time to time on the first London business day of each month.

 

    7 

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

1.36         “Liens”
means any and all liens, encumbrances, charges, security interests, options, claims, mortgages, pledges, or agreements, obligations,
understandings or arrangements or other restrictions on title or transfer of any nature whatsoever.

 

1.37         “Lightlake”
has the meaning set forth in the preamble hereto.

 

1.38         “Lightlake
Know-How” means all Information Controlled by Lightlake or any of its Affiliates as of the Effective Date or at any time
during the Term (subject to Section 11.3.2) that is not generally known and is necessary or reasonably useful for the Development,
manufacture, or Commercialization of a Product, but excluding any Information to the extent covered or claimed by published Lightlake
Patents or Joint Patents or any Joint Know-How.

 

1.39         “Lightlake
Patents” means all of the Patents Controlled by Lightlake or any of its Affiliates as of the Effective Date or at any
time during the Term (subject to Section 11.3.2) that claim or disclose the Development, Manufacture, or Commercialization
of a Product, but excluding any Joint Patents, and excluding the Product Specific Patents.

 

1.40         “Limited
Purdue Sales” means the sale of such number of units of Product(s) that Adapt is obligated to sell to or at the direction
of Purdue pursuant to the Purdue Agreement, up to either (i) such number of units having an aggregate fair market value of fifty
thousand dollars or (ii) an aggregate of 2,500 units (of two doses each), which ever is greater. For clarity, sales of Products
to Purdue in excess of the foregoing number of units shall not be included in Limited Purdue Sales.

 

1.41         “MAA”
has the meaning set forth in the definition of “Drug Approval Application.”

 

1.42         “Major
Market” means each of France, Germany, Italy, Spain or United Kingdom.

 

1.43         “Manufacture”
or “Manufacturing” means all activities related to the production, manufacture, processing, filling, finishing,
packaging, labeling, shipping and holding of a Product or any intermediate thereof, including clinical and commercial manufacture.

 

1.44         “NDA”
has the meaning set forth in the definition of “Drug Approval Application.”

 

1.45         “Net
Sales” means, with respect to a Product for any period, the total amount billed or invoiced on sales of such Product
during such period by Adapt, its Affiliates, or Sublicensees to Third Parties, less the following normal and customary bona-fide
deductions and allowances actually taken:

 

1.45.1         trade,
cash and quantity discounts;

 

1.45.2         price
reductions, refunds or rebates, retroactive or otherwise, imposed by, negotiated with or otherwise paid (whether in cash or trade)
to governmental authorities or third party payors;

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

1.45.3         taxes
on sales (such as sales, value added, or use taxes) and customs and excise duties and other duties related to sale, in each case,
to the extent such taxes are included in the gross amount invoiced;

 

1.45.4         wholesale
and distribution fees, deductions and prompt pay discounts;

 

1.45.5         bad
debts not exceeding five percent (5%) of the value of the sales of Product during the then-current Calendar Year, provided that
any recovery of bad debts shall be deemed a sale for purposes of this definition of “Net Sales”;

 

1.45.6         amounts
repaid, deducted or credited by reason of rejections, defects, recalls or returns, or because of retroactive price reductions,
including rebates or wholesaler charge backs; and

 

1.45.7         freight,
insurance, and other transportation charges to the extent added to the sale price and set forth separately as such in the total
amount invoiced.

 

Notwithstanding the foregoing, Net Sales shall not include (i)
transfers or dispositions for charitable, pre-clinical, clinical, regulatory, or governmental purposes or (ii) sales or transfers
comprising the Limited Purdue Sales. To the extent that Adapt, its Affiliate or any Commercial Sublicensee sells a Product, on
an arms-length basis, to any Sublicensee who is not an Affiliate of such selling Person for resale, only the initial sale of such
Product by Adapt, its Affiliate, or its Commercial Sublicensee shall constitute a sale for purposes of determining Net Sales. Except
as contemplated by the immediately foregoing sentence, Net sales shall not include sales between or among Adapt, its Affiliates,
or Sublicensees. Net Sales shall be calculated in accordance with the standard internal policies and procedures of Adapt, its Affiliates,
or Sublicensees, which must be in accordance with United States Generally Accepted Accounting Principles or International Financial
Reporting Standards as applicable. If Adapt (or any of its Affiliates or Sublicensees) for a given Product sells such Product to
a Third Party (including distributors) who also purchases other products or services from any such entity, then Adapt agrees not
to, and shall require its Affiliates and Sublicensees not to, (a) bundle or include the Product as part of any multiple product
offering or (b) discount or price the Product, in the case of either of the foregoing clauses (a) or (b), in a manner that is reasonably
likely to disadvantage such Product in order to benefit sales or prices of other products offered for sale by Adapt or its Affiliates
or Sublicensees to such customer.

 

1.46         “NIDA”
means The Division of Pharmacotherapies and Medical Consequences of Drug Abuse of the National Institute on Drug Abuse.

 

1.47         “NIDA
Agreement” means that certain Clinical Trial Agreement, dated January 31, 2013, between Lightlake and NIDA.

 

1.48         “Party”
and “Parties” has the meaning set forth in the preamble hereto.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

1.49         “Patents”
means (i) all national, regional and international patents and patent applications, including provisional patent applications;
(ii) all patent applications filed either from such patents, patent applications or provisional applications or from an application
claiming priority from either of these, including divisionals, continuations, continuations-in-part, provisionals, converted provisionals
and continued prosecution applications; (iii) any and all patents that have issued or in the future issue from the foregoing
patent applications ((i) and (ii)), including utility models, petty patents and design patents and certificates of invention; (iv) any
and all extensions or restorations by existing or future extension or restoration mechanisms, including revalidations, reissues,
re-examinations and extensions (including any supplementary protection certificates and the like) of the foregoing patents or patent
applications ((i), (ii), and (iii)); and (v) any similar rights, including so-called pipeline protection or any importation,
revalidation, confirmation or introduction patent or registration patent or patent of additions to any of such foregoing patent
applications and patents.

 

1.50         “Person”
means an individual, sole proprietorship, partnership, limited partnership, limited liability partnership, corporation, limited
liability company, business trust, joint stock company, trust, unincorporated association, foundation, joint venture or other similar
entity or organization, including a government or political subdivision, department or agency of a government.

 

1.51         “Product”
means any pharmaceutical product or medical device, whether prescription or over-the-counter, marketed for a treatment of opioid
overdose containing naloxone, alone or in combination with one or more other active or inactive ingredients, in any intranasal
form, presentation, strength or delivery systems; provided, however, that “Product” shall not refer to
any product Controlled, developed, manufactured, marketed, sold, offered for sale, exported, or imported directly or indirectly
by a Sublicensee if such Sublicensee’s rights in respect of such product were obtained or developed independently of any
sublicense or right granted by Adapt hereunder.

 

1.52         “Product
Specific Patents” means those Patents set forth on Schedule 1.52.

 

1.53         “Product
Trademarks” means the Trademark(s) to be used by Adapt or its Affiliates or its or their respective Sublicensees for
the Commercialization of Products and any registrations thereof or any pending applications relating thereto (excluding, in any
event, any trademarks, service marks, names or logos that include any corporate name or logo of the Parties or their Affiliates).

 

1.54         “Purdue”
means Purdue Pharma LP or such Affiliate of Purdue Pharma LP that is the initial party to the Purdue Agreement, or any assignee
or successor to such Person’s rights or obligations under the Purdue Agreement.

 

1.55         “Purdue
Agreement” means the license agreement to be entered into by Lightlake or Adapt or one of their Affiliates with Purdue
Pharma LP based upon the term sheet between Lightlake and Purdue Pharma LP dated September 24, 2014.

 

1.56         “Regulatory
Approval” means, with respect to a country or other jurisdiction, any and all approvals (including Drug Approval Applications),
licenses, registrations, or authorizations of any Regulatory Authority necessary to commercially distribute, sell, offer for sale,
market, import or use a Product in such country or other jurisdiction, including, where applicable, (i) pricing or reimbursement
approval in such country or other jurisdiction, (ii) pre- and post-approval marketing authorizations (including any prerequisite
Manufacturing approval or authorization related thereto), and (iii) labeling approval.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

1.57         “Regulatory
Authority” means any applicable supra-national, federal, national, regional, state, provincial, or local governmental
or regulatory agencies, departments, bureaus, commissions, councils, or other government entities (e.g., the FDA and EMA) regulating
or otherwise exercising authority with respect to activities contemplated in this Agreement, including the Exploitation of Products.

 

1.58         “Regulatory
Costs” means the out-of-pocket costs and expenses incurred by a Party or its Affiliates in connection with the preparation,
obtaining or maintaining of Regulatory Documentation and Regulatory Approvals for the Product, including any filing fees that are
consistent, if applicable, with the Development Plan.

 

1.59         “Regulatory
Documentation” means all (i) applications (including all INDs and Drug Approval Applications), registrations, licenses,
authorizations, and approvals (including Regulatory Approvals); (ii) correspondence and reports submitted to or received from
Regulatory Authorities (including minutes and official contact reports relating to any communications with any Regulatory Authority)
and all supporting documents with respect thereto, including all regulatory drug lists, advertising and promotion documents, adverse
event files, and complaint files; and (iii) clinical and other data contained or relied upon in any of the foregoing, in each
case ((i), (ii), and (iii)) relating to a Product.

 

1.60         “Senior
Officer” means, with respect to Lightlake, its Chief Executive Officer or his/her designee or his/her designee, and with
respect to Adapt, its Chief Executive Officer or Chief Operating Officer or his/her designee.

 

1.61         “Sublicensee”
means a Person, other than an Affiliate, that is granted a sublicense by Adapt under a license granted in Section 4.1 or
a right by Adapt, its Affiliates or Commercial Sublicensees to sell a Product, offer a Product for sale, or have a Product sold
(each such sublicense or right, a “Sublicense”).

 

1.62         “Third
Party” means any Person other than Lightlake, Adapt and their respective Affiliates.

 

1.63         “Trademark”
means any word, name, symbol, color, designation or device or any combination thereof that functions as a source identifier, including
any trademark, trade dress, brand mark, service mark, trade name, brand name, logo or business symbol, whether or not registered.

 

1.64         “United
States” or “U.S.” means the United States of America and its territories and possessions (including
the District of Columbia and Puerto Rico).

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

Additional Definitions. The following
terms have the meanings set forth in the corresponding Sections of this Agreement:

 

	Term	 	Section
	“Adapt Indemnitees”	 	9.2
	“Annual Net Sales Milestone Threshold”	 	5.3.1
	“Annual Net Sales-Based Milestone Table”	 	5.3.1
	“Annual Net Sales-Based Milestone Payment”	 	5.3.1
	“Annual Net Sales-Based Milestone Payment Date”	 	5.3.1
	“Audit Arbitrator”	 	5.13.2
	“Breaching Party”	 	10.3
	“Competing Product”	 	4.6
	“Core IP”	 	5.5
	“Default Notice”	 	10.3
	“Development Plan”	 	3.1
	“Follow-On Product”	 	5.2.5
	“Force Majeure”	 	11.1
	“First Product”	 	5.2.6
	“Generic Competition” 	 	5.4.2
	“Indemnification Claim Notice”	 	9.3
	“Indemnified Party”	 	9.3
	“Initial First Responder Sales”	 	5.4.1
	“Joint Development Committee” or “JDC”	 	2.1
	“Joint Know-How”	 	6.1.2
	“Joint Patents”	 	6.1.2
	“Joint Intellectual Property Rights”	 	6.1.2
	“Lightlake Cost Cap”	 	3.8.1
	“Lightlake Indemnitees”	 	9.1
	“Losses”	 	9.1
	“Non-Breaching Party”	 	10.3
	“Payment”	 	5.8
	“Pharmacokinetic Data”	 	1.15
	“Reconciliation Development Payment”	 	5.11.2
	“Recovery”	 	6.4.3(d)
	“ROFN”	 	4.3.3
	“Sublicense”	 	1.61
	“Target Filing Date”	 	3.2.3
	“Term”	 	10.1
	“Third Party Claims”	 	9.1

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

ARTICLE 2

JOINT DEVELOPMENT COMMITTEE

 

2.1           Formation.
Within fifteen (15) days after the Effective Date, the Parties shall establish a joint development committee (the “Joint
Development Committee” or “JDC”). The JDC shall consist of relevant representatives from each of the
Parties, each with the requisite experience and seniority to enable such person to make decisions on behalf of the Parties with
respect to the issues falling within the jurisdiction of the JDC. Each Party shall be entitled to appoint up to two (2) representatives
to the JDC. From time to time, each Party may substitute one (1) or more of its representatives to the JDC on written notice to
the other Party. Adapt shall designate from its representatives the chairperson for the JDC. From time to time, Adapt may change
the representative who will serve as chairperson on written notice to Lightlake.

 

2.2           Specific
Responsibilities. The JDC shall meet monthly in person or by phone for the purpose of facilitating the transition of Development
of the Product from Lightlake to Adapt. At least seven (7) days prior to each meeting, each Party shall circulate an agenda of
items that such Party wishes to cover in such meeting. In particular, the JDC shall:

 

2.2.1           review
and serve as a forum for discussing the Initial Development Plan, and review amendments thereto;

 

2.2.2           oversee
any transition activities under the Initial Development Plan;

 

2.2.3           serve
as a forum for discussing strategies for obtaining Regulatory Approvals for Products; and

 

2.2.4           perform
such other functions as are set forth herein or as the Parties may mutually agree in writing, except where in conflict with any
provision of this Agreement.

 

2.3           Disbandment.
Upon the **** anniversary of the Effective Date, the JDC shall have no further responsibilities or authority under this Agreement
and will be considered dissolved by the Parties.

 

2.4           Decision
Making. If the JDC cannot, or does not, reach consensus on an issue at a particular meeting, Adapt shall make the decision;
provided; however, that Adapt may not exercise its decision making authority in a manner that would increase Lightlake’s
full-time employee obligations under the Initial Development Plan, significantly modify the types of activities that Lightlake
would have to perform under the Initial Development Plan, extend Lightlake’s period of performance more than **** months
after the Effective Date or increase the Lightlake Cost Cap.

 

2.5           Limitations
on JDC Authority. Each Party shall retain the rights, powers, and discretion granted to it under this Agreement and no such
rights, powers, or discretion shall be delegated to or vested in the JDC unless such delegation or vesting of rights is expressly
provided for in this Agreement or the Parties expressly so agree in writing. The JDC shall not have the power to amend, modify,
or waive compliance with this Agreement, which may only be amended or modified as provided in Section 11.9 or compliance
with which may only be waived as provided in Section 11.11.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

ARTICLE 3

DEVELOPMENT, REGULATORY AND COMMERCIALIZATION ACTIVITIES

 

3.1           Development
Plan.

 

3.1.1           
Development Plan Delivery. By no later than November 1st of each Calendar Year during the Term after the Calendar Year in which
the Initial Development Plan was delivered until First Commercial Sale of a Product in the United States, Adapt shall prepare a
written development plan that describes generally the material Development activities to be undertaken by or on behalf of Adapt
with respect to Products in the next Calendar Year (each, a “Development Plan”), and each such Development Plan
shall be provided to Lightlake and Adapt shall consider any comments of Lightlake in good faith. The Initial Development Plan shall
serve as the Development Plan for the first full Calendar Year of this Agreement and the period from the Effective Date through
the end of the initial partial Calendar Year. Without limiting the generality of the foregoing, each Development Plan shall set
forth, among other things and to the extent relevant based on the stage of Development, the following with respect to the Products
then under Development:

 

(a)          any
preclinical studies, toxicology studies and other clinical studies with respect to Products;

 

(b)          regulatory
plans and other elements of obtaining and maintaining Regulatory Approvals for Products;

 

(c)          the
plans and timeline for preparing the necessary Regulatory Documentation and for obtaining Regulatory Approval for Products.

 

3.1.2           Development
Plan Amendments. Adapt may amend any Development Plan at any time, subject to providing Lightlake an opportunity to discuss
any proposed revisions prior to making such amendment and, during the first twelve (12) months following the Effective Date, by
submitting such amendment to the JDC prior to such amendment becoming effective; provided, however, that no such amendment to any
Development Plan may provide for an increase in Lightlake’s full-time employee obligations under the Initial Development
Plan, significantly modify the types of activities that Lightlake would have to perform under the Initial Development Plan, extend
Lightlake’s period of performance more than twelve (12) months after the Effective Date or increase the Lightlake Cost Cap.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

3.2           Development.

 

3.2.1           Ongoing
Development. The Parties acknowledge and agree that additional Development will be required to obtain Regulatory Approvals
for Products. After the Effective Date, as between the Parties, except as set forth in the Initial Development Plan (as the same
may be amended in accordance with Section 3.1.2) and Section 3.8.1, Adapt shall be solely responsible for Development
of the Products.

 

3.2.2           General
Diligence. Adapt shall use Commercially Reasonable Efforts to complete the activities associated with the Development of the
initial Product for the United States that are contemplated by the Development Plan then in effect (other than any such activities
to be undertaken by Lightlake). Adapt shall, and shall cause its Affiliates to, comply with all Applicable Law with respect to
Products.

 

3.2.3           Specific
Diligence Requirement. Without limiting the foregoing, if Adapt has not filed an NDA in respect of a Product on or before the
Target Filing Date, Adapt shall be deemed to be in material breach of this Agreement unless:

 

(a)          Adapt
shall have theretofore completed those tasks in relation to the Development of a Product contemplated on Schedule 3.2.3(a)
hereto; or

 

(b)          the
aggregate amount of Development Costs, Regulatory Costs and Commercialization Costs theretofore incurred by Adapt and Lightlake
after the Effective Date, together with the costs and expenses set forth on Schedule 3.8.2 hereto, shall equal or exceed
$5 million; or

 

(c)          prior
to such time, a Third Party files a Drug Approval Application in the United States for an intranasal product for the treatment
of opioid overdose and, either (i) such product has the same dosage form as the Product being developed by Adapt or (ii) such product
is deemed by the FDA to be, or otherwise becomes, the reference drug for purposes of any NDA that would be filed under Section
505(b)(2) of the FFDCA in respect of the Product being developed by Adapt; or

 

(d)          any
other circumstances that the Parties have separately agreed in writing will constitute exceptions pursuant to this Section 3.2.3
occur or exist.

 

For clarity, if any of the circumstances contemplated
by clauses (a) through (c) above exist, Adapt shall not be deemed to be in breach of this Agreement by virtue of its failure to
file an NDA for a Product on or prior to the Target Filing Date, but shall remain subject to the obligation to use Commercially
Reasonable Efforts in respect of the Development of the initial Product, as set forth above in Section 3.2.2. In the event
that none of the circumstances contemplated above exist, but Adapt notifies and provides reasonable evidence to Lightlake that
such inability to file on or prior to the Target Filing Date is due to variables outside of Adapt’s reasonable control, Adapt
may request that Lightlake consent to an extension of such Target Filing Date and Lightlake shall not unreasonably withhold, delay
or condition such requested extension. “Target Filing Date” means the date specified in the Initial Development
Plan as the date by which Adapt shall file an NDA in respect of a Product or such later date as Lightlake may consent to in accordance
with the immediately preceding sentence, provided that in the event of (i) a delay in the Development of a Product that is caused
by a Third Party and outside the reasonable control of Adapt or (ii) a Force Majeure, then (in either case, clause (i) or (ii))
the Target Filing Date shall automatically be extended by the actual amount of delay caused by a Third Party or the duration of
the Force Majeure, respectively. For clarity, Adapt shall not be in material breach of its Development Obligations under this Agreement,
including by virtue of this Section 3.2.3, if the Target Filing Date has been extended pursuant to this paragraph of Section
3.2.3 unless Adapt fails to file an NDA in respect of a Product on or before the revised Target Filing Date.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

3.2.4           Development
Costs. Except as otherwise provided in Section 3.8.1, Adapt shall be responsible for all costs and expenses in connection
with the Development of Products.

 

3.2.5           Interactions
with Third Parties. Except as otherwise expressly contemplated by this Agreement or the Development Plan, or as expressly agreed
between the Parties, as between the Parties, Adapt shall be solely responsible for and shall control, all interactions with Third
Parties regarding the Development, Manufacturing and Commercialization of the Products.

 

3.3           Regulatory
Matters.

 

3.3.1           Regulatory
Activities.

 

(a)          As
between the Parties, Adapt shall be responsible for preparing, obtaining, and maintaining Drug Approval Applications (including
the setting of the overall regulatory strategy therefor), other Regulatory Approvals and other submissions, and for conducting
communications with the Regulatory Authorities, for Products (which shall include filings of or with respect to INDs and other
filings or communications with the Regulatory Authorities), in each case in accordance with the terms of this Agreement and otherwise
in Adapt’s sole discretion. All Regulatory Approvals applied for or received after the Effective Date relating to Products
shall be owned by and held in the name of, Adapt. At Adapt’s request, Lightlake shall transfer ownership of the IND in respect
of the initial Product to Adapt at no cost and shall take such action as is necessary to confirm such transfer with the FDA.

 

(b)          Adapt
shall notify Lightlake promptly (but in no event later than forty-eight (48) hours) following its determination that any event,
incident, or circumstance has occurred that may result in the need for a recall, market suspension, or market withdrawal of a Product,
and shall include in such notice the reasoning behind such determination, and any supporting facts. Adapt (or its Sublicensee)
shall have the right to make the final determination whether to voluntarily implement any such recall, market suspension, or market
withdrawal. If a recall, market suspension or market withdrawal is mandated by a Regulatory Authority, Adapt (or its Sublicensee)
shall initiate such a recall, market suspension or market withdrawal in compliance with Applicable Law. For all recalls, market
suspensions, or market withdrawals undertaken, Adapt (or its Sublicensee) shall be solely responsible for the execution and all
costs thereof.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

3.3.2           Regulatory
Costs. Except as otherwise provided in Section 3.8.1, Adapt shall be responsible for all costs and expenses in connection
with the Development of, and obtaining and maintaining Regulatory Approvals for, Products.

 

3.3.3           Rights
of Reference and Access to Data.

 

(a)          Adapt
shall have the right to cross-reference Lightlake’s or its Affiliate’s Regulatory Approvals and Regulatory Documentation
related to Products, and to access such Regulatory Approvals and Regulatory Documentation and any data and know-how therein and
use such data and know-how, in each case in connection with the performance of its obligations and exercise of its rights under
this Agreement. Lightlake hereby grants to Adapt a “Right of Reference,” as that term is defined in 21 C.F.R. §
314.3(b) in the United States, or an equivalent right of access/reference in any other jurisdiction, to any data, including Lightlake’s
or its Affiliates’ Regulatory Approvals and Regulatory Documentation, that relate to a Product for use by Adapt to Develop
and Commercialize Products pursuant to this Agreement. Lightlake or such Affiliate shall provide a signed statement to this effect,
if requested by Adapt, in accordance with 21 C.F.R. § 314.50(g)(3) or the equivalent as required in any other jurisdiction
or otherwise provide appropriate notification of such right of Adapt to the applicable Regulatory Authority.

 

(b)          Upon
and subject to the Parties’ mutual written agreement upon commercially reasonable terms, Adapt shall (a) grant Lightlake
the right to cross-reference Adapt’s or its Affiliate’s or Commercial Sublicensee’s Regulatory Approvals and
Regulatory Documentation related to Products, and to access such Regulatory Approvals and Regulatory Documentation and any data
and know-how therein and use such data and know-how, in each case in connection with the development, manufacture, use, and/or
commercialization of intranasal products containing naloxone (other than Products) and (b) grant Lightlake a “Right of Reference,”
as that term is defined in 21 C.F.R. § 314.3(b) in the United States, or an equivalent right of access/reference in any other
jurisdiction, to any data, including Adapt’s or its Affiliates’ or Commercial Sublicensee’s Regulatory Approvals
and Regulatory Documentation, that relate to a Product for use by Lightlake to development, manufacture, use, and/or commercialization
of intranasal products containing naloxone (other than Products). For the sake of clarity, this Section 3.3(b) shall be
of no force or effect unless and until the Parties agree in writing on the terms of such foregoing rights. Notwithstanding the
foregoing, Adapt shall promptly provide Lightlake the Pharmacokinetic Data upon it becoming available, provided that Lightlake
shall not have a right to use such data or reference such data for any purpose other than with respect to its indemnification obligations
under this Agreement.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

3.4           Records;
Reports. Adapt shall maintain records in reasonable detail and in good scientific manner appropriate for patent and regulatory
purposes, and in compliance with Applicable Law, which shall be materially complete and accurate and shall properly reflect all
material work done and results achieved in the performance of its Development activities in respect of the Products. Following
the first anniversary of the Effective Date, Adapt and Lightlake shall meet at least once and up to twice per annum, at such times
as the Parties shall reasonably agree to discuss the then-ongoing Development and Commercialization activities that (i) Adapt is
undertaking with respect to Products and (ii) Lightlake is undertaking in respect of other products containing naloxone. At each
such meeting, (x) Adapt shall update Lightlake on the material developments in respect of its Development and Commercialization
of Products and discuss in good faith any suggestions or questions Lightlake may have and Lightlake shall be permitted to retain
a copy of Adapt’s presentation materials, subject to Article 7 hereof and (y) Lightlake shall update Adapt on the material
developments in Lightlake’s and its other licensees’ efforts to Develop and Commercialize such other naloxone products,
subject to Article 7 hereof.

 

3.5           Commercialization.

 

3.5.1           In
General. Except as otherwise provided in Section 3.8.1, Adapt (itself or through its Affiliates or Sublicensees) shall
be solely responsible for Commercialization of Products at Adapt’s own cost and expense, in accordance with the terms of
this Agreement and otherwise in Adapt’s sole discretion.

 

3.5.2           Diligence.
Once a Product receives all requisite Regulatory Approvals in a particular country necessary to Commercialize such Product in such
country, Adapt shall use Commercially Reasonable Efforts to Commercialize such Product in such country. Adapt shall Commercialize
Products in accordance with Applicable Law. Without limiting any of the foregoing, on a Product-by-Product basis, Adapt shall use
Commercially Reasonable Efforts to achieve First Commercial Sale of a Product in the United States within nine (9) months after
the date on which Adapt is notified by the FDA that an NDA in respect of such Product has received approval.

 

3.5.3           Booking
of Sales; Distribution. As between the Parties, Adapt shall invoice and book sales, establish all terms of sale (including
pricing and discounts) and warehousing, and distribute the Products and perform or cause to be performed all related services.
As between the Parties, Adapt shall handle all returns, recalls, or withdrawals, order processing, invoicing, collection, distribution,
and inventory management with respect to the Products.

 

3.5.4           Product
Trademarks. Adapt shall have the sole right to determine, in its sole discretion, the Product Trademarks to be used with respect
to the Exploitation of Products on a worldwide basis. As between the Parties, all such Product Trademarks shall be owned by Adapt.

 

3.6           Supply
of Products.

 

3.6.1           Assignment
of Existing Inventory. Subject to Section 3.8.3, Lightlake hereby sells and assigns to Adapt all of its right, title,
and interest in and to the Existing Inventory Supply. Lightlake shall not be entitled to any additional payment for such Existing
Inventory. Promptly following the Effective Date, Lightlake shall deliver or have delivered such supply to Adapt FCA (Incoterms
2010) the facility designated by Adapt.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

3.6.2           Supply
of Products. Except as set forth in Section 3.6.1, as between the Parties, subject to Section 3.8.1, Adapt shall
have the sole responsibility for, at its expense, Manufacturing (or having Manufactured) and obtaining supply of naloxone (including
all excipients) and devices (including packaging) for pre-clinical and clinical purposes and for commercial sale of Products by
Adapt and its Affiliates and Commercial Sublicensees. Adapt shall use Commercially Reasonable Efforts to ensure that any agreement
pursuant to which Adapt contracts with Third Parties for the supply of the device utilized by the Products and of finished Products
may be assigned to Lightlake without such Third Party’s consent in the event that this Agreement is terminated.

 

3.7           Subcontracting;
Assigned Contracts. Either Party may subcontract with a Third Party to perform any or all of its obligations hereunder, provided
that (i) no such permitted subcontracting shall relieve a subcontracting Party of any liability or obligation hereunder except
to the extent satisfactorily performed by such subcontractor, and (ii) the Party engaging such subcontractor shall ensure
that the agreement pursuant to which the subcontracting Party engages such subcontractor (A) does not conflict with any material
term of this Agreement, and (B) contains terms obligating such subcontractor to comply with obligations of confidentiality
and non-use consistent with those set forth in this Agreement. Promptly after the Effective Date, Lightlake shall use commercially
reasonable efforts to assign to Adapt, and for Adapt to assume from Lightlake all of Lightlake’s right, title, and interest
in and to the Third Party contracts set forth on Schedule 3.7 (the “Assigned Contracts”), including (a)
by obtaining from each Third Party counterparty thereto a consent in the form attached hereto as Exhibit A and (b) entering
into one or more assignment and assumption agreements substantially in the form attached hereto as Exhibit B. In addition,
as soon as practicable following the Effective Date (1) the Parties shall meet with NIDA to discuss the transition of the Development
of the initial Product to Adapt as contemplated herein and (2) ****.

 

3.8           Sharing
of Development Costs, Regulatory Costs and Commercialization Costs.

 

3.8.1           Cost
Sharing. Lightlake shall bear fifty percent (50%) of all Development Costs and Adapt shall bear fifty percent (50%) of
all Development Costs (whether incurred by Lightlake or Adapt or their respective Affiliates, Sublicensees or subcontractors)
incurred after the Effective Date in accordance with the Development Plan in connection with the Development of Products
using the **** Unit Dose Device and Lightlake shall bear fifty percent (50%) of all Regulatory Costs and Commercialization
Costs incurred by Adapt and Adapt shall bear fifty percent (50%) of all Regulatory Costs and Commercialization Costs incurred
by Adapt (whether incurred by Adapt or its Affiliates, Sublicensees or subcontractors), in connection with the Development
and Commercialization of the Product using the **** Unit Dose Device until such time as Lightlake has incurred Development
Costs, Regulatory Costs and Commercialization Costs of Two Million Five Hundred Thousand Dollars ($2,500,000) (the
“Lightlake Cost Cap”). After the Lightlake Cost Cap has been reached, Adapt shall be responsible for one
hundred percent (100%) of all Development Costs, Regulatory Costs and Commercialization Costs. For clarity, Lightlake shall
not have any obligation to bear any Development Costs, Regulatory Costs or Commercialization Costs in connection with the
Development or Commercialization of a Product using a drug delivery device other than the **** Unit Dose Device; provided,
however, in the event that Adapt determines, in good faith, that the Product cannot be further Developed using the **** Unit
Dose Device, whether due to a technical failure or failure of any clinical study using such device, then Adapt may proceed
with Development using another device and the foregoing cost sharing provisions shall apply to the Development Costs,
Regulatory Costs and Commercialization Costs associated with such alternate Product as well. Notwithstanding the
foregoing, Development Costs incurred by Lightlake (or its Affiliates, Sublicensees or subcontractors) shall only be shared
and credited towards the Lightlake Cost Cap in accordance with this Section 3.8.1 to the extent the same are either
(a) contemplated in the Initial Development Plan or a subsequent Development Plan and are expressly approved in advance by
Adapt, or are set forth on Schedule 3.8.2 or (b) paid by Lightlake after the Effective Date to suppliers and/or
vendors, including their affiliates, whose names are listed on Schedule 3.8.2, other than ****, for activities related
exclusively to the Product where such activities commenced before the Effective Date; provided, however, that the aggregate
amount contemplated by this clause (b) shall not exceed $150,000.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

3.8.2           Crediting
of Certain Costs. The Parties agree that the costs and expenses incurred by Lightlake prior to the Effective Date in respect
of the Development of the initial Product that are specified on Schedule 3.8.2 hereto shall be credited as Lightlake’s
payment of Development Costs in accordance with Section 3.8.1 and count towards the Lightlake Cost Cap. For clarity, if
Adapt and its Affiliates and Sublicensees fail to incur Development Costs in excess of the amount credited hereunder for Lightlake’s
share of the Development Costs, Lightlake shall not be entitled to any payment from Adapt for such excess amounts.

 

3.8.3           Payment
and Reimbursement of Costs. To the extent that either Party is entitled to a reimbursement of costs described in Section
3.8.1, such costs will be reconciled and paid in accordance with Section 5.11.

 

3.8.4           General.
Each Party shall maintain current and accurate records of all costs and expenses incurred by it for which it seeks reimbursement
from the other Party pursuant to Section 3.8.1.

 

ARTICLE 4

TRANSFER AND ASSIGNMENT; GRANT OF RIGHTS

 

4.1           Grants
to Adapt. Subject to the terms and conditions of this Agreement, Lightlake hereby grants to Adapt an exclusive (including with
regard to Lightlake) worldwide license, with the right to grant sublicenses in accordance with Section 4.4, under the Lightlake
Patents, the Product Specific Patents, the Lightlake Know-How, and Lightlake’s interests in the Joint Patents and the Joint
Know-How, to Exploit Products.

 

4.2           Grants
to Lightlake.

 

4.2.1           Adapt
hereby grants to Lightlake a non-exclusive, royalty-free license, without the right to grant sublicenses, under the Adapt Applied
Patents, the Adapt Applied Know-How, and Adapt’s interests in the Joint Patents and the Joint Know-How solely for purposes
of performing its obligations as set forth in, and subject to, this Agreement.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

4.2.2           Upon
and subject to agreement of commercially reasonable terms, Adapt shall grant to Lightlake a non-exclusive, royalty-free, worldwide
license, with the right to grant sublicenses, under the Adapt Applied Patents, the Adapt Applied Know-How and Development Data
to Develop, Manufacture and Commercialize products containing naloxone other than a Product. For the sake of clarity, this Section
4.2.2 shall be of no force or effect unless and until the Parties agree in writing on the terms of such foregoing rights.

 

4.3           Sublicenses.

 

4.3.1           Right
to Grant Sublicenses. Adapt shall have the right to grant Sublicenses (through multiple tiers of Sublicensees). Adapt shall
cause each Sublicensee to comply with the applicable terms and conditions of this Agreement. Adapt shall remain responsible for
the performance of its Affiliates and Sublicensees that are granted Sublicenses as permitted herein, and the grant of any such
Sublicense shall not relieve Adapt of its obligations under this Agreement. With respect to any such Sublicense, Adapt shall ensure
that the agreement pursuant to which it grants such Sublicense (i) does not conflict with the terms and conditions of this Agreement
and (ii) contains terms obligating the Sublicensee to comply with confidentiality and non-use provisions consistent with those
set forth in this Agreement. With respect to any such Sublicense to a Commercial Sublicensee, Adapt shall use Commercially Reasonable
Efforts to ensure that the agreement pursuant to which it grants such Sublicense contains (A) terms obligating such Commercial
Sublicensee to permit Lightlake rights of inspection, access, and audit substantially similar to those provided to Lightlake in
this Agreement and (B) terms relating to intellectual property and data ownership consistent with those set forth in this Agreement.
With respect to any such Sublicense to a Commercial Sublicensee, Adapt shall ensure that the agreement pursuant to which it grants
such sublicense contains an exclusivity provision consistent with that contained in Section 4.6.2. A copy of any Sublicense
agreement with a Commercial Sublicensee executed by Adapt shall be provided to Lightlake within fourteen (14) days after its execution;
provided that the financial terms of any such Sublicense agreement may be redacted to the extent not pertinent to an understanding
of a Party’s obligations or benefits under this Agreement.

 

4.3.2           Termination
of Sublicenses. In the event of termination of this Agreement, in whole or in part, any sublicense granted by Adapt pursuant
to this Section 4.3 shall automatically be deemed to terminate to the same extent as the license or other rights granted
by Lightlake to Adapt in Section 4.2, and the other terms and conditions of this Agreement, terminate.

 

4.3.3           Right
of First Negotiation. Notwithstanding anything to the contrary in this Agreement, in the event Lightlake elects to license,
sublicense or sell (except in connection with a license or sale of all or substantially all of the assets of Lightlake), in one
transaction or a series of related transactions, a controlling interest with respect to any product containing naloxone, Lightlake
shall promptly provide notice to Adapt of such election and Lightlake hereby grants to Adapt a right of first negotiation to license
or acquire such rights (“ROFN”). Adapt may exercise each ROFN upon notice to Lightlake within fifteen (15) Business
Days from the date upon which Adapt receives written notice from Lightlake. In the event that Adapt elects to exercise a ROFN,
the Parties shall enter into good faith negotiations for a commercially reasonable licensing or asset sale agreement. If the Parties,
in good faith negotiations, are unable to reach agreement within seventy (70) days after the date upon which Adapt exercised the
ROFN, then Lightlake will be free to enter an agreement for such rights with a Third Party.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

4.4           Retention
of Rights; Limitations Applicable to License Grants.

 

4.4.1           Retained
Rights of Lightlake. Except as expressly set forth in this Agreement, and without limitation to any rights granted or reserved
to Lightlake pursuant to any other term or condition of this Agreement, Lightlake hereby expressly retains, on behalf of itself
and its Affiliates (and on behalf of its licensees, sublicensees and contractors):

 

(a)          non-exclusive
rights in and to the Lightlake Patents, the Lightlake Know-How, Lightlake’s interests in and to Joint Patents and Joint Know-How,
in each case solely to perform its obligations under this Agreement; and

 

(b)          
all right, title, and interest in and to the Lightlake Patents, the Lightlake Know-How, Lightlake’s interests in and to Joint
Patents and Joint Know-How, in each case to develop and obtain and maintain regulatory approvals for, and to manufacture, commercialize
and otherwise exploit any compound or product other than Products or Competing Products.

 

4.4.2           No
Other Rights Granted by Lightlake. Except as expressly provided herein and without limiting the foregoing, Lightlake grants
no other right or license, including any rights or licenses to the Lightlake Patents, the Lightlake Know-How, the Regulatory Documentation,
or any other Patent or intellectual property rights not otherwise expressly granted herein.

 

4.5           Transfer
of Lightlake Know-How. As soon as practicable after the Effective Date, Lightlake shall provide to Adapt (which can be in the
form of copies and electronic files) all material Lightlake Know-How existing as of the Effective Date, to the extent such Lightlake
Know-How has not theretofore been provided to Adapt and is reasonably required by or useful to Adapt for the exercise of its rights
or the performance of its obligations under this Agreement.

 

4.6           Exclusivity.

 

4.6.1           During
the Term and for a period of one year following the Term, other than as contemplated by this Agreement, neither Party shall, and
each Party shall cause its Affiliates not to and shall use Commercially Reasonable Efforts to cause its directors, officers and
employees not to, (i) directly or indirectly, develop, commercialize or manufacture any product containing naloxone as the active
ingredient for the treatment of opioid overdose in an intranasal form (“Competing Product”) in any country or
other jurisdiction, or (ii) license, authorize, appoint, or otherwise enable any Third Party to directly or indirectly, develop,
commercialize or manufacture any Competing Product in any country or other jurisdiction.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

4.6.2           During
the term of any agreement pursuant to which a Commercial Sublicensee is granted a Sublicense to sell a Product or have a Product
sold, other than as contemplated by this Agreement, each Party shall cause its Commercial Sublicensees not to (i) directly or indirectly,
develop, commercialize or manufacture any Competing Product in any country or other jurisdiction in which such Commercial Sublicensee
has been granted a Sublicense to sell a Product or have a Product sold, or (ii) license, authorize, appoint, or otherwise
enable any Third Party to directly or indirectly, develop, commercialize or manufacture any Competing Product in any such country
or other jurisdiction in which such Commercial Sublicensee has been granted a Sublicense to sell a Product or have a Product sold.

 

4.7           Compliance
with Law. Adapt shall conduct, or cause to be conducted, the Development, Commercialization, Manufacture and Exploitation of
Products in compliance with all Applicable Laws.

 

ARTICLE 5

PAYMENTS AND RECORDS

 

5.1           Upfront
Payment. Within one (1) Business Days after the Effective Date, Adapt shall pay Lightlake an upfront amount equal to Five Hundred
Thousand Dollars ($500,000). Such payment shall be nonrefundable and noncreditable against any other payments due hereunder.

 

5.2           Regulatory
Milestones. In partial consideration of the rights granted by Lightlake to Adapt hereunder and subject to the terms and conditions
set forth in this Agreement, Adapt shall pay to Lightlake a milestone payment within thirty (30) days after the achievement of
each of the following milestones:

 

5.2.1           Adapt’s
first receipt of notice from the FDA that an NDA in respect of a Product has received approval, **** Dollars ($****);

 

5.2.2           First
Commercial Sale of a Product in the United States, **** Dollars ($****);

 

5.2.3           First
Commercial Sale of a Product in any country or territory outside the United States after receipt of all requisite Regulatory Approvals
in such country, **** Dollars ($****);

 

5.2.4           First
Commercial Sale of a Product in any three (3) countries comprising the Major Markets, **** Dollars ($****);

 

5.2.5           First
Commercial Sale of a Product in the United States using an intranasal delivery device other than a unit dose delivery device (a
“Follow-On Product”), **** Dollars ($****);

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

5.2.6           First
Commercial Sale of a Follow-On Product in the United States, provided, that (i) a Product using a unit dose delivery device in
the United States (“First Product”) has received Regulatory Approval, and the use of the Follow-On Product has
an improved naloxone bioavailability profile relative to the First Product and (ii) Patents covering or claiming the Follow-On
Product are listed in the FDA’s Approved Drug Products with Therapeutic Equivalent Evaluations (or successor thereto) with
respect to such Follow-On Product, **** Dollars ($****);

 

Each milestone payment in this Section 5.2 shall be payable
only upon the first achievement of such milestone and no amounts shall be due for subsequent or repeated achievements of such milestone,
whether for the same or a different Product. The maximum aggregate amount payable by Adapt pursuant to this Section 5.2
is Seven Million Five Hundred Thousand Dollars ($7,500,000).

 

5.3           Sales-Based
Milestones.

 

5.3.1           In
partial consideration of the license rights granted by Lightlake to Adapt hereunder, in the event that the aggregate of all Net
Sales in a given Calendar Year exceeds a threshold (each, an “Annual Net Sales Milestone Threshold”) set forth
in the left-hand column of the table immediately below for such Calendar Year (the “Annual Net Sales-Based Milestone Table”),
Adapt shall pay to Lightlake a milestone payment (each, an “Annual Net Sales-Based Milestone Payment”) in the
corresponding amount set forth in the right-hand column of the Annual Net Sales-Based Milestone Table. In the event that in a given
Calendar Year more than one Annual Net Sales Milestone Threshold is exceeded, Adapt shall pay to Lightlake a separate Annual Net
Sales-Based Milestone Payment with respect to each Annual Net Sales Milestone Threshold that is exceeded in such Calendar Year.
Each such milestone payment shall be due within sixty (60) days after the end of the Calendar Quarter in such Calendar Year in
which such milestone was achieved (each, an “Annual Net Sales-Based Milestone Payment Date”).

 

	Threshold Annual Net Sales Levels	 	Payment Amount
	Thirty Million Dollars ($30,000,000)	 	Two Million Dollars ($2,000,000)
	Forty Million Dollars ($40,000,000)	 	Six Million Dollars ($6,000,000)
	Fifty-Five Million Dollars ($55,000,000)	 	Ten Million Dollars ($10,000,000)
	Seventy-Five Million Dollars ($75,000,000)	 	Fifteen Million Dollars ($15,000,000)
	Two Hundred Million Dollars ($200,000,000)	 	Fifteen Million Dollars ($15,000,000)

 

5.3.2           Notwithstanding
anything contained in Section5.3.1, each milestone payment in this Section 5.3 shall be payable only upon the first
achievement of such milestone in a given Calendar Year, and no amounts shall be due for subsequent or repeated achievements of
such milestone in subsequent Calendar Years. The maximum aggregate amount payable by Adapt pursuant to this Section 5.3
is Forty-Eight Million Dollars ($48,000,000).

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

5.4           Royalties.

 

5.4.1           Royalty
Rates. As further consideration for the rights granted to Adapt hereunder, subject to Section 5.4.2, commencing upon
the First Commercial Sale, Adapt shall pay to Lightlake a royalty on Net Sales during each Calendar Year at the following rates:

 

	Net Sales of all Products	 	Royalty Rate	 
	Subject to Section 5.4.2, for that portion of aggregate Net Sales during a Calendar Year less than Fifty Million Dollars ($50,000,000).	 	 	6	%
	For that portion of aggregate Net Sales during a Calendar Year equal to or greater than Fifty Million Dollars ($50,000,000) but less than Seventy-Five Million Dollars ($75,000,000).	 	 	7.5	%
	For that portion of aggregate Net Sales during a Calendar Year equal to or greater than Seventy-Five Million Dollars ($75,000,000) but less than One Hundred Million Dollars ($100,000,000).	 	 	9	%
	For that portion of aggregate Net Sales during a Calendar Year equal to or greater than One Hundred Million Dollars ($100,000,000) but less than Two Hundred Million Dollars ($200,000,000).	 	 	10	%
	For that portion of aggregate Net Sales during a Calendar Year equal to or greater than Two Hundred Million Dollars ($200,000,000).	 	 	12	%

 

5.4.2           Royalty
on Certain Pre-Approval Net Sales. As further consideration for the rights granted to Adapt hereunder, Adapt shall pay to Lightlake
a royalty of sixteen percent (16%) of Net Sales of the First Product to the First Responder Market that are made prior to the First
Commercial Sale and prior to Regulatory Approval of the First Product, up to aggregate Net Sales of Three Million One Hundred Twenty-Five
Thousand Dollars ($3,125,000) (i.e., the maximum royalty payable pursuant to this Section 5.4.2 shall equal $500,000). If
royalties are paid under this Section 5.4.2 in the Calendar Year of or before the First Product receives Regulatory Approval,
then the initial royalties contemplated by Section 5.4.1 shall be payable only for that portion of aggregate Net Sales during
such Calendar Year that exceeds such Net Sales to the First Responder Market.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

5.4.3           Generic Reduction. Notwithstanding
anything to the contrary in Section 5.4.1, in the event that in any country during a Calendar Quarter there is Generic Competition,
the royalties payable to Lightlake for the Net Sales of such Product in such country shall be reduced to **** (****%) percent for
such Calendar Quarter. “Generic Competition” means, either (i) on a country-by-country and Product-by-Product
(with different strengths or presentations of Products being regarded as separate Products for purposes hereof) basis, the unit
volume of a Product sold in a country in any Calendar Quarter is less than **** percent (****%) of the unit volume of such Product
sold in such country in the last full Calendar Quarter immediately preceding the date on which a Generic Product in respect of
such Product was first launched in such country or (ii) on a country-by-country and Product-by-Product (with different strengths
of Products being regarded as separate Products for purposes hereof) basis, in the event that there is an authorized generic version
of a Product sold by Adapt or its Affiliate or Commercial Sublicensee in a country, the aggregate Net Sales of such Product and
such authorized generic version of such Product in any Calendar Quarter are less than **** percent (****%) of the aggregate Net
Sales thereof in the last full Calendar Quarter immediately preceding the date on which a Generic Product in respect of such Product
was first launched in such country.

 

5.5           Third
Party Royalties. If, during the Term, Adapt elects, in its sole discretion, to seek a license under any Patent of a Third Party
that (i) Adapt reasonably determines would be infringed by the Exploitation, in any part of the Territory, of any Product then
under Development or being Commercialized by Adapt, its Affiliates or its Sublicensees, or that Adapt determines could be listed
in the FDA’s Orange Book in respect of one or more Products (including Products in Development), or that claims an invention
that Adapt determines could facilitate the Development of one or more new Product(s) (any of the foregoing, “Core IP”)
or (ii) that Adapt otherwise determines is necessary or desirable for Adapt, its Affiliates or Sublicensees to Exploit the Products,
then, in either case, Adapt shall be solely responsible for the negotiation and execution of the corresponding license agreement.
Any amounts due under any such Third Party license agreement will be borne by Adapt; provided, however, that Adapt shall be entitled
to deduct up to **** percent (****%) of the upfront payment, milestones or royalties paid to such Third Party (on account of rights
relating to Products) from the Regulatory Milestones payable by Adapt pursuant to Section 5.2, the Sales-Based Milestones
payable by Adapt pursuant to Section 5.3 and the royalties payable by Adapt pursuant to Section 5.4. To the extent
that, in any Calendar Quarter with respect to a royalty payment or with respect to milestone payment in the event of a milestone,
Adapt was not able to deduct the entire amount of the above percentage of any and all amounts paid to such Third Party in such
Calendar Quarter or from such regulatory or sales-based milestone payment, Adapt shall be entitled to carry forward such remaining
amounts and deduct them from the royalties due in subsequent Calendar Quarters or a subsequent regulatory or sales-based milestone
payment; provided that in no event shall reductions pursuant to this Section 5.5 result in royalties on Product of less
than (x) **** percent (****%) of Net Sales in any Calendar Quarter in the case of reductions associated with Core IP or (y) ****
percent (****%) of Net Sales in any Calendar Quarter in the case of reductions associated with any other license contemplated by
this Section 5.5.

 

5.6           Royalty
Payments and Reports. Adapt shall calculate all amounts payable to Lightlake pursuant to Section 5.4 at the end of each
Calendar Quarter, which amounts shall be converted to Dollars, in accordance with Section 5.7. Adapt shall pay to Lightlake
the royalty amounts due with respect to a given Calendar Quarter within forty-five (45) days after the end of such Calendar Quarter.
Each payment of royalties due to Lightlake shall be accompanied by a statement of the amount of gross sales and Net Sales of each
Product in each country during the applicable Calendar Quarter (including such amounts expressed in local currency and as converted
to Dollars) and a calculation of the amount of royalty payment due on such Net Sales for such Calendar Quarter.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

5.7           Mode
of Payment; Offsets. All payments to either Party under this Agreement shall be made by deposit of Dollars in the requisite
amount to such bank account as the receiving Party may from time to time designate by notice to the paying Party. For the purpose
of calculating any sums due under, or otherwise reimbursable pursuant to, this Agreement (including the calculation of Net Sales
expressed in currencies other than Dollars), a Party shall convert any amount expressed in a foreign currency into Dollar equivalents
using its, the simple average of prior month-end Exchange Rate and current month-end Exchange Rate based on 9:00 AM Central Time
Bloomberg screen on the penultimate Business Day of the corresponding month. The “Exchange Rate” means, with respect
to a Business Day, the spot bid rate for X currencies and spot ask rate for non-X currencies for the conversion of the applicable
country’s or other jurisdiction’s currency to Dollars as reported at 9:00 AM Central Time Bloomberg screen on the penultimate
Business Day. Adapt shall not have the right to offset, set off or deduct any amounts from or against the amounts due to Lightlake
hereunder any amounts owing by Lightlake to Adapt hereunder.

 

5.8           Taxes.
The milestones and royalties payable by Adapt to Lightlake pursuant to this Agreement (each, a “Payment”) shall
be paid free and clear of any and all taxes, except for any withholding taxes required by Applicable Law. Where any sum due to
be paid to either Party hereunder is subject to any withholding or similar tax, the Parties shall use their commercially reasonable
efforts to do all such acts and things and to sign all such documents as will enable them to take advantage of any applicable double
taxation agreement or treaty. In the event there is no applicable double taxation agreement or treaty, or if an applicable double
taxation agreement or treaty reduces but does not eliminate such withholding or similar tax, the payor shall pay such withholding
or similar tax to the appropriate government authority, deduct the amount paid from the amount due to payee and secure and send
to payee the best available evidence of such payment.

 

5.9           Interest
on Late Payments. If any payment due to either Party under this Agreement is not paid when due, then such paying Party
shall pay interest thereon (before and after any judgment) at an annual rate (but with interest accruing on a daily basis) of three
percent above LIBOR, such interest to run from the date on which payment of such sum became due until payment thereof in full together
with such interest.

 

5.10         Funding
under the Initial Development Plan. In consideration for Lightlake’s performance of its obligations under the Initial
Development Plan, upon the terms and conditions contained herein, for the shorter of the Term or the first (12) months after the
Effective Date, Adapt shall pay to Lightlake **** Dollars ($****) per month plus the reasonable and documented out-of-pocket costs
and expenses incurred by Lightlake in delivering reasonably requested transition support in accordance with the Initial Development
Plan payable no later than fifteen days after the start of each such month and with respect to out-of-pocket expenses, payable
no later than thirty days after the receipt of an invoice from Lightlake. Payments made under this Section 5.10 shall not
be considered Development Costs, Regulatory Costs or Commercialization Costs for purposes of Section 3.8.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

5.11         Development
Costs; Regulatory Costs and Commercialization Costs.

 

5.11.1         Report
of Development Costs, Regulatory Costs and Commercialization Costs. Within thirty (30) days following the end of each calendar
month beginning with the Effective Date and ending with the month in which the Lightlake Cost Cap has been reached, Lightlake shall
prepare and deliver to Adapt a report detailing its Development Costs for the preceding month, and Adapt shall, within fifteen
(15) days thereafter, prepare and deliver to Lightlake a report (i) detailing Adapt’s Development Costs, Regulatory Costs
and Commercialization Costs incurred during such preceding month, (ii) setting forth a reconciliation of the amounts for which
each Party is responsible pursuant to Section 3.8.1, and (iii) indicating the amount in Dollars due to Lightlake or Adapt,
as applicable for such calendar month (each, a “Reconciliation Development Payment”). Each Party shall provide
such additional detail regarding its reported costs as the other Party shall reasonably request.

 

5.11.2         Reconciliation
Payments. Within fifteen (15) days after Adapt delivers each of its monthly reports pursuant to Section 5.11.1, the
Party to whom a Reconciliation Development Payment is due shall issue an invoice to the other Party for the Reconciliation Development
Payment, which invoice shall be due and payable within fifteen (15) days thereafter.

 

5.12         Financial
Records. Adapt shall, and shall cause its Affiliates to, keep complete and accurate books and records pertaining to
Net Sales of Products, and any other records reasonably required to be maintained with respect to each Party’s obligations
under this Agreement, and each Party shall maintain complete and accurate records in sufficient detail to permit the other Party
to confirm the accuracy of all Development Costs, Regulatory Costs and Commercialization Costs invoiced by one Party to the other
Party pursuant to Section 5.11.2 in sufficient detail to calculate all amounts payable hereunder and to verify compliance
with its obligations under this Agreement. Such books and records shall be retained by a Party and its Affiliates until the later
of (i) three (3) years after the end of the period to which such books and records pertain, and (ii) the expiration of
the applicable tax statute of limitations (or any extensions thereof), or for such longer period as may be required by Applicable
Law.

 

5.13         Audit.

 

5.13.1         Audit.
At the request of a Party, the other Party shall, and shall cause its Affiliates to, permit an independent auditor designated by
auditing Party and reasonably acceptable to the audited Party, at reasonable times and upon reasonable notice, to audit the books
and records maintained pursuant to Section 5.12 to ensure the accuracy of all reports and payments made hereunder; provided,
however, that such audit right may be exercised no more than once in any Calendar Year; provided, that once the reports and payments
for any particular period have been audited hereunder, such reports and payments shall not be the subject of any future audit absent
fraud; provided, further, that the reports and payments made in any particular Calendar Year shall be subject to audit only until
the end of the third Calendar Year following the Calendar Year in which such reports or payments were made. Except as provided
below, the cost of this audit shall be borne by the auditing Party, unless the audit reveals a discrepancy in favor of the audited
Party of more than five percent (5%) from the reported amounts for the audited Party, in which case the audited Party shall bear
the cost of the audit. Unless disputed pursuant to Section 5.13.2, if such audit concludes that (x) additional amounts
were owed by the audited Party, the audited Party shall pay the additional amounts, with interest from the date originally due
as provided in Section 5.9, or (y) excess payments were made by audited Party, the auditing Party shall reimburse such
excess payments, in either case ((x) or (y)), within sixty (60) days after the date on which such audit is completed by the auditing
Party. The audited Party may require the accounting firm to sign a customary non-disclosure agreement before providing the accounting
firm access to the audited Party’s facilities or records. Upon completion of the audit, the accounting firm shall provide
both Parties a written report disclosing whether the reports submitted by the audited Party are correct or incorrect, whether the
calculations set forth in the reports submitted by the audited Party are correct or incorrect, and, in each case, the specific
details concerning any discrepancies. No other information shall be provided to the auditing Party.

 

    28 

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

5.13.2         Audit
Dispute. In the event of a dispute with respect to any audit under Section 5.13.1, Lightlake and Adapt shall work in
good faith to resolve the disagreement. If the Parties are unable to reach a mutually acceptable resolution of any such dispute
within thirty (30) days, the dispute shall be submitted for resolution to a certified public accounting firm jointly selected by
each Party’s certified public accountants or to such other Person as the Parties shall mutually agree (the “Audit
Arbitrator”). The decision of the Audit Arbitrator shall be final and the costs of such arbitration as well as the
initial audit shall be borne between the Parties in inverse proportion to Party’s positions with respect to such dispute,
as determined by the Audit Arbitrator. Not later than ten (10) days after such decision and in accordance with such decision, the
audited Party shall pay the additional amounts, with interest from the date originally due as provided in Section 5.9, or
the auditing Party shall reimburse the excess payments, as applicable.

 

5.13.3         Confidentiality.
The auditing Party shall treat all information subject to review under this Section 5.13 in accordance with the confidentiality
provisions of Article 7 and the Parties shall cause the Audit Arbitrator to enter into a reasonably acceptable confidentiality
agreement with the auditing Party obligating such firm to retain all such financial information in confidence pursuant to such
confidentiality agreement.

 

5.14         No
Other Compensation. Each Party hereby agrees that the terms of this Agreement fully define all consideration, compensation
and benefits, monetary or otherwise, to be paid, granted or delivered by one Party to the other Party in connection with the transactions
contemplated herein. Neither Party previously has paid or entered into any other commitment to pay, whether orally or in writing,
any of the other Party’s employees, independent contractors or agents, directly or indirectly, any consideration, compensation
or benefits, monetary or otherwise, in connection with the transaction contemplated herein.

 

ARTICLE 6

INTELLECTUAL PROPERTY

 

6.1           Ownership
of Intellectual Property.

 

6.1.1           Ownership
of Technology. As between the Parties, each Party shall own and retain all right, title, and interest in and to any
and all Inventions and Information that are conceived, discovered, developed, or otherwise made solely by or on behalf of such
Party (or its Affiliates or Sublicensees) under or in connection with this Agreement, whether or not patented or patentable, and
any and all Patents and other intellectual property rights with respect thereto.

 

    29 

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

6.1.2           Ownership
of Joint Patents and Joint Know-How. As between the Parties, the Parties shall each own an equal, undivided interest
in any and all (i) Inventions and Information that are conceived, discovered, developed or otherwise made jointly by or on
behalf of Lightlake or its Affiliates, on the one hand, and Adapt or its Affiliates or Sublicensees, on the other hand, in connection
with the work conducted under or in connection with this Agreement, whether or not patented or patentable (the “Joint
Know-How”), and (ii) Patents (the “Joint Patents”) and other intellectual property rights
with respect to the Inventions and Information described in clause (i) (together with Joint Know-How and Joint Patents, the “Joint
Intellectual Property Rights”). Each Party shall promptly disclose to the other Party in writing, and shall cause its
Affiliates, (and in the case of Adapt, its Sublicensees) to so disclose, the development, making, conception or reduction to practice
of any Joint Know-How or Joint Patents. Subject to the licenses and rights of reference granted under Sections 4.1 and 4.2,
and each Party’s exclusivity obligations in Section 4.5, each Party shall have the right to Exploit the Joint Intellectual
Property Rights without a duty of seeking consent or accounting to the other Party.

 

6.1.3           United
States Law.  The determination of whether Information and Inventions are conceived, discovered, developed, or otherwise
made by a Party for the purpose of allocating proprietary rights (including Patent, copyright or other intellectual property rights)
therein, shall, for purposes of this Agreement, be made in accordance with Applicable Law in the United States as such law exists
as of the Effective Date irrespective of where such conception, discovery, development or making occurs.

 

6.1.4           Assignment
Obligation.  Each Party shall cause all Persons who perform activities for such Party under this Agreement to be under
an obligation to assign their rights in any Inventions resulting therefrom to such Party.

 

6.2           Maintenance
and Prosecution of Lightlake Patents.

 

6.2.1           Lightlake
Right. As between the Parties, Lightlake shall have the first right, but not the obligation, to prepare, file, prosecute (including
any reissues, re-examinations, post-grant proceedings, requests for patent term extensions, supplementary protection certificates,
interferences, derivation proceedings, supplemental examinations and defense of oppositions) and maintain the Lightlake Patents.
Lightlake shall keep Adapt informed with regard to the filing, prosecution and maintenance of Lightlake Patents, including by providing
Adapt with (i) copies of material communications to and from any patent authorities regarding Lightlake Patents, and (ii) drafts
of any material filings or responses to be made to such patent authorities regarding Lightlake Patents sufficiently in advance
of submitting such filings or responses so as to allow a reasonable opportunity for Adapt to review and comment thereon. Lightlake
shall not be bound by, but shall consider in good faith, the comments of Adapt with respect to such Lightlake drafts and with respect
to strategies for filing and prosecuting the Lightlake Patents. If Adapt fails to provide its comments with respect to such filing
and prosecution of Lightlake Patents reasonably in advance of the deadline for filing or otherwise responding to the patent authorities,
Lightlake shall be free to act without consideration of Adapt’s comments.

    30 

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

6.2.2           Adapt
Right. In the event that Lightlake intends not to prepare, file, prosecute, or maintain a Lightlake Patent, Lightlake shall
provide reasonable prior written notice to Adapt of such intention (which notice shall, in any event, be given no later than ten
(10) days prior to the next deadline for any action that may be taken with respect to such Patent), and Adapt shall thereupon have
the option, in its sole discretion and at its sole cost, to assume the control and direction of the preparation, filing, prosecution,
and maintenance of such Patent on Lightlake’s behalf with respect to claims covering Products.

 

6.2.3           Costs.
Subject to Section 6.2.2, the costs of prosecution and maintenance of the Lightlake Patents shall be initially borne by
the Party conducting such prosecution and maintenance.

 

6.3           Maintenance
and Prosecution of Product Specific Patents, Adapt Applied Patents and Joint Patents.

 

6.3.1           Adapt
Right. Adapt shall have the first right, but not the obligation, to prepare, file, prosecute (including any reissues, re-examinations,
post-grant proceedings, requests for patent term extensions, supplementary protection certificates, interferences, derivation proceedings,
supplemental examinations and defense of oppositions) and maintain the Adapt Applied Patents, the Product Specific Patents and
Joint Patents worldwide, at Adapt’s cost. Adapt shall keep Lightlake informed with regard to the filing, prosecution and
maintenance of Adapt Applied Patents, Product Specific Patents and Joint Patents, including by providing Lightlake with (i) copies
of material communications to and from any patent authorities regarding Adapt Applied Patents, the Product Specific Patents and
Joint Patents, and (ii) drafts of any material filings or responses to be made to such patent authorities regarding Adapt Applied
Patents and Joint Patents sufficiently in advance of submitting such filings or responses so as to allow a reasonable opportunity
for Lightlake to review and comment thereon. Adapt shall not be bound by, but shall consider in good faith, the comments of Lightlake
with respect to such Adapt drafts and with respect to strategies for filing and prosecuting the Adapt Applied Patents, the Product
Specific Patents and the Joint Patents. If Lightlake fails to provide its comments with respect to such filing and prosecution
of Adapt Applied Patents, Product Specific Patents or Joint Patents reasonably in advance of the deadline for filing or otherwise
responding to the patent authorities, Adapt shall be free to act without consideration of Lightlake’s comments.

 

6.3.2           Lightlake
Right. In the event that Adapt intends not to prosecute or maintain a Adapt Applied Patent, Product Specific Patent or a Joint
Patent in any country in the world, Adapt shall provide reasonable prior written notice to Lightlake of such intention (which notice
shall, in any event, be given no later than ten (10) days prior to the next deadline for any action that may be taken with respect
to such Adapt Applied Patent or Joint Patent), and Lightlake shall thereupon have the option, in its sole discretion and at its
sole cost, to assume the control and direction of the prosecution and maintenance of such Adapt Applied Patent, Product Specific
Patent or Joint Patent in such country on Adapt’s behalf.

 

    31 

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

6.3.3           Costs.
Subject to Section 6.3.2, the costs of prosecution and maintenance of the Adapt Applied Patent, Product Specific Patent
or a Joint Patent shall be borne by the Party conducting such prosecution and maintenance.

 

6.4           Infringement
by Third Parties.

 

6.4.1           Notice.
Each Party shall promptly give the other written notice if it reasonably believes that any Lightlake Patent, Lightlake Know-How,
Adapt Applied Patent, Adapt Applied Know-How, Product Specific Patent, Joint Invention or Joint Patent is being infringed or misappropriated
by a Third Party, and shall provide the other Party with all available evidence supporting such belief.

 

6.4.2           Products. 
In the event of an actual or suspected infringement or misappropriation of any Lightlake Patent, Lightlake Know-How, Adapt Applied
Patent, Adapt Applied Know-How, Product Specific Patent, Joint Invention or Joint Patent by a Third Party that is conducting the
manufacture, use, sale, offer for sale or import of a Product or a product which may compete with a Product, the following shall
apply:

 

(a)          The
Party first becoming aware of such actual or suspected infringement shall promptly notify the other Party. Adapt shall have the
first right, but not the obligation, to institute and prosecute an action or proceeding to abate such infringement or misappropriation
and to resolve such matter by settlement or otherwise.

 

(b)          Adapt
agrees to notify Lightlake of its intention to bring an action or proceeding and to keep Lightlake informed of material developments
in the prosecution or settlement of such action or proceeding.  Adapt shall be responsible for all costs and expenses of any
action or proceeding that Adapt initiates and maintains. Subject to Section 6.4.3(a),  Lightlake shall cooperate fully
in any such action or proceeding at its expense by executing and making available such documents as Adapt may reasonably request. 
Lightlake may be represented by counsel of its choice in any such action or proceeding, at Lightlake’s expense, acting in
an advisory but not controlling capacity.  Subject to Section 6.4.3, the prosecution, settlement, or abandonment of
any infringement action or proceeding brought by Adapt shall be at Adapt’s sole discretion.

 

(c)          If
Adapt fails or elects not to exercise such first right within sixty (60) days of evidence of an actual infringement, Lightlake
shall have the right, at its discretion, to institute and prosecute an action or proceeding to abate such infringement and to resolve
such matter by settlement or otherwise.  Lightlake shall keep Adapt informed of material developments in the prosecution
or settlement of such action or proceeding.  Lightlake shall be responsible for all costs and expenses of any action
or proceeding that Lightlake initiates.  Adapt shall cooperate fully by joining as a party plaintiff if required to do so
by law to maintain such action and by executing and making available such documents as Lightlake may reasonably request. 
Adapt may be represented by counsel in any such action or proceeding at its own expense.  The prosecution, settlement, or
abandonment of any infringement action or proceeding brought by Lightlake shall be at Lightlake’s sole discretion; provided,
that Lightlake may not enter into any settlement that requires Adapt or its Affiliates or Sublicensees to pay any sum of money,
subjects Adapt or its Affiliates or Sublicensees to any injunctive relief or other equitable remedies, or otherwise adversely affects
Adapt’s rights or interests in the applicable Lightlake Patent, Lightlake Know-How, Adapt Applied Patent, Adapt Applied Know-How,
Product Specific Patent, Joint Invention or Joint Patent or with respect to a Product without Adapt’s written consent, which
consent shall not be unreasonably withheld.

 

    32 

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

6.4.3           Cooperation;
Damages.

 

(a)          If
one Party brings any suit, action or proceeding under Section 6.4.2, the other Party agrees to be joined as party plaintiff
if necessary to prosecute the suit, action or proceeding and to give the first Party reasonable authority to file and prosecute
the suit, action or proceeding at the first Party’s cost; provided, however, that neither Party will be required to transfer
any right, title or interest in or to any property to the other Party or any other party to confer standing on a Party hereunder.

 

(b)          The
Party not pursuing the suit, action or proceeding hereunder will provide reasonable assistance to the other Party, including by
providing access to relevant documents and other evidence and making its employees available, subject to the other Party’s
reimbursement of any out-of-pocket costs and expenses incurred by the non-enforcing or defending Party in providing such assistance.

 

(c)          Adapt
shall not, without the prior written consent of Lightlake (in its sole discretion), enter into any compromise or settlement relating
to any claim, suit or action that it brought under Section 6.4.2 involving a Lightlake Patent that admits the invalidity
or unenforceability of such Lightlake Patent or requires Lightlake to pay any sum of money, or otherwise adversely affects the
rights of Lightlake with respect to such Lightlake Patents or Lightlake’s rights hereunder (including the rights to receive
payments).

 

(d)          Any
settlements, damages or other monetary awards (a “Recovery”) recovered pursuant to a suit, action or proceeding
brought pursuant to Section 6.4.2 will be allocated first to the costs and expenses of the Party taking such action, and
second, to the costs and expenses (if any) of the other Party, with any remaining amounts (if any) to be allocated as follows:
(i) to the extent that such Recovery is a payment for lost sales of Product, any remaining amount will be paid to Adapt but will
be considered Net Sales for such Product during the Calendar Quarter in which such amounts are received solely for the purposes
of calculating royalties pursuant to Section 5.4 and (ii) in the event such Recovery relates to the Product generally, all
remaining amounts shall be payable to the Party taking such action.

 

6.4.4           Other
Infringement and Defense of Lightlake Patents.  For clarity, with respect to any and all infringement or defense of
any Lightlake Patent with respect to products other than Products, subject to Section 6.6, Lightlake (or its designee) shall
have the sole and exclusive right to bring an appropriate suit or other action against any Person engaged in such infringement
or defense of any such Lightlake Patents in its sole discretion and Adapt shall have no rights with respect thereto.

 

    33 

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

6.5           Patent
Listings. Adapt shall have the sole right to make all filings with Regulatory Authorities with respect to Product Specific
Patents, Adapt Applied Patents and Lightlake Patents (subject to Section 6.6) and Joint Patents in relation to the Product, including
as required or allowed (i) in the United States, in the FDA’s Orange Book, and (ii) outside the United States, under
the national implementations of Article 10.1(a)(iii) of Directive 2001/EC/83 or other international equivalents; provided
that Adapt shall consult with Lightlake prior to making any such filing and consider Lightlake’s comments on such filing
in good faith.

 

6.6           Coordination
In Respect of Lightlake Patents. Notwithstanding anything herein, in the event that a Party reasonably believes, in its sole
discretion, that there is a risk that any enforcement action or proceeding in respect of any Lightlake Patent, or any listing of
a Lightlake Patent in the FDA’s Orange Book, in respect of a Product or any other product, would restrict the scope, or adversely
affect the enforceability or validity, of such Lightlake Patent in relation to such Party’s rights in such Lightlake Patent,
no listing, suit, action, proceeding or strategic decision (including decisions concerning jurisdiction, venue, joinder, causes
of action (including patent infringement claims and enforcement actions), claims, defenses, substantive motions, claim construction,
tutorials, experts, covenants-not-to-sue, dismissal, settlement, trial and/or appeal) may be made by the Party controlling (or
having the right to control) such action or proceeding or listing without first notifying the other Party of such intended action,
consulting in good faith with the other Party with respect thereto and reasonably considering the other Party’s views with
respect to such action and, in the case of Adapt, its Affiliates and Sublicensees, without the prior written consent of Lightlake,
which consent shall not be unreasonably withheld, conditioned, or delayed.

 

6.7           Patent
Marking. Adapt shall mark the Product marketed and sold by Adapt (or its Affiliate or distributor) hereunder with appropriate
patent numbers or indicia at Lightlake’s request.

 

ARTICLE 7

CONFIDENTIALITY AND NON-DISCLOSURE

 

7.1           Confidentiality
Obligations. At all times during the Term and for a period of ten (10) years following termination or expiration hereof
in its entirety, each Party shall, and shall cause its Affiliates, and its and their respective officers, directors, employees
and agents to, keep confidential and not publish or otherwise disclose to a Third Party and not use, directly or indirectly, for
any purpose, any Confidential Information furnished or otherwise made known to it, directly or indirectly, by the other Party,
except to the extent such disclosure or use is expressly permitted by the terms of this Agreement or is reasonably necessary or
useful for the performance of a Party’s obligations, or the exercise of a Party’s rights, under this Agreement. Confidential
Information disclosed under the Existing CDAs shall be considered Confidential Information disclosed under this Agreement and subject
to the terms and conditions of this Agreement. Notwithstanding the foregoing, but to the extent the receiving Party can demonstrate
by documentation or other competent proof, the confidentiality and non-use obligations under this Section 7.1 with respect
to any Confidential Information shall not include any information that:

 

    34 

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

7.1.1           has
been published by a Third Party or is or hereafter becomes part of the public domain by public use, publication, general knowledge
or the like through no wrongful act, fault or negligence on the part of the receiving Party;

 

7.1.2           has
been in the receiving Party’s possession prior to disclosure by the disclosing Party without any obligation of confidentiality
with respect to such information; provided that the foregoing exception shall not apply with respect to Joint Know-How;

 

7.1.3           is
subsequently received by the receiving Party from a Third Party without restriction and without breach of any agreement between
such Third Party and the disclosing Party; or

 

7.1.4           has
been independently developed by or for the receiving Party without reference to, or use or disclosure of the disclosing Party’s
Confidential Information; provided that the foregoing exception shall not apply with respect to Joint Know-How.

 

Specific aspects or details of Confidential
Information shall not be deemed to be within the public domain or in the possession of the receiving Party merely because the Confidential
Information is embraced by more general information in the public domain or in the possession of the receiving Party. Further,
any combination of Confidential Information shall not be considered in the public domain or in the possession of the receiving
Party merely because individual elements of such Confidential Information are in the public domain or in the possession of the
receiving Party unless the combination and its principles are in the public domain or in the possession of the receiving Party.
Joint Know-How shall be considered the Confidential Information of both Parties.

 

7.2           Permitted
Disclosures. Each Party may disclose Confidential Information to the extent that such disclosure is:

 

7.2.1           in
the reasonable opinion of the receiving Party’s legal counsel, required to be disclosed pursuant to Applicable Law or made
in response to a valid order of a court of competent jurisdiction or other supra-national, federal, national, regional, state,
provincial and local governmental or regulatory body of competent jurisdiction, including by reason of filing with securities regulators;
provided, however, that the receiving Party, to the extent practicable and legally permissible, shall first have given prompt written
notice (and to the extent practicable and legally permissible, at least five (5) Business Days’ notice) to the disclosing
Party and given the disclosing Party a reasonable opportunity to take whatever action it deems necessary to protect its Confidential
Information (for example, quash such order or to obtain a protective order or confidential treatment requiring that the Confidential
Information and documents that are the subject of such order be held in confidence by such court or regulatory body or, if disclosed,
be used only for the purposes for which the order was issued). In the event that no protective order or other remedy is sought
or obtained, or the disclosing Party waives compliance with the terms of this Agreement, receiving Party shall furnish only that
portion of Confidential Information which receiving Party is advised by counsel is legally required to be disclosed;

 

    35 

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

7.2.2           made
by or on behalf of the receiving Party to Regulatory Authorities as required in connection with any filing, application or request
for Regulatory Approval in accordance with the terms of this Agreement; provided, however, that reasonable measures
shall be taken to assure confidential treatment of such information to the extent practicable and consistent with Applicable Law;

 

7.2.3           made
to its (actual or potential) Sublicensees, other Persons who have been granted rights to Exploit Products in accordance with this
Agreement, acquirers, financing sources, investors or permitted assignees under Section 11.3 and to their financial and
legal advisors who have a need to know such Confidential Information in connection with any such sublicense, financing, investment,
acquisition or assignment; provided that any such recipient of such Confidential Information agrees to be bound by the confidentiality
and non-use restrictions contemplated hereby; provided, further that the Party making such disclosure shall remain responsible
for any failure by any such Person to treat such Confidential Information as required under this Article 7.

 

7.2.4           made
to its or its Affiliates’ financial and legal advisors who have a need to know such Confidential Information, and in the
case of Lightlake, any Person who holds or will hold in the future any interest in any of Lightlake’s products, and, in each
case, are either under professional codes of conduct giving rise to expectations of confidentiality and non-use or under written
agreements of confidentiality and non-use, in each case, at least as restrictive as those set forth in this Agreement; provided
that the receiving Party shall remain responsible for any failure by such financial and legal advisors and other Persons contemplated
by this Section 7.2.4, to treat such Confidential Information as required under this Article 7.

 

7.3           Use
of Name. Except as expressly provided herein, neither Party shall mention or otherwise use the name, logo, or Trademark of
the other Party or any of its Affiliates (or any abbreviation or adaptation thereof) in any publication, press release, marketing
and promotional material, or other form of publicity without the prior written approval of such other Party in each instance. The
restrictions imposed by this Section 7.3 shall not prohibit either Party from making any disclosure identifying the other
Party that are permitted pursuant to Section 7.2 or Section 7.4.

 

7.4           Public
Announcements. The Parties have agreed upon the content of press releases which shall be issued substantially in the form attached
hereto as Schedule 7.4, the release of which the Parties shall coordinate in order to accomplish such release promptly upon
execution of this Agreement. Except as contemplated by Section 7.5 or as otherwise agreed by the Parties, neither Party
shall issue any other public announcement, press release, or other public disclosure regarding this Agreement or its subject matter
without the other Party’s prior written consent, except for any such disclosure that is, in the opinion of the disclosing
Party’s counsel, required by Applicable Law or the rules of a stock exchange on which the securities of the disclosing Party
are listed or for information which has previously been made public. In the event a Party is, in the opinion of its counsel, required
by Applicable Law or the rules of a stock exchange on which its securities are listed to make such a public disclosure, such Party
shall submit the proposed disclosure in writing to the other Party as far in advance as reasonably practicable (and in no event
less than three (3) Business Days prior to the anticipated date of disclosure) so as to provide a reasonable opportunity to comment
thereon and such required Party shall consider all comments from such other Party in good faith.

 

    36 

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

7.5           Publications.
Each Party recognizes that the publication of papers regarding results of and other information regarding activities under this
Agreement may be beneficial to the Development and Commercialization of Products. Accordingly, Adapt and its Affiliates and Sublicensees
shall have the right to publish or present or permit the publication or presenting of papers and presentations that contain clinical
data regarding, or pertain to results of clinical testing of, Products (each, a “Publication”); provided, however,
that such publications do not contain the Confidential Information of Lightlake and Lightlake shall be provided with a copy of
any such Publication in advance of public publication or presentation thereof and Adapt shall consider in good faith any comments
Lightlake may have with respect thereto. For clarity, Lightlake Confidential Information shall include all Lightlake Information
existing on the Effective Date other than the Pharmacokinetics Data.

 

7.6           Return
of Confidential Information. Upon the effective date of the termination of this Agreement for any reason, either Party
may request in writing, and the other Party shall either, with respect to Confidential Information to which such first Party does
not retain rights under the surviving provisions of this Agreement: (i) promptly destroy all copies of such Confidential Information
in the possession of the other Party and confirm such destruction in writing to the requesting Party; or (ii) promptly deliver
to the requesting Party, at the other Party’s expense, all copies of such Confidential Information in the possession of the
other Party; provided, however, the other Party shall be permitted to retain one (1) copy of such Confidential Information
for the sole purpose of performing any continuing obligations hereunder or for archival purposes. Notwithstanding the foregoing,
such other Party also shall be permitted to retain such additional copies of or any computer records or files containing such Confidential
Information that have been created solely by such Party’s automatic archiving and back-up procedures, to the extent created
and retained in a manner consistent with such other Party’s standard archiving and back-up procedures, but not for any other
use or purpose.

 

7.7           Survival.
All Confidential Information shall continue to be subject to the terms of this Agreement for the period set forth in Section
7.1.

 

ARTICLE 8

REPRESENTATIONS AND WARRANTIES

 

8.1           Mutual
Representations and Warranties. Lightlake and Adapt each represents and warrants to the other, as of the Effective Date, and
covenants, as follows:

 

8.1.1           Organization.
 It is 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.

 

8.1.2           Authorization.
The execution and delivery of this Agreement and the performance by it of its obligations contemplated hereby have been duly authorized
by all necessary corporate action, and do not violate (i) such Party’s charter documents, bylaws, or other organizational
documents, (ii) in any material respect, any agreement, instrument, or contractual obligation to which such Party is bound,
(iii) any requirement of any Applicable Law, or (iv) any order, writ, judgment, injunction, decree, determination, or
award of any court or governmental agency presently in effect applicable to such Party.

 

    37 

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

8.1.3           Binding
Agreement. This Agreement is a legal, valid, and binding obligation of such Party enforceable against it in accordance with
its terms and conditions, subject to the effects of bankruptcy, insolvency, or other laws of general application affecting the
enforcement of creditor rights, judicial principles affecting the availability of specific performance, and general principles
of equity (whether enforceability is considered a proceeding at law or equity).

 

8.1.4           Consents
and Approvals. No consent, approval, waiver, order or authorization of, or registration, declaration or filing with, any Third
Party is required in connection with the execution, delivery and performance of this Agreement by such Party or the performance
by such Party of its obligations contemplated hereby or thereby.

 

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

 

8.2           Additional
Representations and Warranties of Lightlake. Lightlake further represents and warrants to Adapt, as of the Effective Date,
and covenants, as follows:

 

8.2.1           Lightlake
has the right to grant the licenses specified herein.

 

8.2.2           Lightlake
is the sole and exclusive owner of the entire right, title and interest in the Product Specific Patents and the Lightlake Know-How.
Such rights are not subject to any Liens in favor of, or claims of ownership by, any Third Party. True and correct copies of the
complete file wrapper and other documents and materials relating to the prosecution, defense, maintenance, validity and enforceability
of the Product Specific Patents, as amended through the date hereof, have been provided to Adapt prior to the date first above
written. No Lightlake Patents exist as of the date hereof.

 

8.2.3           The
Product Specific Patents are being diligently prosecuted in each country in respect of which applications have been made in the
respective patent offices in accordance with all Applicable Laws and regulations. The Product Specific Patents have been filed
and maintained properly and correctly and all applicable fees have been paid on or before the due date for payment.

 

8.2.4           To
Lightlake’s knowledge, the Exploitation by Adapt and its Affiliates and Sublicensees hereunder of the Products will not infringe
any Patent or other intellectual property or proprietary right of any Person.

 

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8.2.5           The
conception, development and reduction to practice of the Product Specific Patents and Lightlake Know-How existing as of the Effective
Date have not constituted or involved the misappropriation of trade secrets or other rights or property of any Person. There are
no claims, judgments or settlements against or amounts with respect thereto owed by Lightlake or any of its Affiliates relating
to the existing Regulatory Filings, the Product Specific Patents or the Lightlake Know-How.

 

8.2.6           Lightlake
Controls all Information, other than Identifiable Private Information (as defined in the NIDA Agreement), generated in relation
to the Development activities contemplated by the NIDA Agreement.

 

8.2.7           To
its knowledge, Lightlake has conducted, and its contractors and consultants have conducted, all Development with respect to the
Product that it has conducted prior to the Effective Date in accordance with good laboratory practice and good clinical practices,
as applicable and defined by the FDA, and Applicable Law.

 

8.2.8           Neither
Lightlake nor any of its Affiliates, nor any of its or its Affiliates’ directors or officers has been debarred or is subject
to debarment and neither Lightlake nor any of its Affiliates will use in any capacity, in connection with the services to be performed
under this Agreement, any Person who has been debarred pursuant to Section 306 of the FFDCA or who is the subject of a conviction
described in such section. Lightlake shall inform Licensee in writing immediately if it or any Person who is performing services
hereunder is debarred or is the subject of a conviction described in Section 306 or if any action, suit, claim, investigation or
legal or administrative proceeding is pending or, to the best of Lightlake’s knowledge, is threatened, relating to the debarment
or conviction of Lightlake or any Person performing services on behalf of Lightlake hereunder.

 

8.2.9           To
Lightlake’s knowledge, no Person is infringing or threatening to infringe the Product Specific Patents or misappropriating
or threatening to misappropriate the Lightlake Know-How.

 

8.2.10         Schedule
8.2.10 hereto includes a list of all agreements with Third Parties related to the Products, including agreements related to
the Development and Manufacture of the Products, in each case, that are in effect as of the Effective Date or that have post-termination
obligations (other than solely obligations to keep information confidential or to restrict use thereof after termination) for Lightlake
or the Third Party that are in effect as of the Effective Date (collectively, the “Relevant Contracts”). Lightlake
has disclosed and made available to Adapt full and complete copies of all such Relevant Contracts to Adapt. Lightlake represents
and warrants to Adapt that each Relevant Contract is a legal, valid, binding and enforceable agreement of Lightlake or one of its
Affiliates, as applicable, and is in full force and effect, and neither Lightlake nor any of its Affiliates or, any other party
thereto is in default or breach under the terms of, or has provided any notice of any intention to terminate or modify, any such
Relevant Contract, and, no event or circumstance has occurred that, with notice or lapse of time or both, would constitute a breach
thereof or a default thereunder or would result in a termination, modification, acceleration or vesting of any rights or obligations
or loss of benefits thereunder.

 

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8.2.11         Lightlake
has made available to Adapt all material Regulatory Documentation owned or possessed by Lightlake regarding or related to the Products.
Lightlake has prepared, maintained or retained all material Regulatory Documentation required to be maintained or reported pursuant
to and in accordance with the applicable requirements of good laboratory practices and good clinical practices, as applicable,
as defined by the FDA, to the extent required, and Applicable Law, and such Regulatory Documentation does not contain any materially
false or misleading statements.

 

8.2.12         Lightlake
has disclosed to Adapt all material information known to Lightlake and its Affiliates with respect to the Products, including with
respect to the safety and efficacy thereof.

 

8.3           DISCLAIMER
OF WARRANTIES. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH HEREIN, NEITHER PARTY MAKES ANY REPRESENTATIONS OR GRANTS ANY WARRANTIES,
EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, AND EACH PARTY SPECIFICALLY DISCLAIMS ANY OTHER
WARRANTIES, WHETHER WRITTEN OR ORAL, OR EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY, OR FITNESS FOR
A PARTICULAR USE OR PURPOSE OR ANY WARRANTY AS TO THE VALIDITY OF ANY PATENTS OR THE NON-INFRINGEMENT OF ANY INTELLECTUAL PROPERTY
RIGHTS OF THIRD PARTIES.

 

ARTICLE 9

INDEMNITY

 

9.1           Indemnification
of Lightlake. Adapt shall indemnify Lightlake, its Affiliates and its and their respective directors, officers, employees,
and agents (“Lightlake Indemnitees”), and defend and save each of them harmless, from and against any and all
losses, damages, liabilities, penalties, costs, and expenses (including attorneys’ fees and expenses) (collectively, “Losses”)
in connection with any and all suits, investigations, claims, or demands of Third Parties (collectively, “Third Party
Claims”) incurred by or rendered against the Lightlake Indemnitees arising from or occurring as a result of: (i) the
breach by Adapt of this Agreement, (ii) the gross negligence or willful misconduct on the part of Adapt or its Affiliates
or Sublicensees or its or their distributors or contractors or its or their respective directors, officers, employees, and agents
in performing its or their obligations under this Agreement, (iii) the Exploitation by Adapt or any of its Affiliates or Sublicensees
or its or their distributors or contractors of any Product, or (iv) the breach of an Assigned Agreement by any of Adapt or its
Affiliates or Sublicensees or subcontractors or any of their successors or assigns after the Effective Date, except (in each case)
to the extent Lightlake has an obligation to indemnify Adapt Indemnities pursuant to Section 9.2 for such Losses and Third
Party Claims.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

9.2           Indemnification
of Adapt. Lightlake shall indemnify Adapt, its Affiliates and its and their respective directors, officers, employees,
and agents (the “Adapt Indemnitees”), and defend and save each of them harmless, from and against any and all
Losses in connection with any and all Third Party Claims incurred by or rendered against the Adapt Indemnitees arising from or
occurring as a result of: (i) the breach by Lightlake of this Agreement, (ii) the gross negligence or willful misconduct on
the part of Lightlake or its Affiliates or its or their respective directors, officers, employees, and agents in performing its
obligations under this Agreement, (iii) any claim by any current or former Lightlake shareholder, investor or contributor that
any Adapt Indemnitee or any Sublicensee owes such Person any compensation in relation to the Exploitation of the Products or the
rights granted hereunder, (iv) the pharmacokinetics study ongoing as of the Effective Date in respect of a Product, or (v) Lightlake’s
or its Affiliate’s or subcontractor’s violation of any Applicable Law, breach of any Relevant Contract, or gross negligence
or willful misconduct, in relation to the Exploitation of Products prior to the Effective Date, except (in each case) to the extent
Adapt has an obligation to indemnify Lightlake Indemnities pursuant to Section 9.1 for such Losses and Third Party Claims.

 

9.3           Notice
of Claim. All indemnification claims in respect of a Party, its Affiliates, or their respective directors, officers, employees
and agents shall be made solely by such Party to this Agreement (the “Indemnified Party”). The Indemnified
Party shall give the indemnifying Party prompt written notice (an “Indemnification Claim Notice”)
of any Losses or discovery of fact upon which such Indemnified Party intends to base a request for indemnification under this Article
9, but in no event shall the indemnifying Party be liable for any Losses that result from any delay in providing such notice.
Each Indemnification Claim Notice must contain a description of the claim and the nature and amount of such Loss (to the extent
that the nature and amount of such Loss is known at such time). The Indemnified Party shall furnish promptly to the indemnifying
Party copies of all papers and official documents received in respect of any Losses and Third Party Claims.

 

9.4           Control
of Defense.

 

9.4.1           In
General. Except as otherwise contemplated by Article 6, at its option, the indemnifying Party may assume the
defense of any Third Party Claim by giving written notice to the Indemnified Party within thirty (30) days after the indemnifying
Party’s receipt of an Indemnification Claim Notice. The assumption of the defense of a Third Party Claim by the indemnifying
Party shall not be construed as an acknowledgment that the indemnifying Party is liable to indemnify the Indemnified Party in respect
of the Third Party Claim, nor shall it constitute a waiver by the indemnifying Party of any defenses it may assert against the
Indemnified Party’s claim for indemnification. Upon assuming the defense of a Third Party Claim, the indemnifying Party may
appoint as lead counsel in the defense of the Third Party Claim any legal counsel selected by the indemnifying Party. In the event
the indemnifying Party assumes the defense of a Third Party Claim, the Indemnified Party shall immediately deliver to the indemnifying
Party all original notices and documents (including court papers) received by the Indemnified Party in connection with the Third
Party Claim. Should the indemnifying Party assume the defense of a Third Party Claim, except as provided in Section 9.4.2,
the indemnifying Party shall not be liable to the Indemnified Party for any legal expenses subsequently incurred by such Indemnified
Party in connection with the analysis, defense or settlement of the Third Party Claim unless specifically requested in writing
by the indemnifying Party. In the event that it is ultimately determined that the indemnifying Party is not obligated to indemnify,
defend or hold harmless the Indemnified Party from and against the Third Party Claim, the Indemnified Party shall reimburse the
indemnifying Party for any and all costs and expenses (including attorneys’ fees and costs of suit) and any Losses incurred
by the indemnifying Party in its defense of the Third Party Claim.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

9.4.2           Right
to Participate in Defense. Without limiting Section 9.4.1, any Indemnified Party shall be entitled to participate in,
but not control, the defense of such Third Party Claim and to employ counsel of its choice for such purpose; provided, however,
that such employment shall be at the Indemnified Party’s own expense unless (i) the employment thereof has been specifically
authorized by the indemnifying Party in writing, (ii) the indemnifying Party has failed to assume the defense and employ counsel
in accordance with Section 9.4.1 (in which case the Indemnified Party shall control the defense), or (iii) the interests
of the Indemnified Party and the indemnifying Party with respect to such Third Party Claim are sufficiently adverse to prohibit
the representation by the same counsel of both Parties under Applicable Law or ethical rules.

 

9.4.3           Settlement.
Except as otherwise contemplated by Article 6, with respect to any Losses relating solely to the payment of money damages
in connection with a Third Party Claim and that shall not result in the Indemnified Party’s becoming subject to injunctive
or other relief, and as to which the indemnifying Party shall have acknowledged in writing the obligation to indemnify the Indemnified
Party hereunder, the indemnifying Party shall have the sole right to consent to the entry of any judgment, enter into any settlement
or otherwise dispose of such Loss, on such terms as the indemnifying Party, in its sole discretion, shall deem appropriate. With
respect to all other Losses in connection with Third Party Claims, where the indemnifying Party has assumed the defense of the
Third Party Claim in accordance with Section 9.4.1, the indemnifying Party shall have authority to consent to the entry
of any judgment, enter into any settlement or otherwise dispose of such Loss; provided it obtains the prior written consent
of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed). If the indemnifying Party
does not assume and conduct the defense of a Third Party Claim as provided above, the Indemnified Party may defend against such
Third Party Claim; provided that the Indemnified Party shall not settle any Third Party Claim without the prior written
consent of the indemnifying Party, not to be unreasonably withheld, conditioned or delayed.

 

9.4.4           Cooperation.
Regardless of whether the indemnifying Party chooses to defend or prosecute any Third Party Claim, the Indemnified Party shall,
and shall cause each indemnitee to, cooperate in the defense or prosecution thereof and shall furnish such records, information
and testimony, provide such witnesses and attend such conferences, discovery proceedings, hearings, trials and appeals as may be
reasonably requested in connection therewith. Such cooperation shall include access during normal business hours afforded to the
indemnifying Party to, and reasonable retention by the Indemnified Party of, records and information that are reasonably relevant
to such Third Party Claim, and making Indemnified Parties and other employees and agents available on a mutually convenient basis
to provide additional information and explanation of any material provided hereunder, and the indemnifying Party shall reimburse
the Indemnified Party for all its reasonable out-of-pocket expenses in connection therewith.

 

9.4.5           Expenses.
Except as provided above, the costs and expenses, including fees and disbursements of counsel, incurred by the Indemnified Party
in connection with any Third Party Claim shall be reimbursed on a Calendar Quarter basis by the indemnifying Party, without prejudice
to the indemnifying Party’s right to contest the Indemnified Party’s right to indemnification and subject to refund
in the event the indemnifying Party is ultimately held not to be obligated to indemnify the Indemnified Party.

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9.5           Special,
Indirect, and Other Losses. EXCEPT IN THE EVENT OF A PARTY’S BREACH OF ITS OBLIGATIONS UNDER ARTICLE 7, AND EXCEPT
TO THE EXTENT ANY SUCH DAMAGES ARE REQUIRED TO BE PAID TO A THIRD PARTY AS PART OF A CLAIM FOR WHICH A PARTY PROVIDES INDEMNIFICATION
UNDER THIS ARTICLE 9, NEITHER PARTY NOR ANY OF ITS AFFILIATES SHALL BE LIABLE FOR INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY,
PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF PROFITS OR BUSINESS INTERRUPTION, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY,
WHETHER IN CONTRACT, TORT, NEGLIGENCE, BREACH OF STATUTORY DUTY OR OTHERWISE IN CONNECTION WITH OR ARISING IN ANY WAY OUT OF THE
TERMS OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.

 

9.6           Insurance.
Adapt shall maintain insurance, including clinical trials insurance and product liability insurance, which is consistent with
normal business practices of similarly situated companies at all times during which the Product is being clinically tested in human
subjects or commercially distributed or sold, as applicable, by Adapt pursuant to this Agreement, and the clinical trials insurance
coverage shall, prior to the First Commercial Sale of a Product, in no event be less than Five Million Dollars ($5,000,000) per
loss occurrence and Five Million Dollars ($5,000,000) in the aggregate, and product liability insurance coverage shall, after such
First Commercial Sale, in no event be less than Ten Million Dollars ($10,000,000) per loss occurrence and Ten Million Dollars ($10,000,000)
in the aggregate. It is understood that such insurance shall not be construed to create a limit of Adapt’s liability with
respect to its indemnification obligations under this Article 9. Notwithstanding the foregoing, Adapt shall have no obligation
to maintain any insurance covering the pharmacokinetics study ongoing as of the Effective Date in respect of a Product or any liabilities
relating thereto.

 

ARTICLE 10

TERM AND TERMINATION

 

10.1         Term.
This Agreement shall commence on the Effective Date and, unless earlier terminated in accordance herewith, shall continue in
force and effect until terminated in accordance with this Article 10 (such period, the “Term”).

 

10.2         Adapt
Termination for Convenience. Adapt shall have the right to terminate this Agreement in its sole discretion, either in
its entirety or in respect of one or more countries, at any time by providing sixty (60) days prior written notice to Lightlake.

 

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10.3         Termination
for Material Breach. If either Party (the “Non-Breaching Party”) believes that the other Party (the “Breaching
Party”) has materially breached one or more of its obligations under this Agreement, then the Non-Breaching Party may
deliver notice of such material breach to the Breaching Party specifying the nature of the alleged breach in reasonable detail
(a “Default Notice”). Thereafter, the Non-Breaching Party shall have the right to terminate this Agreement if
the breach asserted in such Default Notice has not been cured within sixty (60) days after such Default Notice. Notwithstanding
the foregoing, (i) if such material breach, by its nature, cannot be remedied within such sixty (60) day cure period, but can be
remedied over a longer period not expected to exceed one hundred and fifty (150) days, then such sixty (60) day period shall be
extended for up to an additional ninety (90) days provided that the Breaching Party provides the Non-Breaching Party with a reasonable
written plan for curing such material breach and uses Commercially Reasonable Efforts to cure such material breach in accordance
with such written plan and (ii) if such material breach cannot be cured, but the effects of such material breach are not such that
the Non-Breaching Party would be deprived of the material benefits the Non-Breaching Party would reasonably be expected to derive
from this Agreement in the absence of such material breach, then the Non-Breaching Party shall not be entitled to terminate this
Agreement on the basis of such material breach unless the Breaching Party has previously committed a substantially similar material
breach of this Agreement. For clarity, a breach of Section 3.2.3 of this Agreement shall not, notwithstanding anything herein,
fall within the exception in subpart (ii) of the immediately preceding sentence.

 

10.4         Additional
Termination by Lightlake for Patent Challenge. In the event that Adapt or any of its Affiliates or Commercial Sublicensees,
institutes, prosecutes, or otherwise participates in (or knowingly and intentionally aids any Third Party in instituting, prosecuting,
or participating in), at law or in equity or before any administrative or regulatory body, including the U.S. Patent and Trademark
Office or its foreign counterparts, any claim, demand, action, or cause of action for declaratory relief, damages, or any other
remedy, or for an enjoinment, injunction, or any other equitable remedy, including any interference, re-examination, opposition,
or any similar proceeding, alleging that any claim in a Lightlake Patent is invalid, unenforceable, or otherwise not patentable
or would not be infringed by Adapt’s activities absent the rights and licenses granted hereunder, Lightlake shall have the
right to terminate this Agreement in its entirety, including the rights of any Sublicensees, upon written notice to Adapt, unless
Adapt withdraws or terminates the same, or terminates its agreement with such or Commercial Sublicensee, within ten (10) days after
receipt of notice from Lightlake referencing this Section 10.4.

 

10.5         Termination
for Insolvency. In the event that either Party (i) files for protection under bankruptcy or insolvency laws, (ii) makes
an assignment for the benefit of creditors, (iii) appoints or suffers appointment of a receiver or trustee over substantially
all of its property that is not discharged within ninety (90) days after such filing, (iv) proposes a written agreement of
composition or extension of its debts, (v) proposes or is a party to any dissolution or liquidation, (vi) files a petition
under any bankruptcy or insolvency act or has any such petition filed against that is not discharged within sixty (60) days of
the filing thereof, then the other Party may terminate this Agreement in its entirety effective immediately upon written notice
to such Party.

 

10.6         Effects
of Termination. In the event of a termination of this Agreement in its entirety by Lightlake pursuant to Sections
10.3 and 10.4 or by Adapt pursuant to Section 10.2:

 

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10.6.1           all
rights and licenses granted by Lightlake hereunder shall immediately terminate;

 

10.6.2           Adapt
shall, and hereby does effective as of the effective date of termination, grant Lightlake an exclusive license, with the right
to grant multiple tiers of sublicenses, under the Adapt Applied Patents, Adapt Applied Know-How, and Adapt’s rights under
the Joint Patents and Joint Know-How to Exploit Products;

 

10.6.3           Adapt
shall, and hereby does, effective as of the effective date of termination, assign to Lightlake at Adapt’s expense, all of
its right, title, and interest in and to all Regulatory Approvals applicable to any Product, and all Regulatory Documentation specific
to such Regulatory Approvals then owned by Adapt or any of its Affiliates, and shall use Commercially Reasonable Efforts to cause
any and all Sublicensees to assign to Lightlake any such Regulatory Approvals and related Regulatory Documentation then owned by
such Sublicensee;

 

10.6.4           Adapt
shall, and hereby does effective as of the effective date of termination, grant Lightlake an exclusive, license and right of reference,
with the right to grant multiple tiers of sublicenses and further rights of reference, under all Regulatory Documentation (including
any Regulatory Approvals) then owned or Controlled by Adapt or any of its Affiliates that are not assigned to Lightlake pursuant
to Section 10.6.3 above that are necessary or useful for Lightlake or any of its Affiliates or sublicensees to Exploit any
Product and any improvement to any of the foregoing, as such Regulatory Documentation exists as of the effective date of such termination
of this Agreement and Adapt shall use Commercially Reasonable Efforts to cause its Commercial Sublicensees to grant comparable
rights under all Regulatory Documentation (including any Regulatory Approvals) then owned or Controlled by such Commercial Sublicensees;

 

10.6.5           at
Lightlake’s request, assign to Lightlake all right, title, and interest of Adapt in each Product Trademark at Adapt’s
expense; and

 

10.6.6           at
Lightlake’s request, assign to Lightlake all right, title, and interest in and to the Development Data that Adapt is not
precluded from disclosing or assigning to Lightlake pursuant to the terms of any applicable agreement with a Third Party; provided,
however, that Adapt shall use Commercially Reasonable Efforts (which shall not include any obligation to expend money) to obtain
the consent of the applicable Third Party for such disclosure and/or assignment in the event that Adapt is so precluded.

 

10.7         Transition
Assistance. 

 

10.7.1           In
the event of a termination of this Agreement in its entirety by Lightlake pursuant to Sections 10.3 and 10.4 or by
Adapt pursuant to Section 10.2, Adapt shall:

 

(a)          cooperate
with Lightlake and notify the applicable Regulatory Authorities and take any other action reasonably necessary to effect the transfer
of the Regulatory Documentation set forth in Section 10.6.3;

 

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(b)          unless
expressly prohibited by any Regulatory Authority, at Lightlake’s written request, transfer control to Lightlake of all clinical
studies being conducted by Adapt as of the effective date of termination and continue to conduct such clinical studies, at Adapt’s
cost, for up to six (6) weeks to enable such transfer to be completed without interruption of any such clinical study except if
this Agreement is terminated by Adapt pursuant to Section 10.3; in which case such expense shall be borne by Lightlake;
provided that (A) Lightlake shall not have any obligation to continue any clinical study unless required by Applicable Law,
and (B) with respect to each clinical study for which such transfer is expressly prohibited by the applicable Regulatory Authority,
if any, Adapt shall continue to conduct such clinical study to completion, at Adapt’s cost; except if this Agreement is terminated
by Adapt pursuant to Section 10.3; in which case such cost shall be borne by Lightlake;

 

(c)          at
Lightlake’s request, assign (or cause its Affiliates to assign) to Lightlake any or all agreements with any Third Party with
respect to the conduct of pre-clinical development activities or clinical studies for the Products, including agreements with contract
research organizations, clinical sites, and investigators, unless, with respect to any such agreement, such agreement expressly
prohibits such assignment, in which case Adapt shall cooperate with Lightlake in reasonable respects to secure the consent of the
applicable Third Party to such assignment; and Lightlake shall assume all ongoing obligations under all such contracts so assigned;

 

(d)          at
Lightlake’s written request, Adapt shall assign to Lightlake any Third Party contracts for the Manufacture of Products that
may be assigned without the counterparty’s consent or, in the case of any such contract that cannot be so assigned without
consent, Adapt shall use Commercially Reasonable Efforts (which shall not include any obligation to expend money) to obtain any
requisite consent for such assignment and shall assign such contract to Lightlake upon receipt of such consent, and, in the case
of each such assignment, Lightlake shall assume all of Adapt’s obligations under the relevant contract, except to the extent
that the same relate to any breach of such contract by Adapt; and

 

(e)          Adapt
shall duly execute and deliver, or cause to be duly executed and delivered, such instruments and shall do and cause to be done
such acts and things, including the filing of such assignments, agreements, documents, and instruments, as may be necessary under,
or as Lightlake may reasonably request in connection with, or to carry out more effectively the purpose of, or to better assure
and confirm unto Lightlake its rights under, this Section 10.7.1 and Section 10.6.

 

10.8         Post-Termination
Royalties.

 

10.8.1           As
further consideration for the licenses, assignments and transfers set forth in Section 10.6 and Section10.7, following
termination of this Agreement by Lightlake pursuant to Section 10.3 or 10.4 or by Adapt pursuant to Section 10.2,
until Adapt has recouped one-hundred percent (100%) (i) of the Development Costs which were incurred by it in Developing the Products
in accordance with the Initial Development Plan or any subsequent Development Plan (excluding costs borne by Lightlake in accordance
with Section 3.8.1) and such Development Costs were borne by Adapt prior to the effective date of termination, (ii) the
upfront payments paid to Lightlake pursuant to Section 5.1, (iii) the Regulatory Milestones paid to Lightlake pursuant to
Section 5.2, (iv) the Sales-Based Milestones paid to Lightlake pursuant to Section 5.3, (iv) and any upfront license
payments and milestones paid to Third Parties pursuant to Section 5.5, Lightlake shall pay to Adapt a royalty of **** percent
(****%) Net Sales of Product. Sections 5.4.2, 5.5, 5.6, 5.7, 5.8, 5.9, 5.12, 5.13.1
and 5.13.2 shall apply to Lightlake with respect to the Net Sales by Lightlake of Products mutatis mutandis, except
that all references in the definition of Net Sales to Adapt shall deemed to refer to Lightlake.

 

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10.8.2           In
the event of a termination by Adapt pursuant to Section 10.3, Adapt shall continue to pay Lightlake royalties subject to
and in accordance with Sections 5.4, and 5.5; provided, however, that each royalty rate contemplated by Sections
5.4.1 and 5.4.2 shall be reduced by ****% for all royalties owing after the effective date of termination.

 

10.9         Remedies.
Except as otherwise expressly provided herein, termination of this Agreement (either in its entirety or with respect to one
or more country(ies)) or other jurisdiction(s) in accordance with the provisions hereof shall not limit remedies that may otherwise
be available in law or equity.

 

10.10         Accrued
Rights; Surviving Obligations. Termination or expiration of this Agreement for any reason shall be without prejudice to any
rights that shall have accrued to the benefit of a Party prior to such termination or expiration. Such termination or expiration
shall not relieve a Party from obligations that are expressly indicated to survive the termination or expiration of this Agreement.
Without limiting the foregoing, (i) Section 10.9 and this Section 10.10 and Articles 7, 9 and 11
of this Agreement shall survive the termination or expiration of this Agreement for any reason, (ii) Sections 3.2.5, 3.3.1(a),
3.3.3(a), 4.1, 4.3.1, 4.3.2, 6.2, 6.3.1, the second sentence of Section 6.4.2(a),
Sections 6.4.3(a), 6.4.3(b), 6.5 and 6.6 shall survive any termination of this Agreement other than
a termination by Lightlake pursuant to Section 10.3 or Section 10.4 hereof or a termination by Adapt pursuant to
Section 10.2 hereof, (iii) Sections 5.4 through 5.9 and Section 10.8.2 shall survive a termination
by Adapt pursuant to Section 10.3 hereof, (iv) Article 5 shall survive a termination by Adapt pursuant to Section
10.5 hereof and (v) Sections 10.6, 10.7 and 10.8.1 shall survive any termination of this Agreement by
Lightlake pursuant to Section 10.3 or Section 10.4 hereof. With respect to any Sections that survive in accordance
with this Section 10.10, the corresponding definitions shall appropriately survive (e.g. the definition of “Term”
shall continue with respect to the above noted Sections and usage in other definitions).

 

ARTICLE 11

MISCELLANEOUS

 

11.1         Force
Majeure. Neither Party shall be held liable or responsible to the other Party or be deemed to have defaulted under or
breached this Agreement for failure or delay in fulfilling or performing any term of this Agreement when such failure or delay
is caused by or results from fires, floods, earthquakes, hurricanes, embargoes, shortages, epidemics, quarantines, war, acts of
war (whether war be declared or not), terrorist acts, insurrections, riots, civil commotion, acts of God or acts, omissions, or
delays in acting by any Governmental Authority (except to the extent such delay results from the breach by the non-performing Party
or any of its Affiliates of any term or condition of this Agreement) or similar events beyond the reasonable control of the non-performing
Party (a “Force Majeure”). The non-performing Party shall notify the other Party of such force majeure within
thirty (30) days after such occurrence by giving written notice to the other Party stating the nature of the event, its anticipated
duration, and any action being taken to avoid or minimize its effect. The suspension of performance shall be of no greater scope
and no longer duration than is necessary and the non-performing Party shall use Commercially Reasonable Efforts to remedy its inability
to perform.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

11.2         Export
Control. This Agreement is made subject to any restrictions concerning the export of products or technical information
from the United States or other countries that may be imposed on the Parties from time to time. Each Party agrees that it will
not export, directly or indirectly, any technical information acquired from the other Party under this Agreement or any products
using such technical information to a location or in a manner that at the time of export requires an export license or other governmental
approval, without first obtaining the written consent to do so from the appropriate agency or other governmental entity in accordance
with Applicable Law.

 

11.3         Assignment.

 

11.3.1           Without
the prior written consent of Lightlake, Adapt shall not assign, delegate, or otherwise dispose of, whether voluntarily, involuntarily,
by operation of law or otherwise, this Agreement or any of its rights or duties hereunder; provided, however, that Adapt
may make such an assignment without Lightlake’s prior written consent to its Affiliate or to a successor, whether in a merger,
sale of stock, sale of assets or any other transaction, of all or substantially all the assets or business of Adapt or substantially
all of the assets or business of Adapt to which this Agreement relates. With respect to an assignment to an Affiliate, Adapt shall
remain responsible for the performance by such Affiliate of the rights and obligations hereunder. Without the prior written consent
of Adapt, Lightlake shall not assign, delegate, or otherwise dispose of, whether voluntarily, involuntarily, by operation of law
or otherwise, this Agreement or any of its rights or duties hereunder; provided, however, that Lightlake may make such an
assignment without Adapt’s prior written consent to its Affiliate or to a successor, whether in a merger, sale of stock,
sale of assets or any other transaction, of all or substantially all the assets or business of Lightlake or substantially all of
the assets or business of Lightlake to which this Agreement relates. With respect to an assignment to an Affiliate, Lightlake shall
remain responsible for the performance by such Affiliate of the rights and obligations hereunder. 
Any attempted assignment or delegation in violation of this Section 11.3 shall be void and of no effect. All validly
assigned and delegated rights and obligations of the Parties hereunder shall be binding upon and inure to the benefit of and be
enforceable by and against the successors and permitted assigns of Lightlake or Adapt, as the case may be. The permitted assignee
or permitted transferee shall assume all obligations of its assignor or transferor under this Agreement.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

11.3.2           All
rights to Information, materials and intellectual property: (i) controlled by a Third Party permitted assignee of a Party,
which Information, materials and intellectual property were controlled by such assignee immediately prior to such assignment; or
(ii) controlled by an Affiliate of a Party who becomes an Affiliate through any Change in Control of or a merger, acquisition
(whether of all of the stock or all or substantially all of the assets of a Person or any operating or business division of a Person)
or similar transaction by or with the Party, which Information, materials and intellectual property were controlled by such Affiliate
immediately prior thereto, in each case ((i) and (ii)), shall be automatically excluded from the rights licensed or granted to
the other Party under this Agreement.

 

11.4         Severability.
If any provision of this Agreement is held to be illegal, invalid, or unenforceable under any present or future law, and if
the rights or obligations of either Party under this Agreement will not be materially and adversely affected thereby, (i) such
provision shall be fully severable, (ii) this Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable
provision had never comprised a part hereof, (iii) the remaining provisions of this Agreement shall remain in full force and
effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance herefrom, and (iv) in
lieu of such illegal, invalid, or unenforceable provision, there shall be added automatically as a part of this Agreement a legal,
valid, and enforceable provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and
reasonably acceptable to the Parties. To the fullest extent permitted by Applicable Law, each Party hereby waives any provision
of law that would render any provision hereof illegal, invalid, or unenforceable in any respect.

 

11.5         Governing
Law. This Agreement or the performance, enforcement, breach or termination hereof shall be interpreted, governed by and construed
in accordance with the laws of New York, United States, excluding any conflicts or choice of law rule or principle that might otherwise
refer construction or interpretation of this Agreement to the substantive law of another jurisdiction; provided, that all questions
concerning the construction or effect of patent applications and patents shall be determined in accordance with the laws of the
country or other jurisdiction in which the particular patent application or patent has been filed or granted, as the case may be.
The Parties agree to exclude the application to this Agreement of the United Nations Convention on Contracts for the International
Sale of Goods.

 

11.6         Dispute
Resolution. In the event of any dispute between or among the Parties relating to this Agreement, the Parties will each designate
one senior executive to meet and use good faith efforts to attempt to resolve the dispute. If the representatives are unable to
resolve the dispute within thirty (30) days following written notice of the dispute from one Party to another, then the Parties
shall be free to pursue any remedies available to them at law or in equity.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

11.7         Submission
to Jurisdiction; Waiver of Jury Trial.

 

11.7.1           SUBJECT
TO SECTION 11.6, IN THE EVENT ANY PARTY TO THIS AGREEMENT COMMENCES ANY LITIGATION, PROCEEDING OR OTHER LEGAL ACTION IN
CONNECTION WITH OR RELATING TO THIS AGREEMENT, ANY RELATED AGREEMENT OR ANY MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN,
WITH RESPECT TO ANY OF THE MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN, THE PARTIES TO THIS AGREEMENT HEREBY (A) AGREE
THAT ANY LITIGATION, PROCEEDING OR OTHER LEGAL ACTION SHALL BE INSTITUTED IN A COURT OF COMPETENT JURISDICTION LOCATED WITHIN THE
BOROUGH OF MANHATTAN, CITY OF NEW YORK, WHETHER A STATE OR FEDERAL COURT; (B) AGREE THAT IN THE EVENT OF ANY SUCH LITIGATION, PROCEEDING
OR ACTION, SUCH PARTIES WILL CONSENT AND SUBMIT TO PERSONAL JURISDICTION IN ANY SUCH COURT DESCRIBED IN CLAUSE (A) OF THIS SECTION
11.7 AND TO SERVICE OF PROCESS UPON THEM IN ACCORDANCE WITH THE RULES AND STATUTES GOVERNING SERVICE OF PROCESS (IT BEING UNDERSTOOD
THAT NOTHING IN THIS SECTION 11.7 SHALL BE DEEMED TO PREVENT ANY PARTY FROM SEEKING TO REMOVE ANY ACTION TO A FEDERAL COURT
IN THE BOROUGH OF MANHATTAN, CITY OF NEW YORK); (C) AGREE TO WAIVE TO THE FULL EXTENT PERMITTED BY LAW ANY OBJECTION THAT THEY
MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH LITIGATION, PROCEEDING OR ACTION IN ANY SUCH COURT OR THAT ANY SUCH LITIGATION,
PROCEEDING OR ACTION WAS BROUGHT IN AN INCONVENIENT FORUM; (D) DESIGNATE, APPOINT AND DIRECT CT CORPORATION SYSTEM AS ITS AUTHORIZED
AGENT TO RECEIVE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS AND DOCUMENTS IN ANY LEGAL PROCEEDING IN THE STATE OF NEW YORK; (E)
AGREE TO NOTIFY THE OTHER PARTIES TO THIS AGREEMENT IMMEDIATELY IF SUCH AGENT SHALL REFUSE TO ACT, OR BE PREVENTED FROM ACTING,
AS AGENT AND, IN SUCH EVENT, PROMPTLY TO DESIGNATE ANOTHER AGENT IN THE STATE OF NEW YORK, SATISFACTORY TO BOTH PARTIES, TO SERVE
IN PLACE OF SUCH AGENT AND DELIVER TO THE OTHER PARTY WRITTEN EVIDENCE OF SUCH SUBSTITUTE AGENT’S ACCEPTANCE OF SUCH DESIGNATION;
(F) AGREE AS AN ALTERNATIVE METHOD OF SERVICE TO SERVICE OF PROCESS IN ANY LEGAL PROCEEDING BY MAILING OF COPIES THEREOF TO SUCH
PARTY AT ITS ADDRESS SET FORTH IN SECTION 11.8 FOR COMMUNICATIONS TO SUCH PARTY; (G) AGREE THAT ANY SERVICE MADE AS PROVIDED
HEREIN SHALL BE EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (H) AGREE THAT NOTHING HEREIN SHALL AFFECT THE RIGHTS OF ANY
PARTY TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

 

11.7.2           EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED
BY THIS AGREEMENT (INCLUDING ANY SUCH ACTION INVOLVING THE FINANCING SOURCES). EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS
OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.7.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

11.8         Notices.

 

11.8.1           Notice
Requirements. Any notice, request, demand, waiver, consent, approval, or other communication permitted or required under this
Agreement shall be in writing, shall refer specifically to this Agreement and shall be deemed given only if (i) delivered by hand
or sent by facsimile transmission (with transmission confirmed), (ii) by internationally recognized overnight delivery service
that maintains records of delivery, addressed to the Parties at their respective addresses specified in Section 11.8.2 or
(iii) to such other address as the Party to whom notice is to be given may have provided to the other Party in accordance with
this Section 11.8.1. Such Notice shall be deemed to have been given as of the date delivered by hand or transmitted by facsimile
(with transmission confirmed) or on the second Business Day (at the place of delivery) after deposit with an internationally recognized
overnight delivery service. Any notice delivered by facsimile shall be confirmed by a hard copy delivered as soon as practicable
thereafter. This Section 11.8.1 is not intended to govern the day-to-day business communications necessary between the Parties
in performing their obligations under the terms of this Agreement.

 

11.8.2           Address
for Notice.

 

If to Adapt, to:

 

Adapt Pharma Operations Limited

45 Fitzwilliam Square

Dublin 2, Ireland

Attention: Chief Financial Officer

 

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

 

Mayer Brown LLP

1675 Broadway

New York, NY 10019

Attention: Reb D. Wheeler

Facsimile: 1-212-849-5914

 

If to Lightlake, to:

 

Lightlake Therapeutics

96-98 Baker Street, First Floor

London, England W1U 6TJ

Attention: CEO

Facsimile: +44(0)207 034 1943

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

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

 

Morgan, Lewis & Bockius LLP

502 Carnegie Center

Princeton, New Jersey 08540

Attention: David G. Glazer

Facsimile: 1-609-919-6701

 

11.9         Entire
Agreement; Amendments. This Agreement, together with the Schedules attached hereto sets forth and constitutes the entire
agreement and understanding between the Parties with respect to the subject matter hereof and all prior agreements, understandings,
promises, and representations, whether written or oral, with respect thereto are superseded hereby (including the Existing CDAs).
Each Party confirms that it is not relying on any representations or warranties of the other Party except as specifically set forth
in this Agreement. No amendment, modification, release, or discharge shall be binding upon the Parties unless in writing and duly
executed by authorized representatives of both Parties.

 

11.10         English
Language. This Agreement shall be written and executed in, and all other communications under or in connection with
this Agreement shall be in, the English language. Any translation into any other language shall not be an official version thereof,
and in the event of any conflict in interpretation between the English version and such translation, the English version shall
control.

 

11.11         Waiver
and Non-Exclusion of Remedies. Any term or condition of this Agreement may be waived at any time by the Party that is
entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by
or on behalf of the Party waiving such term or condition. The waiver by either Party hereto of any right hereunder or of the failure
to perform or of a breach by the other Party shall not be deemed a waiver of any other right hereunder or of any other breach or
failure by such other Party whether of a similar nature or otherwise. The rights and remedies provided herein are cumulative and
do not exclude any other right or remedy provided by Applicable Law or otherwise available except as expressly set forth herein.

 

11.12         No
Benefit to Third Parties. Covenants and agreements set forth in this Agreement are for the sole benefit of the Parties
hereto and their successors and permitted assigns, and they shall not be construed as conferring any rights on any other Persons.

 

11.13         Further
Assurance. Each Party shall duly execute and deliver, or cause to be duly executed and delivered, such further instruments
and do and cause to be done such further acts and things, including the filing of such assignments, agreements, documents, and
instruments, as may be necessary or as the other Party may reasonably request in connection with this Agreement or to carry out
more effectively the provisions and purposes hereof, or to better assure and confirm unto such other Party its rights and remedies
under this Agreement.

 

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Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

11.14         Relationship
of the Parties. It is expressly agreed that Lightlake, on the one hand, and Adapt, on the other hand, shall be independent
contractors and that the relationship between the two Parties shall not constitute a partnership, joint venture, or agency. Neither
Lightlake, on the one hand, nor Adapt, on the other hand, shall have the authority to make any statements, representations, or
commitments of any kind, or to take any action, which shall be binding on the other, without the prior written consent of the other
Party to do so. All persons employed by a Party shall be employees of such Party and not of the other Party and all costs and obligations
incurred by reason of any such employment shall be for the account and expense of such Party.

 

11.15         Rights
in Bankruptcy. All rights and licenses granted under or pursuant to this Agreement by Adapt or Lightlake are, and shall
otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of right to “intellectual
property” as defined under Section 101 of the U.S. Bankruptcy Code. The Parties agree that the Parties, as licensees of such
rights under this Agreement, shall retain and may fully exercise all of their rights and elections under the U.S. Bankruptcy Code.
The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against either Party under the
U.S. Bankruptcy Code, the Party hereto that is not a Party to such proceeding shall be entitled to a complete duplicate of (or
complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual property, which, if
not already in the non-subject Party’s possession, shall be promptly delivered to it (i) upon any such commencement of a
bankruptcy proceeding upon the non-subject Party’s written request therefor, unless the Party subject to such proceeding
elects to continue to perform all of its obligations under this Agreement or (ii) if not delivered under (i) above, following the
rejection of this Agreement by or on behalf of the Party subject to such proceeding upon written request therefor by the non-subject
Party.

 

11.16         Counterparts;
Facsimile Execution. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. This Agreement may be executed by facsimile or
electronically transmitted signatures and such signatures shall be deemed to bind each Party hereto as if they were original signatures.

 

11.17         References.
Unless otherwise specified, (i) references in this Agreement to any Article, Section or Schedule shall mean references
to such Article, Section or Schedule of this Agreement, (ii) references in any Section to any clause are references to such
clause of such Section, and (iii) references to any agreement, instrument, or other document in this Agreement refer to such
agreement, instrument, or other document as originally executed or, if subsequently amended, replaced, or supplemented from time
to time, as so amended, replaced, or supplemented and in effect at the relevant time of reference thereto.

 

11.18         Construction.
Except where the context otherwise requires, wherever used, the singular shall include the plural, the plural the singular, the
use of any gender shall be applicable to all genders and the word “or” is used in the inclusive sense (and/or). Whenever
this Agreement refers to a number of days, unless otherwise specified, such number refers to days. The captions of this Agreement
are for convenience of reference only and in no way define, describe, extend, or limit the scope or intent of this Agreement or
the intent of any provision contained in this Agreement. The term “including,” “include,” or “includes”
as used herein shall mean including, without limiting the generality of any description preceding such term. The language of this
Agreement shall be deemed to be the language mutually chosen by the Parties and no rule of strict construction shall be applied
against either Party hereto. Each Party represents that it has been represented by legal counsel in connection with this Agreement
and acknowledges that it has participated in the drafting hereof. In interpreting and applying the terms and provisions of this
Agreement, the Parties agree that no presumption will apply against the Party which drafted such terms and provisions.

 

[SIGNATURE PAGE FOLLOWS.]

 

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THIS AGREEMENT IS EXECUTED by the authorized representatives of
the Parties as of the Effective Date.

 

	LIGHTLAKE THERAPEUTICS INC.	 	ADAPT PHARMA OPERATIONS LIMITED
	By:	 	By:
	 	 	 
	/s/ Roger Crystal	 	/s/ Seamus Mulligan
	Name: Roger Crystal	 	Name: Seamus Mulligan
	Title: Chief Executive Officer	 	Title: CEO

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

Schedule 1.24

 

Existing Inventory Supply

 

Please see attached.

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

Schedule 1.24

 

Existing Inventory Supply

 

	PART	 	STATUS	 	QUANTITY	 	EXPECTED
	Stoppers	 	In stock	 	160,712	 	-
	 	On order	 	1,080,000	 	Feb-15
	Vials	 	In stock	 	167,350	 	-
	 	On order	 	85,000	 	Dec-14
	 	On order	 	400,000	 	Mar-15
	Container holder	 	In stock	 	79,900	 	-
	 	On order	 	15,000	 	Dec-14
	Actuator	 	In stock	 	94,901	 	-
	 	On order	 	-	 	-
	Clinical batch 20mg vials	 	In stock	 	65	 	-
	Clinical batch 40mg vials	 	In stock	 	150	 	-
	Naloxone API	 	In stock	 	6.07kg	 	-
	 	On order	 	-	 	-

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

Schedule 1.33

 

Initial Development Plan

 

Please see attached.

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

IN NALOXONE FOR OPIOID OVERDOSE INITIAL
DEVELOPMENT PLAN

 

12 Dec 14

 

PRIVATE & CONFIDENTIAL

 

BASIS OF PREPARATION

 

On the 12 December 2014 the Initial Development Plan assumes
a Target Filing Date of the ****. Achievement of the submission date is based on the following assumptions:

 

	1.	****
	2.	****
	3.	****
	4	****
	5	****
	6	****
	7	****

 

It should be noted that there is inherent
uncertainty over our ability to achieve the target submission date as it is contingent on the ability of third party suppliers/service
providers to deliver within the required timeframe and other events beyond our control, which could result in delays to the target
NDA submission date

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

	 	 	 	 	 	INITIAL DEVELOPMENT PLAN
	Task	Start	Finish	Duration (days)	Status	Months and Years Redacted
	 
	Months and Years Redacted

 

40 lines redacted listing milestones

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

Schedule 1.52

 

Product Specific Patents

 

Please see attached.

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

Schedule 1.52

 

	Case Number	 	Title	 	Country	 	Case Type	 	Application No.	 	Filing Date
	LLT0001-101-US	 	NASAL DRUG PRODUCTS AND METHODS OF THEIR USE	 	US	 	Provisional	 	61/953,379	 	3/14/2014
	LLT0002-101-US	 	CO-PACKAGED DRUG PRODUCTS	 	US	 	Provisional	 	62/022,268	 	7/9/2014

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

Schedule 3.2.3(a)

 

Adapt Development Tasks

 

		·	****

		·	****

		·	****

		·	****

		·	****

		·	****

		·	****

		·	****

 

The above tasks will be completed as required
to support an NDA submission to the FDA.

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

Schedule 3.7

 

Third Party Service Agreements

 

		•	Research and Development Services Agreement between **** and Lightlake Therapeutics Inc., dated June 23, 2014, and as amended
September 9, 2014.

 

		•	Clinical Research Agreement between **** and Lightlake Therapeutics Inc. dated October 7, 2014.

 

		•	Consulting Agreement between **** and Lightlake Therapeutics
Inc. dated July 24, 2014, and as amended October 9, 2014.

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

Schedule 3.8.2

 

Lightlake Costs

 

Please see attached.

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

Schedule 3.8.2 - Lightlake costs

	$	 	As of the Effective Date	 
	Supplier/Vendor	 	Paid	 	 	Due	 	 	Total	 
	****	 	 	669,457	 	 	 	39,911	 	 	 	709,368	 
	****	 	 	-	 	 	 	357,942	 	 	 	357,942	 
	****	 	 	312,012	 	 	 	-	 	 	 	312,012	 
	****	 	 	40,136	 	 	 	-	 	 	 	40,136	 
	****	 	 	-	 	 	 	76,487	 	 	 	76,487	 
	****	 	 	90,263	 	 	 	11,000	 	 	 	101,263	 
	****	 	 	23,573	 	 	 	21,496	 	 	 	45,070	 
	****	 	 	115,118	 	 	 	14,377	 	 	 	129,496	 
	****	 	 	900	 	 	 	-	 	 	 	900	 
	****	 	 	1,868	 	 	 	-	 	 	 	1,868	 
	****	 	 	28,432	 	 	 	-	 	 	 	28,432	 
	****	 	 	425	 	 	 	-	 	 	 	425	 
	Total	 	 	1,282,184	 	 	 	521,214	 	 	 	1,803,398	 

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

Schedule 7.4

 

Form of Press Releases

 

Please see attached.

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

News Release

 

Investor Relations Contact:

 

Amato and Partners, LLC

 

admin@amatoandpartners.com

 

LIGHTLAKE THERAPEUTICS INC. ANNOUNCES

 

LICENSING DEAL WITH ADAPT PHARMA LIMITED

 

LONDON – (December 15, 2014) – Lightlake Therapeutics
Inc. (“Lightlake”) (OTCQB: LLTP), a biopharmaceutical company developing addiction treatments based on its expertise
in opioid antagonists, announced today that it has entered into a license agreement with Adapt Pharma Limited (“Adapt”),
an Ireland-based pharmaceutical company. Pursuant to the agreement Adapt has received from Lightlake a global license to develop
and commercialize Lightlake’s intranasal naloxone opioid overdose reversal treatment. In exchange for licensing its treatment
to Adapt, Lightlake could receive potential development and sales milestone payments of more than $55 million, plus up to double-digit
royalties.

 

Lightlake has been developing a nasal spray
for the delivery of naloxone that could widely expand its availability and use in preventing opioid overdose deaths, a widespread
and under-addressed public health problem in the United States. Lightlake, in collaboration with the National Institute on Drug
Abuse (“NIDA”), part of the National Institutes of Health (“NIH”), commenced a clinical trial with respect
to its nasal spray in September 2013. Data from that study showed that using Lightlake’s technology naloxone can potentially
be delivered into the blood stream at least as quickly as the injection process currently used by hospitals, first responders,
and others treating opioid overdoses. In July 2014, Lightlake announced that it had filed an investigational new drug application
and received an additional commitment from NIDA to fund a second study with respect to Lightlake’s nasal spray. On December
4, 2014, Lightlake announced that this second study had commenced.

 

“Our entering into an agreement with
Adapt is a transformative event for Lightlake. Adapt is a tremendous development and commercialization partner for Lightlake,”
said Dr. Roger Crystal, CEO of Lightlake. “Adapt has a highly experienced and proven management team, significant financial
resources, and strong capabilities to address a significant public health risk.”

 

“We are pleased to partner with Lightlake
and add this product to our business,” commented Mr. Seamus Mulligan, Adapt’s Chairman and Chief Executive Officer.
“The product is an important therapeutic and will have significant benefits for patients, first responder medical staff and
caregivers. We look forward to completing the late stage development and to commercially launching the product.”

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

Torreya Partners LLC acted as financial
advisor and Morgan, Lewis & Bockius LLP acted as legal advisor to Lightlake on the transaction.

 

About Lightlake Therapeutics Inc.

 

Lightlake Therapeutics Inc., a biopharmaceutical
company, is using its expertise in opioid antagonists to build a platform of innovative intranasal naloxone solutions to common
addictions and related disorders. Lightlake is developing a treatment to reverse opioid overdoses, which have reached epidemic
proportions in the United States. Lightlake has completed a clinical trial for this treatment in collaboration with the National
Institute on Drug Abuse (“NIDA”), part of the National Institutes of Health, and has commenced a second study in collaboration
with NIDA. Lightlake also has completed a Phase II clinical trial to treat Binge Eating Disorder. For more information please visit:
http://www.lightlaketherapeutics.com.

 

About Adapt Pharma Limited

 

Adapt Pharma Limited is a privately held
pharmaceutical company committed to positively impacting the lives of patients with specialist medical conditions. Adapt’s
strategy is to identify, evaluate, selectively acquire and enhance the value of late stage development, and FDA approved, pharmaceutical
products. Adapt’s company headquarters are in Dublin, Ireland. For more information please visit http://www.adaptpharma.com.

 

Forward-Looking Statements

 

This press release contains forward-looking
statements. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties
and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to
be materially different from any future results, levels of activity, performance or achievements expressed, implied or inferred
by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,”
“will,” “should,” “could,” “would,” “expects,” “plans,”
“intends,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,”
“potential,” or “continue” or the negative of such terms and other comparable terminology. These statements
are only predictions based on our current expectations and projections about future events. You should not place undue reliance
on these statements. Actual events or results may differ materially. In evaluating these statements, you should specifically consider
various factors. These and other factors may cause our actual results to differ materially from any forward-looking statement.
We undertake no obligation to update any of the forward-looking statements after the date of this press release to conform those
statements to reflect the occurrence of unanticipated events, except as required by applicable law.

 

# # #

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

Adapt Pharma Announces License Agreement
for Intranasal Naloxone with Lightlake Therapeutics Inc.

 

Dublin, Ireland – December 15th,
2014 – Adapt Pharma Limited (“Adapt Pharma”) today announced the signing of a License Agreement for global rights
to develop and commercialize intranasal naloxone for the treatment of opioid overdose with Lightlake Therapeutics Inc. (“Lightlake”)
(OTCQB: LLTP).

 

Naloxone is an opioid antagonist used for
the emergency treatment of known or suspected opioid overdose, as manifested by respiratory and/or central nervous system depression.
Opioid overdose can occur in various settings, including overdose with prescription pain medications such as morphine or through
the use of illegal drugs such as heroin. An injectable formulation of naloxone is currently approved by the U.S. Food and Drug
Administration. Adapt Pharma believes that an intranasal formulation may facilitate the earlier administration of naloxone, particularly
by family members, caregivers and first responder emergency personnel.

 

Lightlake has been developing the nasal
spray formulation of naloxone. Lightlake, in collaboration with the National Institute on Drug Abuse (“NIDA”), part
of the National Institutes of Health (“NIH”), commenced a clinical trial with respect to the nasal spray in September
2013. In July 2014, Lightlake announced that it had filed an investigational new drug application and received an additional commitment
from NIDA to fund a second study. On December 4, 2014, Lightlake announced that this second study had commenced.

 

“We are pleased to partner with Lightlake
and add this product to our business,” commented Mr. Seamus Mulligan, Adapt Pharma’s Chairman and Chief Executive Officer.
“The product may be an important therapeutic with significant benefits for patients, first responder medical staff and caregivers.
We look forward to completing development and commercially launching the product.”

 

“Our entering into an agreement with
Adapt is a transformative event for Lightlake. Adapt is a tremendous development and commercialization partner for Lightlake,”
said Dr. Roger Crystal, CEO of Lightlake. “Adapt has a highly experienced and proven management team, significant financial
resources, and strong capabilities to address a significant public health risk.”

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

About Adapt Pharma Limited

Adapt Pharma Limited is a privately held
pharmaceutical company committed to positively impacting the lives of patients with specialist medical conditions. Adapt Pharma’s
strategy is to identify, evaluate, selectively acquire and enhance the value of late stage development, and FDA approved, pharmaceutical
products. Adapt Pharma’s company headquarters are in Dublin, Ireland. For more information please visit http://www.adaptpharma.com

 

About Lightlake Therapeutics Inc.

Lightlake Therapeutics Inc., a biopharmaceutical
company, is using its expertise in opioid antagonists to build a platform of innovative intranasal naloxone solutions to common
addictions and related disorders. For more information please visit: http://www.lightlaketherapeutics.com.

 

Media Contact Details

Mr. David Clerkin, Gordon MRM

Tel: +353-87-830-1779

Email: adapt@gordonmrm.ie

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

Schedule 8.2.10

 

Relevant Contracts

 

Please see attached.

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

		·	Research and Development Services Agreement between **** and Lightlake Therapeutics Inc., dated June 23, 2014, and as amended
September 9, 2014.

 

		·	Clinical Research Agreement between **** and Lightlake Therapeutics Inc. dated October 7, 2014.

 

		·	Consulting Agreement between **** and Lightlake Therapeutics Inc. dated July 24, 2014, and as amended October 9, 2014.

 

		·	Master Consultancy Services Agreement between **** and Lightlake Therapeutics Inc. dated August 2, 2014.

 

		·	Mutual Nondisclosure Agreement between **** and Lightlake Therapeutics Inc. dated April 17, 2014., including the Appendix A
– Schedule of Fees for Ad-hoc Services

 

		·	Clinical Trial Agreement between Lightlake Therapeutics Inc. and the Division of Pharmacotherapies and Medical Consequences
of Drug Abuse, National Institute on Drug Abuse dated January 31, 2013.

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

EXHIBIT A

 

FORM OF CONSENT FOR ASSIGNMENT

 

December __, 2014

 

	 	 
	 	 
	 	 

 

Re: Consent to Assignment of
[INSERT NAME OF ASSIGNED CONTRACT]

 

Dear Sir/Madam:

 

We are excited to advise
you that Lightlake Therapeutics Inc. (“Lightlake”) has entered into an agreement with Adapt Pharma Operations
Limited (“Adapt”) in which it has exclusively licensed its intranasal naloxone product to Adapt for treatment
of opioid overdose (“Product”). The transaction closed on December __, 2014. With respect to such license, Adapt
will continue the development and commercialization of the Product.

 

We are writing this
letter to request that you consent to the assignment of Lightlake’s rights under the [INSERT THE NAME OF THE CONTRACT] between
[INSERT NAME OF COUNTERPARTY] (“Counterparty”) and Lightlake dated [INSERT DATE OF AGREEMENT] (“Agreement”)
to Adapt, and to Adapt’s assumption of any and all obligations of Lightlake to Counterparty arising on or after the effective
date of such assignment and assumption.

 

Please execute this
letter in the space provided below as evidence of Counterparty’s (i) consent to assignment of the Agreement to Adapt, and
Adapt’s assumption of Lightlake’s obligations to Counterparty thereunder arising on or after the effective date of
such assignment and assumption, (ii) confirmation that the Agreement will continue in full force and effect in accordance with
its terms following the assignment and (iii) waiver of any of Counterparty’ rights with respect to such assignment and transfer.

 

Please return to my
attention a copy of the signed consent by email to roger.crystal@lightlaketherapeutics.com and mail the original to our
office. If you have any questions, please do not hesitate to call me.

 

	 	
        Sincerely,

	 	 
	 	Lightlake Therapeutics Inc.
	 	 	 	 
	 	By:	 
	 	 	Name:	Roger Crystal
	 	 	Title:	
        CEO

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

Consented to this ___ day of _____________, 2014:

 

[INSERT NAME OF THIRD PARTY]

 

	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

EXHIBIT B

FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

This ASSIGNMENT
AND ASSUMPTION Agreement (“Agreement”) is made and entered
into as of December __, 2014 (the “Effective Date”) by and between Lightlake Therapeutics Inc., a Nevada corporation
(“Lightlake”), and Adapt Pharma Operations Limited, an Irish limited company (“Adapt”). Lightlake
and Adapt are sometimes referred to herein individually as a “Party” and collectively as the “Parties”.

 

RECITALS

 

WHEREAS, the
Parties are entering into to the License Agreement (the “License Agreement”) with respect to a intranasal naloxone
product for treatment of opioid overdose (the “Product”); and

 

WHEREAS, subject
to the terms and conditions contained herein and in the License Agreement, Lightlake wishes to assign and transfer to Adapt, and
Adapt wishes to receive from and assume (effective as of the Effective Date), all of the rights and obligations of Lightlake under
certain agreements relating to the Product.

 

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

 

1.           Defined
Terms. All capitalized terms used in this Agreement (other than the headings of the Sections) shall have the meanings set
forth in this Agreement, or, if not specifically defined in this Agreement, shall have the same meanings as defined in the License
Agreement. Whenever used in this Agreement: (a) the words “include,” “includes” or “including”
shall be construed as incorporating also the phrase “but not limited to” or “without limitation” and shall
mean including without limiting the generality of any description preceding or following such words; (b) the word “day”
shall mean a calendar day unless specified otherwise; (c) the words “hereof,” “herein,” “hereby”
and derivative or similar words refer to this Agreement (including the Exhibits attached to this Agreement); and (d) words
in the singular include the plural and vice versa.

 

2.            Assignment
and Assumption of Assigned Agreements.

 

2.1.          Assignment.
Lightlake hereby assigns, transfers, sets over and conveys to Adapt all of Lightlake’s rights, title, interests, and benefits
in, to and under the agreements set forth on Exhibit A (each, an “Assigned Agreement”, and collectively,
the “Assigned Agreements”), as a whole, on and after the Effective Date.

 

2.2.          Acceptance
and Assumption. Adapt hereby accepts the assignment of the Assigned Agreements and assumes, effective on the Effective
Date, all rights, licenses, privileges, liabilities and obligations under each Assigned Agreement arising on or after the Effective
Date, with the exception of any liability or obligation attributable to a breach of any Assigned Agreement by Lightlake.

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

3.            Governing
Law. This Agreement or the performance, enforcement, breach or termination hereof shall be interpreted, governed by and
construed in accordance with the laws of New York, United States, excluding any conflicts or choice of law rule or principle that
might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction; provided,
that all questions concerning the construction or effect of patent applications and patents shall be determined in accordance with
the laws of the country or other jurisdiction in which the particular patent application or patent has been filed or granted, as
the case may be. The Parties agree to exclude the application to this Agreement of the United Nations Convention on Contracts for
the International Sale of Goods

 

4.            Entire
Agreement; Amendment and Waiver. This Agreement, together with the License Agreement, constitutes the entire agreement
among the Parties with respect to the subject matter hereof and supersedes all prior oral or written agreements, representations,
understandings or arrangements among the Parties relating thereto. No amendment, supplement or other modification to any provision
of this Agreement shall be binding unless in writing and signed by all Parties. No waiver of any rights under this Agreement shall
be effective unless in writing signed by the Party to be charged. A waiver of a breach or violation of any provision of this Agreement
will not constitute or be construed as a waiver of any subsequent breach or violation of that provision or as a waiver of any breach
or violation of any other provision of this Agreement.

 

5.            Severability.
If any provision of this Agreement is held to be illegal, invalid or unenforceable under any present or future Law, and if the
rights or obligations of a Party under this Agreement will not be materially and adversely affected thereby, (a) such provision
shall be fully severable, (b) this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision
had never comprised a part hereof, (c) the remaining provisions of this Agreement shall remain in full force and effect and shall
not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom and (d) in lieu of such illegal,
invalid or unenforceable provision, there shall be added automatically as a part of this Agreement a legal, valid and enforceable
provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and reasonably acceptable
to the Parties.

 

6.            Further
Assurances. Each Party shall, as and when requested by the other Party, do all acts and execute all documents as may be
reasonably necessary to give effect to the provisions of this Agreement.

 

7.            No
Partnership. Nothing in this Agreement is intended or shall be deemed to constitute a partnership, joint venture, or employer-employee
relationship among the Parties. Neither Lightlake nor Adapt (or their Affiliates) shall incur any debts or make any commitments
for the other Party, except to the extent, if at all, specifically provided herein.

 

8.            Counterparts;
Electronic Execution. This Agreement may be executed in two (2) or more counterparts, both of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. Each Party may execute this Agreement by facsimile
transmission or in AdobeTM Portable Document Format (PDF) sent by electronic mail. Facsimile or PDF signatures of authorized
signatories of the Parties will be deemed to be original signatures, will be valid and binding upon the Parties, and, upon delivery,
will constitute due execution of this Agreement.

 

*******************************

 

[Signature Page Follows]

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

IN WITNESS WHEREOF,
the Parties have caused this Agreement to be executed by their duly authorized representatives as of the day and year first above
written.

 

	LIGHTLAKE THERAPEUTICS
    INC.	 	ADAPT PHARMA
    OPERATIONS LIMITED
	By:	 	 	By:	 
	 	 	 	 	 
		     	 		       
	Name:	 	 	Name:	 
	Title:	 	 	Title:	 

 

     

    
Confidential Treatment has been granted for portions of this exhibit. The copy filed herewith omits certain information subject to the confidentiality request. Omissions are designated as “****”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

    

 

Exhibit A

 

Assigned Agreements

 

		•	Research and Development Services Agreement between **** and Lightlake Therapeutics Inc., dated
June 23, 2014.

 

		•	Clinical Research Agreement between **** and Lightlake Therapeutics Inc. dated October 7, 2014.

 

		•	Consulting Agreement between **** and Lightlake Therapeutics
Inc. dated July 24, 2014, and as amended October 9, 2014.

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