Document:

Restricted Stock Agreement by and between Bruce G. Miller and DMI Life Sciences

 Exhibit 10.4 
 RESTRICTED STOCK AGREEMENT 
 THIS RESTRICTED
STOCK AGREEMENT (this “Agreement”) is made effective as of April 17, 2009 (the “Grant Date”), by and between DMI Life Sciences, Inc., a Delaware corporation (the “Company”), and Bruce G.
Miller (the “Holder”): 
 WHEREAS, the Company and DMI Biosciences, Inc., a Colorado corporation (“DMIB”) are
party to an Asset Purchase Agreement dated as of April 16, 2009 (the “APA”) pursuant to which the Company will purchase certain assets of DMIB; 
 WHEREAS, the execution and delivery of this Agreement is a condition to the closing of the transactions contemplated by the APA; 
 WHEREAS, the Company’s Board of Directors (the “Board”) has determined that it would be to the advantage and in the best interest of the Company and its stockholders to enter into
this Agreement to assign certain shares of Common Stock of the Company subject to certain restrictions thereon (the “Restricted Stock”) to the Holder in consideration of services to be rendered and as an incentive for the Holder’s
best performance of future services to Company and its subsidiaries, subject to the restrictions set forth herein and payment of the Aggregate Purchase Price (as defined below); 
 WHEREAS, the Company and the Holder have entered into an Employment Agreement dated April 17, 2009 (the “Employment
Agreement”). 
 NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows: 
 ARTICLE I. AWARD OF
RESTRICTED STOCK 
 Section 1.1 Award of Restricted Stock. In consideration of Holder’s services and for other good and
valuable consideration which the Board has determined, including a per share purchase price of $0.001, the Company hereby awards and assigns to the Holder, on the Grant Date, 1,500,000 shares of Restricted Stock, for an aggregate purchase price of
$1,500.00 (the “Aggregate Purchase Price”). The Aggregate Purchase Price for the Shares shall be paid by check payable to the Company or by wire transfer per the Company’s wiring instructions. 
 Section 1.2 Not a Contract of Employment. Nothing in this Agreement shall confer upon the Holder any right to continue in the employ of
the Company or any subsidiary, or shall interfere with or restrict in any way any otherwise existing rights of the Company and any subsidiary, which are hereby expressly reserved, to discharge the Holder at any time for any reason whatsoever, with
or without Cause (subject to the consequences set forth in the Employment Agreement). 
 ARTICLE II. TERMS OF THE AWARD AND RESTRICTIONS 

 Section 2.1 Definition. Unless the context otherwise requires, terms defined in the Employment Agreement have the same
meanings when used in this Agreement. 
 “Common Stock” shall mean common stock of the Company, $0.001 par value per share.

  

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 “Restrictions” shall mean the restrictions on sale or other transfer set forth in
Section 3.1, the exposure to forfeiture set forth in Section 2.2 and the vesting set forth in Section 2.3. 
 Section 2.2 Forfeiture. Any share of Restricted Stock that is not vested pursuant to Section 2.3 upon the termination of the Holder’s Service (as defined below) with the Company and its subsidiaries (x) by
the Company for Cause or (y) by the Holder other than for Good Reason, shall thereupon be forfeited to the Company without payment. In the event of the termination of the Holder’s Service (x) as a result of his death or Disability,
(y) by the Company without Cause or (z) by the Holder with Good Reason, the Restricted Stock that is not vested pursuant to Section 2.3 shall remain outstanding and shall immediately become fully vested. For purposes of this
Agreement, “Service” shall mean the Holder’s performance of services to the Company (or any parent, subsidiary or affiliate thereof) in the capacity of an employee, a director, a consultant or an independent advisor. 
 Section 2.3 Vesting and Lapse of Restrictions. Subject to Sections 2.2, 2.4 and 2.6, each share of Restricted Stock shall not be
transferable until such share becomes vested pursuant to this Section. The shares shall vest in accordance with the following schedule (each a “Vesting Date”): 
 (a) 500,000 shares of the Restricted Stock shall be fully vested as of the date of this Agreement and there shall be no Restrictions thereon. 
 (b) No additional shares shall vest pursuant to the passage of time from the date of this Agreement through the first anniversary of this
Agreement. 
 (c) 500,000 shares of the Restricted Stock shall vest in twelve equal installments during the period from the
first anniversary to the second anniversary of the date of this Agreement provided that Holder continues to provide Service, such that on the monthly anniversary of the date of this Agreement 1/12 of such Restricted Shares shall vest (such number
shall be prorated for any partial month in which Holder is in Service). 
 (d) 500,000 shares of the Restricted Stock shall vest
in twelve equal installments during the period from the second anniversary to the third anniversary of the date of this Agreement provided that Holder continues to provide Service, such that on the monthly anniversary of the date of this Agreement
1/12 of such Restricted Shares shall vest (such number shall be prorated for any partial month in which Holder is in Service). 
 (e) The time vesting schedule of the Restricted Shares described in paragraphs (c) and (d) above shall be subject to acceleration upon the achievement of the milestones as described on Exhibit B hereto. To the extent that any of
the milestones are satisfied, the restricted shares which will early vest shall be taken from the portion of the restricted shares with the longest remaining time to vesting under the time vesting schedule. 
 Section 2.4 Restricted Account/Stock Legend. Holder acknowledges that the Company will either issue the Restricted Shares covered by this
Agreement in the name of the Holder to be held in an uncertificated restricted account or will issue a stock certificate for the Restricted Shares in the name of the Holder, which certificate will bear the legends set forth below and any additional
legend required by applicable securities law or other applicable regulation. 
  

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 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN VESTING
REQUIREMENTS UNDER THE TERMS OF THAT CERTAIN RESTRICTED STOCK AGREEMENT BY AND BETWEEN DMI LIFE SCIENCES, INC. (THE “COMPANY”) AND THE REGISTERED OWNER OF SUCH SHARES, AND SUCH SHARES MAY NOT BE, DIRECTLY OR INDIRECTLY, VOLUNTARILY OR
INVOLUNTARILY, OR BY OPERATION OF LAW, OFFERED, TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNDER ANY CIRCUMSTANCES, EXCEPT PURSUANT TO THE PROVISIONS OF SUCH AGREEMENT. A COPY OF THE AGREEMENT MAY BE OBTAINED FROM
THE COMPANY. 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”)
AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR
HYPOTHECATION IS IN COMPLIANCE THEREWITH. 
 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON
TRANSFER AND A RIGHT OF FIRST REFUSAL AS SET FORTH IN THE RESTRICTED STOCK AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS AND
RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES. 
 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
RESTRICTIONS ON TRANSFER FOR A PERIOD OF TIME FOLLOWING THE EFFECTIVE DATE OF A PUBLIC OFFERING OF THE COMPANY’S SECURITIES SET FORTH IN THE RESTRICTED STOCK AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES AND MAY NOT BE
SOLD OR OTHERWISE DISPOSED OF BY THE HOLDER PRIOR TO THE EXPIRATION OF SUCH PERIOD WITHOUT THE CONSENT OF THE COMPANY. 
 Holder acknowledges
that the certificates evidencing the Restricted Stock, whether certificated or uncertificated, shall be held in the custody of the Company in the name of the Holder until the restrictions lapse and that it is a condition to the effectiveness of this
Agreement and the award of the Restricted Stock that Holder deliver to the Company the stock power attached hereto as Exhibit A, endorsed in blank. 
 Section 2.5 Assignment of Certificates for Vested Shares. Upon the vesting of the shares of the Restricted Stock as provided in Section 2.3 and subject to Section 3.3, the Company shall, at the request of
Holder, cause certificates to be assigned with respect to such vested shares and delivered to the Holder or his legal representative, free from any Restrictions and free from the first legend provided for in Section 2.4; provided, that such
shares shall remain subject to applicable securities laws, the Company’s employee trading policy and the other restrictions contained in Sections 2.12 and 2.13 of this Agreement. 
 Section 2.6 Restrictions On New Shares. In the event that the Holder receives any new or additional or different shares or securities by reason of any transaction or event described in
Section 2.7, such new or additional or different shares or securities which are attributable to the

  

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Holder in his capacity as the registered owner of the Restricted Stock then subject to Restrictions, shall be considered to be Restricted Stock and shall be subject to all of the Restrictions,
unless the Board expressly provides for the removal or lapse of the Restrictions on the shares of Restricted Stock underlying the distribution of the new or additional shares or securities, and all of the other restrictions contained in this
Agreement. 
 Section 2.7 Special Circumstances. 
 (a) Merger and Consolidation. In the event of a Change in Control, all shares of the Restricted Stock shall become fully vested and all
Restrictions thereon shall lapse effective immediately prior to the consummation of such Change in Control. Upon the consummation of the Change in Control, the shares of Restricted Stock shall be converted into the right to receive, or shall be
exchanged for, cash, securities or other property on the same basis as the other shares of the same class of the Company’s capital stock are being converted or exchanged in connection with the Change in Control. 
 (b) Adjustments. In the event that any merger, consolidation, reorganization, recapitalization, separation, stock dividend, stock split,
reverse stock split, split up, spin-off, repurchase of shares, combination of shares, exchange of shares, dividend in kind, or other like change in corporate structure or dividend or distribution (other than normal cash dividends) to shareholders of
the Company occurs, the Board, in order to prevent diminution or enlargement of the Holder’s rights under this Agreement, shall substitute or adjust, as applicable, the number and kind of shares that may be issued under this Agreement.

 (c) Investment Undertaking. The Holder is aware of the Company’s business affairs and financial condition and has
acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the shares of Restricted Stock. The Holder hereby represents and warrants that Holder will hold the Restricted Stock and the rights
constituent thereto for investment for Holder’s own account only and without any present intention of distribution or sale. 
 Section 2.8 Withholding. On each Vesting Date (or, if applicable, as of the time an 83(b) election is made by the Holder), the Holder may, if approved in writing by the Board, (a) elect to have the Company withhold,
the number of shares sufficient to satisfy the minimum tax withholding from the shares to satisfy such tax withholding obligations, or (b) deliver to the Company an amount in Common Stock of the Company with a fair market value equal to the
amount of such tax obligation. Otherwise, the Holder must deliver to the Company (or have the Company withhold) an amount in cash equal to the amount of such tax obligation. 
 Section 2.9 Voting Rights. To the extent permitted by law, the Holder shall be entitled to exercise full voting rights as set forth in the Company’s certificate of incorporation
with respect to those shares of Restricted Stock that have not yet vested. 
 Section 2.10 Beneficiary Designation. The
Holder may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under this Agreement is to be paid in case of his death before he receives any or all of such benefit. Each such
designation shall revoke all prior designations by the Holder, shall be in a form prescribed by the Board, and will be effective only when filed by the Holder in writing with the Company during the Holder’s lifetime. In the absence of any such
designation, benefits remaining unpaid at the Holder’s death shall be paid to the Holder’s estate. 
  

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 Section 2.11 Dividend Equivalents. The Holder may be granted dividend equivalents based
on the dividends declared on shares of Common Stock of the Company that are subject to this award of Restricted Stock, to be credited as of dividend payment dates, during the period between the Grant Date and each Vesting Date, if so determined by
the Board. Any such dividend equivalents shall be converted to cash or additional shares of Common Stock of the Company by such formula and at such time and subject to such limitations as may be determined by the Board in good faith. 
 Section 2.12 Market Stand-Off Agreement. The Holder hereby agrees that such Holder shall not sell, transfer, make any short sale of,
grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale of, any Common Stock (or other securities) of the Company held by such Holder (other than those included in the
registration) during (i) the 180-day period following the effective date of the Company’s initial public offering (or such longer period, not to exceed 18 days after the expiration of the 180-day period, as the underwriters or the Company
shall request in order to facilitate compliance with NASD Rule 2711(f)(4) or (NYSE Rule 472(f)(4), or any successor provisions or amendments thereto), and (ii) the 90-day period following the effective date of a registration statement of the
Company filed under the Securities Act of 1933 (or such longer period, not to exceed 18 days after the expiration of the 90-day period, as the underwriters or the Company shall request in order to facilitate compliance with NASD Rule 2711 (f)(4) or
NYSE Rule 472(f)(4), or any successor provisions or amendments thereto); provided, that, with respect to (i) and (ii) above, all officers and directors of the Company and holders of at least one percent (1%) of the
Company’s voting securities are bound by and have entered into similar agreements. The obligations described in this Section 2.12 shall not apply to a registration relating solely to employee benefit plans on Form S-1 or Form S-8 or
similar forms that may be promulgated in the future, or a registration relating solely to a transaction on Form S-4 or similar forms that may be promulgated in the future. The Company may impose stop-transfer instructions and may stamp each such
certificate with the fourth legend set forth in Section 2.4 with respect to the shares of Common Stock (or other securities) subject to the foregoing restriction until the end of such one hundred eighty (180) or ninety (90) day (or
other) period. Holder agrees to execute a market standoff agreement with said underwriters in customary form consistent with the provisions of this Section 2.12. 
 Section 2.13 Right of First Refusal. The Holder hereby acknowledges that the shares of Restricted Stock shall be subject to a right of first refusal to the extent provided for in the
Company’s Investor Rights Agreement, as amended from time to time, to which agreement the Holder shall be a party. 
 ARTICLE III.
MISCELLANEOUS 
 Section 3.1 Restricted Stock Not Transferable. No share of Restricted Stock or any interest or right
therein or part thereof shall be liable for the debts, contracts or engagements of the Holder or his successors in interest or shall be subject to disposition by sale, transfer, alienation, anticipation, pledge, encumbrance, assignment or any other
means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy) until such time as the share of Restricted Stock has
vested, and any attempted disposition thereof shall be null and void and of no effect; provided further, that each share of Restricted Stock, whether vested or unvested, shall be subject to transfer restrictions under applicable securities laws and
Sections 2.4, 2.6, 2.12 and 2.13 of this Agreement.

  

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Section 3.2 Conditions to Delivery of Stock Certificates. The Company shall not be required to deliver any certificate or certificates for shares of stock pursuant to this
Agreement prior to fulfillment of all of the following conditions: 
 (a) Approval. The obtaining of any approval or other
clearance from any state or federal governmental agency which the Board shall, in its sole discretion, determine to be necessary or advisable; and 
 (b) Payment. The payment by the Holder of all amounts required to be withheld, under federal, state and local (or applicable foreign) tax laws, with respect to the issuance and/or the lapse or removal of
any of the Restrictions which may be paid either by the Holder or, if approved in writing by the Board, by the Holder electing that the Company withhold that number of shares of Common Stock with a fair market value equal to the minimum tax
withholding obligation at the election of the Holder. 
 Section 3.3 Physical Custody. The Secretary of the Company or such
other representative as the Board may appoint shall retain physical custody of each certificate representing Restricted Stock until all of the restrictions imposed under the Agreement with respect to the shares evidenced by such certificate expire
or shall have been removed; provided, however, that in no event shall the Holder retain physical custody of any certificates representing unvested Restricted Stock assigned to Holder and provided further that the Company may determine not to issue
certificates, but rather to make a book entry to reflect the issuance of the shares. 
 Section 3.4 Notices. Any notice
required by this Agreement will be deemed provided and delivered to the intended recipient when (i) delivered in person by hand; or (ii) three days after being sent via U.S. certified mail, return receipt requested; or (iii) the day
after being sent via overnight courier, in each case provided such notice is properly addressed to the following address and enclosed in a properly sealed envelope or wrapper, and with all postage and similar fees having been paid in advance.

  

			
	If to the Company:	  	 DMI Life Sciences, Inc.
 8400 East Crescent Parkway
 Suite 600
 Greenwood Village, Colorado 80111

		
	If to the Holder:	  	To the address specific in the Company’s payroll records.

 By a notice given pursuant to this Section 3.4, either party may hereafter designate a different address for notices to be given. Any notice which is required to be given to the Holder shall, if the Holder is then deceased, be given to
the Holder’s personal representative if such representative has previously informed the Company of representative’s status and address by written notice under this Section 3.4. 
 Section 3.5 Titles. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of
this Agreement. 
 Section 3.6 Conformity to Securities Laws. The Holder acknowledges that this Agreement is intended to
conform to the extent necessary with all provisions of all applicable federal and state (and applicable foreign) laws, rules and regulations (including but not limited to, the Securities Act and the Exchange Act and to such approvals by any listing,
regulatory or other

  

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governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith. Notwithstanding anything herein to the contrary, this Agreement shall
be administered, and the Restricted Stock shall be assigned, only in such a manner as to conform to such laws, rules and regulations including, without limitation, Rule 16b-3. To the extent permitted by applicable law, this Agreement and the
Restricted Stock assigned hereunder shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 
 Section 3.7 Amendment and Successors. 
 (a) Amendment. This Agreement may be amended without the consent
of the Holder provided that such amendment would not impair any rights of the Holder under this Agreement. No amendment of this Agreement shall, without the consent of the Holder, impair any rights of the Holder under this Agreement. 
 (b) Successors. All obligations of the Company under this Agreement with respect to the award of Restricted Stock shall be binding on any
successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. This Agreement shall
inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon Holder and his or her heirs, executors, administrators, successors and assigns. The
rights and obligations of Holder under this Agreement may only be assigned with the prior written consent of the Company. 
 Section 3.8 Governing Law and Jurisdiction. 
 (a) Governing Law. The laws of the State of Colorado
shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws. 
 (b) Jurisdiction. The Holder irrevocably agrees that any legal action, suit or proceeding arising out of or relating to this Agreement may
be brought in the courts of the United States of America located in the District of Colorado or in the courts of the State of Colorado located in the County of Arapahoe. By the execution of this Agreement, the Holder irrevocably submits to the
jurisdiction of any such court in any such action, suit or proceeding. Final judgment against the Holder in any such action, suit or proceeding shall be conclusive and may be enforced in any other jurisdiction by suit on the judgment, a certified or
exemplified copy of which shall be conclusive evidence of the judgment, or in any other manner provided by law. 
 Section 3.9
Section 83(b) Election. If, within 30 days of the Grant Date, a Holder makes an election under Section 83(b) of the Code, or any successor section thereto, to be taxed with respect to all or any portion of the Restricted Stock as of
the date of transfer of the Restricted Stock rather than as of the date or dates upon which the Holder would otherwise be taxable under Section 83(a) of the Code, the Holder shall deliver a copy of such election to the Company immediately after
filing such election with the Internal Revenue Service. The Holder has reviewed with the Holder’s own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement.
The Holder is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. 
  

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 Section 3.10 No Constraint on Corporate Action. Nothing in this Agreement shall be
construed to: (a) limit, impair, or otherwise affect the Company’s or a subsidiary’s or an affiliate’s right or power to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure, or to
merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets; or, (b) limit the right or power of the Company or a subsidiary or an affiliate to take any action which such entity deems to be
necessary or appropriate. 
 IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto.

  

									
	DMI LIFE SCIENCES, INC.	 		 	HOLDER
				
	By:	 	
 

	 		 	
 

		 	Name:	 		 	Name:	 	Bruce G. Miller
		 	Title:	 		 		 	

  

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 EXHIBIT A 
 IRREVOCABLE STOCK POWER 
 FOR VALUE RECEIVED,
the undersigned does hereby sell, assign and transfer to: 
 DMI Life Sciences, Inc. (the “Company”) 
 Taxpayer Identifying No.:
                         
                                         
                     shares of the Common Stock of the Company represented by Certificate(s) No.(s)
                                     inclusive, registered in the
name(s) of
                                        .

 The undersigned does hereby irrevocably constitute and appoint
                                         
                    attorney to transfer the said stock on the books of the Company, with full power of substitution in the premises. 
  

			
	By:	 	
 

		
	Dated:	 	  

  

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 EXHIBIT B 
 VESTING MILESTONES 
 As provided in Section 2.3(e) above, the
vesting of the 1,000,000 Restricted Shares referred to in Section 2.3(c) and 2.3(d) will be accelerated upon the achievement of the following milestones: 
  

	 	•	 	 Design and fabricate (small scale) a disposable single-use electrochemical test strip capable of attaining reproducible and accurate test results of
oxidation-reduction potential (ORP) in blood of one or more selected patient populations (including normals) that correlate to the results obtained from existing ORP 

  

	 	•	 	 125,000 shares become fully vested upon this milestone achievement 

  

	 	•	 	 Write clinical trial protocol for initial POC study, including but not limited to a brief summary, background information, study design, inclusion and
exclusion criteria, sample size calculation, data capture processes, adverse event recording, safety reviews, statistical analysis and relevant scientific and regulatory references 

  

	 	•	 	 125,000 shares become fully vested upon this milestone achievement 

  

	 	•	 	 Complete a sampling study for one new clinical indication of ORP 

  

	 	•	 	 125,000 shares become fully vested upon this milestone achievement 

  

	 	•	 	 Submit 510(k), an IDE, or a PMA application to FDA in any patient population or clinical application for initial use of ORP sensor

  

	 	•	 	 125,000 shares become fully vested upon this milestone achievement 

  

	 	•	 	 Select an initial clinical indication for DMI-5207 (danazol) based on scientific data reviews, medical need assessments and initial key opinion leader
and regulatory affairs interview 

  

	 	•	 	 125,000 shares become fully vested upon this milestone achievement 

  

	 	•	 	 Complete a preliminary market analysis for the selected clinical indication for DMI-5207 

  

	 	•	 	 125,000 shares become fully vested upon this milestone achievement 

  

	 	•	 	 Complete a gap analysis, task list and dose-ranging clinical trial protocol for an IND submission for DMI-5207 for the selected initial clinical
indication 

  

	 	•	 	 125,000 shares become fully vested upon this milestone achievement 

  

	 	•	 	 Complete a plan for a pilot safety/tolerability clinical trial for DMI-5207 in the selected patient population 

  

	 	•	 	 125,000 shares become fully vested upon this milestone achievement 

 To the extent that any of the milestones are satisfied, the restricted shares which will early vest shall be taken from the portion of the restricted shares with the longest remaining time to vesting
under the time vesting schedule. 
  

 10Sponsored Research Agreement dated September 1, 2009

 Exhibit 10.5 
 SPONSORED RESEARCH AGREEMENT 
 This Sponsored Research
Agreement (the “Agreement”) is made by and between Trauma Research LLC (“TRLLC”), a Colorado limited liability company, having its address at 900 East Oxford Lane, Englewood, Colorado 80113 and DMI Life Sciences, Inc.
(“Sponsor”), a Delaware corporation, with its principal place of business at 8400 East Crescent Parkway, Suite 600, Greenwood Village, Colorado 80111. 
 RECITALS 
 [Information redacted pursuant to confidential treatment request
filed with the Securities and Exchange Commission] 
 WHEREAS, Sponsor desires that TRLLC perform certain research work
hereinafter described and is willing to advance personnel, equipment and other resources to sponsor such research; and 
 WHEREAS, TRLLC is willing to perform such research for Sponsor; 
 NOW THEREFORE, in consideration of the
mutual covenants and promises herein contained, TRLLC and Sponsor agree as follows: 
 I. EFFECTIVE DATE 
 This Agreement shall be effective as of September 1, 2009 (the “Effective Date”). 

 II. RESEARCH PROJECT 
 2.1 TRLLC will use its best efforts to conduct the research project described in Attachment A, as amended and supplemented from time
to time (collectively, the “Research Project”) and will furnish the laboratory facilities necessary to carry out the Research Project. The Research Project will be under the direction of David Bar-Or, M.D. (the “Principal
Investigator”) and will be conducted at [Information redacted pursuant to confidential treatment request filed with the Securities and Exchange Commission] one or more other suitable facilities selected by TRLLC. 
 2.2 The Research Project shall be performed commencing on the Effective Date and continuing until August 31, 2014, or until this
Agreement is earlier terminated or extended as provided in Article IX. 
 2.3 [Information redacted pursuant to
confidential treatment request filed with the Securities and Exchange Commission] The manner of performance of the Research Project shall be determined solely by the Principal Investigator. TRLLC does not guarantee specific results, and the Research
Project will be conducted only on a best efforts basis. 
 2.4 TRLLC will keep accurate financial and scientific records
relating to the Research Project and will make such records available to Sponsor or its authorized representative throughout the term of the Agreement and for a period of one year following termination of the Agreement, or for such longer period
required by law, during normal business hours upon reasonable notice. 
 2.5 Sponsor understands that TRLLC, alone or
with other researchers, may be involved in conducting research on behalf of other sponsors. TRLLC agrees that all such research will be conducted separately and by different investigators from the Research Project. Sponsor shall not gain any rights
via this Agreement to such other research. 
 2.6 TRLLC does not guarantee that any patent rights will result from the
Research Project, that the scope of any patent rights obtained will cover Sponsor’s commercial interests, or that any such patent rights will be free of dominance by other patents. 
 III. SPONSOR CONTRIBUTIONS 
 [Information redacted
pursuant to confidential treatment request filed with the Securities and Exchange Commission] 

 [Information redacted pursuant to confidential treatment request filed with the Securities
and Exchange Commission] 
 3.3 Within sixty (60) days after the end of each calendar year the Research Project is
conducted, the Principal Investigator and the Sponsor’s representative shall meet to evaluate and, if appropriate, to revise the Research Project to accurately reflect anticipated activities for the coming year. 
 3.4 TRLLC shall maintain any Research Project funds in a separate account and shall expend such funds as agreed with Sponsor for
wages (other than for Sponsor’s personnel who shall be paid by Sponsor), supplies, equipment, travel, and other operation expenses in connection with the Research Project. It is understood that funds for the Research Project which are not used
in a particular quarter or during the initial one year period of this Agreement may be used in subsequent quarters or periods during the Term of this Agreement. 
 IV. CONSULTATION AND REPORTS 
 4.1 Sponsor’s designated
representative for consultation and communications with the Principal Investigator shall be Bruce G. Miller or such other person as Sponsor may from time to time designate in writing to TRLLC and to the Principal Investigator. 
 4.2 During the Term of this Agreement, Sponsor’s representatives may consult informally with the Principal Investigator and
other TRLLC representatives regarding the Research Project, both personally and by telephone. Access to work carried on by TRLLC in the course of these investigations shall be entirely under the control of the Principal Investigator but shall be
made available on a reasonable basis for observation of the work. 
 4.3 The Principal Investigator will make up to four
oral reports each year during the term of this Agreement as requested by Sponsor’s designated representative. Within ninety (90) days after termination of this Agreement, the Principal Investigator shall prepare a final report summarizing
all activities undertaken and accomplishments achieved through the Research Project. 
 4.4 TRLLC shall prepare and
maintain records regarding the Research Project, in sufficient detail and in good scientific manner, which shall be complete and accurate, and shall fully and properly reflect all work done and results achieved in the performance of the Research
Project (including all data in the form required by applicable laws and regulations). Sponsor shall have the right, upon reasonable notice and during normal business hours, to inspect, copy, and to check out all research records and reports
regarding the Research Project; provided that Sponsor shall maintain such records and reports and the information contained therein in confidence in accordance with applicable laws, regulations and agreements. 

 V. PUBLICATION AND ACADEMIC RIGHTS 
 5.1 Principal Investigator shall have the right to publish or otherwise publicly disclose information gained as the result of his
research in the course of this Agreement, but, in order to avoid loss of patent rights as a result of premature public disclosure of patentable information, Principal Investigator will submit any prepublication materials and a summary of any other
planned public disclosure to Sponsor for review and comment at least thirty (30) days prior to the planned submission for publication. The Principal Investigator will have all personnel participating in the Research Project submit all such
prepublication materials and planned public disclosures to the Principal Investigator for submission to Sponsor as set forth in the preceding sentence. Sponsor shall notify the Principal Investigator within fifteen (15) days of receipt of such
materials whether it desires to file patent applications on any inventions contained in the materials; and, if Sponsor chooses to do so, it will promptly proceed to file the patent application(s) in due course. In such case, Principal Investigator
will delay publication and any other disclosure as required to ensure that such filings are made before publication or other disclosure. Principal Investigator shall have final authority to determine the scope and content of any publications, but
Principal Investigator will consider in good faith suggestions by Sponsor. 
 5.2 It is understood that, subject to
Section 5.1, the Principal Investigator may discuss the research being performed under this Agreement with other investigators, but shall not reveal information which is Sponsor’s Confidential Information to the other investigators. TRLLC
and Principal Investigator also agree not to disclose Sponsor’s Confidential Information to any third party and to employ reasonable safeguards to maintain Sponsor’s Confidential Information confidential and to prevent its unauthorized
use, including causing TRLLC’s employees and consultants and others who will have access to Sponsor’s Confidential Information, to be bound by nondisclosure and nonuse undertakings for the protection of Sponsor’s Confidential
Information. “Sponsor’s Confidential Information” means all business and technical information of a proprietary nature, whether in physical or non-physical form, of Sponsor, or any third party proprietary information in the possession
of Sponsor, whether disclosed to TRLLC or Principal Investigator in written, oral or other media form, or by observation or inspection of tangible objects. 
 [Information redacted pursuant to confidential treatment request filed with the Securities and Exchange Commission] 
 VI. INTELLECTUAL PROPERTY 
 6.1 [Information redacted pursuant to
confidential treatment request filed with the Securities and Exchange Commission]

 
[Information redacted pursuant to confidential treatment request filed with the Securities and Exchange Commission] TRLLC waives all moral rights in any such Intellectual Property.
“Intellectual Property” means know-how, trade secrets, inventions, works of authorship, trademarks, and all business and technical information of a proprietary nature (including, without limitation, ideas, discoveries, observations,
research plans, development plans, business plans, methods, techniques, processes, protocols, test results, research results, data, analyses, specifications, formulas, formulations, and computer programs) and all physical embodiments of any of the
foregoing (including, without limitation, memoranda, letters, printouts, compilations, reports, records, notebooks, lists, specifications, software, computer disks, prototypes, instruments, blueprints, diagrams, operating instructions, drawings,
designs, models, proposals, databases, photographs, videos, written descriptions, invention disclosures, patent applications, patents, copyright applications, copyright registrations, trademark applications, trademark registrations, compounds,
compositions and biological materials) and all rights therein throughout the world. Sponsor will have the responsibility for, and bear all expenses incurred in obtaining and maintaining protection for, and enforcing rights in, all such Intellectual
Property. TRLLC will cooperate with Sponsor and will take all necessary steps to assist Sponsor in obtaining and maintaining protection for, and enforcing rights in, all such Intellectual Property, all at Sponsor’s expense. To that end, TRLLC
will execute, verify and deliver such documents and perform such other acts (including providing evidence and witnesses within its control) as Sponsor may reasonably request. If Sponsor is unable because of TRLLC’s or its personnel’s or
Principal Investigator’s unavailability, dissolution, mental or physical incapacity, or for any other reason, to secure the necessary signature(s) to apply for or to pursue any application for any United States or foreign patents or mask work
or copyright registrations covering the Intellectual Property assigned to the Sponsor above, then TRLLC hereby irrevocably designates and appoints the Sponsor and its duly authorized officers and agents as TRLLC’s agent and attorney in fact, to
act for and in TRLLC’s behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of patents, copyright and mask work registrations thereon with the same legal
force and effect as if executed by TRLLC. Upon termination of this Agreement, Sponsor shall retain all physical embodiments of Intellectual Property to which it obtains rights, subject to TRLLC’s right to inspect and copy records. 

6.2 [Information redacted pursuant to confidential treatment request filed with the Securities and Exchange Commission]

 6.3 [Information redacted pursuant to confidential treatment request filed with the Securities and Exchange
Commission] 
 6.4 TRLLC also agrees that it will obtain a written agreement with each third party for research work to
be performed by TRLLC for the third party, and that the agreement will include a

 
detailed description of the research work to be performed and shall clearly limit assignment to the third party of that Intellectual Property which is conceived, developed, suggested, created,
discovered or produced solely as a result of performing the research covered by the agreement. [Information redacted pursuant to confidential treatment request filed with the Securities and Exchange Commission] 
 VII. INSURANCE AND INDEMNIFICATION 
 7.1 [Information redacted pursuant to confidential treatment request filed with the Securities and Exchange Commission] 
 7.2 [Information redacted pursuant to confidential treatment request filed with the Securities and Exchange Commission] 

7.3 Sponsor shall maintain, at its sole cost and expense, business and general liability coverage for the acts and omissions of
itself, its officers, directors, employees and agents, including, but not limited to, covering claims, liabilities, damages and judgments which may arise out of its sponsorship of the Research Project. All such insurance shall be issued upon such
forms and in such amounts that are reasonable and customary in the health care industry. Written documentation of this insurance coverage will be provided to TRLLC upon request. 
 7.4 Each party specifically reserves the common law right of indemnity and/or contribution which either party may have against the
other. Both parties agree that upon receipt of a notice of claim or action for which indemnity may be claimed (or any threat thereof), the party receiving such notice will notify the other party promptly. 
 VIII. INDEPENDENT CONTRACTORS 
 For the purposes of this Agreement and all services to be provided hereunder, the parties shall be, and shall be deemed to be, independent contractors and not agents or employees of the other party.
Neither party shall have authority to make any statements, representations or commitments of any kind, or to take any action which shall be binding on the other party, except as may be expressly provided for herein or authorized in writing.

 IX. TERM AND TERMINATION 
 9.1 This Agreement shall commence on the Effective Date and extend until August 31, 2014, unless sooner terminated in accordance with the provisions of this Article IX or extended by mutual
agreement of the parties. 
 9.2 This Agreement may be terminated by the written agreement of both parties.

 9.3 This Agreement may be terminated without cause by either party. The party wanting
to terminate the Agreement shall provide written notice to the other party at least one-hundred eighty (180) days prior to the date of termination, and the date of termination shall be set forth in the notice. 
 9.4 In the event that either party shall be in default of its material obligations under this agreement and shall fail to remedy such
default within sixty (60) days after receipt of written notice thereof, this Agreement shall terminate upon expiration of the sixty (60) day period. 
 9.5 Termination or cancellation of this Agreement shall not affect the rights and obligations of the parties accrued prior to termination. 
 9.6 Any provisions of this Agreement which by their nature extend beyond termination hereof shall survive such termination.

 X. ATTACHMENTS 
 Attachments A, B, C and D are incorporated herein and made a part hereof for all purposes. Attachment A is not intended to provide or reflect the dates of conception or reduction to practice of any invention. 
 XI. MATERIALS TRANSFER 
 11.1 [Information redacted pursuant to confidential treatment request filed with the Securities and Exchange Commission] 
 11.2 The Sponsor’s Material shall be used by the Principal Investigator solely in connection with the Research Project and not
for any other purpose without the prior written consent of Sponsor, which consent shall not be unreasonably withheld. TRLLC shall not distribute, release, or in any way disclose Sponsor’s Material to any person or entity other than laboratory
personnel under the Principal Investigator’s direct supervision. 
 11.3 The Receiving Party shall ensure that no
one will be allowed to take or send Material to any other location, unless written permission is obtained from the Disclosing Party. The Material is made available by TRLLC and Sponsor for investigational use only in laboratory animals or in
vitro experiments. Neither the Material, nor any chemical or biological materials treated therewith or derived therefrom, will be used in human beings. 
 11.4 This Agreement and the resulting transfer of Material constitute a license to use the Material solely for purposes of the Research Project. Except as otherwise provided in this Agreement, the
Receiving Party agrees that nothing pursuant to this Article XI shall be deemed to grant any rights under any patents. At the request of the Disclosing Party, the Receiving Party will return all unused Material, whether or not during the Term.

 11.5 Any Material provided is experimental in nature and shall be provided WITHOUT WARRANTY OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE OR ANY

 
OTHER WARRANTY, EXPRESS OR IMPLIED. THERE IS NO REPRESENTATION OR WARRANTY THAT THE USE OF THE MATERIAL WILL NOT INFRINGE ANY PATENT OR OTHER PROPRIETARY RIGHT. 
 11.6 In no event shall the Disclosing Party be liable for any use by the Receiving Party of the Material or any loss, claim, damage
or liability, of whatsoever kind or nature, which may arise from or in connection with this Agreement or the use, handling or storage of the Material. 
 11.7 The Receiving Party will use the Material in compliance with all laws, governmental regulations and guidelines applicable to the Material. 
 XII. GENERAL 
 12.1 This Agreement may be assigned by Sponsor in connection with an acquisition (by whatever means) by, merger with, or the sale of substantially all of its related business to, another. This Agreement may otherwise be assigned by
Sponsor only with the consent of TRLLC, not to be unreasonably withheld. TRLLC may not assign this Agreement without the consent of Sponsor. 
 12.2 This Agreement constitutes the entire and only agreement between the parties relating to the Research Project, and all prior negotiations, representations, agreements and understandings are
superseded hereby. No agreements altering or supplementing the terms hereof may be made except by means of a written document signed by the duly authorized representatives of the parties. 
 12.3 Any notice required or permitted to be given under this Agreement shall be in writing and shall be deemed to be properly given
on the date of personal delivery or three (3) days after deposit in the U. S. mail, sent by registered or certified mail, return receipt requested, and addressed as follows: 
  

			
	If to TRLLC:	  	 900 East Oxford Lane
 Englewood, CO 80110
 Attn: David Bar-Or, M.D.

		
	If to Sponsor:	  	 DMI Life Sciences, Inc.
 8400 East Crescent Parkway, Suite 600
 Greenwood Village, Colorado 80111
 Attn: Bruce G. Miller

 or at such other addresses as may be given from time to
time in accordance with the terms of this notice provision. 
 12.4 This Agreement shall be governed by, construed, and
enforced in accordance with the internal laws of the State of Colorado. 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized
representatives. 
  

									
	DMI LIFE SCIENCES, INC.	 		 	TRAUMA RESEARCH, LLC
					
	By:	 	
 

	 		 	By:	 	
 

		 	Bruce G. Miller	 		 		 	David Bar-Or, M.D.
		 	President & CEO	 		 		 	Manager

 Attachment A 
 DESCRIPTION OF RESEARCH PROJECT 
 [Information
redacted pursuant to confidential treatment request filed with the Securities and Exchange Commission] 

 ATTACHMENT B 
 [Information redacted pursuant to confidential treatment request filed with the Securities and Exchange Commission] 

 ATTACHMENT C 
 [Information redacted pursuant to confidential treatment request filed with the Securities and Exchange Commission] 

 ATTACHMENT D 
 [Information redacted pursuant to confidential treatment request filed with the Securities and Exchange Commission]

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