Document:

[ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

 

Exhibit 10.13

 

PATENT
RIGHTS PURCHASE AGREEMENT

 

THIS
PATENT RIGHTS PURCHASE AGREEMENT (“Agreement”) is made and entered into effective as of December 5, 2012
(the “Effective Date”):

 

Between:

 

DR.
RICHARD JOHNSON, having an address at ●

 

(“Johnson”)

 

DR.
TAKAHIKO NAKAGAWA, having an address at ●

 

(“Nakagawa”,
and collectively, with Johnson, the “Vendors”)

 

AND:

 

REVASCOR
INC., having a place of business at 29 Aspen
Meadows Park, SW, Calgary Alberta, T3H 5Z7, Canada

 

(the
“Purchaser”)

 

(each
a “Party,” or collectively as the “Parties”)

 

WHEREAS:

 

		A.	The
                                         Vendors have an ownership interest in certain patent and patent applications covering
                                         certain inventions relating to the treatment of cardiovascular diseases; and 

 

		B.	The
                                         Purchaser wishes to purchase such patent and patent applications from the Vendors on
                                         the terms and conditions contained in this Agreement.

 

Now
therefore, in consideration of the premises
and the mutual covenants, terms, conditions and agreements contained herein, and other good and valuable consideration, the sufficiency
of which are hereby acknowledged by the Parties, the Parties agree as follows.

 

Article 1
– INTERPRETATION

 

		1.01	Definitions

 

In
this Agreement, unless something in the subject matter or context is inconsistent therewith:

 

“Affiliate”
of a Party means any other entity that, directly or indirectly, through one or more intermediaries, controls, is controlled by,
or is under common control with such first Party. For purposes of this definition only, “control” and, with correlative
meanings, the terms “controlled by” and “under common control with” will mean the possession, directly
or indirectly, of the power to direct the management or policies of an entity, whether through the ownership of voting securities
or by contract relating to voting rights or corporate governance.

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

“Applicable
Law” means the applicable laws, rules, and regulations, including any rules, regulations, guidelines, or other requirements
of the Regulatory Authorities that may be in effect from time to time.

 

“Business
Day” means any day, other than Saturday, Sunday or any statutory holiday in Canada or the United States of America.

 

“Calendar
Year” means each successive period of twelve (12) months commencing on January 1 and ending on December 31.

 

“Calendar
Quarter” means each three (3) month period commencing January 1, April 1, July 1 and October 1 of each Calendar Year.

 

“Claims”
means all losses, damages, fines, penalties, expenses, liabilities (whether accrued, actual, contingent, latent or otherwise),
claims and demands of whatever nature or kind including all legal fees and costs on a solicitor and client basis.

 

“Commercialize”
means to Use and otherwise exploit worldwide in any manner whatsoever and grant sublicenses (and permit the granting of sublicenses)
in accordance with Section 2.02 to do any or all of the foregoing.

 

“Combination
Product” means the Products which are sold in combination with a Third Party product or service.

 

“Confidential
Information” means all information and know-how and any tangible embodiments thereof provided by or on behalf of one
Party to the other Party either in connection with the discussions and, negotiations pertaining to this Agreement or in the course
of performing this Agreement, which may include data; knowledge; practices; processes; ideas; research plans; engineering designs
and drawings; research data; manufacturing processes and techniques; scientific, manufacturing, marketing and business plans;
and financial and personnel matters relating to the disclosing Party or to its present or future products, sales, suppliers, customers,
employees, investors or business. For clarity, the Patent Rights (to the extent they are not publicly available) are the Confidential
Information of the Purchaser.

 

Notwithstanding
the foregoing, information or know-how of a Party will not be deemed Confidential Information of such Party for purposes of this
Agreement if such information or know-how:

 

		(a)	was
                                         already known to the receiving Party, other than under an obligation of confidentiality
                                         or non-use, at the time of disclosure to such receiving Party;

 

		(b)	was
                                         generally available or known to parties reasonably skilled in the field to which such
                                         information or know-how pertains, or was otherwise part of the public domain, at the
                                         time of its disclosure to such receiving Party;

 

		(c)	became
                                         generally available or known to parties reasonably skilled in the field to which such
                                         information or know-how pertains, or otherwise became part of the public domain, after
                                         its disclosure to such receiving Party through no fault of the receiving Party;

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
2 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

		(d)	was
                                         disclosed to such receiving Party, other than under an obligation of confidentiality
                                         or non-use, by a Third Party who had no obligation to the disclosing Party not to disclose
                                         such information or know-how to others; or

 

		(e)	was
                                         independently discovered or developed by such receiving Party, as evidenced by their
                                         written records, without the use of Confidential Information belonging to the disclosing
                                         Party and prior to any subsequent disclosure by the receiving Party.

 

“Control”
means, with respect to any Patent or other Intellectual Property Right, possession of the right (whether by ownership, license
or otherwise), to assign, or grant a license, sublicense or other right to or under, such Patent or right as provided for herein
without violating the terms of any agreement or other arrangement with any Third Party or incurring any additional financial or
other obligation to a Third Party.

 

“Covered”
means, with respect to a Patent Rights, that, but for a license granted by the Purchaser under a Valid Claim included in such
Patent Rights, the practice of the subject matter claimed in such Patent Rights would infringe such Valid Claim.

 

“Effective
Sale Date” means the date the Vendors secure the NIH Waiver.

 

“Encumbrances”
means pledges, liens, charges, security interests, leases, title retention agreements, mortgages, restrictions, development or
similar agreements, easements, rights-of-way, title defects, options or adverse claims or encumbrances of any kind or character
whatsoever.

 

“Executory”
as used in relation to Vendors’ rights in Patent Rights means the Vendors, as inventors of Patent Rights, have requested for and
are awaiting assignment of the Patent Rights from the NIH per NIH policies and procedures.

 

“First
Commercial Sale” means, with respect to a Product, the first bona fide sale of such Product to a Third Party by or on
behalf of the Purchaser, its Affiliates or licensees in a country after Regulatory Approval has been achieved for such Product
in such country. For greater certainty, sales for test marketing, sampling and promotional uses, clinical trial purposes or compassionate
or similar use will not be considered to constitute a First Commercial Sale.

 

“Intellectual
Property Rights” mean any and all proprietary rights provided under (a) patent law, (b) copyright law, (c) trade-mark
law, (d) design patent or industrial design law, (e) semi-conductor chip or mask work law, or (f) any other applicable statutory
provision or common law principle, including trade secret law, that may provide a right in ideas, formulae, algorithms, concepts,
inventions, or know-how, or the expression or use thereof.

 

“Know-How”
means to the extent Controlled by the Vendors or any Affiliate of the Vendors, as the case may be, whether existing as of Effective
Date or acquired or developed by the Vendors or their Affiliate thereafter, and necessary or useful for the development, making,
having made, use, sale, offering to sell, having sold or importing of the Product, all know-how, inventions, discoveries, data,
results, information, trade secrets, ideas, concepts, formulas, techniques, methods, processes, developments, materials or compositions
of matter of any type or kind, expertise, formulas, technology, stability data, research, pre-clinical and clinical data, regulatory
information, manufacturing process, scale-up and other technical data, reports, documentation and samples, whether or not patented
or patentable, pertaining to the inventions and technology described in the Patent Rights and all Patents relating to such patent
applications for which Dr. Richard Johnson is identified as an inventor.

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
3 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

“Net
Revenues” means all revenues to the Purchaser derived from any combination of Net Sales, Sublicensing Royalty Revenue,
and Sublicensing Revenue, but specifically will exclude (i) equity purchases of the Purchaser’s securities, or (ii) milestones
amounts paid by licensees or other collaborators or funders for contract research and development activities.

 

“Net
Sales” means the total invoiced sales price for Products sold by Purchaser (or an Affiliate or licensee) less the following
deductions:

 

		(a)	sales
                                         taxes or other taxes separately stated in the invoice;

 

		(b)	shipping
                                         and insurance charges actually paid and separately stated on the invoice;

 

		(c)	actual
                                         allowances, rebates, credits and refunds for returned or defective goods;

 

		(d)	chargeback
                                         payments and rebates (or the equivalent thereof) granted to managed health care organizations
                                         or to federal, state/provincial, local and other governments, including their agencies,
                                         purchasers, and/or reimbursers, or to trade customers;

 

		(e)	normal
                                         and customary trade and quantity discounts, retroactive price reductions, or other allowances
                                         actually allowed or granted from the billed amount and taken; and

 

		(f)	any
                                         import or export duties, tariffs, or similar charges incurred with respect to the import
                                         or export of Product into or out of a country.

 

For
purposes of this Agreement, a distributor will not be deemed a licensee and sales by the Purchaser, its Affiliates or licensees
to a distributor will be considered as Net Sales. Notwithstanding the foregoing, Net Sales will not include, and will be deemed
zero with respect to, (i) the distribution of reasonable quantities of promotional samples of Products, (ii) amounts received
by the Purchaser, its Affiliates or licensees for the sale of Products among the Purchaser, its Affiliates or licensees whether
for their internal use or for resale or other disposition; and (iii) amounts received by the Purchaser, its Affiliates or licensees
for Products provided for clinical trials, research purposes, or charitable or compassionate use purposes.

 

“NIH
Waiver” means an approval from the National Institutes of Health for Vendors to transfer ownership of the Patent Rights
to Purchaser.

 

“Patents”
will include (i) all patents and patent applications, (ii) any substitutions, divisions, continuations, continuations-in-part
(but only to the extent that they cover the same invention claimed in the foregoing), revisions, reissues, renewals, registrations,
confirmations, re-examinations, extensions, supplementary protection certificates, patent term extensions, patent term adjustments,
and the like, and any provisional applications, of any such patents or patent applications, and (iii) any foreign or international
equivalent of any of the foregoing.

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
4 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

“Patent
Rights” means the patent applications listed in Schedule A and all Patents related thereto.

 

“Product”
means any method, process, device, product or service, that, in whole or in part is developed, made, used, sold, distributed,
imported or exported by utilizing or incorporating in any way, directly or indirectly any subject matter Covered by a Valid Claim
in any Patent Rights.

 

[REDACTED].

 

“Regulatory
Approval” means approval by a Regulatory Authority to allow marketing of a Product.

 

“Regulatory
Authority” means any applicable government entities regulating or otherwise exercising authority with respect to the
development and commercialization of the Product.

 

“Royalty
Due Dates” means March 31, June 30, September 30 and December 31 of each and every year during which this Agreement
remains in full force and effect.

 

“Sublicensing
Revenue” means any consideration actually received by Purchaser or an Affiliate from a Third Party as consideration
for the grant of rights to Products (net of any tax or similar withholding obligations imposed by any tax or other government
authorities that are not reasonably recoverable by Purchaser). Sublicensing Revenue includes, but is not limited to, upfront fees,
license maintenance fees, and milestone payments received by Purchaser in consideration for any rights granted to Products under
a sublicense agreement, and excludes (i) Sublicensing Royalty Revenue, (ii) purchases of equity or debt of Purchaser or any Affiliate,
(iii) fair market value payments made in connection with research and development agreements, joint ventures, partnerships or
collaboration agreements where Purchaser or an Affiliate is obligated to perform research and development of any Product(s), (iv)
the grant to Purchaser of Intellectual Property Rights related to the Patent Rights; and (v) other payments made by a licensee
as consideration for Purchaser’s or an Affiliate’s performance of services or provision of goods, provided such services
or goods are not Products or, if such services or goods are Products, (a) the provision of such services or goods results in Net
Sales pursuant to which a royalty is payable or (b) the provision of such services or goods constitutes one or more of the following:
(1) the distribution of reasonable quantities of promotional samples of Products or (2) the provision of Products for clinical
trials, research purposes, or charitable or compassionate use purposes.

 

“Sublicensing
Royalty Revenue” means sales-based royalties, sales milestone payments, other payments calculated on the basis of sales,
and minimum sales royalties actually received by Purchaser or its Affiliate from a Third Party as consideration for the grant
of rights to Products (net of any tax or similar withholding obligations imposed by any tax or other government authorities that
are not reasonably recoverable by Purchaser).

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
5 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

“Technology”
means the Patent Rights and the Know-How.

 

“Third
Party” means any party other than the Vendors or the Purchaser or their respective Affiliates.

 

“Use”
means to use, operate, make, have made, manufacture, sell, offer to sell, license, assign, transfer, market, distribute, sub-license,
import, export, reproduce, modify, adapt, create derivative works, support, translate, port, practice any method or process claimed
in any patent, benefit from or exploit any Intellectual Property Rights or have done any of such things above by any means and
any forms.

 

“Valid
Claim” means a claim of any issued, unexpired patent which has not been revoked or held unenforceable or invalid by
a decision of a court or governmental agency of competent jurisdiction from which no appeal can be taken, or with respect to which
an appeal is not taken within the time allowed for appeal, and which has not been disclaimed, denied or admitted to be invalid
or unenforceable through reissue, disclaimer or otherwise.

 

“Withholding
Taxes” has the meaning set forth in Section 4.08.

 

		1.02	Headings

 

The
division of this Agreement into Articles and Sections and the insertion of headings are for convenience of reference only and
shall not affect the construction or interpretation of this Agreement. The terms “this Agreement”, “hereof”,
“hereunder” and similar expressions refer to this Agreement and not to any particular Article, Section or other portion
hereof and include any agreement supplemental hereto. Unless something in the subject matter or context is inconsistent therewith,
references herein to Articles and Sections are to Articles and Sections of this Agreement.

 

		1.03	Extended
                                         Meanings

 

In
this Agreement words importing the singular number only shall include the plural and vice versa, words importing the masculine
gender shall include the feminine and neuter genders and vice versa and words importing persons shall include individuals,
partnerships, associations, trusts, unincorporated organizations and corporations.

 

		1.04	Accounting
                                         Principles

 

Wherever
in this Agreement reference is made to a calculation to be made in accordance with generally accepted accounting principles, such
reference shall be deemed to be to the generally accepted accounting principles from time to time approved by the Canadian Institute
of Chartered Accountants, or any successor institute, applicable as at the date on which such calculation is made or required
to be made in accordance with generally accepted accounting principles.

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
6 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

		1.05	Knowledge

 

In
this Agreement, the phrase “to the knowledge, information and belief” of any person will be interpreted as follows:

 

(1)           A person who is an individual will be deemed to have knowledge, information and/or belief of a particular fact or other matter
if such individual is actually aware of such fact or other matter, or a prudent individual could be expected to discover or otherwise
become aware of such fact or other matter in the course of conducting a reasonably comprehensive investigation concerning the
existence of such fact or other matter.

 

(2)           A person, other than an individual, will be deemed to have knowledge, information and/or belief of a particular fact or other
matter if any individual who is serving, or who has at any time served, as a director, officer, partner, executor, or trustee
of such person (or in any similar capacity) has, or at any time had, knowledge, information and/or belief of such fact or other
matter.

 

Article 2
– license and NIH Waiver

 

		2.01	NIH
                                         Waiver

 

The
Vendors will use best efforts to promptly secure the NIH Waiver from the National Institutes of Health.

 

		2.02	License

 

As
of the Effective Date, prior to the Vendors securing the NIH Waiver, the Vendors hereby grant to the Purchaser an exclusive, assignable
(in accordance with Section 11.01), and sublicensable license, including under all of the Vendors’ present and future Intellectual
Property Rights in and to the Technology, to Commercialize the Technology worldwide in any manner whatsoever, including, without
limitation, the Commercialization of any Products (the “License”) for the issuance of shares in the Purchaser
in accordance with Section 4.01.

 

		2.03	Vendors’
                                         Rights.

 

The
Parties acknowledge and agree that the Vendors may use the Technology for its own internal research, teaching and educational
purposes, including treatment of patients with cardiovascular diseases at patient care facilities operated or controlled by the
University of Colorado (the “Colorado Patient Care”) provided that such use shall not (i) contravene the Vendors’
confidentiality obligations under Article 9, (ii) be subject to any Intellectual Property Rights granted to any commercial Third
Party; or (iii) include any human use or clinical administration without prior written approval from the Purchaser (other than
with respect to the Colorado Care), such approval not to be unreasonably withheld. The Purchaser shall also retain the rights
to make, use and provide the Technology to other academic and non-profit research institutions collaborating with the Vendors
for their own internal research, teaching and educational purposes relating to such collaboration, provided that such academic
and non-profit research institutions are bound by confidentiality obligations to protect the Technology that are commensurate
with those under this Agreement, and the Vendors shall require such Third Parties that the use of such Technology shall not (i)
be subject to any Intellectual Property Rights granted to any commercial Third Party nor (ii) include any human use or clinical
administration without prior written approval from the Purchaser, such approval not to be unreasonably withheld.

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
7 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

		2.04	Prosecution
                                         of Patents. 

 

(1)           Upon the Purchaser’s request and direction, prior to the Effective Sale Date, the Vendors will promptly do all things necessary
or desirable to prepare, file, register, prosecute or maintain the Patent Rights as the Purchaser may stipulate in writing from
time to time in each jurisdiction designated by the Purchaser, and the Purchaser will bear the cost of all reasonable and pre-approved
expenses incurred after the Effective Date, continuing until the Effective Sale Date, and associated with the preparation, filing,
registration, issuance and maintenance of all Patents included in the Patent Rights (collectively, the “Prosecution and
Maintenance Fees”) for which applicable invoices have been provided to the Purchaser and approved by the Purchaser.
The Purchaser has the right to (a) select and stipulate legal and patent counsel; (b) stipulate and restrict the jurisdiction(s)
for filing, registration, prosecution, and maintenance of the Patent Rights; and (c) all matters relating to the prosecution of
the Patent Rights. The Vendors will provide copies of all applicable invoices specifying the Prosecution and Maintenance Fees,
and, the Purchaser will pay to the Vendors all undisputed Prosecution and Maintenance Fees within thirty (30) days after receipt
of the applicable invoice. In the event the Vendors elect not to file, register, prosecute or maintain the Patent Rights in specified
jurisdictions, the Vendors will provide written notice to the Purchaser, in advance of any filing or response to deadline or fee
due. The foregoing will not be construed to restrict the right of the Vendors from making such filings, registrations, prosecution,
and maintenance, at the Vendors’ expense, as the Vendors may deem appropriate.

 

(2)           Cooperation. Prior to the Effective Sale Date, each Party will cooperate reasonably in the preparation, filing, registration,
prosecution, and maintenance of the Patent Rights. Such cooperation includes (a) promptly executing all papers and instruments
and requiring employees to execute such papers and instruments as reasonable and appropriate so as to enable such other Party,
to prepare, file, register, prosecute, and maintain such Patents in any country; and (b) promptly informing such other Party of
matters that may affect the preparation, filing, prosecution, registration, or maintenance of any such Patents. The Party responsible
for filing, prosecuting, registering, and maintaining the Patent Rights will provide the non-prosecuting Party with sufficient
opportunity to comment on any document that the prosecuting Party intends to file or to cause to be filed with the relevant intellectual
property or patent office, and after such filing, provide such filed documents to the other Party. Each Party will promptly inform
the other as to all matters that come to its attention that may affect the filing, prosecution, registration, and maintenance
of any of the Patent Rights and will permit the other Party to provide comments and suggestions with respect to such activities,
which comments and suggestions will be reasonably considered by the other Party.

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
8 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

Article 3
– PURCHASE AND SALE

 

		3.01	Purchase
                                         and Sale

 

Subject
to the terms and conditions hereof, the Vendors securing the NIH Waver, the Vendors hereby sell, assign and transfer to Purchaser
as of the Effective Date, free and clear of all Encumbrances, the Patent Rights, and the Purchaser hereby purchases from the Vendors
the Patent Rights, for the amounts payable in accordance with Section 4.02 hereof (the “Purchase Price”).

 

		3.02	Transfer
                                         of Possession

 

This
Agreement shall operate, without further act or formality, as a transfer to the Purchaser for all purposes as at the Effective
Sale Date of all right, title and interest in and to the Patent Rights, including all worldwide rights in and to the Patent Rights.
The Vendors shall forthwith and from time to time hereafter execute and deliver to the Purchaser all deeds, transfers, assignments
and other instruments in writing and further assurances as the Purchaser or its counsel shall reasonably require to effect such
acquisition and transfer; and, for greater certainty, to the extent that any of the Patent Rights shall not have been effectively
transferred to the Purchaser pursuant to this Agreement, the Vendors shall hold all of the same in trust for and as the property
of the Purchaser, pending the effective transfer thereof.

 

		3.03	License
                                         Rights

 

Notwithstanding
the purchase and sale of the Patent Rights contemplated in Section 3.01, upon the assignment of the Patent Rights, the Purchaser
hereby grants to the Vendors a non-exclusive, personal, revocable, and royalty-free license to: (a) use the Patent Rights for
its own internal research, teaching and educational purposes, including the Colorado Patient Care provided that such use shall
not (i) contravene the Vendors’ confidentiality obligations under Article 9 – , (ii) be subject to any Intellectual
Property Rights granted to any commercial Third Party; or (iii) include any human use or clinical administration without prior
written approval from the Purchaser (other than with respect to the Colorado Care), such approval not to be unreasonably withheld;
and (b) make, use and provide the Patent Rights to other academic and non-profit research institutions collaborating with the
Vendors for their own internal research, teaching and educational purposes relating to such collaboration, provided that such
academic and non-profit research institutions are bound by confidentiality obligations to protect the Patent Rights that are commensurate
with those under this Agreement, and the Vendors shall require such Third Parties that the use of such Patent Rights shall not
(i) be subject to any Intellectual Property Rights granted to any commercial Third Party nor (ii) include any human use or clinical
administration without prior written approval from the Purchaser, such approval not to be unreasonably withheld.

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
9 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

Article 4
– - FINANCIAL PROVISIONS

 

		4.01	[REDACTED]

 

		4.02	[REDACTED]
                                         

 

		4.03	[REDACTED]

 

		4.04	[REDACTED]

 

		4.05	[REDACTED]

 

		4.06	Timing
                                         of Payments. 

 

The
royalties from the Purchaser to the Vendors set forth in Section 4.03 will be paid by the Purchaser on a quarterly basis
and, will become due and payable within forty-five (45) days after each respective Royalty Due Date and will be calculated based
on the Net Revenues in the three (3) month period immediately preceding the applicable Royalty Due Date. Provided the Purchaser
has acted reasonably in a commercially reasonable fashion in extending credit to its customers and has had diligent efforts to
collect its accounts receivable respecting Products sold, then the Purchaser may claim a credit against the royalties otherwise
owing respecting royalties paid where the revenues from the sales have not been collected by the Purchaser within one hundred
and twenty (120) days of the sale of such Product, provided that in the event of ultimate collection by the Purchaser, the Royalties
payable will thereupon be submitted to the Vendors.

 

		4.07	Payment
                                         Method. 

 

Any
amounts due to the Vendors under this Agreement will be paid in United States dollars, by wire transfer in immediately available
funds to an account designated by the Vendors. Any payments or portions thereof due hereunder which are not paid on the date such
payments are due under this Agreement will bear simple interest at a rate equal to the lesser of the prime rate as published in
The Globe and Mail, on the first day of each Calendar Quarter in which such payments are overdue, plus two percent (2%),
or the maximum rate permitted by law, whichever is lower, calculated on the number of days such payment is delinquent.

 

		4.08	Currency;
                                         Foreign Payments. 

 

Net
Sales of Product made in currency other than United States dollars will be converted to United States dollars using the average
exchange rates for the applicable foreign currency published in The Globe and Mail for the applicable Calendar Quarter.
If at any time legal restrictions prevent the prompt remittance of any payments in any jurisdiction, the Purchaser may notify
the Vendors and make such payments by depositing the amount thereof in local currency in a bank account or other depository in
such country in the name of the Vendors or its designee, and the Purchaser will have no further obligations under this Agreement
with respect thereto.

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
10 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

		4.09	Taxes.
                                         

 

The
Purchaser may deduct from any amounts it is required to pay to the Vendors pursuant to this Agreement an amount equal to that
withheld for or due on account of any taxes (other than taxes imposed on or measured by net income) or similar governmental charge
imposed by a jurisdiction based on such payments to the Vendors (“Withholding Taxes”). The Purchaser will provide
the Vendors a certificate evidencing payment of any Withholding Taxes hereunder within thirty (30) days of such payment (or when
available from the applicable foreign tax authority) and will reasonably assist the Vendors, at the Vendors’ expense, to
obtain the benefit of any applicable tax treaty.

 

		4.10	Reports;
                                         Records Retention; Audit.

 

(1)          Sales Reports. Within forty-five (45) days after each respective Royalty Due Date, the Purchaser will furnish to the Vendors
a written report showing in reasonably specific detail, on a country-by-country and Product-by-Product basis, (a) the gross
sales of Products sold by the Purchaser, its Affiliates and licensees during the applicable calendar quarter and the calculation
of Net Sales from such gross sales; (b) the calculation of the royalties which will have accrued based upon such Net Sales;
(c) the withholding taxes, if any, required by law to be deducted with respect to such Net Sales; and (d) the exchange
rates, if any, used in determining the amount of U.S. dollars.

 

(2)          Record Retention. The Purchaser will maintain (and will ensure that its licensees will maintain) complete and accurate
books, records and accounts that fairly reflect Net Sales with respect to the Product, in each case in sufficient detail to confirm
the accuracy of any payments required hereunder, which books, records and accounts will be retained by the Purchaser until the
later of (i) 3 years after the end of the period to which such books, records and accounts 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.

 

(3)          Audit. The Vendors will have the right to have an independent certified public accounting firm of nationally recognized
standing, reasonably acceptable to the Purchaser, have access during normal business hours, and upon reasonable prior written
notice, to the Purchaser’ records (and its licensees) as may be reasonably necessary to verify the accuracy of Net Revenues
for any Calendar Quarter ending not more than twenty-four (24) months prior to the date of such request; provided, however,
that the Vendors will not have the right to conduct more than one such audit in any Calendar Year except as provided below
or more than one such audit covering any given time period. The Vendors will bear the cost of such audit unless the audit reveals
an underpayment to the Vendors of more than 5% for the audited period, in which case the Purchaser will bear the cost of the audit.

 

(4)          Payment of Additional Amounts. If, based on the results of such audit, additional payments are owed by the Purchaser under
this Agreement; the Purchaser will make such additional payments, with interest as set forth in Section 4.07, within thirty
(30) days after the date on which such accounting firm’s written report is delivered to such Party.

 

(5)          Confidentiality. The Vendors will treat the financial information subject to review under this Section 4.10(5), any
information contained in the Sales Reports under Section 4.10(1) as Confidential Information of the Purchaser in accordance with
the confidentiality provisions of Article 9 – .

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
11 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

Article 5
– REPRESENTATIONS AND WARRANTIES

 

		5.01	Representations
                                         and Warranties of the Vendors

 

The
Vendors represent, warrant and acknowledge to Purchaser, as of the Effective Date and the Effective Sale Date, and acknowledge
and confirm that Purchaser is relying upon the representations and warranties in connection with the purchase by Purchaser of
the Patent Rights that to their knowledge, information and belief:

 

General

 

		(a)	they
                                         have the power, authority and right to enter into and deliver this Agreement and to complete
                                         all transactions to be completed by them contemplated hereunder;

 

		(b)	this
                                         Agreement and all other agreements, documents and instruments to be executed by either
                                         of the Vendors pursuant hereto have been validly executed and delivered by each of the
                                         Vendors, as applicable, and are valid and enforceable against the Vendors in accordance
                                         with their terms, subject to applicable bankruptcy and insolvency laws and to equitable
                                         remedies being always in the discretion of a court;

 

		(c)	there
                                         is no contract, option or any other right of another binding upon or which at any time
                                         in the future may become binding upon either of the Vendors to sell, transfer, assign,
                                         pledge, charge, mortgage, create any Encumbrance or in any other way dispose of or encumber
                                         any of the Patent Rights other than pursuant to the provisions of this Agreement;

 

		(d)	neither
                                         the entering into nor the delivery of this Agreement nor the completion of the transactions
                                         contemplated hereby by Vendors will result in the violation of:

 

		(i)	any
                                         agreement or other instrument to which either of the Vendors is a party; or

 

		(ii)	any
                                         Applicable Law.

 

		(e)	no
                                         distress, execution or other process been levied against the Vendors or action taken
                                         to repossess goods in the possession of the Vendors. No steps have been taken for the
                                         appointment of an administrator or receiver of any part of the property of the Vendors.
                                         The Vendors have not made or proposed any arrangement or composition with its creditors
                                         or any class of the Vendors’ creditors. The Vendors have not been party to a transaction
                                         pursuant to or as a result of which an asset owned, purportedly owned or otherwise held
                                         by the Vendors are liable to be transferred or are transferred to another person or which
                                         gives or may give rise to a right of compensation or other payment in favour of another
                                         person under the provisions of any applicable bankruptcy or insolvency legislation. The
                                         Vendors are not undischarged bankrupts and will not, by reason of the sale of the Patent
                                         Rights to Purchaser hereunder, be rendered insolvent or be rendered unable to pay their
                                         debts when they become due.

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
12 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

Patent
Rights

 

		(f)	The
                                         Vendors have an Executory interest in the Patent Rights [except as noted in Schedule
                                         A].

 

		(g)	the
                                         Vendors have the exclusive right to use the Patent Rights and no Third Party has any
                                         right, title or interest (including, without limitation, by way of license) to any of
                                         the Patent Rights; [except as noted in Schedule A].

 

		(h)	the
                                         Patent Rights are in good standing and have been duly registered, issued, or granted
                                         or applications to register the same have been filed with the patent granting authorities
                                         identified in Schedule A in all appropriate offices to preserve the rights therein and
                                         of the Vendors thereto;

 

		(i)	all
                                         maintenance and renewal fees for or in respect of all Patent Rights, and owing and/or
                                         due prior to or within ninety (90) days of the Effective Sale Date, have been paid, and
                                         there are no responses to office actions, submissions, or any other outstanding action
                                         or steps required to be taken and/or made in respect of any of the Patent Rights prior
                                         to or within ninety (90) days of the Effective Sale Date, [except as noted in Schedule
                                         A];

 

		(j)	the
                                         Vendors have received no notice of any Claims made against either of the Vendors asserting
                                         the invalidity or unenforceability of the Patent Rights (including, without limitation,
                                         any re-examinations, interference actions, derivation proceedings, or conflict proceedings)
                                         or the misuse of the Patent Rights, and neither of the Vendors is aware of any basis
                                         for any of the same;

 

		(k)	neither
                                         of the Vendors has received notice of any Third Party challenge to either of the Vendor’s
                                         right to use any of the Patent Rights;

 

		(l)	at
                                         no time have the Vendors infringed, misused, misappropriated or jeopardized the Intellectual
                                         Property Rights of any Third Party, . Neither of the Vendors has entered into any agreement
                                         to indemnify any other person against any charge or claim that the Patent Rights infringe
                                         Third Party Intellectual Property Rights. There is no and has not been any unauthorized
                                         use, infringement or misappropriation of any of the Patent Rights by any employee, former
                                         employee, contractor, consultant, customer, or potential customer to whom the Patent
                                         Rights have been provided or made accessible on a pilot basis, and, to the knowledge,
                                         information and belief of each of the Vendors, there is no and has not been any unauthorized
                                         use, infringement or misappropriation of any of the Patent Rights by any other person
                                         or Third Party;

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
13 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

		(m)	neither
                                         of the Vendors is a party to or bound by any contract or commitment to pay any royalty,
                                         licence or other fee with respect to the Patent Rights; [except as noted on Schedule
                                         A]; and

 

		(n)	the
                                         Vendors have received no notice of any actions, suits or proceedings or Claims pending
                                         or threatened against either of the Vendors or the Patent Rights purchased and sold hereunder,
                                         or before or by any governmental authorities, whether or not insured, and which might
                                         involve the possibility of any Encumbrance, or any other right of another against any
                                         of the Patent Rights.

 

		5.02	Survival
                                         of Vendor Representations, Warranties and Covenants

 

(1)         The representations and warranties of the Vendors set forth in Section 5.01 shall survive the completion of the sale and
purchase of the Patent Rights herein provided for and shall continue in full force and effect for the benefit of Purchaser.

 

(2)         The covenants of the Vendors set forth in this Agreement shall survive the completion of the sale and purchase of the Patent Rights
herein provided for and, notwithstanding such completion, shall continue in full force and effect for the benefit of Purchaser
in accordance with the terms thereof.

 

		5.03	Purchaser’s
                                         Representations and Warranties

 

Purchaser
represents and warrants to the Vendors, as of the Effective Date and the Effective Sale Date, and acknowledges and confirms that
the Vendors are relying upon the representations and warranties in connection with the purchase by Purchaser of the Patent Rights,
that:

 

		(a)	Purchaser
                                         is a corporation duly incorporated, organized and subsisting under the laws of the Province
                                         of Alberta, Canada;

 

		(b)	Purchaser
                                         has the power, authority and right to enter into and deliver this Agreement and to complete
                                         all transactions to be completed by Purchaser contemplated hereunder, and the execution,
                                         delivery and performance of this Agreement and the consummation of the transactions contemplated
                                         under this Agreement have been duly and validly authorized and approved by all necessary
                                         corporate action on the part of Purchaser;

 

		(c)	this
                                         Agreement and all other agreements, documents and instruments to be executed by Purchaser
                                         pursuant hereto have been validly executed and delivered by Purchaser, and are valid
                                         and enforceable against Purchaser in accordance with their terms, subject to applicable
                                         bankruptcy and insolvency laws and to equitable remedies being always in the discretion
                                         of a court;

 

		(d)	Neither
                                         the entering into nor the delivery of this Agreement nor the completion of the transactions
                                         contemplated hereby by Purchaser will result in the violation of:

 

		(i)	any
                                         of the provisions of the constating documents or by-laws of Purchaser;

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
14 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

		(ii)	any
                                         agreement or other instrument to Purchaser is a party or by which Purchaser is bound;
                                         or

 

		(iii)	any
                                         Applicable Law; and

 

		(e)	no
                                         order has been made or petition presented or resolution passed for the winding up of
                                         Purchaser nor has any distress execution or other process been levied against Purchaser
                                         or action taken to repossess goods in the possession of Purchaser. No steps have been
                                         taken for the appointment of an administrator or receiver of any part of the property
                                         of Purchaser. No floating charge created by Purchaser has crystallised and there are
                                         no circumstances likely to cause such floating charge to crystallise. Purchaser has not
                                         been party to any transaction that could be avoided in a winding up. Purchaser has not
                                         made or proposed any arrangement or composition with its creditors or any class of its
                                         creditors. Purchaser has not been party to a transaction pursuant to or as a result of
                                         which an asset owned, purportedly owned or otherwise held by it is liable to be transferred
                                         or re-transferred to another person or which gives or may give rise to a right of compensation
                                         or other payment in favour of another person under the provisions of the Bankruptcy
                                         Act (Canada).

 

		5.04	Survival
                                         of Purchaser’s Representations, Warranties and Covenants

 

(1)         The representations and warranties of Purchaser set forth in Section 5.02 shall survive the completion of the sale and purchase
of the Patent Rights herein provided for and, notwithstanding such completion, shall continue in full force and effect for the
benefit of the Vendors.

 

(2)         The covenants of Purchaser set forth in this Agreement shall survive the completion of the sale and purchase of the Patent Rights
herein provided for and, notwithstanding such completion, shall continue in full force and effect for the benefit of the Vendors
in accordance with the terms thereof.

 

Article 6
– COVENANTS

 

		6.01	Covenants
                                         of the Vendors

 

The
Vendors shall indemnify and save harmless Purchaser and the directors, officers, employees and agents of Purchaser from and against
any and all Claims directly or indirectly suffered by any of the same resulting from:

 

		(a)	any
                                         breach by either of the Vendors of, or inaccuracy or misrepresentation contained in,
                                         any representation or warranty set forth in:

 

		(i)	this
                                         Agreement;

 

		(ii)	any
                                         other agreement to be entered into in connection with the transactions contemplated hereby;
                                         and

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
15 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

		(b)	any
                                         Claim in respect of action taken or omitted to be taken by either of the Vendors in relation
                                         to the Patent Rights prior to the Effective Sale Date.

 

		6.02	Covenants
                                         of Purchaser

 

Purchaser
shall indemnify and save harmless the Vendors and the directors, officers, employees and agents of the Vendors from and against
any and all Claims directly or indirectly suffered by either of the Vendors resulting from any breach by Purchaser of, or inaccuracy
or misrepresentation contained in, any representation or warranty set forth in:

 

		(i)	this
                                         Agreement; and

 

		(ii)	any
                                         other agreement to be entered into in connection with the transactions contemplated hereby.

 

		6.03	Indemnification
                                         Procedure

 

Each
Party’s agreement to indemnify and hold the other harmless is conditioned upon the indemnified Party (i) providing written
notice to the indemnifying Party of any Claim, arising out of the indemnified activities within thirty (30) days after the indemnified
Party has knowledge of such Claim, (ii) permitting the indemnifying Party to assume full responsibility to investigate, prepare
for and defend against any such Claim, (iii) assisting the indemnifying Party, at the indemnifying Party’s reasonable expense,
in the investigation of, preparation of and defense of any such Claim; and (iv) not compromising or settling such claim or demand
without the indemnifying Party’s prior written consent; provided that if the Party entitled to indemnification fails to
promptly notify the indemnifying Party pursuant to the foregoing clause (i), the indemnifying Party will only be relieved of its
indemnification obligation to the extent prejudiced by such failure.

 

		6.04	Limitation
                                         of Liability 

 

Except
with respect to breaches of the obligations under Article 9 – , in no event shall either Party be liable for special,
indirect or consequential damages, losses, costs, charges, claims, demands, fees or expenses of any nature or kind.

 

Article 7
– TECHNOLOGY TRANSFER

 

		7.01	Technology
                                         Transfer

 

As
of the Effective Sale Date, the Vendors and Purchaser will cooperate in the filing and execution of any and all documents necessary
to effect the assignment to Purchaser of the Patent Rights, including the filing of assignments or other transfer of title covenants
with the U.S. Patent and Trademark Office and foreign patent offices as applicable to the Patent Rights. Within thirty (30) days
from the Effective Sale Date, the Vendors will notify all lawyers, patent agents, patent attorneys, and other patent professionals
handling the prosecution of the Patent Rights to contact the Purchaser to provide an immediate status update on the Patent Rights
and to prepare the documents necessary to transfer the Patent Rights to Purchaser. The cost of recording assignments of the Patent
Rights will be borne by Purchaser. Within forty-five (45) days from the Effective Sale Date, the Vendors and their counsel will
use their reasonable best efforts to transfer all files and supporting documents relating to the Patent Rights to Purchaser, including
but not limited to, all initial invention disclosure documents, all documents sent to the U.S. Patent and Trademark Office and
other patent granting authorities regarding inventions and claims, copies of all draft patent applications, copies of all filing
or prosecution documents submitted to the patent offices, and all file wrappers. Conception notebooks and all other documents
in the possession or under the control of either of the Vendors or their counsel relating to conception and/or reduction to practice,
such as scientist notebooks shall be retained by the Vendors and made available to Purchaser upon Purchaser’s reasonable
request. All documents to be provided to Purchaser hereunder are to be sent by expedited delivery service.

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
16 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

Article 8
– PATENT MAINTENANCE AND

PROSECUTION RESPONSIBILITIES

 

		8.01	Patent
                                         Maintenance

 

On
and after the Effective Sale Date, Purchaser will take responsibility for any action or proceeding involving the Patent Rights.
The cost of recording the assignment of Patent Rights shall be borne solely by Purchaser. If Purchaser elects not to take such
responsibility involving Patent Right(s) in a particular country then Purchaser will notify the Vendors thirty (30) days before
the time the future action is due, and thereafter the Vendors may undertake such responsibility. If the Vendors elect to do so,
Purchaser will grant any necessary authority to the Vendors. If the Vendors determine to take such responsibility, it shall do
so at its own expense.

 

		8.02	Notice
                                         of Infringement

 

Purchaser
shall promptly notify the Vendors in writing of any infringement of any assigned Patent Right(s) of which it becomes aware.

 

		8.03	Enforcement
                                         of Patents

 

Except
as otherwise set forth in this Section, Purchaser may, but shall not be required to, prosecute any alleged infringement or threatened
infringement of any assigned Patent Right(s) of which it is aware or which is brought to its attention. Purchaser shall act in
its own name and at its own expense. If Purchaser has failed to prosecute under the first sentence of this Section with respect
to alleged or threatened infringement relating to any Patent Right(s) (i) two (2) months after it has been notified in writing
of such alleged infringement, or (ii) one (1) month before the time limit, if any, set forth in the Applicable Laws for the
filing of such actions, whichever comes first, the Vendors may, but shall not be required to, prosecute any such alleged infringement
or threatened infringement of any such Patent Rights. In any such event, the Vendors will be free to act in its own name and at
its own expense. Upon Vendors prosecuting any such alleged infringement or threatened infringement, Purchaser agrees to cooperate
in Vendors’ efforts, including but not limited to acting as a named party in any litigation and/or transferring rights to Vendors
only to the extent necessary to act as a valid party with standing for such litigation.

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
17 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

Article 9
– CONFIDENTIALITY

 

		9.01	Disclosure
                                         and Use Restriction. 

 

(1)         Except as expressly provided herein, the Parties agree that each Party will keep completely confidential and will not publish,
submit for publication or otherwise disclose, and will not use for any purpose except for the purposes contemplated by this Agreement,
any Confidential Information received from the other Party. Notwithstanding the foregoing, the Purchaser may publish or disclose
at the Purchaser’s discretion technical or research data or results that are the Vendors’ Confidential Information
and that are customary to disclose in the life sciences industry for scientific or business reasons, provided that the data or
results disclosed do not compromise the Vendors’ Intellectual Property Rights, including trade secrets.

 

		9.02	Authorized
                                         Disclosure.

 

(1)         Each Party may disclose Confidential Information of the other Party to the extent that such disclosure is:

 

		(a)	made
                                         in response to a valid order of a court of competent jurisdiction; provided, however,
                                         that such Party will first have given notice to such other Party and given such other
                                         Party a reasonable opportunity to quash such order and to obtain a protective order requiring
                                         that the Confidential Information and documents that are the subject of such order be
                                         held in confidence by such court or agency or, if disclosed, be used only for the purposes
                                         for which the order was issued; and provided further that if a disclosure order is not
                                         quashed or a protective order is not obtained, the Confidential Information disclosed
                                         in response to such court or governmental order will be limited to that information which
                                         is legally required to be disclosed in response to such court or governmental order,
                                         as determined in good faith by counsel to the Party that is obligated to disclose Confidential
                                         Information pursuant to such order,

 

		(b)	otherwise
                                         required by law or regulation; provided, however, that the Party that is so required
                                         will provide such other Party with notice of such disclosure in advance thereof to the
                                         extent practicable;

 

		(c)	made
                                         by such Party to the Regulatory Authorities as necessary for the development or commercialization
                                         of a Product in a country, as required in connection with any filing, application or
                                         request for Regulatory Approval or as required by applicable securities laws and regulations;
                                         provided, however, that reasonable measures will be taken to assure confidential treatment
                                         of such information;

 

		(d)	made
                                         by such Party, in connection with the performance of this Agreement, to such Party’s
                                         Affiliates, or to directors, officers, employees, consultants, representatives or agents
                                         of such Party or its Affiliates, in each case on a need to know basis and solely for
                                         use of such information as permitted in this Agreement, and provided that each of the
                                         foregoing recipients prior to disclosure must be bound by obligations of confidentiality
                                         and non-use at least equivalent in scope to those set forth in this Article 9 –
                                         ; or

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
18 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

		(e)	made
                                         by such Party to existing or potential acquirers; investment bankers; existing or potential
                                         investors, merger candidates, venture capital firms or other financial institutions or
                                         investors for purposes of obtaining financing; in each case on a need to know basis,
                                         and provided that each of the foregoing recipients prior to disclosure must be bound
                                         by obligations of confidentiality and non-use at least equivalent in scope to those set
                                         forth in this Article 9 – .

 

(2)        
In addition, the Purchaser may disclose Confidential Information of the Vendors to the extent that such disclosure is made to
the Purchaser’s existing or potential sublicensees, licensors, or potential collaborators or bona fide strategic partners,
in each case on a need to know basis and solely for use of such information as permitted in this Agreement, and provided that
the Purchaser causes each of the foregoing recipients must be bound by obligations of confidentiality and non-use at least equivalent
in scope to those set forth in this Article 9 – .

 

		9.03	Press
                                         Releases. 

 

Press
releases or other similar public communication by either Party relating to this Agreement will be approved in advance by the other
Party, which approval will not be unreasonably withheld or delayed. The Parties agree in advance that no financial terms related
to this transaction will be disclosed in any press release related to or describing the transaction. Notwithstanding the foregoing,
communications required by Applicable Law, and disclosures of information for which consent has previously been obtained will
not require advance approval, but will be provided to the other Party as soon as practicable after the release or communication
thereof.

 

Article 10
– GENERAL

 

		10.01	Further
                                         Assurances

 

Each
of the Vendors and Purchaser shall from time to time execute and deliver all such further documents and instruments and do all
acts and things as the other Party may, either before or after the Effective Date, reasonably require to effectively carry out
or better evidence or perfect the full intent and meaning of this Agreement, including, without limitation, the execution and
delivery to Purchaser of one or more assignments. Without limiting the generality of the foregoing, this Agreement shall operate,
without further act or formality, as a transfer to Purchaser for all purposes as at the Effective Sale Date of all the property
and rights transferred and acquired hereunder. The Vendors shall forthwith and from time to time hereafter execute and deliver
or cause to be executed and delivered to Purchaser all deeds, transfers, assignments and other instruments in writing and further
assurances as Purchaser or its counsel shall reasonably require from any of them to effectuate such acquisition and transfer;
and, for greater certainty, the Vendors shall hold all of the property and rights transferred and acquired hereunder, to the extent
that the same shall not have been effectually transferred to or pursuant to this Agreement, in trust for and as the property of
Purchaser pending effective transfer thereof.

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
19 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

Article 11
– MISCELLANEOUS

 

		11.01	Assignment.

 

Without
the prior written consent of the other Party hereto, neither Party will sell, transfer, assign, delegate, pledge 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 either Party hereto may assign or transfer this Agreement or any of its rights or obligations
hereunder without the consent of the other Party to any Affiliate or to any Third Party successor in interest with which it has
merged, consolidated, amalgamated, or combined, including by plan of arrangement, or to which it has transferred all or substantially
all of its assets or stock to which this Agreement relates, if in any such event the assignee or surviving entity assumes in writing
all of the assigning Party’s obligations under this Agreement. Any purported assignment or transfer in violation of this
Section 11.01 will be void ab initio and of no force or effect.

 

		11.02	Severability.

 

If
any provision of this Agreement is held to be illegal, invalid or unenforceable by a court of competent jurisdiction, such adjudication
will not affect or impair, in whole or in part, the validity, enforceability, or legality of any remaining portions of this Agreement.
All remaining portions will remain in full force and effect as if the original Agreement had been executed without the invalidated,
unenforceable or illegal part.

 

		11.03	Governing
                                         Law.

 

This
Agreement will be governed by and construed in accordance with the laws of province of Alberta and the federal laws of Canada
applicable therein without reference to any rules of conflicts of laws. The United Nations Convention on Contracts for the International
Sale of Goods and any implementation of such Convention will not apply in any way to this Agreement or to the transactions contemplated
by this Agreement or otherwise to create any rights or to impose any duties or obligations on any Party to this Agreement.

 

		11.04	Dispute
                                         Resolution.

 

The
Parties agree that, in the event of any dispute under this Agreement, the Parties shall first seek to resolve such dispute in
good faith. If such dispute cannot be resolved despite the Parties’ good faith efforts within a ninety (90) day period and
a Party wishes to pursue the matter further, each such dispute, controversy or claim will be finally resolved by binding arbitration
in accordance with and under the rules of the American Arbitration Association, and judgment on the arbitration award may be entered
in any court having jurisdiction thereof. The arbitration will be conducted by a panel of three persons experienced in the life
sciences business. Within thirty (30) days after initiation of arbitration, each Party will select one person to act as arbitrator
and the two Party- selected arbitrators will select a third arbitrator within thirty (30) days of their appointment. No individual
will be appointed to arbitrate a dispute pursuant to this Agreement unless he or she agrees in writing to be bound by the provisions
of this Section 11.04. The place of arbitration will be Orlando, FL, or such other location as agreed by the Parties in writing.
Either Party may apply to the arbitrators or to a court for interim injunctive relief until the arbitration award is rendered
or the controversy is otherwise resolved.

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
20 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

		11.05	Notices.
                                         

 

All
notices or other communications that are required or permitted hereunder will be in writing and delivered personally with acknowledgement
of receipt, sent by facsimile (and promptly confirmed by personal delivery, registered or certified mail or overnight courier
as provided herein), sent by nationally-recognized overnight courier or sent by registered or certified mail, postage prepaid,
return receipt requested, addressed as follows:

 

If
to the Purchaser, to:

 

ReVasCor
Inc.

 

29
Aspen Meadows Park

Calgary, Alberta, Canada

T3H 5Z7

 

Attention:
President & CEO

 

Email:
adavidoff@revascorinc.com

 

If
to the Vendors, to:

 

Richard
Johnson 

15857
East Aberdeen Avenue, 

Centennial,
Colorado 

80016 

303-518-6930 

Email:
Richard.Johnson@ucdenver.edu

 

or
to such other address as the Party to whom notice is to be given may have furnished to the other Party in writing in accordance
herewith. Any such communication will be deemed to have been given (i) when delivered, if personally delivered or sent by facsimile
or other means of electronic communication on a Business Day; (ii) on the Business Day after dispatch, if sent by nationally-recognized
overnight courier, and (iii) on the fifth (5th) Business Day following the date of mailing, if sent by mail. It
is understood and agreed that this Section 11.05 is not intended to govern the day-to-day business communications necessary
between the Parties in performing their duties, in due course, under the terms of this Agreement.

 

		11.06	Entire
                                         Agreement; Modifications.

 

This
Agreement sets forth and constitutes the entire agreement and understanding between the Parties with respect to the subject matter
hereof and all prior agreements, understanding, promises and representations, whether written or oral, with respect thereto are
superseded hereby. Each Party confirms that it is not relying on any representations or warranties of the other Party except as
specifically set forth herein. No amendment, modification, release or discharge will be binding upon the Parties unless in writing
and duly executed by authorized representatives of both Parties.

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
21 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

		11.07	Relationship
                                         of the Parties.

 

It
is expressly agreed that the Parties will be independent contractors of one another and that the relationship between the Parties
will not constitute a partnership, joint venture or agency.

 

		11.08	Waiver.
                                         

 

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 will be effective unless set forth in a written instrument duly executed by or on behalf of the Party waiving such term
or condition. Any such waiver will not be deemed a waiver of any other right or breach hereunder.

 

		11.09	Counterparts
                                         and Delivery.

 

This
Agreement may be executed in two (2) or more counterparts, each of which will be deemed an original, but all of which together
will constitute one and the same instrument. Delivery of an executed signature page to this Agreement by any Party by electronic
transmission will be as effective as delivery of a manually executed copy of this Agreement by such Party.

 

		11.10	No
                                         Benefit to Third Parties.

 

The
representations, warranties, 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 will not be construed as conferring any rights on any other parties.

 

		11.11	Further
                                         Assurance. 

 

Both
Parties will 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 to carry out the provisions and purposes of this Agreement.

 

		11.12	Remedies
                                         not Exclusive.

 

The
remedies provided to the Parties under this Agreement are cumulative and not exclusive to each other, and any such remedy will
not be deemed or construed to affect any right which any of the Parties is entitled to seek at law, in equity or by statute.

 

		11.13	Force
                                         Majeure.

 

The
failure or delay of any Party to this Agreement to perform any obligation under this Agreement solely by reason of acts of God,
acts of civil or military authority, civil disturbance, war, strikes or other labour disputes or disturbances, fire, transportation
contingencies, shortage of facilities, fuel, energy, labour or materials, or laws, regulations, acts or orders of any governmental
agency or official, other catastrophes, or any other circumstance beyond its reasonable control (“Force Majeure”)
will be deemed not to be a breach of this Agreement so long as the Party so prevented from complying with this Agreement has not
contributed to such Force Majeure, has used reasonable efforts to avoid such Force Majeure or to ameliorate its effects, and continues
to take all actions within its power to comply as fully as possible with the terms of this Agreement. In the event of any such
Force Majeure, performance of the obligations will be deferred until the Force Majeure ceases. This Section will not apply to
excuse a failure to make any payment when due.

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
22 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

		11.14	Number
                                         and Gender.

 

Unless
the context of this Agreement otherwise requires, to the extent necessary so that each clause will be given the most reasonable
interpretation, the singular number will include the plural and vice versa, the verb will be construed as agreeing with the word
so substituted, words importing the masculine gender will include the feminine and neuter genders, words importing persons will
include firms and corporations and words importing firms and corporations will include individuals.

 

		11.15	Headings
                                         and Captions.

 

The
headings and captions of sections and paragraphs contained in this Agreement are all inserted for convenience of reference only
and are not to be considered when interpreting this Agreement.

 

		11.16	Enurement.

 

Subject
to the restrictions on transfer contained in this Agreement, this Agreement will enure to the benefit of and be binding on the
Parties and their respective successors and permitted assigns.

 

		11.17	Currency.

 

Unless
otherwise indicated, all references to currency herein are to U.S. dollars.

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
23 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

IN
WITNESS WHEREOF the Parties have executed this Agreement.

 

	DR. RICHARD JOHNSON ON BEHALF OF VENDORS	 	REVASCOR INC.
	 	 	 
	per:	 	per:
	 	 	 
	 	 	 
	Name: Dr. Richard Johnson	 	Name: Allen Davidoff
	 	 	Title: President and CEO
	 	 	 
	[DR. TAKAHIKO NAKAGAWA]	 	REVASCOR INC.
	per:	 	Per:
	 	 	 
	 	 	 
	Name: Dr. Takahiko Nakagawa	 	Name: Dr. Alan Moore
	 	 	Title:
Director, Board Member 

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
24 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”

    

 

Schedule A

[REDACTED]

 

    [ REDACTED ] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.”
 
A-1EX-10.3

  Exhibit 10.3

   

  VIRACTA THERAPEUTICS, INC.

  2021 INDUCEMENT EQUITY INCENTIVE PLAN

  1.Purposes of the Plan.  The purpose of this Plan is to attract and retain the best available personnel for positions of substantial responsibility by providing an inducement material to individuals’ entering into employment with the Company or any Parent or Subsidiary of the Company.  The Plan permits the grant of Nonstatutory Stock Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, Performance Units and Performance Shares.  Each Award under the Plan is intended to qualify as an employment inducement grant under the Listing Rule 5635(c)(4).

  2.Definitions.  As used herein, the following definitions will apply:

  (a)“Administrator” means the Board or any of its Committees as will be administering the Plan, in accordance with Section 4 of the Plan.

  (b)“Applicable Laws” means the legal and regulatory requirements relating to the administration of equity-based awards, including but not limited to the related issuance of shares of Common Stock, including but not limited to, under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any non-U.S. country or jurisdiction where Awards are, or will be, granted under the Plan.

  (c)“Award” means, individually or collectively, a grant under the Plan of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units or Performance Shares.

  (d)“Award Agreement” means the written or electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan.  The Award Agreement is subject to the terms and conditions of the Plan.

  (e)“Board” means the Board of Directors of the Company.

  (f)“Change in Control”  means the occurrence of any of the following events following the date the Board approves this Plan:

  (i)A change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than fifty percent (50%) of the total voting power of the stock of the Company; provided, however, that for purposes of this subsection, (A) the acquisition of additional stock by any one Person, who is considered to own more than fifty percent (50%) of the total voting power of the stock of the Company will not be considered a Change in Control, and (B) if the stockholders of the Company immediately before such change in ownership continue to retain immediately after the change in ownership, in substantially the same proportions as their ownership of shares of the Company’s voting stock immediately prior to the change in ownership, the direct or indirect beneficial ownership of fifty percent (50%) or more of the total voting power of the stock of the Company 

  1

  

  Exhibit 10.3

   

  or of the ultimate parent entity of the Company, such event will not be considered a Change in Control under this subsection (i).  For this purpose, indirect beneficial ownership will include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company, as the case may be, either directly or through one or more subsidiary corporations or other business entities; or 

  (ii)A change in the effective control of the Company which occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election.  For purposes of this subsection (ii), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or

  (iii)A change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such Person) assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection (iii), the following will not constitute a change in the ownership of a substantial portion of the Company’s assets: (A) a transfer to an entity that is controlled by the Company’s stockholders immediately after the transfer, or (B) a transfer of assets by the Company to: (1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s stock, (2) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (3) a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the Company, or (4) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in this subsection (iii)(B)(3).  For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

  For purposes of this definition, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.

  Notwithstanding the foregoing, a transaction will not be deemed a Change in Control unless the transaction qualifies as a change in control event within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations and Internal Revenue Service guidance that has been promulgated or may be promulgated thereunder from time to time.

  Further and for the avoidance of doubt, a transaction will not constitute a Change in Control if: (i) its sole purpose is to change the jurisdiction of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.

  2

  

  Exhibit 10.3

   

  (g)“Code” means the U.S. Internal Revenue Code of 1986, as amended.  Reference to a specific section of the Code or regulation thereunder will include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

  (h)“Committee” means a committee of Directors or of other individuals satisfying Applicable Laws appointed by the Board, or a duly authorized committee of the Board, in accordance with Section 4 hereof.

  (i)“Common Stock” means the common stock of the Company.

  (j)“Company” means Viracta Therapeutics, Inc., a Delaware corporation, or any successor thereto.

  (k)“Consultant” means any natural person, including an advisor, engaged by the Company or a Parent or Subsidiary to render bona fide services to such entity, provided the services (i) are not in connection with the offer or sale of securities in a capital‐raising transaction, and (ii) do not directly promote or maintain a market for the Company’s securities, in each case, within the meaning of Form S-8 promulgated under the Securities Act, and provided, further, that a Consultant will include only those persons to whom the issuance of Shares may be registered under Form S-8 promulgated under the Securities Act.

  (l)“Director” means a member of the Board.

  (m)“Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code, provided that the Administrator in its discretion may determine whether a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from time to time.  

  (a)“Employee” means any person, including Officers and Directors, providing services as an employee to the Company or any Parent or Subsidiary of the Company.  Neither service as a Director nor payment of a director’s fee by the Company will be sufficient to constitute “employment” by the Company.  However, for the avoidance of doubt, a person who already is serving as a Director prior to becoming an Employee will not be eligible to be granted an Award under the Plan unless permitted under the Listing Rule 5635(c)(4).  The Company will determine in good faith and in the exercise of its discretion whether an individual has become or has ceased to be an Employee and the effective date of such individual’s employment or termination of employment, as the case may be.  For purposes of an individual’s rights, if any, under the Plan as of the time of the Company’s determination, all such determinations by the Company shall be final, binding and conclusive, notwithstanding that the Company or any court of law or governmental agency subsequently makes a contrary determination.

  (b)“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

  (c)“Exchange Program” means a program under which (i) outstanding Awards are surrendered or cancelled in exchange for awards of the same type (which may have higher or 

  3

  

  Exhibit 10.3

   

  lower exercise prices and different terms), awards of a different type, and/or cash, (ii) Participants would have the opportunity to transfer any outstanding Awards to a financial institution or other person or entity selected by the Administrator, and/or (iii) the exercise price of an outstanding Award is increased or reduced.  The Administrator will determine the terms and conditions of any Exchange Program in its sole discretion.

  (d)“Fair Market Value” means, as of any date, the value of Common Stock determined as follows:

  (iv)If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the New York Stock Exchange, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value will be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

  (v)If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share will be the mean between the high bid and low asked prices for the Common Stock on the day of determination (or, if no bids and asks were reported on that date, as applicable, on the last trading date such bids and asks were reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

  (vi)In the absence of an established market for the Common Stock, the Fair Market Value will be determined in good faith by the Administrator.

  The determination of fair market value for purposes of tax withholding may be made in the Administrator’s discretion subject to Applicable Laws and is not required to be consistent with the determination of Fair Market Value for other purposes.

  (e)“Incentive Stock Option” means an Option intended to qualify, and actually qualifies, as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

  (f)“Listing Rule” means the Listing Rules of The Nasdaq Stock Market LLC. Reference to any Listing Rule will include the terms and conditions of the Listing Rule and any applicable Interpretive Material and other guidance issued under the Listing Rule. 

  (g)“Nonstatutory Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.

  (h)“Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

  (i)“Option” means a stock option granted pursuant to the Plan.  All Options granted under the Plan shall constitute Nonstatutory Stock Options. 

  4

  

  Exhibit 10.3

   

  (j)“Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.

  (k)“Participant” means the holder of an outstanding Award.

  (l)“Performance Share” means an Award denominated in Shares which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine pursuant to Section 10.

  (m)“Performance Unit” means an Award which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine and which may be settled for cash, Shares or other securities or a combination of the foregoing pursuant to Section 10.

  (n)“Period of Restriction” means the period during which the transfer of Shares of Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture.  Such restrictions may be based on the passage of time, the achievement of target levels of performance, or the occurrence of other events as determined by the Administrator.

  (o)“Plan” means this Viracta Therapeutics, Inc. 2021 Inducement Equity Incentive Plan.

  (p)“Restricted Stock” means Shares issued pursuant to an Award of Restricted Stock under Section 7 of the Plan, or issued pursuant to the early exercise of an Option.

  (q)“Restricted Stock Unit” means a bookkeeping entry representing an amount equal to the Fair Market Value of one Share, granted pursuant to Section 8.  Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company.

  (r)“Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan.

  (s)“Section 16(b)”  means Section 16(b) of the Exchange Act.

  (t)“Section 409A” means Code Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations and U.S. Internal Revenue Service guidance that has been promulgated or may be promulgated thereunder from time to time.

  (u) “Securities Act” means the U.S. Securities Act of 1933, as amended.

  (v)“Service Provider” means an Employee, Director or Consultant.

  (w)“Share” means a share of the Common Stock, as adjusted in accordance with Section 13 of the Plan.

  (x)“Stock Appreciation Right” means an Award, granted alone or in connection with an Option, that pursuant to Section 9 is designated as a Stock Appreciation Right.

  5

  

  Exhibit 10.3

   

  (y)“Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code.

  3.Stock Subject to the Plan.  

  (n)Stock Subject to the Plan.  Subject to the provisions of Section 13 of the Plan, the maximum aggregate number of Shares that may be issued under the Plan is equal to 1,000,000 Shares.  In addition, Shares may become available for issuance under the Plan pursuant to Section 3(b).  The Shares may be authorized, but unissued, or reacquired Common Stock. 

  (z)Lapsed Awards.  If an Award expires or becomes unexercisable without having been exercised in full, is surrendered pursuant to an Exchange Program, or, with respect to Restricted Stock, Restricted Stock Units, Performance Units or Performance Shares, is forfeited to or repurchased by the Company due to failure to vest, the unpurchased Shares (or for Awards other than Options or Stock Appreciation Rights the forfeited or repurchased Shares), which were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated).  With respect to Stock Appreciation Rights, only Shares actually issued (i.e., the net Shares issued) pursuant to a Stock Appreciation Right will cease to be available under the Plan; all remaining Shares under Stock Appreciation Rights will remain available for future grant or sale under the Plan (unless the Plan has terminated).  Shares that actually have been issued under the Plan under any Award will not be returned to the Plan and will not become available for future distribution under the Plan; provided, however, that if Shares issued pursuant to Awards of Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units are repurchased by the Company or are forfeited to the Company, such Shares will become available for future grant under the Plan.  Shares used to pay the exercise price of an Award or to satisfy the tax withholding obligations related to an Award will become available for future grant or sale under the Plan.  To the extent an Award under the Plan is paid out in cash rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance under the Plan. 

  (aa)Share Reserve.  The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as will be sufficient to satisfy the requirements of the Plan.

  4.Administration of the Plan. 

  (o)Procedure.

  (vii)Multiple Administrative Bodies.  Different Committees with respect to different groups of Employees or Participants may administer the Plan.

  (viii)Rule 16b-3.  To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder will be structured to satisfy the requirements for exemption under Rule 16b-3.

  (ix)Other Administration.  Other than as provided above, the Plan will be administered by (A) the Board or (B) a Committee, which committee will be constituted to satisfy Applicable Laws.  

  6

  

  Exhibit 10.3

   

  (i)Approval.  Awards granted under the Plan must be approved by a majority of the Company’s “Independent Directors,” as defined in the Listing Rules, or the independent Compensation Committee of the Board, in each case acting as the Administrator.  

  (p)Powers of the Administrator.  Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator will have the authority, in its discretion:

  (x)to determine the Fair Market Value;

  (xi)to select the Employees to whom Awards may be granted hereunder, subject to Section 5 (which Awards will be intended as a material inducement to the individual becoming an Employee or to otherwise be permitted under Nasdaq Listing Rule 5635(c) and the official guidance thereunder);

  (xii)to determine the number of Shares to be covered by each Award granted hereunder;

  (xiii)to approve forms of Award Agreements for use under the Plan;

  (xiv)to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder (such terms and conditions include, but are not limited to, the exercise price, the time or times when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator will determine);

  (xv)to institute and determine the terms and conditions of an Exchange Program, provided however, that no Exchange Program may be implemented without prior approval from the Company’s stockholders;

  (xvi)to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan; 

  (ii)to prescribe, amend and rescind rules and regulations and adopt sub-plans relating to the Plan, including rules, regulations and sub-plans for the purposes of facilitating compliance with foreign laws, easing the administration of the Plan and/or taking advantage of tax-favorable treatment for Awards granted to Employees outside the U.S., in each case as the Administrator may deem necessary or advisable;

  (iii)to modify or amend each Award (subject to Section 18 of the Plan), including but not limited to the discretionary authority to extend the post-termination exercisability period of Awards and to extend the maximum term of an Option;

  (iv)to allow Participants to satisfy tax withholding obligations in such manner as prescribed in Section 14 of the Plan;

  7

  

  Exhibit 10.3

   

  (v)to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by the Administrator;

  (xvii)to allow a Participant to defer the receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant under an Award; and

  (xviii)to make all other determinations deemed necessary or advisable for administering the Plan.

  (q)Effect of Administrator’s Decision.  The Administrator’s decisions, determinations and interpretations will be final and binding on all Participants and any other holders of Awards and will be given the maximum deference permitted by Applicable Laws.

  5.Eligibility.  Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares and Performance Units may be granted to Employees so long as the following requirements are met:

  (r)The Employee was not previously an Employee or Director, or the Employee became employed by the Company or any of its Parent or Subsidiaries following a bona-fide period of non‐employment or non-service; and

  (s)The grant of the Award or Awards to the Employee was an inducement material to the Employee’s entering into employment with the Company (or any of its Parent or Subsidiaries, as applicable) in accordance with the Listing Rule. 

  Notwithstanding the foregoing, an Employee may be granted an Award in connection with a merger or acquisition to the extent permitted by Listing Rule 5635(c). 

  6.Stock Options.

  (t)Grant of Options.  Subject to the terms and provisions of the Plan, including without limitation the eligibility requirements of Section 5, the Administrator, at any time and from time to time, may grant Options to Employees in such amounts as the Administrator, in its sole discretion, will determine. 

  (u)Stock Option Agreement.  Each Award of an Option will be evidenced by an Award Agreement that will specify the exercise price, the number of Shares subject to the Option, the exercise restrictions, if any, applicable to the Option, and such other terms and conditions as the Administrator, in its sole discretion, will determine. 

  (v)Term of Option.  The term of each Option will be stated in the Award Agreement, provided that in the absence of a specified term in the Award Agreement, the term of such Option will be ten (10) years from the date of grant.

  8

  

  Exhibit 10.3

   

  (w)Option Exercise Price and Consideration.

  (xix)Exercise Price.  The per share exercise price for the Shares to be issued pursuant to exercise of an Option will be determined by the Administrator, subject to the following:

  (1)The per Share exercise price will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

  (2)Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant pursuant to a transaction described in, and in a manner consistent with, Section 424(a) of the Code.

  (xx)Waiting Period and Exercise Dates.  At the time an Option is granted, the Administrator will fix the period within which the Option may be exercised and will determine any conditions that must be satisfied before the Option may be exercised.

  (xxi)Form of Consideration.  The Administrator will determine the acceptable form of consideration for exercising an Option, including the method of payment.  Such consideration may consist entirely of: (1) cash; (2) check; (3) promissory note, to the extent permitted by Applicable Laws; (4) other Shares, provided that such Shares have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option will be exercised and provided that accepting such Shares will not result in any adverse accounting consequences to the Company, as the Administrator determines in its sole discretion; (5) consideration received by the Company under a broker-assisted (or other) cashless exercise program (whether through a broker or otherwise) implemented by the Company in connection with the Plan; (6) by net exercise; (7) such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws;  or (8)  any combination of the foregoing methods of payment.

  (x)Exercise of Option.

  (xxii)Procedure for Exercise; Rights as a Stockholder.  Any Option granted hereunder will be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement.  An Option may not be exercised for a fraction of a Share.

  An Option will be deemed exercised when the Company receives: (i) a notice of exercise (in such form as the Administrator may specify from time to time) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised (together with applicable tax withholdings).  Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Award Agreement and the Plan.  Shares issued upon exercise of an Option will be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant and his or her spouse.  Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the Shares subject to an 

  9

  

  Exhibit 10.3

   

  Option, notwithstanding the exercise of the Option.  The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised.  No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 13 of the Plan.

  Exercising an Option in any manner will decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

  (xxiii)Termination of Relationship as a Service Provider.  If a Participant ceases to be a Service Provider, other than upon the Participant’s termination as the result of the Participant’s death or Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement).  In the absence of a specified time in the Award Agreement, the Option will remain exercisable for three (3) months following the Participant’s termination.  Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan.  If after termination the Participant does not exercise his or her Option within the time specified by the Administrator, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

  (xxiv)Disability of Participant.  If a Participant ceases to be a Service Provider as a result of the Participant’s Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement).  In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months following the Participant’s termination.  Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan.  If after termination the Participant does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

  (xxv)Death of Participant.  If a Participant dies while a Service Provider, the Option may be exercised following the Participant’s death within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of death (but in no event may the Option be exercised later than the expiration of the term of such Option as set forth in the Award Agreement), by the Participant’s designated beneficiary, provided the Administrator has permitted the designation of a beneficiary and provided such beneficiary has been designated prior to Participant’s death in a form acceptable to the Administrator.  If the Administrator has not permitted the designation of a beneficiary or if no such beneficiary has been designated by the Participant, then such Option may be exercised by the personal representative of the Participant’s estate or by the person(s) to whom the Option is transferred pursuant to the Participant’s will or in accordance with the laws of descent and distribution.  In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months following Participant’s death.  Unless otherwise provided by the Administrator, if at the time of 

  10

  

  Exhibit 10.3

   

  death Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will immediately revert to the Plan.  If the Option is not so exercised within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.  

  (xxvi)Tolling Expiration.  A Participant’s Award Agreement may also provide that:

  (3)if the exercise of the Option following the termination of Participant’s status as a Service Provider (other than upon the Participant’s death or Disability) would result in liability under Section 16(b), then the Option will terminate on the earlier of (A) the expiration of the term of the Option set forth in the Award Agreement, or (B) the tenth (10th) day after the last date on which such exercise would result in liability under Section 16(b); or

  (4)if the exercise of the Option following the termination of the Participant’s status as a Service Provider (other than upon the Participant’s death or Disability) would be prohibited at any time solely because the issuance of Shares would violate the registration requirements under the Securities Act, then the Option will terminate on the earlier of (A) the expiration of the term of the Option or (B) the expiration of a period of thirty (30)-day period after the termination of the Participant’s status as a Service Provider during which the exercise of the Option would not be in violation of such registration requirements. 

  7.Restricted Stock.

  (y)Grant of Restricted Stock.  Subject to the terms and provisions of the Plan, including without limitation the eligibility requirements of Section 5, the Administrator, at any time and from time to time, may grant Shares of Restricted Stock to Employees in such amounts as the Administrator, in its sole discretion, will determine.

  (z)Restricted Stock Agreement.  Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the Period of Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion, will determine.  Unless the Administrator determines otherwise, the Company as escrow agent will hold Shares of Restricted Stock until the restrictions on such Shares have lapsed.

  (aa)Transferability.  Except as provided in this Section 7 or the Award Agreement, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction.

  (bb)Other Restrictions.  The Administrator, in its sole discretion, may impose such other restrictions on Shares of Restricted Stock as it may deem advisable or appropriate.

  (cc)Removal of Restrictions.  Except as otherwise provided in this Section 7, Shares of Restricted Stock covered by each Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period of Restriction or at such other time as the Administrator may determine.  The Administrator, in its discretion, may accelerate the time at which any restrictions will lapse or be removed.  

  11

  

  Exhibit 10.3

   

  (dd)Voting Rights.  During the Period of Restriction, Service Providers holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise.

  (ee)Dividends and Other Distributions.  During the Period of Restriction, Service Providers holding Shares of Restricted Stock will be entitled to receive all dividends and other distributions paid with respect to such Shares, unless the Administrator provides otherwise.  If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid.

  (ff)Return of Restricted Stock to Company.  On the date set forth in the Award Agreement, the Restricted Stock for which restrictions have not lapsed will revert to the Company and again will become available for grant under the Plan.

  8.Restricted Stock Units.

  (gg)Grant.  Subject to the terms and provisions of the Plan, including without limitation the eligibility requirements of Section 5, Restricted Stock Units may be granted at any time and from time to time as determined by the Administrator.  After the Administrator determines that it will grant Restricted Stock Units under the Plan, it will advise the Participant in an Award Agreement of the terms, conditions, and restrictions related to the grant, including the number of Restricted Stock Units.

  (hh)Vesting Criteria and Other Terms.  The Administrator will set vesting criteria in its discretion, which, depending on the extent to which the criteria are met, will determine the number of Restricted Stock Units that will be paid out to the Participant.  The Administrator may set vesting criteria based upon the achievement of Company-wide, divisional, business unit, or individual goals (including, but not limited to, continued employment or service), applicable federal or state securities laws or any other basis determined by the Administrator in its discretion.

  (ii)Earning Restricted Stock Units.  Upon meeting the applicable vesting criteria, the Participant will be entitled to receive a payout as determined by the Administrator.  Notwithstanding the foregoing, at any time after the grant of Restricted Stock Units, the Administrator, in its sole discretion, may reduce or waive any vesting criteria that must be met to receive a payout.

  (jj)Form and Timing of Payment.  Payment of earned Restricted Stock Units will be made as soon as practicable after the date(s) determined by the Administrator and set forth in the Award Agreement.  The Administrator, in its sole discretion, may only settle earned Restricted Stock Units in cash, Shares, or a combination of both.

  (kk)Cancellation.  On the date set forth in the Award Agreement, all unearned Restricted Stock Units will be forfeited to the Company.

  12

  

  Exhibit 10.3

   

  9.Stock Appreciation Rights.  

  (ll)Grant of Stock Appreciation Rights.  Subject to the terms and conditions of the Plan, including without limitation the eligibility requirements of Section 5, a Stock Appreciation Right may be granted to Employees at any time and from time to time as will be determined by the Administrator, in its sole discretion.  

  (mm)Number of Shares.  The Administrator will have complete discretion to determine the number of Stock Appreciation Rights granted to any Employees.

  (nn)Exercise Price and Other Terms.  The per share exercise price for the Shares to be issued pursuant to exercise of a Stock Appreciation Right will be determined by the Administrator and will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.  Otherwise, the Administrator, subject to the provisions of the Plan, will have complete discretion to determine the terms and conditions of Stock Appreciation Rights granted under the Plan.

  (oo)Stock Appreciation Right Agreement.  Each Stock Appreciation Right grant will be evidenced by an Award Agreement that will specify the exercise price, the term of the Stock Appreciation Right, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will determine.

  (pp)Expiration of Stock Appreciation Rights.  A Stock Appreciation Right granted under the Plan will expire upon the date determined by the Administrator, in its sole discretion, and set forth in the Award Agreement.  Notwithstanding the foregoing, the rules of Section 6(b) relating to the maximum term and Section 6(c) relating to exercise also will apply to Stock Appreciation Rights.

  (qq)Payment of Stock Appreciation Right Amount.  Upon exercise of a Stock Appreciation Right, a Participant will be entitled to receive payment from the Company in an amount determined by multiplying:

  (xxvii)The difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times

  (xxviii)The number of Shares with respect to which the Stock Appreciation Right is exercised.

  At the discretion of the Administrator, the payment upon Stock Appreciation Right exercise may be in cash, in Shares of equivalent value, or in some combination thereof.

  10.Performance Units and Performance Shares. 

  (rr)Grant of Performance Units/Shares.  Subject to the terms and provisions of the Plan, including without limitation the eligibility requirements of Section 5, Performance Units and Performance Shares may be granted to Employees at any time and from time to time, as will be determined by the Administrator, in its sole discretion.  The Administrator will have complete 

  13

  

  Exhibit 10.3

   

  discretion in determining the number of Performance Units and Performance Shares granted to each Participant.

  (ss)Value of Performance Units/Shares.  Each Performance Unit will have an initial value that is established by the Administrator on or before the date of grant.  Each Performance Share will have an initial value equal to the Fair Market Value of a Share on the date of grant.

  (tt)Performance Objectives and Other Terms.  The Administrator will set performance objectives or other vesting provisions (including, without limitation, continued status as a Service Provider) in its discretion which, depending on the extent to which they are met, will determine the number or value of Performance Units/Shares that will be paid out to the Service Providers.  The time period during which the performance objectives or other vesting provisions must be met will be called the “Performance Period.”  Each Award of Performance Units/Shares will be evidenced by an Award Agreement that will specify the Performance Period, and such other terms and conditions as the Administrator, in its sole discretion, will determine.  The Administrator may set performance objectives based upon the achievement of Company-wide, divisional, business unit or individual goals (including, but not limited to, continued employment or service), applicable federal or state securities laws, or any other basis determined by the Administrator in its discretion.

  (uu)Earning of Performance Units/Shares.  After the applicable Performance Period has ended, the holder of Performance Units/Shares will be entitled to receive a payout of the number of Performance Units/Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance objectives or other vesting provisions have been achieved.  After the grant of a Performance Unit/Share, the Administrator, in its sole discretion, may reduce or waive any performance objectives or other vesting provisions for such Performance Unit/Share.

  (vv)Form and Timing of Payment of Performance Units/Shares.  Payment of earned Performance Units/Shares will be made as soon as practicable after the expiration of the applicable Performance Period.  The Administrator, in its sole discretion, may pay earned Performance Units/Shares in the form of cash, in Shares (which have an aggregate Fair Market Value equal to the value of the earned Performance Units/Shares at the close of the applicable Performance Period) or in a combination thereof.

  (ww)Cancellation of Performance Units/Shares.  On the date set forth in the Award Agreement, all unearned or unvested Performance Units/Shares will be forfeited to the Company, and again will be available for grant under the Plan.

  11.Leaves of Absence/Transfer Between Locations.  Unless the Administrator provides otherwise and subject to Applicable Laws, vesting of Awards granted hereunder will be suspended during any unpaid leave of absence.  A Participant will not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, or any Subsidiary.  

  14

  

  Exhibit 10.3

   

  12.Transferability of Awards.  Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Participant, only by the Participant.  If the Administrator makes an Award transferable, such Award will contain such additional terms and conditions as the Administrator deems appropriate.

  13.Adjustments; Dissolution or Liquidation; Merger or Change in Control.

  (xx)Adjustments.  In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs (other than any ordinary dividends or other ordinary distributions), the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, will adjust the number and class of shares of stock that may be delivered under the Plan and/or the number, class, and price of shares of stock covered by each outstanding Award, and the numerical Share limit in Section 3 of the Plan.  

  (yy)Dissolution or Liquidation.  In the event of the proposed dissolution or liquidation of the Company after the date the Board approves this Plan, the Administrator will notify each Participant as soon as practicable prior to the effective date of such proposed transaction.  To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action.

  (zz)Change in Control.  In the event of a merger of the Company with or into another corporation or other entity or a Change in Control after the date the Board approves this Plan, each outstanding Award will be treated as the Administrator determines (subject to the provisions of the following paragraph) without a Participant’s consent, including, without limitation, that (i) Awards will be assumed, or substantially equivalent awards will be substituted, by the acquiring or succeeding corporation (or an affiliate thereof) with appropriate adjustments as to the number and kind of shares and prices; (ii) upon written notice to a Participant, that the Participant’s Awards will terminate upon or immediately prior to the consummation of such merger or Change in Control; (iii) outstanding Awards will vest and become exercisable, realizable, or payable, or restrictions applicable to an Award will lapse, in whole or in part prior to or upon consummation of such merger or Change in Control, and, to the extent the Administrator determines, terminate upon or immediately prior to the effectiveness of such merger or Change in Control; (iv) (A) the termination of an Award in exchange for an amount of cash and/or property, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Participant’s rights as of the date of the occurrence of the transaction (and, for the avoidance of doubt, if as of the date of the occurrence of the transaction the Administrator determines in good faith that no amount would have been attained upon the exercise of such Award or realization of the Participant’s rights, then such Award may be terminated by the Company without payment), or (B) the replacement of such Award with other rights or property selected by the Administrator in its sole discretion; or (v) any combination of the foregoing.  In taking any of the actions permitted under this subsection 13(c), the Administrator will not be required to treat all 

  15

  

  Exhibit 10.3

   

  Awards or Participants, all Awards held by a Participant, or all Awards of the same type, similarly in the transaction.

  In the event that the successor corporation does not assume or substitute for the Award (or portion thereof), the Participant will fully vest in and have the right to exercise such outstanding Option and Stock Appreciation Right not so assumed or substituted for, including Shares as to which such Award would not otherwise be vested or exercisable, all restrictions on such Restricted Stock and Restricted Stock Units not so assumed or substituted for will lapse, and, with respect to such Awards with performance-based vesting, all performance goals or other vesting criteria will be deemed achieved at one hundred percent (100%) of target levels and all other terms and conditions met, in all cases, unless specifically provided otherwise under the applicable Award Agreement or other written agreement between the Participant and the Company or any of its Subsidiaries or Parents, as applicable.  In addition, if an Option or Stock Appreciation Right is not assumed or substituted in the event of a merger or Change in Control, the Administrator will notify the Participant in writing or electronically that such Option or Stock Appreciation Right not so assumed or substituted for will be exercisable for a period of time determined by the Administrator in its sole discretion, and the Option or Stock Appreciation Right will terminate upon the expiration of such period.

  For the purposes of this subsection (c), an Award will be considered assumed if, following the merger or Change in Control, the Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the merger or Change in Control, the consideration (whether stock, cash, or other securities or property) received in the merger or Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of an Option or Stock Appreciation Right or upon the payout of a Restricted Stock Unit, Performance Unit or Performance Share, for each Share subject to such Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or Change in Control.

  Notwithstanding anything in this Section 13(c) to the contrary, and unless otherwise provided in an Award Agreement, an Award that vests, is earned or paid-out upon the satisfaction of one or more performance goals will not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant’s consent; provided, however, a modification to such performance goals only to reflect the successor corporation’s post-Change in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption. 

  Notwithstanding anything in this Section 13(c) to the contrary, if a payment under an Award Agreement is subject to Code Section 409A and if the change in control definition contained in the Award Agreement does not comply with the definition of “change of control” for purposes of a distribution under Code Section 409A, then any payment of an amount that is otherwise accelerated under this Section will be delayed until the earliest time that such payment 

  16

  

  Exhibit 10.3

   

  would be permissible under Code Section 409A without triggering any penalties applicable under Code Section 409A.

  14.Tax.

  (aaa)Withholding Requirements.  Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof) or such earlier time as any tax withholding obligations are due, the Company will have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy U.S. federal, state, or local taxes, non-U.S. taxes, or other taxes (including the Participant’s FICA or other social insurance contribution obligation) required to be withheld with respect to such Award (or exercise thereof).  

  (bbb)Withholding Arrangements.  The Administrator, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit a Participant to satisfy such tax withholding obligation, in whole or in part by (without limitation) (i) paying cash, check or other cash equivalents, (ii) electing to have the Company withhold otherwise deliverable cash or Shares having a fair market value equal to the minimum statutory amount required to be withheld or such greater amount as the Administrator may determine if such amount would not have adverse accounting consequences, as the Administrator determines in its sole discretion, (c) delivering to the Company already-owned Shares having a fair market value equal to the minimum statutory amount required to be withheld or such greater amount as the Administrator may determine, in each case, provided the delivery of such Shares will not result in any adverse accounting consequences, as the Administrator determines in its sole discretion, (d) selling a sufficient number of Shares otherwise deliverable to the Participant through such means as the Administrator may determine in its sole discretion (whether through a broker or otherwise) equal to the amount required to be withheld, or (e) any combination of the foregoing methods of payment.  The fair market value of the Shares to be withheld or delivered will be determined as of the date that the taxes are required to be withheld.

  (ccc)Compliance With Section 409A.  Awards will be designed and operated in such a manner that they are either exempt from the application of, or comply with, the requirements of Section 409A such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Section 409A, except as otherwise determined in the sole discretion of the Administrator.  The Plan and each Award Agreement under the Plan is intended to meet the requirements of Section 409A and will be construed and interpreted in accordance with such intent, except as otherwise determined in the sole discretion of the Administrator.  To the extent that an Award or payment, or the settlement or deferral thereof, is subject to Section 409A the Award will be granted, paid, settled or deferred in a manner that will meet the requirements of Section 409A, such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Section 409A. In no event will the Company or any of its Parent or Subsidiaries have any obligation under the terms of this Plan to reimburse, indemnify, or hold harmless a Participant for any taxes, interest or penalties imposed, or other costs incurred, as a result of Section 409A.

  15.No Effect on Employment or Service.  Neither the Plan nor any Award will confer upon a Participant any right with respect to continuing the Participant’s relationship as a Service Provider, nor will they interfere in any way with the Participant’s right or the right of the Company 

  17

  

  Exhibit 10.3

   

  (or any Parent or Subsidiary of the Company) to terminate such relationship at any time, with or without cause, to the extent permitted by Applicable Laws.

  16.Date of Grant.  The date of grant of an Award will be, for all purposes, the date on which the Administrator makes the determination granting such Award, or such other later date as is determined by the Administrator.  Notice of the determination will be provided to each Participant within a reasonable time after the date of such grant.

  17.Term of Plan.  The Plan will become effective upon its adoption by the Board (or its designated committee).  It will continue in effect for a term of ten (10) years from the date of such adoption, unless terminated earlier under Section 18 of the Plan.

  18.Amendment and Termination of the Plan.

  (ddd)Amendment and Termination.  The Administrator may at any time amend, alter, suspend or terminate the Plan.  

  (eee)Stockholder Approval.  The Company will obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws. 

  (fff)Effect of Amendment or Termination.  No amendment, alteration, suspension or termination of the Plan will materially impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company.  Termination of the Plan will not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

  19.Conditions Upon Issuance of Shares.

  (ggg)Legal Compliance.  Shares will not be issued pursuant to an Award unless the exercise or vesting of such Award and the issuance and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel for the Company with respect to such compliance.

  (hhh)Investment Representations.  As a condition to the exercise or vesting of an Award, the Company may require the person exercising or vesting in such Award to represent and warrant at the time of any such exercise or vesting that the Shares are being acquired only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.

  20.Inability to Obtain Authority.  If the Company determines it to be impossible or impractical to obtain authority from any regulatory body having jurisdiction or to complete or comply with the requirements of any registration or other qualification of the Shares under any U.S.  federal or state law, any non-U.S. law, or the rules and regulations of the U.S. Securities and Exchange Commission, the stock exchange on which Shares of the same class are then listed, or any other governmental or regulatory body, which authority, registration, qualification or rule compliance is deemed by the Company’s counsel to be necessary or advisable for the issuance and sale of any Shares hereunder, the Company will be relieved of any liability in respect of the failure 

  18

  

  Exhibit 10.3

   

  to issue or sell such Shares as to which such requisite authority, registration, qualification or rule compliance will not have been obtained.

  21.  Forfeiture Events.  

  (iii)All Awards under the Plan will be subject to recoupment under any clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other Applicable Laws.  In addition, the Administrator may impose such other clawback, recovery or recoupment provisions in an Award Agreement as the Administrator determines necessary or appropriate, including but not limited to a reacquisition right regarding previously acquired Shares or other cash or property.  Unless this Section 21 is specifically mentioned and waived in an Award Agreement or other document, no recovery of compensation under a clawback policy or otherwise will be an event that triggers or contributes to any right of a Participant to resign for “good reason” or “constructive termination” (or similar term) under any agreement with the Company or a Subsidiary or Parent of the Company.

  (jjj)The Administrator may specify in an Award Agreement that the Participant’s rights, payments, and benefits with respect to an Award will be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of specified events, in addition to any otherwise applicable vesting or performance conditions of an Award.  Such events may include, but will not be limited to, termination of such Participant’s status as Service Provider for cause or any specified action or inaction by a Participant, whether before or after such termination of service, that would constitute cause for termination of such Participant’s status as a Service Provider.

   

  19

  

  Exhibit 10.3

   

  VIRACTA THERAPEUTICS, INC.

  2021 INDUCEMENT EQUITY INCENTIVE PLAN

  STOCK OPTION AGREEMENT

  Unless otherwise defined herein, the terms defined in the Viracta Therapeutics, Inc. 2021 Inducement Equity Incentive Plan (the “Plan”) will have the same defined meanings in this Stock Option Agreement which includes the Notice of Stock Option Grant, the Terms and Conditions of Stock Option Grant, attached hereto as Exhibit A, and all appendices and exhibits attached thereto (all together, the “Option Agreement”).

  NOTICE OF STOCK OPTION GRANT

  Participant:				

  Address:				

   

  The undersigned Participant has been granted an Option to purchase Common Stock of Viracta Therapeutics, Inc. (the “Company”), subject to the terms and conditions of the Plan and this Option Agreement, as follows:

  Grant Number:					______________________________

  Date of Grant:					______________________________

  Vesting Commencement Date:		______________________________

  Number of Shares Granted:									

  Exercise Price per Share:			$_____________________________

  Total Exercise Price:				$_____________________________

  Type of Option:					Nonstatutory Stock Option

  Term/Expiration Date:			______________________________

  Vesting Schedule:

  Subject to any accelerated vesting as set forth below or in the Plan, this Option will be scheduled to vest in accordance with the following schedule:

  [Twenty-five percent (25%) of the Shares subject to the Option will be scheduled to vest on the one (1) year anniversary of the Vesting Commencement Date, and one forty-eighth (1/48th) of the Shares subject to the Option will be scheduled to vest each month thereafter on the same day of the month as the Vesting Commencement Date (and if there is no corresponding day, on the last day of the month), subject to Participant continuing to be a Service Provider through each such date.]  

  Notwithstanding the foregoing, the vesting of the Option shall be subject to any vesting acceleration provisions applicable to the Option contained in any employment or service agreement, offer letter, change in control severance agreement, change of control severance policy, or any other agreement that, prior to and effective as of the date of this Option 

  20

  

  Exhibit 10.3

   

  Agreement, has been entered into between Participant and the Company or any parent or subsidiary corporation of the Company (such agreement, a “Separate Agreement”) to the extent not otherwise duplicative of the vesting terms described above.

  Termination Period: 

  In the event of cessation of Participant’s status as a Service Provider, this Option will be exercisable, to the extent vested, for a period of three (3) months after Participant ceases to be a Service Provider, unless such termination is due to Participant’s death or Disability, in which case this Option will be exercisable, to the extent vested, for a period of twelve (12) months after Participant ceases to be a Service Provider.  Notwithstanding the foregoing sentence, in no event may this Option be exercised after the Term/Expiration Date as provided above and may be subject to earlier termination as provided in Section 14 of the Plan.  

  By Participant’s signature and the signature of the representative of the Company below, Participant and the Company agree that this Option is granted under and governed by the terms and conditions of the Plan and this Option Agreement, including the Terms and Conditions of Stock Option Grant, attached hereto as Exhibit A, all of which are made a part of this document.  Participant acknowledges receipt of a copy of the Plan.  Participant has reviewed the Plan and this Option Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option Agreement, and fully understands all provisions of the Plan and this Option Agreement.  Participant hereby agrees to accept as binding, conclusive, and final all decisions or interpretations of the Administrator upon any questions relating to the Plan and the Option Agreement.  Participant further agrees to notify the Company upon any change in the residence address indicated below.

   

  PARTICIPANT                                                          VIRACTA THERAPEUTICS, INC.

   

  ______________________________                        ______________________________

  Signature                                                                     Signature

   

  ______________________________                        ______________________________

  Print Name                                                                  Print Name

                                                                                                                                                                ______________________________

                                                                                      Title

  Address:

  ______________________________

  ______________________________

   

   

  21

  

  Exhibit 10.3

   

  EXHIBIT A

  TERMS AND CONDITIONS OF STOCK OPTION GRANT

  1.Grant of Option.  The Company hereby grants to the individual (“Participant”) named in the Notice of Stock Option Grant of this Option Agreement (the “Notice of Grant”) an option (the “Option”) to purchase the number of Shares set forth in the Notice of Grant, at the exercise price per Share set forth in the Notice of Grant (the “Exercise Price”), subject to all of the terms and conditions in this Option Agreement and the Plan, which is incorporated herein by this reference.  Subject to Section 19(c) of the Plan, in the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Option Agreement, the terms and conditions of the Plan will prevail.

  2.Vesting Schedule.  Except as provided in Section 3, the Option awarded by this Option Agreement will vest in accordance with the vesting provisions set forth in the Notice of Grant.  Shares scheduled to vest on a certain date or upon the occurrence of a certain condition will not vest in Participant in accordance with any of the provisions of this Option Agreement, unless Participant will have been continuously a Service Provider from the Date of Grant until the date such vesting occurs.

  3.Administrator Discretion.  The Administrator, in its discretion, may accelerate the vesting of the balance, or some lesser portion of the balance, of the unvested Option at any time, subject to the terms of the Plan.  If so accelerated, such Option will be considered as having vested as of the date specified by the Administrator.

  4.Exercise of Option.  

  (a)Right to Exercise.  This Option may be exercised only within the term set out in the Notice of Grant, and may be exercised during such term only in accordance with the Vesting Schedule set out in the Notice of Option Grant and with the applicable provisions of the Plan and the terms of this Option Agreement.

  (b)Method of Exercise.  This Option is exercisable by delivery of an exercise notice (the “Exercise Notice”) in the form attached as Exhibit B to the Notice of Grant or in a manner and pursuant to such procedures as the Administrator may determine, which will state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised (the “Exercised Shares”), and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan.  The Exercise Notice will be completed by Participant and delivered to the Company.  The Exercise Notice will be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares and of any Tax Obligations (as defined in Section 6(a)).  This Option will be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by the aggregate Exercise Price, together with any applicable Tax Obligations.  

  5.Method of Payment.  Payment of the aggregate Exercise Price will be by any of the following, or a combination thereof, at the election of Participant:

  (a)cash; 

  22

  

  Exhibit 10.3

   

  (d)check; 

  (e)consideration received by the Company under a formal cashless exercise program adopted by the Company in connection with the Plan; or

  (f)if Participant is a U.S. employee, surrender of other Shares which have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Exercised Shares and that are owned free and clear of any liens, claims, encumbrances, or security interests, provided that accepting such Shares, in the sole discretion of the Administrator, will not result in any adverse accounting consequences to the Company.

  6.Tax Obligations.  

  (g)Responsibility for Taxes.  Participant acknowledges that, regardless of any action taken by the Company or, if different, Participant’s employer (the “Employer”) or any Parent or Subsidiary to which Participant is providing services (together, the Company, Employer and/or Parent or Subsidiary to which Participant is providing services, the “Service Recipient”), the ultimate liability for any tax and/or social insurance liability obligations and requirements in connection with the Option, including, without limitation, (i) all federal, state, and local taxes (including the Participant’s Federal Insurance Contributions Act (FICA) obligation) that are required to be withheld by the Company or the Service Recipient or other payment of tax-related items related to Participant’s participation in the Plan and legally applicable to Participant, (ii) the Participant’s and, to the extent required by the Company (or Service Recipient), the Company’s (or Service Recipient’s) fringe benefit tax liability, if any, associated with the grant, vesting, or exercise of the Option or sale of Shares, and (iii) any other Company (or Service Recipient) taxes the responsibility for which the Participant has, or has agreed to bear, with respect to the Option (or exercise thereof or issuance of Shares thereunder) (collectively, the “Tax Obligations”), is and remains Participant’s responsibility and may exceed the amount actually withheld by the Company or the Service Recipient.  Participant further acknowledges that the Company and/or the Service Recipient (A) make no representations or undertakings regarding the treatment of any Tax Obligations in connection with any aspect of the Option, including, but not limited to, the grant, vesting or exercise of the Option, the subsequent sale of Shares acquired pursuant to such exercise and the receipt of any dividends or other distributions, and (B) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Option to reduce or eliminate Participant’s liability for Tax Obligations or achieve any particular tax result.  Further, if Participant is subject to Tax Obligations in more than one jurisdiction between the Date of Grant and the date of any relevant taxable or tax withholding event, as applicable, Participant acknowledges that the Company and/or the Service Recipient (or former employer, as applicable) may be required to withhold or account for Tax Obligations in more than one jurisdiction.  If Participant fails to make satisfactory arrangements for the payment of any required Tax Obligations hereunder at the time of the applicable taxable event, Participant acknowledges and agrees that the Company may refuse to issue or deliver the Shares.

  (h)Tax Withholding.  When the Option is exercised, Participant generally will recognize immediate U.S. taxable income if Participant is a U.S. taxpayer.  If Participant is a non-U.S. taxpayer, Participant will be subject to applicable taxes in his or her jurisdiction.  Pursuant to such procedures as the Administrator may specify from time to time, the Company and/or Service 

  23

  

  Exhibit 10.3

   

  Recipient shall withhold the amount required to be withheld for the payment of Tax Obligations.  The Administrator, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit Participant to satisfy such Tax Obligations, in whole or in part (without limitation), if permissible by applicable local law, by (i) paying cash, (ii) electing to have the Company withhold otherwise deliverable Shares having a fair market value equal to the minimum amount that is necessary to meet the withholding requirement for such Tax Obligations (or such greater amount as Participant may elect if permitted by the Administrator, if such greater amount would not result in adverse financial accounting consequences), (iii) withholding the amount of such Tax Obligations from Participant’s wages or other cash compensation paid to Participant by the Company and/or the Service Recipient, (iv) delivering to the Company already vested and owned Shares having a fair market value equal to such Tax Obligations, or (v) selling a sufficient number of such Shares otherwise deliverable to Participant through such means as the Company may determine in its sole discretion (whether through a broker or otherwise) equal to the minimum amount that is necessary to meet the withholding requirement for such Tax Obligations (or such greater amount as Participant may elect if permitted by the Administrator, if such greater amount would not result in adverse financial accounting consequences).  To the extent determined appropriate by the Administrator in its discretion, it will have the right (but not the obligation) to satisfy any Tax Obligations by reducing the number of Shares otherwise deliverable to Participant.  Further, if Participant is subject to tax in more than one jurisdiction between the Date of Grant and a date of any relevant taxable or tax withholding event, as applicable, Participant acknowledges and agrees that the Company and/or the Service Recipient (and/or former employer, as applicable) may be required to withhold or account for tax in more than one jurisdiction.  If Participant fails to make satisfactory arrangements for the payment of any required Tax Obligations hereunder at the time of the Option exercise, Participant acknowledges and agrees that the Company may refuse to honor the exercise and refuse to deliver the Shares if such amounts are not delivered at the time of exercise.  

  (i)Section 409A.  Under Section 409A, a stock right (such as the Option) that vests after December 31, 2004 (or that vested on or prior to such date but which was materially modified after October 3, 2004) that was granted with a per share exercise price that is determined by the Internal Revenue Service (the “IRS”) to be less than the fair market value of an underlying share on the date of grant (a “discount option”) may be considered “deferred compensation.”  A stock right that is a “discount option” may result in (i) income recognition by the recipient of the stock right prior to the exercise of the stock right, (ii) an additional twenty percent (20%) federal income tax, and (iii) potential penalty and interest charges.  The “discount option” also may result in additional state income, penalty and interest tax to the recipient of the stock right.  Participant acknowledges that the Company cannot and has not guaranteed that the IRS will agree that the per Share exercise price of this Option equals or exceeds the fair market value of a Share on the date of grant in a later examination.  Participant agrees that if the IRS determines that the Option was granted with a per Share exercise price that was less than the fair market value of a Share on the date of grant, Participant shall be solely responsible for Participant’s costs related to such a determination.  In no event will the Company or any of its Parent or Subsidiaries have any liability or obligation to reimburse, indemnify, or hold harmless Participant for any taxes, penalties and interest that may be imposed, or other costs that may be incurred, as a result of Section 409A.

  7.Rights as Stockholder.  Neither Participant nor any person claiming under or through Participant will have any of the rights or privileges of a stockholder of the Company in respect of 

  24

  

  Exhibit 10.3

   

  any Shares deliverable hereunder unless and until certificates representing such Shares (which may be in book entry form) will have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to Participant (including through electronic delivery to a brokerage account).  After such issuance, recordation and delivery, Participant will have all the rights of a stockholder of the Company with respect to voting such Shares and receipt of dividends and distributions on such Shares.

  8.No Guarantee of Continued Service.  PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER, WHICH UNLESS PROVIDED OTHERWISE UNDER APPLICABLE LAW IS AT THE WILL OF THE COMPANY (OR THE SERVICE RECIPIENT) AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER.  PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS OPTION AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND WILL NOT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR THE RIGHT OF THE COMPANY (OR THE SERVICE RECIPIENT) TO TERMINATE PARTICIPANT’S RELATIONSHIP AS A SERVICE PROVIDER, SUBJECT TO APPLICABLE LAW, WHICH TERMINATION, UNLESS PROVIDED OTHERWISE UNDER APPLICABLE LAW, MAY BE AT ANY TIME, WITH OR WITHOUT CAUSE.

  9.Nature of Grant.  In accepting the Option, Participant acknowledges, understands and agrees that:

  (j)the grant of the Option is voluntary and occasional and does not create any contractual or other right to receive future grants of equity awards, or benefits in lieu of equity awards, even if equity awards have been granted in the past; 

  (k)all decisions with respect to future option or other grants, if any, will be at the sole discretion of the Administrator; 

  (l)Participant is voluntarily participating in the Plan; 

  (m)the Option and any Shares acquired under the Plan are not intended to replace any pension rights or compensation;

  (n)the Option and Shares acquired under the Plan and the income and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments; 

  (o)the future value of the Shares underlying the Option is unknown, indeterminable, and cannot be predicted; 

  25

  

  Exhibit 10.3

   

  (p)if the underlying Shares do not increase in value, the Option will have no value; 

  (q)if Participant exercises the Option and acquires Shares, the value of such Shares may increase or decrease in value, even below the Exercise Price;

  (r)for purposes of the Option, Participant’s status as a Service Provider will be considered terminated as of the date Participant is no longer actively providing services to the Company or any Parent or Subsidiary (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is a Service Provider or the terms of Participant’s employment or service agreement, if any), and unless otherwise expressly provided in this Option Agreement (including by reference in the Notice of Grant to other arrangements or contracts) or determined by the Administrator, (i) Participant’s right to vest in the Option under the Plan, if any, will terminate as of such date and will not be extended by any notice period (e.g., Participant’s period of service would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where Participant is a Service Provider or Participant’s employment or service agreement, if any, unless Participant is providing bona fide services during such time); and (ii) the period (if any) during which Participant may exercise the Option after such termination of Participant’s status as a Service Provider will commence on the date Participant ceases to actively provide services and will not be extended by any notice period mandated under employment laws in the jurisdiction where Participant is employed or terms of Participant’s engagement agreement, if any; the Administrator shall have the exclusive discretion to determine when Participant is no longer actively providing services for purposes of his or her Option grant (including whether Participant may still be considered to be providing services while on a leave of absence and consistent with local law); 

  (s)unless otherwise provided in the Plan or by the Administrator in its discretion, the Option and the benefits evidenced by this Option Agreement do not create any entitlement to have the Option or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Shares; and

  (t)the following provisions apply only if Participant is providing services outside the United States:

  (i)the Option and the Shares subject to the Option are not part of normal or expected compensation or salary for any purpose; 

  (ii)Participant acknowledges and agrees that none of the Company, the Service Recipient, or any Parent or Subsidiary shall be liable for any foreign exchange rate fluctuation between Participant’s local currency and the United States Dollar that may affect the value of the Option or of any amounts due to Participant pursuant to the exercise of the Option or the subsequent sale of any Shares acquired upon exercise; and

  (iii)no claim or entitlement to compensation or damages shall arise from forfeiture of the Option resulting from the termination of Participant’s status as a Service Provider 

  26

  

  Exhibit 10.3

   

  (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is a Service Provider or the terms of Participant’s employment or service agreement, if any), and in consideration of the grant of the Option to which Participant is otherwise not entitled, Participant irrevocably agrees never to institute any claim against the Company, any Parent, any Subsidiary or the Service Recipient, waives his or her ability, if any, to bring any such claim, and releases the Company, any Parent or Subsidiary and the Service Recipient from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, Participant shall be deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claim.

  10.No Advice Regarding Grant.  The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding Participant’s participation in the Plan, or Participant’s acquisition or sale of the underlying Shares.  Participant is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

  11.Data Privacy.  Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Participant’s personal data as described in this Option Agreement and any other Option grant materials by and among, as applicable, the Employer or other Service Recipient, the Company and any Parent or Subsidiary for the exclusive purpose of implementing, administering and managing Participant’s participation in the Plan.  

  Participant understands that the Company and the Employer may hold certain personal information about Participant, including, but not limited to, Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any Shares or directorships held in the Company, details of all Options or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or outstanding in Participant’s favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan.   

  Participant understands that Data may be transferred to a stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan.  Participant understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country of operation (e.g., the United States) may have different data privacy laws and protections than Participant’s country.  Participant understands that, if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative.  Participant authorizes the Company, any stock plan service provider selected by the Company and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purposes of implementing, administering and managing Participant’s participation in the Plan.  Participant understands that Data will be held only as long as is necessary to implement, administer and manage Participant’s participation in the Plan.  Participant understands that, he or she may, at any time, view Data, request additional information about the storage and processing of Data, 

  27

  

  Exhibit 10.3

   

  require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative.  Further, Participant understands that he or she is providing the consents herein on a purely voluntary basis.  If Participant does not consent, or if Participant later seeks to revoke his or her consent, his or her status as a Service Provider and career with the Employer will not be adversely affected.  The only adverse consequence of refusing or withdrawing Participant’s consent is that the Company would not be able to grant Participant Options or other equity awards or administer or maintain such awards.  Therefore, Participant understands that refusing or withdrawing his or her consent may affect Participant’s ability to participate in the Plan.  For more information on the consequences of Participant’s refusal to consent or withdrawal of consent, Participant understands that he or she may contact his or her local human resources representative.

  12.Address for Notices.  Any notice to be given to the Company under the terms of this Option Agreement will be addressed to the Company at Viracta Therapeutics, Inc. 2533 South Coast Hwy. 101, Ste 210, Cardiff, CA 92007, or at such other address as the Company may hereafter designate in writing.

  13.Electronic Delivery and Acceptance.  The Company may, in its sole discretion, decide to deliver any documents related to the Option awarded under the Plan or future options that may be awarded under the Plan by electronic means or require Participant to participate in the Plan by electronic means.  Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through any on-line or electronic system established and maintained by the Company or a third party designated by the Company.

  14.Captions.  Captions provided herein are for convenience only and are not to serve as a basis for interpretation or construction of this Option Agreement.

  15.Option Agreement Severable.  In the event that any provision in this Option Agreement will be held invalid or unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Option Agreement.

  16.No Waiver.  Either party’s failure to enforce any provision or provisions of this Option Agreement shall not in any way be construed as a waiver of any such provision or provisions, nor prevent that party from thereafter enforcing each and every other provision of this Option Agreement.  The rights granted both parties herein are cumulative and shall not constitute a waiver of either party’s right to assert all other legal remedies available to it under the circumstances.

  17.Non-Transferability of Option.  This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Participant only by Participant.  

  18.Successors and Assigns.  The Company may assign any of its rights under this Option Agreement to single or multiple assignees, and this Option Agreement shall inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth, this Option Agreement shall be binding upon Participant and his or her heirs, executors, 

  28

  

  Exhibit 10.3

   

  administrators, successors and assigns.  The rights and obligations of Participant under this Option Agreement may be assigned only with the prior written consent of the Company.

  19.Additional Conditions to Issuance of Stock.  If at any time the Company will determine, in its discretion, that the listing, registration, qualification or rule compliance of the Shares upon any securities exchange or under any state, federal or non-U.S. law, the tax code and related regulations or under the rulings or regulations of the United States Securities and Exchange Commission or any other governmental regulatory body or the clearance, consent or approval of the United States Securities and Exchange Commission or any other governmental regulatory authority is necessary or desirable as a condition to the exercise of the Options or the purchase by, or issuance of Shares, to Participant (or his or her estate) hereunder, such exercise, purchase or issuance will not occur unless and until such listing, registration, qualification, rule compliance, clearance, consent or approval will have been completed, effected or obtained free of any conditions not acceptable to the Company.  Subject to the terms of the Option Agreement and the Plan, the Company shall not be required to issue any certificate or certificates for (or make any entry on the books of the Company or of a duly authorized transfer agent of the Company of) the Shares hereunder prior to the lapse of such reasonable period of time following the date of exercise of the Option as the Administrator may establish from time to time for reasons of administrative convenience.

  20.Language.  If Participant has received this Option Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

  21.Interpretation.  The Administrator will have the power to interpret the Plan and this Option Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules (including, but not limited to, the determination of whether or not any Shares subject to the Option have vested).  All actions taken and all interpretations and determinations made by the Administrator in good faith will be final and binding upon Participant, the Company and all other interested persons.  Neither the Administrator nor any person acting on behalf of the Administrator will be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or this Option Agreement.

  22.Amendment, Suspension or Termination of the Plan.  By accepting this Option, Participant expressly warrants that he or she has received an Option under the Plan, and has received, read and understood a description of the Plan.  Participant understands that the Plan is discretionary in nature and may be amended, suspended or terminated by the Administrator at any time.

  23.Modifications to the Option Agreement.  This Option Agreement constitutes the entire understanding of the parties on the subjects covered.  Participant expressly warrants that he or she is not accepting this Option Agreement in reliance on any promises, representations, or inducements other than those contained herein.  Modifications to this Option Agreement or the Plan can be made only in an express written contract executed by a duly authorized officer of the Company.  Notwithstanding anything to the contrary in the Plan or this Option Agreement, the Company reserves the right to revise this Option Agreement as it deems necessary or advisable, in 

  29

  

  Exhibit 10.3

   

  its sole discretion and without the consent of Participant, to comply with Code Section 409A or to otherwise avoid imposition of any additional tax or income recognition under Section 409A of the Code in connection with the Option.

  24.Governing Law and Venue.  This Option Agreement and the Option will be governed by the laws of California, without giving effect to the conflict of law principles thereof.  For purposes of litigating any dispute that arises under this Option or this Option Agreement, the parties hereby submit to and consent to the jurisdiction of the State of California, and agree that such litigation will be conducted in the courts of San Diego, California, or the U.S. federal courts for the Southern District of California, and no other courts, where this Option is made and/or to be performed.

  25.Entire Agreement.  The Plan is incorporated herein by reference.  The Plan and this Option Agreement (including the appendices and exhibits referenced herein) constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof, and may not be modified adversely to the Participant’s interest except by means of a writing signed by the Company and Participant.

  26.Country Addendum.  Notwithstanding any provisions in this Option Agreement, this Option shall be subject to any special terms and conditions set forth in an appendix (if any) to this Option Agreement for any country whose laws are applicable to Participant and this Option (as determined by the Administrator in its sole discretion) (the “Country Addendum”).  Moreover, if Participant relocates to one of the countries included in the Country Addendum (if any), the special terms and conditions for such country will apply to Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons.  The Country Addendum (if any) constitutes a part of this Option Agreement.

  27.Tax Consequences.  Participant has reviewed with his or her own tax advisors the U.S. federal, state, local and non-U.S. tax consequences of this investment and the transactions contemplated by this Option Agreement.  With respect to such matters, Participant relies solely on such advisors and not on any statements or representations of the Company or any of its agents, written or oral.  Participant understands that Participant (and not the Company) shall be responsible for Participant’s own tax liability that may arise as a result of this investment or the transactions contemplated by this Option Agreement.

  *          *          *

   

  30

  

  Exhibit 10.3

   

  EXHIBIT B

  VIRACTA THERAPEUTICS, INC.

  2021 INDUCEMENT EQUITY INCENTIVE PLAN

  EXERCISE NOTICE

  Viracta Therapeutics, Inc.

  2533 South Coast Hwy. 101, Ste 210

  Cardiff, CA 92007

  Attention:  Stock Administration

   

  1.Exercise of Option.  Effective as of today, ________________, _____, the undersigned (“Purchaser”) hereby elects to purchase ______________ shares (the “Shares”) of the Common Stock of Viracta Therapeutics, Inc. (the “Company”) under and pursuant to the 2021 Inducement Equity Incentive Plan (the “Plan”) and the Stock Option Agreement, dated ________ and including the Notice of Grant, the Terms and Conditions of Stock Option Grant, and exhibits attached thereto (the “Option Agreement”).  The purchase price for the Shares will be $_____________, as required by the Option Agreement.  Unless otherwise defined herein, capitalized terms used in this Exercise Notice shall be ascribed the same defined meanings as set forth in the Option Agreement (or, as applicable, the Plan or other written agreement or arrangement as specified in the Option Agreement).

  2.Delivery of Payment.  Purchaser herewith delivers to the Company the full purchase price of the Shares and any Tax Obligations (as defined in Section 6(a) of the Option Agreement) to be paid in connection with the exercise of the Option.

  3.Representations of Purchaser.  Purchaser acknowledges that Purchaser has received, read and understood the Plan and the Option Agreement and agrees to abide by and be bound by their terms and conditions.

  4.Rights as Stockholder.  Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the Shares, no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the Shares subject to the Option, notwithstanding the exercise of the Option.  The Shares so acquired will be issued to Purchaser as soon as practicable after exercise of the Option.  No adjustment will be made for a dividend or other right for which the record date is prior to the date of issuance, except as provided in Section 14 of the Plan.

  5.Tax Consultation.  Purchaser understands that Purchaser may suffer adverse tax consequences as a result of Purchaser’s purchase or disposition of the Shares.  Purchaser represents that Purchaser has consulted with any tax consultants Purchaser deems advisable in connection with the purchase or disposition of the Shares and that Purchaser is not relying on the Company for any tax advice.

  31

  

  Exhibit 10.3

   

  6.Entire Agreement; Governing Law.  The Plan and Option Agreement are incorporated herein by reference.  This Exercise Notice, the Plan and the Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Purchaser with respect to the subject matter hereof, and may not be modified adversely to the Purchaser’s interest except by means of a writing signed by the Company and Purchaser.  This Option Agreement is governed by the internal substantive laws, but not the choice of law rules, of California.

  Submitted by:		                                                     Accepted by:

   

  PURCHASER                                                             VIRACTA THERAPEUTICS, INC.

   

  ______________________________                         ______________________________

  Signature                                                                     Signature

   

  ______________________________                        ______________________________

  Print Name                                                                  Print Name

                                                                                                                                                                                                                                                  ______________________________

                                                                                      Title

  Address:

   

  ______________________________

  ______________________________

   

                                                                                                                                                                                                                             ______________________________

                                                                                         Date Received

  32

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