Document:

Exhibit

Exhibit 10.1

MIDWESTONE FINANCIAL GROUP, INC.
EMPLOYMENT AGREEMENT
This Employment Agreement (“Agreement”) is made and entered into as of June 25, 2018 (the “Effective Date”), by and between MidWestOne Financial Group, Inc. (the “Company”) and Gary L. Sims (“Executive,” and together with the Company, the “Parties”).
RECITALS
A.    The Company desires to employ Executive pursuant to the terms of this Agreement.
B.    The Executive desires to be employed by the Company pursuant to the terms of this Agreement.
C.    The Parties have made commitments to each other on a variety of important issues concerning Executive’s employment, including the performance that will be expected of Executive, the compensation Executive will be paid, how long and under what circumstances Executive will remain employed and the financial details relating to any decision that either the Company or Executive may make to terminate this Agreement.
AGREEMENTS
In consideration of the foregoing and the mutual promises and covenants of the Parties set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby expressly covenant and agree as follows:
1.    Employment Period. The Company shall continue to employ Executive during the Employment Period and Executive shall continue to remain in the employ of the Company and to provide services during the Employment Period in accordance with the terms of this Agreement. The “Employment Period” shall be the period beginning on the Effective Date and ending on December 31, 2020 unless sooner terminated as provided herein. The Employment Period shall automatically be extended for one (1) additional year beginning on January 1, 2020 and on each January 1 thereafter unless either Party notifies the other Party, by written notice delivered no later than ninety (90) days prior to such January 1, that the Employment Period shall not be extended for an additional year. Notwithstanding any provision of this Agreement to the contrary, if a Change in Control occurs during the Employment Period, this Agreement shall remain in effect for the two (2)-year period following the Change in Control and shall then terminate.
2.    Duties. During the Employment Period, Executive shall devote Executive’s full business time, energies and talents to serving as Senior Vice President and Chief Credit Officer of the Company, at the direction of the Company’s President and Chief Executive Officer (the “CEO”). Executive shall have such duties and responsibilities as may be assigned to Executive from time to time by the CEO, which duties and responsibilities shall be commensurate with Executive’s position, shall perform all duties assigned to Executive faithfully and efficiently, subject to the direction of the CEO and shall have such authorities and powers as are inherent to the undertakings applicable to Executive’s position and necessary to carry out the responsibilities and duties required of Executive hereunder. Executive shall perform the duties required by this Agreement at the Company’s primary location in Iowa City, Iowa unless the nature of such duties requires otherwise. Notwithstanding the foregoing provisions of this Section 2, during the Employment Period, 

Executive may devote reasonable time to activities other than those required under this Agreement, including activities of a charitable, educational, religious or similar nature (including professional associations) to the extent such activities do not, in the reasonable judgment of the CEO, inhibit, prohibit, interfere with or conflict with Executive’s duties under this Agreement or conflict in any material way with the business of the Company or an Affiliate; provided, however, that Executive shall not serve on the board of directors of any business (other than the Company or an Affiliate) or hold any other position with any business without receiving the prior written consent of the CEO.
3.    Compensation and Benefits. Subject to the terms of this Agreement, during the Employment Period, while Executive is employed by the Company, the Company shall compensate Executive for Executive’s services as follows:
(a)    Executive shall be compensated at an annual rate of two hundred thirty thousand dollars ($230,000.00) (the “Annual Base Salary”), which shall be payable in accordance with the normal payroll practices of the Company then in effect. Beginning on January 1, 2019 and on each anniversary of such date, Executive’s Annual Base Salary shall be reviewed, and may be adjusted, by the Company’s Board of Directors.
(b)    Executive shall be eligible to receive performance-based annual incentive bonuses (each, the “Incentive Bonus”) from the Company for each fiscal year ending during the Employment Period. Any such Incentive Bonus shall be paid to Executive within thirty (30) days of the completion of the respective fiscal year audit by the Company’s auditor, but in no event later than two and one-half (21⁄2) months after the close of each such fiscal year. Executive’s annual Incentive Bonus opportunity shall be equal to thirty-three and one-third percent (33-1/3%) of his Annual Base Salary; provided, however, that this amount may be reduced in an amount that will not give rise to a Good Reason under this Agreement.
(c)    During the Employment Period, Executive shall be eligible to participate, subject to the terms thereof, in all incentive plans and programs of the Company, including such cash and deferred bonus programs and equity incentive plans as may be in effect from time to time with respect to senior executives employed by the Company, on as favorable a basis as other similarly situated senior executives. During the Employment Period, Executive and Executive’s dependents, as the case may be, shall be eligible to participate, subject to the terms thereof, in all pension and similar benefit plans (including qualified, non-qualified and supplemental plans) and all medical, dental, vision, disability, group and executive life, accidental death and travel accident insurance and other similar welfare benefit plans and programs of the Company as may be in effect from time to time with respect to senior executives employed by the Company, on as favorable a basis as other similarly situated senior executives.
(d)    Executive shall be entitled to accrue paid time off (“PTO”) at a rate of no less than thirty (30) days of PTO per calendar year, subject to the Company’s PTO programs and policies as may be in effect during the Employment Period.
(e)    Executive shall be eligible to be reimbursed by the Company, on terms that are substantially similar to those that apply to other similarly situated senior executives employed by the Company, for reasonable out-of-pocket expenses for entertainment, travel, meals, lodging and similar items that are consistent with the Company’s expense reimbursement policy and actually incurred by Executive in the promotion of the Company’s business.
4.    Rights upon Termination. Executive’s right to benefits, if any, for periods after the Termination Date shall be determined in accordance with this Section 4:

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(a)    Minimum Benefits. If the Termination Date occurs during the Employment Period for any reason, Executive shall be entitled to the Minimum Benefits in addition to any other benefits to which Executive may be entitled under the following provisions of this Section 4 or the express terms of any employee benefit plan or as required by law. Any benefits to be provided to Executive pursuant to this Section 4(a) shall be provided within thirty (30) days after the Termination Date; provided, however, that any benefits, incentives or awards payable as described in Section 4(f) shall be made in accordance with the provisions of the applicable plan, program or arrangement. Except as may otherwise be provided expressly to the contrary in this Agreement or as otherwise provided by law, nothing in this Agreement shall be construed as requiring Executive to be treated as employed by the Company following the Termination Date for purposes of any employee benefit plan or arrangement in which Executive may participate at such time.
(b)    Termination for Cause, Death, Disability or Voluntary Resignation. If the Termination Date occurs during the Employment Period and is a result of a Termination for Cause, Executive’s death or Disability, or termination by Executive other than for Good Reason, then, other than the Minimum Benefits, Executive shall have no right to benefits under this Agreement (and the Company shall have no obligation to provide any such benefits) for periods after the Termination Date.
(c)    Termination other than for Cause or Termination for Good Reason. If Executive’s employment with the Company is subject to a Termination other than during a Covered Period, then, in addition to Minimum Benefits, the Company shall provide Executive the following benefits:
(i)    Commencing on the first Company payroll date that occurs on or following the sixtieth (60th) day following the Termination Date, Executive shall receive the Severance Amount (less any amount described in Section 4(c)(ii)), with such amount to be paid in twelve (12) substantially equal monthly installments (subject to the remaining provisions of this paragraph), with each successive payment being due on the next monthly payroll date following the first installment, provided that any such monthly installments that would have been paid in the sixty (60)-day period following the Termination Date but for the Release requirement in Section 5 shall be paid on the first Company payroll date that occurs on or following the sixtieth (60th) day following the Termination Date, and the number of remaining substantially equal monthly installments to be made shall be reduced from twelve (12) by any such “catch-up” payments that are made.
(ii)    To the extent any portion of the Severance Amount exceeds the “safe harbor” amount described in Treasury Regulation §1.409A-1(b)(9)(iii)(A), Executive shall receive such portion of the Severance Amount that exceeds the “safe harbor” amount in a single lump sum payment payable on the first Company payroll date that occurs on or following the sixtieth (60th) day following the Termination Date.
(iii)    Executive (and Executive’s dependents, as may be applicable) shall be entitled to the benefits described in Section 4(e).
(d)    Termination upon a Change in Control. If Executive’s employment with the Company is subject to a Termination within a Covered Period, then, in addition to Minimum Benefits, the Company shall provide Executive the following benefits:
(i)    On the sixtieth (60th) day following the Termination Date, the Company shall pay Executive a lump sum payment in an amount equal to the Severance Amount.

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(ii)    Executive (and Executive’s dependents, as may be applicable) shall be entitled to the benefits provided in Section 4(e).
(e)    Medical, Dental and Vision Benefits. If Executive’s employment with the Company is subject to a Termination, then to the extent that Executive or any of Executive’s dependents may be covered under the terms of any medical, dental or vision plans of the Company (or any Affiliate) for active employees immediately prior to the Termination, then, for as long as Executive is eligible for and elects coverage under the health care continuation rules of COBRA, the Company shall provide Executive and those dependents with coverage equivalent to the coverage received while Executive was employed with the Company, with Executive required to pay the same amount as Executive would pay if Executive continued in employment with the Company during such period; provided, however, that such coverage shall be provided only to the extent that it does not result in any additional tax or other penalty being imposed on the Company or any Affiliate. The coverages under this Section 4(e) may be procured directly by the Company (or any Affiliate, if appropriate) apart from and outside of the terms of the respective plans, provided that Executive and Executive’s dependents comply with all of the terms of the substitute medical, dental or vision plans, and provided, further, that the cost to the Company shall not exceed the cost for continued COBRA coverage. In the event Executive or any of Executive’s dependents is or becomes eligible for coverage under the terms of any other medical and/or dental and/or vision plan of a subsequent employer with plan benefits that are comparable to Company (or any Affiliate) plan benefits, the Company’s obligations under this Section 4(e) shall cease with respect to the eligible Executive and/or dependents. Executive and Executive’s dependents must notify the Company (or any Affiliate) of any subsequent employment and provide information regarding medical and/or dental and/or vision coverage available.
(f)    Other Benefits.
(i)    Executive’s rights following a termination of employment with the Company and its Affiliates for any reason with respect to any benefits, incentives or awards provided to Executive pursuant to the terms of any plan, program or arrangement sponsored or maintained by the Company or an Affiliate, whether tax-qualified or not, which are not specifically addressed herein, shall be subject to the terms of such plan, program or arrangement, and this Agreement shall have no effect upon such terms except as specifically provided herein.
(ii)    Except as specifically provided herein, the Company shall have no further obligations to Executive under this Agreement following Executive’s termination of employment for any reason.
(g)    Removal from any Boards and Positions. Upon Executive’s termination of employment for any reason under this Agreement, Executive shall be deemed to resign (i) if a member, from the Board and board of directors of any Affiliate and any other board to which Executive has been appointed or nominated by or on behalf of the Company, (ii) from each position with the Company or any Affiliate, including as an officer of the Company or any of its Affiliates and (iii) as a fiduciary of any employee benefit plan of the Company.
5.    Release. Notwithstanding any provision of this Agreement to the contrary, no payments or benefits shall be owed to Executive under Section 4(c), 4(d) or 4(e) (except for the Minimum Benefits) unless Executive executes and delivers to the Company a Release within forty-five (45) days following the Termination Date, and any applicable revocation period has expired prior to the sixtieth (60th) day following the Termination Date.

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6.    Excise Tax Limitation.
(a)    It is the intention of the Parties that no portion of any payment under this Agreement, or payments to or for the benefit of Executive under any other agreement or plan, be deemed to be an Excess Parachute Payment. The present value of payments to or for the benefit of Executive in the nature of compensation, receipt of which is contingent on a Change in Control, and to which Code Section 280G applies (in the aggregate “Total Payments”) shall not exceed an amount equal to one dollar ($1.00) less than the maximum amount that the Company may pay without loss of deduction under Code Section 280G(a). Present value for purposes of this Agreement shall be calculated in accordance with Code Section 280G(d)(4). Within one hundred twenty (120) days following the earlier of (i) the giving of the notice of termination or (ii) the giving of notice by the Company to Executive of its belief that there is a payment or benefit due Executive that will result in an Excess Parachute Payment, the Parties, at the Company’s expense, shall obtain the opinion of an Independent Advisor, which opinion need not be unqualified, which sets forth (A) Executive’s applicable “base amount” (as defined under Code Section 280G), (B) the present value of Total Payments and (C) the amount and present value of any Excess Parachute Payments. In the event that such opinion determines that there would be an Excess Parachute Payment, the payment hereunder or any other payment determined by such Independent Advisor to be includable in Total Payments shall be modified, reduced or eliminated, in accordance with Code Section 409A, as specified by Executive in writing delivered to the Company within ninety (90) days of Executive’s receipt of such opinions or, if Executive fails to so notify the Company, then as the Company shall reasonably determine, so that under the bases of calculation set forth in such opinions there will be no Excess Parachute Payment. The provisions of this Section 6, including the calculations, notices and opinion provided for herein, shall be based upon the conclusive presumption that (A) the compensation and benefits provided for in Section 3 and (B) any other compensation earned by Executive pursuant to the Company’s compensation programs that would have been paid in any event, are reasonable compensation for services rendered, even though the timing of such payment may be triggered by a Change in Control.
(b)    The Parties hereby recognize that the restrictive covenants under Section 7 have value that is equivalent in amount to some or all of the Severance Amount (and potentially other termination benefits) and that such value shall be recognized in the Code Section 280G calculations contemplated hereunder. The Independent Advisor shall make the determination of the actual fair market value of the restrictive covenants under Section 7 at the time of the Change in Control.
7.    Restrictive Covenants.
(a)    Confidential Information. 
(i)    Executive acknowledges that, during the course of Executive’s employment with the Company, Executive may produce and have access to confidential and/or proprietary, non‐public information concerning the Company or its Affiliates, including marketing materials, financial and other information concerning customers and prospective customers, customer lists, records, data, trade secrets, proprietary business information, pricing and profitability information and policies, strategic planning, commitments, plans, procedures, litigation, pending litigation and other information not generally available to the public (collectively, “Confidential Information”). Executive shall not directly or indirectly use, disclose, copy or make lists of Confidential Information for the benefit of anyone other than the Company, either during or after Executive’s employment with the Company, except to the extent that such information is or thereafter becomes lawfully available from public sources, or such disclosure is authorized in writing by the Company, required by law or any competent administrative agency or judicial authority, or otherwise as reasonably necessary or appropriate in connection with the performance by Executive of Executive’s 

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duties hereunder. If Executive receives a subpoena or other court order or is otherwise required by law to provide information to a governmental authority or other person concerning the activities of the Company or any of its Affiliates, or Executive’s activities in connection with the business of the Company or any of its Affiliates, Executive shall immediately notify the Company of such subpoena, court order or other requirement and deliver forthwith to the Company a copy thereof and any attachments and non-privileged correspondence related thereto. Executive shall take reasonable precautions to protect against the inadvertent disclosure of Confidential Information. Executive shall abide by the Company’s reasonable policies, as in effect from time to time, respecting avoidance of interests conflicting with those of the Company and its Affiliates. In this regard, Executive shall not directly or indirectly render services to any person or entity where Executive’s service would involve the use or disclosure of Confidential Information. Executive shall not use any Confidential Information to guide Executive in searching publications or other publicly available information, selecting a series of items of knowledge from unconnected sources and fitting them together to claim that Executive did not violate any agreements set forth in this Agreement. 
(ii)    Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (A) is made (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and (2) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Accordingly, Executive has the right to disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law. Executive also has the right to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure. Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b). Nothing in this Agreement shall be construed to authorize, or limit liability for, an act that is otherwise prohibited by law, such as the unlawful access of material by unauthorized means.
(iii)    Nothing contained in this Section 7(a) shall limit Executive’s ability to file a charge or complaint with any governmental, administrative or judicial agency (each, an “Agency”) pursuant to any applicable whistleblower statute or program (each, a “Whistleblower Program”). Executive acknowledges that this Section 7(a) does not limit (A) his ability to communicate, in connection with a charge or complaint pursuant to any Whistleblower Program with any Agency or otherwise participate in any investigation or proceeding that may be conducted by such Agency, including providing documents or other information, without notice to the Company, or (B) his right to receive an award for information provided to such Agency pursuant to any Whistleblower Program.
(b)    Documents and Property. 
(i)    All records, files, documents and other materials or copies thereof relating to the business of the Company or its Affiliates that Executive prepares, receives or uses shall be and remain the sole property of the Company and, other than in connection with the performance by Executive of Executive’s duties hereunder, shall not be removed from the premises of the Company or any of its Affiliates without the Company’s prior written consent, and shall be promptly returned to the Company upon Executive’s termination of employment for any reason, together with all copies (including copies or recordings in electronic form), abstracts, notes or reproductions of any kind made from or about the records, files, documents or other materials.
(ii)    Executive acknowledges that Executive’s access to and permission to use the Company’s and any Affiliate’s computer systems, networks and equipment, and all Company and Affiliate 

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information contained therein, is restricted to legitimate business purposes on behalf of the Company. Any other access to or use of such systems, network, equipment and information is without authorization and is prohibited except that Executive may use a Company-provided computer for reasonable personal use in accordance with the Company’s Technology Use Policy as in effect from time to time. The restrictions contained in this Section 7(a) extend to any personal computers or other electronic devices of Executive that are used for business purposes relating to the Company or any Affiliate. Executive shall not transfer any Company or Affiliate information to any personal computer or other electronic device that is not otherwise used for any business purpose relating to the Company. Upon the termination of Executive’s employment with the Company for any reason, Executive’s authorization to access and permission to use the Company’s and any Affiliate’s computer systems, networks and equipment, and any Company and Affiliate information contained therein, shall cease.
(c)    Non-Competition and Non-Solicitation. The Parties have jointly reviewed the operations of the Company and have agreed that the primary service area of the Company’s lending and deposit taking functions in which Executive will actively participate extends to an area that encompasses a fifty (50)-mile radius from each banking or other office location of the Company and its Affiliates where Executive has provided services to the Company during the twenty-four (24) month period immediately preceding the date on which Executive’s employment terminates (the “Restrictive Area”). Therefore, as an essential ingredient of and in consideration of this Agreement and Executive’s employment with the Company, Executive, during Executive’s employment with the Company and for a period of fifteen (15) months immediately following the termination of Executive’s employment for any reason (the “Restrictive Period”), whether such termination occurs during the Employment Period or thereafter, shall not directly or indirectly do any of the following (all of which are collectively referred to in this Agreement as the “Restrictive Covenant”):
(i)    Engage or invest in, own, manage, operate, finance, control, participate in the ownership, management, operation or control of, be employed by, associated with or in any manner connected with, serve as a director, officer or consultant to, lend Executive’s name or any similar name to, lend Executive’s credit to or render services or advice to, in each case in the capacity that Executive provided services to the Company or any Affiliate, any person, firm, partnership, corporation or trust that owns, operates or is in the process of forming a Financial Institution with an office located, or to be located at an address identified in a filing with any regulatory authority, within the Restrictive Area; provided, however, that the ownership by Executive of shares of the capital stock of any Financial Institution, which shares are listed on a securities exchange or quoted on the National Association of Securities Dealers Automated Quotation System and which do not represent more than five (5) percent (5%) of the institution’s outstanding capital stock, shall not violate any terms of this Agreement;
(ii)    Either for Executive or any Financial Institution: (A) induce or attempt to induce any employee of the Company or any of its Affiliates with whom Executive had significant contact to leave the employ of the Company or any of its Affiliates; (B) in any way interfere with the relationship between the Company or any of its Affiliates and any employee of the Company or any of its Affiliates with whom Executive had significant contact; or (C) induce or attempt to induce any customer, supplier, licensee or business relation of the Company or any of its Affiliates with whom Executive had significant contact to cease doing business with the Company or any of its Affiliates or in any way interfere with the relationship between the Company or any of its Affiliates and their respective customers, suppliers, licensees or business relations with whom Executive had significant contact;
(iii)    Either for Executive or any Financial Institution, solicit the business of any person or entity known to Executive to be a customer of the Company or any of its Affiliates, where Executive 

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had significant contact with such person or entity, with respect to products, activities or services that compete in whole or in part with the products, activities or services of the Company or any of its Affiliates; or
(iv)    Serve as the agent, broker or representative of, or otherwise assist, any person or entity in obtaining services or products from any Financial Institution within the Restrictive Area, with respect to products, activities or services that Executive devoted time to on behalf of the Company or any of its Affiliates and that compete in whole or in part with the products, activities or services of the Company or any of its Affiliates.
(d)    Works Made for Hire Provisions. The Parties acknowledge that all work performed by Executive for the Company or any of its Affiliates shall be deemed a “work made for hire.” The Company shall at all times own and have exclusive right, title and interest in and to all Confidential Information and Inventions, and the Company shall retain the exclusive right to license, sell, transfer and otherwise use and dispose of the same. Any and all enhancements of the technology of the Company or any of its Affiliates that are developed by Executive shall be the exclusive property of the Company. Executive hereby assigns to the Company any right, title and interest in and to all Inventions that Executive may have, by law or equity, without additional consideration of any kind whatsoever from the Company or any of its Affiliates. Executive shall execute and deliver any instruments or documents and do all other things (including the giving of testimony) requested by the Company (both during and after the termination of Executive’s employment with the Company) in order to vest more fully in the Company or any of its Affiliates all ownership rights in the Inventions (including obtaining patent, copyright or trademark protection therefor in the United States and/or foreign countries).
(e)    Remedies for Breach of Restrictive Covenant. Executive has reviewed the provisions of this Agreement with legal counsel, or has been given adequate opportunity to seek such counsel, and Executive acknowledges that the covenants contained in this Section 7 are reasonable with respect to their duration, geographical area and scope. Executive further acknowledges that the restrictions contained in this Section 7 are reasonable and necessary for the protection of the legitimate business interests of the Company, that they create no undue hardships, that any violation of these restrictions would cause substantial injury to the Company and such interests, and that such restrictions were a material inducement to the Company to enter into this Agreement. In the event of any violation or threatened violation of these restrictions, the Company, in addition to and not in limitation of, any other rights, remedies or damages available to the Company under this Agreement or otherwise at law or in equity, shall be entitled to preliminary and permanent injunctive relief to prevent or restrain any such violation by Executive and any and all persons directly or indirectly acting for or with Executive, as the case may be. If Executive violates the Restrictive Covenant and the Company brings legal action for injunctive or other relief, the Company shall not, as a result of the time involved in obtaining such relief, be deprived of the benefit of the full period of the Restrictive Covenant. Accordingly, the Restrictive Covenant shall be deemed to have the duration specified herein computed from the date the relief is granted but reduced by the time between the period when the Restrictive Period began to run and the date of the first violation of the Restrictive Covenant by Executive.
(f)    Other Agreements. In the event of the existence of another agreement between the Parties that (a) is in effect during the Restrictive Period, and (b) contains restrictive covenants that conflict with any of the provisions of this Section 7, then the more restrictive of such provisions from the two (2) agreements shall control for the period during which both agreements would otherwise be in effect.
8.    No Set-Off; No Mitigation. Except as provided herein, the Company’s obligation to provide benefits under this Agreement and otherwise to perform its obligations hereunder shall not be affected by any circumstances, including any set-off, counterclaim, recoupment, defense or other right the Company 

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may have against Executive or others. In no event shall Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Executive under any of the provisions of this Agreement, and such amounts shall not be reduced whether or not Executive obtains other employment.
9.    Notices. Notices and all other communications under this Agreement shall be in writing and shall be deemed given when mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:
If to the Company:
MidWestOne Financial Group, Inc.
Attention: MidWestOne Bank Senior Vice President 
                 and Director of Human Resources
102 South Clinton Street
Iowa City, Iowa 52240
If to Executive: Executive’s address on file with the Company
or to such other address as either Party may furnish to the other in writing, except that notices of changes of address shall be effective only upon receipt.
10.    Applicable Law. All questions concerning the construction, validity and interpretation of this Agreement and the performance of the obligations imposed by this Agreement shall be governed by the internal laws of the State of Iowa applicable to agreements made and wholly to be performed in such state without regard to conflicts of law provisions of any jurisdiction, and any court action commenced to enforce this Agreement shall have as its sole and exclusive venue the County of Johnson, Iowa.
11.    Entire Agreement. This Agreement constitutes the entire agreement between the Parties concerning the subject matter hereof, and supersedes all prior negotiations, undertakings, agreements and arrangements with respect thereto, whether written or oral. If a court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of that provision shall not affect the validity or enforceability of any other provision of this Agreement and all other provisions shall remain in full force and effect. The various covenants and provisions of this Agreement are intended to be severable and to constitute independent and distinct binding obligations. Without limiting the generality of the foregoing, if the scope of any covenant contained in this Agreement is too broad to permit enforcement to its full extent, such covenant shall be enforced to the maximum extent permitted by law, and such scope may be judicially modified accordingly.
12.    Withholding of Taxes. The Company may withhold from any benefits payable under this Agreement all federal, state, city and other taxes as may be required pursuant to any law, governmental regulation or ruling.
13.    No Assignment. Executive’s rights to receive benefits under this Agreement shall not be assignable or transferable whether by pledge, creation of a security interest or otherwise, other than a transfer by will or by the laws of descent or distribution. In the event of any attempted assignment or transfer contrary to this Section 13, the Company shall have no liability to pay any amount so attempted to be assigned or transferred. This Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

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14.    Successors. This Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns. The Company shall not effect the sale or other disposition of all or substantially all of its assets unless either (a) the person or entity acquiring the assets, or a substantial portion of the assets, expressly assumes by an instrument in writing all duties and obligations of the Company under this Agreement, or (b) the Company provides, through the establishment of a separate reserve, for the payment in full of all amounts that are or may reasonably be expected to become payable to Executive under this Agreement.
15.    Legal Fees. All reasonable legal fees and related expenses (including the costs of experts, evidence and counsel) paid or incurred by Executive pursuant to any dispute or question of interpretation relating to this Agreement shall be paid or reimbursed by the Company if Executive is successful on the merits pursuant to a legal judgment or arbitration.
16.    Amendment. Except as specifically provided in Section 17 hereof, this Agreement may not be amended or modified except by written agreement signed by the Parties.
17.    Code Section 409A.
(a)    To the extent any provision of this Agreement or action by the Company would subject Executive to liability for interest or additional taxes under Code Section 409A, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Company. It is intended that this Agreement will comply with Code Section 409A, and this Agreement shall be administered accordingly and interpreted and construed on a basis consistent with such intent. Notwithstanding any provision of this Agreement to the contrary, no termination or similar payments or benefits shall be payable hereunder on account of Executive’s termination of employment unless such termination constitutes a “separation from service” within the meaning of Code Section 409A. For purposes of Code Section 409A, all installment payments of deferred compensation made hereunder, or pursuant to another plan or arrangement, shall be deemed to be separate payments. To the extent any reimbursements or in-kind benefit payments under this Agreement are subject to Code Section 409A, such reimbursements and in-kind benefit payments shall be made in accordance with Treasury Regulation Section 1.409A-3(i)(1)(iv). This Agreement may be amended to the extent necessary (including retroactively) by the Company to avoid the application of taxes or interest under Code Section 409A, while maintaining to the maximum extent practicable the original intent of this Agreement. This Section 17 shall not be construed as a guarantee of any particular tax effect for Executive’s benefits under this Agreement and the Company does not guarantee that any such benefits will satisfy the provisions of Code Section 409A or any other provision of the Code.
(b)    Notwithstanding any provision of this Agreement to the contrary, if Executive is determined to be a Specified Employee as of the Termination Date, then, to the extent required pursuant to Code Section 409A, payments due under this Agreement that are deemed to be deferred compensation shall be subject to a six (6)-month delay following the Termination Date; and all delayed payments shall be accumulated and paid in a lump-sum payment as of the first day of the seventh month following the Termination Date (or, if earlier, as of Executive’s death), with all such delayed payments being credited with interest (compounded monthly) for this period of delay equal to the prime rate in effect on the first day of such six (6)-month period. Any portion of the benefits hereunder that were not otherwise due to be paid during the six (6)-month period following the Termination Date shall be paid to Executive in accordance with the payment schedule established herein.
18.    Deferral of Nondeductible Compensation. If Executive’s aggregate compensation (including benefits that are deemed remuneration for purposes of Code Section 162(m)) from the Company 

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and the Affiliates for any calendar year exceeds the maximum amount of compensation deductible by the Company or any Affiliate in any calendar year under Code Section 162(m) (for purposes of this paragraph, the “maximum allowable amount”), then any such amount in excess of the maximum allowable amount shall be mandatorily deferred with interest thereon at four percent (4%) per annum to a calendar year such that the amount to be paid to Executive in such calendar year, including deferred amounts and interest thereon, does not exceed the maximum allowable amount. Subject to the foregoing, deferred amounts, including interest thereon, shall be payable at the earliest time permissible, in accordance with Code Section 409A.
19.    Construction. In this Agreement, unless otherwise stated, the following uses apply: (a) references to a statute shall refer to the statute and any amendments and any successor statutes, and to all regulations promulgated under or implementing the statute, as amended, or its successors, as in effect at the relevant time; (b) in computing periods from a specified date to a later specified date, the words “from” and “commencing on” (and the like) mean “from and including, “ and the words “to,” “until” and “ending on” (and the like) mean “to, but excluding”; (c) references to a governmental or quasi-governmental agency, authority or instrumentality shall also refer to a regulatory body that succeeds to the functions of the agency, authority or instrumentality; (d) indications of time of day shall be based upon the time applicable to the location of the principal headquarters of the Company; (e) the words “include,” “includes” and “including” means “include, without limitation,” “includes, without limitation” and “including, without limitation,” respectively; (f) all references to preambles, recitals, sections and exhibits are to preambles, recitals, sections and exhibits in or to this Agreement unless otherwise specified; (g) the words “hereof,” “herein,” “hereto,” “hereby,” “hereunder,” and other words of similar import refer to this Agreement as a whole (including exhibits); (h) any reference to a document or set of documents, and the rights and obligations of the parties under any such documents, means such document or documents as amended from time to time, and any and all modifications, extensions, renewals, substitutions or replacements thereof; (i) all words used shall be construed to be of such gender or number as the circumstances and context require; (j) the captions and headings of preambles, recitals, sections and exhibits appearing in or attached to this Agreement have been inserted solely for convenience of reference and shall not be considered a part of this Agreement, nor shall any of them affect the meaning or interpretation of this Agreement or any of its provisions; and (k) all accounting terms not specifically defined herein shall be construed in accordance with GAAP.
20.    Definitions. As used in this Agreement, the terms defined in this Section 20 have the meanings set forth below.
(a)    “1934 Act” means the Securities Exchange Act of 1934.
(b)    “Affiliate” means each company, corporation, partnership, Financial Institution or other entity that, directly or indirectly, is controlled by, controls, or is under common control with, the Company, where “control” means (i) the ownership of fifty-one percent (51%) or more of the Voting Securities or other voting or equity interests of any corporation, partnership, joint venture or other business entity or (ii) the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such corporation, partnership, joint venture or other business entity.
(c)    “Agreement” has the meaning set forth in the preamble hereto.
(d)    “Annual Base Salary” has the meaning set forth in Section 3(a).
(e)    “Base Compensation” means the amount equal to the sum of (i) the greater of Executive’s then-current Annual Base Salary or Executive’s Annual Base Salary as of the date one (1) day 

11

prior to the Change in Control, and (ii) the amount of the Incentive Bonus paid (or payable) for the most recently completed fiscal year of the Company.
(f)    “Board” means the board of directors of the Company.
(g)    “Change in Control” means:
(i)    the consummation of the acquisition by any “person” (as such term is defined in Section 13(d) or 14(d) of the 1934 Act) of “beneficial ownership” (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of fifty percent (50%) or more of the combined voting power of the then outstanding Voting Securities of the Company; or
(ii)    the individuals who, as of the Effective Date, are members of the Board cease for any reason to constitute a majority of the Board, unless the election, or nomination for election by the shareholders, of any new director was approved by a vote of a majority of the Board, and such new director shall, for purposes of this Agreement, be considered as a member of the Board; or
(iii)    the consummation by the Company of: (A) a merger or consolidation if the shareholders immediately before such merger or consolidation do not, as a result of such merger or consolidation, own, directly or indirectly, more than fifty percent (50%) of the combined voting power of the then outstanding Voting Securities of the entity resulting from such merger or consolidation in substantially the same proportion as their ownership of the combined voting power of the Voting Securities of the Company outstanding immediately before such merger or consolidation; or (B) a complete liquidation or dissolution or an agreement for the sale or other disposition of all or substantially all of the assets of the Company.
Notwithstanding any provision in this definition to the contrary, a Change in Control shall not be deemed to occur solely because fifty percent (50%) or more of the combined voting power of the then outstanding securities of the Company are acquired by (A) a trustee or other fiduciary holding securities under one (1) or more employee benefit plans maintained for employees of the Company or an Affiliate or (B) any corporation that, immediately prior to such acquisition, is owned directly or indirectly by the shareholders in the same proportion as their ownership of stock immediately prior to such acquisition.
Further notwithstanding any provision in this definition to the contrary, in the event that any amount or benefit under this Agreement constitutes deferred compensation and the settlement of or distribution of such amount or benefit is to be triggered by a Change in Control, then such settlement or distribution shall be subject to the event constituting the Change in Control also constituting a “change in control event” under Code Section 409A.
(h)    “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985.
(i)    “Code” means the Internal Revenue Code of 1986.
(j)    “Company” has the meaning set forth in the preamble hereto.
(k)    “Confidential Information” has the meaning set forth in Section 7(a).
(l)    “Covered Period” means the period beginning six (6) months prior to a Change in Control and ending twenty-four (24) months after the Change in Control. 

12

(m)    “Disability” means that (i) Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) Executive is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident or health plan covering employees of the Company.
(n)    “Effective Date” has the meaning set forth in the preamble hereto.
(o)    “Employment Period” has the meaning set forth in Section 1.
(p)    “Excess Parachute Payment” has the meaning set forth in Code Section 280G.
(q)    “Executive” has the meaning set forth in the preamble hereto.
(r)    “Financial Institution” means a bank, savings bank, savings and loan association, credit union or similar financial institution.
(s)    “Good Reason” means the occurrence of any one (1) of the following events, unless Executive agrees in writing that such event shall not constitute Good Reason:
(i)    an adverse change in the nature, scope or status of Executive’s position, authorities or duties from those in effect in accordance with Section 2 immediately following the Effective Date, or if applicable and greater, immediately prior to the Covered Period.
(ii)    a reduction of ten percent (10%) or more in Executive’s Annual Base Salary or Incentive Bonus opportunity (each as measured as of the Effective Date), or a material reduction in Executive’s aggregate benefits or other compensation plans as in effect immediately following the Effective Date, or if applicable and greater, immediately prior to the Covered Period;
(iii)    relocation of Executive’s primary place of employment by more than twenty-five (25) miles from Executive’s primary place of employment immediately following the Effective Date, or if applicable, prior to the Covered Period, or a requirement that Executive engage in travel that is materially greater than prior to the Covered Period;
(iv)    failure by an acquirer to assume this Agreement at the time of a Change in Control; or
(v)    a material breach by the Company of this Agreement.
Notwithstanding any provision in this definition to the contrary, prior to Executive’s Termination for Good Reason, Executive must give the Company written notice of the existence of any condition set forth in clause (i) – (v) immediately above within ninety (90) days of its initial existence and the Company shall have thirty (30) days from the date of such notice in which to cure the condition giving rise to Good Reason, if curable. If, during such thirty (30)-day period, the Company cures the condition giving rise to Good Reason, the condition shall not constitute Good Reason. Further notwithstanding any provision in this definition to the contrary, in order to constitute a Termination for Good Reason, such Termination must occur within twenty-four (24) months of the initial existence of the applicable condition.

13

(t)    “Incentive Bonus” has the meaning set forth in Section 3(b).
(u)    “Independent Advisor” means an independent, nationally recognized accounting firm approved by the Parties, where such approval shall not be unreasonably withheld by either Party.
(v)    “Inventions” means all systems, procedures, techniques, manuals, databases, plans, lists, inventions, trade secrets, copyrights, patents, trademarks, discoveries, innovations, concepts, ideas and software conceived, compiled or developed by Executive in the course of Executive’s employment with the Company or any of its Affiliates and/or comprised, in whole or part, of Confidential Information. Notwithstanding the foregoing sentence, Inventions shall not include: (i) any inventions independently developed by Executive and not derived, in whole or part, from any Confidential Information or (ii) any invention made by Executive prior to Executive’s exposure to any Confidential Information.
(w)    “Minimum Benefits” means, as applicable, the following:
(i)    Executive’s earned but unpaid Annual Base Salary for the period ending on the Termination Date;
(ii)    Executive’s earned but unpaid Incentive Bonus, if any, for any completed fiscal year preceding the Termination Date;
(iii)    Executive’s accrued but unpaid PTO for the period ending on the Termination Date; 
(iv)    Executive’s unreimbursed business expenses and all other items earned and owed to Executive by the Company through and including the Termination Date; and
(v)    the benefits, incentives and awards described in Section 4(f).
(x)    “Parties” has the meaning set forth in the preamble hereto.
(y)     “Release” means a general release and waiver substantially in the form attached hereto as Exhibit A.
(z)    “Restrictive Area” has the meaning set forth in Section 7(c).
(aa)    “Restrictive Covenant” has the meaning set forth in Section 7(c).
(bb)    “Restrictive Period” has the meaning set forth in Section 7(c).
(cc)    “Severance Amount” means
(i)    for any Termination other than during a Covered Period, an amount equal to one hundred percent (100%) of Executive’s then-current Annual Base Salary as of the respective Termination; or
(ii)    for a Termination during a Covered Period, an amount equal to two hundred percent (200%) of Executive’s Base Compensation as of the respective Termination.

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(dd)    “Specified Employee” means any person who is a “key employee” (as defined in Code Section 416(i) without regard to paragraph (5) thereof), as determined by the Company based upon the twelve (12)-month period ending on each December 31st (such twelve (12)-month period is referred to below as the “identification period”). If Executive is determined to be a key employee, Executive shall be treated as a Specified Employee for purposes of this Agreement during the twelve (12)-month period that begins on the April 1 following the close of the identification period. For purposes of determining whether Executive is a key employee, “compensation” means Executive’s W-2 compensation as reported by the Company for a particular calendar year.
(ee)    “Termination” means termination of Executive’s employment with the Company during the Employment Period either:
(i)    by the Company, other than a Termination for Cause or a termination as a result of Executive’s death or Disability; or
(ii)    by Executive for Good Reason.
(ff)    “Termination Date” means the date of termination of Executive’s employment with the Company.
(gg)    “Termination for Cause” means only a termination of Executive’s employment with the Company as a result of:
(i)    Executive’s willful and continuing failure, that is not remedied within twenty (20) days after receipt of written notice of such failure from the Company, to perform Executive’s obligations hereunder; 
(ii)    Executive’s conviction of, or the pleading of nolo contendere to, a crime of embezzlement or fraud or a felony under the laws of the United States or any state thereof;
(iii)    Executive’s breach of fiduciary responsibility; or
(iv)    an act of dishonesty by Executive that is materially injurious to the Company.
Any determination of a Termination for Cause under this Agreement shall be made by resolution adopted by at least a two-thirds (2/3) vote of the Board at a meeting called and held for that purpose. Executive shall be provided with reasonable notice of such meeting and shall be given the opportunity to be heard, with the presence of counsel, prior to such vote being taken by the Board.
(hh)    “Total Payments” has the meaning set forth in Section 6(a).
(ii)    “Voting Securities” means any securities that ordinarily possess the power to vote in the election of directors without the happening of any precondition or contingency.
21.    Survival. The provisions of Sections 5 through 21 shall survive the termination of this Agreement.
[Signature page follows]

15

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
	
					
	MidWestOne Financial Group, Inc.
	 
	Gary L. Sims

	By:
	/s/ CHARLES N. FUNK
	 
	/s/ GARY L. SIMS

	 
	 
	 
	 
	(Signature)

	 
	 
	 
	 
	 

	Name:
	Charles N. Funk
	 
	 

	 
	 
	 
	 
	(Address)

	 
	 
	 
	 
	 

	Its:
	President & CEO
	 
	 

	 
	 
	 
	 
	(Address)

16

Exhibit 10.1

EXHIBIT A
RELEASE AND WAIVER OF CLAIMS
This Release and Waiver of Claims (“Agreement”) is made and entered into by and between MidWestOne Financial Group, Inc. (the ”Company”), and [______________] (“Executive,” and together with the Company, the “Parties”).
RECITALS
A.    The Parties desire to settle fully and amicably all issues between them, including any issues arising out of Executive’s employment with the Company and the termination of that employment.
B.    Executive and the Company are parties to that certain Employment Agreement, made and entered into [_______________], as amended (the “Employment Agreement”).
AGREEMENTS
For and in consideration of the mutual promises contained herein, and for other good and sufficient consideration, the receipt of which is hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:
1.    Termination of Employment. Executive’s employment with the Company shall be terminated effective as of the close of business on [_______________] (the “Termination Date”). 
2.    Compensation and Benefits. Subject to the terms of this Agreement, the Company shall compensate Executive under this Agreement as follows (collectively, the “Severance Payments”):
(a)    Severance Amount. [_______________].
(b)    Accrued Salary and Paid Time Off. Executive shall be entitled to a lump sum payment in an amount equal to Executive’s earned but unpaid annual base salary and accrued but unused paid time off for the period ending on the Termination Date, with such payment to be made on the first payroll date following the Termination Date.
(c)    COBRA Benefits. Executive and Executive’s qualified beneficiaries, as applicable, shall be entitled to continuation of group health coverage following the Termination Date under the Company’s group health plan, to the extent required under the Consolidated Omnibus Budget Reconciliation Act of 1986, with Executive required to pay the same amount as Executive would pay if Executive continued in employment with the Company during such period as described in Section 4(e) of the Employment Agreement.
(d)    Executive Acknowledgement. Executive acknowledges that, subject to fulfillment of all obligations provided for herein, Executive has been fully compensated by the Company, including under all applicable laws, and that nothing further is owed to Executive with 

A-1

respect to wages, bonuses, severance, other compensation, or benefits. Executive further acknowledges that the Severance Payments (other than (b) and (c) immediately above) are consideration for Executive’s promises contained in this Agreement, and that the Severance Payments are above and beyond any wages, bonuses, severance, other compensation, or benefits to which Executive is entitled from the Company under the terms of Executive’s employment or under any other contract or law that Executive would be entitled to absent execution of this Agreement.
(e)    Withholding. The Severance Payments shall be subject to all taxes and other payroll deductions required by law.
3.    Termination of Benefits. Except as provided in Section 2 above or as may be required by law, Executive’s participation in all employee benefit (pension and welfare) and compensation plans of the Company shall cease as of the Termination Date. Nothing contained herein shall limit or otherwise impair Executive’s right to receive pension or similar benefit payments that are vested as of the Termination Date under any applicable tax-qualified pension or other plans, pursuant to the terms of the applicable plan.
4.    Release of Claims and Waiver of Rights. Executive, on Executive’s own behalf and that of Executive’s heirs, executors, attorneys, administrators, successors, and assigns, fully and forever releases and discharges the Company, its predecessors, successors, parents, subsidiaries, affiliates, and assigns, and its and their directors, officers, trustees, employees, agents, and shareholders, both in their individual and official capacities, and the current and former trustees and administrators of each retirement and other benefit plan applicable to the employees and former employees of the Company, both in their official and individual capacities (the “Releasees”), from all liability, claims, demands, actions, and causes of action Executive now has, may have had, or may ever have, whether currently known or unknown, relating to acts or omissions as of or prior to Executive’s execution of this Agreement (the “Release and Waiver”), including liability, claims, demands, actions, and causes of action: 
(a)    Relating to Executive’s employment or other association with the Company, or the termination of such employment;
(b)    Relating to wages, bonuses, other compensation, or benefits;
(c)    Relating to any employment or change in control contract;
(d)    Relating to any employment law, including
		
	(i)
	The United States and State of Iowa Constitutions, 

		
	(ii)
	The Iowa Civil Rights Act of 1965,

		
	(iii)
	The Iowa Wage Payment Collection Law,

		
	(iv)
	The Civil Rights Act of 1964,

		
	(v)
	The Civil Rights Act of 1991,

		
	(vi)
	The Equal Pay Act,

		
	(vii)
	The Employee Retirement Income Security Act of 1974,

A-2

		
	(viii)
	The Age Discrimination in Employment Act (the “ADEA”),

		
	(ix)
	The Older Workers Benefit Protection Act,

		
	(x)
	The Worker Adjustment and Retraining Notification Act,

		
	(xi)
	The Americans with Disabilities Act,

		
	(xii)
	The Family and Medical Leave Act,

		
	(xiii)
	The Occupational Safety and Health Act,

		
	(xiv)
	The Fair Labor Standards Act,

		
	(xv)
	The National Labor Relations Act,

		
	(xvi)
	The Genetic Information Nondiscrimination Act,

		
	(xvii)
	The Rehabilitation Act,

		
	(xviii)
	The Fair Credit Reporting Act,

		
	(xix)
	Executive Order 11246,

		
	(xx)
	Executive Order 11141, and

		
	(xxi)
	Each other federal, state, and local statute, ordinance, and regulation relating to employment;

(e)    Relating to any right of payment for disability;
(f)    Relating to any statutory or contractual right of payment; and
(g)    For relief on the basis of any alleged tort or breach of contract under the common law of the State of Iowa or any other state, including defamation, intentional or negligent infliction of emotional distress, breach of the covenant of good faith and fair dealing, promissory estoppel, and negligence.
Executive acknowledges that statutes exist that render null and void releases and waivers of any claims, rights, demands, liabilities, actions, and causes of action that are unknown to the releasing or waiving party at the time of execution of the release and waiver. Executive waives, surrenders, and shall forego any protection to which Executive would otherwise be entitled by virtue of the existence of any such statutes in any jurisdiction, including the State of Iowa.
5.    Exclusions from General Release.
(a)    Excluded from the Release and Waiver are any claims or rights arising pursuant to this Agreement and any claims or rights that cannot be waived by law, as well as Executive’s right to file a charge with an administrative agency or participate in any agency investigation, including with the Equal Employment Opportunity Commission. Executive is, however, waiving the right to recover any money in connection with a charge or investigation and the right to recover any money in connection with a charge filed by any other individual or by the Equal Employment Opportunity Commission or any other federal or state agency, except where such waivers are prohibited by law.
(b)    Notwithstanding the foregoing, nothing contained in this Section 5 shall limit Executive’s ability to file a charge or complaint with any governmental, administrative or judicial agency (each, an “Agency”) pursuant to any applicable whistleblower statute or program (each, a “Whistleblower Program”). Executive acknowledges that this Section 5 does not limit (A) his ability to communicate, in connection with a charge or complaint pursuant to any Whistleblower 

A-3

Program with any Agency or otherwise participate in any investigation or proceeding that may be conducted by such Agency, including providing documents or other information, without notice to the Company, or (B) his right to receive an award for information provided to such Agency pursuant to any Whistleblower Program.
6.    Covenant Not to Sue.
(a)    A “covenant not to sue” is a legal term that means Executive promises not to file a lawsuit in court. It is different from the Release and Waiver. Besides waiving and releasing the claims covered by Section 4 above, Executive shall never sue the Releasees in any forum for any reason covered by the Release and Waiver. Notwithstanding this covenant not to sue, Executive may bring a claim against the Company to enforce this Agreement or to challenge the validity of this Agreement under the ADEA. If Executive sues any of the Releasees in violation of this Agreement, Executive shall be liable to them for their reasonable attorneys’ fees and costs (including the costs of experts, evidence, and counsel) and other litigation costs incurred in defending against Executive’s suit. In addition, if Executive sues any of the Releasees in violation of this Agreement, the Company can require Executive to return all but a sum of $100 of the Severance Payments, which sum is, by itself, adequate consideration for the promises and covenants in this Agreement. In that event, the Company shall have no obligation to make any further Severance Payments.
(b)    If Executive has previously filed any lawsuit against any of the Releasees, Executive shall immediately take all necessary steps and execute all necessary documents to withdraw or dismiss such lawsuit to the extent Executive’s agreement to withdraw, dismiss, or not file a lawsuit would not be a violation of any applicable law or regulation.
7.    Mutual Non-Disparagement. At all times following the signing of this Agreement, neither Party shall engage in any vilification of the other, and each Party shall refrain from making any false, negative, critical or disparaging statements, implied or expressed, concerning the other, including management style, methods of doing business, the quality of products and services, role in the community, or treatment of employees. Executive acknowledges that the only persons whose statements may be attributed to the Company for purposes of this covenant not to make disparaging statements shall be each member of the Company’s Board of Directors and the Company’s Chief Executive Officer. The Parties shall do nothing that would damage the other’s business reputation or good will.
8.    Restrictive Covenants. Section 7 of the Employment Agreement (entitled “Restrictive Covenants”), shall continue in full force and effect as if fully restated herein.
9.    No Admissions. The Company denies that any of the Releasees have taken any improper action against Executive, and this Agreement shall not be admissible in any proceeding as evidence of improper action by any of the Releasees. 
10.    Confidentiality of Agreement. Executive shall keep the existence and the terms of this Agreement confidential, except for Executive’s immediate family members and Executive’s legal and tax advisors in connection with services related hereto and except as may be required by law or in connection with the preparation of tax returns.

A-4

11.    Non-Waiver. The Company’s waiver of a breach of this Agreement by Executive shall not be construed or operate as a waiver of any subsequent breach by Executive of the same or of any other provision of this Agreement.
12.    Governing Law. This Agreement shall be governed by and construed under the laws of the State of Iowa, without regard to principles of conflict of laws (whether in the State of Iowa or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Iowa.
13.    Entire Agreement. This Agreement sets forth the entire agreement of the Parties regarding the subject matter hereof, and shall be final and binding as to all claims that have been or could have been advanced on behalf of Executive pursuant to any claim arising out of or related in any way to Executive’s employment with the Company and the termination of that employment. This Agreement may not be amended, modified, altered, or changed except by express written consent of the Parties.
14.    Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.
15.    Successors. This Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns.
16.    Enforcement. The provisions of this Agreement shall be regarded as divisible and separable and if any provision should be declared invalid or unenforceable by a court of competent jurisdiction, the validity and enforceability of the remaining provisions shall not be affected thereby. If the scope of any restriction or requirement contained in this Agreement is too broad to permit enforcement of such restriction or requirement to its full extent, then such restriction or requirement shall be enforced to the maximum extent permitted by law, and Executive hereby consents that any court of competent jurisdiction may so modify such scope in any proceeding brought to enforce such restriction or requirement. In addition, Executive stipulates that breach by Executive of restrictions and requirements under this Agreement will cause irreparable damage to the Releasees in the case of Executive’s breach and that the Company would not have entered into this Agreement without Executive binding Executive to these restrictions and requirements. In the event of Executive’s breach of this Agreement, in addition to any other remedies the Company may have, and without bond and without prejudice to any other rights and remedies that the Company may have for Executive’s breach of this Agreement, the Company shall be relieved of any obligation to provide Severance Payments and shall be entitled to an injunction to prevent or restrain any such violation by Executive and all persons directly or indirectly acting for or with Executive.
17.    Construction. In this Agreement, unless otherwise stated, the following uses apply: (a) references to a statute or law refer to the statute or law and any amendments and any successor statutes or laws, and to all regulations promulgated under or implementing the statute or law, as amended, or its successors, as in effect at the relevant time; (b) in computing periods from a specified date to a later specified date, the words “from” and “commencing on” (and the like) mean “from and including, “ and the words “to,” “until,” and “ending on” (and the like) mean “to, and including”; 

A-5

(c) references to a governmental or quasi-governmental agency, authority, or instrumentality also refer to a regulatory body that succeeds to the functions of the agency, authority, or instrumentality; (d) the words “include,” “includes,” and “including” (and the like) mean “include, without limitation,” “includes, without limitation,” and “including, without limitation,” (and the like) respectively; (e) the words “hereof,” “herein,” “hereto,” “hereby,” (and the like) refer to this Agreement as a whole; (f) any reference to a document or set of documents, and the rights and obligations of the parties under any such documents, means such document or documents as amended from time to time, and all modifications, extensions, renewals, substitutions, or replacements thereof; (g) all words used shall be construed to be of such gender or number as the circumstances and context require; and (h) the captions and headings of preambles, recitals, sections, and exhibits appearing in or attached to this Agreement have been inserted solely for convenience of reference and shall not be considered a part of this Agreement, nor shall any of them affect the meaning or interpretation of this Agreement or any of its provisions.
18.    Future Cooperation. In connection with any and all claims, disputes, or negotiations, or governmental, internal, or other investigations, lawsuits, or administrative proceedings (the “Legal Matters”) involving any of the Releasees (collectively, the “Disputing Parties” and, individually, each a “Disputing Party”), Executive shall make Executive reasonably available, upon reasonable notice from the Company and without the necessity of subpoena, to provide information and documents, provide declarations and statements regarding a Disputing Party, meet with attorneys and other representatives of a Disputing Party, prepare for and give depositions and testimony, and otherwise cooperate in the investigation, defense, and prosecution of any and all such Legal Matters, as may, in the good faith and judgment of the Company, be reasonably requested. The Company shall consult with Executive and make reasonable efforts to schedule such assistance so as not to materially disrupt Executive’s business and personal affairs. The Company shall reimburse all reasonable expenses incurred by Executive in connection with such assistance, including travel, meals, rental car, and hotel expenses, if any; provided such expenses are approved in advance by the Company and are documented in a manner consistent with expense reporting policies of the Company as may be in effect from time to time.
19.    Representations by Executive. Executive acknowledges each of the following:
(a)    Executive is aware that this Agreement includes a release of all known and unknown claims.
(b)    Executive is legally competent to execute this Agreement and Executive has not relied on any statements or explanations made by the Company or its attorneys not otherwise set forth herein.
(c)    Any modifications, material or otherwise, made to this Agreement shall not restart or affect in any manner the original 21-day consideration period.
(d)    Executive has been offered at least 21 days to consider this Agreement.

A-6

(e)    Executive has been afforded the opportunity to be advised by legal counsel regarding the terms of this Agreement, including the Release and Waiver, and to negotiate such terms.
(f)    Executive, without coercion of any kind, freely, knowingly, and voluntarily enters into this Agreement.
(g)    Executive has the right to rescind the Release and Waiver by written notice to the Company within seven (7) calendar days after Executive has signed this Agreement, and the Release and Waiver shall not become effective or enforceable until seven (7) calendar days after Executive has signed this Agreement, as evidenced by the date set forth below Executive’s signature on the signature page hereto. Any such rescission must be in writing and delivered by hand, or sent by U.S. Mail within such seven (7)-day period, to the attention of [_______________]. If delivered by U.S. Mail, the rescission must be: (i) postmarked within the seven (7)-day period and (ii) sent by certified mail, return receipt requested.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of dates set forth below their respective signatures below.
 	
						
	MidWestOne Financial Group, Inc.
	 
	Executive

	By:
	 
	 
	 
	 

	 
	(Name)
	 
	 
	(Name)

	 
	(Title)
	 
	 
	 

	 
	 
	 
	 
	 
	 

	Date:
	 
	 
	Date:
	 

	 
	 
	 
	 
	 
	 

A-7Execution
Copy

 

LICENSE
AGREEMENT

 

This
LICENSE AGREEMENT (the “Agreement”) is made as of May 1, 2018 (the “Effective Date”) by
and between Cytocom Inc., a Delaware corporation having its principal place of business at 37 North Orange Ave Suite 607 Orlando
Florida 32801 United States (“Cytocom”), and Immune Therapeutics Inc., a company registered under the laws
of Florida, and having a registered office at 37 North Orange Ave Suite 607 Orlando Florida 32801 (“Licensee”).
This Agreement amends and restates in its entirety the license agreement between the parties, dated September 30, 2014.

 

R
E C I T A L S

 

WHEREAS,
Cytocom wishes to facilitate access to its proprietary compounds, immediate release low dose naltrexone (“Lodonal”)
and Met-Enkelphline (“MENK”), as a monotherapy and adjunctive therapy in the treatment of patients with immune
dysfunction or immune dysregulation indication, including but not limited to HIV/AID, Crohn’s Disease, Fibromyalgia, Infectious
Disease, Malaria, and Cancer, in low income countries, as identified in this Agreement;

 

WHEREAS,
to accomplish this goal, Cytocom wishes to grant certain exclusive licenses to Licensee with respect to the manufacture and sale
of Lodonal and MENK and products incorporating Lodonal and MENK in the Territory and

 

WHEREAS,
Licensee wishes to obtain such exclusive licenses to facilitate patient access to Product in the Territory, all as more fully
described in this Agreement below.

 

NOW,
THEREFORE, in consideration of the mutual covenants set forth herein and other good and valuable considerations, the receipt of
which is hereby acknowledged, the parties hereto mutually agree as follows:

 

1.
Definitions

 

1.1
“Active Pharmaceutical Ingredient” or “API” means, individually and collectively, the following
active pharmaceutical ingredients: naltrexone (“NTX”) and MENK, the structures of each such compounds are disclosed
in the Patents.

 

1.2
“Affiliate” means, with respect to a party to this Agreement, any corporation, limited liability company or
other business entity controlling, controlled by or under common control with such party, for so long as such relationship exists.
For the purposes of this definition, control means: (a) to possess, directly or indirectly, the power to direct affirmatively
the management and policies of such corporation, limited liability company or other business entity, whether through ownership
of voting securities or by contract relating to voting rights or corporate governance; or (b) ownership of more than fifty percent
(50%) of the voting stock in such corporation, limited liability company or other business entity (or such lesser percent as may
be the maximum that may be owned pursuant to applicable law of the country of incorporation or domicile), as applicable.

 

1.3
“Confidential Information” shall have the meaning set forth in Section 11.1.

 

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1.4
“Combination Products” means, individually and collectively, NTX Combination Products and MENK Combination
Products.

 

1.5
“Cytocom Distributor” means any third-party distributor that is operating under an agreement with Cytocom for
the distribution and sale of Cytocom’s branded product in one or more countries within the Territory.

 

1.6
“Cytocom Mark” shall have the meaning set forth in Section 2.4(b).

 

1.7
“Cytocom Supplier” means such contract manufacturing organization designated by Cytocom that the parties may
agree to include as part of this definition by written amendment to this Agreement.

 

1.8
 “FDA” means the United States Food and Drug Administration, and any successor agency thereto.

 

1.9
“Field” means with respect to a Product, any use that is consistent with the label approved by the FDA or applicable
foreign regulatory authority in the country of sale for the use of such Product, including the use of NTX Product for the treatment
of immune dysfunction and immune dysfunction. As it relates to use of a Product in animals, the Field shall include any use that
is consistent with the label approved by the Office of Minor Use and Minor Species or applicable foreign regulatory authority
in the country of sale for the use of such Product.

 

1.10
“Improvements” shall have the meaning set forth in Section 2.2.

 

1.11
“Licensed API” means API that is either (a) made by Licensee pursuant to the license grant set forth in Section
2.1; or (b) acquired by Licensee from a Cytocom Supplier or from a Licensed API Supplier on the terms and conditions set forth
in Section 3.

 

1.12
“Licensed API Supplier” means an entity (other than Licensee) that is licensed by Cytocom to manufacture and
sell API to third parties in the Field in India.

 

1.13
“Licensed Know-How” means (a) the know-how actually transferred to Licensee pursuant to the terms of Section
5.5 and (b) any other improvements or modifications to such transferred know-how (x) that are (i) specific to API and (ii) developed
and controlled by Cytocom during the term of this Agreement, and (y) specifically excluding any such improvements and modifications,
methods and other know-how claimed in any patent or patent application.

 

1.14
“Licensed Product Supplier” means an entity (other than Licensee) located in Central America, South America,
Africa and Caribbean that is licensed by Cytocom to make, use, sell, have sold, offer for sale and export Product in the Field
in the Territory.

 

1.15
“Licensed Technology” means the Patents and the Licensed Know-How.

 

1.16
 “Licensee Distributor” means a third party wholesaler or distributor that is not a Cytocom Distributor and
that is operating under an agreement with Licensee for the distribution and sale of Product in the Territory.

 

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1.17
“MENK Combination Product” means a pharmaceutical product containing MENK in combination with any other active
pharmaceutical ingredient other than NTX (in each case subject to the restrictions set forth in Section 2.3(c)(ii)), including
any co-formulation, co-packaged product, bundled product, or other type of combination product.

 

1.18
“MENK Product” means a formulated and finished pharmaceutical product containing MENK as its sole active pharmaceutical
ingredient.

 

1.19
 “Minimum Quality Standards” shall have the meaning set forth in Section 6.2(a).

 

1.20
“Net Sales” means, with respect to a given calendar quarter, the total amount invoiced by Licensee for sales
of Product in the Territory to third parties, less the following deductions calculated in accordance with U.S. Generally Accepted
Accounting Principles (GAAP): (a) freight, insurance, packing, shipping charges, in each case as actually incurred and included
as a specific line item on a bill or invoice to such third party; (b) custom duty of imported components, VAT, excise tax, sales
tax, or other governmental charges upon or measured by the production, sale transportation, delivery or use of goods, in each
case included as a specific line item on a bill or an invoice to such third party; (c) trade, quantity and cash discounts allowed
and taken, refunds, chargebacks and any other allowances given (as determined in accordance with GAAP) and taken which effectively
reduce the gross amounts billed or invoiced; in each of (a) through (c) to the extent consistently applied across all products
of Licensee. Net Sales on Combination Products shall be calculated based on the portion of product Net Sales attributable to Licensed
API, as set forth in Section 4.2.

 

1.21
“NTX Combination Product” means a pharmaceutical product containing NTX in combination with any other active
pharmaceutical ingredient (in each case subject to the restrictions set forth in Sections 2.4(c)(i)), including any co formulation,
co-packaged product, bundled product, or other type of combination product.

 

1.22
“NTX/MENK Product” means a formulated and finished pharmaceutical product containing NTX and MENK as its sole
active pharmaceutical ingredients. For clarity, NTX/MENK Product is a NTX Combination Product.

 

1.23
 “NTX Product” means a formulated and finished pharmaceutical product containing NTX as its sole active pharmaceutical
ingredient.

 

1.24
 “Patents” means (a) the patents and patent applications set forth in Appendix 2 hereto and (b) any other patents
or patent applications (and resulting patents therefrom) that are(i) owned or licensed and controlled by Cytocom and its Affiliates
during the term of this Agreement and (ii) necessary for Licensee to practice the licenses granted in Section 2 hereof, including
patents and patent applications claiming improvements or modifications to the manufacture of API , in each of

(a)
and (b) solely to the extent the claims in such patents and patent applications cover the manufacture, use or sale of API.

 

1.25
“Product” means, individually and collectively, NTX Product, NTX Combination Product, MENK Product and MENK
Combination Product.

 

1.26
“Quarterly Report” shall have the meaning set forth in Section 4.3.

 

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1.27
“Regulatory Agency” means the local agencies involved in drug approval

 

1.28
“Royalty Term” shall have the meaning set forth in Section 4.9.

 

1.29
 “Territory” means the countries set forth on Appendix 1. The Territory shall include the United States for
Products to be used in animals.

 

1.30
“Third-Party Resellers” means Licensed Product Suppliers, Licensee Distributors and Cytocom Distributors.

 

2.
License Grants

 

2.1
Licenses

 

(a)
Product License. Subject to the terms and conditions of this Agreement, Cytocom hereby grants to Licensee a royalty-bearing,
exclusive, non-sublicensable (other than a sublicense to an Affiliate in accordance with Section 2.1(c) below), non-transferable
license under the Licensed Technology solely to (i) make Product from Licensed API in Africa, Central America, South America and
Caribbean, (ii) market, sell, have sold, offer for sale, export from Africa, Central America, South America and Caribbean and
import such Product made from Licensed API in the Territory for use in the Field, and (iv) market, sell, have sold, offer for
sale, export from Africa, Central America, South America and Caribbean and import such Product made from Licensed API for use
in animals in Field in the Territory, including the United States.

 

(b)
Affiliates. Licensee may grant sublicenses under the licenses granted in this Section 2.1 to its Affiliates upon Cytocom’s
prior written consent, which such consent shall not be unreasonably withheld. Licensee shall ensure that any such Affiliate complies
with all the terms of this Agreement as if they were a party to this Agreement, and Licensee will be liable for the activities
of such Affiliates as if such activities were performed by Licensee.

 

2.2
Restrictions on License Scope. The licenses granted in this Section 2.1 do not include, expressly or by implication, a
license under any Cytocom intellectual property right to manufacture, use, sell or distribute any product containing any active
pharmaceutical ingredients owned or controlled by Cytocom other than NTX and MENK. The licenses granted under this Section 2.1
shall not extend to any active pharmaceutical ingredient owned or controlled by Cytocom other than NTX and MENK.

 

2.3
License Grant to Cytocom. Licensee hereby grants to Cytocom a nonexclusive, royalty-free, worldwide, sublicensable license
to all improvements, methods (including manufacturing processes), modifications and other know-how, including any chemistry improvements
or modifications, developed by or on behalf of Licensee and relating to API or a Product (“Improvements”),
subject to the restrictions on further transfer of Licensee’s technology by Cytocom as set forth in Section 5.3. Licensee
shall, as between Cytocom and Licensee, own all such Improvements and shall, as between Licensee and Cytocom, have the sole right,
but not the obligation, to pursue intellectual property protection with respect to such Improvements.

 

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2.4
Licensee’s Right to Sell.

 

(a)
Licensed Product Suppliers. Licensee agrees that it will not sell or offer to sell API to any entity other than to Licensed
Product Suppliers in Africa, Central America, South America and Caribbean that have been approved by Cytocom in accordance with
Section 2.3(d).

 

(b)
Product Sales. Licensee agrees that it will not sell, offer for sale, or assist third parties (including Affiliates) in
selling Product in any country outside of the Territory or for any use outside the Field. Licensee agrees that it will prohibit
Licensee Distributors from selling Product (i) to any other wholesaler or distributor, (ii) outside the Territory, or (iii) for
any purpose outside the Field.

 

(c)
Limitations on Product Combinations.

 

(i)
Licensee will be allowed to manufacture and sell NTX in combination with other active pharmaceutical ingredients in the Territory,
provided in each case (A) Licensee has the legal right to manufacture and sell such other active pharmaceutical ingredients in
the applicable country in the Territory, and (B) such manufacture and sale is in accordance with the terms and conditions of this
Agreement.

 

(ii)
Licensee will be allowed to manufacture and sell MENK in combination with other active pharmaceutical ingredients in the Territory,
provided in each case

(A)
Licensee has the legal right to manufacture and sell such other active pharmaceutical ingredients in the applicable country in
the Territory, and (B) such manufacture and sale is in accordance with the terms and conditions of this Agreement.

 

(d)
Terms of Agreements with Third Party Resellers.

 

(i)
Cytocom Distributors. Licensee may elect to sell Product in the Territory to a Cytocom Distributor for the Field, provided
that, Licensee shall only sell to such Cytocom Distributor those Products that are bioequivalent to the branded products Cytocom
has granted such Cytocom Distributor the right to sell in such country of the applicable Territory. Licensee shall only allow
such Cytocom Distributor to sell such Product within the country(ies) of the applicable Territory for which such Cytocom Distributor
has the right to sell branded Cytocom product. Cytocom will provide Licensee with a list, which may be updated by Cytocom from
time to time, of the identity of the Cytocom Distributors and their licensed territories.

 

(ii)
Other Third-Party Resellers. Licensee shall require any Third Party Reseller to agree, in a written agreement with Licensee:
(A) to comply with the applicable terms of this Agreement and (B) to report to Licensee the information, and allow Licensee to
provide Cytocom with the information, described in Section 4.3. Cytocom has the right to audit, on no less than thirty (30) days’
advance notice to Licensee, such records of Licensee to the extent necessary to verify its compliance with this Section 2.3(d).
Cytocom will bear the full cost of any such audit.

 

(iii)
Cytocom Approval of Third-Party Reseller Agreements. Licensee shall not enter into any agreements with Third Party Resellers
on terms inconsistent with this Agreement without obtaining Cytocom’s prior written approval. If Licensee enters into an
agreement with any Third Party Reseller, then Licensee shall notify Cytocom in writing, and shall certify that its arrangement
with such Third Party Reseller is consistent with the terms and conditions of this Agreement. Licensee shall provide Cytocom with
written copies of all agreements executed between Licensee and Third Party Resellers. Cytocom shall have the right to review all
such agreements to verify consistency with the terms and conditions of this Agreement. In the event that any inconsistency is
found which had not been specifically discussed and agreed with Cytocom, then Cytocom shall have the right to require Licensee
to terminate such agreement.

 

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(e)
Termination of Third-Party Reseller Agreements by Licensee. Licensee shall immediately terminate its agreement(s) with
a Third-Party Reseller in the event that such Third Party Reseller engages in activities that Licensee is prohibited from performing
under this Agreement, or that are inconsistent with Licensee’s covenants under this Agreement, including without limitation
the unauthorized use, sale or diversion by such Third Party Reseller of API or Product outside the Field or the applicable Territory,
or upon Licensee first reasonably believing that such Third-Party Reseller has engaged in such activities.

 

(f)
Termination of Third-Party Reseller Agreements by Cytocom. Cytocom may terminate Licensee’s right to sell Product
to any Third-Party Reseller, if in Cytocom’s reasonable belief such Third-Party Reseller is not acting in a way that is
consistent with Licensee’s covenants under this Agreement, or if Licensee does not terminate Licensee’s agreement
with such Third-Party Reseller under the circumstances described in Sections 2.3(d)(iii) or 2.3(e).

 

2.5
License Limitations.

 

(a)
Cytocom Retained Rights. Licensee hereby acknowledges that Cytocom retains all right, title and interest in API and Products
except as explicitly provided in this Agreement, and that Cytocom may license or otherwise convey to third parties rights with
respect to API and Products as it wishes without obligation or other accounting to Licensee.

 

(b)
Cytocom Marks. The licenses granted hereunder do not include any license or other right to use any Cytocom trade dress,
trademark, trade name, logo or service mark (each, a “Cytocom Mark”) or any word, logo or any expression that
is similar to or alludes to any Cytocom Mark, except as provided in Section 6.5.

 

(c)
No Other Licenses.

 

(i)
Licensee agrees that it shall not use any contract manufacturers without obtaining Cytocom’s prior written consent, or grant
any sublicenses hereunder to any other person, company or entity, including third parties and Affiliates.

 

(ii)
Except as expressly set forth in this Agreement, Cytocom does not grant any license under any of its intellectual property rights
(including, without limitation, Patents or rights to any proprietary compounds or drug substances other than API) to Licensee.

 

2.6
Future Products. The parties acknowledge that as of the Effective Date, Cytocom is developing a pharmaceutical product
for treatment of patients with immune dysfunction and immune dysregulation (“Indication Candidate”). Upon Licensee’s
written request given any time following the commencement of Phase 3 clinical studies with respect to the Indication Candidate,
the parties will discuss terms and conditions pursuant to which Cytocom would include the Indication Candidate as a Product under
this Agreement.

 

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3.
Sourcing of API

 

3.1
Sourcing of API from API Suppliers. Licensee agrees that it shall not make or use any API other than API that is Licensed
API for the manufacture of any Product for sale in the Territory. If Licensee wishes to manufacture Product using API made by
either a Cytocom Supplier or a Licensed API Supplier, then Licensee shall notify Cytocom in writing, and shall certify that its
arrangement with such Cytocom Supplier or Licensed API Supplier, as applicable, is consistent with the terms and conditions of
this Agreement. Licensee shall provide Cytocom with written copies of all agreements between Licensee and such Cytocom Supplier
or Licensed API Supplier upon execution. In the event that any inconsistency is found which had not been specifically discussed
and agreed with Cytocom, Cytocom shall have the right to require Licensee to terminate such agreement with such Cytocom Supplier
or Licensed API Supplier.

 

3.2
Cytocom Assistance with Cytocom Suppliers. Upon Cytocom’s receipt from Licensee of a written notice describing its
intention to obtain Licensed API from a Cytocom Supplier as described in Section 3.1, Cytocom shall use commercially reasonable
efforts to assist Licensee in procuring supply of API from such Cytocom Supplier. Cytocom shall not be obligated to assist Licensee
in procuring any supply of API from a Licensed API Supplier.

 

3.3
Conditions of Supply from Cytocom Suppliers. Cytocom shall be a party to any agreement between Licensee and a Cytocom Supplier
that provides for the supply of API to Licensee from such Cytocom Supplier. Any such agreement between Cytocom, Licensee and a
Cytocom Supplier shall include and be subject to the following conditions:

 

(a)
Cytocom Supply Needs. Licensee shall not obtain API from the Cytocom Supplier until Cytocom has received confirmation in
writing from the Cytocom Supplier of its ability to continue to supply Cytocom with Cytocom’s forecasted requirements of
API, as reflected in Cytocom’s then-current twelve (12) month forecast for API provided to the Cytocom Supplier.

 

(b)
Consistency with Agreement. The Cytocom Supplier shall be permitted to supply API to Licensee only to the extent that any
such supply does not (A) adversely affect its ability to meet Cytocom’s forecasted requirements or (B) adversely affect
the Cytocom Supplier’s ability to supply Cytocom’s requirements, whether or not such requirements are consistent with
Cytocom’s twelve (12) month forecast. Cytocom shall have the right to terminate any agreement between Licensee and its Cytocom
Suppliers if the supply of API from such Cytocom Supplier to Licensee adversely affects Cytocom’s supply requirements as
set forth in this Section 3.3(b).

 

3.4
No Other Arrangements. Licensee agrees that it shall not enter into any agreements, nor amend any existing agreements,
for the supply of intermediates or API on terms that are inconsistent with this Agreement without Cytocom’s prior written
approval as provided for in this Section 3.

 

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4.
Consideration/Payment Terms/Audit

 

4.1
Royalty. As consideration for the licenses granted in Section 2, Licensee shall pay Cytocom the following royalties on
Net Sales of Product in the Territory for the duration of the Royalty Term:

 

(a)
1% of Net Sales of NTX Product in the Territory.

 

(b)
1% of the portion of NTX Combination Product other than NTX/MENK Product Net Sales attributable to the NTX component of such NTX
Combination Product in the Territory, as determined in accordance with Section 4.2. In addition, to the extent any such NTX Combination
Product also contains MENK, Licensee will also pay Cytocom 1% of the portion of NTX Combination Product (other than NTX/MENK Product)
Net Sales attributable to the MENK component of such NTX Combination Product in the Territory, as determined in accordance with
Section 4.2.

 

(c)
1% of Net Sales of NTX/MENK Product in the Territory.

 

(d)
1% of Net Sales of MENK Product in the Territory.

 

(e)
1% of the portion of MENK Combination Product Net Sales attributable to the MENK component of such MENK Combination Product in
the Territory, as determined in accordance with Section 4.2.

 

(f)
No royalties will be owed on Licensee’s sale of API to other Licensed Product Suppliers, provided such Licensed Product
Supplier has executed an agreement with Cytocom requiring such Licensed Product Supplier to pay Cytocom royalties on finished
Product containing such API.

 

(g)
No royalties shall be owed on Licensee’s sale of Products for use in animals in the Territory or United States.

 

(h)
Royalties on sales of Product to Cytocom Distributors will be based on Licensee’s invoice price to such Cytocom Distributor.

 

(i)
On a Product by Product and country by country basis, if there is no Product Patent (as defined below) owned or controlled by
Cytocom (or its Affiliates) in Africa, Central America, South America and Caribbean or the country in which such Product is sold,
and if there is no reasonable possibility of obtaining such a Product Patent within a reasonable period of time (for example,
through pending patent applications, the filing of patent applications, or by legal action (including appeals)) in Africa, Central
America, South America and Caribbean or the country in which such Product is sold, then Cytocom agrees to negotiate in good faith
a reduction on the royalty due with respect to such Product under this Agreement on a country by country basis. As used in this
Agreement, “Product Patent” shall mean any patent or patent application claiming any Product or any API contained
in such Product, including any patent or patent application claiming the composition of matter for such Product or API, or their
formulation, or any patent or patent application claiming the method of use or method of manufacture with respect to such Product
or such API.

 

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(j)
If any country within the Territory issues a valid, bona fide compulsory license pursuant to (1) the requirements promulgated
under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) or (2) valid laws within such country (“Compulsory
License”) for any Product, then for the duration of such Compulsory License the royalty payable by Licensee on Net Sales
for such Product in such country shall be reduced to the royalty rate paid to Cytocom by such country for such Product under such
Compulsory License.

 

4.2
Adjustment for Combination Products. Solely for the purpose of calculating Net Sales of Combination Products, if Licensee
sells Product in the form of a Combination Product containing any Licensed API and one or more other active pharmaceutical ingredients
in a particular country, Net Sales of such Combination Product in such country for the purpose of determining the royalty due
to Cytocom pursuant to Section 4.1 will be calculated by multiplying actual Net Sales of such Combination Product in such country
by the fraction A/(A+B), where A is the invoice price of such Product if sold separately in such country, and B is the total invoice
price of the other active pharmaceutical ingredient(s) in the combination if sold separately in such country. If, on a country-by-country
basis, such other active pharmaceutical ingredient or ingredients in the Combination Product are not sold separately in such country,
but the Product component of the Combination Product is sold separately in such country, Net Sales for the purpose of determining
royalties due to Cytocom for the Combination Product will be calculated by multiplying actual Net Sales of such Combination Product
by the fraction A/C, where A is the invoice price of such Product component if sold separately, and C is the invoice price of
the Combination Product. If, on a country-by-country basis, such Product component is not sold separately in such country, Net
Sales for the purposes of determining royalties due to Cytocom for the Combination Product will be D/(D+E), where D is the fair
market value of the portion of the Combination Products that contains the Product, and E is the fair market value of the portion
of the Combination Products containing the other active pharmaceutical ingredient(s) included in such Combination Product, as
such fair market values are determined by mutual agreement of the Parties, which shall not be unreasonably withheld.

 

4.3
Reports. Within sixty (60) days after the end of each calendar quarter, Licensee shall provide Cytocom with a detailed
report (the “Quarterly Report”) that includes at least the information set forth in this Section 4.3.

 

(a) Product
and API Information. In each Quarterly Report, Licensee agrees to set forth in reasonable detail: (i) amounts of API and
Product manufactured by Licensee, (ii) API and Product in Licensee’s stock, (iii) the Third Party Resellers, if any, to
which Licensee has provided Product and in what quantities (on a Third Party Reseller by Third Party Reseller basis), (iv) in
the case of the sale of any API to third-party manufacturers of Product, the identity of such third parties and quantities of
API sold to each such third party and (v) the volume of API or Product that Licensee intends to manufacture over the
course of the following 12-month period, on a month by month basis.

 

(b)
Payment Information. In each Quarterly Report, Licensee shall include the following information: (i) total invoiced sales
of Product, Net Sales, the deductions used to determine Net Sales, number of units of Product sold, each of which shall be reported
on a Product-by-Product and country-by-country basis, (ii) adjustments for Combination Products (pursuant to Section 4.2), (iii)
total royalties owed for the calendar quarter, the countries to which the Product has been sent and in what quantities, and (iv)
Net Sales by each Third-Party Reseller, if any.

 

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(c)
Regulatory Information. In each Quarterly Report, Licensee shall provide Cytocom with the following information: (i) a
list of countries within the Territory for which such regulatory approvals or authorization have been obtained for Product and
(ii) a description of activities performed by Licensee, its designee or, to its knowledge any other third party, with respect
to the filing, obtaining or maintaining of such regulatory approvals or authorizations within the Territory for any Product.

 

(d)
Certifications; Payments. Together with each Quarterly Report, Licensee shall (i) provide Cytocom with a written certification
of the accuracy of the contents of the Quarterly Report, signed by an appropriate Licensee senior officer and (ii) pay royalties
due to Cytocom for the calendar quarter covered by such Quarterly Report. Licensee shall provide Quarterly Reports to Cytocom
at the address set forth in Section 12.4 below. Licensee shall pay royalties to Cytocom by wire transfer to the bank account indicated
by Cytocom.

 

4.4
Payment Terms; Conversion. Licensee shall make all payments to Cytocom in US Dollars within sixty (60) days following the
end of each calendar quarter. With regard to sales in currencies other than US Dollars, conversion from local currency into US
Dollars shall be in accordance with Licensee’s normal and customary procedures, as reported in its audited financial statements.

 

4.5
Records. Licensee shall keep complete and accurate records of API and Product produced and sold in sufficient detail to
enable Licensee to determine the amount of royalties due, the parties to whom Product or API was sold, and the countries in which
sales occurred.

 

4.6
Audit. Cytocom has the right to engage an independent public accountant to perform, on no less than thirty (30) days’
advance notice to Licensee, an audit, conducted in accordance with generally accepted auditing standards, of such books and records
of Licensee that are deemed necessary by such public accountant to report amounts of API and Product produced, gross sales, Net
Sales for the periods requested and accrued royalties. Cytocom will bear the full cost of any such audit unless such audit discloses
a difference of more than five percent (5%) from the amount of royalties due. In such case, Licensee shall promptly pay Cytocom
any underpayment and shall bear the full cost of such audit.

 

4.7
Interest. Any amount payable hereunder by Licensee, which is not paid when due in accordance this Section 4, shall bear
a pro rata monthly interest rate of one percent (1%) subject to any necessary approvals that may be required.

 

4.8
Taxes

 

(a)
Withholding Taxes. Licensee shall promptly pay the withholding tax for and on behalf of Cytocom to the proper governmental
authority and shall promptly furnish Cytocom with the tax withholding certificate furnished by the Licensee. Licensee shall be
entitled to deduct the withholding tax actually paid from such payment due Cytocom. Each party agrees to assist the other party
in claiming exemption from such withholdings under double taxation or similar agreement or treaty from time to time in force and
in minimizing the amount required to be so withheld or deducted.

 

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(b)
Other Taxes. Except as provided in this Section 4.8, all taxes or duties in connection with payments made by Licensee shall
be borne by Licensee.

 

4.9
Royalty Term. Royalty payments shall be paid to Cytocom by Licensee on country-by-country basis starting on the date of
the first commercial sale of a Product in a country and continuing until the last to occur of the following: (a) the expiration
of the last-to-expire Patent containing a valid claim covering the manufacture, use, import, offer for sale or sale of API or
Product in such country; and (b) the date of expiration of the last-to-expire Patent containing a valid claim covering the manufacture,
use, import, offer for sale or sale of API or Product in Africa, Central America, South America and Caribbean (the “Royalty
Term”). Notwithstanding the foregoing, the Royalty Term for any Product will not extend beyond the date on which all
Product Patents covering such Product (or the API contained therein) in the United States expire.

 

5.
Intellectual Property

 

5.1
Maintenance of Patents. Cytocom will be obligated to maintain or enforce the Patents.

 

5.2
Cooperation. If either party becomes aware of a suspected infringement of any Patent, such party will notify the other
party promptly, and following such notification, the parties agree to discuss the scope of such infringement. Cytocom will have
the sole right, but not the obligation, to bring an infringement action at its own expense, in its own name, and entirely under
its own direction and control. Licensee will have no obligation to assist Cytocom with the enforcement or defense of the Patents.

 

5.3
Reporting of Improvements. Licensee shall provide Cytocom with an annual report, in writing and in reasonable detail that
sets forth any Improvements, including any patent application claiming Improvements. Licensee shall transfer to Cytocom, upon
request by Cytocom and at Cytocom’s expense, any know-how owned or controlled by Licensee relating to such Improvements.
Any failure to report any such Improvements to Cytocom in accordance with the terms of this Agreement shall constitute a breach
of this Agreement and shall provide Cytocom with the right to terminate this Agreement pursuant to Section 10.2. Cytocom shall
not transfer any Improvements obtained from Licensee to any third party, provided, however, that Cytocom may transfer Improvements
to Cytocom’s own Affiliates and suppliers, provided such Affiliates and suppliers utilize such Improvements solely for the
benefit of Cytocom.

 

5.4
Trademarks

 

(a)
Any Product offered for sale or sold under this Agreement shall have a trade dress, including a distinct color, shape and trade
name different from and not likely to be confused with, any product sold by or on behalf of Cytocom. Licensee’s non-performance
of the obligations set forth in this Section 5.4(a) shall constitute a material breach of Licensee’s material obligations
under this Agreement.

 

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(b)
Licensee shall provide to Cytocom, prior to any regulatory submissions for any Product, or selling or offering for sale any Product,
samples of the Product and any packaging, labeling information or marketing materials (including, but not limited to, advertisement
and promotional materials) to be used with the Product. Cytocom shall have the right to review and approve the trademark and trade
dress for such Product and its packaging to determine if such Product or its packaging is likely to be confused with Cytocom’s
trade dress and trademarks, consistent with the requirements set forth in Section 5.4(a). If Cytocom reasonably objects to the
trade dress or other aspects of the Product or product packaging based on the requirements set forth in Section 5.4(a), the parties
shall discuss in good faith Cytocom’s concerns and Licensee agrees to make such modifications to the Product or packaging
as are necessary to address Cytocom’s concerns.

 

5.5
Technology Transfer. During the term of this Agreement, Cytocom will make the following technology transfers available
to Licensee:

 

(a)
Within ninety (90) days following the Effective Date, Cytocom will make a one-time technology transfer available to Licensee of
know-how owned or controlled by Cytocom as of the Effective Date relating to the manufacture of NTX and NTX Product to the extent
and in the manner specified in Appendix 3 hereto.

 

(b)
Within ninety (90) days following Cytocom’s receipt of marketing approval from the FDA for a NTX/MENK Product, Cytocom will
make a one-time technology transfer available to Licensee of know-how owned or controlled by Cytocom relating to the manufacture
of MENK and NTX/MENK Product to the extent and in the manner specified in Appendix 3 hereto.

 

(c)
Within ninety (90) days following Cytocom’s receipt of marketing approval from the FDA for an MENK Product, Cytocom will
make a one-time technology transfer available to Licensee of know-how owned or controlled by Cytocom relating to the manufacture
of MENK Product to the extent and in the manner specified in Appendix 3 hereto.

 

With
respect to each of the foregoing technology transfers, Licensee shall notify Cytocom of its desire to receive such technology
transfer within the time period therefor, and following receipt of such notice Cytocom will promptly make the applicable technology
transfer. If Licensee does not notify Cytocom of its desire to receive a particular technology transfer within the time period
therefor, then Cytocom will be under no obligation to make such technology transfer. The know-how transferred to Licensee pursuant
to the terms of this Section 5.5 shall be sufficient to enable Licensee to manufacture API, NTX Product, NTX/MENK Product and
MENK Product, as applicable, at commercial-scale quantities. Cytocom shall have no further obligation to transfer any other know-how
under this Agreement.

 

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6.
Manufacturing and Commercialization of Product

 

6.1
Commercialization of Product in the Territory.

 

(a)
Anti-Diversion Programs. Licensee shall provide Cytocom with written notice six (6) months prior to its anticipated first
sale of Product in each country within the Territory. Following Cytocom’s receipt of such notice, the parties shall discuss
in good faith programs that Licensee may implement to minimize diversion of Product outside of such country, including by using
commercially reasonable efforts in ensuring Product is sold direct to patients within such country, as may be determined by the
parties. On a country by country basis, if requested by Cytocom at any time either prior to Licensee’s sale of any Product
in such country or at any time thereafter, the parties shall discuss and agree upon a written anti-diversion plan that Licensee
shall implement to ensure Product is not diverted out of such country (for each such country, the “Anti-Diversion Plan”).
Cytocom shall have the right to prohibit Licensee’s sale of Product to any country (the “Subject Country”)
within Territory if it reasonably believes that material quantities of Product are being sold, transferred or otherwise diverted
from such Subject Country outside the Territory by providing written notice thereof to Licensee (each such notice, a “Diversion
Notice”). Except as may be necessary for patients within any Subject Country who have previously initiated their treatment
with Product to complete such treatment, upon Licensee’s receipt of a Diversion Notice, Licensee shall immediately cease
all sales of Product in, and imports of Product to, the Subject Country(ies) that is covered by such Diversion Notice until such
time that Cytocom and Licensee have developed an Anti-Diversion Plan for such Subject Country(ies). Licensee shall not enter into
any contractual arrangements or commitments that would prevent it from fulfilling its obligations under this Section 6.1(a).

 

(b)
Promotion. The parties hereto agree that an important purpose of this Agreement is to increase patient access to the Products
within the Territory. Except as otherwise provided in this Agreement (including Section 5.4 and 6.1(a) above), Licensee shall
have the sole discretion to manage its own commercial strategy to promote and sell the Product in the Territory, provided,
however, that Licensee shall not engage in activities that are inconsistent with the first sentence of this Section 6.1(b).
By means of example and without limitation, Licensee agrees that Licensee shall not accept patient orders that Licensee does not
have the capacity to fill, and shall not obtain API or Product without having the means, either directly or through the use of
permitted third parties, to manufacture Product using such API and/or distribute such Product within the Territory.

 

6.2
Manufacturing Requirements

 

(a)
Minimum Standards. Licensee agrees that it shall manufacture API and Product in a manner consistent with (i) the applicable
Indian manufacturing standards, including manufacturing standards promulgated by the Drug Controller General of Africa, Central
America, South America and Caribbean (DCGI) (“Minimum Quality Standards”); and (ii) on a country-by-country
basis, any applicable national, regional or local standards as may be required by the specific country where Product is sold.
Licensee shall meet the Minimum Quality Standards for (1) the NTX Product no later than 24 months following the Effective Date,
(2) NTX/MENK Product no later than the second anniversary of the FDA approval date for NTX/MENK Product and (3) MENK Product no
later than the second anniversary of the FDA approval date for an MENK Product (if an MENK Product is approved). In addition,
Licensee shall meet the Minimum Quality Standards with respect to a particular Product prior to Licensee’s sale of such
Product to any country within the Territory.

 

(b)
Audit Right. Licensee hereby agrees to allow Cytocom reasonable access to Licensee’s books and records, facilities
and employees solely for the purpose and to the extent required for Cytocom to audit Licensee’s compliance with the requirements
of this Section 6.2. Cytocom agrees to provide at least thirty (30) days prior notice of the proposed audit, and agrees that such
audits shall not be conducted more than once a year unless circumstances outside the ordinary course of business warrant such
an audit (such as an investigation or other government action). During any such suspension, Cytocom and Licensee shall coordinate
with each other to provide for the supply of API or Product, as appropriate to ensure that end-user patient requirements are not
disrupted as a result of such suspension.

 

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(c)
Remedy for Failure. If Licensee fails at any time to meet the Minimum Quality Standards with respect to the manufacture
of API or Product, Cytocom may elect, in its sole discretion and notwithstanding Section 10.2 or 10.3 hereof, to suspend the licenses
granted hereunder until such time Cytocom has determined that Licensee has corrected any such failure to Cytocom’s reasonable
satisfaction.

 

(d)
Dose Requirements. All Product used or sold by Licensee shall consist of a single dose concentrations of NTX and MENK that
are the same as the dose concentration for such agent that has been approved by (i) the FDA or (ii) by (y) DCGI and (z) the appropriate
regulatory authority having jurisdiction over such Product in the country of sale. Licensee agrees that it shall manufacture or
sell Products only as approved by the FDA for the Field or as approved for use in the Field by the appropriate regulatory authority
having jurisdiction over such Product in the country of sale.

 

6.3
Regulatory Filings and Inspections. Except as provided otherwise herein, Licensee shall be responsible for obtaining and
maintaining all applicable regulatory or other approvals or authorizations to carry out its activities in the Territory as set
forth in this Agreement. Cytocom may, in its discretion, elect to file for regulatory or other approval or authorization to make
and sell API and Product anywhere in the Territory. Upon either party’s request, the other party shall provide non-proprietary
data that the other party believes is reasonably necessary to obtain any such approvals, authorizations, permits or licenses.
Licensee shall obtain, have and maintain all required registrations for its manufacturing facilities. Licensee shall allow appropriate
regulatory authorities to inspect such facilities to the extent required by applicable law, rule or regulation. Cytocom agrees
to provide Licensee with NCE Exclusivity, or other regulatory exclusivity, waivers as may be required by the applicable regulatory
authorities in order to manufacture or sell Product in the Territory, provided such manufacture and sale by Licensee is compliant
with the terms and conditions of this Agreement. Licensee agrees not to pursue or obtain regulatory exclusivity on any Product
in any country within the Territory.

 

6.4
Marketing Materials. Any marketing materials (including, but not limited to, advertisement and promotional materials) used
by Licensee and its Third-Party Resellers shall not contain any misstatements of fact, shall be fully compliant with the applicable
laws, rules and regulations, and shall be distinct from, and not cause any confusion with, any marketing materials or Products
used or sold by Cytocom. Any statements made in such marketing materials regarding Cytocom, including without limitation statements
made in reference to Licensee’s collaboration with Cytocom, shall require Cytocom’s prior written approval.

 

6.5
Product Labeling. Licensee shall expressly state on the labeling of all Products sold or offered for sale under this Agreement
that the Product “is manufactured under a license from Cytocom, Inc..”

 

7.
Representations, Warranties and Covenants

 

7.1
Ability to Perform. Cytocom and Licensee each represent and warrant that

 

(a)
they are duly organized, validly existing and in good standing under the laws of the jurisdiction of their incorporation and have
full corporate power and authority to enter into this Agreement and to carry out the provisions hereof;

 

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(b)
this Agreement has been duly executed and delivered, and constitutes a legal, valid, binding obligation, enforceable against it
in accordance with the terms hereof; and

 

(c)
the execution, delivery and performance of this Agreement does not conflict with any agreement, instrument or understanding, oral
or written, to which it is a party or by which it is bound, nor violate any law or regulation of any court, governmental body
or administrative or other agency having jurisdiction over such party.

 

7.2
Diversion of Product and Technology. Licensee covenants and agrees that it shall not: (i) divert or knowingly allow the
diversion of API outside of India, (ii) divert or knowingly allow the diversion of Product outside the Territory, (iii) divert
or knowingly allow the diversion of Licensed Technology to any third party, except as expressly permitted under this Agreement,
or (iv) assist or support, directly or indirectly, any third party in the conduct of the activities described in clauses (i) -
(iii) of this Section 7.2. The parties agree that it shall not be a breach of Section 3.1 or this Section 7.2 for Licensee or
its Affiliate to file marketing approval applications for any Product in a country outside of the Territory, or for Licensee or
its Affiliate to provide developmental quantities of API or Product in support of such marketing approval applications as required
by applicable regulatory authorities in such country, it being understood that this provision shall not be construed as expressly
or implicitly granting Licensee any right or license under any Cytocom intellectual property right beyond the licenses granted
in Section 2.1 of this Agreement.

 

7.3
Access Promotion. Licensee covenants and agrees that it shall not engage in activities that are contrary to the goal of
promoting patient access to Product to satisfy unmet medical needs within the Territory.

 

7.4
Compliance

 

(a)
General. Licensee covenants and agrees that it shall perform all activities under this Agreement in accordance with all
applicable laws and regulations, including, without limitation, with respect to recalls, safety and reporting requirements and
shall obtain, have and maintain all necessary regulatory approvals (including in India), marketing authorizations, permits and
licenses, at Licensee’s expense for the manufacture and sale of the API and/or Product and any other Licensee activities
contemplated under this Agreement.

 

(b)
FCPA and UK Bribery Act. Licensee covenants and agrees that it shall provide to Cytocom on the Effective Date and within
thirty (30) days after the beginning of each calendar year thereafter, certification in writing by Licensee of Licensee’s
compliance with the United States Foreign Corrupt Practices Act of 1977 and with the UK Bribery Act of 2010.

 

(c)
Conflicts. Neither party shall be required to take any action or perform any obligation under this Agreement to the extent
that such action or obligation is in direct conflict with any applicable law, rule or regulation, provided, however, that both
Licensee and Cytocom are in agreement regarding (i) the requirements of such law, rule or regulation, and (ii) the affect that
such law, rule or regulation has on such action or obligation required under this Agreement.

 

7.5
Patent Infringement. Licensee covenants and agrees that it shall not infringe the Patents outside the scope of the licenses
granted to it pursuant to Section 2.

 

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7.6
EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, CYTOCOM DOES NOT GIVE ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR
IMPLIED, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF NON-INFRINGEMENT IN THE TERRITORY. Cytocom also does not give any warranty,
express or implied, with regard to the safety or efficacy of API or the Product.

 

8.
Liability and Indemnity

 

8.1
Licensee Indemnity. Licensee shall indemnify, hold harmless and defend Cytocom, and its subsidiaries, licensors, directors,
officers, employees and agents (together the “Cytocom Indemnitees”), from and against any and all losses, damages,
expenses, cost of defense (including, without limitation, attorneys’ fees, witness fees, damages, judgments, fines and amounts
paid in settlement) and any amounts a Cytocom Indemnitee becomes legally obligated to pay because of any claim against it (i)
arising out of any breach by Licensee of the terms and conditions of this Agreement, or (ii) for any product liability, liability
for death, illness, personal injury or improper business practice, or any other statutory liability or any other liability under
any law or regulation, to the extent that such claim or claims are due to reasons caused by or on behalf of Licensee related to
API or Product (including, without limitation, its manufacture, use or sale of API or Product). The indemnification obligations
of Licensee stated in this Section 8.1 shall apply only in the event that Cytocom provides Licensee with prompt written notice
of such claims, grants Licensee the right to control the defense or negotiation of settlement (using counsel reasonably approved
by Cytocom), and makes available all reasonable assistance in defending the claims. Licensee shall not agree to any final settlement
or compromise with respect to any such claim that adversely affects Cytocom without obtaining Cytocom’s consent.

 

8.2
Product Liability. Licensee shall be solely responsible in respect of any product liability or any other statutory liability
under any regulation, in respect of API or the Product.

 

8.3
Cytocom Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, IN NO EVENT SHALL CYTOCOM BE LIABLE
TO LICENSEE FOR ANY INDIRECT, SPECIAL, CONSEQUENTIAL, PUNITIVE, EXEMPLARY OR INCIDENTAL DAMAGES (INCLUDING BUT NOT LIMITED TO
LOSS OF BUSINESS OR PROFITS) RELATED TO THIS AGREEMENT, AND SHALL NOT HAVE ANY RESPONSIBILITIES OR LIABILITIES WHATSOEVER WITH
RESPECT TO API OR PRODUCT, EVEN IF, IN ANY SUCH CASE, ADVISED OF THE POSSIBILITY OF SUCH CLAIMS OR DEMANDS, REGARDLESS OF THE
FORM OF ACTION OR LEGAL THEORY WHETHER UNDER CONTRACT LAW, TORT LAW (INCLUDING WITHOUT LIMITATION NEGLIGENCE), STRICT LIABILITY,
STATUTE, WARRANTY OR OTHERWISE.

 

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9.
Insurance

 

Within
thirty (30) days prior to the first commercial launch by Licensee of a Product, and each year thereafter for so long as this Agreement
is in effect, Licensee shall provide to Cytocom certificates of insurance by insurers acceptable to Cytocom evidencing comprehensive
general liability coverage, including products liability, with a combined limit of no less than one million dollars ($1,000,000.00)
for bodily injury, including personal injury, and property damage. Such liability coverage may be in the form of a global policy.
Licensee shall not cancel any such policy without at least sixty (60) days prior written notice to Cytocom, and agrees that such
policy shall be maintained (or have an extended reporting period) of at least two (2) years after the termination of this Agreement.

 

10.
Term and Termination

 

10.1
Term. This Agreement shall enter into force upon the Effective Date and, unless earlier terminated as provided herein,
shall continue until the expiration of the Royalty Term. Upon expiration of the Royalty Term (but not the earlier termination
of this Agreement), and with respect to a particular Product in a particular country in the Territory, subject to the terms and
conditions herein with respect to such Product and such country, the licenses granted in Section 2 to Licensee shall become a
perpetual, irrevocable, fully paid-up, royalty free license under the Licensed Know-How to develop, make, have made, use, sell,
have sold, offer for sale, import and distribute such Product in the Field in such country.

 

10.2
Termination for Breach. A party (“non-breaching party”) shall have the right to terminate this Agreement in
the event the other party (“breaching party”) is in material breach of any of its material obligations under this
Agreement. The non-breaching party shall provide written notice to the breaching party. The breaching party shall have a period
of thirty (30) days after such written notice is provided to cure such breach. If such breach is not cured within the thirty day
period, this Agreement shall effectively terminate.

 

10.3
Cytocom Right to Terminate

 

(a)
Cytocom shall have the right to terminate this Agreement and/or the licenses granted pursuant to Section 2.1 (whether or not such
event constitutes a right of termination pursuant to Section 10.2), immediately if in the reasonable opinion of Cytocom, control
(through ownership or otherwise) of Licensee changes.

 

(b)
Cytocom shall have the right to terminate this Agreement and/or the licenses granted pursuant to Section 2.1 (whether or not such
event constitutes a right of termination pursuant to Section 10.2), if:

 

(i)
Cytocom reasonably determines that a material quantity of API has been diverted outside of Africa, Central America, South America
and Caribbean or to third parties other than Licensed Product Suppliers, or Product made and/or sold by Licensee has been diverted
to countries outside the Territory, whether or not by any fault or action or inaction of Licensee;

 

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(ii)
Cytocom reasonably determines that, due to material deficiencies in Licensee’s compliance, or repeated failure to comply,
with the Minimum Quality Standards, Licensee is unable to reliably and consistently manufacture API or Product in accordance with
the Minimum Quality Standards; or

 

(iii)
Cytocom reasonably determines that Licensee has obtained material quantities of API from sources outside the Territory, or in
ways that are inconsistent with the terms and conditions of Section 3.

 

Cytocom
shall give Licensee written notice of any such event and provide Licensee with a period of thirty (30) days after such notice
to demonstrate that the conditions giving rise to Cytocom’s determination no longer exist to Cytocom’s reasonable
satisfaction. If Licensee is unable to do so, this Agreement shall be terminated effective upon the thirtieth (30th)
day following such notice.

 

(c)
(i) For clarity, and notwithstanding anything to the contrary in this Agreement, with respect to a particular Product, and on
a Product-by-Product and country-by-country basis, if there is no Product Patent owned or controlled by Cytocom (or its Affiliates)
in Africa, Central America, South America and Caribbean and a particular country outside of the Territory, and if there is no
reasonable possibility of obtaining such a Product Patent within a reasonable period of time (for example, through pending patent
applications, the filing of patent applications, or by legal action (including appeals)) in Africa, Central America, South America
and Caribbean and such country outside of the Territory, it shall not be deemed to be a breach of this Agreement for Licensee
to supply such Product in such country and Licensee shall not be obligated to pay Cytocom any royalty therefor; provided that
Licensee obtained applicable regulatory approval in such country.

 

(ii)
Similarly, on an API-by-API and Product-by-Product basis, it shall not be deemed to be a breach of the Agreement for Licensee:
(x) to manufacture API in any country where there is no Product Patent owned or controlled by Cytocom (or its Affiliates) covering
such API in such country, and there is no reasonable possibility of obtaining such a Product Patent within a reasonable period
of time (for example, through pending patent applications, the filing of patent applications, or by legal action (including appeals)
in such country; (y) to sell such API referred to in clause (x) of this Section 10.3(c)(ii) in any country where there is no Product
Patent owned or controlled by Cytocom (or its Affiliates) covering such API in such country, and there is no reasonable possibility
of obtaining such a Product Patent within a reasonable period of time (for example, through pending patent applications, the filing
of patent applications, or by legal action (including appeals) in such country; or (z) to manufacture and/or sell Product incorporating
such API referred to in clause (x) of this Section 10.3(c)(ii) in in any country where there is no Product Patent owned or controlled
by Cytocom (or its Affiliates) covering such Product (or the API contained therein) in such country, and there is no reasonable
possibility of obtaining such a Product Patent within a reasonable period of time (for example, through pending patent applications,
the filing of patent applications, or by legal action (including appeals) in such country.

 

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(d)
For further clarity, and notwithstanding anything to the contrary in this Agreement, it shall not be deemed to be a breach of
the Agreement for Licensee to supply an API or Product outside the Territory into a country where: (i) the government of such
country has issued a Compulsory License relating to such API or Product allowing for the importation of such API or Product into
such country, provided that Licensee’s supply of Product or API into such country is solely within the scope and geographic
range of such Compulsory License and only for the duration that such Compulsory License is in effect; and/or (ii) the Government
of Africa, Central America, South America and Caribbean has issued a Compulsory License allowing for the export of an API or Product
from Africa, Central America, South America and Caribbean and into such country, provided that: (Y)(1) there are no Product Patents
owned or controlled by Cytocom (or its Affiliates) issued in such country or (2) a Compulsory License has also been issued by
the relevant authorities of such country; and (Z) Licensee’s supply of Product or API into such country is solely within
the scope and geographic range of the Compulsory License issued by the Government of India, and only for the duration that such
Compulsory License is in effect.

 

10.4
Licensee Right to Terminate. Licensee will have the right to terminate this Agreement for its convenience on an API-by-API
basis upon thirty (30) days prior written notice to Cytocom, which such notice may be given at any time following the fifth anniversary
of the Effective Date. Any written notice given under this Section 10.4 shall expressly identify the API(s) for which Licensee
desires to terminate its license from Cytocom (each, a “Terminated API”). In the event of any such termination,
with respect to any such Terminated API, the following terms shall apply as of the effective date of termination for such API
(the “API Termination Date”).

 

(a)
All licenses granted by Cytocom under this Agreement with respect to such Terminated API, and any other rights granted by Cytocom
with respect to such Terminated API, including without limitation Cytocom’s obligation to make a technology transfer available
with respect to such API pursuant to Section 5.5 (to the extent such technology transfer has not already occurred), shall terminate
and all Sections of this Agreement shall be interpreted to exclude such Terminated API therefrom.

 

(b)
Without limiting the foregoing clause (a) of this Section 10.4, the licenses granted by Cytocom under the Licensed Technology
related to such Terminated API or any Product incorporating such Terminated API to make, use, sell, offer for sale, export from
Africa, Central America, South America and Caribbean or import such Terminated API and/or any Product containing such Terminated
API shall terminate.

 

(c)
Termination of any license with respect to any API under this Section 10.4 shall not relieve Licensee of any obligation accruing
on or prior to the API Termination Date therefor, including the obligation to pay royalties pursuant to Article 4 on Net Sales
of any Product sold prior to the API Termination Date. Upon termination of all API licensed to Licensee under this Agreement,
this Agreement shall be deemed terminated in its entirety pursuant to Section

10.4.
Nothing set forth in this Section 10.4 shall be deemed a waiver by Cytocom to enforce any Patent or any other intellectual property
right owned or controlled by Cytocom against Licensee for any activities Licensee may undertake with respect to any Terminated
API or Product incorporating such Terminated API after any such API Termination Date.

 

10.5
Insolvency. In the event that Licensee becomes insolvent, makes an assignment to the benefit of creditors, or has a petition
in bankruptcy filed for or against it, Cytocom shall have the right to treat such event as a material breach.

 

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10.6
Waiver. The waiver by either party of any breach of any term or condition of this Agreement shall not be deemed a waiver
as to any subsequent or similar breach.

 

10.7
Survival. On a Product-by-Product and API-by-API basis, Sections 1, 2.2 (with respect to Improvements developed prior to
the effective date of expiration or termination), 2.4(a), 2.4(b), 2.4(c)(ii), 4.3 (with respect to API and Product manufactured
and/or sold prior to the effective date of expiration or termination), 4.5 (for a period of 3 years following the effective date
of expiration or termination), 4.6 (for a period of 3 years following the effective date of expiration or termination), 5.3 (for
a period of 1 year following the effective date of expiration or termination of the Agreement, and solely with respect to Improvements
developed prior to the effective date of expiration or termination), 7.6, 8, 9, 10.1, 10.4(c), 10.6, 10.7, 11 and 12 shall survive
(a) termination or expiry of this Agreement or (b) in the event that Licensee terminates its license with respect to API pursuant
to Section 10.4, the API Termination Date with respect to such Terminated API. Except as otherwise provided in this Section 10.7,
all rights and obligations of the parties under this Agreement shall terminate upon the expiration or termination of this Agreement.

 

11.
Confidentiality and Publications

 

11.1
Confidential Information. All information of proprietary nature, including technology and know-how (“Confidential
Information”), disclosed by one party (the “Disclosing Party”) to the other party (the “Receiving
Party”) hereunder shall (a) be used solely and exclusively by the Receiving Party in a manner consistent with the licenses
and rights granted hereunder; (b) be maintained in confidence by the Receiving Party; and (c) not be disclosed to any third party
or used for any purpose except to exercise its rights and perform its obligations under this Agreement. The foregoing confidentiality
obligations shall not apply if the Receiving Party can demonstrate by competent written evidence that such information: (i) is
known by the Receiving Party at the time of its receipt and, not through a prior disclosure by the Disclosing Party, as documented
by the Receiving Party’s business records; (ii) is in the public domain other than as a result of any breach of this Agreement
by the Receiving Party; (iii) is subsequently disclosed to the Receiving Party on a non-confidential basis by a third party who
may lawfully do so; or (iv) is independently discovered or developed by the Receiving Party without the use of Confidential Information
provided by the Disclosing Party, as documented by the Receiving Party’s business records. Within thirty (30) days after
any expiration or termination of this Agreement, Receiving Party shall destroy (and certify to the Disclosing Party such destruction)
or return all Confidential Information provided by the Disclosing Party except as otherwise set forth in this Agreement. One (1)
copy of the Confidential Information may be retained in the Receiving Party’s files solely for archival purposes as a means
of determining any continuing or surviving obligations under this Agreement. The confidential obligations under this Agreement
shall survive this Agreement for a period of five (5) years.

 

11.2
Press Release. Each party may disclose to third parties or make public statements, by press release or otherwise, regarding
the existence of this Agreement, the identity of the parties, the terms, conditions and subject matter of this Agreement, or otherwise
in reference to this Agreement, provided such disclosures or statements are accurate and complete with respect to the subject
matter thereof and the information disclosed therein.

 

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11.3
Use of Name. Except as provided for under Section 11.2, neither party shall use the other party’s name, logo or trademarks
for any purpose including without limitation publicity or advertising, except with the prior written consent of the other party.

 

12.
Miscellaneous

 

12.1
Agency. Neither party is, nor will be deemed to be, an employee, agent or representative of the other party for any purpose.
Each party is an independent contractor, not an employee or partner of the other party. Neither party shall have the authority
to speak for, represent or obligate the other party in any way without prior written authority from the other party.

 

12.2
Entire Understanding. This Agreement embodies the entire understanding of the parties with respect to the subject matter
hereof and supersedes all previous communications, representations or understandings, and agreements, whether oral or written,
between the parties relating to the subject matter hereof.

 

12.3
Severability. The parties hereby expressly state that it is not their intention to violate any applicable rule, law or
regulation. If any of the provisions of this Agreement are held to be void or unenforceable with regard to any particular country
by a court of competent jurisdiction, then, to the extent possible, such void or unenforceable provision shall be replaced by
a valid and enforceable provision which will achieve as far as possible the economic business intentions of the Parties. The provisions
held to be void or unenforceable shall remain, however, in full force and effect with regard to all other countries. All other
provisions of this Agreement shall remain in full force and effect.

 

12.4
Notices

 

(a)
Any notice or other communication to be given under this Agreement, unless otherwise specified, shall be in writing and shall
be deemed to have been provided when delivered to the addressee at the address listed below (i) on the date of delivery if delivered
in person or (ii) three days after mailing by registered or certified mail, postage paid:

 

In
the case of Cytocom:

 

Cytocom Inc

37
North Orange Ave Suite 607

Orlando,
Florida 32801

Attention: Noreen Griffin

 

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 Facsimile:

 

In
the case of Licensee:

 

Immune
Therapeutics Inc

37
North Orange Ave Suite 607

Orlando,
Florida 32801

Attention:
Peter Anstrom

 

With
a copy to:

 

Austin
Legal Group

3990 Old Town Ave., Suit A-112

San
Diego CA 92110

U.S.A.

Attention:
Gina Austin

 

(b)
Either party may change its address for communications by a notice in writing to the other party in accordance with this Section
12.4.

 

12.5
Governing Law. This Agreement is made in accordance with and shall be governed and construed under the laws of Florida,
without regard to its choice of law principles.

 

12.6
Arbitration

 

(a)
All disputes arising out of or in connection with the present Agreement shall be finally settled under the Rules of Arbitration
of the International Chamber of Commerce by three arbitrators.

 

(b)
Each party shall nominate one arbitrator. Should the claimant fail to appoint an arbitrator in the Request for Arbitration within
thirty (30) days of being requested to do so, or if the respondent should fail to appoint an arbitrator in its Answer to the Request
for Arbitration within thirty (30) days of being requested to do so, the other party shall request the ICC Court to make such
appointment.

 

(c)
The arbitrators nominated by the parties shall, within thirty (30) days from the appointment of the arbitrator nominated in the
Answer to the Request for Arbitration, and after consultation with the parties, agree and appoint a third arbitrator, who will
act as a chairman of the Arbitral Tribunal. Should such procedure not result in an appointment within the thirty (30) day time
limit, either party shall be free to request the ICC Court to appoint the third arbitrator.

 

(d)
Orlando, Florida shall be the seat of the arbitration.

 

(e)
The language of the arbitration shall be English. Documents submitted in the arbitration (the originals of which are not in English)
shall be submitted together with an English translation.

 

(f)
This arbitration agreement does not preclude either party seeking conservatory or interim measures from any court of competent
jurisdiction including, without limitation, the courts having jurisdiction by reason of either party’s domicile. Conservatory
or interim measures sought by either party in any one or more jurisdictions shall not preclude the Arbitral Tribunal granting
conservatory or interim measures. Conservatory or interim measures sought by either party before the Arbitral Tribunal shall not
preclude any court of competent jurisdiction granting conservatory or interim measures.

 

(g)
In the event that any issue shall arise which is not clearly provided for in this arbitration agreement the matter shall be resolved
in accordance with the ICC Arbitration Rules.

 

12.7
Assignment. Cytocom is entitled to transfer and assign this Agreement and the rights and obligations under this Agreement
on notice to Licensee. Licensee is not entitled to transfer or assign this Agreement or the rights and obligations under this
Agreement.

 

12.8
Amendment. No amendment or modification hereof shall be valid or binding upon the parties unless made in writing and signed
by both parties.

 

[signatures
appear on following page]

 

    	22

     

    

 

Execution
Copy

 

IN
WITNESS WHEREOF, the parties hereto have executed this License Agreement as of the Effective Date.

 

	 	Cytocom
    Inc
	 	 	 
	 	By:	              
	 	Name:	 
	 	Title:
    	 
	 	Date:	 
	 	 	 
	 	Immune
    Therapeutics Inc 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:
    	 
	 	Date:	 

 

    	 

     

    

 

Execution
Copy

Appendix
1

 

Territory

 

	1.	Argentina
    	37.	Kenya	64.	Sudan
	2.	Angola	38.	Kiribati	65.	Swaziland
	3.	Antigua
    and Barbuda	39.	Lesotho	66.	Tajikistan
	4.	Benin	40.	Liberia	67.	Tanzania,
    U. Rep. of
	5.	Bhutan	41.	Madagascar	68.	Togo
	6.	Bolivia	42.	Malawi	69.	Uruguay
	7.	Botswana	43.	Mali	70.	Tonga
	8.	Burkina
    Faso	44.	Mauritania	71.	Uganda
	9.	Burundi	45.	Mauritius	72.	Uzbekistan
	10.	Brazil	46.	Mozambique	73.	Vanuatu
	11.	Cameroon	47.	Namibia	74.	Venezuela
    
	12.	Cape
    Verde	48.	Nicaragua	75.	Zambia
	13.	Central
    African Republic	49.	Niger	76.	Zimbabwe
	14.	Chad	50.	Nigeria	 	 
	15.	Chile
    	51.	Pakistan	 	 
	16.	Congo,
    Rep	52.	Peru
    	 	 
	17.	Congo,
    Dem. Rep. of 	53.	Rwanda	 	 
	18.	Côte
    d’Ivoire	54.	São
    Tomé and Príncipe	 	 
	19.	Columbia
    	55.	Senegal	 	 
	20.	Coro	56.	Seychelles	 	 
	21.	Cuba	57.	Sierra
    Leone	 	 
	22.	Djibouti	58.	Solomon
    Islands	 	 
	23.	Dominica	59.	Somalia	 	 
	24.	Eritrea	60.	South
    Africa	 	 
	25.	Ethiopia	61.	South
    Sudan	 	 
	26.	Equatorial
    Guinea	62.	Sri
    Lanka	 	 
	27.	Ecuador
    	63.	St.
    Vincent and the Grenadines	 	 
	28.	Gabon	 	 	 	 
	29.	Gambia	 	 	 	 
	30.	Ghana	 	 	 	 
	31.	Guatemala	 	 	 	 
	32.	Guinea	 	 	 	 
	33.	Guinea-Bissau	 	 	 	 
	34.	Guyana	 	 	 	 
	35.	Haiti	 	 	 	 
	36.	Honduras	 	 	 	 

 

    	 	24	 

     

    

 

Execution
Copy

 

Appendix
2

 

Patents

 

Appendix
3

 

Terms
for Technology Transfer

 

Cytocom
will make the following information available to Licensee in accordance with Section 5.5 to fully enable Licensee to
manufacture API, NTX Product, NTX/MENK Product and MENK Product, as applicable, at commercial-scale quantities and in
compliance with Cytocom’s required quality specifications:

 

	1.	Manufacturing
    process descriptions, specifications and methods;
	 	 
	2.	Stability
    data;
	 	 
	3.	Analytical
    method validation; and
	 	 
	4.	Discussion
    of impurities.

 

    	25

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