Document:

Ex
10.1

 

TERM
SHEET

Proposed
Terms of Transaction

 

This
term sheet (“Term Sheet”) sets forth certain material terms for the contribution of Lenders and Immune Therapeutics Inc (“IMUN”)
(collectively, the “Transaction”).

 

Subject
to the foregoing, the parties propose to negotiate in good faith to agree upon the terms of any required agreements for the Transaction
that will provide for and/or incorporate the following:

 

	Proposed
    Transaction	Lenders
    will loan the Company a minimum of $700,000 and up to $1,500,000.00 (the “Loan”) in exchange for non-convertible promissory
    notes (each a “New Note” and collectively as, the “New Notes”) in favor of each Lender in the amount loaned
    by each Lender. The New Notes will bear simple interest at the rate of 5% per annum and mature twelve (12) months from the dates
    of their respective issuances. The Company, with Lender approval, will have the option to extend such maturity for an additional
    six (6) months. Each Lender will have the option to draw down and apply the balance of its New Note, or a portion thereof, to exercise
    the existing warrants held by the Lender (“Existing Warrants”) according to the terms of the Existing Warrants. As a
    condition to the Lenders making the Loan contemplated hereby (“Closing”), the Company will agree to attempt to resolve
    certain debt on its books in accordance with this term sheet. As a condition to the Company settling such debt, Forte Biotechnology
    Intl Corp. (“Forte”) and Cytocom, Inc. (“CYTO” or “Cytocom”) must complete the assumption of
    certain obligations, as herein detailed and previously agreed between the Company and Forte and CYTO, respectively.
	 	 
	Lenders	The
    Lenders and the amount of the Loan to be paid by each Lender are listed on Exhibit A hereto. Each Lender will execute a lock up agreement
    with the Company for a period of twelve (12) months. The Lenders will also file Forms 3, 4 and 5 and Schedules 13D with the SEC,
    as appropriate, indicating that they are acting as a group and collectively hold more than 10% of the Company’s securities
    and should be considered the company’s affiliates.

 

    	 	 	 

    	 

    

 

	Existing
    Promissory Notes 	The
    Company will offer certain existing note holders, as listed on Exhibit B hereto, (each an “Existing Note Holder,” and
    collectively as, the “Existing Note Holders”) the right to amend their notes (each an “Existing Promissory Note,”
    and collectively as, the “Existing Promissory Notes”) to (i) extend the maturity of each Existing Promissory Note to
    twelve (12) months from Closing, with the Company’s ability to extend such maturity on any given Existing Promissory Note an
    additional six (6) months with the approval of the applicable Existing Note Holder, (ii) provide for 5% interest per annum, and (iii)
    allow for the conversion of the principal and accrued interest of the Existing Promissory Notes at a rate of $0.05 per common share
    once the Company’s intended 1,000 to 1 reverse stock split is approved by FINRA (the “Reverse Split”), which conversion
    shall be automatic upon FINRA’s approval of the Reverse Split. In addition, upon approval of the Reverse Split by FINRA, all
    unexercised warrants held by Existing Note Holders will be automatically exercised either through a cash payment or by crediting
    the principal balance and/or accrued interest on their Existing Promissory Notes. The Existing Note Holders will agree to a six (6)
    month lock up of their conversion shares, excepting certain private transfers.
	 	 
	Former
    Employees	The
    Company will offer former employees who hold deferred compensation on the books of the Company the opportunity to settle a portion
    of the amounts owed them for common shares of the Company, as detailed in Exhibit C. The remaining deferred compensation held by
    such former employees will be transferred to Forte. The former employees will be required to execute settlement agreements with the
    Company at Closing, which settlement and the issuance of shares will be conditioned upon approval of the Reverse Split by FINRA.
    If the Reverse Split is not approved by FINRA, the former employees and Company will work together to reach a new settlement.
	 	 
	CEO/Board
    Members	The
    Company will offer its current CEO and board of director members who hold deferred compensation on the books of the Company the opportunity
    to settle the amounts owed them for common shares of the Company, as detailed in Exhibit D. The CEO and board members will be required
    to execute settlement agreements with the Company at Closing, which settlement and the issuance of shares will be conditioned upon
    approval of the Reverse Split by FINRA. If the Reverse Split is not approved by FINRA, the CEO, board members and Company will work
    together to reach a new settlement.
	 	 
	Accounts
    Payable and Accruals	The
    Company will offer certain persons who hold accounts payable and accruals with the Company the right to convert their amounts due
    into common stock of the Company, as detailed on Exhibit E hereto.

     

    Each
    recipient will execute a settlement agreement with the Company at Closing.

	 	 
	Cytocom
    Assignments and License/Forte Assignments	As
    a condition to the Company’s obligations to settle existing debt on the terms herein provided, (i) Cytocom will assume certain
    obligations of the Company as detailed on Exhibit F, (ii) Cytocom must formally rescind its default notice to the Company of the
    license from Cytocom to the Company and restore the license to the Company in full force and effect, (iii) Forte must complete its
    assumption of debt as previously agreed between Forte and the Company, as detailed on Exhibit G hereto, and (iv) Forte must issue
    the Company 15% of Forte’s issued and outstanding stock, as previously agreed between Forte and the Company.

     

    Each
    of Cytocom and Forte will be required to execute a separate assignment and assumption agreement approved by their respective boards
    and the obligation holders. Each holder of an obligation transferred to Forte or CYTO will be required to execute a settlement agreement
    with the Company at Closing for the amount of the obligation being transferred.

 

    	 	 	 

    	 

    

 

	FINRA	The
    Company will diligently pursue approval of the Reverse Split by FINRA.
	 	 
	Taxes	Each
    person and the Company will be responsible for reporting and paying their tax obligations resulting from the transactions contemplated
    hereby. Tax obligations shall be based on the value of consideration received (e.g. all shares distributed as part of a settlement
    will be valued at $.05 per share rather than the designated conversion rate).
	 	 
	Management	Roscoe
    Moore and Kevin Phelps will be invited to remain as board members and Kevin Phelps will remain as chief executive officer at least
    until such time as new members are elected to the board of directors under the same financial compensation terms from January 1,
    2021 as contained in his existing employment contract dated July 22, 2020. Until such time as new Board Members are elected as noted
    below, the Lenders will appoint two individuals to act as board advisors with such responsibilities as agreed between Lenders and
    the Company. Mr. Phelps will be granted a $100,000 promissory note as severance, including any required employment tax payments due
    from the Company. The Note will bear simple interest at the rate of 5% per annum and mature twelve (12) months from the dates of
    their respective issuances. The Company will hold its annual meeting for the appointment of new board members and management promptly
    following Closing of the Loan and shall file a Proxy Statement on Schedule 14A within 45 days of the closing of this transaction.
	 	 
	Registration
    of Shares	The
    Company will provide customary demand and piggyback registration rights relating to the registration of the Lenders’ shares
    resulting from exercise of their warrants, on a pro rata basis, up to the amount permitted by law.
	 	 
	Confidentiality
    & Disclosures	This
    term sheet, the terms hereof and the Proposed Transaction contemplated hereby are highly confidential and comprise material non-public
    information with respect to the Company, and therefore the parties shall not trade in securities of the Company until all such information
    has been publicly disclosed.

     

    The
    Company will disclose the existence of this term sheet upon agreement by the parties to the extent determined necessary by Company’s
    legal counsel. The Company will also disclose the definitive agreements at the completion of the Proposed Transactions to the extent
    determined necessary by Company’s legal counsel.

	 	 
	Definitive
    Agreements and Closing	Upon
    acceptance by the Lenders, the Company will instruct its counsel to prepare the definitive documents required to complete the Proposed
    Transactions as soon as possible. The definitive agreements will contain standard representations and warranties, including securities
    representations and warranties, including that each recipient is acquiring the securities for his/her/its own account and not with
    a view towards distribution.Exhibit 10.1

 

Execution Version

 

[FMBI Letterhead]

 

May 30, 2021

 

Michael L. Scudder

At the address on file with the Corporation

 

Dear Michael:

 

Reference is made to the Agreement
and Plan of Merger, dated as of May 30, 2021, between First Midwest Bancorp, Inc. (the “Corporation”) and
Old National Bancorp (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Merger
Agreement”), your Amended and Restated Employment Agreement with the Corporation, dated January 18, 2019 (your “Employment
Agreement”) and your Confidentiality and Restrictive Covenants Agreement with the Corporation and First Midwest Bank, dated
January 18, 2018 (your “CCR Agreement”). Capitalized terms used and not otherwise defined herein have the respective
meanings ascribed to them in the Merger Agreement, except as otherwise noted.

 

As you are aware, the Merger
Agreement contemplates that, as of the Closing Date, (a) Mr. James C. Ryan, III will serve as the Chief Executive Officer
of the Surviving Corporation and (b) you will no longer serve as Chief Executive Officer but will serve as Executive Chairman of
the Board of Directors of the Surviving Corporation (the “Board”) from the Closing Date to the second (2nd)
anniversary of the Closing Date (the “Initial Period”). Upon the second (2nd) anniversary of the Closing
Date, you will cease to serve as the Executive Chairman of the Board and will commence serving as a consultant to the Surviving Corporation
through the third (3rd) anniversary of the Closing Date) (the “Consultancy Period”, and together with the
Initial Period, the “Service Period”).

 

This letter agreement confirms
to you, and you agree that your Employment Agreement and CCR Agreement shall be amended as follows:

 

Compensation During Service
Period. Your compensation for service with the Surviving Corporation shall be established by the Compensation Committee of the Surviving
Corporation; provided, that for the Service Period, your salary, annual bonus and annual equity award grants shall be set at ninety percent
(90%) of the Chief Executive Officer’s salary, annual bonus and annual equity award grants (your annual bonus for the third (3rd)
year of the Service Period shall be pro-rated based on time worked during the calendar year of termination). For the Service Period, you
will continue to receive the same perquisites, office space and administrative support as were made available to you by the Corporation
on the same basis as were provided to you immediately before the Closing Date. Your salary, annual bonus and annual equity award grants
as set forth herein will be in lieu of any such compensation payable under your Employment Agreement.

 

     

     

    

 

For purposes of the First Midwest
Bancorp Consolidated Pension Plan, you will be credited with one additional year of age at retirement with respect to your service during
the Consultancy Period, provided that if such crediting is not permitted under the plan, the Surviving Corporation will pay you a supplemental
equivalent payment at the end of the Initial Period in lieu thereof. Additionally, during the Consultancy Period, you will continue to
be entitled to indemnification by the Surviving Corporation to the same extent as other officers, and the Surviving Corporation will maintain
directors’ and officers’ liability insurance for you to the same extent as other officers.

 

If, prior to the expiration
of the Service Period, your service as Executive Chairman or consultant with the Company is terminated (1) by the Company without
Cause (as defined in your Employment Agreement) or (2) by you for Good Reason (as defined in your Employment Agreement, but subject
to the section entitled “Waiver of Good Reason” below), any unpaid salary and annual bonus (based on target) and ungranted
annual equity awards (based on prior year award dollar value) for the entire Service Period will be paid to you in full in cash and any
equity awards of the Surviving Corporation that are outstanding will accelerate and vest in full; provided that, any equity awards of
the Surviving Corporation subject to a performance condition or requirement will remain subject to such performance condition or requirement,
subject to delivery to the Corporation of an executed Release and Severance Agreement (as defined in your Employment Agreement). You acknowledge
and agree that the amounts owed to you under this paragraph will be paid in lieu of any amounts that you would have been entitled to receive
under Section 8 of your Employment Agreement and you will receive no further severance after the Closing Date under Section 8
of your Employment Agreement.

 

Upon the end of the Service
Period, you will receive a pro-rated annual bonus (based on time worked during the calendar year of termination and target performance)
and any equity awards of the Surviving Corporation that are outstanding will accelerate and vest in full; provided that, any equity awards
of the Surviving Corporation subject to a performance condition or requirement will remain subject to such performance condition or requirement.

 

Upon termination of your service
with the Corporation for any reason, you will continue to be eligible to receive the post-employment health benefits coverage as contemplated
by Section 6(c) of your Employment Agreement.

 

Retention Bonus. You
will be granted a cash-based retention award equal to $5.4 million (the “Retention Bonus”). The Retention Bonus will
be paid fifty percent (50%) on the first anniversary of the Closing Date and fifty percent (50%) on the second anniversary of the Closing
Date, commencing on the Closing Date, subject only to your continued service with the Surviving Corporation. The unpaid portion of your
Retention Bonus will be paid to you in a lump sum in full upon (1) early termination of service by the Corporation without Cause
(as defined in your Employment Agreement) or due to your death or disability (as determined under your Employment Agreement) or (2) a
resignation by you for Good Reason (as defined in your Employment Agreement, but subject to the section entitled “Waiver of Good
Reason” below). You acknowledge and agree that the Retention Bonus will be paid in lieu of any amounts that you would have been
entitled to receive under Section 8 of your Employment Agreement and you hereby expressly waive all rights to any payments and/or
benefits under Section 8 of your Employment Agreement with respect to the transactions contemplated under the Merger Agreement.

 

     

     

    

 

Outstanding Equity Awards.
Your Corporation equity awards will be converted into equity awards of the Surviving Corporation as set forth in Section 1.8 of the
Merger Agreement. Upon (1) early termination of service by the Corporation without Cause (as defined in your Employment Agreement)
or due to death or disability (as determined in your Employment Agreement) or (2) a resignation by you for Good Reason (as defined
in your Employment Agreement, but subject to the section entitled “Waiver of Good Reason” below), any of your unvested equity
awards of the Corporation that were outstanding on the Closing Date will accelerate and vest in full.

 

Waiver of Good Reason. You
acknowledge and agree that your removal from the role of Chief Executive Officer of the Corporation and any other changes in your responsibilities
and/or duties at the Closing Date will not constitute Good Reason under your Employment Agreement.

 

Restrictive Covenants. You
acknowledge and agree that your confidentiality obligations and restrictive covenants under your CCR Agreement remain in full force and
effective. You further agree that, in consideration of the compensation to be paid to you under this letter agreement, Section 3.1
of your CCR Agreement shall be amended such that the non-competition obligations set forth therein shall apply for a period of five (5) years
after the Closing Date and Section 3.3(b) of your CCR Agreement shall be amended to eliminate the words “was staffed with
at least 15 employees engaged in banking or other financial services”. You acknowledge and recognize the highly competitive nature
of the Corporation’s business, that access to confidential information renders you special and unique within the Corporation’s
industry, and that you have had the opportunity to develop substantial relationships with existing and prospective clients, accounts,
customers, consultants, contractors, investors, and strategic partners of the Company during the course of and as a result of your employment
with the Corporation. In light of and in consideration for the foregoing, and in consideration of the compensation provided under this
letter agreement, you acknowledge and agree that amended restriction set forth in above is reasonable and valid in duration and geographic
scope and in all other respects and is essential to protect the value of the business and assets of the Corporation. You further acknowledge
that such restriction will not materially interfere with your ability to earn a living following the Closing Date.

 

Miscellaneous. Except
as set forth above, the terms of your Employment Agreement and CCR Agreement remain in full force and effect (it being understood that
you will remain eligible to participate in the various retirement, welfare, fringe benefit, perquisites and expense reimbursement plans,
benefit plans, programs and arrangements of the Corporation that you participate in as of the Closing Date, subject to any amendments
thereto or replacements thereof).

 

The effectiveness of this letter
agreement shall be conditioned upon the Closing. In the event that the Merger Agreement terminates prior to Closing, this letter agreement
shall be void ab initio.

 

[Signature Pages Follow]

 

     

     

    

 

	

	Sincerely,
	 	 
	 	FIRST MIDWEST BANCORP, INC.
	 
	 
	 	/s/ Patrick S. Barrett
	 	By:	Patrick S. Barrett
	
     
	Title:
	Executive Vice President and Chief

Financial Officer

 

	AGREED AND ACCEPTED:	 
	EXECUTIVE	 
	 	 
	/s/ Michael L. Scudder	 
	Michael L. Scudder	 

 

[Signature Page to Letter
Agreement]

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