Document:

EXPLANATORY NOTE: [*] INDICATES THE PORTIONS OF THIS EXHIBIT
THAT HAVE BEEN OMITTED BECAUSE THEY ARE BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IN PUBLICLY DISCLOSED.

 

Exhibit 10.15

 

 

 

LICENSE AGREEMENT

 

This LICENSE AGREEMENT (this “Agreement”)
is made as of March 6, 2018 (the “Effective Date”), by and between Aptose Biosciences Inc., a Canadian
corporation (“Aptose”), having a place of business at 12770 High Bluff Drive, Suite 120, San Diego, California
92130, U.S., and Ohm Oncology Inc., a Delaware corporation (“Ohm”), having its principal place of business
at 4010 Moorpark Ave, Suite 226, San Jose, California 95117, U.S. Laxai Avanti Life Science Pvt. Ltd. (“LALS”),
an Affiliate of Ohm, having its principal place of business at 2405 Robert Browning Street, Austin, TX, 78723, U.S., is a party
to this Agreement solely for purposes of Sections 10.6 and 12.8. Ohm and Aptose are referred to in this Agreement individually
as a “Party” and collectively as the “Parties”.

 

RECITALS

 

WHEREAS, Aptose and LALS are parties to that
certain Master Services Agreement, dated October 7, 2015 (the “MSA”), including a Project Plan (as defined in
the MSA) thereunder entitled “Discovery and preclinical development of a dual targeting BRD4 BD1 and another rational kinase
target through IND-enabling studies,” pursuant to which Aptose and LALS conducted a development program funded by Aptose
to discover and preclinically develop dual bromodomain and extraterminal domain (BET) protein and kinase inhibitor compounds (the
“Development Program”);

 

WHEREAS, the Development Program was terminated
by Aptose at the stage of lead selection because the compounds, including APL-581, did not satisfy the lead candidate criteria
pre-established by Aptose;

 

WHEREAS, Ohm desires to obtain an exclusive,
worldwide license under Aptose’s intellectual property rights related to such inhibitor compounds, to develop, manufacture
and commercialize such compounds, and Aptose is willing to grant such license, all under the terms and conditions set forth herein;
and

 

WHEREAS, Aptose and Ohm are parties to a term
sheet dated September 5, 2017 (the “Term Sheet”), pursuant to which Ohm paid $10,000 to Aptose in consideration
for an exclusive sixty (60)-day negotiation period in which the Parties negotiated this Agreement, which payment is creditable
against the upfront payment from Ohm under this Agreement;

 

NOW, THEREFORE, in consideration of the foregoing
premises and the mutual covenants contained herein, the receipt and sufficiency of which are hereby acknowledged, Ohm and Aptose
hereby agree as follows:

 

 

     

     

    

 

Article
1

DEFINITIONS

 

The terms in this Agreement with initial letters
capitalized shall have the meanings set forth below, or the meanings as designated in the indicated places throughout this Agreement.

 

1.1             
“Advisory Committee” is defined in Section 3.1.

 

1.2             
“Affiliate” means, with respect to a Party, any Person that controls, is controlled by, or is under
common control with that Party. For the purpose of this definition, “control” (including, with correlative meaning,
the terms “controlled by” and “under common control”) means the actual power, either directly or indirectly
through one or more intermediaries, to direct or cause the direction of the management and policies of such Person, whether by
ownership of more than fifty percent (50%) of the voting stock of such Person, by contract or otherwise.

 

1.3             
“Anti-Corruption Laws” means laws and regulations regarding corruption, bribery, kickbacks, ethical
business conduct, fraud and money laundering.

 

1.4             
“Aptose Indemnitees” is defined in Section 10.2.

 

1.5             
“Aptose IP” means the Aptose Know-How and Aptose Patents.

 

1.6             
“Aptose Know-How” means all Know-How Controlled by Aptose or its Affiliates as of the Effective Date
that is related to any Licensed Compound.

 

1.7             
“Aptose Patents” means all Patent Rights Controlled by Aptose or its Affiliates as of the Effective
Date that cover or claim the composition, manufacture or use of any Licensed Compound. The Aptose Patents are listed on Exhibit
A.

 

1.8             
“BTK” means Bruton’s tyrosine kinase, including wild type and all mutant forms.

 

1.9             
“Claims” means all Third Party demands, claims, actions, proceedings and liabilities (whether criminal
or civil, in contract, tort or otherwise).

 

1.10         
“Combination Product” means a Product that contains a Licensed Compound and at least one other active
ingredient that is not a Licensed Compound (such other active ingredient(s), the “Other Active(s)”), formulated
together (i.e., a fixed dose combination).

 

1.11         
“Commercialize” or “Commercialization” means all activities directed to marketing,
promoting, distributing, detailing or selling a Product (as well as manufacturing, importing and exporting activities in connection
therewith).

 

1.12         
“Commercialization Plan” is defined in Section 5.3.

 

1.13         
“Confidential Information” of a Party means all Know-How, unpublished patent applications and other
information and data of a financial, commercial, business, operational or technical nature of such Party that is: (a) disclosed
by or on behalf of such Party or any of its Affiliates or otherwise made available to the other Party or any of its Affiliates,
whether made available orally, in writing or in electronic form; or (b) learned by the other Party pursuant to this Agreement.
The existence and terms of this Agreement are the Confidential Information of both Parties. In addition, all Confidential Information
(as defined in the MSA or Consulting Agreement, as applicable) of a Party or its Affiliate under the MSA or under that certain
Consulting Agreement between the Parties or their respective Affiliates, dated July 23, 2015, will be deemed such Party’s
Confidential Information under this Agreement.

 

    2

     

    

 

1.14         
“Control” or “Controlled” means, with respect to any Know-How, Patent Rights or
other intellectual property rights, that a Party has the legal authority or right (whether by ownership, license or otherwise)
to grant a license, sublicense, access or other right (as applicable) under such Know-How, Patent Rights or other intellectual
property rights to the other Party on the terms and conditions set forth herein, in each case without breaching the terms of any
agreement with a Third Party.

 

1.15         
“Develop” or “Development” means all research and development activities for any
Licensed Compound or Product, including all preclinical and clinical studies of Licensed Compounds or Products, manufacturing development,
process development, toxicology studies, distribution of Licensed Compound or Product for use in clinical trials, statistical analyses,
and the preparation, filing and prosecution of any Marketing Approval Application for any Product, as well as all regulatory affairs
related to any of the foregoing.

 

1.16         
“Development Plan” is defined in Section 4.3.

 

1.17         
“Diligent Efforts” means: (a) where applied to carrying out specific tasks and obligations
of a Party under this Agreement, expending commercially reasonable, diligent, sustained, good faith efforts and resources to accomplish
such task or obligation as a similarly situated company (on its own or acting through any of its Affiliates, sublicensees or subcontractors)
would normally use to accomplish a similar task or obligation under similar circumstances; and (b) where applied to Development
or Commercialization of a Product, the use of commercially reasonable, diligent, sustained, good faith efforts and resources, in
an active and ongoing program, as normally used by a similarly situated company for a product discovered or identified internally
by such company, which product is at a similar stage in its development or product life and is of similar market potential.

 

1.18         
“Disclosing Party” is defined in Section 8.1(a).

 

1.19         
“Dollar” means U.S. dollars, and “$” shall be interpreted accordingly.

 

1.20         
“EMA” means the European Medicines Agency or any successor entity thereto.

 

1.21         
“Executive Officers” is defined in Section 3.4.

 

1.22         
“Export Control Laws” means all applicable U.S. laws and regulations relating to (a) sanctions and
embargoes imposed by the Office of Foreign Assets Control of the U.S. Department of Treasury or (b) the export or re-export of
commodities, technologies, or services, including the Export Administration Act of 1979, 24 U.S.C. §§ 2401-2420, the
International Emergency Economic Powers Act, 50 U.S.C. §§ 1701-1706, the Trading with the Enemy Act, 50 U.S.C. §§
1 et. seq., the Arms Export Control Act, 22 U.S.C. §§ 2778 and 2779, and the International Boycott Provisions of Section
999 of the U.S. Internal Revenue Code of 1986 (as amended).

 

    3

     

    

 

1.23         
“FCPA” means the U.S. Foreign Corrupt Practices Act (15 U.S.C. Section 78dd-1, et. seq.), as amended.

 

1.24         
“FDA” means the United States Food and Drug Administration or any successor entity thereto.

 

1.25         
“Field” means all fields of use.

 

1.26         
“First Commercial Sale” means, with respect to a Product in a country or jurisdiction in the Territory,
the first sale of such Product to a Third Party for distribution, use or consumption in such country or jurisdiction after Regulatory
Approval has been obtained for such Product in such country or jurisdiction.

 

1.27         
“FLT3” means FMS-like tyrosine kinase 3, including wild type and all mutant forms.

 

1.28         
“Generic Product” means, with respect to a particular Product and regulatory jurisdiction, any pharmaceutical
product that (a) is lawfully sold in such jurisdiction by a Third Party that is not a sublicensee of Ohm, and is not acting on
behalf of, and did not purchase such product in a chain of distribution that included, Ohm or any of its Affiliates or sublicensees,
(b) contains the same active ingredient(s) as such Product, in the same formulation and dosage form as such Product and for the
same route of administration as such Product, (c) may legally be substituted in filling a prescription for such Product in such
jurisdiction, and (d) is approved under Section 505(j) of the U.S. Federal Food, Drug, and Cosmetic Act (or a successor law) or
similar law in the applicable jurisdiction for an indication for which such Product obtained Regulatory Approval, in each case
where such approval is in reliance on the prior approval of such Product for the applicable indication granted to Ohm or its Affiliate
or sublicensee by the applicable Regulatory Authority, in each case without any requirement to conduct clinical trial(s) to establish
the efficacy of such product.

 

1.29         
“Good Laboratory Practices” or “GLP” means the then-current standards, practices
and procedures promulgated or endorsed by the FDA as set forth in 21 C.F.R. Part 58 (or any successor statute or regulation), including
related regulatory requirements imposed by the FDA, and comparable regulatory standards, practices and procedures promulgated by
any other Regulatory Authority applicable to the Territory, as they may be updated from time to time, including applicable guidelines
promulgated under the International Conference on Harmonisation.

 

1.30         
“Governmental Authority” means any federal, state, national, provincial or local government, or political
subdivision thereof, or any multinational organization or any authority, agency or commission entitled to exercise any administrative,
executive, judicial, legislative, police, regulatory or taxing authority or power, any court or tribunal (or any department, bureau
or division thereof, or any governmental arbitrator or arbitral body).

 

1.31         
“IFRS” means International Financial Reporting Standards.

 

1.32         
“IND” means any investigational new drug application, clinical trial application, clinical trial
exemption or similar or equivalent application or submission for approval to conduct human clinical investigation filed with or
submitted to a Regulatory Authority in conformance with the requirements of such Regulatory Authority.

 

    4

     

    

 

1.33         
“Indemnified Party” is defined in Section 10.3.

 

1.34         
“Indemnifying Party” is defined in Section 10.3.

 

1.35         
“Initiation” means, with respect to a clinical trial of a Product, the first dosing of the first
subject in such clinical trial.

 

1.36         
“Invention” means any process, method, composition of matter, article of manufacture, discovery or
finding, patentable or otherwise, that is invented as a result of a Party exercising its rights or carrying out its obligations
as contemplated by this Agreement, whether directly or via its Affiliates, agents or independent contractors, including all rights,
title and interest in and to the intellectual property rights therein.

 

1.37         
“Joint Inventions” is defined in Section 7.1.

 

1.38         
“Joint Patents” is defined in Section 7.1.

 

1.39         
“Know-How” means any information, including discoveries, improvements, modifications, processes,
methods, protocols, formulas, data, inventions, know-how and trade secrets, patentable or otherwise, but excluding any Patent Rights.

 

1.40         
“Law” means any federal, state, local, foreign or multinational law, statute, standard, ordinance,
code, rule, regulation, resolution or promulgation, or any order by any Governmental Authority, or any license, franchise, permit
or similar right granted under any of the foregoing, or any similar provision having the force or effect of law.

 

1.41         
“Lead Candidate” means any Licensed Compound that satisfies the Lead Candidate Criteria, as defined
by the Advisory Committee, and/or is designated as a Lead Candidate by the Advisory Committee pursuant to Section 4.2, and/or for
which Ohm commences IND-enabling toxicology studies in compliance with GLP.

 

1.42         
“Lead Candidate Criteria” means the criteria established by the Advisory Committee pursuant to Section
4.2(a).

 

1.43         
“Licensed Compound” means (a) any compound whose composition of matter, manufacture or use is claimed
by the Aptose Patents listed in Exhibit A, (b) any compound that was synthesized under the Development Program, including the compound
referred to as APL-581, (c) any compound that is a derivative of a compound synthesized under the Development Program, and (d)
any salt, hydrate, solvate, ester, free acid or base, polymorph, isomer, enantiomer, derivative, prodrug or metabolite of any of
the foregoing compounds. For clarity, a Licensed Compound may have a mode of action(s) that does not include inhibition of the
bromodomain family or kinase family of proteins.

 

1.44         
“Losses” means all losses, damages, reasonable legal costs and other reasonable expenses of any nature.

 

    5

     

    

 

1.45         
“MAA” or “Marketing Authorization Application” means an application to the appropriate
Regulatory Authority for approval to commercially sell a Product (but excluding Pricing Approval) in the Field in a particular
jurisdiction, and all amendments and supplements thereto, including an NDA in the U.S.

 

1.46         
“Manufacture” or “Manufacturing” means activities directed to manufacturing, processing,
filling, finishing, packaging, labeling, quality control, quality assurance testing and release, post-marketing validation testing,
inventory control and management, storing and transporting any Licensed Compound or Product.

 

1.47         
“NDA” means a New Drug Application, as defined in the Federal Food, Drug, and Cosmetic Act and applicable
regulations promulgated thereunder by the FDA, and all amendments and supplements thereto.

 

1.48         
“Net Sales” means, with respect to any Product, (a) the gross amounts invoiced by Ohm and its Affiliates
and sublicensees for sales of such Product, less (b) eight percent (8%) of such gross amounts invoiced, which represents shipping
and freight charges, taxes, returns, chargebacks and other customary deductions.

 

Sales between Ohm and its Affiliates and sublicensees
shall be disregarded for purposes of calculating Net Sales except if such purchaser is an end user.

 

With respect to any sale of any Product in a
given country for less than fair market value or for any substantive consideration other than monetary consideration on arm’s
length terms (which has the effect of reducing the invoiced amount below what it would have been in the absence of such non-monetary
consideration), for purposes of calculating the Net Sales under this Agreement, such Product shall be deemed to be sold exclusively
for cash at the average price charged to Third Parties for cash sales in such country during the applicable reporting period (or
if there were only de minimis cash sales in such country, at the fair market value as determined in good faith based on pricing
in comparable markets). Notwithstanding the foregoing, Net Sales shall not include amounts (whether actually existing or deemed
to exist for purposes of calculation) for Products distributed at no charge for use in clinical trials or as complimentary samples.

 

Net Sales shall be calculated on an accrual
basis, in a manner consistent with the selling party’s accounting policies for external reporting purposes, as consistently
applied, in accordance with IFRS.  To the extent any accrued amounts used in the calculation of Net Sales are estimates, such
estimates shall be trued-up in accordance with Ohm’s accounting policies for external reporting purposes, as consistently
applied, and Net Sales and related payments under this Agreement shall be reconciled as appropriate.

 

Ohm and its Affiliates and sublicensees shall
not sell any Product in combination with or as part of a bundle with other products, or offer packaged arrangements to customers
that include a Product, in such a manner as to disproportionately discount the selling price of such Product as compared with the
weighted-average discount applied to the other products, as a percent of the respective list prices (or if not available, a good
faith estimate thereof) of such products and such Product prior to applying the discount.

 

    6

     

    

 

Net Sales for a Combination Product in a country shall be calculated
as follows:

 

(i)       If
the Licensed Compound in such Combination Product and the Other Active(s) each are sold separately in such country in the applicable
calendar year, Net Sales will be calculated by multiplying the total Net Sales (as defined above) of the Combination Product by
the fraction A/(A+B), where A is the public or list price in such country of the Licensed Compound sold separately in the same
formulation and dosage, and B is the (sum of the) public or list price(s) in such country of the Other Active(s) sold separately
in the same formulation and dosage, during the applicable calendar year.

(ii)       If
such Licensed Compound is sold independently of the Other Active(s) in such country in such calendar year, but the public or list
price in such country of the Other Active(s) cannot be determined, Net Sales will be calculated by multiplying the total Net Sales
(as defined above) of such Combination Product by the fraction A/C, where A is the public or list price in such country of such
Licensed Product sold independently and C is the public or list price in such country of the Combination Product during the applicable
calendar year.

(iii)       If
the public or list price in such country of such Licensed Compound cannot be determined, then the Parties shall discuss in good
faith and determine the amount to be included in Net Sales, based on a reasonable allocation of the relative values of the Other
Active(s) and such Licensed Compound.

Notwithstanding the foregoing, in no event
will the Net Sales for any Combination Product and any country be reduced on account of the foregoing clauses (i), (ii) and (iii)
to less than sixty-six percent (66%) of the total Net Sales defined above prior into account clauses (i), (ii) and (iii).

 

1.49         
 “Ohm Indemnitees” is defined in Section 10.1.

 

1.50         
“Ohm IP” means all Patent Rights and Know-How that are (a) Controlled by Ohm or its Affiliates as
of the Effective Date or thereafter during the Term and (b) reasonably necessary or useful for the Development, Manufacture or
Commercialization of any Licensed Compound or Product.

 

1.51         
“Ohm Know-How” means the Know-How included in the Ohm IP, including Ohm’s interest in Joint
Inventions.

 

1.52         
“Ohm Patents” means the Patent Rights included in the Ohm IP, including Ohm’s interest in Joint
Patents.

 

1.53         
“Ohm Sole Patent” is defined in Section 7.3(b)(i).

 

1.54         
“Patent Rights” means all patents and patent applications (which for the purpose of this Agreement
shall be deemed to include certificates of invention and applications for certificates of invention), including all divisionals,
continuations, substitutions, continuations-in-part, re-examinations, reissues, additions, renewals, revalidations, extensions,
registrations, pediatric exclusivity periods and supplemental protection certificates and the like of any such patents and patent
applications, and any and all foreign equivalents of the foregoing.

 

    7

     

    

 

1.55         
“Person” means any individual, partnership, limited liability company, firm, corporation, association,
trust, unincorporated organization or other entity.

 

1.56         
“Phase 1 Clinical Trial” means a human clinical trial of a Product that would satisfy the requirements
of 21 CFR 312.21(a) or foreign equivalent, regardless of whether such trial is referred to as a “phase 1 clinical trial”
in the Development Plan.

 

1.57         
“Phase 2 Clinical Trial” means a human clinical trial of a Product that would satisfy the requirements
of 21 CFR 312.21(b) or foreign equivalent, regardless of whether such trial is referred to as a “phase 2 clinical trial”
in the Development Plan.

 

1.58         
“Phase 3 Clinical Trial” means a human clinical trial of a Product that would satisfy the requirements
of 21 CFR 312.21(c) or foreign equivalent, regardless of whether such trial is referred to as a “phase 3 clinical trial”
in the Development Plan.

 

1.59         
“Pricing Approval” means such governmental approval, agreement, determination or decision establishing
prices for a Product that can be charged or reimbursed in regulatory jurisdictions where the applicable Governmental Authorities
approve or determine the price or reimbursement of pharmaceutical products and where such approval or determination is necessary
for the commercial sale of such Product in such jurisdictions.

 

1.60         
“Product” means any pharmaceutical product that contains a Licensed Compound, alone or in combination
with one or more other active ingredients, in any formulation or dosage form and for any mode of administration. Two Products will
be considered different if they contain different Licensed Compounds.

 

1.61         
“Product Infringement” is defined in Section 7.4(a).

 

1.62         
“Product Marks” is defined in Section 7.5.

 

1.63         
“Public Official or Entity” means (a) any officer, employee (including physicians, hospital
administrators, or other healthcare professionals), agent, representative, department, agency, de facto official, representative,
corporate entity, instrumentality or subdivision of any government, military or international organization, including any ministry
or department of health or any state-owned or affiliated company or hospital, or (b) any candidate for political office, any
political party or any official of a political party.

 

1.64         
“Receiving Party” is defined in Section 8.1(a).

 

1.65         
“Regulatory Approval” means all approvals, including Pricing Approvals, that are necessary for the commercial
sale of a Product in a given country or regulatory jurisdiction.

 

1.66         
“Regulatory Authority” means any applicable Governmental Authority responsible for granting Regulatory
Approvals for Products, including the FDA, the EMA and any corresponding national or regional regulatory authorities.

 

1.67         
“Regulatory Exclusivity” means any exclusive marketing rights or data exclusivity rights conferred
by any Regulatory Authority with respect to a pharmaceutical product other than Patent Rights, including orphan drug exclusivity,
new chemical entity exclusivity, data exclusivity, pediatric exclusivity, rights conferred in the United States under the Hatch-Waxman
Act or the FDA Modernization Act of 1997, or rights similar thereto outside the United States.

 

    8

     

    

 

1.68         
“Regulatory Materials” means any regulatory application, submission, notification, communication
(including meeting minutes), correspondence, registration, briefing documents and other filings made to, received from or otherwise
conducted with a Regulatory Authority in order to Develop, Manufacture or Commercialize a Licensed Compound or Product in a particular
country or jurisdiction. “Regulatory Materials” includes any IND or Regulatory Approval.

 

1.69         
“Remainder” is defined in Section 7.4(e).

 

1.70         
“ROFN Product” means any Licensed Compound or Product that does not act mechanistically through the
inhibition of BTK and/or FLT3.

 

1.71         
“ROFR Product” means any Licensed Compound or Product that acts mechanistically through the inhibition
of BTK and/or FLT3.

 

1.72         
“Royalty Term” means, with respect to a particular Product in a particular country in the Territory,
the period commencing upon the First Commercial Sale of such Product in such country and ending upon the latest of: (a) the expiration
of the last-to-expire Valid Claim included in the Aptose Patents in such country that claims the composition of matter, manufacture
or use of such Product (including the Licensed Compound therein); (b) ten (10) years after the First Commercial Sale of such Product
in such country; or (c) the expiration of any Regulatory Exclusivity granted with respect to such Product in such country.

 

1.73         
“Sole Inventions” is defined in Section 7.1.

 

1.74         
“Term” is defined in Section 11.1.

 

1.75         
“Territory” means the world.

 

1.76         
“Third Party” means any Person other than a Party or an Affiliate of a Party.

 

1.77         
“United States” or “U.S.” means the United States of America, including its territories
and possessions.

 

1.78         
“Valid Claim” means a claim of an issued and unexpired patent (as may be extended through supplementary
protection certificate or patent term extension) or a pending patent application that has not been revoked, held invalid or unenforceable
by a patent office, court or other governmental agency of competent jurisdiction in a final and non-appealable judgment (or judgment
from which no appeal was taken within the allowable time period) and has not been disclaimed, denied or admitted to be invalid
or unenforceable through reissue, re-examination or disclaimer or otherwise.

 

    9

     

    

 

1.79         
Interpretation. In this Agreement, unless otherwise specified:

 

(a)              
“includes” and “including” shall mean respectively includes without limitation and including
without limitation;

 

(b)             
words denoting the singular shall include the plural and vice versa and words denoting any gender shall include all
genders;

 

(c)              
words such as “herein”, “hereof”, and “hereunder” refer to this Agreement as a whole
and not merely to the particular provision in which such words appear;

 

(d)             
“days” means “calendar days” unless specified as “business days”; and

 

(e)              
the Exhibits form part of the operative provision of this Agreement and references to this Agreement shall include references
to the Exhibits.

 

Article
2

LICENSES

 

2.1             
Licenses to Ohm under Aptose IP. Subject to the terms and conditions of this Agreement, Aptose hereby grants to Ohm
an exclusive (even as to Aptose), royalty-bearing, sublicenseable (solely as provided in Section 2.2) license under the Aptose
IP: (a) to Develop, make, have made and import Licensed Compounds in the Field in the Territory for the sole purpose of Developing,
making, importing, offering for sale, selling and otherwise Commercializing Products in the Field in the Territory; and (b) to
Develop, make, have made, import, offer for sale, sell and otherwise Commercialize Products in the Field in the Territory. The
foregoing license does not include any rights for Ohm directly or indirectly to (i) screen compounds for inhibition of kinase enzymes
of the FLT3 family or the BTK family, except for the activities expressly described in Sections 2.2(b) and 4.2(c) or (ii) optimize
compounds for inhibition of kinase enzymes of the FLT3 family or the BTK family. Ohm shall not, and shall ensure that its Affiliates,
sublicensees and subcontractors do not, conduct any of the activities described in the preceding sentence.

 

2.2             
Sublicenses.

 

(a)              
Sublicense Rights. Subject to the terms and conditions of this Agreement, and provided that (i) Ohm has complied with
its obligations under Sections 2.2(b), 2.3 and 2.4 and (ii) Aptose has no further rights under Section 2.3 or 2.4 with respect
to the applicable sublicense scope, Ohm shall have the right to grant sublicenses of the license granted to it under Section 2.1
to its Affiliates and Third Parties. Each sublicense granted by Ohm shall be consistent with the terms and conditions of this Agreement
and shall require such sublicensee to assign to Ohm, or to grant Ohm an exclusive, sublicenseable, worldwide license under, all
of such sublicensee’s interest in Patent Rights and Know-How that, if Controlled by Ohm, would be Ohm IP, and shall permit
such sublicensee to grant further sublicenses only under the foregoing conditions. Ohm shall be solely responsible for all of its
sublicensees’ (and their further sublicensees’) activities, including any and all failures by such sublicensees to
comply with the applicable terms and conditions of this Agreement. Prior to granting a sublicense to a Third Party, Ohm shall notify
Aptose of the applicable Third Party and scope of the anticipated sublicense and shall provide to Aptose a copy of the substantially
agreed or executed term sheet, containing all material terms of the anticipated sublicense agreement, promptly upon availability
thereof. Within thirty (30) days after the grant of a sublicense, Ohm shall notify Aptose and, if such sublicense is granted to
a Third Party, shall provide Aptose with a true and complete copy of the sublicense agreement; provided, however, the sublicense
agreement may be redacted with respect to information that is not necessary to disclose to Aptose in order to ensure Ohm’s
compliance with this Agreement.

 

    10

     

    

 

(b)             
Compound Testing. Prior to initiating discussions or negotiations with any Third Party or with Aptose with respect to
the grant of a sublicense under the license granted in Section 2.1, Ohm shall conduct characterization studies of all compounds
that would be included in the sublicense to determine their kinase inhibitory profile, including the inhibition of specific forms
of FLT3 (FLT3-ITD, FLT3-D835Y, FLT3-ITD+D835Y, FLT3-ITD+F691L) and of BTK (BTK-wild type, BTK-C481S) using the standard assay conditions
performed by Reaction Biology Corporation or equivalent procedure to characterize the molecules. Based on the results of such studies,
Ohm shall identify each tested compound as either a ROFN Product or a ROFR Product, and shall provide Aptose with the results of
each such test, including such identification, promptly after completion thereof.

 

2.3             
Aptose’s Right of First Negotiation for Licensed Compounds that do not Inhibit BTK and/or FLT3. Ohm hereby grants
Aptose a right of first negotiation for each ROFN Product as follows. Prior to entering into any negotiations with a Third Party
with respect to a license or sublicense under Ohm’s rights to any ROFN Product(s), Ohm shall notify Aptose and provide all
information useful for Aptose to determine its interest in such ROFN Product(s). If Aptose notifies Ohm in writing of its interest
in such ROFN Product(s) within fourteen (14) business days after receipt of all such information from Ohm, the Parties shall negotiate
exclusively and in good faith for a period of up to three (3) months (or such longer period as agreed by the Parties in writing)
(the “ROFN Negotiation Period”) a term sheet for a license to Aptose to Develop and Commercialize such ROFN
Product(s). If the Parties fail to reach agreement on a term sheet during the ROFN Negotiation Period, Ohm shall have the right
to negotiate the terms of and enter into a license agreement for the applicable ROFN Product(s), for the scope offered to Aptose,
with any Third Party. If, during the ROFN Negotiation Period, the Parties agree to the terms of such term sheet, the Parties shall
negotiate in good faith for an additional three (3)-month period, commencing on the date the term sheet is signed by both Parties,
to conclude a definitive agreement, and during such period, Ohm shall not enter into any discussions or negotiations with, and
shall not provide any confidential information to, a Third Party with respect to a license or sublicense under Ohm’s rights
to the applicable ROFN Product(s). For clarity, this Section 2.3 will apply to each ROFN Product and territory that Ohm desires
to license to a Third Party.

 

2.4             
Aptose’s Right of First Refusal for Licensed Compounds that Inhibit BTK and/or FLT3. Ohm hereby grants Aptose
a right of first refusal for each ROFR Product as follows. Prior to entering into any negotiations with a Third Party with respect
to a license or sublicense under Ohm’s rights to any ROFR Product(s), Ohm shall notify Aptose and provide all information
useful for Aptose to determine its interest in such ROFR Product(s). If Aptose notifies Ohm in writing of its interest in such
ROFR Product(s) within fourteen (14) business days after receipt of all such information from Ohm, the Parties shall negotiate
exclusively and in good faith for a period of up to six (6) months (or such longer period as agreed by the Parties in writing)
(the “ROFR Negotiation Period”) the terms of a license to Aptose to Develop and Commercialize such ROFR Product(s).
If Aptose does not notify Ohm of its interest in such ROFR Product(s) during the applicable time period, or notifies Ohm that it
is not interested in such ROFR Product(s), or if Aptose notifies Ohm of its interest in such ROFR Product(s) and the Parties fail
to reach agreement on the terms of a license during the ROFR Negotiation Period, then in each case Ohm shall not enter into an
agreement with a Third Party with respect to such ROFR Product(s) without first offering the same terms, as set forth in a term
sheet signed by Ohm and the Third Party, to Aptose for a period of thirty (30) days, commencing on the date on which Ohm provides
to Aptose all information then available that is useful for Aptose to determine its then-current interest in such ROFR Product(s),
including all information that has been provided or made available to the applicable Third Party (the “Review Period”).
If Aptose accepts such terms in writing within the Review Period, then Ohm shall not enter into an agreement with the applicable
Third Party, and instead the Parties shall promptly enter into a license agreement for the applicable ROFR Product(s). If Aptose
does not accept such terms in writing within the Review Period, then Ohm shall have no further obligations, and Aptose shall have
no further rights, with respect to the applicable ROFR Product(s) and territory under this Section 2.4, and Ohm may enter into
an agreement with a Third Party with respect to such ROFR Product(s) and territory. For clarity, this Section 2.4 will apply to
each ROFR Product and territory that Ohm desires to license to a Third Party.

 

    11

     

    

 

2.5             
No Implied Licenses; Negative Covenant. Except as expressly set forth herein, neither Party shall acquire any license
or other right or interest, by implication or otherwise, under any Know-How, Patent Rights, trademarks, copyrights or other intellectual
property of the other Party. Ohm shall not, and shall not permit any of its Affiliates or sublicensees to, practice any Patent
Rights or Know-How licensed to it by Aptose outside the scope of the license granted to it under this Agreement.

 

2.6             
Disclosure. Upon Ohm’s request, Aptose shall disclose to Ohm the Aptose Know-How, including any data in the Aptose
Know-How relating to Licensed Compounds and Products.

 

Article
3

GOVERNANCE

 

3.1             
Advisory Committee. The Parties shall establish an advisory committee (the “Advisory Committee”),
composed of two (2) representatives of each Party, to review and oversee the Development and Commercialization of Licensed Compounds
and Products under this Agreement. The Advisory Committee shall in particular:

 

(a)              
review and advise on Ohm’s Development, Manufacture and Commercialization of Licensed Compounds and Products in
the Field in the Territory;

 

(b)             
establish the Lead Candidate Criteria;

 

    12

     

    

 

(c)              
determine whether to designate a Licensed Compound as a Lead Candidate pursuant to Section 4.2(b);

 

(d)             
establish the assays for testing the ability of Lead Candidates to kill malignant cells by inhibiting BTK or FLT3;

 

(e)              
review and advise on Ohm’s progress against the Development Plan and Commercialization Plan;

 

(f)               
review and advise on Regulatory Materials received from and proposed to be submitted to Regulatory Authorities;

 

(g)              
review and advise on the initial Development Plan prepared by Ohm and each update thereto;

 

(h)             
review and advise on the initial Commercialization Plan and each update thereto; and

 

(i)                
perform such other duties as are expressly assigned to the Advisory Committee in this Agreement, and perform such other
functions as appropriate to further the purposes of this Agreement as may be allocated to it by the Parties’ written agreement.

 

3.2             
Limitation of Authority. The Advisory Committee shall have only the powers expressly assigned to it in this Article
3 and elsewhere in this Agreement and shall not have the authority to: (a) modify or amend the terms and conditions of this Agreement;
(b) change the Parties’ rights or obligations under this Agreement; (c) waive either Party’s compliance with the terms
and conditions of under this Agreement; or (d) determine any issue in a manner that would conflict with the express terms and conditions
of this Agreement. Except for the decisions described in Sections 3.1(b), 3.1(c) and 3.1(d), the Advisory Committee’s role
is advisory only, provided that Ohm will give reasonable good faith consideration to Aptose’s input on the Development Plan
and other matters discussed by the Advisory Committee.

 

3.3             
Membership and Meetings.

 

(a)              
Committee Members. Within thirty (30) days after the Effective Date, each Party will provide written notice to the other
Party of such Party’s initial members on the Advisory Committee. Each Party may replace its representatives on the Advisory
Committee by written notice to the other Party. Each Advisory Committee representative shall have appropriate knowledge and expertise
and sufficient seniority within the applicable Party to take actions arising within the scope of the Advisory Committee’s
responsibilities. Each Party shall appoint one (1) of its representatives to act as a co-chairperson of the Advisory Committee.
The co-chairpersons shall jointly prepare and circulate agendas in advance of each Advisory Committee meeting and reasonably detailed
minutes for each Advisory Committee meeting within thirty (30) days after such meeting. Such minutes will be deemed approved unless
one or more members of the Advisory Committee objects to the accuracy of such minutes within ten (10) business days of receipt.

 

    13

     

    

 

(b)             
Meetings. The Advisory Committee shall hold meetings at such times as it elects to do so, but no less frequently than
twice per calendar year. Meetings shall be held in person at locations to be selected alternately by the Parties by teleconference
or by videoconference, provided that at least one meeting per year shall be in person, unless the Parties otherwise agree. In addition,
either Party may call an ad hoc meeting of the Advisory Committee to address matters to be decided before the next regularly scheduled
meeting, including to determine whether to designate a Licensed Compound as a Lead Candidate. Each Party shall be responsible for
all of its own expenses of participating in the Advisory Committee. No action taken at any meeting of the Advisory Committee shall
be effective unless a representative of each Party is participating.

 

(c)              
Non-Member Attendance. Each Party may from time to time invite a reasonable number of participants, in addition to its
representatives, to attend and to present findings to the Advisory Committee meetings in a non-voting capacity; provided that if
either Party intends to have any Third Party (including any consultant) attend such a meeting, such Party shall provide prior written
notice to the other Party and shall ensure that such Third Party is bound by confidentiality and non-use obligations consistent
with the terms of this Agreement.

 

3.4             
Decision-Making.  All decisions of the Advisory Committee shall be made by unanimous vote, with each Party’s representatives
collectively having one (1) vote. If after reasonable discussion and good faith consideration of each Party’s view on a particular
matter before the Advisory Committee, the representatives of the Parties cannot reach an agreement as to such matter within fifteen
(15) days after such matter was brought to the Advisory Committee for resolution, such disagreement shall be referred to the Chief
Executive Officer of Aptose and the Chief Executive Officer of Ohm (the “Executive Officers”) for resolution.
If the Executive Officers cannot resolve such matter within thirty (30) days after such matter has been referred to them, then
Ohm shall have the right to decide such matter, except that Ohm shall not have the right to (a) determine the Lead Candidate Criteria
or (b) establish the assays for testing the ability of Lead Candidates to kill malignant cells by inhibiting BTK or FLT3, in each
case (a) and (b) without the written consent of Aptose.

 

3.5             
Discontinuation of Participation on the Advisory Committee. At any time during the Term and for any reason, Aptose shall
have the right to withdraw from participation in the Advisory Committee upon written notice to Ohm (the “Withdrawal Notice”),
which notice shall be effective immediately upon receipt. Following the issuance of a Withdrawal Notice and subject to this Section
3.5, Aptose’s representatives to the Advisory Committee shall not participate in any meetings of the Advisory Committee,
nor shall Aptose have any right to vote on decisions within the authority of the Advisory Committee. If, at any time following
the issuance of a Withdrawal Notice, Aptose wishes to resume participation in the Advisory Committee, Aptose shall notify Ohm in
writing and, thereafter, Aptose’s representatives to the Advisory Committee shall be entitled to attend any subsequent meeting
of the Advisory Committee and to participate in the activities of, and decision-making by, the Advisory Committee as provided in
this Article 3 as if a Withdrawal Notice had not been issued by Aptose pursuant to this Section 3.5. Following Aptose’s issuance
of a Withdrawal Notice pursuant to this Section 3.5, unless and until Aptose resumes participation in the Advisory Committee in
accordance with this Section 3.5: (a) all meetings of the Advisory Committee shall be held at Ohm’s facilities, (b) Ohm shall
have the right to make the final decision on all matters within the scope of authority of the Advisory Committee, and (c) Aptose
shall have the right to continue to receive the minutes of Advisory Committee meetings, but shall not have the right to approve
the minutes for any Advisory Committee meeting held after Aptose’s issuance of a Withdrawal Notice.

 

    14

     

    

 

3.6             
Acquisition of Aptose. If Aptose is acquired by another company or if another company acquires over 50% of the shares
of Aptose, Aptose and Ohm will meet to renegotiate the structure of the Advisory Committee and terms of the information Ohm is
required to share with Aptose under this Article 3. If Ohm has partnered the program this renegotiation shall take into consideration
the potential concerns of Ohm’s partner, especially if the company acquiring Aptose is a competitor of Ohm’s partner.

 

Article
4

DEVELOPMENT

 

4.1             
General. Subject to the terms and conditions of this Agreement, Ohm shall be solely responsible for the Development
of Licensed Compounds and Products in the Field throughout the Territory, at its own cost and expense, including (a) the generation,
selection and optimization of potential lead compounds, (b) performance of preclinical and clinical studies of Licensed Compounds
and Products, (b) Manufacture and supply of Licensed Compounds and Products for use in Development in the Territory, and (c) preparation
and submission of any and all Regulatory Materials for Products in the Field in the Territory.

 

4.2             
Lead Candidate.

 

(a)              
Criteria. Within thirty (30) days after the Effective Date, the Advisory Committee shall establish the criteria for
determining whether a Licensed Compound is suitable for designation as a Lead Candidate (the “Lead Candidate Criteria”).

 

(b)             
Selection. Ohm shall synthesize and optimize Licensed Compounds with a goal of identifying and optimizing a Lead Candidate
on which IND-enabling studies will be conducted. Within ten (10) business days after conducting any studies intended to determine
whether a Licensed Compound meets any of the Lead Candidate Criteria, Ohm shall provide the Advisory Committee with the results
of such studies, including all analyses and raw data. The Advisory Committee will schedule an ad hoc meeting within fifteen (15)
business days after receipt of such results to determine (i) whether such Licensed Compound satisfies the Lead Candidate Criteria
and (ii) if such Licensed Compound does not satisfy the Lead Candidate Criteria, whether nonetheless to designate such Licensed
Compound as a Lead Candidate. If a Licensed Compound satisfies the Lead Candidate Criteria, or if the Advisory Committee otherwise
designates a Licensed Compound as a lead Licensed Compound, or if Ohm commences IND-enabling toxicology studies with any Licensed
Compound in compliance with GLP, then such Licensed Compound will be deemed a Lead Candidate and the milestone payment set forth
in Section 6.2 will be payable to Aptose. Promptly thereafter, the Advisory Committee will determine an assay for testing such
Lead Candidate’s ability to kill malignant cells by inhibiting BTK or FLT3. Ohm shall notify Aptose promptly upon commencing
IND-enabling toxicology studies with any Licensed Compound.

 

    15

     

    

 

(c)              
Characterization. Upon the Advisory Committee’s designation (or the deemed designation) of a Lead Candidate for
potential Development pursuant to Section 4.2(b), or upon any Licensed Compound’s satisfying the Lead Candidate Criteria,
Ohm shall promptly test such Lead Candidate for its ability to kill malignant cells by inhibiting BTK or FLT3, using the assay
determined by the Advisory Committee under Section 4.2(b), and shall provide all results of such tests to Aptose promptly after
completion. Aptose shall have the right to conduct its own studies of such Lead Candidate to confirm the results obtained by Ohm,
for the sole purpose of determining whether such Lead Candidate is an ROFR Product or an ROFN Product. Promptly after the Advisory
Committee’s designation (or the deemed designation) of a Lead Candidate, Ohm shall provide sufficient quantities of such
Lead Candidate to Aptose to conduct such studies. Aptose shall have the right to conduct such studies, at Aptose’s expense,
for a period not to exceed sixty (60) days after Aptose’s receipt of the Lead Candidate(s) at Aptose’s laboratory facility.

 

4.3             
Development Plan. All Development of Licensed Compounds and Products under this Agreement shall be conducted pursuant
to a development plan that sets forth the timeline and details of lead optimization, preclinical, clinical, Manufacturing and regulatory
activities to be conducted by or on behalf of Ohm or its Affiliates or sublicensees to obtain Regulatory Approval of Products throughout
the Territory (as may be updated by Ohm from time to time, the “Development Plan”). Promptly after the Advisory
Committee’s designation of a Lead Candidate, Ohm shall prepare an initial Development Plan and submit it to the Advisory
Committee for review and discussion. Ohm shall submit each proposed material amendment of the then-current Development Plan to
the Advisory Committee for review and discussion. If the terms of the Development Plan contradict, or create inconsistencies or
ambiguities with, the terms of this Agreement, then the terms of this Agreement as defined in Article 3.2 shall govern.

 

4.4             
Regulatory Responsibilities.

 

(a)              
General. The Development Plan shall set forth the regulatory strategy for seeking Regulatory Approval of Products. Ohm
shall be solely responsible, at its sole expense, for all regulatory activities necessary to obtain and maintain Regulatory Approval
of Products in the Field in the Territory, which activities shall be conducted using Diligent Efforts and in accordance with the
regulatory strategy set forth in the Development Plan. Ohm will own all Regulatory Materials for Products in the Field in the Territory,
including all Regulatory Approvals, and will be responsible for the payment of fees and all other associated regulatory costs for
Products in the Field in the Territory.

 

(b)             
Regulatory Information Sharing. Ohm shall provide Aptose with copies of any substantive Regulatory Materials submitted
or received by Ohm relating to any Licensed Compound or Product promptly after the submission or receipt thereof. In addition,
Ohm shall provide Aptose with written minutes or other records of any oral discussions with any Regulatory Authority pertaining
to any Licensed Compound or Product promptly after such discussion. If any Regulatory Material to be provided under this Section
4.4(b) was originally created in a language other than the English language, Ohm shall provide an English translation along with
the original document to Aptose.

 

    16

     

    

 

(c)              
Meetings with Regulatory Authorities. At each regularly scheduled Advisory Committee meeting, Ohm shall provide Aptose
with a list and schedule of any in-person meeting or teleconference with any Regulatory Authority (or related advisory committees)
planned for the next six (6)-month period that relates to the Development of any Licensed Compound or Product. In addition, Ohm
shall notify Aptose as soon as reasonably possible if Ohm becomes aware of any additional such meetings or teleconferences that
become scheduled for such six (6)-month period. Aptose shall have the right to advise on the preparation for all such meetings
and teleconferences. Aptose will be solely responsible for all costs it incurs to participate in such meetings and teleconferences.

 

4.5             
Development Diligence. Ohm shall use Diligent Efforts to Develop and obtain Regulatory Approval of Products throughout
the Territory.

 

4.6             
Development Records. Ohm shall maintain complete, current and accurate records of all Development activities it conducts
under this Agreement and all data and other information resulting from such activities. Such records shall fully and properly reflect
all work done and results achieved in the performance of the Development activities in good scientific manner appropriate for regulatory
and patent purposes. Ohm shall document all non-clinical studies and clinical trials in formal written study reports according
to applicable Laws and national and international guidelines (e.g., ICH, GCP, GLP, and GMP).

 

4.7             
Development Reports. Ohm shall keep Aptose reasonably informed as to the progress and results of its and its Affiliates’
and sublicensees’ Development activities under this Agreement. Without limiting the foregoing, Ohm shall provide Aptose with
semi-annual reports, no later than thirty (30) days after the end of each six (6) month period, detailing its Development of Licensed
Compounds and Products and the results of such Development. Such reports shall be at a level of detail reasonably requested by
Aptose and sufficient to enable Aptose to determine Ohm’s compliance with its diligence obligations under Section 4.5. Ohm
shall promptly respond to Aptose’s reasonable questions or requests for additional information relating to such Development
activities.

 

4.8             
Subcontractors. Ohm and its Affiliates and sublicensees shall have the right to engage subcontractors, provided the
subcontractors meet Aptose’s quality standards according to Aptose’s internal quality guidelines, to Develop Licensed
Compounds and Products under this Agreement, provided that any such subcontractor is bound by written obligations of confidentiality
and non-use consistent with this Agreement and has agreed to assign to Ohm all inventions or other intellectual property made by
such subcontractor in the course of performing such subcontracted work that relates to any Licensed Compound or Product. Ohm shall
remain responsible for any obligations that have been delegated or subcontracted to any subcontractor, and shall be responsible
for the performance of its subcontractors.

 

4.9             
Compliance.  Ohm covenants that in performing (or having performed) its obligations or exercising (or having exercised)
its rights under this Agreement, it and its Affiliates and sublicensees: (a) shall comply in all material respects with all
applicable Laws; and (b) shall not employ or engage any Person who has been debarred or disqualified by any Regulatory Authority
or, to the knowledge of Ohm or its Affiliate or sublicensee, as applicable, is the subject of debarment or disqualification proceedings
by any Regulatory Authority.

 

    17

     

    

 

4.10         
Acquisition of Aptose. If Aptose is acquired by another company or if another company acquires over 50% of the shares
of Aptose, Aptose and Ohm will meet to renegotiate the terms of the information Ohm is required to share with Aptose under this
Article 4. If Ohm has partnered the program this renegotiation shall take into consideration the potential concerns of Ohm’s
partner, especially if the company acquiring Aptose is a competitor of Ohm’s partner.

 

Article
5

COMMERCIALIZATION

 

5.1             
General. Subject to the terms and conditions of this Agreement, as between the Parties, Ohm shall be responsible for
all aspects of the Commercialization of Products in the Field in the Territory, including: (a) developing and executing a commercial
launch and pre-launch plan, (b) Manufacturing and supplying Products for Commercialization in the Territory, (c) negotiating with
applicable Governmental Authorities regarding the price and reimbursement status of the Products; (d) marketing and promotion;
(e) booking sales and distribution and performance of related services; (f) handling all aspects of order processing, invoicing
and collection, inventory and receivables; (g) providing customer support, including handling medical queries, and performing other
related functions; and (h) conforming its practices and procedures to applicable Laws relating to the marketing, detailing and
promotion of the Products in the Territory. As between the Parties, Ohm shall bear all of the costs and expenses incurred in connection
with the Commercialization of Products in the Territory.

 

5.2             
Commercial Diligence. Ohm shall use Diligent Efforts to Commercialize each Product in each country and indication in
the Field in which it receives Regulatory Approval.

 

5.3             
Commercialization Plan. The Commercialization of Products in the Territory shall be conducted pursuant to a written
Commercialization plan (the “Commercialization Plan”). The Commercialization Plan shall include a reasonably
detailed description of and anticipated timeline for Ohm’s and its Affiliates’ and sublicensees’ Commercialization
activities with respect to Products in the Territory. The initial Commercialization Plan shall be prepared by Ohm and delivered
to Aptose and the Advisory Committee for review and discussion no later than nine (9) months prior to the anticipated date of first
Regulatory Approval of a Product in the Territory. Thereafter, Ohm shall submit each proposed material amendment of the then-current
Commercialization Plan to the Advisory Committee for review and comment before such amendment is adopted.

 

5.4             
Commercialization Reports. Ohm shall keep Aptose reasonably informed of Ohm’s and its Affiliates’ and sublicensees’
Commercialization activities with respect to Products in the Territory. Without limiting the foregoing, within thirty (30) days
after the end of each calendar year, Ohm shall provide Aptose with a written report summarizing the significant Commercialization
activities performed with respect to Products during such time period, and comparing such activities with the Commercialization
Plan for such time period. Such reports shall be at a level of detail reasonably requested by Aptose and sufficient to enable Aptose
to determine Ohm’s compliance with its diligence obligations under Section 5.2. Ohm shall promptly respond to Aptose’s
reasonable questions or requests for additional information relating to such Commercialization activities. At Aptose’s request,
Ohm will meet with Aptose to discuss Ohm’s Commercialization activities and efforts.

 

5.5             
Patent Marking. Ohm shall mark all Products in accordance with the applicable patent marking laws, and shall require
all of its Affiliates and sublicensees to do the same.

 

    18

     

    

 

Article
6

FINANCIAL PROVISIONS

 

6.1             
Upfront Payments. Ohm shall pay to Aptose: (a) a one-time, non-refundable, non-creditable payment of [*]) on the Effective
Date, [*] credit for the payment under the Term Sheet, for a net upfront payment of [*], and (b) a one-time, non-refundable, non-creditable
payment of [*] within ninety (90) days after the Effective Date.

 

6.2             
Lead Candidate Selection. Within fifteen (15) business days after the earliest to occur of the following events, Ohm
shall pay to Aptose a one-time, non-refundable, non-creditable payment of [*]: (a) the Advisory Committee’s designation (or
deemed designation) of a Licensed Compound as a Lead Candidate pursuant to Section 4.2(b) and (b) Ohm’s commencement of IND-enabling
toxicology studies with any Licensed Compound in compliance with GLP.

 

6.3             
Development and Regulatory Milestone Payments. 

 

(a)              
Events. Ohm shall pay to Aptose the non-refundable, non-creditable milestone payments set forth in the table below within
forty five (45) days after the first achievement of each milestone event (whether by or on behalf of Ohm, its Affiliates or sublicensees)
by the first Product and second Product to achieve the milestone event:

 

	Milestone Event	Milestone Payment
	First Product	Second Product
	Development Milestones
	1.      Initiation of the first Phase 1 Clinical Trial of a Product	[*]	[*]
	2.      Initiation of the first Phase 2 Clinical Trial of a Product	[*]	[*]
	3.      Initiation of the first Phase 3 Clinical Trial of a Product	[*]	[*]
	Regulatory Milestones
	4.      Submission of the first NDA for a Product to the FDA	[*]	[*]
	5.      Submission of the first MAA for a Product to a Regulatory Authority outside the U.S.	[*]	[*]
	6.      First NDA Approval for a Product in the U.S.	[*]	[*]
	7.      First MAA Approval for a Product outside the U.S.	[*]	[*]

 

    19

     

    

 

(b)             
Clarifications.

 

(i)                
Each milestone payment set forth above shall be due one time only for the first Product and one time only for the second
Product, each in the applicable amount, and regardless of whether different milestone events are achieved by the same or different
Products. If Ohm or its Affiliate or sublicensee terminates Development of a Product after achievement of one but not all milestone
events, then milestone payments will be paid for achievement by subsequent Products, either at the amount for the first Product
(if not previously achieved by any Product) or at the amount for the second Product (if previously achieved by one Product).

 

(ii)             
The maximum total amount payable under Section 6.3(a) is $38,750,000, if each milestone event is achieved (or otherwise
payable) by one Product only and an additional $19,375,000 if each milestone event is achieved (or otherwise payable) by two Products.

 

(iii)           
In the event that any of milestone event numbers 1 through 3 has not been achieved at the time of achievement of a milestone
event having a higher number than the skipped milestone event, then each skipped milestone event shall be deemed achieved at the
time of achievement of the higher number milestone event, and Ohm shall pay to Aptose the milestone payment for such skipped milestone
event within forty five (45) days after the achievement of the higher number milestone event.

 

6.4             
Sales Milestone Payments. Ohm shall pay to Aptose the one-time, non-refundable, non-creditable sales milestone payments
set forth below, in each case within forty five (45) days after the end of the first calendar quarter during which the aggregate
annual Net Sales of a Product in the Territory first reach the values indicated below for the first two Products to reach such
threshold. Milestone events for the first Product or the second Product need not be achieved by the same Product. For clarity,
the milestone payments in this Section 6.4 shall be additive such that if multiple milestone events specified below are achieved
in the same calendar quarter, then the milestone payments for all such milestone events shall be payable within forty five (45)
days after the end of such quarter.

 

	Annual Net Sale of a Product in the Territory	Milestone Payments
	First Product	Second Product
	Equal or exceed $250,000,000	[*]	[*]
	Equal or exceed $500,000,000	[*]	[*]
	Equal or exceed $750,000,000	[*]	[*]
	Total	$45,000,000	$22,500,000

 

    20

     

    

 

6.5             
Royalty Payments for Products.

 

(a)              
Royalty Rates. Subject to the other terms of this Section 6.5, Ohm shall make calendar quarterly, non-refundable, non-creditable
royalty payments to Aptose on the Net Sales of all Products sold during the Royalty Terms, as calculated by multiplying the applicable
royalty rate set forth below by the corresponding amount of incremental, aggregated Net Sales of all Products sold in the Territory
in the applicable calendar year.

 

	Annual Net Sale of all Products in the Territory	Royalty Rate
	For that portion of annual Net Sales less than $1,000,000,000	[*]
	For that portion of annual Net Sales greater than or equal to $1,000,000,000	[*]

 

(b)             
Royalty Term.  Ohm’s obligation to pay royalties pursuant to this Section 6.5 shall not apply to Net Sales of
Products to the extent that such Net Sales arise from sale of a Product in a particular country after the expiration of the Royalty
Term for such Product in such country. For clarity, all such Net Sales will be included for purposes of determining the royalty
tiers and royalty rates applicable to Net Sales in other countries.

 

(c)              
Royalty Reduction. With respect to Net Sales of a particular Product that arise from the sale of such Product in a particular
country in the Territory in a calendar quarter (i) during the Royalty Term for such Product in such country, (ii) in which there
is no Valid Claim of any Aptose Patent in such country that claims the composition, manufacture or use of such Product, (iii) in
which there is no Regulatory Exclusivity for such Product in such country and (iv) in which the unit volume of all Generic Products
to such Product that are sold by Third Parties in such country exceeds thirty percent (30%) of the combined unit volume of such
Product and such Generic Product sold in such country during such calendar quarter (which determinations of unit volume shall be
based on a mutually acceptable calculation method and using market share data provided by a reputable and mutually agreed upon
provider, such as IMS Health), the royalties applicable to such Net Sales will be reduced by fifty percent (50%) of the royalties
otherwise payable under Section 6.5(a). For example, if during a particular calendar year, the Net Sales in countries in which
the royalties are not subject to deduction under this Section 6.5(c) are $1 billion, and Net Sales in countries in which the royalties
are subject to deduction under this Section 6.5(c) are $500 million, the following would apply: the royalties without regard to
the reduced rate would be [*]. The portion of royalties (without deduction) attributable to countries in which the royalties are
subject to deduction is ($500 million / $1.5 billion) x $35 million = $11.67 million, so with the deduction such royalties would
be $5.83 million, and the total royalties would be $29.167 million.

 

    21

     

    

 

(d)             
Royalty Reports and Payment. Within forty five (45) days after the end of each calendar quarter, commencing with the
calendar quarter during which the First Commercial Sale of a Product is made anywhere in the Territory, Ohm shall provide Aptose
with a report that contains the following information for the applicable calendar quarter, on a Product-by-Product and country-by-country
basis: (i) the amount of gross sales of the Products, (ii) a calculation of Net Sales in the Territory, (iii) a calculation of
the royalty payment due on such sales, including the application of any reduction made in accordance with Section 6.5(c), and (iv)
the exchange rate for such country. Concurrent with the delivery of the applicable quarterly report, Ohm shall pay Aptose in Dollars
all royalties owed with respect to Net Sales for such calendar quarter.

 

6.6             
Currency; Exchange Rate. All payments to be made by Ohm to Aptose under this Agreement shall be made in Dollars by bank
wire transfer in immediately available funds to a bank account designated by written notice from Aptose. The rate of exchange to
be used in computing the amount of currency equivalent in Dollars shall be made at the average of the closing exchange rates reported
in The Wall Street Journal (U.S., Eastern Edition) for the first, middle and last business days of the applicable reporting
period for the payment due.

 

6.7             
Late Payments. If Aptose does not receive payment of any sum due to it on or before the due date therefor, simple interest
shall thereafter accrue on the sum due to Aptose from the due date until the date of payment at a per-annum rate of prime (as reported
in The Wall Street Journal (U.S., Eastern Edition)) plus two percentage points or the maximum rate allowable by applicable
Law, whichever is less.

 

6.8             
Taxes.

 

(a)              
Cooperation and Coordination. Each Party shall be solely responsible for the payment of all taxes imposed on its share
of income arising directly or indirectly from the activities of the Parties under this Agreement. The Parties acknowledge and agree
that it is their mutual objective and intent to appropriately calculate, to the extent feasible and legal, taxes payable with respect
to their collaborative efforts under this Agreement and that they shall use all Diligent Efforts to cooperate and coordinate with
each other to achieve such objective. Ohm shall cooperate with Aptose in seeking any tax exemption or credits that may be available.
The Parties agree to cooperate with one another and use reasonable efforts to avoid or reduce tax withholding or similar obligations
in respect of royalties, milestone payments, and other payments made by Ohm to Aptose under this Agreement.

 

(b)             
Payment of Tax. To the extent Ohm is required by applicable Laws to deduct and withhold taxes on any payment to Aptose,
Ohm shall promptly notify Aptose. Aptose shall provide Ohm any tax forms that may be reasonably necessary in order for Ohm not
to withhold tax or to withhold tax at a reduced rate under an applicable bilateral income tax treaty. Aptose shall use reasonable
efforts to provide any such tax forms to Ohm in advance of the due date. After making reasonable effort to obtain the lowest tax
rate, Ohm shall (i) deduct those taxes from the payment; (ii) pay the taxes to the proper taxing authority in a timely manner;
and (iii) send evidence of the obligation together with proof of payment to Aptose within ten (10) business days following that
payment. Ohm shall also provide Aptose with reasonable assistance to enable the recovery, as permitted by applicable Laws, of withholding
taxes or similar obligations resulting from payments made under this Agreement, such recovery to be for the benefit of Aptose as
the Party bearing such withholding tax under this Section. Notwithstanding the foregoing, if as a result of any action by Ohm,
including assignment or sublicense, any change in Ohm’s tax residency, any change in the entity that originates the payment,
or any failure on the part of Ohm to comply with applicable Laws (including filing or record retention requirements), withholding
taxes are imposed that were not otherwise applicable (“Incremental Withholding Taxes”), then Ohm shall be solely
responsible for the amount of such Incremental Withholding Taxes and shall increase the amounts payable to Aptose so that Aptose
receives a sum equal to the sum it would have received had there been no such action and resulting tax increase.

 

    22

     

    

 

6.9             
Financial Records and Audit. Ohm shall maintain complete and accurate records in sufficient detail to permit Aptose
to confirm the accuracy of royalty payments payable under this Agreement and to verify the achievement of milestone events under
this Agreement. Upon reasonable prior notice, such records shall be open during regular business hours for a period of three (3)
years from the creation of individual records for examination at Aptose’s expense, and not more often than once each calendar
year, by an independent certified public accountant selected by Aptose and reasonably acceptable to Ohm for the sole purpose of
verifying for Aptose the accuracy of the financial reports furnished by Ohm pursuant to this Agreement or of any payments made,
or required to be made, by Ohm pursuant to this Agreement. Any such auditor shall not disclose Ohm’s confidential information
to Aptose, except to the extent such disclosure is necessary to verify the accuracy of the financial reports furnished by Ohm or
the amount of payments by Ohm under this Agreement. Any amounts shown to be owed but unpaid shall be paid within thirty (30) days
after the accountant’s report, plus interest (as set forth in Section 6.7) from the original due date. Aptose shall bear
the full cost of such audit unless such audit reveals an underpayment by Ohm that resulted from a discrepancy in the financial
report provided by Ohm for the audited period, which underpayment was more than five percent (5%) of the amount set forth in such
report, in which case Ohm shall reimburse Aptose for the costs for such audit.

 

6.10         
Acquisition of Aptose. If Aptose is acquired by another company or if another company acquires over 50% of the shares
of Aptose, Aptose and Ohm will meet to renegotiate the terms of the information Ohm is required to share with Aptose under this
Article 6. If Ohm has partnered the program this renegotiation shall take into consideration the potential concerns of Ohm’s
partner, especially if the company acquiring Aptose is a competitor of Ohm’s partner.

 

Article
7

INTELLECTUAL PROPERTY RIGHTS

 

7.1             
Ownership of Inventions. Ownership of all Inventions shall be based on inventorship, as determined in accordance with
the rules of inventorship under United States patent laws. Each Party shall solely own any Inventions made solely by its or its
Affiliates’ employees, agents, or independent contractors (“Sole Inventions”). The Parties shall jointly
own any Inventions that are made jointly by employees, agents, or independent contractors of one Party or its Affiliates together
with employees, agents, or independent contractors of the other Party or its Affiliates (“Joint Inventions”).
All Patents claiming Joint Inventions shall be referred to herein as “Joint Patents.” Each Party shall be entitled
to practice, license, assign and otherwise exploit the Joint Inventions and Joint Patents without the duty of accounting or seeking
consent from the other Party.

 

    23

     

    

 

7.2             
Disclosure of Inventions. Each Party shall promptly disclose to the other Party all Sole Inventions of such Party and
all Joint Inventions, including any invention disclosures or other similar documents submitted to it by its employees, agents or
independent contractors describing such Inventions, and shall promptly respond to reasonable request from the other Party for additional
information relating to such Inventions.

 

7.3             
Patent Prosecution.

 

(a)              
Aptose Patents and Joint Patents. 

 

(i)                
As between the Parties, Ohm shall have the first right to file, prosecute and maintain all Aptose Patents and Joint
Patents in the Territory, at its sole cost and expense. For the purpose of this Article 7, “prosecution” shall include
any post-grant proceeding including patent interference proceeding, opposition proceeding and reexamination.

 

(ii)             
Ohm shall consult with Aptose and keep Aptose reasonably informed of the status of the Aptose Patents and Joint Patents
in the Territory and shall promptly provide Aptose with all material correspondence received from any patent authority in connection
therewith. In addition, Ohm shall promptly provide Aptose with drafts of all proposed material filings and correspondence to any
patent authority with respect to the Aptose Patents and Joint Patents in the Territory for Aptose’s review and comment prior
to the submission of such proposed filings and correspondence. Ohm shall confer with Aptose and consider in good faith Aptose’s
comments prior to submitting such filings and correspondence, provided that Aptose shall provide such comments within fourteen
(14) days (or a shorter period reasonably designated by Ohm if fourteen (14) days is not practicable given the filing deadline)
of receiving the draft filings and correspondence from Ohm.

 

(iii)           
Ohm shall notify Aptose of any decision to cease prosecution and/or maintenance of, or not to continue to pay the expenses
of prosecution and/or maintenance of, any Aptose Patents or Joint Patents in the Territory. Ohm shall provide such notice at least
thirty (30) days prior to any filing or payment due date, or any other due date that requires action, in connection with such Aptose
Patent or Joint Patent. In such event, Ohm shall permit Aptose, at its discretion and at its sole expense, to continue prosecution
or maintenance of such Aptose Patent or Joint Patent.

 

(b)             
Ohm Sole Patents.

 

(i)                
As between the Parties, Ohm shall have the first right to file, prosecute and maintain the Ohm Patents that are not
Joint Patents (“Ohm Sole Patents”) in the Territory, at Ohm’s cost and expense.

 

    24

     

    

 

(ii)             
Ohm shall consult with Aptose and keep Aptose reasonably informed of the status of all Ohm Sole Patents in the Territory
and shall promptly provide Aptose with material correspondence received from patent authorities in connection therewith. In addition,
Ohm shall promptly provide Aptose with drafts of all proposed material filings and correspondence to the patent authorities with
respect to the Ohm Sole Patents in the Territory for Aptose’s review and comment prior to the submission of such proposed
filings and correspondence. Ohm shall confer with Aptose and consider in good faith Aptose’s comments prior to submitting
such filings and correspondence, provided that Aptose shall provide such comments within fourteen (14) days (or a shorter period
reasonably designated by Ohm if fourteen (14) days is not practicable given the filing deadline) of receiving the draft filings
and correspondence from Ohm.

 

(iii)           
Ohm shall notify Aptose of any decision to cease prosecution and/or maintenance of, or not to continue to pay the expenses
of prosecution and/or maintenance of, any Ohm Sole Patent in the Territory. Ohm shall provide such notice at least thirty (30)
days prior to any filing or payment due date, or any other due date that requires action, in connection with such Ohm Sole Patent.
In such event, Ohm shall permit Aptose, at its discretion and at its sole expense, to continue prosecution or maintenance of such
Ohm Sole Patent.

 

(c)              
Cooperation. Aptose agrees to cooperate fully in the preparation, filing, prosecution and maintenance of Patents under
this Section 7.3, at Ohm’s request and expense. Such cooperation includes executing all papers and instruments, or requiring
its employees or contractors, to execute such papers and instruments, so as enable Ohm to apply for and to prosecute patent applications
in any country as permitted by Section 7.3.

 

7.4             
Patent Enforcement. 

 

(a)              
Each Party shall notify the other promptly after becoming aware of any alleged or threatened infringement by a Third
Party of any Aptose Patent, Ohm Patent or Joint Patent through the using, making, importing, exporting, offering for sale or selling
of any Product in the Field, including any “patent certification” filed in the United States under 21 U.S.C. §355(b)(2)
or 21 U.S.C. §355(j)(2) with respect to the Product and Field or similar provisions in other jurisdictions (collectively “Product
Infringement”), or of any alleged or threatened infringement by a Third Party of any Joint Patent that is not a Product
Infringement.

 

(b)             
Ohm shall have the first right to bring and control any legal action in connection with any Product Infringement of
any Aptose Patent or Joint Patent in the Territory, or any other infringement of a Joint Patent in the Territory, at its own expense
as it reasonably determines appropriate, and Aptose shall have the right to be represented in any such action by counsel of its
choice. If Ohm does not bring such legal action within sixty (60) days after the notice provided pursuant to Section 7.4(a), Aptose
shall have the right to bring and control any legal action in connection with such Product Infringement or other infringement of
a Joint Patent in the Territory at its own expense as it reasonably determines appropriate.

 

(c)              
Ohm shall have the first right to bring and control any legal action in connection with any Product Infringement of
an Ohm Patent in the Field in the Territory at its own expense as it reasonably determines appropriate.

 

    25

     

    

 

(d)             
At the request and expense of the Party bringing the action under Section 7.4(b) above, the other Party shall provide
reasonable assistance in connection therewith, including by executing reasonably appropriate documents, cooperating in discovery
and joining as a party to the action if required. In connection with any such proceeding, the Party bringing the action shall not
enter into any settlement admitting the invalidity of, or otherwise impairing the other Party’s rights in, the Aptose Patents
or Joint Patents without the prior written consent of the other Party.

 

(e)              
Any recoveries resulting from an enforcement action under Section 7.4(b) or 7.4(c) against a Product Infringement in
the Field in the Territory shall be first applied against payment of each Party’s costs and expenses in connection therewith.
For an enforcement action under Section 7.4(b), any recoveries in excess of such costs and expenses (the “Remainder”)
shall be shared by the Parties as follows: seventy-five percent (75%) of such Remainder shall be retained by the Party bringing
such action, and twenty-five percent (25%) of such Remainder shall be paid to the Party not bringing such action.

 

7.5             
Trademarks. Ohm shall have the right to brand the Products in the Field in the Territory using Ohm related trademarks
and any other trademarks and trade names it determines appropriate for the Products, which may vary by country or within a country
(“Product Marks”). Ohm shall own all rights in the Product Marks and shall register and maintain the Product
Marks in the countries and regions that it determines reasonably necessary, at Ohm’s cost and expense.

 

7.6              
Personnel Obligations.  Prior to beginning work under this Agreement relating to any Development of Licensed Compounds
or Products, each employee, agent or independent contractor of Ohm and its Affiliates shall be bound by invention assignment obligations
that are consistent with the obligations of Ohm in this Article 7, including: (a) promptly reporting any Invention; (b) assigning
to Ohm, as applicable, all of his or her right, title and interest in and to any Invention; (c) cooperating in the preparation,
filing, prosecution, maintenance and enforcement of any Patent Right; (d) performing all acts and signing, executing, acknowledging
and delivering any and all documents required for effecting the obligations and purposes of this Agreement; and (e) complying with
obligations of confidentiality and non-use consistent with those contained in this Agreement.

 

Article
8

CONFIDENTIALITY; PUBLICATION

 

8.1             
Duty of Confidence. Subject to the other provisions of this Article 8:

 

(a)              
all Confidential Information disclosed by a Party (the “Disclosing Party”) or its Affiliates under
this Agreement shall be maintained in confidence and otherwise safeguarded by the recipient Party (the “Receiving Party”)
and its Affiliates, in the same manner and with the same protection as such Receiving Party maintains its own confidential information;

 

    26

     

    

 

(b)             
the Receiving Party may only use any such Confidential Information for the purposes of performing its obligations or
exercising its rights under this Agreement; and

 

(c)              
the Receiving Party may disclose Confidential Information of the other Party to: (i) its Affiliates and sublicensees;
and (ii) employees, directors, agents, contractors, consultants and advisers of the Receiving Party and its Affiliates and sublicensees,
in each case to the extent reasonably necessary for the purposes of, and for those matters undertaken pursuant to, this Agreement;
provided that such Persons are bound to maintain the confidentiality of the Confidential Information in a manner consistent with
the confidentiality provisions of this Agreement.

 

8.2             
Exceptions. The foregoing obligations as to particular Confidential Information of a Disclosing Party shall not apply
to the extent that the Receiving Party can demonstrate that such Confidential Information:

 

(a)              
is known by the Receiving Party at the time of its receipt without an obligation of confidentiality, and not through
a prior disclosure by the Disclosing Party, as documented by the Receiving Party’s business records;

 

(b)             
is in the public domain before its receipt from the Disclosing Party, or thereafter enters the public domain through
no fault of the Receiving Party;

 

(c)              
is subsequently disclosed to the Receiving Party by a Third Party who may lawfully do so and is not under an obligation
of confidentiality to the Disclosing Party; or

 

(d)             
is developed by the Receiving Party independently and without use of, or reference to, any Confidential Information
received from the Disclosing Party, as documented by the Receiving Party’s business records.

 

Any combination of features or disclosures shall
not be deemed to fall within the foregoing exclusions merely because individual features are published or available to the general
public or in the rightful possession of the Receiving Party unless the combination itself and principle of operation are published
or available to the general public or in the rightful possession of the Receiving Party.

 

8.3             
Authorized Disclosures. Notwithstanding the obligations set forth in Sections 8.1 and 8.5, a Party may disclose
the other Party’s Confidential Information to the extent:

 

(a)              
such disclosure is reasonably necessary: (i) to such Party’s directors, attorneys, independent accountants
or financial advisors for the sole purpose of enabling such directors, attorneys, independent accountants or financial advisors
to provide advice to such Party, provided that in each such case such disclosure is on the condition that such directors, attorneys,
independent accountants and financial advisors are bound by confidentiality and non-use obligations substantially consistent with
those contained in this Agreement; provided, however, that the term of confidentiality for such directors, attorneys, independent
accountants and financial advisors shall be no less than five (5) years; or (ii) to actual or potential investors, acquirors,
licensees, sublicensees and other financial or commercial partners solely for the purpose of evaluating or carrying out an actual
or potential investment, acquisition or collaboration; provided that in each such case such disclosure is on the condition that
such recipients are bound by confidentiality and non-use obligations substantially consistent with those contained in the Agreement;
provided, however, that the term of confidentiality for such recipients shall be no less than five (5) years; or

 

    27

     

    

 

(b)             
such disclosure is required by Law, judicial or administrative process, provided that in such event such Party shall
promptly inform the other Party of such required disclosure and provide the other Party an opportunity to challenge or limit the
disclosure obligations. Confidential Information that is disclosed pursuant to this Section 8.3(b) shall remain otherwise subject
to the confidentiality and non-use provisions of this Article 8, and the Party disclosing Confidential Information pursuant to
Law or court order shall take all steps reasonably necessary, including seeking of confidential treatment or a protective order
to ensure the continued confidential treatment of such Confidential Information.

 

8.4             
Scientific Publication.  Ohm shall not publish peer reviewed manuscripts, or give other forms of public disclosure such
as abstracts and presentations, of results of studies carried out under this Agreement, without the opportunity for prior review
by Aptose. Ohm shall provide Aptose the opportunity to review and comment on any proposed publication that relates to any Licensed
Compound or Product at least thirty (30) days prior to its intended submission for publication. Aptose shall provide its comments
(if any) in writing within fifteen (15) days after Aptose’s confirmed receipt of such proposed publication. Ohm shall consider
in good faith any comments thereto provided by Aptose and shall comply with Aptose’s request to remove Aptose Confidential
Information from the proposed publication. In addition, Ohm shall delay the submission for a period of up to sixty (60) days in
the event that Aptose can demonstrate reasonable need for such delay, including the preparation and filing of a patent application.
If Aptose fails to provide its comments to Ohm within such fifteen (15)-day period, Aptose shall be deemed to not have any comments,
and Ohm shall be free to publish in accordance with this Section 8.4 after the thirty (30) day period has elapsed. Ohm shall provide
Aptose a copy of the manuscript at the time of the submission. Ohm agrees to acknowledge the contributions of Aptose and its employees
in all publications as scientifically appropriate.

 

8.5             
Publicity. Each Party shall have the right to issue a press release announcing this Agreement, in the form attached
hereto as Exhibit B. Subject to Section 8.3 above, no other disclosure of the existence or the terms of this Agreement may
be made by either Party or its Affiliates except as provided in this Section 8.5, except as may be required by applicable Law.

 

(a)              
A Party may disclose this Agreement and its terms, and material developments or material information generated under
this Agreement, in securities filings with the U.S. Securities and Exchange Commission (or equivalent foreign agency) to the extent
required by applicable Law after complying with the procedure set forth in this Section 8.5(a). In such event, the Party seeking
such disclosure shall prepare a draft confidential treatment request and proposed redacted version of this Agreement to request
confidential treatment for this Agreement, and the other Party agrees to promptly (and in any event, no less than seven (7) days
after receipt of such confidential treatment request and proposed redactions) give its input in a reasonable manner in order to
allow the Party seeking disclosure to file its request within the time lines proscribed by applicable Law. The Party seeking such
disclosure shall reasonably consider any comments thereto provided by the other Party within such seven (7) day period.

 

    28

     

    

 

(b)             
Each Party acknowledges that the other Party may be legally required to make public disclosures (including in filings
with the Governmental Authorities) of certain material developments or material information generated under this Agreement and
agrees that each Party may make such disclosures as required by Law, provided that the Party seeking such disclosure first provides
the other Party a copy of the proposed disclosure and reasonably considers any comments thereto provided by the other Party within
three (3) days after the receipt of such proposed disclosure.

 

(c)              
Other than the press release set forth in Exhibit B, and except for public disclosures under Section 8.5(b), the Parties
agree that any other news release or other public announcement relating to this Agreement or the performance hereunder that would
disclose information other than that already in the public domain, shall first be reviewed and approved by both Parties (with such
approval not to be unreasonably withheld or delayed). The Parties agree that after a disclosure pursuant to Section 8.5(b), or
after a press release (including the initial press release) or other public announcement pursuant to this Section 8.5(c) has been
reviewed and approved by the other Party, the disclosing Party may make subsequent public disclosures reiterating such information
without having to obtain the other Party’s prior consent and approval.

 

8.6             
Equitable Relief.  Given the nature of the Confidential Information and the competitive damage that would result to
a Party upon unauthorized disclosure, use or transfer of its Confidential Information to any Third Party, the Parties agree that
monetary damages would not be a sufficient remedy for any breach of this Article 8. In addition to all other remedies, a Party
shall be entitled to seek specific performance and injunctive and other equitable relief as a remedy for any breach or threatened
breach of this Article 8.

 

Article
9

REPRESENTATIONS AND WARRANTIES

 

9.1             
Representations and Warranties of Each Party.  Each Party represents and warrants to the other Party as of the Effective
Date that:

 

(a)              
it has the full right, power and authority to enter into this Agreement and to perform its obligations hereunder; and

 

(b)             
this Agreement has been duly executed by it and is legally binding upon it, enforceable in accordance with its terms,
and does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it may
be bound, nor violate any material law or regulation of any court, governmental body or administrative or other agency having jurisdiction
over it.

 

9.2             
Representations and Warranties by Aptose. Aptose represents and warrants to Ohm as of the Effective Date that it has
the right to grant the license granted to Ohm under Section 2.1 and it has not granted any license, option, right or interest in,
to or under the Aptose IP to any Third Party that is inconsistent with the license granted to Ohm under Section 2.1.

 

    29

     

    

 

9.3             
Representations and Warranties by Ohm. Ohm represents and warrants to Aptose as of the Effective Date that it has the
right to grant the rights granted to Aptose under Sections 2.3 and 2.4 and it has not granted any rights to any Third Party that
are inconsistent with such rights granted to Aptose..

 

9.4             
No Other Warranties. EXCEPT AS EXPRESSLY STATED IN THIS ARTICLE 8, (A) NO REPRESENTATION, CONDITION OR WARRANTY
WHATSOEVER IS MADE OR GIVEN BY OR ON BEHALF OF Ohm OR APTOSE; AND (B) ALL OTHER
CONDITIONS AND WARRANTIES WHETHER ARISING BY OPERATION OF LAW OR OTHERWISE ARE HEREBY EXPRESSLY EXCLUDED, INCLUDING ANY CONDITIONS
AND WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT.

 

Article
10

INDEMNIFICATION

 

10.1         
Indemnification by Aptose. Aptose shall indemnify, defend and hold Ohm, its Affiliates and their respective officers,
directors, agents and employees (“Ohm Indemnitees”) harmless from and against Losses incurred as a result of
any Claims against them to the extent arising or resulting from (a) the negligence or willful misconduct of any of the Aptose Indemnitees;
(b) the breach of any of the warranties or representations made by Aptose to Ohm under this Agreement; or (c) the breach by Aptose
of its obligations pursuant to this Agreement; except, in each case (a)-(c), to the extent such Claims result from the breach by
Ohm of any covenant, representation, warranty or other agreement made by Ohm in this Agreement or the negligence or willful misconduct
of any Ohm Indemnitee.

 

10.2         
Indemnification by Ohm. Ohm shall indemnify, defend and hold Aptose, its Affiliates and their respective officers, directors,
agents and employees (“Aptose Indemnitees”) harmless from and against Losses incurred as a result of any Claims
against them to the extent arising or resulting from (a) the Development, Manufacture or Commercialization of Licensed Compounds
and Products by or on behalf of Ohm or any of its Affiliates or sublicensees; (b) the negligence or willful misconduct of any of
the Ohm Indemnitees; (c) the breach of any of the warranties or representations made by Ohm to Aptose under this Agreement; or
(d) the breach by Ohm of its obligations pursuant to this Agreement; except, in each case (a)-(d), to the extent such Claims result
from the breach by Aptose of any covenant, representation, warranty or other agreement made by Aptose in this Agreement or the
negligence or willful misconduct of any Aptose Indemnitee.

 

10.3         
Indemnification Procedure. If either Party is seeking indemnification under Sections 10.1 or 10.2 (the “Indemnified
Party”), it shall inform the other Party (the “Indemnifying Party”) of the Claim giving rise to the
obligation to indemnify pursuant to such Section as soon as reasonably practicable after receiving notice of the Claim. The Indemnifying
Party shall have the right to assume the defense of any such Claim for which it is obligated to indemnify the Indemnified Party.
The Indemnified Party shall cooperate with the Indemnifying Party and the Indemnifying Party’s insurer as the Indemnifying
Party may reasonably request, and at the Indemnifying Party’s cost and expense. The Indemnified Party shall have the right
to participate, at its own expense and with counsel of its choice, in the defense of any Claim that has been assumed by the Indemnifying
Party. Neither Party shall have the obligation to indemnify the other Party in connection with any settlement made without the
Indemnifying Party’s written consent, which consent shall not be unreasonably withheld or delayed. If the Parties cannot
agree as to the application of Section 10.1 or 10.2 as to any Claim, pending resolution of the dispute pursuant to Section 12.5,
the Parties may conduct separate defenses of such Claims, with each Party retaining the right to claim indemnification from the
other Party in accordance with Section 10.1 or 10.2 upon resolution of the underlying Claim.

 

    30

     

    

 

10.4         
Mitigation of Loss. Each Indemnified Party shall take and shall procure that its Affiliates take all such reasonable
steps and action as are reasonably necessary or as the Indemnifying Party may reasonably require in order to mitigate any Claims
(or potential Losses) under this Article 10. Nothing in this Agreement shall or shall be deemed to relieve any Party of any common
law or other duty to mitigate any losses incurred by it.

 

10.5         
Insurance. Ohm shall procure and maintain insurance, including product liability insurance, with respect to its activities
hereunder that is consistent with normal business practices of prudent companies similarly situated at all times during which any
Product is being clinically tested in human subjects or commercially distributed or sold. Ohm shall provide Aptose with evidence
of such insurance upon request and shall provide Aptose with written notice at least sixty (60) days prior to the cancellation,
non-renewal or material changes in such insurance. Such insurance shall not be construed to create a limit of Ohm’s liability
with respect to its indemnification obligations under this Article 10.

 

10.6         
Clarification. The Parties and LALS agree that the indemnification obligations under Article 14 of the MSA do not apply
to any activities conducted under this Agreement.

 

Article
11

TERM AND TERMINATION

 

11.1         
Term. The term of this Agreement shall commence upon the Effective Date and continue in full force and effect until
the expiration of all payment obligations of Ohm, unless earlier terminated as set forth in Section 11.2 below (the “Term”).

 

11.2         
Termination.

 

(a)              
Termination by Ohm for Convenience. At any time, Ohm may terminate this Agreement by providing written notice of termination
to Aptose, which notice includes an effective date of termination at least thirty (30) days after the date of the notice.

 

    31

     

    

 

(b)             
Termination for Material Breach. If either Party believes that the other is in breach of its material obligations hereunder,
then the non-breaching Party may deliver notice of such breach to the other Party. For all breaches other than a failure to make
a payment as set forth in this Agreement, the allegedly breaching Party shall have sixty (60) days from such notice to dispute
or cure such breach. For any breach arising from a failure to make a payment set forth in this Agreement, the allegedly breaching
Party shall have thirty (30) days from the receipt of the notice to dispute or cure such breach. If the Party receiving notice
of breach fails to cure that breach within the applicable period set forth above, then the Party originally delivering the notice
of breach may terminate this Agreement effective on written notice of termination to the other Party.

 

(c)              
Termination for Patent Challenge. Except to the extent the following is unenforceable under the laws of a
particular jurisdiction, Aptose may terminate this Agreement upon written notice to Ohm if Ohm or its Affiliates or sublicensees,
individually or in association with any other Person, commences a legal action challenging the validity, enforceability or scope
of any Aptose Patents.

 

11.3         
Effect of Termination. Upon the termination of this Agreement for any reason, all licenses and other rights granted
to Ohm under the Aptose IP shall terminate and all sublicenses granted by Ohm shall terminate, and the following shall apply:

 

(a)              
License to Aptose. Ohm hereby grants to Aptose, effective upon such termination, an exclusive, royalty-free, fully-paid,
sublicenseable (through multiple tiers) license under the Ohm IP to Develop, make, have made, import, offer for sale, sell and
otherwise Commercialize Licensed Compounds and Products in the Territory.

 

(b)             
Regulatory Materials; Data. Ohm shall promptly transfer and assign to Aptose, at no cost to Aptose, all Regulatory Materials
and Regulatory Approvals for the Products, all data from non-clinical and clinical studies conducted by or on behalf of Ohm, its
Affiliates or sublicensees on Licensed Compounds and Products (including all notebooks), and all pharmacovigilance data (including
all adverse event databases) on Licensed Compounds and Products. Ohm shall complete such transfer within sixty (60) days after
the effective date of termination.

 

(c)              
Trademarks. Ohm shall transfer and assign, and shall ensure that its Affiliates transfer and assign, to Aptose, at no
cost to Aptose, all Product Marks and any applications therefor (excluding any such marks that include, in whole or part, any corporate
name or logos of Ohm or its Affiliates or sublicensees).

 

(d)             
Inventory. Within sixty (60) days after the effective date of termination, Ohm shall deliver to Aptose all inventory
(if any, and to the extent applicable) of Licensed Compounds and Products (including all research materials, final product, bulk
drug substance, intermediates, work-in-process, formulation materials, reference standards, drug product clinical reserve samples,
packaged retention samples and the like), in each case owned by Ohm (or its Affiliate) and in Ohm’s (or its Affiliate’s)
possession or control. Unless this Agreement is terminated by Ohm pursuant to Section 11.2(a), Aptose shall reimburse Ohm for its
cost of goods for manufacturing or having manufactured such inventory.

 

    32

     

    

 

(e)              
Transition Assistance.

 

(i)                
Ohm shall promptly return to Aptose, and in any event within sixty (60) days after the effective date of termination,
at no cost to Aptose, all Know-How, data, materials and other Confidential Information transferred by Aptose to Ohm under or in
anticipation of entry into this Agreement.

 

(ii)             
Ohm shall, upon Aptose’s request, supply Licensed Compounds and Products in the then-current form to Aptose at
cost (without markup) for a reasonable period of time until Aptose establishes an alternative supplier, and in any event for at
least twelve (12) months, and shall reasonably assist Aptose in establishing an alternative supplier for such Licensed Compound
and Product.

 

(iii)           
Upon Aptose’s request, Ohm shall assign or sublicense to Aptose any license agreements with respect to the Products
in the Territory and any agreements or arrangement with Third Party vendors pertaining to the Development, Manufacture or Commercialization
of Products in the Territory.

 

(iv)            
Ohm shall, at Aptose’s request, provide reasonable technical assistance, including assistance with any inquiries
and correspondence with Regulatory Authorities relating to any Product, for a period of twelve (12) months after the effective
date of termination, and transfer all Ohm Know-How relating to Licensed Compounds or Products, including study protocols, study
results, analytical methodologies, CMC information (including bulk and final product manufacturing processes, batch records, vendor
information and validation documentation), expert opinions and analyses, to Aptose or its designee.

 

(v)              
If at the time of the notice of termination, Ohm is conducting any clinical trials for a Product, then, at Aptose’s
election on a trial-by-trial basis: (A) Ohm shall fully cooperate with Aptose to transfer the conduct of all such clinical
trials to Aptose, according to a transition plan to be developed by the Parties, and Aptose shall assume any and all liability
for such clinical trials after the effective date of such termination (except to the extent arising from any act or omission by
Ohm, its Affiliates or their respective employees, agents and contractors), provided that Ohm shall continue to bear all costs
and expenses incurred in connection with the conduct of such clinical trials until the earlier of the completion of such trial
or one hundred and eighty (180) days after the effective date of termination; or (B) Ohm shall, at its expense, orderly wind
down the conduct of any such clinical trial that is not assumed by Aptose under clause (A).

 

(vi)            
In addition to the foregoing, Ohm shall use reasonable efforts with respect to those activities for which it is responsible
to ensure orderly transition and uninterrupted Development, Manufacturing and Commercialization of Products by Aptose and to enable
Aptose to enter into an agreement with a Third Party to continue these activities with minimal disruption and delay.

 

11.4         
Survival. Expiration or termination of this Agreement shall not relieve the Parties of any obligation accruing prior
to such expiration or termination. Without limiting the foregoing, the provisions of Articles 8, 10 and 12 and Sections 6.7,
6.8, 6.9, 7.1, 9.4, 11.3, 11.4 and 11.5 shall survive the expiration or termination of this Agreement.

 

11.5         
Termination Not Sole Remedy. Termination is not the sole remedy under this Agreement and, whether or not termination
is effected and notwithstanding anything contained in this Agreement to the contrary, all other remedies shall remain available
except as agreed to otherwise herein.

 

    33

     

    

 

Article
12

GENERAL PROVISIONS

 

12.1         
Assignment. This Agreement may not be assigned or otherwise transferred, nor may any right or obligation hereunder be
assigned or transferred, by either Party without the prior written consent of the other Party. Notwithstanding the foregoing, either
Party may, without consent of the other Party, assign this Agreement and its rights and obligations hereunder in whole or in part
to an Affiliate of such Party, or in whole to its successor in interest in connection with its merger, acquisition or the sale
of all or substantially all of its stock or its assets to which this Agreement relates. Any attempted assignment not in accordance
with this Section 12.1 shall be null and void and of no legal effect. Any permitted assignee shall assume all assigned obligations
of its assignor under this Agreement. The terms and conditions of this Agreement shall be binding upon, and shall inure to the
benefit of, the Parties and their respective successors and permitted assigns.

 

12.2         
Severability.  If any one or more of the provisions contained in this Agreement is held invalid, illegal or unenforceable
in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be
affected or impaired thereby, unless the absence of the invalidated provision(s) adversely affects the substantive rights of the
Parties. The Parties shall in such an instance use their best efforts to replace the invalid, illegal or unenforceable provision(s)
with valid, legal and enforceable provision(s) which, insofar as practical, implement the purposes of this Agreement.

 

12.3         
Notices. All notices which are required or permitted hereunder shall be in writing and sufficient if delivered personally,
sent by facsimile (and promptly confirmed by personal delivery, registered or certified mail or overnight courier), sent by internationally-recognized
overnight courier or sent by registered or certified mail, postage prepaid, return receipt requested, addressed as follows:

 

If to Aptose:

 

Aptose Biosciences Inc.

12770 High Bluff Drive, Suite 120

San Diego, CA 92130

Attn: William G. Rice Ph.D. (or subsequent Chief Executive
Officer)

Email: wrice@aptose.com

 

    34

     

    

 

with a copy to (which shall not constitute notice):

 

Aptose Biosciences Inc.

12770 High Bluff Drive, Suite 120

San Diego, CA 92130

Attn: Gregory Chow (or subsequent Chief Financial Officer)

Email: gchow@aptose.com

 

If to Ohm:

 

Ohm Oncology Inc.

2405 Robert Browning Street

Austin, TX 78723

Attn: Ajit Gil, President & CEO

 

with a copy to (which shall not constitute notice):

 

Laxai Avanti Life Science Pvt. Ltd.

Building 900, MN Park, Synergy Square 1

Genome Valley, Turkapally

Shameerpet

Hyderabad – 500078, Telangana

India

Attn: Vamsidhar Maddipatla, President

or to such other address(es) as the Party to whom notice is to be
given may have furnished to the other Party in writing in accordance herewith. Any such notice shall be deemed to have been given:
(a) when delivered if personally delivered or sent by facsimile on a business day (or if delivered or sent on a non-business day,
then on the next business day); (b) on the business day after dispatch if sent by internationally-recognized overnight courier;
or (c) on the fifth (5th) business day following the date of mailing, if sent by mail.

 

12.4         
Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York
without reference to any rules of conflict of laws.

 

12.5         
Dispute Resolution

 

(a)              
Objective. The Parties recognize that disputes as to matters arising under or relating to this Agreement or either Party’s
rights and obligations hereunder may arise from time to time. It is the objective of the Parties to establish procedures to facilitate
the resolution of such disputes in an expedient manner by mutual cooperation and without resort to litigation. To accomplish this
objective, the Parties agree to follow the procedures set forth in this Section 12.5 to resolve any such dispute if and when it
arises.

 

    35

     

    

 

(b)             
Resolution by Executive Officers. If an unresolved dispute as to matters arising under or relating to this Agreement
or either Party’s rights and obligations hereunder arises, either Party may refer such dispute to the Executive Officers,
who shall meet in person or by telephone within thirty (30) days after such referral to attempt in good faith to resolve such dispute.
If such matter cannot be resolved by discussion of such officers within such thirty (30)-day period, or such other time period
as the Parties may agree in writing, such dispute shall be resolved in accordance with Section 12.5(c).

 

(c)              
Arbitration.

 

(i)                
If the Parties do not resolve a dispute as provided in Section 12.5(b), and a Party wishes to pursue the matter,
each such dispute that is not an Excluded Claim (defined below) shall be resolved by binding arbitration in accordance with the
Rules of Arbitration of the International Chamber of Commerce (“ICC”) as then in effect (the “ICC Rules”),
which ICC Rules are deemed to be incorporated by reference into this clause, and judgment on the arbitration award may be entered
in any court having jurisdiction thereof. The decision rendered in any such arbitration will be final and not appealable.

 

(ii)             
The arbitration shall be conducted by a panel of three (3) arbitrators appointed in accordance with the ICC Rules, none
of whom shall be a current or former employee or director, or a then-current stockholder, of either Party, their respective Affiliates
or any sublicensee. The place of arbitration shall be San Diego, California, U.S., and all proceedings and communications shall
be in English.

 

(iii)           
It is the intention of the Parties that discovery, although permitted as described herein, will be limited except in
exceptional circumstances. The arbitrators will permit such limited discovery necessary for an understanding of any legitimate
issue raised in the arbitration, including the production of documents. No later than thirty (30) days after selection of
the arbitrators, the Parties and their representatives shall hold a preliminary meeting with the arbitrators, to mutually agree
upon and thereafter follow procedures seeking to assure that the arbitration will be concluded within six (6) months from such
meeting. Failing any such mutual agreement, the arbitrators will design and the Parties shall follow procedures to such effect.

 

(iv)            
Either Party may apply to the arbitrators for interim injunctive relief until the arbitration award is rendered or the
controversy is otherwise resolved. Either Party also may, without waiving any remedy under this Agreement, seek from any court
having jurisdiction any injunctive or provisional relief necessary to protect the rights or property of that Party pending the
arbitration award. The arbitrators shall have no authority to award punitive or any other non-compensatory damages, except as may
be permitted by Section 12.7. The arbitrators shall have the power to order that all or part of the legal or other costs incurred
by a Party in connection with the arbitration be paid by the other Party. Each Party shall bear an equal share of the arbitrators’
and any administrative fees of arbitration.

 

(v)              
Except to the extent necessary to confirm or enforce an award or as may be required by applicable Law, neither a Party
nor an arbitrator may disclose the existence, content, or results of an arbitration without the prior written consent of both Parties.
In no event shall an arbitration be initiated after the date when commencement of a legal or equitable proceeding based on the
dispute, controversy or claim would be barred by the applicable New York statute of limitations.

 

    36

     

    

 

(vi)            
As used in this Section, the term “Excluded Claim” means a dispute, controversy or claim that concerns
(A) the validity, enforceability or infringement of a patent, trademark or copyright; or (B) any antitrust, anti-monopoly
or competition law or regulation, whether or not statutory.

 

12.6         
Foreign Corrupt Practices Act Compliance.

 

(a)              
Ohm covenants to Aptose as follows:

 

(i)                
In the performance of its obligations under this Agreement, Ohm shall comply and shall cause its and its Affiliates’
and sublicensees’ employees and contractors to comply with all applicable Laws, including applicable Anti-Corruption Laws.

 

(ii)             
Ohm and its and its Affiliates’ and sublicensees’ employees and contractors shall not, in connection with
the performance of their respective obligations under this Agreement, directly or indirectly through Third Parties, pay, promise
or offer to pay, or authorize the payment of, any money or give any promise or offer to give, or authorize the giving of, anything
of value to a Public Official or Entity or other person for purposes of obtaining or retaining business for or with, or directing
business to, any person, including, without limitation, either Party (and Ohm represents and warrants that as of the Effective
Date, Ohm’s and its Affiliates’ employees and contractors have not directly or indirectly promised, offered or provided
any corrupt payment, gratuity, emolument, bribe, kickback, illicit gift or hospitality or other illegal or unethical benefit to
a Public Official or Entity or any other person in connection with the performance of Ohm’s obligations under this Agreement,
and Ohm covenants that it and its Affiliates’ employees and contractors shall not, directly or indirectly, engage in any
of the foregoing).

 

(iii)           
Ohm and its Affiliates and sublicensees, and their respective employees and contractors, in connection with the performance
of their respective obligations under this Agreement, shall not cause Aptose or its Affiliates or their respective directors, officers,
employees or agents to be in violation of the FCPA, Export Control Laws, or any other applicable Laws, including applicable Anti-Corruption
Laws, or otherwise cause any reputational harm to Aptose.

 

(iv)            
Ohm shall promptly notify Aptose if it has any information or suspicion that there may be a violation of the FCPA, Export
Control Laws, or any other applicable Laws, including applicable Anti-Corruption Laws, in connection with the performance of this
Agreement or the Development, manufacture or Commercialization of any Product in the Territory.

 

(v)              
In connection with the performance of its obligations under this Agreement, Ohm shall comply and shall cause its and
its Affiliates’ employees and contractors to comply with Ohm’s own anti-corruption and anti-bribery policy, a copy
of which will be provided to Aptose upon request.

 

    37

     

    

 

(vi)            
Aptose will have the right, upon reasonable prior written notice and during Ohm’s regular business hours, to audit
Ohm’s books and records in the event that a suspected violation of any of the representations, warranties or covenants in
this Section 12.6(a) needs to be investigated.

 

(vii)         
In the event that Ohm has violated or has been suspected of violating any of the representations, warranties or covenants
in this Section 12.6(a), Ohm will cause its or its Affiliates’ personnel or others working under its direction or control
to submit to periodic training that Ohm will provide on anti-corruption law compliance.

 

(viii)       
Ohm will, at Aptose’s request, annually certify to Aptose in writing Ohm’s compliance, in connection with
the performance of Ohm’s obligations under this Agreement, with the representations, warranties or covenants in this Section
12.6(a).

 

(b)             
Aptose shall have the right to suspend or terminate this Agreement in its entirety if there is a credible finding of
a Governmental Authority, after a reasonable investigation, that Ohm, in connection with its performance under this Agreement,
has violated the FCPA or any other applicable Anti-Corruption Laws.

 

12.7         
Limitation of Liability. NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE,
OR INDIRECT DAMAGES ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH
DAMAGES. NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS SECTION 12.7 IS INTENDED TO OR SHALL LIMIT OR RESTRICT THE INDEMNIFICATION
RIGHTS OR OBLIGATIONS OF ANY PARTY UNDER SECTION 10.1 OR 10.2, OR DAMAGES AVAILABLE FOR A PARTY’S BREACH OF OBLIGATIONS IN
Article 8.

 

12.8         
Guarantee by LALS. In consideration of the rights granted hereunder, LALS hereby unconditionally and irrevocably guarantees
to Aptose the full payment and performance by Ohm, as and when due hereunder, of all obligations of Ohm under this Agreement. This
guarantee shall be enforceable upon the failure by Ohm to pay or perform any obligation it may have under this Agreement in accordance
with its terms, and shall be effective regardless of the solvency or insolvency of Ohm at any time, the extension or modification
of the obligations of this Agreement by operation of law, or the subsequent reorganization, merger, consolidation or other restructuring
of Ohm. LALS hereby expressly waives any requirement that Aptose exhaust any right, power or remedy under this Agreement, or proceed
against Ohm under this Agreement, for any obligation or performance hereunder prior to proceeding directly against LALS under this
Section 12.8.

 

12.9         
Entire Agreement; Amendments. This Agreement contains the entire understanding of the Parties with respect to the subject
matter hereof. Any other express or implied agreements and understandings, negotiations, writings and commitments, either oral
or written, with respect to the subject matter hereof are superseded by the terms of this Agreement. This Agreement may be amended,
or any term hereof modified, only by a written instrument duly executed by authorized representatives of both Parties hereto.

 

    38

     

    

 

12.10     
Headings. The captions to the several Articles, Sections and subsections hereof are not a part of this Agreement, but
are merely for convenience to assist in locating and reading the several Articles and Sections hereof.

 

12.11     
Independent Contractors.  It is expressly agreed that Aptose and Ohm shall be independent contractors and that the relationship
between the two Parties shall not constitute a partnership, joint venture or agency. Neither Aptose nor Ohm shall have the authority
to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other
Party, without the prior written consent of the other Party.

 

12.12     
Waiver. The waiver by either Party hereto of any right hereunder, or of any failure of the other Party to perform, or
of any breach by the other Party, shall not be deemed a waiver of any other right hereunder or of any other breach by or failure
of such other Party whether of a similar nature or otherwise.

 

12.13     
Cumulative Remedies. No remedy referred to in this Agreement is intended to be exclusive, but each shall be cumulative
and in addition to any other remedy referred to in this Agreement or otherwise available under law.

 

12.14     
Waiver of Rule of Construction. Each Party has had the opportunity to consult with counsel in connection with the review,
drafting and negotiation of this Agreement. Accordingly, the rule of construction that any ambiguity in this Agreement shall be
construed against the drafting Party shall not apply.

 

12.15     
Business Day Requirements.  In the event that any notice or other action or omission is required to be taken by a Party
under this Agreement on a day that is not a business day then such notice or other action or omission shall be deemed to be required
to be taken on the next occurring business day.

 

12.16     
Translations. This Agreement is in the English language only, which language shall be controlling in all respects, and
all versions hereof in any other language shall be for accommodation only and shall not be binding upon the Parties. All communications
and notices to be made or given pursuant to this Agreement, and any dispute proceeding related to or arising hereunder, shall be
in the English language. If there is a discrepancy between any translation of this Agreement and this Agreement, this Agreement
shall prevail.

 

12.17     
Further Actions. Each Party agrees to execute, acknowledge and deliver such further instruments, and to do all such
other acts, as necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 

12.18     
Counterparts.  This Agreement may be executed in two or more counterparts by original signature, facsimile or PDF files,
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

    39

     

    

 

{Remainder
of page intentionally left blank}

 

IN WITNESS WHEREOF, the Parties intending to be bound have caused
this Agreement to be executed by their duly authorized representatives as of the Effective Date.

 

	Aptose Biosciences Inc.	 	Ohm Oncology Inc.
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/ William G. Rice, Ph.D.	 	By:	/s/ Ajit Gill
	 	 	 	 	 
	Name:	William G. Rice, Ph.D.	 	Name:	Ajit Gill 
	 	 	 	 	 
	Title:	Chairman, President
        & CEO	 	Title:	President & CEO

 

 

 

 

 

Solely for purposes of Sections 10.6 and 12.8:

 

 

Laxai Avanti Life Science Pvt. Ltd.  

 

 

	By:	/s/ Vamsidhar Maddipatla	 
	 	 	 
	Name:	Vamsidhar Maddipatla  	 
	 	 	 
	Title:	President  	 

 

 

List of Exhibits

 

Exhibit A:Aptose Patents

Exhibit B:Press ReleaseINVESTMENT AGREEMENT

 

 

This INVESTMENT
AGREEMENT (this “AGREEMENT”), dated as of April 16, 2019 by and between Sugarmade, Inc., a Delaware corporation
(the “Company”), and K&J Funds, LLC, a Nevada limited liability corporation (the “Investor”).

WHEREAS,
the parties desire that, upon the terms and subject to the conditions contained herein, the Investor shall invest up to Twenty
Million Dollars ($20,000,000) to purchase the Company's Common Stock with $0.001 par value per share (the “Common Stock”);

WHEREAS,
such investments will be made in reliance upon the provisions of Section 4(a)(2) under the Securities Act of 1933, as amended (the
“1933 Act”), Rule 506 of Regulation D, and the rules and regulations promulgated thereunder, and/or upon such other
exemption from the registration requirements of the 1933 Act as may be available with respect to any or all of the investments
in Common Stock to be made hereunder; and

WHEREAS,
contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration
Rights Agreement substantially in the form attached hereto (the “Registration Rights Agreement”) pursuant to which
the Company has agreed to provide certain registration rights under the 1933 Act, and the rules and regulations promulgated thereunder,
and applicable state securities laws.

NOW THEREFORE,
in consideration of the foregoing recitals, which shall be considered an integral part of this Agreement, the covenants and agreements
set forth hereafter, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
Company and the Investor hereby agree as follows:

 

ARTICLE I

CERTAIN DEFINITIONS

 

DEFINED TERMS. As used in this Agreement, the
following terms shall have the following meanings specified or indicated (such meanings to be equally applicable to both the singular
and plural forms of the terms defined):

 

 “AAA” shall have the
meaning specified in Section 10.

 

“Agreement” shall have the
meaning specified in the preamble hereof.

 

“Average Daily Trading Volume”
shall mean the average trading volume of the Company’s Common Stock in the ten (10) Trading Days immediately preceding the
respective Put Date.

 

“Bankruptcy Law” means Title
11, U.S. Code, or any similar federal or state law for the relief of debtors.

 

“Claim Notice” shall have
the meaning specified in Section 9.3(a).

 

“Clearing Costs” shall mean
all of the Investor’s broker and Transfer Agent fees.

 

“Clearing Date” shall be
the date on which the Investor receives the Put Shares as DWAC Shares in its brokerage account.

 

    -1-

    

    
“Closing” shall mean one
of the closings of a purchase and sale of shares of Common Stock pursuant to Section 2.3.

 

“Closing Date” shall mean
the date of any Closing hereunder.

 

“Commitment Period” shall
mean the period commencing on the Execution Date, and ending on the earlier of (i) the date on which the Investor shall have
purchased Put Shares pursuant to this Agreement equal to the Maximum Commitment Amount, (ii) two years from the date of an
effective Registration Statement, or (iii) written notice of termination by the Company to the Investor (which shall not occur
at any time that the Investor holds any of the Put Shares).

 

“Common Stock” shall mean
the Company’s common stock, $0.001 par value per share, and any shares of any other class of common stock whether now or
hereafter authorized, having the right to participate in the distribution of dividends (as and when declared) and assets (upon
liquidation of the Company).

 

“Common Stock Equivalents”
means any securities of the Company which would entitle the holder thereof to acquire at any time Common Stock, including, without
limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable
or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

“Company” shall have the
meaning specified in the preamble to this Agreement.

  

“Damages” shall mean any
loss, claim, damage, liability, cost and expense (including, without limitation, reasonable attorneys’ fees and disbursements
and costs and expenses of expert witnesses and investigation).

 

“Dispute Period” shall have
the meaning specified in Section 9.3(a).

 

“DTC” shall mean The Depository
Trust Company, or any successor performing substantially the same function for the Company.

 

“DTC/FAST Program” shall
mean the DTC’s Fast Automated Securities Transfer Program.

 

“DWAC” shall mean Deposit
Withdrawal at Custodian as defined by the DTC.

 

“DWAC Eligible” shall mean
that (a) the Common Stock is eligible at DTC for full services pursuant to DTC’s Operational Arrangements, including,
without limitation, transfer through DTC’s DWAC system, (b) the Company has been approved (without revocation) by the
DTC’s underwriting department, (c) the Transfer Agent is approved as an agent in the DTC/FAST Program, (d) the
Put Shares, as applicable, are otherwise eligible for delivery via DWAC, and (e) the Transfer Agent does not have a policy
prohibiting or limiting delivery of the Put Shares via DWAC.

 

“DWAC Shares” means shares
of Common Stock that are (i) issued in electronic form, (ii) freely tradable and transferable and without restriction
on resale and (iii) timely credited by the Company to the Investor’s or its designee’s specified DWAC account
with DTC under the DTC/FAST Program, or any similar program hereafter adopted by DTC performing substantially the same function.

 

“Exchange Act” shall mean
the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exchange Cap” shall have
the meaning set forth in Section 7.1(c).

 

    -2-

    

    
“Execution Date” shall mean
the date of this Agreement.

 

“FINRA” shall mean the Financial
Industry Regulatory Authority, Inc.

 

“Investment Amount” shall
mean the Put Shares referenced in the Put Notice multiplied by the Purchase Price minus the Clearing Costs.

 

“Indemnified Party” shall
have the meaning specified in Section 9.2.

 

“Indemnifying Party” shall
have the meaning specified in Section 9.2.

 

“Indemnity Notice” shall
have the meaning specified in Section 9.3(e).

 

“Investor” shall have the
meaning specified in the preamble to this Agreement.

 

“Lien” means a lien, charge,
pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Market Price” shall mean
85% of the average of the three (3) lowest traded prices (as reported by Bloomberg Finance L.P.) during the ten (10) trading days
prior to the Put Date associated with the applicable Put Notice (the “Valuation Period” as defined below).

 

“Material Adverse Effect”
shall mean any effect on the business, operations, properties, or financial condition of the Company that is material and adverse
to the Company and/or any condition, circumstance, or situation that prohibit or otherwise materially interfere with the ability
of the Company to enter into and perform its obligations under any Transaction Document.

 

“Maximum Commitment Amount”
shall mean Twenty Million Dollars ($20,000,000).

 

“Person” shall mean an individual,
a corporation, a partnership, an association, a trust or other entity or organization, including a government or political subdivision
or an agency or instrumentality thereof.

 

“Principal Market” shall
mean any of the national exchanges (i.e. NYSE, NYSE AMEX, Nasdaq), or principal quotation systems (i.e. OTCQX, OTCQB, OTC Pink
– operated by the OTC Market Group, Inc. or the OTC Bulletin Board interdealer quotation system), or other principal exchange
or recognized quotation system used for opening, closing, and managing market positions through a financial intermediary for the
Common Stock.

 

“Purchase Price” shall mean
85% of the average of the three (3) lowest traded prices (as reported by Bloomberg Finance L.P.) during the ten (10) trading days
prior to the Put Date associated with the applicable Put Notice (the “Valuation Period”).

 

“Put” shall mean the right
of the Company to require the Investor to purchase shares of Common Stock, subject to the terms and conditions of this Agreement.

 

“Put Date” shall mean any
Trading Day during the Commitment Period that a Put Notice is deemed delivered pursuant to Section 2.2(b).

 

“Put Notice” shall mean
a written notice, substantially in the form of Exhibit A hereto, to Investor setting forth the Put Shares which the Company intends
to require Investor to purchase pursuant to the terms of this Agreement.

 

    -3-

    

    
“Put Shares” shall mean
all shares of Common Stock issued, or that the Company shall be entitled to issue, per any applicable Put Notice in accordance
with the terms and conditions of this Agreement.

 

“Registration Statement”
shall have the meaning specified in Section 6.4.

 

“Regulation D” shall mean
Regulation D promulgated under the Securities Act.

 

 “Rule 144” shall mean
Rule 144 under the Securities Act or any similar provision then in force under the Securities Act.

 

“SEC” shall mean the United
States Securities and Exchange Commission.

 

“SEC Documents” shall have
the meaning specified in Section 4.5.

 

“Securities” means, collectively,
the Put Shares.

 

“Securities Act” shall mean
the Securities Act of 1933, as amended.

 

“Short Sales” shall mean
all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act.

 

“Subsidiary” means any Person
the Company wholly-owns or controls, or in which the Company, directly or indirectly, owns a majority of the voting stock or similar
voting interest, in each case that would be disclosable pursuant to Item 601(b)(21) of Regulation S-K promulgated under the Securities
Act.

 

“Third-Party Claim” shall
have the meaning specified in Section 9.3(a).

 

“Trading Day” shall mean
a day on which the Principal Market shall be open for business.

 

“Transaction Documents”
shall mean this Agreement and all exhibits hereto and thereto.

  

“Transfer Agent Instruction Letter”
means the letter from the Company to the Transfer Agent which instructs the Transfer Agent to issue the Put Shares pursuant to
the Transaction Documents.

 

“Valuation Period” shall
mean the period of ten (10) Trading Days following the Clearing Date associated with the applicable Put Notice during which the
Purchase Price of the Common Stock is valued, provided, however, that the Valuation Period shall instead begin on the Clearing
Date if the respective Put Shares are received as DWAC Shares in Investor’s brokerage account prior to 11:00 a.m. EST on
the respective Clearing Date.

 

“Variable Security Holder”
means any holder of any securities of the Company in an amount in excess of Five Hundred Thousand Dollars ($500,000) that (A) have
or may have conversion rights of any kind, contingent, conditional or otherwise, in which the number of shares that may be issued
pursuant to such conversion right varies with the market price of the Common Stock, or (B) are or may become convertible into Common
Stock (including without limitation convertible debt, warrants or convertible preferred stock), with a conversion price that varies
with the market price of the Common Stock, even if such security only becomes convertible following an event of default, the passage
of time, or another trigger event or condition.

 

    -4-

    

    

ARTICLE II

PURCHASE AND SALE OF COMMON STOCK

 

2.1 PUTS. Upon the terms and
conditions set forth herein (including, without limitation, the provisions of Article VII), the Company shall have the right, but
not the obligation, to direct the Investor, by its delivery to the Investor of a Put Notice from time to time, to purchase Put
Shares. The Put Amount shall be equal to up to either (i) two hundred percent (200%) of the average daily volume (U.S. market only)
of the Common Stock for the Ten (10)) Trading Days prior to the applicable Put Notice Date, or (ii) an amount not to exceed Five
Hundred Thousand Dollars ($500,000) The Company shall not deliver another Put Notice to the Investor within ten (10) Trading Days
of a prior Put Notice. The Common Stock identified in the Put Notice shall be purchased for a price equal to the Purchase Price.

Section 2.2 MECHANICS.

 

(a)       PUT
NOTICE. At any time and from time to time during the Commitment Period, except as provided in this Agreement, the Company may
deliver a Put Notice to Investor, subject to satisfaction of the conditions set forth in Section 7.2 and otherwise provided herein.
The Company shall deliver, or cause to be delivered, the Put Shares as DWAC Shares to the Investor within seven (7) Trading Days
following the Put Date.

 

(b)       DATE
OF DELIVERY OF PUT NOTICE. A Put Notice shall be deemed delivered on (i) the Trading Day it is received by email by the
Investor if such notice is received on or prior to 9.00 a.m. Pacific Standard Time or (ii) the immediately succeeding Trading
Day if it is received by email after 9.00 a.m. Pacific Standard Time on a Trading Day or at any time on a day which is not a Trading
Day. The Company shall not deliver another Put Notice to the Investor within ten (10) Trading Days of a prior Put Notice.

 

Section 2.3 CLOSINGS. If the value of
the Put Shares delivered to the Investor under the Put Notice causes the Company to exceed the Maximum Commitment Amount, then
the Investor shall return to the Company the surplus amount of Put Shares associated with such Put. The Purchase Price with respect
to the Put Shares shall be reduced by any Clearing Costs related to the return of such Put Shares. The Closing Date under any Put
Notice shall occur within seven (7) Trading Day following the end of the respective Valuation Period and the delivery of the Put
Shares by the Company, whereby the Investor shall deliver the Investment Amount by wire transfer of immediately available funds
to an account designated by the Company.

 

Section 2.4 DELAY DELIVERY. The Company
understands that a delay in the issuance of Securities beyond the Closing Date could result in economic damage to the Investor.
After the Effective Date, as compensation to the Investor for such loss, the Company agrees to make payments to the Investor for
late issuance of Securities (delivery of Securities after the applicable Closing Date) in accordance with the following schedule
(where “No. of Days Late” is defined as the number of trading days beyond the Closing Date, with the Amounts being
cumulative.):

 

    -5-

    

    

LATE PAYMENT FOR EACH NO. OF DAYS LATE

 

1       $100

2       $200

3       $300

4       $400

5       $500

6       $600

7       $700

8       $800

9       $900

10       $1000

Over 10$1,000 + $200
for each Business Day late beyond 10 days

 

The Company shall make any payments incurred
under this Section in immediately available funds upon demand by the Investor. Nothing herein shall limit the Investor's right
to pursue actual damages for the Company's failure to issue and deliver the Securities to the Investor, except that such late payments
shall offset any such actual damages incurred by the Investor.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF INVESTOR

 

The Investor represents and warrants to the
Company that:

 

Section 3.1 INTENT. The Investor is
entering into this Agreement for its own account and the Investor has no present arrangement (whether or not legally binding) at
any time to sell the Securities to or through any Person in violation of the Securities Act or any applicable state securities
laws; provided, however, that the Investor reserves the right to dispose of the Securities at any time in accordance with federal
and state securities laws applicable to such disposition.

 

Section 3.2 NO LEGAL ADVICE FROM THE COMPANY.
The Investor acknowledges that it has had the opportunity to review this Agreement and the transactions contemplated by this Agreement
with its own legal counsel and investment and tax advisors. The Investor is relying solely on such counsel and advisors and not
on any statements or representations of the Company or any of its representatives or agents for legal, tax or investment advice
with respect to this investment, the transactions contemplated by this Agreement or the securities laws of any jurisdiction.

 

Section 3.3 ACCREDITED INVESTOR. The
Investor is an accredited investor as defined in Rule 501(a) of Regulation D, and the Investor has such experience in business
and financial matters that it is capable of evaluating the merits and risks of an investment in the Securities. The Investor acknowledges
that an investment in the Securities is speculative and involves a high degree of risk.

 

    -6-

    

    

Section 3.4 AUTHORITY. The Investor
has the requisite power and authority to enter into and perform its obligations under this Agreement and the other Transaction
Documents and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and
the other Transaction Documents and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized
by all necessary action and no further consent or authorization of the Investor is required. Each Transaction Document to which
it is a party has been duly executed by the Investor, and when delivered by the Investor in accordance with the terms hereof, will
constitute the valid and binding obligation of the Investor enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency, or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies
or by other equitable principles of general application.

 

Section 3.5 NOT AN AFFILIATE. The Investor
is not an officer, director or “affiliate” (as that term is defined in Rule 405 of the Securities Act) of the Company.

 

Section 3.6 ORGANIZATION AND STANDING.
The Investor is an entity duly incorporated or formed, validly existing and in good standing under the laws of the jurisdiction
of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power and authority
to enter into and to consummate the transactions contemplated by this Agreement and the other Transaction Documents.

 

Section 3.7 ABSENCE OF CONFLICTS. The
execution and delivery of this Agreement and the other Transaction Documents, and the consummation of the transactions contemplated
hereby and thereby and compliance with the requirements hereof and thereof, will not (a) violate any law, rule, regulation,
order, writ, judgment, injunction, decree or award binding on the Investor, (b) violate any provision of any indenture, instrument
or agreement to which the Investor is a party or is subject, or by which the Investor or any of its assets is bound, or conflict
with or constitute a material default thereunder, (c) result in the creation or imposition of any lien pursuant to the terms
of any such indenture, instrument or agreement, or constitute a breach of any fiduciary duty owed by the Investor to any Third-Party,
or (d) require the approval of any third-party (that has not been obtained) pursuant to any material contract, instrument,
agreement, relationship or legal obligation to which the Investor is subject or to which any of its assets, operations or management
may be subject.

 

Section 3.8 DISCLOSURE; ACCESS TO INFORMATION.
The Investor had an opportunity to review copies of the SEC Documents filed on behalf of the Company and has had access to all
publicly available information with respect to the Company.

 

Section 3.9 MANNER OF SALE. At no time
was the Investor presented with or solicited by or through any leaflet, public promotional meeting, television advertisement or
any other form of general solicitation or advertising.

 

Section 3.10 NO CONFLICTS. The execution,
delivery and performance of the Transaction Documents by the Investor and the consummation by the Investor of the transactions
contemplated hereby and thereby will not (1) result in a violation of the partnership agreement or other organizational documents
of the Investor, (2) conflict with, or constitute a material default (or an event which with notice or lapse of time or both would
become a material default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any
material agreement, contract, indenture mortgage, indebtedness or instrument to which the Investor is a party, or to the Investor’s
knowledge result in a violation of any law, rule, regulation, order, judgment or decree (including United States federal and state
securities laws and regulations) applicable to the Investor or by which any property or asset of the Investor is bound or affected.

 

    -7-

    

    

Section 3.11 NO VIOLATIONS. The Investor
is not in violation of any term of, or in default under, the partnership agreement of other organizational documents of the Investor
or any material contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule
or regulation applicable to the Investor, except for conflicts, defaults, terminations, amendments, accelerations, cancellations
and violations that would not, individually or in the aggregate, constitute or reasonably be expected to constitute a material
adverse effect on the Investor. The business of the Investor is not being conducted, and shall not be conducted, in violation of
any law, statute, ordinance, rule, order or regulation of any governmental authority or agency, regulatory or self-regulatory agency,
or court, except for violations the sanctions for which either, individually or in the aggregate, would not have or reasonably
be expected to have a material adverse effect on the Investor. Except as specifically contemplated by this Agreement and as required
under the 1933 Act or any securities laws of any states, to the Investor’s knowledge, the Investor is not required to obtain
any consent, authorization, permit or order of, or make any filing or registration (except the filing of a registration statement
as outlined in the Registration Rights Agreement) with, any court, governmental authority or agency, regulatory or self-regulatory
agency or other Third-Party in order for it to execute, deliver or perform any of its obligations under, or contemplated by, the
Equity Line Transaction Documents in accordance with the terms hereof or thereof except for those consents, authorizations, permits,
orders or filings as have been obtained or effected on or prior to the date hereof and are in full force and effect as of the date
hereof. The Investor is unaware of any facts or circumstances which might give rise to any violation or default set forth in this
Section 3(F).

 

Section 3.12 NO REGISTRATION AS A DEALER.
The Investor is not and will not be required to be registered as a “dealer” under the 1934 Act, either as a result
of its execution and performance of its obligations under this Agreement or otherwise.

 

Section 3.13 TAX LIABILITIES.
The Investor understands that it is liable for its own tax liabilities.

 

 

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company represents and warrants to the
Investor that, except as disclosed in the SEC Documents or except as set forth in the disclosure in writing and delivered prior
to the execution of this Agreement, that:

 

Section 4.1 ORGANIZATION OF THE COMPANY.
The Company is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets
and to carry on its business as currently conducted. The Company is not in violation or default of any of the provisions of its
respective certificate or articles of incorporation, bylaws or other organizational or charter documents. The Company is duly qualified
to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of
the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified
or in good standing, as the case may be, could not have or reasonably be expected to result in a Material Adverse Effect and no
proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail
such power and authority or qualification.

 

    -8-

    

    

Section 4.2 AUTHORITY. The Company has
the requisite corporate power and authority to enter into and perform its obligations under this Agreement and the other Transaction
Documents. The execution and delivery of this Agreement and the other Transaction Documents by the Company and the consummation
by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action and no further
consent or authorization of the Company or its Board of Directors or stockholders is required. Each of this Agreement and the other
Transaction Documents has been duly executed and delivered by the Company and constitutes a valid and binding obligation of the
Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies
or by other equitable principles of general application.

 

Section 4.3
CAPITALIZATION. As of the date hereof, the authorized capital stock of the Company consists of (a) 1,990,000,000 shares
of Common Stock, par value of $0.001 per share, of which approximately  655,877,775
shares of Common Stock are issued and outstanding and (b) 10,000,000 shares of preferred stock, of which 0 are issued and
outstanding. Except as set forth in the Form 10Q for the Quarter Ended December 31, 2018 filed February 21, 2019, except for the
sale and issuance of 6,625,391, the Company has not issued any capital stock since its most recently filed periodic report under
the Exchange Act. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate
in the transactions contemplated by the Transaction Documents. Except as disclosed in the SEC Documents, and except as a result
of the purchase and sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable
for, or giving any Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings
or arrangements by which the Company is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents.
The issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any
Person (other than the Investor) and will not result in a right of any holder of Company securities to adjust the exercise, conversion,
exchange or reset price under any of such securities. There are no stockholders’ agreements, voting agreements or other similar
agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company,
between or among any of the Company’s stockholders.

 

Section 4.4 LISTING AND MAINTENANCE REQUIREMENTS.
The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed
to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange
Act nor has the Company received any notification that the SEC is contemplating terminating such registration. The Company has
not, in the twelve (12) months preceding the date hereof, received notice from the Principal Market on which the Common Stock is
or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of
such Principal Market. The Company is and has no reason to believe that it will not in the foreseeable future continue to be, in
compliance with all such listing and maintenance requirements.

 

    -9-

    

    

Section 4.5 SEC DOCUMENTS; DISCLOSURE.
The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the
Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the one (1) year preceding the date
hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials,
including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC
Documents”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Documents
prior to the expiration of any such extension. As of their respective dates, the SEC Documents complied in all material respects
with the requirements of the Securities Act and the Exchange Act, as applicable, and other federal laws, rules and regulations
applicable to such SEC Documents, and none of the SEC Documents when filed contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Documents
comply as to form and substance in all material respects with applicable accounting requirements and the published rules and regulations
of the SEC or other applicable rules and regulations with respect thereto. Such financial statements have been prepared in accordance
with generally accepted accounting principles applied on a consistent basis during the periods involved (except (a) as may be otherwise
indicated in such financial statements or the notes thereto or (b) in the case of unaudited interim statements, to the extent they
may not include footnotes or may be condensed or summary statements) and fairly present in all material respects the financial
position of the Company as of the dates thereof and the results of operations and cash flows for the periods then ended (subject,
in the case of unaudited statements, to normal, immaterial, year-end audit adjustments). Except with respect to the material terms
and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that neither it nor any other
Person acting on its behalf has provided the Investor or its agents or counsel with any information that it believes constitutes
or might constitute material, non-public information. The Company understands and confirms that the Investor will rely on the foregoing
representation in effecting transactions in securities of the Company.

 

Section 4.6 VALID ISSUANCES. The Securities
are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly
issued, fully paid, and non-assessable, free and clear of all Liens imposed by the Company other than restrictions on transfer
provided for in the Transaction Documents.

 

Section 4.7 NO CONFLICTS. The execution,
delivery and performance of this Agreement and the other Transaction Documents by the Company and the consummation by the Company
of the transactions contemplated hereby and thereby, including, without limitation, the issuance of the Put Shares, do not and
will not: (a) result in a violation of the Company’s certificate or articles of incorporation, by-laws or other organizational
or charter documents, (b) conflict with, or constitute a material default (or an event that with notice or lapse of time or both
would become a material default) under, result in the creation of any Lien upon any of the properties or assets of the Company,
or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, instrument or
any “lock-up” or similar provision of any underwriting or similar agreement to which the Company is a party, or (c)
result in a violation of any federal, state or local law, rule, regulation, order, judgment or decree (including federal and state
securities laws and regulations) applicable to the Company or by which any property or asset of the Company is bound or affected
(except for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually
or in the aggregate, have a Material Adverse Effect) nor is the Company otherwise in violation of, conflict with or in default
under any of the foregoing. The business of the Company is not being conducted in violation of any law, ordinance or regulation
of any governmental entity, except for possible violations that either singly or in the aggregate do not and will not have a Material
Adverse Effect. The Company is not required under federal, state or local law, rule or regulation to obtain any consent, authorization
or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform
any of its obligations under this Agreement or the other Transaction Documents (other than any SEC, FINRA or state securities filings
that may be required to be made by the Company subsequent to any Closing or any registration statement that may be filed pursuant
hereto); provided that, for purposes of the representation made in this sentence, the Company is assuming and relying upon the
accuracy of the relevant representations and agreements of Investor herein.

 

    -10-

    

    

Section 4.8 NO MATERIAL ADVERSE CHANGE.
No event has occurred that would have a Material Adverse Effect on the Company that has not been disclosed in subsequent SEC filings.

 

Section 4.9 LITIGATION AND OTHER PROCEEDINGS.
Except as disclosed in the SEC Documents, there are no actions, suits, investigations, inquiries or proceedings pending or, to
the knowledge of the Company, threatened against or affecting the Company or any of its properties, nor has the Company received
any written or oral notice of any such action, suit, proceeding, inquiry or investigation, which would have a Material Adverse
Effect. No judgment, order, writ, injunction or decree or award has been issued by or, to the knowledge of the Company, requested
of any court, arbitrator or governmental agency which would have a Material Adverse Effect. There has not been, and to the knowledge
of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company or any current or former
director or officer of the Company.

 

Section 4.10 REGISTRATION RIGHTS. No
Person (other than the Investor) has any right to cause the Company to effect the registration under the Securities Act of any
securities of the Company.

 

Section 4.11 TRANSACTIONS WITH AFFILIATES.
Without the prior written consent of the Investor, the Company shall not, and shall cause each of its Subsidiaries not to, enter
into, amend, modify or supplement, or permit any Subsidiary to enter into, amend, modify or supplement, any agreement, transaction,
commitment or arrangement with any of its or any Subsidiary's officers, directors, persons who were officers or directors at any
time during the previous two (2) years, shareholders who beneficially own 5% or more of the Common Stock, or Affiliates or with
any individual related by blood, marriage or adoption to any such individual or with any entity in which any such entity or individual
owns a 5% or more beneficial interest (each a “Related Party”), except for (1) customary employment arrangements and
benefit programs on reasonable terms, (2) any agreement, transaction, commitment or arrangement on an arms-length basis on terms
no less favorable than terms which would have been obtainable from a disinterested Third-Party other than such Related Party,(3)
any agreement, transaction, commitment or arrangement which is approved by a majority of the disinterested directors of the Company,
or (4) extensions or amendments of any existing employment agreement. For purposes hereof, any director who is also an officer
of the Company or any Subsidiary of the Company shall not be a disinterested director with respect to any such agreement, transaction,
commitment or arrangement. “Affiliate” for purposes hereof means, with respect to any person or entity, another person
or entity that, directly or indirectly, (1) has a 5% or more equity interest in that person or entity, (2) has 5% or more common
ownership with that person or entity, (3) controls that person or entity, or (4) is under common control with that person or entity.
“Control” or “Controls” for purposes hereof means that a person or entity has the power, directly or indirectly,
to conduct or govern the policies of another person or entity.

 

 

ARTICLE V

COVENANTS OF INVESTOR

 

Section 5.1 COMPLIANCE WITH LAW; TRADING
IN SECURITIES. The Investor’s trading activities with respect to shares of Common Stock will be in compliance with all
applicable state and federal securities laws and regulations and the rules and regulations of FINRA and the Principal Market.

 

Section 5.2 SHORT SALES AND CONFIDENTIALITY.
Neither the Investor, nor any affiliate of the Investor acting on its behalf or pursuant to any understanding with it, will execute
any Short Sales during the period from the date hereof to the end of the Commitment Period. For the purposes hereof, and in accordance
with Regulation SHO, the sale after delivery of a Put Notice of such number of shares of Common Stock reasonably expected to be
purchased under a Put Notice shall not be deemed a Short Sale. The Investor shall, until such time as the transactions contemplated
by this Agreement are publicly disclosed by the Company in accordance with the terms of this Agreement, maintain the confidentiality
of the existence and terms of this transaction and the information included in the Transaction Documents.

 

    -11-

    

    

ARTICLE VI

COVENANTS OF THE COMPANY

 

Section 6.1 RESERVATION OF COMMON STOCK.
On the date hereof, the Company will reserve 138,461,538 shares of Common Stock from its authorized and unissued Common Stock to
provide for all issuances of Common Stock under the Transaction Documents. The Company shall further require the Transfer Agent
to hold the shares of Common Stock reserved pursuant to the Share Reserve exclusively for the benefit of the Investor.

 

Section 6.2 LISTING OF COMMON STOCK.
The Company shall promptly secure the listing of all of the Put Shares to be issued to the Investor hereunder on the Principal
Market, if required by the Principal Market, (subject to official notice of issuance) and shall use commercially reasonable best
efforts to maintain, so long as any shares of Common Stock shall be so listed, the listing of all such Put Shares from time to
time issuable hereunder. The Company shall use its commercially reasonable efforts to continue the listing and trading of the Common
Stock on the Principal Market (including, without limitation, maintaining sufficient net tangible assets) and will comply in all
respects with the Company’s reporting, filing and other obligations under the bylaws or rules of FINRA and the Principal
Market.

 

Section 6.3 OTHER EQUITY LINES AND CONVERTIBLE
NOTES. So long as this Agreement remains in effect, the Company covenants and agrees that it will not, without the prior written
consent of the Investor, enter into any other equity line of credit agreement with any other party or have any Variable Security
Holders, excluding the Investor, without the Investor’s prior written consent, which consent may be granted or withheld in
the Investor’s sole and absolute discretion. For the avoidance of doubt, nothing contained in the Transaction Documents shall
restrict, or require the Investor’s consent for, any agreement providing for the issuance or distribution of any equity securities
of the Company pursuant to any agreement or arrangement that is not covered in this Section 6.3.

 

Section 6.4 FILING OF CURRENT REPORT AND
REGISTRATION STATEMENT. The Company agrees that it shall file a Current Report on Form 8-K, including the Transaction Documents
as exhibits thereto, with the SEC within the time required by the Exchange Act, relating to the transactions contemplated by, and
describing the material terms and conditions of, the Transaction Documents (the “Current Report”). The Company shall
permit the Investor to review and comment upon the final pre-filing draft version of the Current Report at least two (2) Trading
Days prior to its filing with the SEC, and the Company shall give reasonable consideration to all such comments. The Investor shall
use its reasonable best efforts to comment upon the final pre-filing draft version of the Current Report within one (1) Trading
Day from the date the Investor receives it from the Company. The Company shall also file with the SEC, on or before April __. 2019,
a new registration statement (the “Registration Statement”) covering the resale of the Put Shares.

 

ARTICLE VII

CONDITIONS TO DELIVERY OF

PUT NOTICES AND CONDITIONS TO CLOSING

 

Section 7.1 CONDITIONS PRECEDENT TO THE
RIGHT OF THE COMPANY TO ISSUE AND SELL PUT SHARES. The right of the Company to issue and sell the Put Shares to the Investor
is subject to the satisfaction of each of the conditions set forth below:

 

(a)       ACCURACY
OF INVESTOR’S REPRESENTATIONS AND WARRANTIES. The representations and warranties of the Investor shall be true and correct
in all material respects as of the date of this Agreement and as of the date of each Closing as though made at each such time.

 

    -12-

    

    
(b)       PERFORMANCE
BY INVESTOR. Investor shall have performed, satisfied and complied in all respects with all covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Investor at or prior to such Closing.

 

(c)       PRINCIPAL
MARKET REGULATION. If applicable by the Principal Market, the Company shall not issue any Put Shares, and the Investor shall
not have the right to receive any Put Shares, if the issuance of such Put Shares would exceed the aggregate number of shares of
Common Stock which the Company may issue without breaching the Company’s obligations under the rules or regulations of the
Principal Market (the “Exchange Cap”).

 

Section 7.2 CONDITIONS PRECEDENT TO THE
OBLIGATION OF INVESTOR TO PURCHASE PUT SHARES. The obligation of the Investor hereunder to purchase Put Shares is subject to
the satisfaction of each of the following conditions:

 

(a)       EFFECTIVE
REGISTRATION STATEMENT. The Registration Statement, and any amendment or supplement thereto, shall remain effective for the
resale by the Investor of the Put Shares and (i) neither the Company nor the Investor shall have received notice that the SEC has
issued or intends to issue a stop order with respect to such Registration Statement or that the SEC otherwise has suspended or
withdrawn the effectiveness of such Registration Statement, either temporarily or permanently, or intends or has threatened to
do so and (ii) no other suspension of the use of, or withdrawal of the effectiveness of, such Registration Statement or related
prospectus shall exist.

 

(b)       ACCURACY
OF THE COMPANY’S REPRESENTATIONS AND WARRANTIES. The representations and warranties of the Company shall be true and
correct in all material respects as of the date of this Agreement and as of the date of each Closing (except for representations
and warranties specifically made as of a particular date).

 

(c)       PERFORMANCE
BY THE COMPANY. The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied with by the Company.

 

(d)       NO
INJUNCTION. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or adopted by any court or governmental authority of competent jurisdiction that prohibits or directly and materially adversely
affects any of the transactions contemplated by the Transaction Documents, and no proceeding shall have been commenced that may
have the effect of prohibiting or materially adversely affecting any of the transactions contemplated by the Transaction Documents.

 

(e)       ADVERSE
CHANGES. Since the date of filing of the Company’s most recent SEC Document, no event that had or is reasonably likely
to have a Material Adverse Effect has occurred.

 

(f)       NO
SUSPENSION OF TRADING IN OR DELISTING OF COMMON STOCK. The trading of the Common Stock shall not have been suspended by the
SEC, the Principal Market or FINRA, or otherwise halted for any reason, and the Common Stock shall have been approved for listing
or quotation on and shall not have been delisted from the Principal Market. In the event of a suspension, delisting, or halting
for any reason, of the trading of the Common Stock, as contemplated by this Section 7.2(f), the Investor shall have the right to
return to the Company any remaining amount of Put Shares associated with such Put, and the Purchase Price with respect to such
Put shall be reduced accordingly.

 

    -13-

    

    
(g)       BENEFICIAL
OWNERSHIP LIMITATION. The number of Put Shares then to be purchased by the Investor shall not exceed the number of such shares
that, when aggregated with all other shares of Common Stock then owned by the Investor beneficially or deemed beneficially owned
by the Investor, would result in the Investor owning more than the Beneficial Ownership Limitation (as defined below), as determined
in accordance with Section 16 of the Exchange Act and the regulations promulgated thereunder. For purposes of this Section 7.2(g),
in the event that the amount of Common Stock outstanding, as determined in accordance with Section 16 of the Exchange Act and the
regulations promulgated thereunder, is greater on a Closing Date than on the date upon which the Put Notice associated with such
Closing Date is given, the amount of Common Stock outstanding on such Closing Date shall govern for purposes of determining whether
the Investor, when aggregating all purchases of Common Stock made pursuant to this Agreement, would own more than the Beneficial
Ownership Limitation following such Closing Date. The “Beneficial Ownership Limitation” shall be 4.99% of the number
of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable pursuant
to a Put Notice.

 

(h)       PRINCIPAL
MARKET REGULATION. The issuance of the Put Shares shall not exceed the Exchange Cap, if applicable.

 

(i)       NO
KNOWLEDGE. The Company shall have no knowledge of any event more likely than not to have the effect of causing the Registration
Statement to be suspended or otherwise ineffective (which event is more likely than not to occur within the fifteen (15) Trading
Days following the Trading Day on which such Put Notice is deemed delivered).

 

(j)       NO
VIOLATION OF SHAREHOLDER APPROVAL REQUIREMENT. The issuance of the Put Shares shall not violate the shareholder approval requirements
of the Principal Market.

 

(k)      OFFICER’S
CERTIFICATE. On the date of delivery of each Put Notice, the Investor shall have received the Closing Certificate executed
by an executive officer of the Company and to the effect that all the conditions to such Closing shall have been satisfied as of
the date of each such certificate.

 

(l)       DWAC
ELIGIBLE. The Common Stock must be DWAC Eligible and not subject to a “DTC chill.”

 

(m)     SEC DOCUMENTS.
All reports, schedules, registrations, forms, statements, information and other documents required to have been filed by the Company
with the SEC pursuant to the reporting requirements of the Exchange Act (other than Forms 8-K) shall have been filed with the SEC
within the applicable time periods prescribed for such filings under the Exchange Act.

  

(n)       RESERVE.
The Company shall have reserved sufficient shares of its Common Stock for the Investor, pursuant to the terms of this Agreement
and all other contracts between the Company and Investor.

 

 

ARTICLE VIII

LEGENDS

 

Section 8.1 NO RESTRICTIVE STOCK LEGEND.
No restrictive stock legend shall be placed on the share certificates representing the Put Shares.

 

Section 8.2 INVESTOR’S COMPLIANCE.
Nothing in this Article VIII shall affect in any way the Investor’s obligations hereunder to comply with all applicable securities
laws upon the sale of the Common Stock.

 

    -14-

    

    

ARTICLE IX

NOTICES; INDEMNIFICATION

 

Section 9.1 NOTICES. All notices, demands,
requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return receipt requested,
postage prepaid, (c) delivered by reputable air courier service with charges prepaid, or (d) transmitted by hand delivery, telegram,
or email as a PDF, addressed as set forth below or to such other address as such party shall have specified most recently by written
notice given in accordance herewith. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (i) upon hand delivery or delivery by email at the address designated below (if delivered on a business day during normal
business hours where such notice is to be received), or the first business day following such delivery (if delivered other than
on a business day during normal business hours where such notice is to be received) or (ii) on the second business day following
the date of mailing by express courier service or on the fifth business day after deposited in the mail, in each case, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.

 

The addresses for such communications shall
be:

 

If to the Company:

 

Sugarmade, Inc.

750 Royal Oaks Drive, Suite
#108

Monrovia, CA 91016

Telephone: (818) 929-8013

 

If to the Investor:

 

K&J Funds, LLC

11835 W. Olympic Blvd.,
Suite #1235

Los Angeles, CA 90064

Telephone: (714) 423-1513

 

Either party hereto may from time to time change
its address or email for notices under this Section 9.1 by giving at least ten (10) days’ prior written notice of such changed
address to the other party hereto.

 

    -15-

    

    

Section 9.2 INDEMNIFICATION. Each party
(an “Indemnifying Party”) agrees to indemnify and hold harmless the other party along with its officers, directors,
employees, and authorized agents, and each Person or entity, if any, who controls such party within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act (an “Indemnified Party”) from and against any Damages, joint or
several, and any action in respect thereof to which the Indemnified Party becomes subject to, resulting from, arising out of or
relating to (i) any misrepresentation, breach of warranty or nonfulfillment of or failure to perform any covenant or agreement
on the part of the Indemnifying Party contained in this Agreement, (ii) any untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement or any post-effective amendment thereof or supplement thereto, or the omission or
alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading,
(iii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or contained
in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the
SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in the
light of the circumstances under which the statements therein were made, not misleading, or (iv) any violation or alleged violation
by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation under the Securities
Act, the Exchange Act or any state securities law, as such Damages are incurred, except to the extent such Damages result primarily
from the Indemnified Party’s failure to perform any covenant or agreement contained in this Agreement or the Indemnified
Party’s negligence, recklessness or bad faith in performing its obligations under this Agreement; provided, however, that
the foregoing indemnity agreement shall not apply to any Damages of an Indemnified Party to the extent, but only to the extent,
arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission made by an Indemnifying
Party in reliance upon and in conformity with written information furnished to the Indemnifying Party by the Indemnified Party
expressly for use in the Registration Statement, any post-effective amendment thereof or supplement thereto, or any preliminary
prospectus or final prospectus (as amended or supplemented).

 

Section 9.3 METHOD OF ASSERTING INDEMNIFICATION
CLAIMS. All claims for indemnification by any Indemnified Party under Section 9.2 shall be asserted and resolved as follows:

 

(a)       In
the event any claim or demand in respect of which an Indemnified Party might seek indemnity under Section 9.2 is asserted against
or sought to be collected from such Indemnified Party by a Person other than a party hereto or an affiliate thereof (a “Third-Party
Claim”), the Indemnified Party shall deliver a written notification, enclosing a copy of all papers served, if any, and specifying
the nature of and basis for such Third-Party Claim and for the Indemnified Party’s claim for indemnification that is being
asserted under any provision of Section 9.2 against an Indemnifying Party, together with the amount or, if not then reasonably
ascertainable, the estimated amount, determined in good faith, of such Third-Party Claim (a “Claim Notice”) with reasonable
promptness to the Indemnifying Party. If the Indemnified Party fails to provide the Claim Notice with reasonable promptness after
the Indemnified Party receives notice of such Third-Party Claim, the Indemnifying Party shall not be obligated to indemnify the
Indemnified Party with respect to such Third-Party Claim to the extent that the Indemnifying Party’s ability to defend has
been prejudiced by such failure of the Indemnified Party. The Indemnifying Party shall notify the Indemnified Party as soon as
practicable within the period ending thirty (30) calendar days following receipt by the Indemnifying Party of either a Claim Notice
or an Indemnity Notice (as defined below) (the “Dispute Period”) whether the Indemnifying Party disputes its
liability or the amount of its liability to the Indemnified Party under Section 9.2 and whether the Indemnifying Party desires,
at its sole cost and expense, to defend the Indemnified Party against such Third-Party Claim.

 

    -16-

    

    

(i)       If
the Indemnifying Party notifies the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend the
Indemnified Party with respect to the Third-Party Claim pursuant to this Section 9.3(a), then the Indemnifying Party shall have
the right to defend, with counsel reasonably satisfactory to the Indemnified Party, at the sole cost and expense of the Indemnifying
Party, such Third-Party Claim by all appropriate proceedings, which proceedings shall be vigorously and diligently prosecuted by
the Indemnifying Party to a final conclusion or will be settled at the discretion of the Indemnifying Party (but only with the
consent of the Indemnified Party in the case of any settlement that provides for any relief other than the payment of monetary
damages or that provides for the payment of monetary damages as to which the Indemnified Party shall not be indemnified in full
pursuant to Section 9.2). The Indemnifying Party shall have full control of such defense and proceedings, including any compromise
or settlement thereof; provided, however, that the Indemnified Party may, at the sole cost and expense of the Indemnified Party,
at any time prior to the Indemnifying Party’s delivery of the notice referred to in the first sentence of this clause (i),
file any motion, answer or other pleadings or take any other action that the Indemnified Party reasonably believes to be necessary
or appropriate to protect its interests; and provided, further, that if requested by the Indemnifying Party, the
Indemnified Party will, at the sole cost and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnifying
Party in contesting any Third-Party Claim that the Indemnifying Party elects to contest. The Indemnified Party may participate
in, but not control, any defense or settlement of any Third-Party Claim controlled by the Indemnifying Party pursuant to this clause
(i), and except as provided in the preceding sentence, the Indemnified Party shall bear its own costs and expenses with respect
to such participation. Notwithstanding the foregoing, the Indemnified Party may take over the control of the defense or settlement
of a Third-Party Claim at any time if it irrevocably waives its right to indemnity under Section 9.2 with respect to such Third-Party
Claim.

 

(ii)       If
the Indemnifying Party fails to notify the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend
the Third-Party Claim pursuant to Section 9.3(a), or if the Indemnifying Party gives such notice but fails to prosecute vigorously
and diligently or settle the Third-Party Claim, or if the Indemnifying Party fails to give any notice whatsoever within the Dispute
Period, then the Indemnified Party shall have the right to defend, at the sole cost and expense of the Indemnifying Party, the
Third-Party Claim by all appropriate proceedings, which proceedings shall be prosecuted by the Indemnified Party in a reasonable
manner and in good faith or will be settled at the discretion of the Indemnified Party(with the consent of the Indemnifying Party,
which consent will not be unreasonably withheld). The Indemnified Party will have full control of such defense and proceedings,
including any compromise or settlement thereof; provided, however, that if requested by the Indemnified Party, the Indemnifying
Party will, at the sole cost and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnified Party and
its counsel in contesting any Third-Party Claim which the Indemnified Party is contesting. Notwithstanding the foregoing provisions
of this clause (ii), if the Indemnifying Party has notified the Indemnified Party within the Dispute Period that the Indemnifying
Party disputes its liability or the amount of its liability hereunder to the Indemnified Party with respect to such Third-Party
Claim and if such dispute is resolved in favor of the Indemnifying Party in the manner provided in clause (iii) below, the Indemnifying
Party will not be required to bear the costs and expenses of the Indemnified Party’s defense pursuant to this clause (ii)
or of the Indemnifying Party’s participation therein at the Indemnified Party’s request, and the Indemnified Party
shall reimburse the Indemnifying Party in full for all reasonable costs and expenses incurred by the Indemnifying Party in connection
with such litigation. The Indemnifying Party may participate in, but not control, any defense or settlement controlled by the Indemnified
Party pursuant to this clause (ii), and the Indemnifying Party shall bear its own costs and expenses with respect to such participation.

 

(iii)       If
the Indemnifying Party notifies the Indemnified Party that it does not dispute its liability or the amount of its liability to
the Indemnified Party with respect to the Third-Party Claim under Section 9.2 or fails to notify the Indemnified Party within the
Dispute Period whether the Indemnifying Party disputes its liability or the amount of its liability to the Indemnified Party with
respect to such Third-Party Claim, the amount of Damages specified in the Claim Notice shall be conclusively deemed a liability
of the Indemnifying Party under Section 9.2 and the Indemnifying Party shall pay the amount of such Damages to the Indemnified
Party on demand. If the Indemnifying Party has timely disputed its liability or the amount of its liability with respect to such
claim, the Indemnifying Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of such dispute;
provided, however, that if the dispute is not resolved within thirty (30) days after the Claim Notice, the Indemnifying
Party shall be entitled to institute such legal action as it deems appropriate.

 

    -17-

    

    

(b)       In
the event any Indemnified Party should have a claim under Section 9.2 against the Indemnifying Party that does not involve a Third-Party
Claim, the Indemnified Party shall deliver a written notification of a claim for indemnity under Section 9.2 specifying the nature
of and basis for such claim, together with the amount or, if not then reasonably ascertainable, the estimated amount, determined
in good faith, of such claim (an “Indemnity Notice”) with reasonable promptness to the Indemnifying Party. The failure
by any Indemnified Party to give the Indemnity Notice shall not impair such party’s rights hereunder except to the extent
that the Indemnifying Party demonstrates that it has been irreparably prejudiced thereby. If the Indemnifying Party notifies the
Indemnified Party that it does not dispute the claim or the amount of the claim described in such Indemnity Notice or fails to
notify the Indemnified Party within the Dispute Period whether the Indemnifying Party disputes the claim or the amount of the claim
described in such Indemnity Notice, the amount of Damages specified in the Indemnity Notice will be conclusively deemed a liability
of the Indemnifying Party under Section 9.2 and the Indemnifying Party shall pay the amount of such Damages to the Indemnified
Party on demand. If the Indemnifying Party has timely disputed its liability or the amount of its liability with respect to such
claim, the Indemnifying Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of such dispute;
provided, however, that if the dispute is not resolved within thirty (30) days after the Claim Notice, the Indemnifying Party shall
be entitled to institute such legal action as it deems appropriate.

 

(c)       The
Indemnifying Party agrees to pay the Indemnified Party, promptly as such expenses are incurred and are due and payable, for any
reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim.

 

(d)       The
indemnity provisions contained herein shall be in addition to (i) any cause of action or similar rights of the Indemnified Party
against the Indemnifying Party or others, and (ii) any liabilities the Indemnifying Party may be subject to.

 

ARTICLE X

MISCELLANEOUS

 

Section 10.1
GOVERNING LAW; JURISDICTION.  All disputes arising under this Agreement shall be governed by and interpreted in accordance
with the laws of the State of California, without regard to principles of conflict of laws. The parties to this agreement will
submit all disputes arising under this agreement to arbitration in Los Angeles, CA before a single arbitrator of the American Arbitration
Association (“AAA”). The arbitrator shall be selected by application of the rules of the AAA, or by mutual agreement
of the parties, except that such arbitrator shall be an attorney admitted to practice law in the State of California. No party
to this Agreement will challenge the jurisdiction or venue provisions as provided in this section. No party to this agreement will
challenge the jurisdiction or venue provisions as provided in this section. Nothing contained herein shall prevent the party from
obtaining an injunction.

 

Section 10.2 JURY TRIAL WAIVER. The
Company and the Investor hereby waive a trial by jury in any action, proceeding or counterclaim brought by either of the parties
hereto against the other in respect of any matter arising out of or in connection with the Transaction Documents.

 

Section 10.3 ASSIGNMENT. This Agreement
shall be binding upon and inure to the benefit of the Company and the Investor and their respective successors. Neither this Agreement
nor any rights of the Investor or the Company hereunder may be assigned by either party to any other Person.

 

Section 10.4 NO THIRD-PARTY BENEFICIARIES.
This Agreement is intended for the benefit of the Company and the Investor and their respective successors, and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person, except as set forth in Section 9.3.

 

    -18-

    

    
Section 10.5 TERMINATION. The Company
may terminate this Agreement at any time by written notice to the Investor, except while the Investor holds any of the Put Shares.
In addition, this Agreement shall automatically terminate on the earlier of (i) the end of the Commitment Period; (ii) the date
that the Company sells and the Investor purchases the Maximum Commitment Amount; or (iii) the date in which the Registration Statement
is no longer effective, or (iv) the date that, pursuant to or within the meaning of any Bankruptcy Law, the Company commences a
voluntary case or any Person commences a proceeding against the Company, a Custodian is appointed for the Company or for all or
substantially all of its property or the Company makes a general assignment for the benefit of its creditors; provided, however,
that the provisions of Articles III, IV, V, VI, IX and the agreements and covenants of the Company and the Investor set forth in
Article X shall survive the termination of this Agreement.

 

Section 10.6 ENTIRE AGREEMENT. The Transaction
Documents, together with the exhibits, contain the entire understanding of the Company and the Investor with respect to the matters
covered herein and therein and supersede all prior agreements and understandings, oral or written, with respect to such matters,
which the parties acknowledge have been merged into such documents and exhibits.

 

Section 10.7 FEES AND EXPENSES. Except
as expressly set forth in the Transaction Documents or any other writing to the contrary, each party shall pay the fees and expenses
of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees
(including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company),
stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Investor.

 

Section 10.8 COUNTERPARTS. This Agreement
may be executed in multiple counterparts, each of which may be executed by less than all of the parties and shall be deemed to
be an original instrument which shall be enforceable against the parties actually executing such counterparts and all of which
together shall constitute one and the same instrument. This Agreement may be delivered to the other parties hereto by email of
a copy of this Agreement bearing the signature of the parties so delivering this Agreement.

 

Section 10.9 SEVERABILITY. In the event
that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement shall continue in full force and effect without said provision; provided that such severability shall be ineffective
if it materially changes the economic benefit of this Agreement to any party.

 

Section 10.10 FURTHER ASSURANCES. Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

Section 10.11 NO STRICT CONSTRUCTION.
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and
no rules of strict construction will be applied against any party.

 

Section 10.12 EQUITABLE RELIEF. The
Company recognizes that in the event that it fails to perform, observe, or discharge any or all of its obligations under this Agreement,
any remedy at law may prove to be inadequate relief to the Investor. The Company therefore agrees that the Investor shall be entitled
to temporary and permanent injunctive relief in any such case without the necessity of proving actual damages.

 

Section 10.13 TITLE AND SUBTITLES. The
titles and subtitles used in this Agreement are used for the convenience of reference and are not to be considered in construing
or interpreting this Agreement.

 

    -19-

    

    
Section 10.14 AMENDMENTS; WAIVERS. No
provision of this Agreement may be amended or waived by the parties from and after the date that is one (1) Trading Day immediately
preceding the initial filing of the Registration Statement with the SEC. Subject to the immediately preceding sentence, (i) no
provision of this Agreement may be amended other than by a written instrument signed by both parties hereto and (ii) no provision
of this Agreement may be waived other than in a written instrument signed by the party against whom enforcement of such waiver
is sought. No failure or delay in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any
other right, power or privilege.

 

Section 10.15 PUBLICITY. The Company
and the Investor shall consult with each other in issuing any press releases or otherwise making public statements with respect
to the transactions contemplated hereby and no party shall issue any such press release or otherwise make any such public statement,
other than as required by law, without the prior written consent of the other parties, which consent shall not be unreasonably
withheld or delayed, except that no prior consent shall be required if such disclosure is required by law, in which such case the
disclosing party shall provide the other party with prior notice of such public statement. Notwithstanding the foregoing, the Company
shall not publicly disclose the name of the Investor without the prior written consent of the Investor, except to the extent required
by law. The Investor acknowledges that this Agreement and all or part of the Transaction Documents may be deemed to be “material
contracts,” as that term is defined by Item 601(b)(10) of Regulation S-K, and that the Company may therefore be required
to file such documents as exhibits to reports or registration statements filed under the Securities Act or the Exchange Act. The
Investor further agrees that the status of such documents and materials as material contracts shall be determined solely by the
Company, in consultation with its counsel.

 

[Signature are contained on the following page]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        

    -20-

    

    

IN WITNESS WHEREOF, the parties have
caused this Agreement to be duly executed by their respective officers thereunto duly authorized as of the day and year first above
written.

 

	 	SUGARMADE, INC.
	 	 
	 	 
	 	By:  /s/ Jimmy Chan
	 	Name: Jimmy Chan
	 	
        Title: Chief Executive Officer

         

        K & J FUNDS, LLC

	 	 
	 	 
	 	By: /s/ Huy John Vu
	 	Name: Huy John Vu
	 	Title: Managing Partner

 

 

    -21-

    

    

EXHIBIT A

 

FORM OF PUT NOTICE

 

Date:

RE: Put Notice Number 

 

Dear Mr. Vu:

 

This is to inform you that as of today, Sugarmade, Inc., a Delaware
corporation (the "Company"), hereby elects to exercise its right pursuant to the Investment Agreement entered
into with K&J Funds, LLC (“Investor”) to require K&J Funds, LLC to purchase shares of its common stock.
The Company hereby certifies that:

 

1. The undersigned is the duly elected ______________ of the Company.

 

2. There are no fundamental changes to the information set forth
in the Registration Statement as filed which would require the Company to file a post-effective amendment or further post-effective
amendment to the Registration Statement

 

3. The Company has performed in all material respects all covenants
and agreements to be performed by the Company and has complied in all material respects with all obligations and conditions contained
in this Agreement on or prior to the Put Notice Date and shall continue to perform in all material respects all covenants and agreements
to be performed by the Company through the applicable Put Date. All conditions to the delivery of this Put Notice are satisfied
as of the date hereof.

 

4. The undersigned hereby represents, warrants and covenants that
it has made all filings (“SEC Filings”) required to be made by it pursuant to applicable securities laws (including,
without limitation, all filings required under the Securities Exchange Act of 1934, which include Forms 10-Q, 10-K, 8-K, etc.).
All SEC Filings and other public disclosures made by the Company, including, without limitation, all press releases, analysts’
meetings and calls, etc. (collectively, the “Public Disclosures”), have been reviewed and approved for release by the
Company’s attorneys and, if containing financial information, the Company’s independent certified public accountants.
None of the Company’s Public Disclosures contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading.

 

5. The amount of this Put is up to  shares.

 

6. The Pricing Period runs from  until .

 

7. The Suspension Price is $.

 

8. The current number of shares issued and outstanding as of the
Company are: 

 

9. The number of shares currently available for resale pursuant
to the Registration Statement on Form S-1 for the

Equity Line are:.

 

 

SUGARMADE, INC.

 

 

By:

Name:

Title:

 

    -22-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00294-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00294-of-00352.parquet"}]]