Document:

Exhibit 10.19

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [...***...], HAS BEEN OMITTED BECAUSE IT IS BOTH (I)
NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

 

 

LICENSE AGREEMENT

 

BETWEEN

 

LEADING BIOSCIENCES, INC.

 

AND

 

THE REGENTS OF THE UNIVERSITY OF CALIFORNIA

 

FOR

 

CASE NO. [...***...]

CASE NO. [...***...]

 

 

 

***Certain Confidential Information Omitted

    	Page 1 of 25

     

    

 

TABLE OF CONTENTS

 

	Recitals	 	3
	 	 	 
	Article 1:	Definitions	4
	 	 	 
	Article 2:	Grants	6
	 	 	 
	Article 3:	Consideration	8
	 	 	 
	Article 4:	Reports, Records And Payments	11
	 	 	 
	Article 5:	Patent Matters	14
	 	 	 
	Article 6:	Governmental Matters	17
	 	 	 
	Article 7:	Termination Or Expiration Of The Agreement	17
	 	 	 
	Article 8:	Limited Warranty And Indemnification	18
	 	 	 
	Article 9:	Use Of Names And Trademarks	21
	 	 	 
	Article 10:	Miscellaneous Provisions	21
	 	 	 
	Exhibit A: 	Due Diligence Obligations	25

 

 

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LICENSE
AGREEMENT

 

This agreement (“Agreement”) is made by and between
Leading BioSciences, Inc., a Delaware corporation having an address at 5800 Armada Dr, Suite 210, Carlsbad, California 92008 (“LICENSEE”)
and The Regents of the University of California, a California public corporation having its statewide administrative offices at
1111 Franklin Street, Oakland, California 94607-5200 (“UNIVERSITY”), represented by its San Diego campus having an
address at University of California San Diego, Office of Innovation and Commercialization, Mail Code 0910, 9500 Gilman Drive, La
Jolla, California 92093-0910 (“UC San Diego”).

 

This Agreement is effective on the date of the last signature
(“Effective Date”).

 

RECITALS

 

WHEREAS, the inventions disclosed in UC SAN DIEGO Disclosure
Docket No. [...***...], and in UC SAN DIEGO Disclosure Docket No. [...***...] (collectively “Invention”),
were made in the course of research at UC San Diego by [...***...] and associates (hereinafter and collectively, the
“Inventors”) and are covered by Patent Rights as defined below;

 

WHEREAS, the Inventors are/were employees of UC SAN DIEGO,
and they are obligated to assign all of their right, title and interest in the Invention to UNIVERSITY;

 

WHEREAS, UNIVERSITY is desirous that the Invention be
developed and utilized to the fullest possible extent so that its benefits can be enjoyed by the general public;

 

WHEREAS, LICENSEE is desirous of obtaining certain rights
from UNIVERSITY for commercial development, use, and sale of the Invention, and the UNIVERSITY is willing to grant such rights;
and

 

WHEREAS, LICENSEE understands that UNIVERSITY may publish
or otherwise disseminate information concerning the Invention at any time and that LICENSEE is paying consideration thereunder
for its early access to the Invention, not continued secrecy therein.

 

NOW, THEREFORE, the parties agree:

 

Remainder of page intentionally left blank.

 

 

***Certain Confidential Information Omitted

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Article
1.    Definitions

 

The terms, as defined herein, shall have the same meanings in
both their singular and plural forms.

 

1.1         “Affiliate”
means any corporation or other business entity in which LICENSEE owns or controls, directly or indirectly, at least fifty percent
(50%) of the outstanding stock or other voting rights entitled to elect directors, or in which LICENSEE is owned or controlled
directly or indirectly by at least fifty percent (50%) of the outstanding stock or other voting rights entitled to elect directors;
but in any country where the local law does not permit foreign equity participation of at least fifty percent (50%), then an “Affiliate”
includes any company in which LICENSEE owns or controls or is owned or controlled by, directly or indirectly, the maximum percentage
of outstanding stock or voting rights permitted by local law.

 

1.2         “Combination
Product” means any product which is a Licensed Product (as defined below) and contains other product(s) or product component(s)
that is not an excipient, diluent, adjuvant, buffer and the like and (i) does not use Invention or Patent Rights (as defined below);
(ii) the sale, use or import by itself does not contribute to or induce the infringement of Patent Rights; (iii) is sold separately
by LICENSEE, its Sublicensee (as defined below) or an Affiliate; and (iv) enhances the market price of the final product(s) sold,
used or imported by LICENSEE, its Sublicensee, or an Affiliate.

 

1.3         “Excluded
Fields” analysis of human clinical samples associated with blood cancers, solid tumors, and other samples related to oncology
conditions and diseases, and provision of sample testing services directed to such cancer, tumor, and oncology samples; and manufacture
and sale of research (non-clinical testing) laboratory equipment for direct sale to research laboratories.

 

1.4         “Exclusive
Field” means analysis of animal samples and human clinical samples (including microbial samples from an animal or human),
including detecting and measuring proteases, enzymes, and biomolecules in bodily fluids, breath, and other sources, but excluding
the Excluded Fields.

 

1.5         “Licensed
Method” means any method that is claimed in Patent Rights (as defined below), the use of which would constitute, but for
the license granted to LICENSEE under this Agreement, an infringement, an inducement to infringe or contributory infringement,
of any pending or issued claim within Patent Rights.

 

1.6         “Licensed
Product” means any service, machine, manufacture, composition of matter, or other product that is claimed in Patent Rights,
or that includes the practice of methodology under the Licensed Methods, or the manufacture, use, sale, offer for sale, or importation
of which would constitute, but for the license granted to LICENSEE under this Agreement, an infringement, an inducement to infringe
or contributory infringement, of any pending or issued claim within the Patent Rights.

 

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1.7         “Net Sales” means the total of the gross invoice prices of Licensed Products sold or leased by LICENSEE, Sublicensee,
Affiliate, or any combination thereof, less the sum of the following actual and customary deductions where applicable and separately
listed: [...***...]. For purposes of calculating Net Sales, [...***...]. Notwithstanding the foregoing, [...***...],
shall be disregarded in determining Net Sales.

 

1.8         [Intentionally Omitted]

 

1.9         “Patent
Costs” means all expenses for the preparation, filing, prosecution, and maintenance of all United States and foreign patents
included in Patent Rights. Patent Costs shall also include out-of-pocket expenses for patentability opinions, inventorship determination,
preparation and prosecution of patent application, re-examination, re-issue, interference, and opposition activities related to
patents or applications in Patent Rights.

 

1.10       “Patent
Rights” means UNIVERSITY’s rights in any of the following:

 

(1)       all patent
rights associated with UC SAN DIEGO Case File [...***...]; all continuing applications thereof, including divisions,
substitutions, and continuations-in-part (but only to the extent the claims thereof are entirely supported in the specification
and entitled to the priority date of the parent application); and any patents issuing on said applications, including reissues
and reexaminations, any extensions, and any corresponding foreign applications or patents; and

 

(2)       all patent
rights associated with UC SAN DIEGO Case File [...***...]; any continuing applications thereof, including divisions,
substitutions, and continuations-in-part (but only to the extent the claims thereof are entirely supported in the specification
and entitled to the priority date of the parent application); and any patents issuing on said applications, including reissues
and reexaminations, any extensions, and any corresponding foreign applications or patents.

 

1.11       “Sublicense”
means an agreement into which LICENSEE enters with a third party that is not an Affiliate for the purpose of (i) granting certain
rights; (ii) granting an option to certain rights; or (iii) forbearing the exercise of any rights, granted to LICENSEE under this
Agreement.

 

***Certain Confidential Information Omitted

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1.12        “Sublicensing
Revenue” means all issue and upfront fees, milestone payments, sums and valuable consideration, and similar license fees
received by LICENSEE from its Sublicensees in consideration for the grant of a Sublicense, but excluding:

 

 [...***...].

1.13       “Sublicensee”
means a third party with whom LICENSEE enters into a Sublicense.

 

1.14       “Term” means the period of time beginning on the Effective Date and ending on the expiration date of the longest-lived
Patent Rights.

 

1.15       “Territory”
means world-wide where Patent Rights exist.

 

1.16       “WTO
Least-Developed Countries” means those countries which have been designated as least-developed countries (‘LDCs’)
by the United Nations, and are recognized as such by the World Trade Organization (“WTO”) and listed on the WTO website:
www.wto.org.

 

Article
2.    Grants

 

2.1         License.
Subject to the limitations set forth in this Agreement and Sponsor’s Rights, UNIVERSITY hereby grants to LICENSEE, and LICENSEE
hereby accepts, a license under Patent Rights to make and have made, to use and have used, to sell and have sold, to offer for
sale, and to import and have imported Licensed Products and to practice Licensed Methods, in the Field within the Territory and
during the Term. LICENSEE may extend such license to Affiliates, provided that the LICENSEE is responsible for such Affiliates
meeting their obligations under this License.

 

The license granted herein is exclusive for Patent Rights within
the Exclusive Field.

 

UNIVERSITY may grant to third parties licenses under Patent
Rights in the Excluded Fields, within the Territory and during the Term.

 

2.2         Sublicense.

 

(a)              
The license granted in Section 2.1 includes the right of LICENSEE to grant Sublicenses to third parties during the Term
but only for as long as the license is exclusive.

 

(b)              
With respect to Sublicense granted pursuant to Paragraph 2.2(a), LICENSEE shall:

 

***Certain Confidential Information Omitted

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(i)               not
receive, or agree to receive, anything of value in lieu of cash as consideration from a third party under a Sublicense granted
pursuant to Paragraph 2.2(a) without the express written consent of UNIVERSITY;

 

(ii)             
to the extent applicable, include all of the rights of and obligations due to UNIVERSITY and contained in this Agreement;

 

(iii)            
promptly provide UNIVERSITY with a copy of each Sublicense issued; and

 

(iv)            collect
and guarantee payment of all payments due, directly or indirectly, to UNIVERSITY from Sublicensees and summarize and deliver all
reports due, directly or indirectly, to UNIVERSITY from Sublicensees.

 

(c)              
Upon termination of this Agreement for any reason, UNIVERSITY may terminate a Sublicensee but may allow LICENSEE to assign
to UNIVERSITY any Sublicenses provided a) that the Sublicensee is in good standing upon termination of this Agreement with Licensee;
b) the Sublicensee is not currently involved in litigation as an adverse party to the UNIVERSITY; and c) the Sublicensee is not
operating in countries that UNIVERSITY is unable to do business with. In no case, however, will UNIVERSITY be bound by duties and
obligations contained in any Sublicense that extends beyond the duties and obligations of the UNIVERSITY set forth in this Agreement.
If a Sublicense survives, the Sublicensee will promptly agree in writing to be bound by the terms of this Agreement, including
but not limited to, in lieu of the payment obligations under the applicable Sublicense agreement, payment to the UNIVERSITY of
milestone, earned royalty, patent reimbursement, and Sublicense fees required under Article 3. If there is more than one Sublicense
that survives the termination of this Agreement, the payment obligations described above may be prorated among the Sublicenses.

 

(d)              
Mandatory Sublicensing:

 

(I)                At
any time after [...***...] from the Effective Date, if LICENSEE [...***...], then UNIVERSITY shall give notice
to LICENSEE. LICENSEE shall, within [...***...] of such notice, either (i) complete a Sublicense grant to a third party
of a scope that would permit the third party to develop and commercialize a Licensed Product of interest to the third party as
set forth in the development plan, or (ii) provide UNIVERSITY a detailed plan acceptable to UNIVERSITY for the development, manufacture
and commercialization of a product in such area of usage. LICENSEE shall begin actual implementation of, and maintain, such a plan
immediately. Such plan shall become part of the terms of this Agreement. If LICENSEE does not either (i) complete a Sublicense
grant or (ii) demonstrate implementation of said development plan within [...***...] of receipt of such notice from UNIVERSITY,
then UNIVERSITY shall have the right to exclude such indication from LICENSEE’s Exclusive Field.

 

***Certain Confidential Information Omitted

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(II)              In
the event that LICENSEE and the third party are unable to reach agreement and LICENSEE does not grant a Sublicense to the third
party within [...***...] after the notice specified in the above paragraph of 3.3(c), or refuses to grant such Sublicense
under reasonable terms, then LICENSEE shall promptly submit to UNIVERSITY a written report specifying the license terms proposed
by the third party and a written justification for the LICENSEE’s refusal or failure to grant such Sublicense. If UNIVERSITY,
[...***...].

 

2.3         Reservation of Rights. UNIVERSITY reserves the right to:

 

(a)              
use the Invention and Patent Rights for educational and research purposes;

 

(b)              
publish or otherwise disseminate any information about the Invention at any time; and

 

(c)              
allow other nonprofit institutions to use and publish or otherwise disseminate any information about Invention and Patent
Rights for educational and research purposes.

 

Article
3.    Consideration

 

3.1         Fees and Royalties. The parties hereto understand that the fees and royalties payable by LICENSEE to UNIVERSITY under
this Agreement are partial consideration for the license granted herein to LICENSEE under Patent Rights. LICENSEE shall pay UNIVERSITY:

 

(a)              
a license issue fee of five thousand dollars (US$5,000), one thousand (US$1,000) dollars of which will be paid within [...***...]
after the Effective Date, and the balance of which will be paid within [...***...] after the Effective Date;

 

(b)              
license maintenance fees of [...***...] per year and payable on the first anniversary of the Effective Date and
annually thereafter on each anniversary; provided however, that LICENSEE’s obligation to pay this fee shall end on the date
when LICENSEE is commercially selling a Licensed Product;

 

Remainder of page intentionally left blank.

 

 

 

 

***Certain Confidential Information Omitted

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(c)              
LICENSEE shall pay UNIVERSITY the following milestone payments according to the following schedule of events:

 

	 	Amount in US 

dollars	Event
	A	$[...***...]	[...***...]
	B	$[...***...]	[...***...]
	C	$[...***...]	[...***...]
	D	$[...***...]	[...***...]
	E	$[...***...]	[...***...]
	F	$[...***...]	Upon cumulative Net Sales of $[...***...] in US dollars
	G	$[...***...]	Upon cumulative Net Sales of $[...***...] in US dollars
	H	$[...***...]	Upon cumulative Net Sales of $[...***...] in US dollars
	I	$[...***...]	Upon cumulative Net Sales of $[...***...] in US dollars
	J	$[...***...]	Upon cumulative Net Sales of $[...***...] in US dollars

 

(d)              
an earned royalty (“Earned Royalty”) of [...***...] on Net Sales of Licensed Products by LICENSEE,
Sublicensees, and/or Affiliates, provided, however, that the earned royalty due on Net Sales of Combination Product by LICENSEE
and/or its Affiliate(s) shall be calculated as below:

 

Earned Royalties due UNIVERSITY = [...***...],
where:

 

[...***...]; and

 

[...***...], that satisfy the requirements
outlined in Paragraph 1.2 (“Combination Products”). For any products in B for which LICENSEE has reduced its earned
royalties payable to UNIVERSITY under 3.1(d), this provision shall not apply.

 

 

 

 

***Certain Confidential Information Omitted

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(I)                In the
event LICENSEE is required to pay royalties to one or more third parties for patent rights necessary to make, use or sell Licensed
Products, LICENSEE may deduct $[...***...] from the earned royalties payable to UNIVERSITY for every $[...***...]
LICENSEE actually pays to said third parties; provided, however, in no event shall the amount payable to UNIVERSITY be less than
[...***...]% of the amount otherwise due, unless the Parties agree to otherwise in writing.

 

(II)              Royalty-Free
for Developing Nations. For sales, during a calendar year, of Licensed Product to end-users, in any nation that is recognized
as WTO Least-Developed Countries at the end of the same calendar year, LICENSEE shall not collect royalties from, or cause to be
paid on, those Licensed Products sold by LICENSEE, Sublicensees, and/or Affiliates.

 

(e)              
[...***...] of all Sublicense Revenue Payments received by LICENSEE from its Sublicensees that are not earned
royalties or otherwise excluded under Section 1.11.

 

(f)               
beginning the calendar year of commercial sales of the first Licensed Product by LICENSEE, Sublicensee, or an Affiliate,
and if the total Earned Royalties paid by LICENSEE under Paragraph 3.1(c) to UNIVERSITY in any such year cumulatively amounts to
less than [...***...], LICENSEE shall pay to UNIVERSITY on or before February 28 each year the difference between [...***...]
and the total Earned Royalty paid by LICENSEE for such year under Paragraph 3.1(d) (the “Minimum Annual Royalty”);
provided however, that for the year of commercial sales of the first Licensed Product, the amount of minimum annual royalty payable
shall be pro-rated for the number of months remaining in that calendar year.

 

All fees and royalty payments specified in Paragraphs 3.1(a)
through 3.1(f) above shall be paid by LICENSEE pursuant to Paragraph 4.3 and shall be delivered by LICENSEE to UNIVERSITY as noted
in Paragraph 10.1.

 

3.2         Patent
Costs. LICENSEE shall reimburse UNIVERSITY for any unreimbursed past Patent Costs (incurred prior to the Effective Date).
Past Patent Costs are approximately [...***...], and Licensee shall pay [...***...] within [...***...]
of the Effective Date, [...***...] within [...***...] of the Effective Date, and the remaining balance within
[...***...] of the Effective Date.

 

LICENSEE shall reimburse UNIVERSITY all future (on or after
the Effective Date), Patent Costs incurred during the Term and in the Territory within [...***...] following the date
an itemized invoice is sent from UNIVERSITY to LICENSEE.

 

3.3         Due
Diligence.

 

(a)              
LICENSEE shall, either directly or through its Affiliate(s) or Sublicensee(s):

 

***Certain Confidential Information Omitted

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(i)               diligently
proceed with the development, manufacture and sale of Licensed Products;

 

(ii)             
annually spend not less than [...***...] for the development of Licensed Products during the first [...***...]
years of this Agreement. LICENSEE may, at its sole option, [...***...];

 

(iii)             complete the diligence obligations in Exhibit A herein.

 

(iv)             market
Licensed Products in the United States within [...***...] of receiving regulatory approval to market such Licensed Products;

 

(v)              fill
the market demand for Licensed Products following commencement of marketing at any time during the term of this Agreement; and

 

(vi)            
obtain all necessary governmental approvals for the manufacture, use and sale of Licensed Products.

 

(b)              
If LICENSEE fails to perform any of its obligations specified in Paragraphs 3.3(a)(i)-(vi), then UNIVERSITY shall have the
right and option to either terminate this Agreement or change LICENSEE’s exclusive license to a nonexclusive license. This
right, if exercised by UNIVERSITY, supersedes the rights granted in Article 2.

 

Article
4.    Reports, Records and Payments

 

4.1         Reports.

 

(a)              
Progress Reports. LICENSEE will diligently keep UNIVERSITY updated, by email, and as requested, by teleconference,
regarding substantial progress developing Products. In addition, upon the written request of UNIVERSITY, beginning [...***...]
after Effective Date and ending on the date of first commercial sale of a Licensed Product in the United States, LICENSEE shall
report to UNIVERSITY progress covering LICENSEE’s (and Affiliate’s and Sublicensee’s) activities for the preceding
year to develop and test all Licensed Products and obtain governmental approvals necessary for marketing the same. Such annual
reports shall be due within [...***...] of the reporting period and include a summary of work completed, summary of work
in progress, current schedule of anticipated events or milestones, market plans for introduction of Licensed Products, and summary
of resources (dollar value) spent in the reporting period. The reports referred to in this Section 4.1(a) should be marked with
the following title and case number: “License Agreement between UC SAN DIEGO and Leading Biosciences, Inc., for case [...***...].”
Reports shall be submitted as attachment to UC SAN DIEGO’s email address: [...***...]

 

 

***Certain Confidential Information Omitted

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(b)              
Royalty Reports. After the first commercial sale of a Licensed Product anywhere in the world, LICENSEE shall submit
to UNIVERSITY annual royalty reports on or before February 28 of each year. Each royalty report shall cover LICENSEE’s (and
each Affiliate’s and Sublicensee’s) most recently completed calendar year and shall show:

 

(i)               the
date of first commercial sale of a Licensed Product in each country;

 

(ii)              the
gross sales, deductions as provided in Paragraph 1.7 (Net Sales), and Net Sales during the most recently completed calendar year
and the royalties, in US dollars, payable with respect thereto;

 

(iii)            
the number of each type of Licensed Product sold;

 

(iv)            
Sublicense fees and royalties received during the most recently completed calendar year in US dollars, payable with respect
thereto;

 

(v)              any sales made in nations recognized as WTO Least-Developed Countries, as evidenced by that nation’s listing on the
WTO website at the end of that calendar year, and the Discounted Royalty Rate for Developing Nations, in US Dollars, payable with
respect thereto;

 

(vi)             the
method used to calculate the royalties; and

 

(vii)          
the exchange rates used.

 

If no sales of Licensed Products have been made and no Sublicense
revenue has been received by LICENSEE during any reporting period, LICENSEE shall so report. The reports referred to in this Section
4.1(b) should be marked with the following title and case number: “License Agreement between UC SAN DIEGO and UC SAN DIEGO
and Leading Biosciences, Inc., for case [...***...].” Reports shall be submitted as attachment to UC SAN DIEGO’s
email address: [...***...].

 

(c)              
Timely Reports. LICENSEE acknowledges the important value that timely reporting provides in the UNIVERSITY’s
effective management of its rights under this Agreement. LICENSEE further acknowledges that failure to render the reports required
under this Section 4.1 may harm UNIVERSITY’s ability to manage its rights under this Agreement. As such, reports not submitted
by the required due date under this Section 4.1 will cause to be due by LICENSEE to UNIVERSITY a late reporting fee of [...***...]
per month until such report, compliant with the requirements of this Section 4.1, is received by UNIVERSITY. Payment of this fee
is subject to Section 4.3, Section 7.1 and Paragraph 10.1 herein.

 

4.2         Records & Audits.

 

(a)              
LICENSEE shall keep, and shall require its Affiliates and Sublicensees to keep, accurate and correct records of all Licensed
Products manufactured, used, and sold, and Sublicense fees received under this Agreement. Such records shall be retained by LICENSEE
for at least [...***...] years following a given reporting period.

 

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(b)              
All records shall be available during normal business hours for inspection at the expense of UNIVERSITY by UNIVERSITY’s
Internal Audit Department or by a Certified Public Accountant selected by UNIVERSITY and in compliance with the other terms of
this Agreement for the sole purpose of verifying reports and payments or other compliance issues. Such inspector shall not disclose
to UNIVERSITY any information other than information relating to the accuracy of reports and payments made under this Agreement
or other compliance issues. In the event that any such inspection shows an under reporting and underpayment in excess of [...***...]
for any [...***...] period, then LICENSEE shall pay the cost of the audit as well as any additional sum that would have
been payable to UNIVERSITY had the LICENSEE reported correctly, plus an interest charge at a rate of [...***...] per
year. Such interest shall be calculated from the date the correct payment was due to UNIVERSITY up to the date when such payment
is actually made by LICENSEE. For underpayment not in excess of [...***...] for any [...***...] period, LICENSEE
shall pay the difference within [...***...] without interest charge or inspection cost.

 

4.3          Payments.

 

(a)              
All fees, reimbursements and royalties due UNIVERSITY shall be paid in United States dollars and all checks (should payment
by wire not be possible) shall be made payable to “The Regents of the University of California”, referencing UNIVERSITY’s
taxpayer identification number, [...***...], and sent to UNIVERSITY according to Paragraph 10.1 (Correspondence). When
Licensed Products are sold in currencies other than United States dollars, LICENSEE shall first determine the earned royalty in
the currency of the country in which Licensed Products were sold and then convert the amount into equivalent United States funds,
using the exchange rate quoted in the Wall Street Journal on the last business day of the applicable reporting period.

 

(b)           Royalty
Payments.

 

(i)               Royalties shall accrue when Licensed Products are invoiced, or if not invoiced, when delivered to a third party or Affiliate.

 

(ii)             
LICENSEE shall pay earned royalties annually on or before February 28 of each calendar year. Each such payment shall be
for Earned Royalties and fees accrued within LICENSEE’s most recently completed calendar year.

 

(iii)            
Royalties earned on sales occurring or under Sublicense granted pursuant to this Agreement in any country outside the United
States shall [...***...].

 

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(iv)            
If at any time legal restrictions prevent the prompt remittance of part or all royalties by LICENSEE with respect to any
country where a Licensed Product is sold or a Sublicense is granted pursuant to this Agreement, LICENSEE shall convert the amount
owed to UNIVERSITY into US currency and shall pay UNIVERSITY directly from its US sources of funds for as long as the legal restrictions
apply.

 

(v)              In the event that any patent or patent claim within Patent Rights is held invalid in a final decision by a patent office
from which no appeal or additional patent prosecution has been or can be taken, or by a court of competent jurisdiction and last
resort and from which no appeal has or can be taken, all obligation to pay royalties based solely on that patent or claim or any
claim patentably indistinct therefrom shall cease as of the date of such final decision. LICENSEE shall not, however, be relieved
from paying any royalties that accrued before the date of such final decision, that are based on another patent or claim not involved
in such final decision.

 

(vi)             Royalty payments under Article 3, recoveries and settlements under Article 5, and royalty reports under 4.1(b) shall be
rendered for any and all Licensed Products even if due after expiration of the Agreement. If no Patent Rights existed in the Territory
at the time of any making, use, sale, offer for sale, or import, then no royalty payments or royalty reports shall be due.

 

(c)               Late Payments. In the event royalty, reimbursement and/or fee payments are not received by UNIVERSITY when due, LICENSEE
shall pay to UNIVERSITY interest charges at a rate of [...***...] per year. Such interest shall be calculated from the
date payment was due until actually received by UNIVERSITY.

 

Article
5.    Patent Matters

 

5.1         Patent
Prosecution and Maintenance.

 

(a)               Provided that LICENSEE has reimbursed UNIVERSITY for Patent Costs pursuant to Paragraph 3.2, UNIVERSITY shall diligently
prosecute and maintain the United States and, if available, foreign patents, and applications in Patent Rights using counsel of
its choice. For purposes of clarity, if LICENSEE is not current in reimbursing UNIVERSITY for such patent prosecution costs, UNIVERSITY
shall have no obligation to incur any new Patent Costs under this Agreement or to further prosecute Patent Rights or file any new
patents under Patent Rights. UNIVERSITY shall keep LICENSEE reasonably informed of the prosecution of Patent rights, will provide
LICENSEE with copies of all relevant documentation relating to such prosecution and give LICENSEE time to review and comment (and
LICENSEE shall keep this documentation confidential). The counsel shall take instructions only from UNIVERSITY, and all patents
and patent applications in Patent Rights shall be assigned solely to UNIVERSITY. UNIVERSITY will take into consideration, however,
any comments from LICENSEE bearing on the protection of Licensed Products or Licensed Methods. UNIVERSITY shall in any event control
all patent filings and all patent prosecution decisions and related filings (e.g. responses to office actions) shall be at UNIVERSITY’s
final discretion (prosecution includes, but is not limited to, interferences, oppositions and any other inter partes matters
originating in a patent office).

 

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(b)              
UNIVERSITY shall consider amending any patent application in Patent Rights to include claims reasonably requested by LICENSEE
to protect the products contemplated to be sold by LICENSEE under this Agreement.

 

(c)              
LICENSEE may elect to terminate its reimbursement obligations with respect to any patent application or patent in Patent
Rights upon [...***...] written notice to UNIVERSITY. UNIVERSITY shall use reasonable efforts to curtail further Patent
Costs for such application or patent when such notice of termination is received from LICENSEE. UNIVERSITY, in its sole discretion
and at its sole expense, may continue prosecution and maintenance of said application or patent, and LICENSEE shall have no further
license with respect thereto. Non-payment of any portion of Patent Costs with respect to any application or patent may be deemed
by UNIVERSITY as an election by LICENSEE to terminate its reimbursement obligations with respect to such application or patent.
UNIVERSITY is not obligated at any time to file, prosecute, or maintain Patent Rights in a country, where, for that country’s
patent application LICENSEE is not paying Patent Costs, or to file, prosecute, or maintain Patent Rights to which LICENSEE has
terminated its license hereunder.

 

5.2         Patent Infringement.

 

(a)              
In the event that UNIVERSITY (to the extent of the actual knowledge of the licensing professional responsible for the administration
of this Invention) or LICENSEE learns of infringement of potential commercial significance of any patent licensed under this Agreement,
the knowledgeable party will provide the other (i) with written notice of such infringement and (ii) with any evidence of such
infringement available to it (the “Infringement Notice”). During the period in which, and in the jurisdiction where,
LICENSEE has exclusive rights under this Agreement, neither UNIVERSITY nor LICENSEE will notify a third party (including the infringer)
of infringement or put such third party on notice of the existence of any Patent Rights without first obtaining consent of the
other. If LICENSEE notifies a third party of infringement or puts such third party on notice of the existence of any Patent Rights
with respect to such infringement without first obtaining the written consent of UNIVERSITY and UNIVERSITY is sued in declaratory
judgment, UNIVERSITY shall have the right to terminate this Agreement immediately without the obligation to provide [...***...]
notice as set forth in Paragraph 7.1. Both UNIVERSITY and LICENSEE will use their diligent efforts to cooperate with each other
to terminate such infringement without litigation.

 

(b)              
If infringing activity of potential commercial significance by the infringer has not been abated within [...***...]
following the date the Infringement Notice takes effect LICENSEE may institute suit for patent infringement against the infringer.
UNIVERSITY may voluntarily join such suit at its own expense, but may not thereafter commence suit against the infringer for the
acts of infringement that are the subject of LICENSEE’s suit or any judgment rendered in that suit. LICENSEE may not join
UNIVERSITY in a suit initiated by LICENSEE without UNIVERSITY’S prior written consent. If, in a suit initiated by LICENSEE,
UNIVERSITY is involuntarily joined other than by LICENSEE, LICENSEE will pay any costs incurred by UNIVERSITY arising out of such
suit, including but not limited to, any legal fees of counsel that UNIVERSITY selects and retains to represent it in the suit.

 

***Certain Confidential Information Omitted

    	Page 15 of 25

     

    

(c)              
If, within a [...***...] following the date the Infringement Notice takes effect, infringing activity of potential
commercial significance by the infringer has not been abated and if LICENSEE has not brought suit against the infringer, UNIVERSITY
may institute suit for patent infringement against the infringer. If UNIVERSITY institutes such suit, LICENSEE may not join such
suit without UNIVERSITY’S consent and may not thereafter commence suit against the infringer for the acts of infringement
that are the subject of UNIVERSITY’S suit or any judgment rendered in that suit.

 

(d)              
Notwithstanding anything to the contrary in this Agreement, in the event that the infringement or potential infringement
pertains to an issued patent included within the Patent Rights and written notice is given under any statute expediting litigation
(e.g. the Drug Price Competition and Patent Term Restoration Act of 1984 and/or foreign counterparts of this Law) (“Act”),
then the party in receipt of such notice under the Act (in the case of UNIVERSITY to the extent of the actual knowledge of the
licensing officer responsible for the administration of this Agreement) shall provide the Infringement Notice to the other party
promptly. If the time period is such that the LICENSEE will lose the right to pursue legal remedy for infringement by not notifying
a third party or by not filing suit, the notification period and the time period to file suit will be accelerated to within [...***...]
of the date of such notice under the Act to either party.

 

(e)              
Any recovery or settlement received in connection with any suit will first be shared by UNIVERSITY and LICENSEE equally
to cover the litigation costs each incurred, and next shall be paid to UNIVERSITY or LICENSEE to cover any litigation costs it
incurred in excess of the litigation costs of the other. In any suit initiated by LICENSEE, any recovery in excess of litigation
costs will be shared between LICENSEE and UNIVERSITY as follows: (i) for any recovery other than amounts paid for willful infringement:
(A) UNIVERSITY will receive [...***...] of the recovery if UNIVERSITY was not a party in the litigation and did not incur
any litigation costs; (B) UNIVERSITY will receive [...***...] of the recovery if UNIVERSITY was a party in the litigation,
but did not incur any litigation costs, including the provisions of Paragraph 5.2(b) above, or (C) UNIVERSITY will receive [...***...]
of the recovery if UNIVERSITY incurred any litigation costs in connection with the litigation; and (ii) for any recovery for willful
infringement, UNIVERSITY will receive [...***...] of the recovery. In any suit initiated by UNIVERSITY, any recovery
in excess of litigation costs will [...***...]. UNIVERSITY and LICENSEE agree to be bound by all determinations of patent
infringement, validity, and enforceability (but no other issue) resolved by any adjudicated judgment in a suit brought in compliance
with this Section 5.2.

 

(f)                Any
agreement made by LICENSEE for purposes of settling litigation or other dispute shall comply with the requirements of Section
2.2 (Sublicenses) of this Agreement.

 

(g)               Each
party will cooperate with the other in litigation proceedings instituted hereunder but at the expense of the party who initiated
the suit (unless such suit is being jointly prosecuted by the parties).

 

(h)               Any
litigation proceedings will be controlled by the party bringing the suit, except that UNIVERSITY may be represented by counsel
of its choice in any suit brought by LICENSEE.

 

***Certain Confidential Information Omitted

    	Page 16 of 25

     

    

 

5.3         Patent Marking. LICENSEE shall mark all Licensed Products made, used or sold under the terms of this Agreement, or
their containers, in accordance with the applicable patent marking laws. LICENSEE shall be responsible for all monetary and legal
liabilities arising from or caused by (i) failure to abide by applicable patent marking laws and (ii) any type of incorrect or
improper patent marking.

 

Article
6.    Governmental Matters

 

6.1         Governmental
Approval or Registration. If this Agreement or any associated transaction is required by the law of any nation to be either
approved or registered with any governmental agency, LICENSEE shall assume all legal obligations to do so. LICENSEE shall notify
UNIVERSITY if it becomes aware that this Agreement is subject to a United States or foreign government reporting or approval requirement.
LICENSEE shall make all necessary filings and [...***...].

 

6.2         Export Control Laws. LICENSEE shall observe all applicable United States and foreign laws with respect to the transfer
of Licensed Products and related technical data to foreign countries, including, without limitation, the International Traffic
in Arms Regulations and the Export Administration Regulations.

 

Article
7.    Termination or Expiration
of the Agreement

 

7.1          Termination by UNIVERSITY.

 

(a)              
If LICENSEE fails to perform or violates any term of this Agreement, then UNIVERSITY may give written notice of default
(“Notice of Default”) to LICENSEE. If LICENSEE fails to cure the default within sixty (60) days of the Notice of Default,
UNIVERSITY may terminate this Agreement and the license granted herein by a second written notice (“Notice of Termination”)
to LICENSEE. If a Notice of Termination is sent to LICENSEE, this Agreement shall automatically terminate on the effective date
of that notice. Termination shall not relieve LICENSEE of its obligation to pay any fees owed at the time of termination and shall
not impair any accrued right of UNIVERSITY. During the term of any such Notice of Default or period to cure, to the extent the
default at issue is a failure to pay past or ongoing Patent Costs as provided for under this Agreement, UNIVERSITY shall have no
obligation to incur any new Patent Costs under this Agreement and shall have no obligation to further prosecute Patent Rights or
file any new patents under Patent Rights.

 

(b)               This
Agreement will terminate immediately, without the obligation to provide sixty (60) days’ notice as set forth in Paragraph
7.1(a), if LICENSEE files a claim including in any way the assertion that any portion of UNIVERSITY’s Patent Rights is invalid
or unenforceable where the filing is by the LICENSEE, a third party on behalf of the LICENSEE, or a third party at the written
urging of the LICENSEE.

 

***Certain Confidential Information Omitted

    	Page 17 of 25

     

    

 

c)       This
Agreement shall automatically terminate without the obligation to provide sixty (60) days’ notice as set forth in Paragraph
7.1(a) if LICENSEE becomes insolvent or files for bankruptcy that includes asset liquidation.

 

7.2         Termination
by LICENSEE.

 

(a)              
LICENSEE shall have the right at any time and for any reason to terminate this Agreement upon a ninety (90) day written
notice to UNIVERSITY. Said notice shall state LICENSEE’s reason for terminating this Agreement.

 

(b)              
Any termination under Paragraph 7.2(a) shall not relieve LICENSEE of any obligation or liability accrued under this Agreement
prior to termination or rescind any payment made to UNIVERSITY or action by LICENSEE prior to the time termination becomes effective.
Termination shall not affect in any manner any rights of UNIVERSITY arising under this Agreement prior to termination.

 

7.3         Survival
on Termination or Expiration. The following Paragraphs and Articles shall survive the termination or expiration of this Agreement:

 

(a)              
Article 4 (REPORTS, RECORDS AND PAYMENTS);

 

(b)              
Paragraph 7.4 (Disposition of Licensed Products on Hand);

 

(c)              
Article 8 (LIMITED WARRANTY AND INDEMNIFICATION);

 

(d)              
Article 9 (USE OF NAMES AND TRADEMARKS);

 

(e)              
Paragraph 10.2 hereof (Secrecy);

 

(f)               
Paragraph 10.5 (Failure to Perform); and

 

(g)              
Paragraph 10.6 (Governing Laws).

 

7.4         Disposition
of Licensed Products on Hand. Upon termination of this Agreement, LICENSEE may dispose of all previously made or partially
made Licensed Product within a period of one hundred and twenty (120) days of the effective date of such termination provided
that the sale of such Licensed Product by LICENSEE, its Sublicensees, or Affiliates shall be subject to the terms of this Agreement,
including but not limited to the rendering of reports and payment of royalties required under this Agreement.

 

Article
8.    Limited Warranty and Indemnification

 

8.1         Limited Warranty.

 

(a)              
deleted.

 

    	Page 18 of 25

     

    

 

(b)               The
license granted herein is provided “AS IS” and without WARRANTY OF MERCHANTABILITY or WARRANTY OF FITNESS FOR A PARTICULAR
PURPOSE or any other warranty, express or implied. UNIVERSITY makes no representation or warranty that the Licensed Product, Licensed
Method or the use of Patent Rights will not infringe any other patent or other proprietary rights.

 

(c)              
UNIVERSITY WILL NOT BE LIABLE FOR ANY LOST PROFITS, COSTS OF PROCURING SUBSTITUTE GOODS OR SERVICES, LOST BUSINESS, ENHANCED
DAMAGES FOR INTELLECTUAL PROPERTY INFRINGEMENT, OR FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, OR OTHER SPECIAL DAMAGES
SUFFERED BY LICENSEE, SUBLICENSEES, JOINT VENTURES, OR AFFILIATES ARISING OUT OF OR RELATED TO THIS AGREEMENT FOR ALL CAUSES OF
ACTION OF ANY KIND (INCLUDING TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY AND BREACH OF WARRANTY) EVEN IF UNIVERSITY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. ALSO, UNIVERSITY WILL NOT BE LIABLE FOR ANY DIRECT DAMAGES SUFFERED BY LICENSEE, SUBLICENSEES,
JOINT VENTURES, OR AFFILIATES ARISING OUT OF OR RELATED TO PATENT RIGHTS TO THE EXTENT ASSIGNED, OR OTHERWISE LICENSED, BY UNIVERSITY’S
INVENTORS TO THIRD PARTIES.

 

(d)              
Nothing in this Agreement shall be construed as:

 

(i)               a warranty or representation by UNIVERSITY as to the validity or scope of any Patent Rights;

 

(ii)              a
warranty or representation that anything made, used, sold or otherwise disposed of under any license granted in this Agreement
is or shall be free from infringement of patents of third parties;

 

(iii)            
an obligation to bring or prosecute actions or suits against third parties for patent infringement except as provided in
Section 5.2 hereof;

 

(iv)            conferring
by implication, estoppel or otherwise any license or rights under any patents of UNIVERSITY other than Patent Rights as defined
in this Agreement, regardless of whether those patents are dominant or subordinate to Patent Rights; or

 

(v)              an obligation to furnish any know-how not provided in Patent Rights.

 

8.2          Indemnification.

 

(a)              
LICENSEE will, and will require Sublicensees to, indemnify, hold harmless, and defend UNIVERSITY and its officers, employees,
and agents; the sponsors of the research that led to the Invention; and the inventors of patents or patent applications under Patent
Rights, and their employers; against any and all claims, suits, losses, damages, costs, fees, and expenses resulting from, or arising
out of, the exercise of this license or any Sublicense. This indemnification will include, but will not be limited to, any product
liability.

 

 

    	Page 19 of 25

     

    

(b)              
LICENSEE, at its sole cost and expense, shall insure its activities in connection with the work under this Agreement and
obtain, keep in force and maintain insurance or an equivalent program of self insurance as follows:

 

(i)               comprehensive
or commercial general liability insurance (contractual liability included) with limits of at least: (A) each occurrence, [...***...];
(B) products/completed operations aggregate, [...***...]; (C) personal and advertising injury, [...***...];
and (D) general aggregate [...***...]. If the above insurance is written on a claims-made form, it shall continue for
[...***...] following termination or expiration of this Agreement. The insurance shall have a retroactive date of placement
prior to or coinciding with the Effective Date;

 

(ii)              Worker’s
Compensation as legally required in the jurisdiction in which the LICENSEE is doing business; and

 

(iii)            
the coverage and limits referred to above shall not in any way limit the liability of LICENSEE.

 

(c)              
LICENSEE shall furnish UNIVERSITY with certificates of insurance showing compliance with all requirements. Such certificates
shall: (i) provide for [...***...] advance written notice to UNIVERSITY of any modification; (ii) indicate that UNIVERSITY
has been endorsed as an additionally insured party under the coverage referred to above; and (iii) include a provision that the
coverage shall be primary and shall not participate with nor shall be excess over any valid and collectable insurance or program
of self-insurance carried or maintained by UNIVERSITY.

 

(d)              
UNIVERSITY shall notify LICENSEE in writing of any claim or suit brought against UNIVERSITY in respect of which UNIVERSITY
intends to invoke the provisions of this Article. LICENSEE shall keep UNIVERSITY informed on a current basis of its defense of
any claims under this Article. LICENSEE will not settle any claim against UNIVERSITY without UNIVERSITY’s written consent,
where (a) such settlement would include any admission of liability or admission of wrong doing on the part of the indemnified party,
(b) such settlement would impose any restriction on UNIVERSITY/indemnified party’s conduct of any of its activities, or (c)
such settlement would not include an unconditional release of UNIVERSITY/indemnified party from all liability for claims that are
the subject matter of the settled claim.

 

Article
9.    Use of Names and Trademarks

 

9.1          Except as provided in 9.3, nothing contained in this Agreement confers any right to use in advertising, publicity, or other
promotional activities any name, trade name, trademark, or other designation of either party hereto (including contraction, abbreviation
or simulation of any of the foregoing). Unless required by law, the use by LICENSEE of the name, “The Regents of the University
of California” or the name of any campus of the University of California in advertising, publicity, or other promotional
activities is prohibited, without the express written consent of UNIVERSITY.

 

***Certain Confidential Information Omitted

    	Page 20 of 25

     

    

 

9.2          UNIVERSITY
may disclose to the Inventors the terms and conditions of this Agreement upon their request. If such disclosure is made, UNIVERSITY
shall request the Inventors not disclose such terms and conditions to others.

 

9.3          UNIVERSITY
may acknowledge the existence of this Agreement and the extent of the grant in Article 2 to third parties, but UNIVERSITY shall
not disclose the financial terms of this Agreement to third parties, except where UNIVERSITY is required by law to do so, such
as under the California Public Records Act. LICENSEE hereby grants permission for UNIVERSITY (including UC SAN DIEGO) to include
LICENSEE’s name and a link to LICENSEE’s website in UNIVERSITY’s and UC SAN DIEGO’s annual reports and
on UNIVERSITY’s (including UC SAN DIEGO’s) websites that showcase technology transfer-related stories.

 

9.4          LICENSEE
may not use the name of the University of California, UC SAN DIEGO, or of any UC SAN DIEGO employee, in a manner that reasonably
could constitute an endorsement of a commercial product or service. LICENSEE may use such names for other purposes, even if commercially
motivated, provided that (1) the use is limited to accurately reporting factual events or occurrences, and (2) any reference to
the name of the University of California, UC SAN DIEGO or any UC SAN DIEGO employees, in press releases or similar materials intended
for public release is approved by UC SAN DIEGO in advance.

 

Article
10.   
Miscellaneous Provisions

 

10.1       Correspondence. Any notice or payment required to be given to either party under this Agreement shall be deemed to
have been properly given and effective:

 

(a)              
on the date of delivery if delivered in person;

 

(b)              
five (5) days after mailing if mailed by first-class or certified mail, postage paid, to the respective addresses given
below, or to such other address as is designated by written notice given to the other party; or

 

(c)              
upon confirmation by recognized national overnight courier, or confirmed electronic mail, to the following addresses of
the parties.

 

If sent to LICENSEE:

 

Leading BioSciences, Inc.

[...***...]

 

 

 

***Certain Confidential Information Omitted

    	Page 21 of 25

     

    

 

If sent to UNIVERSITY by mail:

University of California San Diego

Office of Innovation and Commercialization

[...***...]

 

If sent to UNIVERSITY by overnight delivery:

University of California San Diego

Office of Innovation and Commercialization

[...***...]

 

10.2        Secrecy.

 

(a)              
“Confidential Information” shall mean information, relating to the Invention and disclosed by UNIVERSITY to
LICENSEE during the term of this Agreement, which if disclosed in writing shall be marked “Confidential”, or if first
disclosed otherwise, shall within [...***...] of such disclosure be reduced to writing by UNIVERSITY and sent to LICENSEE:

 

(b)              
LICENSEE shall:

 

(i)               use the Confidential Information for the sole purpose of performing under the terms of this Agreement;

 

(ii)             
safeguard Confidential Information against disclosure to others with the same degree of care as it exercises with its own
data of a similar nature;

 

(iii)           
not disclose Confidential Information to others (except to its employees, agents or consultants who are bound to LICENSEE
by a like obligation of confidentiality) without the express written permission of UNIVERSITY, except that LICENSEE shall not be
prevented from using or disclosing any of the Confidential Information that:

 

		(A)	LICENSEE can demonstrate by written records was previously known to it;

 

		(B)	is now, or becomes in the future, public knowledge other than through acts or omissions of LICENSEE;

 

		(C)	is lawfully obtained by LICENSEE from sources independent of UNIVERSITY; or

 

 

***Certain Confidential Information Omitted

    	Page 22 of 25

     

    

		(D)	is required to be disclosed by law or a court of competent jurisdiction; and

 

(c)               The secrecy obligations of LICENSEE with respect to Confidential Information shall continue for a period ending [...***...]
from the termination date of this Agreement.

 

10.3        Assignability.
This Agreement may be assigned by UNIVERSITY, but is personal to LICENSEE and assignable by LICENSEE only with the written consent
of UNIVERSITY; provided, however, that LICENSEE may assign this Agreement and its rights and the license granted herein without
UNIVERSITY’S prior written consent in conjunction with the sale or transfer of all, or substantially all of LICENSEE’s
business or assets relating to this Agreement, whether by sale of stock, sale of assets, merger, or otherwise, [...***...].

 

10.4        No Waiver. No waiver by either party of any breach or default of any covenant or agreement set forth in this Agreement
shall be deemed a waiver as to any subsequent and/or similar breach or default.

 

10.5        Failure
to Perform. In the event of a failure of performance due under this Agreement and if it becomes necessary for either party
to undertake legal action against the other on account thereof, then the prevailing party shall be entitled to reasonable attorneys’
fees in addition to costs and necessary disbursements.

 

10.6        Governing
Laws. THIS AGREEMENT SHALL BE INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, but the scope
and validity of any patent or patent application shall be governed by the applicable laws of the country of the patent or patent
application.

 

10.7        Force Majeure. A party to this Agreement may be excused from any performance required herein if such performance
is rendered impossible or unfeasible due to any catastrophe or other major event beyond its reasonable control, including, without
limitation, earthquake, wildfire, war, riot, and insurrection; laws, proclamations, edicts, ordinances, or regulations; strikes,
lockouts, or other serious labor disputes; and floods, fires, explosions, or other natural disasters. When such events have abated,
the non-performing party’s obligations herein shall resume.

 

10.8        Headings. The headings of the several sections are inserted for convenience of reference only and are not intended
to be a part of or to affect the meaning or interpretation of this Agreement.

 

10.9        Entire
Agreement. This Agreement embodies the entire understanding of the parties and supersedes all previous communications, representations
or understandings, either oral or written, between the parties relating to the subject matter hereof.

 

10.10      Amendments. No amendment or modification of this Agreement shall be valid or binding on the parties unless made in
writing and signed on behalf of each party.

 

 

 

***Certain Confidential Information Omitted

    	Page 23 of 25

     

    

10.11     Severability.
In the event that any of the provisions contained in this Agreement is held to be invalid, illegal, or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, and this Agreement shall
be construed as if the invalid, illegal, or unenforceable provisions had never been contained in it.

 

10.12     Counterparts.
The parties agree that this Agreement may be executed by electronic copies and in two (2) or more counterparts, each of which
shall be deemed an original and all of which together shall constitute but one and the same instrument. The parties to this document
agree that a copy of the original signature (including an electronic copy) may be used for any and all purposes for which the
original signature may have been used. The parties further waive any right to challenge the admissibility or authenticity of this
document in a court of law based solely on the absence of an original signature.

 

IN WITNESS WHEREOF, both UNIVERSITY and LICENSEE have executed
this Agreement, in duplicate originals, by their respective and duly authorized officers on the day and year written.

 

	LEADING BIOSCIENCES, INC	THE REGENTS OF THE

UNIVERSITY OF CALIFORNIA:
	
        By: /s/ JD Finley                                       

        (Signature)

         

        JD Finley

        Chief Financial Officer

         

        Date: 4/1/2020                                           
	
        By: /s/ Donna Shaw                                      

        (Signature)

         

        Donna Shaw, CLP, Ph.D.

        Associate Director-Office of Innovation and Commercialization

         

        Date: 4/1/2020                                                

         

 

 

 

 

    	Page 24 of 25

     

    

 

Exhibit A – Due Diligence Obligations

 

LICENSEE shall complete the tasks or milestones set forth in
the following schedule in relation to the Effective Date (ED):

 

	#	Description of activity for Licensed Product	Months from ED / Event
	A	Validate the Licensed Products and Licensed Methods. meaning demonstration of their efficacy using samples of human bodily fluids. Analyze clinical samples and microbial samples.	Within [...***...]
	B	First enrollment of first patient in a clinical study relating to a Licensed Product.	Within [...***...]
	C	Submission to Food & Drug Administration (or similar competent agency) an application seeking approval for marketing of a Licensed Product	Within [...***...]
	D	Food & Drug Administration (or similar competent agency) approval for marketing of a Licensed Product	Within [...***...] of #C
	E	First commercial sale of Licensed Products for use in the Field	No later than [...***...] of # D
	F	First commercial sale of Licensed Products for use in samples from animals, within the Field	No later than [...***...] of # D
	G	Achieve annual Net Sales of at least [...***...]	[...***...] after receiving regulatory approval from FDA for a Licensed Product for commercial use.
	H	Achieve annual Net Sales of at least [...***...]	[...***...] after receiving regulatory approval from FDA for a Licensed Product for a commercial use.

 

 

 

 

***Certain Confidential Information Omitted

Page 25 of 25Exhibit 10.20

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [...***...], HAS BEEN OMITTED BECAUSE IT IS BOTH (I)
NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

EXECUTION VERSION

 

CO-DEVELOPMENT AND DISTRIBUTION AGREEMENT

 

This Co-Development
and Distribution Agreement (this “Agreement”) is made and entered into as of the 27th day of February, 2018
(the “Effective Date”) by and between Leading BioSciences, Inc., a corporation organized under the laws of Delaware
having its office at 5800 Armada Drive, Ste. 210, Carlsbad, CA 92008 (“LBS”), and Biolead Medical Technology
Limited, a limited company organized under the laws of the Hong Kong. LBS and Newsoara (defined below) are sometimes referred to
herein individually as a “Party” and collectively as the “Parties”.

 

WHEREAS, LBS Controls
(as defined below) certain Patent (as defined below) rights and Know-How (as defined below) relating to, and is the manufacturer
of, the Product (as defined below);

 

WHEREAS, LBS desires
to grant to Newsoara (as defined below) certain rights to co-develop and Commercialize (as defined below) the Product in the Territory
(as defined below);

 

WHEREAS, Biolead Medical
Technology Limited is in the process of establishing a foreign invested joint venture (“FIJV”) in the People’s
Republic of China (“China”), which will upon due formation, organization and receipt of necessary government
approvals be assigned the rights granted by LBS to Newsoara hereunder and which will assume all obligations and liabilities under
this Agreement;

 

WHEREAS, the Parties
anticipate that by entering into this Agreement and carrying out their respective obligations, each will make a reasonable commercial
return;

 

NOW, THEREFORE, in
consideration of the mutual covenants hereinafter expressed and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties agree as follows:

 

		1.	DEFINITIONS

 

The terms defined in
this Article 1 and throughout the Agreement, whether used in the singular or plural, shall have the meanings set forth herein.

 

1.1             
“Additional Indication” shall mean any indication other than the Initial Indication.

 

1.2             
“Affiliate” shall mean, with respect to a particular Person, any other Person that directly or indirectly
is controlled by, controls or is under common control with such Person. For the purposes of this definition only, the term “control”
(including, with correlative meanings, the terms “controlled by” and “under common control with”), as used
with respect to a particular Person that is an entity, means (a) if such Person is a corporate entity, direct or indirect ownership
of voting securities entitled to cast at least fifty percent (50%) of the votes in the election of directors of such Person, (b)
if such Person is a non-corporate entity, direct or indirect ownership of at least fifty percent (50%) of the equity interests
of such Person or (c) the power to direct the management and policies of such Person. [...***...].

 

1.3              “Applicable
Laws and Guidelines” shall mean all applicable provisions of constitutions, statutes, laws, rules, treaties,
regulations, orders, decrees and guidelines of all applicable governmental authorities or agencies in a territory,
jurisdiction or region, including without limitation (a) all applicable national, federal, provincial, state and local laws,
regulations and guidelines of the Territory and (b) all regulations or guidelines of any applicable Regulatory Authority,
including GLP, GCP and GMPs.

 

***Certain
Confidential Information Omitted

    	1 

     

    

 

1.4             
“Auditor” shall have the meaning set forth in Section 5.7(b).

 

1.5             
“Calendar Quarter” shall mean any consecutive three (3)-month period beginning on January 1, April 1,
July 1 or October 1.

 

1.6             
“CFDA” shall mean the China Food and Drug Administration or any successor entity thereto.

 

1.7              “Change
of Control” shall mean (i) the acquisition, directly or indirectly, by any person, entity or “group” (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended) by means of a transaction or series
of related transactions, of (a) beneficial ownership of fifty percent (50%) or more of the outstanding voting securities of a
Party (or the surviving entity, as applicable, whether by merger, consolidation, reorganization, tender offer or other similar
means), or (b) all, or substantially all, of the assets of a Party and its Affiliates; or (ii) any consolidation or merger of
a Party with or into any Third Party, or any other corporate reorganization involving a Third Party, in which those persons or
entities that are stockholders of the Party immediately prior to such consolidation, merger or reorganization (or prior to any
series of related transactions leading up to such event) own fifty percent (50%) or less of the surviving entity’s voting
power immediately after such consolidation, merger or reorganization.

 

1.8             
“Claims” shall have the meaning set forth in Section 11.1.

 

1.9             
“Clinical Trials” shall mean any human clinical study of a pharmaceutical product.

 

1.10           
“Commercialization” shall mean all activities, whether initiated or conducted prior to or following receipt
of Regulatory Approval and, if necessary, Reimbursement Approval for the Product in any jurisdiction in the Territory, undertaken
relating to the launch or sale of the Product, including (a) distribution, offer for sale, sales, promotion and marketing, medical
affairs, and managed markets, (b) to the extent necessary to sell such Product, regulatory activities, including the filing, obtaining
and maintenance of Regulatory Filings, and the filing and obtaining of Reimbursement Approval for the Product, filing of annual
updates, payment of product and establishment fees, and (c) other similar activities directly relating to the Product anywhere
in the Territory. “Commercialization” shall exclude Development activities, and when used as a verb, “Commercialize”
means to engage in Commercialization activities.

 

1.11           
“Commercialization Costs” shall mean the actual internal and out-of-pocket costs incurred by Newsoara
and its Affiliates in connection with Commercialization activities for the Product.

 

1.12           
“Commercialization Period” shall have the meaning set forth in Section 3.4(a).

 

    	2 

     

    

 

 

1.13           
“Commercialization Plan” shall mean a plan (to be updated as set forth in Section 3.4(b)) that details
the Commercialization activities to be conducted with respect to the Product in the Territory during the Term and the associated
budget, which plan will outline the overall strategic Commercialization objectives and activities (including advertising, education,
planning, promotion, medical affairs and managed markets) for the Product in the Territory, and the related budget for both pre-launch
and post-launch general Commercialization objectives and activities for the Product.

 

1.14           
“Commercially Reasonable Efforts” shall mean, with respect to a Party’s obligations under this
Agreement, the level of efforts required [...***...].

 

1.15           
“Competing Product” means a product that (i) [...***...], (ii) [...***...], which
is the active pharmaceutical ingredient of the Product, or (iii) [...***...].

 

1.16           
“Confidential Information” shall mean, with respect to a Party, all information not known to the general
public or of a confidential nature that is disclosed (in writing, verbally, electronically, or by any other means directly or indirectly)
by such Party to the other Party after the Effective Date, including, without limitation, any information relating to (a) the Development,
Manufacture, testing, Regulatory Approvals for, Customers of, use or Commercialization of the Product, and (b) such Party’s
Inventions, discoveries, data (including pre-clinical and clinical data), improvements, or modifications to the Product and finances,
operations, processes, plans, product information, Know-how, trade secrets, market opportunities, customer and supplier information
and business affairs. In addition to the foregoing, Confidential Information shall include any information disclosed (in writing,
verbally, electronically, or by any other means directly or indirectly) by one Party to the other Party prior to the Effective
Date under any confidentiality and/or non-disclosure agreement entered by the Parties prior to the Effective Date.

 

1.17           
“Control” shall mean possession of the ability to grant a license, sublicense or access as provided for
under this Agreement without (a) violating the terms of any agreement or other arrangement with any Third Party or (b) increasing
at any time the amount of any payments required under any such agreement or arrangement.

 

1.18           “Cover(ed)”
shall mean, with respect to any Patent and the subject matter at issue, that, but for a license granted under a Valid Claim
of such Patent, the Manufacture, use, sale, offer for sale or importation of the subject matter at issue would infringe such
Valid Claim, or, in the case of a Patent that is a patent application, would infringe a Valid Claim in such patent
application if it were to issue as a patent.

 

 

***Certain Confidential Information Omitted

    	3 

     

    

 

1.19           
“Customer” shall mean a potential or actual purchaser of the Product from Newsoara or Newsoara’s
Affiliates or distributors, or LBS or LBS’s Affiliates or distributors, as the case may be.

 

1.20           
“Development” shall mean all non-clinical and clinical drug development activities, each to the extent
reasonably relating to the development of the Product in the Territory. Development shall include toxicology, pharmacology, and
other non-clinical efforts, test method development and stability testing, manufacturing process development with respect to LBS
only, formulation development, delivery system development, quality assurance and quality control development, statistical analysis,
the conduct of Clinical Trials or other activities, including regulatory activities, relating to obtaining Regulatory Approval.
When used as a verb, “Develop” means to engage in Development activities.

 

1.21           
“Development Costs” shall mean the actual internal and out-of-pocket costs incurred by Newsoara and its
Affiliates in connection with Development activities for the Product.

 

1.22           
“Development Plan” shall mean a plan, agreed upon by the Parties in writing, and as amended from time
to time, that details the Development activities for the Territory to be conducted pursuant to this Agreement with respect to the
Product during the Term and the associated budget, which plan will outline the strategic Development objectives and activities
for the Initial Indication and any Additional Indications for the Product in the Territory.

 

1.23           
“Development Milestone(s)” shall have the meaning set forth in Section 5.2(a).

 

1.24           
“Disclosing Party” shall have the meaning set forth in Section 12.1(a).

 

1.25           
“Dispute” shall have the meaning set forth in Section 13.1.

 

1.26           
“FCPA” shall have the meaning set forth in Section 8.3(b).

 

1.27           
“FDA” shall mean the United States Food and Drug Administration or any successor entity thereto.

 

1.28           
“Field” shall mean any and all indications.

 

1.29           
“First Commercial Sale” shall mean the first sale of the Product invoiced to a Third Party Customer in
the Territory after Regulatory Approval of the Product has been granted, or such marketing and sale is otherwise permitted, by
the Regulatory Authority in the Territory. The First Commercial Sale shall be deemed to have occurred upon the date of issuance
of the invoice for such sale to such Third Party Customer.

 

1.30           
“FIJV” shall mean the Foreign Invested Joint Venture being formed by Newsoara to develop and commercialize
the Product within the Territory.

 

    	4 

     

    

1.31           
“GCP” shall mean the standards, practices and procedures related to the conduct of Clinical Trials set
forth by the International Conference on Harmonisation and similar regulatory requirements imposed by any Regulatory Authority
in the Territory and (as applicable) any equivalent or similar standards in other jurisdictions, to the extent that such standards
are applicable in the jurisdiction in which the relevant Clinical Trial is conducted or required to be followed in the jurisdiction
in which Regulatory Approval of a product will be sought.

 

1.32           
“Generic Competitor” shall mean with respect to the Product, a non-proprietary product: (a) with [...***...]
as the Product; (b) that has obtained Regulatory Approval from the applicable Regulatory Authority solely by means of an abbreviated
procedure for establishing equivalence to the Product; and (c) is legally marketed in such country by or under the authority of
an entity other than Newsoara, its Affiliates or sublicensees.

 

1.33           
“GLP” shall mean the standards, practices and procedures related to the conduct of laboratory practices
set forth by the International Conference on Harmonisation and similar regulatory requirements imposed by any Regulatory Authority
in the Territory.

 

1.34           
“GMPs” shall mean the current good manufacturing practices set forth by the International Conference
on Harmonisation and similar requirements imposed by any Regulatory Authority in the Territory that are applicable to the Product.

 

1.35           
“Government or Public Official” shall have the meaning set forth in Section 8.3(b).

 

1.36           
“Gross Sales” shall mean gross amounts invoiced or otherwise billed by Newsoara or any of its Affiliates
or sublicensees for sales or any other commercial disposition of the Product in an arm’s-length transaction.

 

1.37           
“IFRS/IAS” shall mean the International Financial Reporting Standards and International Accounting Standards.

 

1.38           
“IND” shall mean any investigational new drug application, Clinical Trial application, Clinical Trial
exemption or similar or equivalent application or submission (including investigator-initiated applications) for approval to conduct
human Clinical Trials filed with or submitted to a Regulatory Authority in the Territory in conformance with the requirements of
such Regulatory Authority.

 

1.39           
“IND Filing” shall mean, with respect to an IND for a Product, the submission or filing with the CFDA
in writing of a dossier submitted to the CFDA for such IND.

 

1.40           
“Indemnitee” shall have the meaning set forth in Section 11.4.

 

1.41           
“Indemnitor” shall have the meaning set forth in Section 11.4.

 

1.42           
“Initial Deposit” shall have the meaning set forth in Section 5.1.

 

1.43           
“Initial Indication” shall have the meaning set forth in Section 3.2(a).

 

***Certain Confidential Information Omitted

    	5 

     

    

1.44           
“Initial Indication Diligence Milestones” shall have the meaning set forth in Section 3.2(c).

 

1.45           
“Inventions” shall mean any and all Know-How, developments, inventions or discoveries conceived, reduced
to practice, made or developed by or on behalf of a Party or its Affiliates.

 

1.46           
“JSC” shall have the meaning set forth in Section 3.1.

 

1.47           
“Joint Patents” shall have the meaning set forth in Section 10.4(b).

 

1.48           
“Joint Technology” shall have the meaning set forth in Section 10.4(b).

 

1.49          
“Know-How” shall mean all non-public information, results and data of any type whatsoever, in any tangible
or intangible form whatsoever, whether or not patentable, including databases, practices, methods, techniques, specifications,
formulations, formulae, knowledge, skill, experience, data (including pharmacological, medicinal chemistry, biological, chemical,
biochemical, safety, toxicological and clinical study data), analytical and quality control data, stability data, studies and procedures,
and manufacturing process and development information, results and data.

 

1.50           
“LBS Know-How” shall mean all Know-How related to the Development or Commercialization of Product (including
information not Covered by the LBS Patents) and any Inventions, in each case that are Controlled by LBS or its Affiliates as of
the Effective Date or that come to be Controlled by LBS or any of its Affiliates at any time during the Term and are reasonably
necessary or useful to Develop or Commercialize the Product in the Territory. For clarity, LBS Know-How excludes LBS Patents.

 

1.51           
“LBS Patents” shall mean the Patents owned or Controlled by LBS or any of its Affiliates as of the Effective
Date or that come to be Controlled by LBS or any of its Affiliates at any time during the Term and that are related to the Development
or Commercialization of the Product, including but not limited to those Patents set forth on Appendix A. For clarity, LBS
Patents exclude the Joint Patents.

 

1.52           
“LBS Technology” shall mean, collectively, the LBS Patents and the LBS Know-How.

 

1.53           
“Losses” shall have the meaning set forth in Section 11.1.

 

1.54           
“Manufacture” or “Manufactured” means making and having made the Product, including
any and all operations in the acquisition of materials and the production, testing, warehousing, packaging, labeling and, as applicable,
release to the market.

 

1.55           
“Manufacturing Right” shall have the meaning set forth in Section 2.2.

 

1.56           
“Manufacturing Right Notice” shall have the meaning set forth in Section 2.2.

 

    	6 

     

    

1.57           
“NDA” shall mean a new drug application (as more fully defined in 21 C.F.R. 314.5 et seq.) and
all amendments and supplements thereto filed with the CFDA, or the equivalent application filed with any equivalent agency or Regulatory
Authority in the Territory.

 

1.58           
“NDA Submission” shall mean the submission of an NDA to the CFDA (or any equivalent agency or Regulatory
Authority in the Territory) in writing.

 

1.59           
“Net Sales” shall mean Gross Sales less the following, to the extent specifically related to the
Product and actually allowed, incurred or paid by Newsoara or any of its Affiliates or sublicensees: [...***...], all
as determined in accordance with IFRS/IAS, on a basis consistent with Newsoara’s annual audited financial statements. Net
Sales shall be accounted for in accordance with IFRS/IAS. Net Sales shall exclude [...***...] shall be excluded from
the computation of Net Sales, and [...***...]. Net Sales shall not include, and no royalty shall be due on, [...***...].

  

1.60           
“Newsoara” shall mean as the context requires collectively Biolead Medical Technology Limited and the
FIJV.

 

1.61           
“Newsoara Know-How” shall mean all Know-How related to the Development or Commercialization of Product
(including information not Covered by the Newsoara Patents) and any Inventions, in each case that are Controlled by Newsoara or
its Affiliates as of the Effective Date or that come to be Controlled by Newsoara or any of its Affiliates at any time during the
Term. For clarity. Newsoara Know-How excludes Newsoara Patents.

 

1.62           
“Newsoara Patents” shall mean any and all: (a) Patents that are owned or Controlled by Newsoara or its
Affiliates as of the Effective Date that Cover the Product inside or outside the Territory; and (b) other Patents that come to
be Controlled by Newsoara or any of its Affiliates during the Term that Cover the Product inside or outside the Territory.

 

1.63           
“Newsoara Technology” shall mean, collectively, the Newsoara Patents and the Newsoara Know-How.

 

 

***Certain Confidential Information Omitted

    	7 

     

    

 

1.64            “Patent”
shall mean any and all patents and patent applications and (a) any foreign, national, international or regional counterparts thereof,
(b) all divisionals, continuations, continuations in part thereof or any other patent or patent application claiming priority
directly or indirectly to (i) any such specified patents or patent applications or (ii) any patent or patent application from
which such specified patents or patent applications claim direct or indirect priority, and (c) all patents issuing on any of the
foregoing, and any foreign, national, international or regional counterparts thereof, together with all registrations, reissues,
re-examinations, renewals, supplemental protection certificates, or extensions of any of the foregoing, and any foreign, national,
international or regional counterparts thereof.

 

1.65           
“Person” shall mean any individual, firm, corporation, partnership, limited liability company, trust,
business trust, joint venture, Regulatory Authority, association or other entity.

  

1.66           
“Phase II Clinical Trial” shall mean a Clinical Trial that would satisfy the requirements of the equivalent
in the Territory of 21 C.F.R. § 312.21(b).

 

1.67           
“Phase III Trial” shall mean a controlled or uncontrolled human Clinical Trial of a Product that would
satisfy the requirements of the equivalent in the Territory of 21 C.F.R. § 312.21(c).

 

1.68           
“Phase III Trial Initiation” shall mean enrollment of the first patient in a Phase III Trial.

 

1.69           
“Phase III Trial Completion” shall mean, with respect to a particular Product, that a Phase III Trial
has achieved database lock.

 

1.70           
“Product” shall mean pharmaceutical product that contains [...***...], as further described
on Appendix B. For clarity, Product excludes [...***...].

 

1.71           
“Quality Agreement” shall mean an agreement whereby the Parties define their respective responsibilities
in relation to GMPs and quality matters, Specifications, release and the supply of the Product, entered into pursuant to Section
6.1.

 

1.72           
“Receiving Party” shall have the meaning set forth in Section 12.1(a).

 

1.73           
“Regulatory Approval” shall mean any and all approvals, licenses, registrations, or authorizations of
any country, national, federal, supranational, provincial, state or local Regulatory Authority, department, bureau or other government
entity that are necessary for the Manufacture, use, storage, import, transport, marketing, distribution and/or sale of a Product
in the applicable jurisdiction.

 

1.74            “Regulatory Authority” shall mean the FDA and any other governmental regulatory authority or agency involved
in regulating any aspect of the Development, Manufacture, approval, sale, pricing, reimbursement, distribution, packaging, use
or Commercialization of the Product anywhere in the world, including the CFDA, the National Development and Reform Commission of
China, the Ministry of Human Resources and Social Security and their local counterparts.

  

 

***Certain Confidential Information Omitted

    	8 

     

    

 

1.75            “Regulatory Filings” shall mean any and all regulatory applications, filings, approvals, registrations
and associated correspondence submitted to or received from a Regulatory Authority to further the Development or Commercialization
of the Product in the Territory.

 

1.76           
“Reimbursement Approval” shall mean any and all pricing and/or reimbursement approvals, licenses, registrations,
or authorizations of any country, national, federal, supranational, provincial, state or local Regulatory Authority, department,
bureau or other government entity relating to the sale or transfer of a particular Product in the applicable jurisdiction in the
Territory.

 

1.77           
“Sales Milestone” shall have the meaning set forth in Section 5.2(b).

 

1.78           
“Sales Report” shall have the meaning set forth in Section 5.5.

  

1.79           
“Senior Executives” shall have the meaning set forth in Section 13.1.

 

1.80           “Specifications” shall mean the written standards established for the characteristics, quality, and quality-control
testing of the Product, and its constituents, components and packaging. Copies of such Specifications, as amended from time to
time during the Term, shall be maintained by both Parties and shall become a part of the Quality Agreement as if incorporated therein.

 

1.81           
“Supply Agreement” shall have the meaning set forth in Article 4.

 

1.82           
“Technical Transfer Agreement” shall have the meaning set forth in Section 2.2.

 

1.83           
“Term” shall have the meaning set forth in Section 9.1.

 

1.84           
“Territory” shall mean the People’s Republic of China, including the Hong Kong Special Administrative
Region and the Macao Special Administrative Region, but excluding Taiwan, for the purpose of this Agreement.

 

1.85           
“Third Party” shall mean any Person other than Newsoara, LBS, or their respective Affiliates.

 

1.86           
“Transfer Price For Commercial Product” shall have the meaning set forth in Section 4(a).

 

1.87           
“Transfer Price For Investigational Product” shall have the meaning set forth in Section 4(b).

 

1.88           
“Valid Claim” shall mean:

 

    	9 

     

    

(a)               any
claim within an issued and unexpired Patent that (i) is not expired, lapsed or abandoned, (ii) is not dedicated to the public,
disclaimed or admitted to be unenforceable or invalid, and (iii) has not been invalidated, held unenforceable or cancelled by
a court or administrative agency of competent jurisdiction in an order or decision from which no appeal has been or can be taken,
including through opposition, re-examination, reissue, disclaimer or otherwise; and

 

(b)               any
claim within a Patent application that (i) is not abandoned or lapsed; (ii) is not dedicated to the public, disclaimed, or admitted
to be unenforceable or invalid; (iii) has not been invalidated, held unenforceable or cancelled by a court or administrative agency
of competent jurisdiction in an order or decision from which no appeal has been or can be taken, including through opposition,
interference, re-examination, reissue, disclaimer or otherwise and (iv) has been pending for no more than [...***...] from the date of filing of such application as a utility, non-provisional application.

 

1.89           
“Withholding Tax” shall have the meaning set forth in Section 5.8.

 

		2.	APPOINTMENT; EXCLUSIVITY

 

2.1             
Appointment as Exclusive Distributor in Territory. Subject to the terms and conditions of this Agreement, LBS hereby
appoints Newsoara, and Newsoara hereby accepts the appointment, to act as the exclusive distributor to Commercialize the Product
in the Territory during the Term.

 

2.2             
Exclusive Supplier; Manufacturing Rights. Subject to the terms of this Section 2.2, the Parties hereby acknowledge
that initially LBS is the exclusive supplier of all of Newsoara’s requirements for the Product within the Territory. LBS
may use one (1) or more Third Party manufacturers to satisfy any of its obligations to Manufacture, package, release and ship Product
under this Agreement. During the Term, Newsoara may request the right to Manufacture the Product in the Territory subject to the
remainder of this Section 2.2 (the “Manufacturing Right”), by providing written notice to LBS (the “Manufacturing
Right Notice”). Promptly after providing the Manufacturing Right Notice, Newsoara shall demonstrate to LBS’s reasonable
satisfaction that: (a) Newsoara or its Third Party manufacturer is qualified with CFDA to Manufacture pharmaceutical products in
the Territory and (b) Newsoara or its Third Party manufacturer has adequate capacity to Manufacture all desired quantities of Product
for Newsoara’s Development, Commercialization and other exploitation of the Product in the Territory. Upon LBS’s confirmation
of such demonstration by Newsoara, the Parties shall enter into an appropriate technical transfer agreement (the “Technical
Transfer Agreement”). LBS shall not refuse to or delay to confirm such demonstration, or refuse to or delay to grant
the Manufacturing Right to Newsoara without any reasonable technical cause. LBS shall not request Newsoara to pay any payment (including
but not limited to upfront payment, royalty, milestone payment) to LBS, its Affiliates or any Third Party designated by LBS or
its Affiliates in addition to the payments under this Agreement, provided however, that (i) the Parties shall agree in the Technical
Transfer Agreement to a reasonable number of hours of technical assistance to be provided by LBS to Newsoara [...***...]
(estimated in good faith to be sufficient to achieve full technical transfer), beyond which number of hours Newsoara would reimburse
LBS for its customary hourly rate for employees providing additional technical assistance, and (ii) Newsoara shall bear the travel
and lodging expenses of the LBS personnel, including international travel between U.S. and mainland China, and local transportation
and lodging in mainland China, provided that (a) Newsoara requests those LBS personnel to assist the technical transfer at the
facility in mainland China and (b) travel by air should be in economy class (except as otherwise agreed upon in writing by Newsoara)
and the cost estimates for such travel and lodging expenses of the LBS personnel shall require Newsoara’s prior written approval.
Following execution of the Technical Transfer Agreement and transfer of the manufacturing process of Product to Newsoara, the license
grant in

 

***Certain Confidential Information Omitted

    	10 

     

    

Section 10.1 shall extend
to permit Newsoara to Manufacture the Product solely at Newsoara’s facility or other facility qualified in accordance with
this Section 2.2. Newsoara agrees to supply LBS with certain quantities of Product for LBS’s Commercialization outside of
the Territory after the technical transfer from LBS has finished. LBS shall have the right to approve in advance in writing any
Third Party manufacturer to be used by Newsoara, and may require as a condition of Newsoara’s exercise of the rights in this
Section 2.2 that (a) the Third Party manufacturer enter into a direct agreement with LBS concerning such manufacturer’s rights
under the LBS Technology, confidentiality, quality and regulatory matters, and (b) the Third Party manufacturer agree to supply
LBS with certain quantities of Product for LBS’s Commercialization outside of the Territory, but shall not require such Third
Party manufacturer to pay any payment (including but not limited to upfront payment, royalty, milestone payment) to LBS, its Affiliates
or any Third Party designated by LBS or its Affiliates.

 

2.3             
Exclusivity and Territory Restrictions.

 

(a)              During
the Term, unless otherwise agreed in writing by the Parties, Newsoara shall not, and shall ensure that its Affiliates do not:
(i) directly or indirectly, on their own or through any Third Party, develop, seek regulatory approval for, sell, distribute or
otherwise commercialize in the Territory any Competing Product, other than the Product as provided for under this Agreement; or
(ii) directly or indirectly, on their own or through any Third Party sell or distribute the Product outside the Territory or inside
the Territory in circumstances in which Newsoara or its Affiliate knows or reasonably should know such Product will be sold or
distributed outside the Territory. In the event that Newsoara enters into any agreement with any subcontractor (including any
distributor, reseller, manufacturer or wholesaler) in relation to the Product, such agreement shall be in writing, and Newsoara
shall include provisions at least as restrictive as those set forth in clause (ii) of this Section 2.3(a), and LBS shall be made
an express third party beneficiary of any such agreement with respect to such provisions, with a vested right to enforce such
agreements. Newsoara shall not amend or modify such provisions without the prior written consent of LBS. Newsoara shall provide
LBS with a copy of the relevant sections of each such agreement promptly after the execution or any amendment thereof.

 

(b)              During the Term, unless otherwise agreed in writing by the Parties, LBS shall not, and shall ensure that its Affiliates
do not: (i) directly or indirectly, on their own or through any Third Party, develop, seek regulatory approval for, sell, distribute
or otherwise commercialize in the Territory any Competing Product, other than the Product as provided for under this Agreement;
or (ii) directly or indirectly, on their own or through any Third Party sell or distribute the Product inside the Territory or
outside the Territory in circumstances in which LBS or its Affiliate knows or reasonably should know such Product will be sold
or distributed inside the Territory. In the event that LBS enters into any agreement with any subcontractor (including any distributor,
reseller, manufacturer or wholesaler) in relation to the Product, such agreement shall be in writing, and LBS shall include provisions
at least as restrictive as those set forth in clause (ii) of this Section 2.3(b). LBS shall not amend or modify such provisions
without the prior written consent of Newsoara. LBS shall provide Newsoara with a copy of the relevant sections of each such agreement
promptly after the execution or any amendment thereof.

 

    	11 

     

    

2.4              Referral
of Customers inside or outside the Territory. During the Term, any solicitations or requests received from Customers by
Newsoara or its Affiliates to purchase the Product outside the Territory shall be immediately referred by Newsoara to LBS,
and any solicitations or requests received from Customers by LBS or its Affiliates to purchase the Product within the
Territory shall be immediately referred by LBS to Newsoara.

 

2.5             
Use of Affiliates and Third Party. Newsoara may exercise its rights and perform its obligations under this Agreement
by itself or through the engagement of any of its Affiliates or Third Party; provided that Newsoara shall remain responsible for
all of its obligations under this Agreement including those that have been delegated or subcontracted to any of its Affiliates
or such Third Party and all such delegation and subcontracting shall be pursuant to written agreements consistent with the terms
and conditions of this Agreement, and Newsoara shall be fully responsible for any breach of this Agreement by any such Affiliates
and provided that Newsoara notifies JSC of the use of such Third Party.

 

		3.	COLLABORATION OF THE PARTIES

 

3.1              Joint
Steering Committee. Within [...***...] of the Effective Date, the Parties shall establish a joint steering committee
(the “JSC”), consisting of [...***...] representatives of each Party designated in writing. Each
Party shall designate [...***...] to serve as [...***...] of the JSC. Each Party may change its JSC representatives
by written notice to the other Party. The JSC shall oversee Development, Commercialization and Manufacture of the Product in the
Field in the Territory. The JSC shall meet at least [...***...] times [...***...] during the Term, in each
case at times mutually agreed upon by the Parties. The JSC shall operate by unanimous consent of its members. Unless otherwise
set forth in this Agreement, in the event of a dispute regarding any Development activities related to the Product in the Field
in the Territory or the Manufacture of the Product, the position of the members of the JSC [...***...]; in the event
of a dispute regarding Commercialization activities related to the Product in the Field in the Territory, the position of the
members of the JSC [...***...]. The JSC shall not have the power to amend or waive compliance with this Agreement.

 

3.2             
Development of the Initial Indication.

 

(a)              Development
Plan for Initial Indication. The Parties will agree upon an initial Development Plan for the initial indication for the
Product to be developed for the Territory (the “Initial Indication”) within [...***...] of the
Effective Date. The Parties intend for the Development Plan to be primarily directed towards Developing the Product for
achieving Regulatory Approval in the Territory; if, however, Development activities can be conducted in such a manner as to
be useful for achieving Regulatory Approval outside of the Territory without significant additional cost or time or a
detrimental effect on achieving Regulatory Approval in the Territory, the Development Plan will include the conduct of
activities in such a manner. By means of example but not limitation, if a Clinical Trial can be performed (without
significant additional cost) in a way as to monitor an additional data point required by the FDA, but which data point is not
required by the CFDA, the Development Plan will include a Clinical Trial design that monitors the additional data point. By
further means of example but not limitation, if the CFDA only requires a single Clinical Trial, but the FDA requires a second
Clinical Trial with significant additional cost, the Development Plan will not require the conduct of a second Clinical
Trial. Unless otherwise agreed by both Parties, the Development Plan shall be in line with the above intention of Parties.
Any update or amendment to the Development Plan related to the Initial Indication requires written agreement of the JSC.

 

***Certain Confidential Information Omitted

    	12 

     

    

 

(b)               Development
of Initial Indication. Newsoara shall be responsible, at its own expense, (i) for conducting and completing all Development
activities required to obtain Regulatory Approval for the Product in the Initial Indication in the Territory consistent with the
Development Plan, and (ii) for obtaining Regulatory Approval for the Product in the Initial Indication in the Territory. Newsoara
shall have right to obtain Regulatory Approval in Newsoara’s or its Affiliate’s name for the Product in the Initial
Indication in the Territory, if it is permitted by Applicable Laws and Guidelines. Newsoara shall use Commercially Reasonable
Efforts to conduct and complete the foregoing activities and obtain such Regulatory Approval [...***...] following the
Effective Date. Newsoara shall conduct all Development of the Product for the Initial Indication in accordance with the Development
Plan, Applicable Laws and Guidelines in the Territory and requirements of the Regulatory Authorities in the Territory. Within
[...***...] of the end of each [...***...], Newsoara shall update LBS in reasonable detail in writing regarding
any Development of the Product for the Initial Indication in the Territory, which update shall include a summary of work completed,
summary of work in progress, current schedule of anticipated events or milestones, market plans for introduction of Products,
and summary of resources (dollar value) spent in such [...***...]. Newsoara, in good faith, shall take into consideration
any input from LBS regarding Development of the Product for the Initial Indication in the Territory. Upon [...***...],
Newsoara shall meet with LBS to discuss any matters related to the Development of the Product in the Territory for the Initial
Indication. For the avoidance of doubt, LBS and Newsoara shall mutually approve all Clinical Trial plans and protocols with respect
to the Product prior to any conduct of any Clinical Trials by Newsoara for the Initial Indication under this Agreement. LBS shall,
in accordance with the terms of this Agreement and the Supply Agreement, supply Newsoara with reasonable quantities of Product
and placebo as necessary for such Clinical Trials by Newsoara for the Initial Indication and other regulatory sample inspections
on the timetable as set forth in the Development Plan.

 

(c)               Diligence
Requirements. Without limiting the generality of Section 3.2(b), Newsoara shall diligently proceed with the Development of
the Products in accordance with the following schedule for the Initial Indication (the “Initial Indication Diligence
Milestones”):

 

	Milestone Event	Date of Completion
	[...***...]	[...***...]
	[...***...]	[...***...]
	[...***...]	[...***...]

	[...***...]	[...***...]

 

***Certain Confidential Information Omitted

    	13 

     

    

 

If Newsoara fails to complete an Initial
Indication Diligence Milestone by the specified date of completion, Newsoara may extend the date of completion of such Initial
Indication Diligence Milestone by [...***...].

 

3.3             
Newsoara Development Rights for Additional Indications.

 

(a)              Development
of Additional Indication. Newsoara shall have the right to Develop the Product for Additional Indications in the Territory
during the Term. At such time that Newsoara desires to Develop an Additional Indication, Newsoara shall consult in good faith
with LBS during meetings of the JSC regarding the selection of such Additional Indication. All Development of the Product for
Additional Indications by Newsoara shall be set forth in the Development Plan and mutually agreed in writing by the JSC. Any update
or amendment to the Development Plan related to any Additional Indication requires written agreement of the JSC. Newsoara shall
conduct all Development of the Product for Additional Indications only in accordance with the Development Plan, Applicable Laws
and Guidelines in the Territory and requirements of the Regulatory Authorities in the Territory. The update requirements and other
obligations of the Parties with respect to any Additional Indication shall be as set forth above in Section 3.2(b). Upon selection
of each Additional Indication, Newsoara shall use Commercially Reasonable Efforts to conduct and complete the foregoing activities
and obtain Regulatory Approval for the Product in each Additional Indication in the Territory as soon as possible following the
date of such selection.

 

(b)              Development
Costs. Subject to the provisions of Section 3.5 below, all Development Costs incurred in the Development of the Product for
the Initial Indication and all Additional Indications in the Territory shall be borne by Newsoara, provided however, LBS shall
bear all expenses of LBS’s personnel in connection with the Development of the Product.

 

3.4             
Commercialization.

 

(a)              Commencement
of Commercialization Period. The commercialization period of this Agreement shall commence on the first receipt of Regulatory
Approval for the Product in the Territory and continue for the remainder of the Term (the “Commercialization Period”).
Newsoara shall notify LBS in writing of the date of the First Commercial Sale within [...***...] of the First Commercial
Sale.

 

(b)              Commercialization
Plan; Updates. [...***...] after the Effective Date and subject to the timeline established by the JSC, Newsoara
shall deliver an initial Commercialization Plan to LBS. LBS has the right, but not the obligation, to provide input on the Commercialization
Plan. Newsoara, in good faith, shall take any such input into consideration. The JSC shall update the Commercialization Plan within
[...***...] of the end of each [...***...].

 

***Certain Confidential Information Omitted

 

    	14 

     

    

(c)              Commercialization;
Sales. Newsoara shall use Commercially Reasonable Efforts to Commercialize the Product throughout the Territory for the Initial
Indication and any Additional Indications for which Newsoara or its Affiliate has obtained Regulatory Approval for the Product.
Without limiting the foregoing, Newsoara shall undertake Commercialization in accordance with the Commercialization Plan and all
Applicable Laws and Guidelines in the Territory. To the extent required by Applicable Laws and Guidelines in the Territory, Newsoara
shall mark the Product as mutually agreed by the Parties.

 

(d)              Commercialization Information and Reports. Newsoara shall provide LBS with copies of all reasonable information relating
to Commercialization of the Product in the Territory generated by Newsoara or any of its Affiliates or on their behalf by any Third
Party, including market research, and information generated in connection with the conduct of promotional and other Commercialization
activities, as soon as possible after generation of such information. Within [...***...] of the end of each [...***...] during the Commercialization Period, Newsoara will provide LBS with written Commercialization reports that contain sufficient detail
about activities as to allow LBS to understand what has occurred and how it relates to the then-existing Commercialization Plan.

 

(e)              Commercialization
Costs. Newsoara shall bear all Commercialization Costs for Commercialization of the Product in the Territory, provided however,
LBS shall bear all expenses of LBS’s personnel in connection with the Commercialization of the Product.

 

3.5              Information
Sharing and Use. As further set forth in the Development Plan, each Party shall promptly provide the other Party with copies
of relevant non-clinical, analytical, and clinical data (including, for clarity, data sets) and any other Confidential Information
Controlled by such Party, relating to the use of the Product for the Initial Indication and any Additional Indication, already
generated or after generation of such data and information. Newsoara understands and acknowledges that LBS and its Affiliates,
licensees and sublicensees may need to utilize and include data and information regarding the Product generated by Newsoara or
its Affiliates (constituting Newsoara Know-How) as required in LBS’s, or its Affiliates’, licensees’ or sublicensees’
filings for Regulatory Approvals outside the Territory or as requested by the Regulatory Authorities outside the Territory. Newsoara
agrees to grant and hereby grants to LBS a perpetual, non-exclusive, fully paid and royalty-free sublicensable right and license
to use such data and information for the purpose of obtaining Regulatory Approval of the Product in the Initial Indication or
any Additional Indication outside the Territory or as necessary to comply with Applicable Laws and Guidelines outside the Territory,
and to share such data, information, and other regulatory materials received from Newsoara with LBS’s Affiliates, licensees
and sublicensees outside the Territory for the same purpose. All such data, information and other regulatory materials shall be
provided at no cost to LBS, its Affiliates, licensees or sublicensees for such purposes. Newsoara shall be solely responsible
for timely obtaining any licenses, permits or consents for collecting, using and transferring outside the Territory such data,
information and other regulatory materials to LBS. LBS understands and acknowledges that Newsoara and its Affiliates, licensees
and sublicensees may need to utilize and include data and information regarding the Product (constituting LBS Know-How) generated
by LBS or its Affiliates, licensees or sublicensee as required in Newsoara’s filings for Regulatory Approvals inside the
Territory or as requested by the Regulatory Authorities inside the Territory. LBS hereby acknowledges that the right and license
granted to Newsoara in Section 10.1 includes the right to use such data and information for the purpose of obtaining Regulatory
Approval of the Product in the Initial Indication and any Additional Indication inside the Territory or as necessary to comply
with Applicable Laws and Guidelines in the Territory.

 

***Certain Confidential Information Omitted

    	15 

     

    

 

3.6              Demonstration
of Financial Capability. From time to time upon LBS’s reasonable request, Newsoara shall demonstrate to LBS’s
reasonable satisfaction that it, together with its Affiliates: [...***...]; in each case sufficient to cover Development
Costs and Commercialization Costs, as applicable, for at least the [...***...] following each of the following such
request.

 

		4.	SUPPLY OF PRODUCT

 

The Parties shall agree on the terms and
conditions of a separate supply agreement within a reasonable period following the Effective Date, whereby LBS would supply to
Newsoara Product for its clinical (and if desired, commercial) purposes upon terms and conditions to be separately agreed by the
Parties (the “Supply Agreement”). At a minimum, the Supply Agreement shall provide the following:

 

(a)              Subject
to payment as set forth below, LBS shall supply sufficient quantities of investigational Product for conducting Clinical Trials
in the Territory on the timetable as set forth in the Development Plan. Such investigational Product shall be appropriately packaged
and labelled in accordance with Applicable Laws and Guidelines in the Territory. Upon the completion of Clinical Trials, Newsoara
shall have the right, in its reasonable discretion, to return to LBS or destroy any remaining units of investigational Product.
Newsoara shall pay LBS for all investigational Product used in the Clinical Trials in the Territory, and LBS shall invoice Newsoara
[...***...] (the “Transfer Price For Investigational Product”). However, in no event shall the Transfer
Price For Investigational Product [...***...]. Newsoara shall pay [...***...] of the price of the product
upon [...***...], and the balance shall be due [...***...].

 

(b)              Transfer
prices for commercial purposes shall be the cost [...***...] (the “Transfer Price For Commercial
Product”). The “Transfer Price For Commercial Product may be further adjusted by LBS upon no less than
[...***...] prior written notice (i) to reflect actual and documented changes in the cost of materials or
manufacturing processes used to Manufacture the Product charged by Third Party suppliers and manufacturers, or (ii) due to
inflation.

 

***Certain Confidential Information Omitted

 

    	16 

     

    

(c)              Such
other terms as are commercially reasonable and as are mutually agreed upon by the Parties.

 

		5.	PRICE, PAYMENT AND OTHER FINANCIAL TERMS

 

5.1             
Upfront Payment. Newsoara shall pay to LBS an “Upfront Payment” of One Million United States Dollars
(US $1,000,000) as follows: (a) [...***...] on or before [...***...], as a deposit (“Initial Deposit”)
against the full payment of the Upfront Payment, and (b) the full payment of [...***...] shall be paid on or before [...***...];
provided that at the time of such payment Newsoara [...***.... In the event Newsoara is unable to make the full payment
set forth in the preceding sentence by [...***...], Newsoara may pay a second deposit of [...***...] on or
before [...***...] (which shall be additionally deemed to constitute the “Initial Deposit”) and the
full payment shall thereafter be paid on or before [...***...]. Unless otherwise set forth in this Agreement, such payments/deposits
shall not be refundable or returnable (and shall be paid even if this Agreement terminates), nor shall the payments be creditable
against other payments.

 

5.2             
Milestone Payments. In addition to the payments specified in Section 5.1 and Section 5.3, Newsoara shall make milestone
payments to LBS as described below. Unless otherwise set forth in this Agreement, such milestone payments shall not be refundable
or returnable, nor shall they be creditable against other payments. Newsoara shall promptly notify LBS of each occurrence of a
milestone event, so as to facilitate LBS providing an invoice to Newsoara pursuant to Section 5.6. [...***...]. For the
avoidance of doubt, more than one of the milestone events listed in this Section 5.2 can be achieved in a single calendar year
such that payment of more than one of the milestone payments listed in Section 5.2 would be payable in a single calendar year.

 

(a)               Development
Milestone Payments. With respect to the Product, Newsoara shall pay to LBS the following amounts for the first achievement
of the following milestone events (as described below) for such Product by Newsoara or any of its Affiliates (each, a “Development
Milestone”). For clarity, multiple milestone events due to the origin of the Products (import and domestic drug) for
the same indication shall be deemed as a single milestone event.

 

	Milestone Event	Milestone Payment (USD)
	[...***...]	$[...***...]
	[...***...]	$[...***...]
	[...***...]	$[...***...]

	[...***...]	$[...***...]
	[...***...]	$[...***...]

 

***Certain Confidential Information Omitted

 

    	17 

     

    

(b)              
Sales Milestone Payments. With respect to the Product, Newsoara shall pay to LBS the following amounts for the first
achievement of the following milestone events for such Product by Newsoara or any of its Affiliates (each, a “Sales Milestone”).
For the avoidance of doubt, the milestone events listed in this Section 5.2(b) are payable when combined Gross Sales of the Product
for any or all indications, reach the sales milestone listed below in a single calendar year.

 

	Milestone Event	Payment
	Gross Sales of all Products in a calendar year equal or exceed US $[...***...]	$[...***...]
	Gross Sales of all Products in a calendar year equal or exceed US $[...***...]	$[...***...]
	Gross Sales of all Products in a calendar year equal or exceed US $[...***...]	$[...***...]
	Gross Sales of all Products in a calendar year equal or exceed US $[...***...]	$[...***...]
	Gross Sales of all Products in a calendar year equal or exceed $[...***...]	$[...***...]

 

5.3             
Royalty Payments. Subject to the terms and conditions of this Article 5, in addition to the payments specified in
Section 5.1 and Section 5.2, Newsoara shall pay to LBS royalty payments at the following royalty rates on the applicable portion
of total Net Sales in a single calendar year of the Product for any or all indications:

 

	Total Calendar Year Net Sales

in a Single Calendar Year

of the Product for all indications	Royalty Rate
	Net Sales up to and including $[...***...]	[...***...]%
	Net Sales exceeding $[...***...] and up to and including $[...***...]	[...***...]%

	Net Sales exceeding $[...***...] and up to and including $[...***...]	[...***...]%
	Net Sales exceeding $[...***...] and up to and including $[...***...]	[...***...]%
	Net Sales exceeding $[...***...]	[...***...]%

 

***Certain Confidential Information Omitted

    	18 

     

    

Notwithstanding the foregoing, if, in a
particular calendar year, one or more Third Parties is or are selling a Generic Competitor in the Territory that has remained on
the market in the Territory for at least [...***...] prior to the end of such [...***...], and which has captured
at least [...***...] in the applicable currency in the Territory (as reported by IQVIA or a mutually agreed Third Party),
then in such case the royalty rates set forth in this Section 5.3 shall be reduced by [...***...] of the rate otherwise
payable pursuant to this Section 5.3.

 

5.4             
Resale Price. Newsoara shall be free to establish its own resale price of the Product to Customers within the Territory.
Newsoara shall notify LBS following any change in its pricing policy for the Product.

 

5.5             
Sales Reports. Within [...***...] after the end of the [...***...] following the First Commercial
Sale of a Product and within [...***...] after the end of each [...***...] thereafter ending on [...***...],
Newsoara shall provide to LBS a written sales report (each, a “Sales Report”) with respect to: (i) the Product
sold (on a Product-by-Product and a customer by customer basis), including line items for any deductions to the gross invoiced
amount made pursuant to the definition of Net Sales, and (ii) the calculation (in reasonable detail) of the royalty payment owed
(including the applicable exchange rates used) and paid for such [...***...]. Within [...***...] after the
end of each [...***...], Newsoara will deliver a Sales Report for the [...***...], as well as a reconciliation
for any adjustments made in the calculation of Net Sales or the applicable royalty rate that affects any calculation from an earlier
[...***...]. Each delivery of a Sales Report hereunder shall also be deemed to constitute a representation and warranty
by Newsoara that such Sales Report is true, correct and complete in all material respects.

 

5.6             
Payments. All payments to LBS shall be made by telegraphic transfer payable as follows:

 

	Bank Name:	[...***...]
	Account Name:	[...***...]
	Account Number:	[...***...]
	SWIFT Code:	[...***...]
	ABA Routing:	[...***...]
	Bank Address:	[...***...]

 

LBS may change the instructions for telegraphic
transfer by providing written instructions to Newsoara. It is agreed that Newsoara shall be responsible for obtaining any license
and required documentation for wiring payments to LBS at its bank account outside the Territory. Any undisputed amounts remaining unpaid shall
accrue interest at the lesser of the rate of [...***...]% per month or the highest rate permissible under Applicable
Laws and Guidelines, compounded monthly, from the due date until the date of payment.

***Certain Confidential Information Omitted

 

    	19 

     

    

 

Amounts payable pursuant to Section 5.3
shall be calculated quarterly as of the last day of each Calendar Quarter. Royalty payments for each of the Calendar Quarters shall
be determined by multiplying (i) the cumulative Net Sales earned through the end of such Calendar Quarter by (ii) the royalty rate
that would apply under Section 5.3 by annualizing the Net Sales through such period, and then reduced by the cumulative Royalty
payments for all prior Calendar Quarters for that year (if any). The royalty payment for the last Calendar Quarter shall be adjusted
up or down as necessary to reflect the appropriate final applicable royalty rate for the calendar year and for any adjustments
to the calculation of Net Sales based upon the audited financial statements.

 

Upon the occurrence of each payment event
set forth in this Agreement and on a [...***...] following receipt of Sales Reports, LBS shall provide an invoice to
Newsoara for the applicable portion of the fees. The payment will be payable within [...***...] upon Newsoara’s
receipt of the invoice, provided however, the payment time may be extendable for an additional [...***...] if Newsoara
has used its best effort in complying with legal requirements in the Territory for transferring such payments from the Territory
to the United States; provided further that if, by reason of Applicable Laws and Guidelines in the Territory, it becomes impossible
or illegal for Newsoara to transfer, or have transferred on its behalf, payments owed to LBS hereunder, Newsoara will promptly
notify LBS of the conditions preventing such transfer and during the [...***...] period herein Newsoara may deposit the
amount thereof in local currency to (i) an LBS-designated account in a bank or depository in China or (ii) if no such bank or depository
has been so designated, to an account (to the credit of LBS) in a recognized banking institution selected by Newsoara and identified
in written notice given to LBS. In the event of a deposit as described in the foregoing sentence, Newsoara shall assist LBS in
accessing and/or transferring to the United States the applicable amount and such deposit shall be deemed as if Newsoara has paid
to LBS in the full amount of such payment.

 

5.7             
Audit Rights.

 

(a)              Newsoara
shall keep, and shall cause its Affiliates to keep, complete, true and accurate books and records pertaining to any Sales Report.
Newsoara and its Affiliates shall keep such books and records (and the audit rights set forth in this Section 5.7 shall continue)
for at least [...***...] following the Calendar Quarter or calendar year to which they pertain.

 

(b)              LBS shall have the right to appoint independent public accountants, which are reasonably acceptable to Newsoara (the “Auditor”),
to inspect such books and records of Newsoara and its Affiliates as reasonably necessary to verify the accuracy of such Sales Reports
and the royalties and other amounts payable to LBS under this Agreement.

 

(c)              Newsoara
and its Affiliates shall make their records available for inspection by such Auditor during regular business hours at such place
or places where such records are customarily kept, upon receipt of reasonable advance notice from LBS, to verify the accuracy
of the Sales Reports.

 

***Certain Confidential Information Omitted

    	20 

     

    

 

(d)              
In the event that the inspection reveals an undisputed underpayment or overpayment by Newsoara with regard to any milestone
payment or royalty payment, the underpaid or overpaid amount shall be settled promptly.

 

(e)              
If any inspection performed by the Auditor under this Section indicates that any payment due hereunder was underpaid, Newsoara
shall pay to LBS the amount of such underpayment, together with interest thereon from the date such underpayment was due at a rate
equal to the rate set forth in Section 5.6, calculated on the total number of days such payment is late; provided, however, that
Newsoara shall only pay to LBS interest on the amount of such underpayment, if the underpayment is more than [...***...]
of the amount previously paid. LBS shall pay for such audits, except that in the event there is any upward adjustment in aggregate
amounts payable for any year shown by such audit of more than [...***...] of the amount previously paid, Newsoara shall
pay for such audit.

 

5.8             
Taxation. All payments under this Agreement shall be made without any deduction or withholding for or on account
of any tax (each, a “Withholding Tax”). If such deduction or withholding is required by Applicable Laws and
Guidelines, Newsoara shall pay to the relevant authorities the full amount of the Withholding Tax required to be deducted or withheld
within the time period specified by Applicable Laws and Guidelines. Newsoara shall increase the amounts payable to LBS under this
Agreement so that LBS receives a sum equal to the sum which it would have received had no such Withholding Tax been applicable
or otherwise imposed. Newsoara and LBS shall cooperate to obtain the documentation necessary to claim a reduction of or exemption
for payment of any Withholding Tax that may be available under an applicable tax treaty or under Applicable Laws and Guidelines
and LBS shall use Commercially Reasonable Efforts to obtain a deduction, credit or recovery for foreign taxes paid in China on
its behalf by Newsoara. To the extent that LBS receives such deduction, credit or recovery, LBS shall pay Newsoara any such deduction,
credit or recovery within [...***...] of the date that it receives the deduction, credit or recovery.

 

5.9             
Currency. All payments under this Agreement shall be paid in United States Dollars. When converting Net Sales from
a foreign currency into United States Dollars is required for purposes of preparing Sales Reports, determining whether milestones
have been achieved under Section 5.2 and determining the royalty rate payable under Section 5.3, the rate of exchange to be used
shall be the rates found in the Wall Street Journal or other publication or source as agreed by the Parties, on the date
of the payment by Newsoara.

 

5.10           
Payment of Royalties by LBS. In the event that LBS is obligated to pay royalties to Newsoara pursuant to Section
9.4.1(g) or Section 9.4.2(b), unless otherwise agreed by both Parties, LBS shall, if applicable, follow the same requirements and
procedures set forth in Sections 5.5, 5.6 and 5.7, mutatis mutandis as if LBS is licensee (i.e., Newsoara in Sections 5.5,
5.6 and 5.7).

 

		6.	FURTHER RIGHTS AND OBLIGATIONS OF THE PARTIES

 

6.1             
Quality Agreement. Within a reasonable period following the Effective Date, the Parties shall enter into a Quality
Agreement.

 

***Certain Confidential Information Omitted

    	21 

     

    

 

6.2             
LBS Obligations. In addition to the rights and obligations set forth in this Agreement, during the Term, LBS shall
itself or through its Third Party manufacturers:

 

(a)              Select
and retain samples of the Product and conduct an ongoing stability program in accordance with the provisions of any stability
protocol mutually agreed to by the Parties, and initiate and maintain all legally required documents and records related to such
program that are required by any applicable Regulatory Authority; and

 

(b)              Maintain
any required certifications with respect to the Manufacture of the Product during the Term.

 

6.3             
Newsoara Obligations. In addition to the rights and obligations set forth in this Agreement, during the Term, Newsoara
shall:

 

(a)              Use
Commercially Reasonable Efforts to distribute the Product throughout the Territory during the Commercialization Period;

 

(b)              During
the Commercialization Period, use Commercially Reasonable Efforts to promote the Product throughout the Territory in accordance
with marketing and sales strategies developed by Newsoara and objectives in the Commercialization Plan; and

 

(c)              Maintain complete and accurate records of all potential problems involving the Product by order and by Customer so that
all such potential problems can be traced quickly and effectively. Upon reasonable notice to Newsoara and in a manner calculated
not to unreasonably interfere with Newsoara’s conduct of business, allow LBS employees or representatives to inspect such
records.

 

6.4             
Change of Control.

 

(a)              In
the event that during the Term of this Agreement Newsoara enters into a transaction or series of transactions with a Third Party
that constitutes a Change of Control of Newsoara (such Third Party referred to as an “Acquiror”), and such
Acquiror or any of its Affiliates (the “Acquiror Group”), as of the effective date of such transaction(s),
is engaged, directly or indirectly, in the development, marketing and/or sale of a Competing Product in the Territory, then Newsoara
shall not consummate such transaction unless the Acquiror agrees in writing (with LBS as a third party beneficiary) that such
Acquiror Group shall (i) segregate the personnel and activities of the Party and its other Affiliates with respect to Product
from all programs of the Acquiror Group directed to the development and/or commercialization of Competing Products, and (ii) not
change its practices with respect to the development and/or commercialization of Product in a way that could reasonably be expected
to (A) have a material adverse effect on the viability and marketability of Product or (B) result in the destruction, material
deterioration, or material impairment of Product.

 

(b)               In
the event that during the Term of this Agreement LBS enters into a transaction or series of transactions with a Third Party
that constitutes a Change of Control of LBS, and such Acquirer Group, as of the effective date of such transaction(s), is
engaged, directly or indirectly, in the development, marketing and/or sale of a Competing Product in the Territory, then in
LBS’s sole election, either (i) LBS shall not consummate such transaction unless the Acquiror agrees in writing (with
Newsoara as a third party beneficiary) that such Acquiror Group shall (A) segregate the personnel and activities of the Party
and its other Affiliates with respect to Product from all programs of the Acquiror Group directed to the development and/or
commercialization of Competing Products in the Territory, and (B) not change its practices with respect to the development
and/or commercialization of Product in a way that could reasonably be expected to (I) have a material adverse effect on the
viability and marketability of Product or (II) result in the destruction, material deterioration, or material impairment of
Product, or (ii) the royalty rates set forth in Section 5.3 shall be reduced by [...***...] of the rate otherwise
payable pursuant to Section 5.3 for each year after such Change of Control of LBS.

 

***Certain Confidential Information Omitted

    	22 

     

    

 

		7.	REGULATORY COMPLIANCE

 

7.1             
Regulatory and Reimbursement Approval. Once obtained in accordance with Article 3, Newsoara and its Affiliates shall
be responsible for maintaining, at its sole cost, the Regulatory Approval and for obtaining and maintaining the Reimbursement Approval
or other approvals from the applicable Regulatory Authority or governmental authority required for the Commercialization of the
Product within the Territory throughout the Term for the Initial Indication and all Additional Indications for which Newsoara or
its Affiliate has obtained Regulatory Approval for the Product. LBS or its designees shall be responsible for maintaining, at its
sole cost, the regulatory or other approvals from the applicable Regulatory Authority or governmental authority required for LBS’s
manufacturing, packaging, release and shipping of the Product. LBS or its designee shall provide to Newsoara all necessary documentation
to enable Newsoara or its Affiliate to import the Product within the Territory. If it is permitted by Applicable Laws and Guidelines,
Newsoara shall hold in its or its Affiliate’s name all Regulatory Approvals, Reimbursement Approvals or other approvals required
for the Commercialization of the Product within the Territory. During the Term, LBS and Newsoara shall provide reasonable advice
and assistance to each other as may be necessary to maintain Regulatory Approvals required by the applicable Regulatory Authorities
and to comply with Applicable Laws and Guidelines with respect to the Manufacture and Commercialization of the Product within the
Territory. For Regulatory Approvals sought by Newsoara or for which Newsoara is responsible, Newsoara shall provide LBS with written
notice within [...***...] of receiving each Regulatory Approval confirming the date of such Regulatory Approval.

 

7.2             
Recalls. If either Party reasonably decides to or is required by any government authority or court of competent jurisdiction
in the Territory to initiate a product recall, withdrawal or field correction with respect to the Product, or if there is any governmental
or Regulatory Authority seizure of the Product or any products containing the Product supplied hereunder, the Party initiating
or required to initiate such action will notify the other Party promptly of the details regarding such action, including providing
copies of all relevant documentation concerning such action. The Parties will assist each other in investigating any such situation
and all regulatory contacts that are made and all activities concerning seizure, recall, withdrawal or field correction will be
jointly coordinated by Newsoara and LBS, including as may be further set forth in the Supply Agreement.

 

7.3              Pharmacovigilance.
Newsoara and its Affiliates shall be responsible for submitting all required Clinical Trial reports and post-marketing
reports of adverse drug experiences relating to the Product to the appropriate Regulatory Authorities in the Territory in
accordance with Applicable Laws and Guidelines in the Territory and requirements of Regulatory Authorities in the Territory.
Newsoara and its Affiliates shall be responsible for reporting all adverse drug reaction experiences required to be reported
to the appropriate Regulatory Authorities in the Territory in which the Product is being Developed for the Initial Indication
or any Additional Indication or Commercialized, in accordance with Applicable Laws and Guidelines in the Territory. LBS shall
provide to Newsoara, without additional charge, adequate information to support Newsoara’s reporting obligations in the
Territory. Newsoara shall provide to LBS, without additional charge, adequate information to support LBS’s, its
Affiliates’, licensees’ and sublicensees’ reporting obligations outside the Territory. LBS, its Affiliates
or licensees or sublicensees shall be responsible for submitting all Regulatory Filings, including any post-marketing reports
of adverse drug experiences, relating to the Product required to be reported to the appropriate Regulatory Authorities
outside of the Territory in accordance with the Applicable Laws and Guidelines of the relevant countries outside the
Territory. LBS shall have the right to share any and all information received from Newsoara under this Section 7.3 or under
Section 7.4 or Section 7.5 and/or any pharmacovigilance agreement between the Parties with LBS’s Affiliates, licensees
and sublicensees outside the Territory. Within a reasonable period after the Effective Date, the Parties will enter into a
pharmacovigilance agreement on customary terms.

 

***Certain Confidential Information Omitted

    	23 

     

    

 

7.4             
Complaints and Inquiries as to Safety, Quality, or Effectiveness. Each Party shall prepare and maintain a written
standard operating procedure to handle the treatment of complaints and inquiries as to the safety, quality or effectiveness of
the Product. Each Party shall collect and investigate such complaints or inquiries in its respective territory, and shall promptly
forward all complaints and inquiries to the other Party and to such other persons as may be required to comply with Applicable
Laws and Guidelines. If an investigation at either Party is needed in response to a complaint or inquiry, such Party or Parties
shall conduct such an investigation and will forward the results thereof to the other Party, as applicable, within a reasonable
period of time. Each Party shall retain records of the Product related complaints or inquiries for a period of not less than [...***...]
beyond the termination date of this Agreement or for such longer period as may be required by Applicable Laws and Guidelines. Either
Party may review any such records upon reasonable notice to the other Party and in a manner calculated not to unreasonably interfere
with the other Party’s conduct of business.

 

7.5             
Governmental Inspections.

 

(a)               Newsoara
shall promptly advise LBS of any governmental visits to, or written or oral inquiries about, any facilities or procedures used
for the storage or handling of the Product, or the Development, marketing, selling, promotion or distribution of the Product.
Newsoara shall promptly notify LBS of any actual or threatened legal or regulatory action by any Regulatory Authority or governmental
agency with respect to any facilities or procedures used for the storage or handling of the Product, or the marketing, selling,
promotion or distribution of the Product. In each case, such notice to LBS shall be no later than [...***...] after
notice of such visit or inquiry. Newsoara shall, within [...***...] of receipt or submission, furnish to LBS any report
or correspondence issued by or provided to the Regulatory Authority in connection with such visit or inquiry. LBS shall at its
own cost have the right to participate in any communication, inspection or inquiry by any Regulatory Authority in the Territory
regarding the Product.

 

 

***Certain Confidential Information Omitted

    	24 

     

    

(b)              LBS shall promptly advise Newsoara of any governmental visits to, or written or oral inquiries about, any facilities or
procedures used for the storage or handling of the Product, or the Development, marketing, selling, promotion or distribution of
the Product. LBS shall promptly notify Newsoara of any actual or threatened legal or regulatory action by any Regulatory Authority
or governmental agency with respect to any facilities or procedures used for the storage or handling of the Product, or the marketing,
selling, promotion or distribution of the Product. In each case, such notice to Newsoara shall be no later than [...***...]
after notice of such visit or inquiry. LBS shall, within [...***...] of receipt or submission, furnish to Newsoara any
report or correspondence issued by or provided to the Regulatory Authority in connection with such visit or inquiry. Newsoara shall
at its own cost have the right to participate in any communication, inspection or inquiry by any Regulatory Authority in the Territory
regarding the Product.

 

		8.	REPRESENTATIONS, WARRANTIES AND COVENANTS

 

8.1             
Mutual Representations, Warranties and Covenants. Each Party hereby represents, warrants and covenants to the other
Party that:

 

(a)              
it is a corporation or entity duly organized and validly existing under the laws of the state, province, country or other
jurisdiction of its incorporation or formation;

 

(b)              the
execution, delivery and performance of this Agreement by such Party has been duly authorized by all requisite corporate action
and does not require any shareholder action or approval;

 

(c)              this
Agreement constitutes a legal, valid and binding obligation of such Party, enforceable according with its terms, and that the
execution, delivery and performance of this Agreement does not conflict with any agreement, instrument or understanding, oral
or written, to which such Party may be bound, nor violate any Applicable Laws and Guidelines of any court, governmental body,
Regulatory Authority or administrative or other agency having jurisdiction over it;

 

(d)              such
Party shall perform its activities pursuant to this Agreement in compliance with GLP, GCP and GMPs, in each case as applicable
under the Applicable Laws and Guidelines of the country and the state and local government wherein such activities are conducted,
and with respect to the care, handling and use in research and Development activities hereunder of any nonhuman animals by or
on behalf of such Party, shall at all times comply (and shall ensure compliance by any of its subcontractors) with all Applicable
Laws and Guidelines;

 

(e)              
neither Party shall employ (or, to its actual knowledge, use any contractor or consultant that employs) any Person debarred
by, or subject to a similar sanction of, a Regulatory Authority, or, to its actual knowledge, any Person which is the subject of
a debarment investigation or proceeding, or similar proceeding of, a Regulatory Authority, in the conduct of its activities under
this Agreement, and each contractor or consultant used by a Party in connection with the conduct of Clinical Trials under this
Agreement shall be subject to a covenant that is the same or substantially the same as the foregoing covenant; and

 

***Certain Confidential Information Omitted

    	25 

     

    

 

(f)              neither
Party shall, during the Term, grant any right or license to any Third Party relating to any of the intellectual property rights
it Controls which would conflict or interfere with any of the rights or licenses granted to the other Party hereunder.

 

8.2            
Additional Representations, Warranties and Covenants of LBS. LBS hereby further represents, warrants and covenants
that:

 

(a)              LBS has the right, power and authority to grant to Newsoara the rights and licenses granted by LBS under this Agreement;

 

(b)              as of the Effective Date, LBS has not been notified in writing and is not aware of any patent infringement or other action
related to intellectual property pending before any court, governmental agency or other tribunal in the Territory relating to the
Product;

 

(c)              as
of the Effective Date, to the best knowledge of LBS, the Development and Commercialization in the Territory of the Product as
it exists as of the Effective Date does not infringe any intellectual property of any Third Party in the Territory;

 

(d)              to
the knowledge of LBS, the LBS Technology has not been abandoned, withdrawn, canceled or held invalid or unenforceable by any court
of competent jurisdiction in the Territory in a final non-appealable judgment; and

 

(e)              it
has not previously (i) assigned, transferred, conveyed or otherwise encumbered its right, title and/or interest in LBS Technology
related to Products in the Territory, or (ii) granted any rights to any Third Parties, in either case that would conflict with
the rights granted to Newsoara hereunder.

 

8.3             
Additional Representations, Warranties and Covenants of Newsoara. Newsoara hereby further represents, warrants and
covenants that:

 

(a)              Newsoara
and its Affiliates will obtain, prior to commercial distribution of the Product in the Territory, all licenses, registrations
and permits required in the Territory to enable Newsoara or its Affiliate to act as a distributor of the Product in the Territory;
and

 

(b)              in
connection with this Agreement, and without limiting anything in this Article 8, neither Newsoara nor its Affiliates have
given or promised to give, nor will make, offer, agree to make or authorize any payment or other transfer anything of value,
directly or indirectly, to (i) any Government or Public Official; (ii) any political party, party official or candidate for
public or political office; (iii) any person while knowing or having reason to know that all or a portion of the value will
be offered, given or promised, directly or indirectly, to anyone described in items (i) or (ii) above; or (iv) any owner,
director, employee, representative or agent of any actual or potential customer of Newsoara or its Affiliates, in each case
if any such transfer of value would be a violation of any Applicable Laws and Guidelines. Newsoara agrees on behalf of itself
and its Affiliates to comply with all applicable anti-bribery laws in the countries where the Parties have their principal
places of business and where they conduct activities under this Agreement. Additionally, Newsoara represents, warrants and
covenants that Newsoara and its Affiliates shall comply with the U.S. Foreign Corrupt Practices Act
(“FCPA”) and the UK Anti-Bribery Act, both as revised from time to time, as well as similar Applicable
Laws and Guidelines of the country where Newsoara and each of its Affiliates has its principal place of business and where
Newsoara and each of its Affiliates conducts activities under this Agreement, and to take no action that would reasonably be
deemed to cause LBS to be in violation of the FCPA, the UK Anti-Bribery Act or similar Applicable Laws and Guidelines of the
country where a Party has its principal place of business and where it conducts activities under this Agreement.
Additionally, Newsoara and its Affiliates will make reasonable efforts to comply with requests for information, including
answering questionnaires and narrowly tailored audit inquiries, to enable LBS to ensure compliance with Applicable Laws and
Guidelines related to anti-bribery concerns. For purposes of this Agreement, “Government or Public
Official” means any officer or employee or anyone acting in an official capacity on behalf of: a government or any
department or agency thereof; a public international organization (such as the United Nations, the International Monetary
Fund, the International Red Cross, and the World Health Organization), or any department, agency or institution thereof; or a
government-owned or controlled company, institution, or other entity, including a government-owned hospital or
university.

 

    	26 

     

    

 

8.4             
Disclaimer. Except as otherwise expressly set forth in this Agreement, neither Party makes any representations
or extends any warranties of any kind, either express or implied, including warranties of merchantability, fitness for any particular
purpose, or non-infringement.

 

		9.	TERM, TERMINATION

 

9.1             
Term. This Agreement shall commence on the Effective Date, and unless terminated sooner in accordance with its terms
and conditions, shall expire on the expiration of the last Valid Claim of any LBS Patent or Joint Patent Covering the Product in
the Territory (collectively, the “Term”). [...***...]. Upon expiration of the Term in accordance with
this Section 9.1, Newsoara shall have the right, at its sole discretion, to have the rights granted to Newsoara pursuant to Section
10.1 under the applicable LBS Know-How (and the right to continue to hold the Regulatory Approval, Regulatory Filings and Reimbursement
Approvals for the Product in the Territory, continue to be the exclusive distributor as defined under Section 2.1 and the Manufacturing
Right as defined under Section 2.2) survive on a perpetual basis, provided that Newsoara shall continue to pay LBS royalty payments
as set forth in Section 5.3, but at a rate [...***...] of the rate otherwise payable pursuant to Section 5.3 (including
as such [...***...], in each following calendar year as otherwise set forth in this Agreement.

 

9.2             
Termination by Newsoara. This Agreement may be terminated in its entirety by Newsoara, upon Newsoara’s prior
written notice to LBS:

 

(a)              
if LBS commits a material breach of this Agreement and such breach remains uncured for [...***...] following written
notice of breach by Newsoara; or

 

***Certain Confidential Information Omitted

    	27 

     

    

(b)              if
LBS is subject to a petition for relief under any bankruptcy legislation, or makes an assignment for the benefit of creditors,
or is subject to the appointment of a receiver for all or a substantial part of LBS’s assets, and such petition, assignment
or appointment prevents LBS (as a legal or as a practical matter) from performing its obligations under this Agreement, and such
petition, assignment or appointment is not otherwise dismissed or vacated within [...***...].

 

(c)              Newsoara
shall have the right, at its sole discretion without any penalty, exercisable at any time during the Term, to terminate this Agreement
for any reason or no reason at all upon [...***...] prior written notice to LBS.

 

9.3             
Termination by LBS. This Agreement may be terminated in its entirety by LBS, upon LBS’s prior written notice
to Newsoara:

 

(a)              if
Newsoara or any of its Affiliates commits a material breach of this Agreement and such breach remains uncured for [...***...]
following written notice of breach by LBS;

 

(b)              if Newsoara or any of its Affiliates challenges or attempts to interfere with any LBS Patents (including applications for
Patents within the LBS Patents) in any way, LBS shall have the right, in its sole discretion and immediately on written notice
to terminate this Agreement for cause; or

 

(c)              if Newsoara or any Affiliate is subject to a petition for relief under any bankruptcy legislation, or makes an assignment
for the benefit of creditors, or is subject to the appointment of a receiver for all or a substantial part of Newsoara’s
or such Affiliate’s assets, and such petition, assignment or appointment prevents Newsoara (as a legal or as a practical
matter) from performing its obligations under this Agreement, and such petition, assignment or appointment is not otherwise dismissed
or vacated within [...***...].

 

9.4             
Effect of Termination.

 

9.4.1           Upon
termination of this Agreement by LBS pursuant to Section 9.3, or by Newsoara pursuant to Section 9.2(c), then:

 

(a)               The
rights and licenses granted to Newsoara under Section 10.1 shall terminate, and Newsoara and its Affiliates shall cease all use
of the LBS Technology and the using and selling of Products;

 

(b)               at
LBS’s request on a case-by-case basis, Newsoara agrees to assign and hereby assigns, and shall promptly transfer, to LBS
(or LBS’s designee), at the expense of Newsoara; provided, however, that LBS shall bear such expense if this Agreement is
terminated by Newsoara pursuant to Section 9.2(c):

 

  (i)                
to the extent permitted by Applicable Laws and Guidelines, all of Newsoara’s and its Affiliates’ right, title
and interest in any Regulatory Approvals, Regulatory Filings and Reimbursement Approvals for the Product, and file for such transfer
with, and provide all approvals and notices required for such transfer to, the Regulatory Authorities in the Territory;

 

***Certain Confidential Information Omitted

    	28 

     

    

  (ii)             
all of Newsoara’s and its Affiliates’ right, title and interest in all trademarks, service marks, names, logos,
design and trade dress used in commerce by Newsoara or its Affiliates with the Product (excluding any corporate name or logo of
Newsoara or any of its Affiliates), and the goodwill related thereto; and

 

  (iii)           
any Third Party agreements of Newsoara or any of its Affiliates related to the Product in the Territory;

 

(c)             
after fulfillment of Newsoara’s existing commitments to its Customers, Newsoara shall sell to LBS Newsoara’s
and its Affiliates’ then-existing inventory of Product, at the transfer price paid to LBS for such Product or at cost if
not originally transferred by LBS to Newsoara; provided that LBS shall not be obligated to purchase such inventory;

 

(d)              to
the extent permitted by Applicable Laws and Guidelines, transfer to LBS ongoing Clinical Trials of Product being conducted by
or under authority of Newsoara and its Affiliates as of the date of the applicable termination notice, continue to conduct such
Clinical Trials up to such transfer, or, if requested by LBS, terminate such Clinical Trials in a manner conforming to Applicable
Laws and Guidelines;

 

(e)              Newsoara
shall not, and shall ensure its Affiliates do not, withdraw or cancel any Regulatory Approval or Reimbursement Approval or application
for either, unless expressly instructed to do so by LBS;

 

(f)               Newsoara shall refrain, and shall ensure its Affiliates refrain, from making any statement, public or otherwise, regarding
the Product unless: (i) Newsoara or its Affiliate is required to make such statement pursuant to Applicable Laws and Guidelines,
(ii) such statement is limited to the fact that Newsoara is no longer Developing or Commercializing the Product, or (iii) LBS approves
such statement in writing;

 

(g)              the rights and licenses granted to LBS under Section 10.2(a) shall be expanded to authorize LBS to make, have made, use,
sell, offer to sell, import, and otherwise Develop and Commercialize the Product for the Field inside the Territory (i) automatically
on a non-exclusive basis, or (ii) upon LBS’s written election within [...***...] of the date of termination, on
an exclusive royalty-bearing basis for Newsoara Patents, which [...***...], payable until the expiration of the last
Valid Claim of any Newsoara Patent Covering the Product in the Territory, for clarity, the license under Newsoara Know-How granted
by Newsoara to LBS shall be non-exclusive inside the Territory; and

 

(h)              upon
request from and for the benefit of LBS, Newsoara promptly shall take such other actions and execute such other instruments, assignments
and documents that are reasonably necessary to effect the transfers and grants of rights under this Section 9.4.1 to LBS.

 

***Certain Confidential Information Omitted

    	29 

     

    

9.4.2           Upon
termination of this Agreement by Newsoara pursuant to Section 9.2(a) or Section 9.2(b), then the effect of termination set forth
in Section 9.4.1 shall apply with the following exceptions:

 

(a)               The
assignments described in Section 9.4.1(b) shall be at the expense of LBS; and

 

(b)               Section
9.4.1(g) shall be invalid and the rights and licenses granted to LBS under Section 10.2(a) shall be expanded to authorize LBS
to make, have made, use, sell, offer to sell, import, and otherwise Develop and Commercialize the Product for the Field inside
the Territory on a non-exclusive basis and become royalty-bearing at a rate of [...***...] of Net Sales (calculated
mutatis mutandis with respect to sales by LBS or any of its Affiliates or sublicensees) of Product by LBS, its Affiliates
or sublicensees in the Territory.

 

9.5             
Prior Obligations. Except as otherwise set forth in this Article 9, termination or expiration of this Agreement for
any reason shall not release either Party from any obligation theretofore accrued under this Agreement.

 

9.6             
Return of Confidential Information. In accordance with Section 12.5 herein, each Party shall return to the other
Party or destroy all copies of Confidential Information of the other Party.

 

9.7             
Survival. The provisions of Sections, 3.5, 5.7, 8.4, 9.4, 9.5, 9.6, 9.7, 10.2 (including as may be expanded to include
the Territory pursuant to Section 9.4.1(g) or Section 9.4.2(b)), 10.3, 10.4 and Articles 1, 11, 12, 13 and 14, and any other section
that must, by its nature, survive to give effect to its intent, shall survive any termination or expiration of this Agreement.

 

		10.	CO-DEVELOPMENT RIGHTS; INTELLECTUAL PROPERTY

 

10.1            Co-Development Rights to Newsoara. Subject to the terms and conditions of this Agreement, LBS hereby grants to Newsoara
an exclusive (even against LBS and its Affiliates), non-transferable co-development right under the LBS Technology (a) to Develop
the Product for the Field inside the Territory during the Term, and (b) to use, sell, offer to sell, import, and otherwise Commercialize
the Product for the Field inside the Territory during the Term. Newsoara shall assist LBS in recordation of such co-development
right of LBS Technology in the Territory. Newsoara shall be entitled to grant sublicenses to Third Parties under the license granted
pursuant to Section 10.1, provided that LBS provides prior written consent to such sublicense, provided however, both Parties agree
that Newsoara may use [...***...] to conduct the Development of the Product in the Territory. Notwithstanding the foregoing,
LBS shall continue to have a non-exclusive right to Develop the Product inside the Territory for any uses or applications outside
the Territory upon prior written consent of Newsoara.

 

10.2            License
to LBS. Subject to the terms and conditions of this Agreement, Newsoara hereby grants, on behalf of itself and its
Affiliates, to LBS a fully paid and royalty-free license, with the right to sublicense, under the Newsoara Technology (a) to
make, have made, use, sell, offer to sell, import, and otherwise Develop and Commercialize the Product for the Field outside
the Territory, and (b) to make, have made, use, sell, offer to sell and import the Product inside the Territory during the
Term but only to the extent necessary to comply with its obligations to enable Newsoara to Develop and Commercialize the
Product under this Agreement or to enable LBS to Develop the Product inside the Territory solely for any uses or applications
outside the Territory, provided that each specific Development inside the Territory shall be subject to Newsoara’s
prior written consent. The license rights in the foregoing clause (a) are exclusive, and the license rights in the foregoing
clause (b) are non-exclusive.

 

***Certain Confidential Information Omitted

    	30 

     

    

 

10.3            No
Implied Licenses. No license or other right is or shall be created or granted hereunder by implication, estoppel, or otherwise.
All rights are or shall be granted only as expressly provided in this Agreement. All rights not expressly granted by LBS under
this Agreement are reserved by LBS and may not be used by Newsoara or its Affiliates for any purpose. All rights not expressly
granted by Newsoara under this Agreement are reserved by Newsoara and may not be used by LBS or its Affiliates for any purpose.

 

10.4            Ownership
of Intellectual Property.

 

(a)               Inventorship.
Inventorship of any Inventions that, in the case of patentable Inventions, were conceived and reduced to practice, and in the
case of non-patentable Inventions, were made or developed, in the course of performing activities under this Agreement, together
with all rights and interests in any Patents therein, will be determined in accordance with the rules of inventorship under United
States patent laws unless the laws of the Territory provide otherwise with respect to patentable Inventions, and in accordance
with applicable United States federal or state law with respect to non-patentable Inventions, and ownership of such Inventions
shall be as set forth in further detail in Section 10.4(b).

 

(b)              Ownership;
Assignment. LBS shall solely own all right, title and interest in and to all Inventions, discoveries, and data that are
conceived, reduced to practice, made or developed solely by one or more employees or agents of LBS in the course of its
respective activities under this Agreement, and all intellectual property rights appurtenant thereto, all of which shall be
deemed to constitute LBS Patents or LBS Know-How, as applicable, and subject to the license grant to Newsoara in Section
10.1. Newsoara shall solely own all right, title and interest in and to all Inventions, discoveries, and data that are
conceived, reduced to practice, made or developed solely by one or more employees or agents of Newsoara or its Affiliates in
the course of its respective activities under this Agreement including Newsoara’s or its Affiliates’ Development,
Commercialization, use or sale of the Product, and all intellectual property rights appurtenant thereto, all of which shall
be deemed to constitute Newsoara Patents or Newsoara Know-How, as applicable, and subject to the license grant to LBS in
Section 10.2. Inventions, discoveries, and data that are conceived, reduced to practice, made or developed by one or more
employees or agents of LBS and one or more employees or agents of Newsoara or its Affiliates in the course of their
respective activities under this Agreement, and all intellectual property rights appurtenant thereto, shall be owned jointly
by the Parties (“Joint Technology”), and each Party shall have the unrestricted right to practice,
exploit, license and grant its rights to sublicense any Joint Technology without a duty of accounting or an obligation to
seek consent from the other Party, subject to the exclusive rights granted to the other Party (i.e., in Section 10.1 or
Section 10.2, as applicable) and the payment obligations under this Agreement. Except as otherwise set forth herein, the
Parties shall jointly bear all expenses incurred in preparing, filing, prosecuting and maintaining all patent applications
and patents that encompass the Joint Technology (all such patent applications and patents, the “Joint
Patents”). Newsoara, on behalf of itself and its Affiliates, agrees to execute any documents and take any other
actions reasonably requested by LBS (and shall cause its employees and contractors to do likewise), at LBS’s expense,
in order to give effect to the provisions of this Section 10.4(b). LBS, on behalf of itself and its Affiliates, agrees to
execute any documents and take any other actions reasonably requested by Newsoara (and shall cause its employees and
contractors to do likewise), at Newsoara’s expense, in order to give effect to the provisions of this Section
10.4(b).

 

***Certain Confidential Information Omitted

    	31 

     

    

 

(c)              Obligation
to Inform. Newsoara shall disclose to LBS any Invention, discovery, or data described in Section 10.4(b) within [...***...]
after it is invented, discovered, or conceived solely by Newsoara or its Affiliates or jointly by the Parties in sufficient detail
to permit an understanding of the nature of the Inventions by a practitioner reasonably skilled in the relevant technical or scientific
area. LBS shall disclose to Newsoara any Invention, discovery, or data described in Section 10.4(b) within [...***...]
after it is invented, discovered, or conceived solely by LBS or its Affiliates or jointly by the Parties in sufficient detail
to permit an understanding of the nature of the Inventions by a practitioner reasonably skilled in the relevant technical or scientific
area. Newsoara hereby agrees to make its and its Affiliates’ employees, agents and consultants reasonably available to LBS
(or LBS’s authorized attorneys, agents or representatives) at LBS’s expense, to the extent reasonably necessary to
enable LBS to undertake preparation, filing, prosecution and maintenance of the Joint Patents.

 

10.5            Prosecution
of LBS Patents and Joint Patents.

 

(a)              Filing,
Prosecution and Maintenance of LBS Patents and Joint Patents. LBS shall control in its discretion, using patent counsel selected
by LBS (for clarity, all references in this Section 10.5 to “patent counsel” shall include inside patent counsel as
well as outside patent counsel), the preparation, prosecution (including any interferences, reissue proceedings, patent term extensions
and reexaminations) and maintenance of LBS Patents and Joint Patents. The Parties expressly agree that all fees, costs and reasonable
expenses of patent counsel and patent fees or costs (including any maintenance fees or costs) required to be paid in the Territory
that relate to LBS Patents and Joint Patents within the Territory shall be paid by Newsoara and all other fees, costs and reasonable
expenses of patent counsel and patent fees or costs that relate to LBS Patents and Joint Patents shall be paid by LBS. Newsoara
agrees within [...***...] of receiving an invoice for such fees, costs or expenses to telegraphically transfer the full
amount invoiced to LBS at the banking coordinates provided in Section 5.6.

 

(b)              Right
to Consult. During the Term, LBS shall copy Newsoara, or have Newsoara copied, on all material, substantive documents relating
to LBS Patents received by or on behalf of LBS from or to be filed by or on behalf of LBS in any patent office in the Territory,
promptly after receipt from the patent office and at least [...***...] prior to filing with the patent office, respectively,
including without limitation copies of each patent application, official action, response to official action, declaration, information
disclosure statement, request for terminal disclaimer, request for patent term extension, and request for reexamination. Newsoara
shall have the right to comment on such documents, and LBS shall reasonably consider in good faith any reasonable comments timely
received from Newsoara.

 

***Certain Confidential Information Omitted

    	32 

     

    

 

(c)              Abandonment
of LBS Patents and Joint Patents. LBS shall notify Newsoara in the event it for any reason elects to not file, not enter
into a national phase, or abandon the prosecution of a particular Patent within the LBS Patents in the Territory or within
the Joint Patents inside or outside the Territory (other than in favor of a continuing application based on such parent
application). Such notification shall specify the LBS Patent or Joint Patent to be not filed, not entered into a national
phase, or abandoned or LBS Patent or Joint Patent that will no longer be maintained by LBS and shall be given far as
reasonably practicable, and in any event at least [...***...], prior to the date on which such LBS Patent(s) or
Joint Patent(s) will lapse or go abandoned. Newsoara shall then have the option, exercisable upon written notification to
LBS, to assume full responsibility, at its discretion and its cost and expense, for prosecution of the affected LBS Patent(s)
or maintenance of any of the affected LBS Patent(s) in the Territory or for prosecution of the affected Joint Patent(s) or
maintenance of any of the affected Joint Patent(s) inside or outside the Territory, and then LBS shall assign the affected
LBS Patent(s) in the Territory and the Joint Patent(s) inside or outside the Territory to Newsoara.

 

10.6            Prosecution
of Newsoara Patents.

 

(a)               Filing,
Prosecution and Maintenance of Newsoara Patents. Newsoara shall control in its discretion, using patent counsel selected by
Newsoara (for clarity, all references in this Section 10.6 to “patent counsel” shall include inside patent counsel
as well as outside patent counsel), the preparation, prosecution (including any interferences, reissue proceedings, patent term
extensions and reexaminations) and maintenance of Newsoara Patents. The Parties expressly agree that all fees, costs and reasonable
expenses of patent counsel and patent fees or costs (including any maintenance fees or costs) required to be paid in the Territory
that relate to Newsoara Patents within the Territory shall be paid by Newsoara and all other fees, costs and reasonable expenses
of patent counsel and patent fees or costs that relate to LBS Patents and Joint Patents shall be paid by LBS. LBS agrees within
[...***...] of receiving an invoice for such fees, costs or expenses to telegraphically transfer the full amount invoiced
to Newsoara.

 

(b)              Right to Consult. During the Term, Newsoara shall copy LBS, or have LBS copied, on all material, substantive documents
relating to Newsoara Patents received by or on behalf of Newsoara from or to be filed by or on behalf of Newsoara in any patent
office inside or outside the Territory, promptly after receipt from the patent office and at least [...***...] prior
to filing with the patent office, respectively, including without limitation copies of each patent application, official action,
response to official action, declaration, information disclosure statement, request for terminal disclaimer, request for patent
term extension, and request for reexamination. LBS shall have the right to comment on such documents, and Newsoara shall reasonably
consider in good faith any reasonable comments timely received from LBS.

 

(c)              Abandonment
of Newsoara Patents. Newsoara shall notify LBS in the event it for any reason elects to not file, not enter a national
phase, or abandon the prosecution of a particular Patent within the Newsoara Patents outside the Territory (other than in
favor of a continuing application based on such parent application). Such notification shall specify the Newsoara Patent to
be not filed, not entered into a national phase, or abandoned or Newsoara Patent that will no longer be maintained by
Newsoara and shall be given far as reasonably practicable, and in any event at least [...***...], prior to the date
on which such Newsoara Patent(s) will lapse or go abandoned. LBS shall then have the option, exercisable upon written
notification to Newsoara, to assume full responsibility, at its discretion and its cost and expense, for prosecution of the
affected Newsoara Patent(s) or maintenance of any of the affected Newsoara Patent(s), and then Newsoara shall assign the
affected Newsoara Patent(s) outside the Territory to LBS.

 

***Certain Confidential Information Omitted

    	33 

     

    

 

10.7           Enforcement
of Newsoara Patents and Joint Patents Against Infringers outside Territory.

 

(a)              Enforcement
of Newsoara Patents and Joint Patents outside Territory.

 

   (i)                
In the event that Newsoara or LBS become aware of a suspected infringement outside the Territory by a Third Party of any
Newsoara Patent or Joint Patent or any Newsoara Patent or Joint Patent is challenged in any action or proceeding (including a validity
challenge) outside the Territory (any of the foregoing, a “Infringement Outside Territory”), such Party shall
notify the other Party promptly, and following such notification, the Parties shall confer.

 

   (ii)              
As between the Parties, LBS will have the first right, but not the obligation to, bring any action or proceeding, at its
own expense, to enforce or defend Infringement Outside Territory in its own name and entirely under its own direction and control,
subject to the following. Newsoara shall reasonably assist LBS (at LBS’s expense) in any such action or proceeding if so
requested, and shall lend its name to such actions or proceedings if requested by LBS or required by Applicable Laws and Guidelines.
Should LBS determine not to pursue remedies with respect to such Infringement Outside Territory within (a) [...***...]
following the notice of a Product Infringement or (b) [...***...] before the time limit, if any, set forth in the appropriate
laws and regulations for the filing of such actions, whichever comes first, then Newsoara will have the right (but not the obligation),
at its own expense, to pursue remedies against such Third Party with respect to the Infringement Outside Territory. If LBS must
be joined as a party in any legal proceeding for Newsoara to pursue such remedies, LBS agrees to be so joined at Newsoara expense;
provided that a single legal counsel will represent both LBS and Newsoara in such action. The counsel shall be selected
by Newsoara and shall be reasonably acceptable to LBS. In addition, at any time, LBS shall have the right to separately engage
its own legal counsel and to participate in such action at its own expense. No settlement of any such action or proceeding which
restricts the scope, or adversely affects the enforceability, of any Newsoara Patents or Joint Patents shall be entered into by
LBS without the prior written consent of Newsoara, which consent shall not be unreasonably withheld, conditioned or delayed.

 

(b)              Cooperation;
Damages. In the event that either Party exercises the rights conferred in this Section 10.7, the other Party shall assist
and cooperate fully with the Party pursuing such remedies at the expense of the Party pursuing such remedies. Any damages or other
sums recovered in such action, suit or proceeding or in settlement thereof, shall be applied first to all out-of-pocket costs
and expenses incurred by the Parties in connection therewith, including attorneys’ fees. If such recovery is insufficient
to cover all such costs and expenses of both Parties, it shall be shared in proportion to the total of such costs and expenses
incurred by each Party. If after such reimbursement any funds remain from such damages or other sums recovered and Newsoara brought
or defended the action or proceeding under this Section

 

***Certain Confidential Information Omitted

    	34 

     

    

 

10.7, [...***...].
If after such reimbursement any funds remain from such damages or other sums recovered and LBS brought or defended the action or
proceeding under this Section 10.7, [...***...].

 

10.8           Enforcement
of Newsoara Patents, Joint Patents and LBS Patents Against Infringers inside the Territory.

 

(a)              Enforcement of Newsoara Patents, Joint Patents and LBS Patents inside the Territory.

 

   (i)                
In the event that Newsoara or LBS become aware of a suspected infringement inside the Territory by a Third Party of any
Newsoara Patent, Joint Patents or LBS Patents relating to the Product or any Newsoara Patent, Joint Patents or LBS Patents relating
to the Product is challenged in any action or proceeding (including a validity challenge) in the Territory (any of the foregoing,
also a “Infringement Inside Territory”), such Party shall notify the other Party promptly, and following such
notification, the Parties shall confer.

 

   (ii)             
As between the Parties, Newsoara will have the first right, but not the obligation to, bring any action or proceeding, at
its own expense, to enforce or defend, as applicable, any Infringement Inside Territory in its own name and entirely under its
own direction and control, subject to the following. LBS shall reasonably assist Newsoara (at Newsoara’s expense) in any
such action or proceeding if so requested, and shall lend its name to such actions or proceedings if requested by Newsoara or required
by Applicable Laws and Guidelines. Should Newsoara determine not to pursue remedies with respect to such Product Infringement within
(a) [...***...] following the notice of an Infringement Inside Territory or (b) [...***...] before the time
limit, if any, set forth in the appropriate laws and regulations for the filing of such actions, whichever comes first, then LBS
will have the right (but not the obligation), at its own expense, to pursue remedies against such Third Party with respect to the
Infringement Inside Territory. If Newsoara must be joined as a party in any legal proceeding for LBS to pursue such remedies, Newsoara
agrees to be so joined at LBS expense; provided that a single legal counsel will represent both LBS and Newsoara in such action.
The counsel shall be selected by LBS and shall be reasonably acceptable to Newsoara. In addition, at any time, Newsoara shall have
the right to separately engage its own legal counsel and to participate in such action at its own expense. No settlement of any
such action or proceeding which restricts the scope, or adversely affects the enforceability, of any Newsoara Patent, Joint Patents
and LBS Patents shall be entered into by Newsoara without the prior written consent of LBS, which consent shall not be unreasonably
withheld, conditioned or delayed.

 

(b)              Cooperation;
Damages. In the event that either Party exercises the rights conferred in this Section 10.8, the other Party shall assist
and cooperate fully with the Party pursuing such remedies at the expense of the Party pursuing such remedies. Any damages or
other sums recovered in such action, suit or proceeding or in settlement thereof, shall be applied first to all out-of-pocket
costs and expenses incurred by the Parties in connection therewith, including attorneys’ fees. If such recovery is
insufficient to cover all such costs and expenses of both Parties, it shall be shared in proportion to the total of such
costs and expenses incurred by each Party. If after such reimbursement any funds remain from such damages or other sums
recovered and LBS brought or defended the action or proceeding under this Section 10.8, [...***...]. If after such
reimbursement any funds remain from such damages or other sums recovered and Newsoara brought or defended the action or
proceeding under this Section 10.8, [...***...].

 

 

***Certain Confidential Information Omitted

    	35 

     

    

 

10.9            Defense
Against Third Party Claims of Infringement of Patents. If a Third Party asserts that a Patent or other right owned by it is
or has been infringed by the manufacture, use, sale, offer for sale, or import of a Product in the Territory, the Party first
obtaining knowledge of such a claim shall immediately provide the other Party notice of such claim along with the related facts
in reasonable detail. In such event, subject to the indemnity provisions of Article 11 which shall be controlling, the Party subject
to such claim, suit or proceeding shall have the right to defend and control the defense of any such claim, suit or proceeding,
using counsel of its own choice and at its own expense; provided that, if both Parties are subject to such claim, suit
or proceeding, then the Parties shall promptly determine in good faith which Party will defend and control the defense of any
such claim, suit or proceeding, using mutually acceptable counsel; provided, however, that in no event shall the
controlling Party enter into any settlement, or make any admission, that admits or concedes that any Newsoara Patents, Joint Patents
or LBS Patents are invalid or unenforceable, or adversely affects their scope, without the prior written consent of the other
Party, provided, however, that, if the controlling Party presents a bona fide settlement offer to the other Party
that is acceptable to the controlling Party and the other Party rejects such settlement offer, the other Party shall be obligated
to pay [...***...] of the litigation costs (excluding any payment made in lieu of damages, awards or settlement) and
attorney’s fees accruing in such litigation from the date of the controlling Party’s notification to the other Party
of the proposed settlement, provided, however, that, such settlement shall not impair Newsoara’s rights to Develop and Commercialize
the Product in the Territory.

 

10.10          Third
Party Royalty Set-Off. If Newsoara determines in its reasonable discretion that Newsoara is required to pay a royalty to a
Third Party to obtain rights under Patents owned or Controlled by such Third Party that are necessary for Newsoara’s exercise
of its rights under the LBS Patents hereunder in the Territory, then Newsoara shall have the right to credit any compensation
(including up-front payments, milestones, and royalties) due to such Third Party thereunder with respect to Products, against
up to [...***...] of the royalties that are due from Newsoara to LBS under Section 5.3.

 

		11.	INDEMNIFICATION AND INSURANCE

 

11.1            Indemnification by LBS. LBS shall indemnify, defend and hold Newsoara, its Affiliates, and their respective directors,
officers, agents and employees harmless from any and all claims, suits and proceedings by a Third Party (individually and collectively,
“Claims”), and any and all losses, obligations, damages, deficiencies, costs, penalties, liabilities, assessments,
judgments, amounts paid in settlement, fines and expenses (including court costs and reasonable fees and expenses of attorneys)
incurred in the defense or settlement of any Claims (individually and collectively, “Losses”), arising out of:
(a) a breach by LBS of any representations or warranties or covenants set forth herein; or (b) LBS’s gross negligence or
willful misconduct; in each case, except to the extent such Claims and Losses result from the matters contemplated in Section 11.2
below.

 

 

***Certain Confidential Information Omitted

    	36 

     

    

 

11.2            Indemnification
by Newsoara. Subject to Section 10.10, Newsoara shall indemnify, defend and hold LBS, its Affiliates, and their respective
directors, officers, agents and employees harmless from any and all Claims, and any and all Losses, arising out of: (a) a breach
by Newsoara or its Affiliates of any representations or warranties or covenants set forth herein; (b) Newsoara’s or its
Affiliates’ gross negligence or willful misconduct; or (c) Commercialization or Development of the Product in the Territory
by Newsoara, its Affiliates or sublicensees; in each case, except to the extent such Claims and Losses result from infringement
of any Third Party Patents by the Product as it exists as of the Effective Date and as provided by LBS for use in the indication
of gastrointestinal protection, or the matters contemplated in Section 11.1 above.

 

11.3            Contribution.
In the event that both Newsoara and LBS would be liable, respectively, under Sections 11.1 and 11.2 as Indemnitors (defined below)
for a Claim, then each Party’s identification obligation shall be deemed to be a contribution obligation to the other Party
equal to its [...***...].

 

11.4            Conditions
of Indemnification. A Party or any of its Affiliates or their respective directors, officers, agents and employees (the “Indemnitee”)
that intends to claim indemnification under this Article 11 shall promptly notify the other Party (the “Indemnitor”)
of any Claim in respect of which the Indemnitee intends to claim such indemnification reasonably promptly after the Indemnitee
is aware thereof, and the Indemnitor shall assume the defense of such Claim with counsel mutually satisfactory to the Parties;
provided, however, that an Indemnitee shall have the right to retain its own counsel and participate in the defense
thereof at its own cost and expense. The indemnity obligation in this Article 11 shall not apply to amounts paid in settlement
of any Claim if such settlement is effected without the consent of the Indemnitor, which consent shall not be unreasonably withheld,
conditioned or delayed. The failure of an Indemnitee to deliver notice to the Indemnitor within a reasonable time after becoming
aware of any such matter shall relieve the Indemnitor of any liability to the Indemnitee under this Article 11 to the extent prejudicial
to the Indemnitor’s ability to defend such action. The Indemnitee under this Article 11 shall cooperate fully with the Indemnitor
and its legal representatives in the investigation and defense of any matter covered by this indemnification.

 

11.5            Insurance. Each Party shall obtain and maintain insurance reasonably sufficient to cover its potential liability
under this Agreement and shall provide evidence of such insurance to the other Party upon request.

 

11.6            Limitation of Liability. EXCEPT WITH RESPECT TO LIABILITY ARISING FROM BREACH OF ARTICLE 12 HEREIN, ANY INDEMNIFICATION
OBLIGATION UNDERTAKEN AS PART OF THIS AGREEMENT AND ANY MISAPPROPRIATION OR INFRINGEMENT BY A PARTY OF THE OTHER PARTY’S
INTELLECTUAL PROPERTY RIGHTS, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY CONSEQUENTIAL, INCIDENTAL, SPECIAL, INDIRECT,
PUNITIVE, EXEMPLARY OR SIMILAR DAMAGES WHATSOEVER, INCLUDING LOST PROFITS, REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT
OR TORT OR OTHERWISE AND WHETHER OR NOT SUCH DAMAGES WERE FORESEEN OR UNFORESEEN.

 

***Certain Confidential Information Omitted

    	37 

     

    

 

		12.	CONFIDENTIALITY

 

12.1            Nondisclosure
Obligations.

 

(a)              Except
as otherwise provided herein, during the Term and for a period of [...***...] thereafter, each Party (the “Receiving
Party”) shall maintain the Confidential Information of the other Party (the “Disclosing Party”) in
confidence and shall not disclose such Confidential Information to any Third Party or use such Confidential Information except
in the performance of obligations or exercise of rights under this Agreement, including as authorized in this Article 12, or as
specifically agreed in writing by the Disclosing Party.

 

(b)              The
Receiving Party may disclose the Confidential Information of the Disclosing Party (i) to its Affiliates, licensees, permitted
sublicensees, consultants, legal counsel, and outside contractors, to the extent it is reasonably necessary or appropriate to
fulfill its obligations or exercise its rights under this Agreement, in each case on the condition that such entities or persons
agree in writing, prior to the disclosure, to keep the Confidential Information confidential on terms of similar scope to the
terms of this Article 12, or (ii) to government or other Regulatory Authorities to the extent that such disclosure is reasonably
necessary to (x) obtain and maintain Patents and authorizations related to the Product (including Regulatory Approvals and Reimbursement
Approvals) or (y) Manufacture and distribute the Product.

 

(c)              The
confidentiality provisions as set forth herein shall supersede and replace any previous confidentiality and/or non-disclosure
agreements between the Parties with respect to the subject matter hereof and shall be deemed to cover all information disclosed
or obtained by a Party under any previous confidentiality and/or non-disclosure agreements.

 

12.2            Exceptions.
The obligation not to disclose and not to use Confidential Information shall not apply to any part of such Confidential Information
that can be shown by written evidence: (a) is public or becomes publicly available, other than by acts of the Receiving Party
or its Affiliates in contravention of this Agreement; (b) is disclosed to the Receiving Party or its Affiliates by a Third Party,
provided that such Confidential Information was not obtained by such Third Party directly or indirectly from the Disclosing
Party under an obligation to keep such Confidential Information confidential; (c) prior to disclosure under this Agreement, was
already in the possession of the Receiving Party or its Affiliates (unless such Confidential Information was previously disclosed
under any previous confidentiality and/or non-disclosure agreement between the Parties); or (d) is independently developed by
the Receiving Party or its Affiliates without breach of any of the provisions of this Agreement as demonstrated by applicable
contemporaneous, detailed and complete documentation.

 

12.3            Disclosures
Required by Law. In addition, the Receiving Party may make disclosures of Confidential Information of the Disclosing Party
to the extent required to comply with Applicable Laws and Guidelines or a court or administrative order, provided that the Party
who is required to make such disclosure (a) provides the other Party with prior written notice and (b) takes all reasonable and
lawful actions to obtain confidential treatment for such disclosure and, if possible, to minimize the extent of such disclosure.

 

 

***Certain Confidential Information Omitted

    	38 

     

    

 

12.4            Press
Releases; Disclosure of Agreement; Use of Name. The Parties may issue a joint press release announcing the execution of this
Agreement, in such form as shall be mutually agreed upon by the Parties. Except as required by an order from a court or Regulatory
Authority pursuant to Applicable Laws and Guidelines or as required by any self-regulatory organization of which a Party is a
member, neither Party shall use the name of the other Party or disclose any of the terms and conditions of this Agreement in any
other publicity or advertising without the prior written approval of the other Party. Notwithstanding the foregoing, in the event
that either Party seeks to disclose the terms of this Agreement in a filing with any Regulatory Authority pursuant to Applicable
Laws and Guidelines, such Party shall provide prompt written notice to the other Party and cooperate with the other Party to maintain
the confidential treatment of the material terms of this Agreement to the extent reasonably possible. In addition to the foregoing,
a Party may disclose the terms of this Agreement (but not other Confidential Information of the other Party): (a) in confidence
to accountants, banks, investors and other financing sources and their respective advisors, and (b) in confidence to the other
party (and its affiliates, attorneys, accountants, stockholders, investment bankers, advisors or other consultants) in a merger,
acquisition, license or proposed merger, acquisition or license, or the like, provided that such disclosure is only to
the extent reasonably necessary and limited to those entities obliged to keep the information confidential under terms of similar
scope to the terms of this Article 12 and individuals who are bound by an obligation of confidentiality to their respective employers
and who have a need to know such terms in the course of the performance of their duties.

 

No other press releases or publication
of any nature shall be made that references the Product, any Clinical Trials, the results of any Clinical Trials, Development data,
the use of the Product, the safety of the Product, or the efficacy of the Product, without the express written consent of both
LBS and Newsoara, which shall not be unreasonably withheld.

 

12.5            Return
of Confidential Information. Except as reasonably necessary to enjoy any rights under this Agreement that survive expiration
or termination, upon the expiration or termination of this Agreement, the Receiving Party shall return or destroy all copies of
the Disclosing Party’s Confidential Information and certify promptly in writing that it has done so, provided that the Receiving
Party shall in all cases be entitled to retain one (1) copy of the Disclosing Party’s Confidential Information to monitor
compliance with its obligations hereunder.

 

12.6            Disclosure
of Newsoara Development Data. LBS shall have the right to disclose any and all Development data provided by Newsoara to LBS
pursuant to Section 3.5 to the extent necessary for LBS to further Develop the Product.

 

12.7            Disclosure
of LBS Development Data. Newsoara shall have the right to disclose any and all Development data provided by LBS to Newsoara
pursuant to Section 3.5 to the extent necessary for Newsoara to further Develop the Product in the Territory consistent with this
Agreement.

 

		13.	DISPUTE RESOLUTION

 

13.1            Dispute
Resolution. The Parties recognize that disputes as to certain matters may from time to time arise which relate to either
Party’s rights and/or obligations hereunder. The Parties hereby agree that they will attempt in good faith to resolve
any controversy, claim or dispute (collectively, a “Dispute”) arising out of or relating to this Agreement
promptly by negotiations. Any such Dispute which is not settled by the Parties within [...***...] after notice of
such Dispute is given by one Party to the other in writing shall be referred to a senior executive of Newsoara and of LBS who
are authorized to settle such Disputes on behalf of their respective companies (“Senior Executives”) and
who, if possible, are not involved in the Dispute. The Senior Executives will meet for negotiations within
[...***...] of the end of the [...***...] negotiation period referred to above, at a time, place and
manner mutually acceptable to both Senior Executives. If the Dispute has not been resolved within [...***...] after
the end of the [...***...] negotiation period referred to above (which period may be extended by mutual agreement),
then such Dispute shall be subject to Section 13.2 below.

 

 

***Certain Confidential Information Omitted

    	39 

     

    

 

13.2            Arbitration.
Any Dispute arising out of or relating to this Agreement, including the existence, validity, interpretation, performance, breach
or termination thereof or any Dispute regarding non-contractual obligations arising out of or relating to it shall be referred
to and finally resolved by arbitration administered by the Hong Kong International Arbitration Centre (HKIAC) under the UNCITRAL
Arbitration Rules in force when the Notice of Arbitration is submitted, as modified by the HKIAC Procedures for the Administration
of Arbitration under the UNCITRAL Arbitration Rules, if not resolved through the procedures set out in Section 13.1.

 

The place of arbitration shall be Hong
Kong, the number of arbitrators shall be three. Each Party shall nominate an arbitrator, and the Party-nominated arbitrators shall
agree upon the third arbitrator who will be the chair of the arbitration tribunal. The arbitration proceedings shall be conducted
in the English language. The governing law of this Agreement shall be as set forth in Section 14.11 below.

 

		14.	GENERAL PROVISIONS

 

14.1            Notices. Any consent, notice or report required or permitted to be given or made under this Agreement by one of the
Parties hereto to the other shall be in writing, delivered personally or by facsimile (and promptly confirmed by personal delivery
or courier), by a next day delivery service of a nationally recognized overnight courier service or by courier, postage prepaid
(where applicable), addressed to such other Party at its address indicated below, or to such other address as the addressee shall
have last furnished in writing to the addressor in accordance with this Section 14.1 and shall be effective upon receipt by the
address:

 

If to Newsoara:

 

Hengyi

[...***...]

 

 

***Certain Confidential Information Omitted

    	40 

     

    

 

If to LBS:

 

Leading BioSciences

[...***...]

 

14.2            Entire
Agreement Amendment. This Agreement contains the entire understanding of the Parties with respect to the subject matter hereof
and supersedes all prior or contemporaneous oral or written agreements of the Parties with respect to the subject matter hereof
and any confidentiality and/or nondisclosure agreements and term sheets entered by the Parties prior to the Effective Date. This
Agreement may be amended, or any term hereof modified, only by a written instrument duly executed by both Parties.

 

14.3            English
Language. This Agreement has been prepared in the English language and the English language shall control its interpretation.
All notices and reports required or permitted to be given hereunder, and all written or other communications between the Parties
regarding this Agreement or pursuant to this Agreement, shall be in the English language.

 

14.4            Force
Majeure. Newsoara and LBS shall not be liable for loss, damage, detention or delay resulting from any cause whatsoever beyond
its reasonable control or resulting from a force majeure, including, without limitation, war, flood, lightning, drought, earthquake,
fire, volcanic eruption, landslide, hurricane, cyclone, typhoon, tornado, explosion, civil disturbance, act of God or the public
enemy, terrorist act, civil or military action, insurrection, epidemic, famine or plague, shipwreck, action of a court or public
authority, strike, work-to-rule action, go-slow or similar labor difficulty, embargo or delay due to such causes, and delivery
dates shall be extended to the extent of any delays resulting from the foregoing or similar causes. The Party so affected shall
give prompt written notice to the other Party of such cause, and shall take whatever reasonable steps are necessary to relieve
the effect of such cause as rapidly as reasonably possible. If the circumstances of force majeure affect the other Party’s
performance herein or delays performance for more than one hundred eighty (180) days, then the other Party may terminate this
Agreement upon fifteen (15) days advance written notice with such termination to be effective as of the first day of such force
majeure event.

 

14.5            Waiver.
No waiver by either Party of any default, right or remedy shall be effective unless in writing, nor shall any such waiver operate
as a waiver of any other or of the same default, right or remedy, respectively, on a future occasion.

 

14.6            Assignment.
This Agreement may not be assigned by either Party without the prior written consent of the other Party, which consent shall
not be unreasonably withheld, conditioned or delayed, provided, however, that either Party may assign this
Agreement without the consent of the other Party to an Affiliate or to a successor in connection with the merger,
consolidation or sale of all or substantially all of its assets or that portion of its business to which this Agreement
relates, provided, however, this Agreement shall be assigned from Biolead Medical Technology Limited to FIJV
automatically upon establishment of FIJV. As a condition to the effectiveness of any assignment of this Agreement, any
permitted assignee shall assume and be bound by all obligations of its assignor under this Agreement. Notwithstanding
anything to the contrary in this Agreement, the rights to any Patent or Know-How Controlled by an entity that is a permitted
assignee, transferee or successor of a Party under this Agreement, or an entity who becomes an Affiliate of a Party during
the Term (or any Affiliate of any such entity), whether such rights in any Patent or Know-How were developed prior to or
after the transaction that was the basis for such assignment, transfer or succession or resulted in such entity becoming an
Affiliate, shall be automatically excluded from the rights licensed to the other Party under this Agreement.

 

***Certain Confidential Information Omitted

    	41 

     

    

 

14.7            Binding
Effect. This Agreement shall inure to the benefit of and be binding on the Parties and their successors and permitted assigns.

 

14.8            Severability.
Each Party hereby agrees that it does not intend, by its execution hereof, to violate any public policy, statutory or common laws,
rules, regulations, treaty or decision of any government agency or executive body thereof of any country. Should one (1) or more
provisions of this Agreement be or become invalid, the Parties hereto shall substitute, by mutual consent, valid provisions for
such invalid provisions which valid provisions in their economic and other effects are sufficiently similar to the invalid provisions
that it can be reasonably assumed that the Parties would have entered into this Agreement with such valid provisions. In case
such valid provisions cannot be agreed upon, the invalidity of one (1) or several provisions of this Agreement shall not affect
the validity of this Agreement as a whole or the validity of any portions hereof, unless the invalid provisions are of such essential
importance to this Agreement that it is to be reasonably assumed that the Parties would not have entered into this Agreement without
the invalid provisions.

 

14.9           
Headings; Interpretation. The headings used in this Agreement are for convenience only and are not a part of this
Agreement.

 

14.10          Independent
Parties. This Agreement shall not be deemed to create any partnership, joint venture, or agency relationship between the Parties.
Each Party shall act hereunder as an independent contractor and shall have not right to act for or bind the other Party in any
way.

 

14.11          Governing
Law. It is the Parties’ intent that the governing law of this Agreement shall be the law of the state of New York, United
States of America, without reference to its conflicts of laws provisions. Both Parties acknowledge and agree that the U.N. convention
on the International Sale of Goods shall not apply to this Agreement.

 

14.12          Counterparts.
The Parties may execute this Agreement in multiple counterparts, each of which constitutes an original as against the Party that
signed it, and all of which together constitute one agreement. The signatures of both Parties need not appear on the same counterpart.
The delivery of signed counterparts by facsimile or email transmission that includes a copy of the sending Party’s signature
is as effective as signing and delivering the counterpart in person.

 

[Signature Page Follows]

 

 

    	42 

     

    

 

IN WITNESS WHEREOF, the Parties hereto
have each caused this Agreement to be duly executed as of the Effective Date.

 

	 	LEADING BIOSCIENCES, INC.
	 	 
	 	 
	 	By:	 /s/ Thomas M. Hallam
	 	 	Name:	Thomas M. Hallam, PhD
	 	 	Title:	Chief Executive Officer
	 	 
	 	 
	 	BIOLEAD MEDICAL TECHNOLOGY LIMITED
	 	 
	 	 
	 	By:	 /s/ LI Yuan Nian
	 	 	Name:	LI Yuan Nian (Benny), PhD
	 	 	Title:	CEO

 

 

 

 

 

 

 

 

 

    	43 

     

    

 

Appendix A

 

Patents

 

[...***...]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

***Certain Confidential Information Omitted

    	44 

     

    

Appendix B

 

Product

 

[...***...]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

***Certain Confidential Information Omitted

    	45 

     

    

CONFIRMATORY AGREEMENT AND AMENDMENT

 

This confirmatory
agreement and amendment (this “Confirmatory Agreement”) is made and entered into as of the 27th day of November, 2018
(the “Effective Date”) by and among Leading BioSciences, Inc., a corporation organized under the laws of Delaware
having its office at 5800 Armada Drive, Ste. 210, Carlsbad, CA 92008 (“LBS”), Biolead Medical Technology Limited,
a limited company organized under the laws of the Hong Kong (“Biolead”) and Newsoara Biopharma Co., Ltd., a company
organized under the laws of China, having a business address at Room 302-22, Building No. 1, 800 Na Xian Road, Shanghai Free Trade
Zone, China  (“Newsoara”). LBS, Biolead, and Newsoara are sometimes referred to herein individually as a “Party”
and collectively as the “Parties”.

 

WHEREAS, LBS and Biolead
entered into a co-development and distribution agreement having an Effective Date of 27 February 2018 (the “Previous Agreement”).

 

WHEREAS, Biolead intended
to establish a foreign invested joint venture (“FIJV” or “Newsoara”) in the People’s Republic of
China to take over the rights granted by LBS and corresponding obligations and liabilities under the Previous Agreement.

 

WHEREAS, Newsoara had
not been established as of the Effective Date of the Previous Agreement.

 

WHEREAS, Newsoara was
established on 8 March 2018.

 

NOW, THEREFORE, in
consideration of the mutual covenants hereinafter expressed and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties agree as follows:

 

1.            DEFINITIONS

 

In this Confirmatory
Agreement, capitalized terms which are not otherwise defined herein shall have the meaning given in the Previous Agreement, unless
the context otherwise requires. In addition:

 

“Effective
Date” shall have the meaning set forth in Preamble.

 

“Newsoara”
shall have the meaning set forth in Preamble and, as used herein, is interchangeable with the term “FIJV”.

 

“Party”
and “Parties” shall have the meaning set forth in Preamble.

 

“Confirmatory
Agreement” shall have the meaning set forth in Preamble.

 

“Previous
Agreement” shall have the meaning set forth in Preamble.

 

2.            RIGHTS,
OBLIGATIONS AND LIABILITIES

 

The Parties
confirm and agree that the Previous Agreement has been assigned from Biolead to Newsoara automatically upon establishment of
Newsoara according to Section 14.6 of the Previous Agreement. The Parties further confirm and agree that (a) Newsoara has
been assigned the rights granted by LBS and assumed all obligations and liabilities under the Previous Agreement and (b)
Newsoara now replaces Biolead as the party of the Previous Agreement.

 

 

    	1 

     

    

 

2.            UPFRONT
PAYMENT

 

The Parties agree to
amend Section 5.1 of the Previous Agreement by replacing it with the following section:

 

5.1 Upfront Payment.
Newsoara shall pay to LBS an “Upfront Payment” of One Million United States Dollars (US $1,000,000) on or before [...***...].
Unless otherwise set forth in this Agreement, such payments/deposits shall not be refundable or returnable (and shall be paid even
if this Agreement terminates), nor shall the payments be creditable against other payments.

 

3.            GENERAL
PROVISIONS

 

This Confirmatory Agreement
is governed by the laws of the State of New York, United States of America, without reference to its conflicts of laws provisions.
The U.N. convention on the International Sale of Goods shall not apply to this Agreement.

 

Any disputes, claims,
or proceedings between the Parties relating to the validity, construction or performance of this Confirmatory Agreement shall be
subject to the non-exclusive jurisdiction of Hong Kong International Arbitration Centre (HKIAC) under the UNCITRAL Arbitration
Rules as current on the date of the commencement of the arbitration. The place of arbitration will be Hong Kong, the arbitration
proceedings will be conducted in the English language, and the governing law will be that set forth herein.

 

The clarifications
of, and amendments to, the Previous Agreement under this Confirmatory Agreement shall be considered as having effect as of the
date of the Previous Agreement.

 

The terms and conditions
of this Confirmatory Agreement represent the entire agreement between the Parties relating to the assignment and novation of the
Previous Agreement, and except as otherwise supplemented or amended by this Confirmatory Agreement, all other terms of the Previous
Agreement shall remain in full force and effect. If there is any discrepancy between this Confirmatory Agreement and the Previous
Agreement, this Confirmatory Agreement shall prevail.

 

No modification or
amendment of this Confirmatory Agreement will be effective unless in writing, specifically referring hereto, and signed by all
Parties.

 

[Signature Page Follows]

 

 

***Certain Confidential Information Omitted

    	2 

     

    

 

IN WITNESS WHEREOF, the Parties hereto
have each caused this Confirmatory Agreement to be duly executed as of the Effective Date.

 

	 	LEADING BIOSCIENCES, INC.
	 	 
	 	 
	 	By:	/s/ Thomas M. Hallam
	 	 	Name:	Thomas M. Hallam, Ph.D.
	 	 	Title:	Chief Executive Officer
	 	 
	 	 
	 	BIOLEAD MEDICAL TECHNOLOGY LIMITED
	 	 
	 	 
	 	By:	 /s/ LI Yuan Nian
	 	 	Name:	LI Yuan Nian (Benny), Ph.D.
	 	 	Title:	 
	 	 
	 	 
	 	NEWSOARA BIOPHARMA CO., LTD.,
	 	 
	 	 
	 	By:	/s/ LI Yuan Nian
	 	 	Name:	LI Yuan Nian (Benny), Ph.D.
	 	 	Title:	 

 

 

 

3

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