Document:

Exhibit 4.5.8

 

ENTRUSTMENT LOAN AGREEMENT (this “Agreement”)

 

(For Corporate Business)

 

Serial No. : Xing Yin Shen Tian An
Wei Jie Zi (2015) No. 0007

 

	Entrustor	:	Shenzhen Nepstar Pharmaceutical Co., Ltd. (affixed with the corporate seal)
	Domicile	:	Neptunus Yinhe Keji Building, Kejizhong 3rd Road, Shenzhen 
	Legal Representative/Principal Officer	:	Zhang Yingnan 

	Contact Person	:	                                               	Title	:	_______________________

	Mailing Address	:	Neptunus Yinhe Keji Building, Kejizhong 3rd Road, Shenzhen 

	Postal Code	:	518000                                        	Telex	:	_______________________
	Telephone Number	:	26430133                      	Facsimile	:	________________________

	Lender	:	Shenzhen Tian’an Sub-Branch of Industrial Bank Co., Ltd. (the “Bank”)
	Domicile	:	Suite 101, Tower A, Phase 1, Tian An Innovation Technology Square 
	Legal Representative/Principal Officer	:	Zhang Pengfeng 

	Contact Person	:	Lin Beixiang	Title	:	_______________________

	Mailing Address	:	Suite 101, Tower A, Phase 1, Tian An Innovation Technology Square 

	Postal Code	:	518000                         	Telex	:	__________________________
	Telephone Number	:	83432045                      	Facsimile	:	_________________________

	Borrower	:	Shenzhen Nepstar Management Consulting Co., Ltd. (affixed with the corporate seal)
	Domicile	:	15C, Haiwang Building, Nanyou Avenue,  Nanshan District, Shenzhen 
	Legal Representative/Principal Officer	:	Tu Feng 

	Contact Person	:	______________________	Title	:	___________________________

	Mailing Address	:	15C, Haiwang Building, Nanyou Avenue,  Nanshan District, Shenzhen 

	Postal Code	:	518000                               	Telex	:	___________________________
	

                                    Telephone Number
	:	___________________	Facsimile	:	___________________________

 

	Place of Execution of this Agreement	:	
        Shenzhen Branch of Industrial Bank Co.,
        Ltd.

        Industrial Bank Building, Futian District,
        Shenzhen

   

     

     

    

 

Important Reminder for Agreement Signing

 

In order to protect your interest, please
read through carefully, examine and confirm each of the following items prior to your signing of this Agreement:

 

I.            You have the right to sign this Agreement,
and you have obtained all the authorizations necessary for your signing hereof to the extent any such authorization of any person
is required under any law;

 

II.           You have carefully read and fully understood
the provisions in this Agreement and have paid special attention to those provisions concerning the imposition of liabilities,
or release of or limitations on the liabilities of the Bank, and the contents of those sections highlighted in bold;

 

III.          Both your company and you yourself
have fully understood the meaning of, the corresponding legal consequences that may arise from, and are willing to be bound by,
the provisions in this Agreement;

 

IV.          The draft of this Agreement provided
by the Bank is a form only. In this draft, there is a blank left after each relevant article, and at the end of the Agreement,
an article under the heading of “Supplementary Provisions” is inserted for the parties to this Agreement to make any
amendments, additions or deletions; and

 

V.           Where you have any question about this
Agreement, please promptly consult the Bank.

 

     

     

    

 

Pursuant to the Entrusted Loan Entrustment
Agreement by and between the Entrustor and the Lender dated October 30, 2015 numbered as Xing Yin Shen Tian An Wei Tuo Zi (2015)
No. 0007, the Lender is entrusted by the Entrustor to disburse the Entrusted Loan to the Borrower. With a view to specifying
the responsibilities and to acting in good faith, in accordance with relevant laws and regulations of the People’s Republic
of China (the “PRC”) and after negotiations on an equal footing, the parties hereto hereby enter into this Entrustment
Loan Agreement for mutual observance.

 

Article 1 Definitions and Interpretation

 

Unless otherwise agreed in writing among
the parties hereto, when used in this Agreement, the following terms shall be defined and interpreted as follows:

 

1.            “Entrusted Loan” means a
loan that shall be disbursed by the Lender (i.e., the Entrustee) for and on behalf of the Entrustor to a specific person, for specific
purposes, in a specific amount, for a specific tenor and at a specific interest rate determined by the Entrustor from the funds
provided by the Entrustor to the Lender, and shall be recovered with the assistance of the Lender. In connection with each Entrusted
Loan, the Lender shall receive the charges only and not take any risks in any form.

 

A “Loan”
means a monetary amount disbursed to the Borrower by the Lender hereunder upon the entrustment of the Entrustor.

 

A “Borrowing”
means a monetary amount received by the Borrower from the Lender after the Borrower’s request to the Lender for Borrowing
is reviewed and approved by the Lender, in each case in accordance with this Agreement.

 

Each party hereto agrees
and acknowledges that the monetary amount disbursed to the Borrower by the Lender hereunder shall be consistent to the monetary
amount received by the Borrower from the Lender hereunder.

 

2.             “Loan Risks” includes without
limitation, Legal and Policy Risks, Credit Risks, Market Risks, Operational Risks, Force Majeure Risks and Other Risks.

 

“Legal and Policy
Risks” means the risks that any Entrusted Loan is rendered unable to be recovered on time or both on time and in full as
a result of any modification of or change in applicable laws or regulations of the PRC.

 

“Credit Risks”
means the risks arising from any failure of the Borrower to satisfy its obligations for repayment under this Agreement.

 

“Market Risks”
means the risks that any Entrusted Loan is rendered unable to be recovered on time or both in full and on time as a result of any
change of various factors, such as macro policies, economic cycle or market price.

 

“Operational
Risks” means the risks that any Entrusted Loan is rendered unable to be recovered on time or both in full and on time as
a result of any incomplete or problematic procedures or improper management actions in the course of the disbursement and management
of such Entrusted Loan.

 

     

     

    

 

“Force Majeure
Risks” means the risks that any Entrusted Loan is rendered unable to be recovered on time or both in full and on time as
a result of the occurrence of any objective circumstances that are unforeseeable, unavoidable or insurmountable by either the Entrustor
or the Entrustee.

 

“Other Risks”
means any other risks that may render any Entrusted Loan unable to be recovered on time or both in full and on time, excluding
those described above.

 

3.             “Obligations” or “Master
Obligations” means the RMB obligations generated from the disbursement of any Loan to the Borrower (the debtor) by the Lender
(the creditor) hereunder after having reviewed and approved the applicable request from the Borrower, including the principal amounts,
interest, default interest, compound interest, liquidated damages, indemnities and the Expenses for the Enforcement of the Obligations
incurred by the Lender.

 

Each of the parties
hereto agrees and acknowledges that the Obligations of the Borrower towards the Lender under this Agreement shall be consistent
to the debts of the Borrower owed to the Lender under this Agreement.

 

4.             “Expenses for the Enforcement
of Obligations” includes without limitation, costs and expenses for litigations and arbitrations during the course of enforcement
of obligations, attorney fees and expenses, travel and accommodation, applications for enforcement, property preservation, and
other expenses that necessary for the enforcement of obligations.

 

5.             “Workday” used herein means
a business day of the Lender; where in the course of the performance of this Agreement, any drawdown date or repayment date falls
on a date that is not a business day of the Lender, the drawdown or repayment shall be put off till the immediately following business
day of the Lender.

 

6.             For purposes of this Agreement, the
following terms shall be defined and interpreted as follows:

 

“PBOC RMB Loan
Benchmark Rate” means the benchmark interest rate for RMB loans published by the People’s Bank of China (the “PBOC”)
that is effective from time to time.

 

“PBOC RMB Deposit
Benchmark Rate” means the benchmark interest rate for RMB deposits published by the PBOC that is effective from time to time.

 

“LPR” means
the loan prime rate calculated and published by the National Interbank Funding Center based on the best loan interest rates offered
by quoting banks that is effective from time to time.

 

“SHIBOR”
means the Shanghai Interbank Offered Rate calculated and published by the National Interbank Funding Center that is effective from
time to time.

 

“LIBOR”
means the T-2 Day London Interbank Offered Rate prevailing on London financial market, which covers such currencies as USD, Euro
Dollar and Japanese Yen. Of which, T means the date on which the loan is actually disbursed; T-2 means the second Workday prior
to the date on which the loan is actually disbursed. The definition of T and T-2 shall be applicable to all sections below.

 

“HIBOR”
means the T-2 Day Hongkong Interbank Offered Rate prevailing on Hong Kong financial market.

 

     

     

    

  

Article 2   Amount of the Borrowing

 

The Borrowing under this Agreement shall
be in an amount of RMB One Hundred and Twenty Nine Million, Two Hundred and Sixty One Thousand only.

 

Article 3   Purposes of the Borrowing

 

The Borrowing received hereunder shall
be applied towards the funding of working capital requirements. Without prior written consent of the Entrustor, the Borrower
may not apply any part of the Borrowing towards any other purpose.

 

Article 4   Tenor of the Borrowing

 

1.            The tenor of the Borrowing hereunder
shall be 12 months, starting on November 4, 2015 and ending on November 4, 2016 (the “Tenor”).

 

2.            Where the Loan is to be disbursed in
a lump-sum, the date of actual disbursement as recorded on the receipt of borrowing and/or certificate of borrowing shall be deemed
as the disbursement date. Where the date of actual disbursement is later than the disbursement date so recorded, the Tenor shall
be extended accordingly.

 

[N/A 3. Pursuant
to the instructions of the Entrustor, the Borrowing shall be disbursed by installments in accordance with the following schedule:

 

On ___[insert the applicable date],
RMB____[insert the applicable amount]; 

 

On ___[insert the applicable date],
RMB____[insert the applicable amount]; 

 

On ___[insert the applicable date],
RMB____[insert the applicable amount]; 

 

On ___[insert the applicable date],
RMB____[insert the applicable amount];

 

On ___[insert the applicable date],
RMB____[insert the applicable amount]; 

 

On ___[insert the applicable date],
RMB____[insert the applicable amount]; 

 

The Lender shall transfer each of the
relevant amounts as specified above to the account of the Borrower on each of the dates as specified above.]

 

4.            Where the Loan is to be utilized by
installments, all the installments shall be expired on the same day, or in other words, all the installments disbursed separately
shall be expired simultaneously on the expiration date specified on the receipt of borrowing and/the certificate of borrowing for
the first installment.

 

5.            In the event that the Lender accelerates
the Loan under the circumstances set forth herein or in accordance with the instructions of the Entrustor, it shall be deemed that
expiration date of the Tenor is accelerated accordingly.

 

     

     

    

  

Article 5   Interest Rate and Payment
of Interest

 

As agreed between the Entrustor and the
Borrower, interest shall be accrued on the Borrowing at the Interest Rate as follows:

 

1. Interest Rate 

 

(1) The pricing benchmark rate shall
be the one set forth in Item N/A  below: 

 

(i) PBOC RMB Loan Benchmark Rate for
N/A  tenor. 

 

(ii) PBOC RMB Deposit Benchmark Rate
for N/A  tenor. 

 

(iii) LPR for   N/A   tenor. 

 

(iv) SHIBOR for   N/A  tenor. 

 

(v) LIBOR for   N/A  tenor.

 

(vi) HIBOR for   N/A  tenor. 

 

(2)          The Interest Rate shall be determined
at the pricing formula set forth in Item N/A  below:

 

(i) Interest Rate = pricing benchmark
rate +   N/A%. 

 

(ii) Interest Rate = pricing benchmark
rate ×   N/A  . 

 

(3)          The
Interest Rate (meaning a rate per annum, which is applicable to all sections below) shall be determined in accordance with the
provisions set forth in Item   N/A  below:

 

(i)           A fixed rate, which shall be determined
based on the pricing benchmark rate effective on the date of actual disbursement of the Borrowing and the pricing formula, and
shall remain unchanged during the Tenor.

 

(ii)          A
floating rate, which shall be determined based on the pricing benchmark rate and the pricing formula effective on the date of
actual disbursement of the Borrowing and the date of adjustment of interest rate (the “Date of Interest Rate Adjustment”).
The Date of Interest Rate Adjustment shall be determined in accordance with the provisions set forth in Item   N/A  below:

 

A.           The Interest Rate hereunder shall
be adjusted on a(an) N/A [monthly/quarterly/semi-annual/yearly/other period] basis, and on each [monthly/quarterly/semi-annual/
yearly/other period] anniversary of the date of actual disbursement of the Borrowing, which shall be an Interest Rate Adjustment
Date; and for any month that does not have a date correspond to such anniversary, the last day of such month shall be deemed an
Interest Rate Adjustment Date.

 

B.             N/A.

 

In case of any adjustment to the benchmark
rate during the Tenor, no notice will be given to the Borrower.

 

(iii)        any other interest rate: N/A.

 

     

     

    

 

(4)           Where the Borrowing is disbursed by
installments, the interest rate applicable to each installment shall be determined based on the benchmark rate effective on the
date of actual disbursement of such installment (or the applicable Date of Interest Rate Adjustment).

 

(5)           In the event that the benchmark rate
is canceled by the PRC government or is not available any more on the market during the Tenor, the Entrustor hereby authorizes
the Lender to redetermine the Interest Rate in accordance with the applicable PRC policies concerning interest rate, by adhering
to the principal of fairness and good faith and by reference to various factors such as the industrial practice, the status of
the interest rate. In case the Borrower has any disagreement thereon, it shall consult with the Entrustor. Where such disagreement
fails to be resolved through such consultation, the Entrustor shall have the right to accelerate the Loan and the Borrower shall
immediately pay any and all the principal and accrued interest then outstanding.

 

2.            Manners of Payment of Interest

 

(1)           Calculation of Interest. Interest shall
be accrued on the principal of the Borrowing, whether in RMB or foreign currency, starting from the date on which the Borrowing
is transferred into an account of the Borrower by the Lender under this Agreement. The interest to be accrued on the Borrowing
per day = amount outstanding under the Borrowing that day × daily interest rate. The conversion between daily rate and annual
rate shall be conducted in accordance with the applicable PBOC regulations and international practice.

 

(2)           The interest accrued on the Borrowing
shall be paid in the manners set forth in Item N/A below:

 

(i)           it is agreed hereunder that the
20th day of [each calendar month/the last month of each calendar quarter/the last month of each half year/the last month of each
calendar year/other period] shall be an interest settlement date (the “Interest Settlement Date”), and the Borrower
shall pay the Lender the accrued interest for the current Interest Period on the day immediately after the current Interest Settlement
Date; provided, however, any and all the principal and interest outstanding under the Borrowing shall be paid on the expiration
date of the Tenor.

 

(ii)          The date that falls on the day
immediately preceding the N/A[monthly/quarterly/semi-annual/yearly/other period] anniversary of the date of actual disbursement
of the Borrowing (or for any month that does not have a date corresponding to such anniversary, the last day of such month shall
be deemed an anniversary) shall be the Interest Settlement Date. The Borrower shall pay the Lender the accrued interest for the
current Interest Period on the day immediately after the current Interest Settlement Date; provided, however, that the interest
for the last Interest Period shall be paid on the expiration date of the Tenor.

 

(iii)        any alternative manners for the
payment of interest  N/A.

 

3.            Default Interest and Compound Interest

 

(1)           In the event that the Borrower misappropriates
any amount of the Borrowing for any purpose other than those specified herein, the Entrustor hereby authorizes the Lender to charge
penalty payment on such amount so misappropriated at a default interest rate equal to the Interest Rate plus N/A%. In the
event that the Borrower fails to repay any amount of the Loan and fails to reach agreement with the Entrustor on the extension
of the Tenor, and as a result, such amount becomes delinquent, the Entrustor hereby authorizes the Lender to charge default interest
on such delinquent amount at a default interest rate equal to the Interest Rate plus N/A%. In the event that any interest
accrued on the Loan fails to be paid on time, the Entrustor hereby authorizes the Lender to charge Compound Interest at the default
interest rate applicable to the delinquent amount specified above.

 

     

     

    

  

(2)           Where the Interest Rate is a fixed
rate, the default interest rate shall also be a fixed one; and accordingly, where the Interest Rate is a floating rate, the default
interest rate shall also be a floating one. The floating period of the default interest shall be consistent to that of the Interest
Rate.

 

(3)           The Default Interest and the Compound
Interest shall be calculated and collected in the same way as the regular interest on the Loan set forth herein.

 

Article 6   Repayment of the Principal

 

1.            The principal of the Borrowing hereunder
shall be repaid in the manners set forth in Item (A) below:

 

(A)         The principal of the Borrowing shall
be repaid in a lump-sum on the expiration date of the Tenor.

 

(B)         The principal of the Borrowing shall
be repaid by installments in accordance with the following repayment schedule:

 

On ___[insert the applicable date],
RMB____[insert the applicable amount]; 

 

On ___[insert the applicable date],
RMB____[insert the applicable amount]; 

 

On ___[insert the applicable date],
RMB____[insert the applicable amount]; 

 

On ___[insert the applicable date],
RMB____[insert the applicable amount]; 

 

On ___[insert the applicable date],
RMB____[insert the applicable amount]; 

 

On ___[insert the applicable date],
RMB____[insert the applicable amount]; 

 

(C)         Any alternative
manners for the repayment of the principal: N/A.

 

2.            On each repayment date and Interest
Settlement Date specified herein, the Borrower shall punctually and in full, repay the principal of and the accrued interest on
any amount of the Borrowing received hereunder. In the event that the Borrower fails to repay punctually any principal of or interest
on any amount of the Borrowing, the Lender shall have the right to debit from any account of the Borrower maintained with the Lender
or any organization within the system of the Lender the necessary amount in satisfaction of the fees, expenses, principal and interest
due from the Borrower in accordance with the applicable regulations concerning banking accounting and in the order stipulated in
the internal rules of the Lender.

 

3.            Where a repayment date falls on a date
that is not a business day of the Lender, the repayment shall be put off till the immediately following business day of the Lender;
provided, however, that such date that is not a business day shall be included into the number of days during which the Loan is
actually occupied. At the repayment of the final installment of the principal of the Borrowing, any and all the accrued interest
that remains outstanding by then shall be paid simultaneously, regardless of the provisions concerning the Interest Settlement
Date set forth in Article 5 above.

 

     

     

    

  

4.            Subject to the review and consent of
the Entrustor, the Borrower may prepay the whole or any part of the principal of the Entrusted Loan.

 

Article 7   Handling Charges

 

1.            The Lender shall receive handling charges
equal to 1‰ of the amount of the Entrusted Loan. The handling charges shall be paid by the Entrustor in a lump-sum
prior to the disbursement of the Borrowing. The Entrustee shall be entitled to debit the handling charges directly from any account
of the Entrustor.

 

Article 8   Security

 

[N/A 1. The borrowing contemplated hereunder
shall be secured by the security interest to be provided by the guarantors acceptable to the Entrustor under the following security
agreement(s): 

 

(1) the __________________[insert name
of the security agreement] numbered as ________, under which the security is provided in the form of __________, and the guarantor
is _____________;

 

(2) the __________________[insert name
of the security agreement] numbered as ________, under which the security is provided in the form of __________, and the guarantor
is _____________;

 

(3) the __________________[insert name
of the security agreement] numbered as ________, under which the security is provided in the form of __________, and the guarantor
is _____________;

 

(4) the __________________[insert name
of the security agreement] numbered as ________, under which the security is provided in the form of __________, and the guarantor
is _____________;

 

(5) the __________________[insert name
of the security agreement] numbered as ________, under which the security is provided in the form of __________, and the guarantor
is _____________; and

 

(6) the __________________[insert name
of the security agreement] numbered as ________, under which the security is provided in the form of __________, and the guarantor
is _____________.]]

 

2.            Until the execution and effectiveness
of each and all the security agreements hereunder and the completion of all the required procedures for the perfection of the security
created thereunder, the Lender shall have the right to withhold the performance of such obligations as for the disbursement of
the Loan.

 

Article 9   Representations and Undertakings
of the Borrower

 

The Borrower hereby voluntarily makes the
following representations and undertakings and will assume the legal liabilities for the truth thereof:

 

1.            The Borrower is a legal entity established
and validly existing under the laws of the PRC, and has the full capacity for civil conduct. The Borrower undertakes that it will,
at the request of the Entrustor or the Lender, provide the relevant certificates, permits and licenses as well as any other documents
as requested by the Entrustor or the Lender from time to time.

 

     

     

    

  

2.            The Borrower has the full power to perform
all its obligations and responsibilities under this Agreement, and its liabilities for repayment hereunder will not be relieved
or released as a result of any order, any change of its financial position, or any agreement with any party.

 

3.            The Borrower has the full power, authorization
and legal right to execute this Agreement, and has obtained or completed: any and all the internal corporate approvals, authorizations
and any other relevant procedures, and any and all the approvals, registrations, authorizations, consents, permits and any other
relevant procedures from or with any required governmental or other regulatory authorities necessary for its execution and performance
of this Agreement, and all such approvals, registrations, consents, permits, authorizations and any other relevant procedures are
in full legal force and effect.

 

4.            The execution of this Agreement by the
Borrower fully complies with the relevant articles of association, internal decisions, or shareholder or board resolutions of the
Borrower. This Agreement does not conflict with or violate any of the articles of association, internal decisions, shareholder
or board resolutions or policies of the Borrower.

 

5.            The execution and performance of this
Agreement are based on the expression of the real intentions of the Borrower. The execution and the performance of this Agreement
do not violate any provisions of any law, regulation, rule or agreement by which the Borrower is bound. This Agreement is legal,
valid and enforceable. The Borrower shall, promptly and on an unconditional basis, indemnify the Entrustor and the Lender against
the entire losses arising from the invalidity of this Agreement due to any flaw in the right of the Borrower to the execution and
performance of this Agreement.

 

6.            All documents, financial statements
and other materials provided by the Borrower to the Entrustor or the Lender hereunder are true, complete, accurate and effective,
and the Borrower will maintain all the financial indices required by the Entrustor of the Lender.

 

7.            The Borrower agrees that the borrowing
contemplated hereunder shall be bound by the rules and customary practice of the Lender, which shall be subject to the interpretation
of the Lender.

 

8.            In the event that the Borrower fails
to perform any of the Obligations hereunder, it hereby authorizes the Lender to debit directly the corresponding amount from any
account of the Borrower maintained with the Lender or any organization within the system of the Lender.

 

9.            No matter at what stage of the transaction
after the execution of this Agreement, where the Borrower submits to the Lender for review and approval of any document relating
to any specific transaction, the Borrower shall ensure the truth of all such documents. The Lender will make a decision on the
apparent truth of any transaction documents, not participate in or know the substance of any specific transaction conducted by
the Borrower, and not assume any liabilities therefor.

 

10.          The Borrower hereby acknowledges that
other than those disclosed to the Entrustor or the Lender, the Borrower does not know any of the following circumstances, whether
pending or threatened, which may result in the Entrustor or the Lender refusing to disburse the Borrowing hereunder:

 

(1)             any obligations
or contingent liabilities to which the Borrower is subject, including without limitation, any mortgage, pledge, lien or any other
encumbrance created on any assets or income of the Borrower that has not been disclosed to the Lender;

 

     

     

    

  

(2)             any material non-compliance
of discipline, violation of law, or claim involving the Borrower or any of its senior officers;

 

(3)             any default by
the Borrower under any agreement between the Borrower and any of its other creditors relating to obligations or creditor rights;

 

(4)             there has not
occurred and does not exist any litigation, arbitration or administrative proceedings pending, or to the knowledge of the Borrower
threatened, against the Borrower or any of its assets, and the Borrower is not subject to any liquidation or winding-up or any
other similar proceedings by or against the Borrower; or

 

(5)             Any other circumstances
which may have an adverse effect on the Borrower’s financial position or ability to repay debts.

 

11.          The Borrower hereby undertakes that
it will apply the Borrowing towards the purposes specified herein, not misappropriate nor will it allow any amount of the Borrowing
to be applied towards any purpose in violation of the intent of this Agreement. The Borrower shall subject itself to and cooperate
with the Entrustor or the Lender in the supervision, inspection and check by the Entrustor or the Lender on the utilization of
the Borrowing, the operational and financial activities, inventory, assets and liabilities, bank deposits and cash on hand of the
Borrower, or any other requirement deemed necessary or advisable by the Entrustor or the Lender.

 

12.          The Borrower shall provide adequate
and valid security or any other security deemed appropriate or acceptable by the Entrustor.

 

13.          The Borrower may not allow its registered
capital to be reduced in any way. Without prior written consent of the Entrustor, the Borrower may not transfer its obligations
hereunder to any third party, whether in whole or in part. Prior to the full satisfaction of all its obligations hereunder, the
Borrower may not satisfy any of its obligations owed to any of its creditors prior to the same falling due.

 

14.          In the event that the Lender is involved
in any dispute between the Borrower and any third party as a result of any litigation or arbitration or any other dispute between
the Lender and the Borrower or any third party related to the Borrower due to the Lender’s performance of its obligations
hereunder, the Borrower shall indemnify the Lender against any and all the litigation or arbitration costs and expenses, attorney
fees, and any other costs and expenses paid by the Lender in connection therewith.

 

15.          The Borrower shall conduct all the
settlement business arising under this Agreement through a settlement account opened by it with the Lender.

 

16.          In the event that the security interest
granted hereunder is in the form of mortgage on building(s), the Borrower shall have the obligation to promptly notify both the
Entrustor and the Lender upon being aware of any information that the mortgaged building(s) may be demolished. Where the mortgaged
building(s) is/are demolished, if compensation is paid in the form of property in consideration of such demolition, the Entrustor
or the Lender shall have the right to request the Borrower to prepay the indebtedness owed hereunder or create a new mortgage and
enter into a new mortgage agreement. During the period after the original mortgaged building(s) is/are extinguished and before
the registration of new mortgage is completed, security interest granted by a person who is qualified to do so shall be provided.
If compensation is paid in the form of cash in consideration of such demolition, the Borrower shall be obligated to cause the mortgagor
to deposit the cash compensation into a special deposit account or certificate of deposit, which account or certificate shall be
used to secure the Master Obligations.

 

     

     

    

  

Article 10   Other Rights and Obligations

 

1.            The Entrustor shall transfer the entrusted
funds into its account for entrusted loans on a timely basis. The Lender will not commence disbursement procedures in accordance
with the entrustment loan agreement and the loan agreement etc. until the entrusted funds of the Entrustor have been deposited
into its account for entrusted loans.

 

2.            The funds for Entrusted Loan shall be
obtained from legitimate sources and may not be credit-extending fund obtained from the Lender; otherwise the Entrustor shall bear
legal liability correspondingly.

 

3.            The Entrustor and the Borrower shall
provide true materials, including, without limitation, documents, statements and certificates, required by the Lender.

 

4.            The Borrower shall repay the principal
of the Entrusted Loan and interest accrued thereon in the same currency as that of the Borrowing, unless otherwise agreed by the
Entrustor and the Borrower.

 

5.            The Entrustor shall be responsible for
any pre-loan-extending investigation on the Borrower, the surety or the collaterals and make determination upon the Borrower and
the surety or the collaterals after necessary analysis and evaluation. The scope of investigation shall include, without limitation,
the purpose of the loan, basic information, credit standing, financial position of the Borrower and the surety and any other things
required to be investigated.

 

6.            The Entrustor shall review the conditions
for disbursement of the Entrusted Loan. Once the Loan is disbursed by the Lender, it shall be deemed that the Borrowing shall have
been satisfied all the conditions for disbursement required by the Entrustor.

 

7.            The Entrustor shall be responsible for
the collection of the Entrusted Loan, inspection of the use of the Entrusted Loan, understanding the operating activities and financial
position of the Borrower as well as any disputes and security in relation to any indebtedness of the Borrower.

 

8.            Each of the Entrustor and the Lender
shall have the right to monitor the use of the Borrowing by the Borrower.

 

9.            The Entrustor shall be entitled to take
measures, such as litigation or arbitration, in accordance with applicable law or this Agreement, to recover the principal and
interest of the Loan, and the Lender shall provide any assistance required for therefor.

 

10.          The Borrower hereby irrevocably authorizes
the Lender to debit from the bank account of the Borrower the necessary amount in repayment of the principal of the Entrusted Loan
and the interest accrued thereon.

 

11.          If the Borrower fails to repay any
principal of the Loan or any interest accrued thereon as agreed under this Agreement, the Entrustor shall assume any Loan Risks
in relation to the Entrusted Loan, and shall not require the Lender to assume any liability for reasons that the Lender fails to
perform appropriate supervision, fails to promptly notify the Entrustor of any delay in repayment or any other reasons. Any dispute
between the Entrustor and the Borrower shall be irrelevant to the Lender.

 

     

     

    

  

12.          Unless otherwise agreed by the parties
hereto, neither the Entrustor nor the Borrower may require the Lender to assume any other obligations or risks.

 

13.          Where the Entrustor authorizes the
Lender to initiate a lawsuit or arbitration on its behalf, it shall advance to the Lender the Expenses for the Enforcement of Obligations,
including, without limitation, fees in relation to litigation, arbitration, attorney fees, travel and accommodation, application
for enforcement, asset preservation and other expenses that necessary for the enforcement of obligations

 

Article 11   Acceleration of Loan

 

1. During the Tenor of the Borrowing, if
the Borrower or the surety (i.e., the guarantor, the mortgagor or the pledgor under this Agreement) commits any of the following,
the Entrustor shall have the right to cease any disbursement of any amount under this Agreement that has not been disbursed, and
accelerate all or part of the principal and interest of the Loan. Where the Borrowing is repaid in installments and the Entrustor
accelerates any one of the installments in accordance with this Agreement, all the other installments that have not become due
may be deemed due and payable:

 

(1) It provides any
false materials or conceals any material operating or financial matters, or any certificate or document submitted to the Entrustor
or the Lender or any representations or warranties under Article 9 of this Agreement is proved to be untrue, inaccurate, incomplete
or willful misleading;

 

(2) It changes the
intended purpose of the Borrowing without consent of the Entrustor, or misappropriates any Borrowing or use any Borrowing in any
illegal or non-compliance transactions;

 

(3) It refuses to accept
any supervision or inspection of the Entrustor or the Lender on its use of the loan proceeds and the relevant operating or financial
activities;

 

(4) It carries out
any significant merger, acquisition or restructuring, which, in the view of the Entrustor, may affect the repayment of the Borrowing;

 

(5) It intentionally
evades from or invalidating any debt through related party transactions;

 

(6) Its credit standing
deteriorates and it ability to repay any indebtedness, including any contingent liability, apparently weakens;

 

(7) The Borrower fails
to repay any principals and interest of any Borrowing hereunder when they become due and payable;

 

(8) The Borrower ceases
the repayment of its indebtedness or is unable to or indicate that it is unable to repay any indebtedness due and payable;

 

(9) The Borrower stops production, ceases
its business, is declared bankrupt, dissolved, its business license is revoked, is cancelled and is involved in any material economic
dispute or its financial position deteriorates; or

 

     

     

    

  

(10) The Borrower fails
to perform any of its obligations under Article 10 or any other obligations under this Agreement, or the surety fails to perform
its obligations under the security agreement;

 

(11) The value of any
assets subject to mortgage or pledge decreases or potentially decreases, or the right of pledge requires to be enforced prior to
the date the Borrowing becomes due and payable; and

 

(12) any other events that adversely affect
or damage or potentially adversely affect or damage any rights or interests of the Entrustor or the Lender.

 

2. In the event of acceleration of the
Loan, the Entrustor shall be entitled to take appropriate measures under Article 12.1 and Article 12.5.

 

Article 12   Default Liability

 

1. If the Borrower is in breach of any
provision under this Agreement or the Lender is unable to perform its obligation due to any reason attributable to the Borrower,
the Borrower shall bear the following liability for its breach of Agreement to the Entrustor:

 

(1) if the Entrusted
Loan has not been disbursed, the Entrustor shall have the right to terminate this Agreement and cease disbursement of the Entrusted
Loan;

 

(2) if the Entrusted
Loan has not become due, the Entrustor shall have the right to terminate this Agreement and accelerate the principal and interest
of the Entrusted Loan;

 

(3) if the Entrusted
Loan has become overdue, the Entrustor shall have be entitled to charge an overdue penalty interest;

 

(4) if the Borrower
misappropriates the Entrusted Loan, the Entrustor shall be entitled to charge a penalty interest for the misappropriation;

 

(5) the Entrustor shall
be entitled to take actions to enforce the obligations of the Borrower hereunder, and any fees and expenses in connection with
such enforcement shall be borne by the Borrower; and

 

(6) the Entrustor shall
have the right to require the Borrower to indemnify it against any other economic loss.

 

2. If the Entrustor breaches this Agreement
or the Lender is unable to perform its obligation due to any reason attributable to the Entrustor, the Entrustor shall bear the
following liability to the Borrower:

 

(1) if the Entrusted
Loan fails to be disbursed on time, the Entrustor shall disburse the Entrusted Loan as soon as possible; and

 

(2) the Entrustor shall
indemnify the Borrower against any economic losses.

 

3. If the Lender breaches this Agreement,
the Lender shall indemnify the Entrustor or the Borrower, as the case may be, against its economic losses in accordance with law.

 

4. If the Entrustor/the Borrower fails
to timely pay any handling charge, the Lender shall be entitled to charge liquidated damages on a daily basis in an amount equal
to N/A% of any unpaid handling charge.

 

     

     

    

  

The Entrustee shall be entitled to debit
the necessary amount from the account of the Entrustor in satisfaction of any liquidated damages required to be paid by the Entrustor.
The Entrustor shall be responsible for procuring the Borrower to pay any liquidated damages owed by the Borrower. If the Borrower
fails to duly pay the liquidated damages, the Entrustor agrees to make such payment on behalf of the Borrower, and the Entrustee
shall be entitled to debit the corresponding amount from the account of the Entrustor.

 

5. In the event that the surety under this
Agreement (i.e., the guarantor, mortgagor or pledgor) incurs any of the following events, the Entrustor shall have the right to
take measures under Article 12.1:

 

(1) The guarantor fails
to perform its obligations under the applicable guarantee agreement, or its credit standing deteriorates, or it incurs any other
events that weaken its ability of guarantee;

 

(2) The mortgagor fails
to perform its obligations under the applicable mortgage agreement, or intentionally damages or destroys the mortgaged assets,
or the value of the mortgaged assets apparently decreases or may decrease, or it incurs any other events that prejudice the mortgage
rights of the Lender; or

 

(3) The pledgor fails
to perform its obligations under the applicable pledge agreement, or the value of the pledged assets apparently decreases or may
decrease, or the right of pledge has to be enforced prior to the satisfaction of the Borrowing, or it incurs any other events that
prejudice the right of pledge of the Lender.

 

Article 13   Continuity of Obligations

 

All obligations of the Borrower under this
Agreement shall be continuous and shall have full and equal binding effect on its successor, agent, receiver, assigns and surviving
entity after any combination, re-organization or change of name.

 

Article 14   Right to Set Off

 

In case the Borrower or the surety fails
to perform its liabilities or breaches its obligations under this Agreement which results in acceleration of its liabilities hereunder,
the Lender shall have the right to debit the necessary amount from any account of the Borrower opened within the system of the
Lender for repayment. If the currency under such account of the Borrower is different from the currency of the Master Obligations,
it shall be converted at the buying rate published by the Lender on the date of debiting.

 

Article 15   Extension of the Tenor 

 

1. The Borrower may request for extension
of the Tenor upon the expiration of the Entrusted Loan.

 

2. The Borrower shall submit written application
for extension to the Lender 60 Workdays prior to the expiration of the Entrusted Loan, provided that the application shall
be approved by the Entrustor and the surety in writing.

 

3. If the Entrustor approves the extension,
the Lender shall enter into a supplemental agreement for the extension of the Entrusted Loan with the Borrower, the Entrustor and
the surety. If the Entrustor refuses to approve the extension, the Borrower shall perform its obligations hereunder in accordance
with this Agreement.

 

     

     

    

  

Article 16   Governing Law, Jurisdiction
and Dispute Resolution

 

1. This Agreement shall be governed by
and construed in accordance with the PRC law, and any dispute in connection with this Agreement shall be resolved in accordance
with the PRC law.

 

2. In case of any controversy or dispute
in connection with this Agreement arising from the performance of this Agreement, such controversy or dispute may be resolved through
negotiation. If such negotiation fails, such controversy or dispute shall be resolved in accordance with the method set forth in
Item (2) below:

 

(1) to institute legal
proceedings before the court at the place where the Lender resides;

 

(2) to refer the controversy
or dispute to Shenzhen Arbitration Commission for arbitration under its then effective arbitration rules (place of which
shall be in Shenzhen). An arbitral award by Shenzhen Arbitration Commission shall be final and binding on all the parties
involved in arbitration; or

 

(3) any other ways
of dispute resolution: N/A.

 

3. During the period when a controversy
or dispute is pending hereunder, the terms that are not in dispute shall continue to be performed, and the Borrower shall not refuse
to perform any obligations under this Agreement on the grounds that any controversy or dispute is pending for resolution.

 

Article 17   Correspondence, Communications
and Notification

 

1. Any correspondence, communications and
notification under this Agreement shall be made in writing and sent to the other party at the address or telex number listed on
the cover page of this Agreement, or by other means.

 

2. If any of the contact information of
any party changes, such party shall promptly notify the other parties without any delay. If such party fails to promptly notify
the other parties and the other parties send any document, communications or notifications in accordance with the original contact
information, any consequences resulting therefrom shall be borne by the party who fails to make such prompt notification.

 

3. If any document, communication or notification
is sent from the above address, it shall be deemed served:

 

(1) if sent by mail
(including by courier, regular mail or registered mail), five Workdays after it is deposited with a post office;

 

(2) if sent by fax
or any other electronic means, the day on which it is transmitted; or

 

(3) if delivered in person, the day on
which the intended recipient signs the acknowledgement of receipt.

 

Where the Entrustee gives a notice by publishing
it on its own website, through its online banking or telephone banking or at its business site, such notice shall be deemed served
on the day on which such notice is so published. In no event, may the Entrustee be held liable for any failure, omission or delay
in the transmission by any postal service, fax, telephone or any other communication system.

 

     

     

    

  

4. The parties agree that the corporate
seal, office seal, finance specific seal, contract specific seal, sending and receiving acknowledgement seal and the loan specific
seal of the Lender shall be valid seals for the correspondence, communication and notification among the parties. All the staff
members of the Entrustor and the Borrower shall be the authorized persons to sign on and receive the correspondence, communication
and notification sent to and from the Entrustor and the Borrower.

 

Article 18   Effectiveness and Miscellaneous

 

1.            This Agreement shall become effective
upon execution by or affixation with the seal of each party hereto.

 

2.            During the term of this Agreement,
any grace or extension granted by the Entrustor or the Lender to the Borrower or the surety or any delay of the Entrustor or the
Lender in the exercise of its rights or interests under this Agreement shall neither prejudice, affect or limit any and all rights
or interests of the Entrustor or the Lender under applicable law and this Agreement, nor be deemed a waiver by the Entrustor or
the Lender of any rights or interests under this Agreement, nor affect any obligations of the Borrower under this Agreement. 

 

3.            In response to its business or
management needs, the Lender shall have the right to authorize or delegate any other branch of the Bank to exercise its rights
and perform its obligations hereunder, including but not limited to the execution of any relevant agreements, or to transfer the
management of a Loan hereunder to any other branch of the Bank, in each case, without consent from the Borrower/Entrustor. The
Borrower/Entrustor hereby acknowledges the foregoing. 

 

4.            If, at any time, any terms of this Agreement
becomes illegal, invalid or unenforceable in any respect, the legality, validity or enforceability of any other terms of this Agreement
shall not be affected or prejudiced.

 

5.            Headings are inserted for convenience
only and shall not be used for the construction of any provision of this Agreement or any other purpose.

 

6.            The exhibits hereto shall be an integral
part of this Agreement and shall have the same legal effect as this Agreement.

 

7.            This Agreement shall be executed in
FOUR counterparts, with the Entrustor to hold ONE counterpart, the Lender to hold TWO counterparts and the
Borrower to hold ONE counterpart, and each counterpart shall have the same legal effect.

 

Article 19   Notarization and Voluntary
Submission to Enforcement

 

1. If the party hereto requires this Agreement
to be notarized, this Agreement shall be notarized by a notary public authorized by the relevant authority.

 

2. This Agreement after being notarized
shall be enforceable. Where the Borrower fails to perform its liabilities hereunder or in the case of any circumstances agreed
hereunder that entitle the Entrustor or the Lender to enforce its rights, the Entrustor or the Lender shall have the right to apply
for enforcement to the people’s court with jurisdiction.

 

     

     

    

  

Article 20   Supplementary Provisions

 

The party hereto acknowledges that, the
domicile and contact details as stipulated in this Agreement shall also be the delivering address and manner for any relevant service
of process, including but not limited to, various legal document during the course of arbitration and enforcement, such as arbitration
application and notice, notice of an arbitration proceeding or case acceptance notice, defence response, anti-arbitration request,
evidence, notice of hearing, arbitration award, mediation order, enforcement notice, reminder etc..

 

	Contact Person	:	 	 	Address 	:	 
	Postal Code	:	 	 	Telephone Number 	:	26430133
	Servicing Agent (if so, please state )	:	 	 	Address	:	 
	Postal Code	:	 	 	Telephone Number 	:	 

 

Both parties acknowledge and agree that
any service of process shall be delivered by hand and the manner as follows:

 

	 	mail	 	fax ( fax number : _____________)	 	email (email address:___________)  
	 	SMS (number: _________________)	 	 

 

If the service of process mentioned above
is sent to the above address, it shall be deemed served. Any service of process is served by the Servicing Agent shall be deemed
served by the party who appoints the Servicing Agent. If any of the contact information and the method of delivery change, such
party shall promptly notify the other parties in writing. If such party fails to do so, such contact information and the method
of delivery shall be deemed as unchanged and any consequences resulting therefrom shall be borne by the party who fails to make
such prompt notification.

 

     

     

    

  

	Entrustor	
        (affixed with the corporate seal)

         

        Signed by the legal representative or agent
        of

        Shenzhen Nepstar Pharmaceutical Co., Ltd.
        (深圳市海王星辰医药有限公司)
	
         

          

         

        Dated October 30, 2015

	Lender	
        (affixed with the corporate seal)

         

        Signed by the legal representative or agent
        of

        Shenzhen Tian’an Sub-branch of Industrial
        Bank Co., Ltd.

        (兴业银行股份有限公司深圳天安支行)
	
         

         

         

         

        Dated October 30, 2015

	Borrower	
        (affixed with the corporate seal)

         

        Signed by the legal representative or agent
        of

        Shenzhen Nepstar Management Consulting
        Co., Ltd. (深圳市海王星辰管理咨询有限公司)
	
         

         

         

         

        Dated October 30, 2015Exhibit 10.1

 

MOUNT
TAM BIOTECHNOLOGIES, Inc.

 

Employment
AGREEMENT

 

 

 

This Employment Agreement
(“Agreement”) by and between Mount Tam Biotechnologies, Inc., a Nevada corporation (“Employer”
or the “Company”), and James Stapleton, an individual (“Employee”), is effective as of April 21,
2016 (“Effective Date”). Your first day of employment will be May 2, 2016 (“Start Date”). In consideration
of the mutual promises made herein, the Company and Employee agree as follows:

 

		1.	Employment. The Company hereby employs Employee, and Employee hereby accepts employment
with the Company upon all of the terms and conditions described in this Agreement.

 

		2.	Responsibilities. Subject to the terms of this Agreement, Employee is hereby employed in
the position of Chief Financial Officer and shall perform the functions and responsibilities of that position. Employee
will report directly to the Chief Executive Officer. The Company may assign additional or different duties to Employee and Employee’s
position, title, job description, duties and responsibilities may be modified from time to time at the sole discretion of the Company.
Employee shall initially be employed on a part-time basis (.50 FTE) in which Employee is required to devote at least 50% of the
Employee’s professional time, attention and energies to the performance of Employee’s work responsibilities under this
Agreement. Both parties agree that at the Company’s sole discretion the Employee’s required commitment may be changed.
While employed by the Company, Employee will not, without the prior written consent of the Company, provide services to or assist
in any manner any business or third party.

 

		3.	Compensation. As consideration for the services and covenants described in this Agreement,
the Company agrees to compensate Employee in the following manner:

 

		3.1.	Base Salary. If employed full time, Employee shall receive an annualized base salary of
$175,000 (the “Base Salary”), subject to standard federal and state payroll withholding requirements and which Base
Salary may be adjusted by the Company within its discretion. While the Employee is employed on a less than full time basis, salary
shall be adjusted pro rata to reflect the percentage of time that employee devotes to Company business, it being agreed
that until adjusted, Employee’s initial annual Base Salary shall be $87,500 and that any subsequent change in commitment
will result in a proportional change in annual Base Salary.

 

		3.2.	Stock Options. Subject to the approval by the Board of Directors and the creation of a Plan
(as hereinafter defined), the Company will recommend that Employee receive a grant under the Company’s to be formed equity
incentive plan (the “Plan”) of a stock option to purchase up to 750,000 shares of the Company’s Common Stock
upon the completion of six (6) months of uninterrupted continuous employment by the Company on at least a part-time (.50 FTE) basis. 
The aforesaid option shall have an exercise price equal to the fair market value of a share of the Company’s Common Stock
on the grant date.  The terms of the aforesaid option grant, and the shares subject to such option, will vest, be subject
to and governed by the Plan and a Stock Option Award Agreement to be signed by Employee and the Company.

 

		3.3.	Benefits. Employee will be entitled to three (3) weeks of Paid Time Off (PTO) each year
in addition to PTO for all Company Holidays. In addition to requirements under applicable law, if the Company, in its sole discretion,
adopts a general employee benefit plan or policy concerning benefits such as leaves of absence, health insurance, etc., such benefits,
if any, will be available to Employee in accordance with any eligibility requirements, policies, or procedures adopted by the Company
from time to time during the existence of this Agreement. The rights, if any, of Employee and Employee’s dependents under
any such benefit plans or policies shall be governed solely by the terms of such plans or policies. The Company reserves to itself,
or its designated administrators, exclusive authority and discretion to determine all issues of eligibility, interpretation and
administration of each such benefit plan or policy. The Company’s employment benefits, and policies related thereto, are
subject to termination, modification or limitation at the Company’s sole discretion at any time.

 

     

     

    

 

		3.4.	Bonus. Employee will be entitled to participate in an executive bonus plan in the event
such plan is created and approved by Company’s Board of Directors. In addition, Employee shall receive a one-time contingent
signing bonus of $40,000, payable if and when the Company completes a fundraising transaction with gross proceeds to the Company
of at least two million, two hundred fifty thousand US dollars ($2,250,000), and provided that Employee has neither provided notice
of his resignation nor been terminated prior to the Company’s receipt of the fundraising proceeds.

 

		3.5.	Total Compensation. Employee agrees that the compensation stated above constitutes the full
and exclusive consideration and compensation for all services rendered under the Agreement and for all promises and obligations
under this Agreement.

 

		3.6.	Business Expenses. The Company shall pay or reimburse Employee’s reasonable business
expenses, including expenses incurred for travel on Company business, in accordance with the policies and procedures of the Company,
as may be adopted or amended from time to time at the Company’s sole discretion. If Employee incurs business expenses under
this Agreement, Employee shall submit monthly to the Company a request for reimbursement together with supporting documentation
satisfactory to the Company.

 

		3.7.	No Requirement to Relocate. The Company recognizes that Employee can perform all necessary
functions working remotely and agrees that Employee may do so.

 

		3.8.	Term. The term of employment shall begin on the Start Date and end on the third anniversary
of the Start Date (the “Initial Term”), unless terminated earlier pursuant to Section 12 herein. Following the Initial
Term, the term of employment may be renewed for additional one year terms upon the mutual written agreement by the parties, such
renewal term[s] being subject to the termination provisions in Section 12 herein. The Initial Term with any renewal terms shall
be referred to collectively as the “Term of Employment”.

 

		4.	Company Policies. Employee agrees to abide by the Company’s written policies, practices
and procedures, as they may from time to time be adopted or modified by the Company at its sole discretion. The Company’s
written policies, practices and procedures, including any Employee Handbook and/or Code of Conduct, shall be binding on Employee
unless superseded by or in conflict with this Agreement. Copies of written policies and procedures shall be available to Employee
in the offices of the Company, and Employee shall be responsible at all times to review these policies and procedures.

 

		5.	Warranties. Employee hereby represents and warrants that he or she has taken no confidential,
proprietary or trade secret information from Employee’s prior employer or employers, and will not knowingly disclose such
information to the Company, or improperly use any such information on behalf of the Company. Employee acknowledges that the Company
has specifically demanded that, if Employee has any such confidential, proprietary or trade secret knowledge or information, Employee
shall not use such information while employed by the Company for the benefit of the Company. Employee further warrants that by
entering into this Agreement with the Company he or she is not violating any of the terms, agreements, or covenants of any previous
employment or association. Employee further acknowledges that the Company has advised Employee to consult with his or her personal
attorney concerning this proposed employment, matters relating to prior employment and any agreements or other matters that might
affect employment by the Company. Employee acknowledges and agrees that neither the Company nor anyone acting on its behalf induced
or solicited Employee to breach any contract or other enforceable obligation in connection with any proposed employment with the
Company. If at any time Employee’s duties with the Company begin to conflict with any prior agreement, Employee shall promptly
notify the Company and shall cease and desist from any such duties and the Company shall be permitted to terminate Employee with
“Cause” pursuant to Section 12 herein.

 

     

     

    

 

		6.	Invention Disclosure. Employee agrees to promptly disclose in writing to the Company any
and all inventions which Employee develops during the Term of Employment, including all inventions, formulas, ideas, processes,
techniques, know-how and data, whether or not patentable, that Employee makes or conceives or reduces to practice or develops,
either alone or jointly with others, during the Term of Employment by the Company. Employee will also disclose to the Company all
inventions made, conceived, reduced to practice, or developed by Employee within six months of the termination of employment by
the Company that result from prior work with the Company. Such disclosures shall be received by the Company in confidence and do
not extend the assignment of inventions disclosed beyond that required by law.

 

		7.	Assignment of Inventions. Employee hereby assigns and agrees that any and all inventions,
discoveries or improvements that Employee conceives or makes or may conceive or make during the Term of Employment relating to
or in any way pertaining to or connected with Company research and development, products, or methods of manufacture of the Company
shall be the sole and exclusive property of the Company to the maximum extent permitted by the State of California. The Company
shall be the sole owner of all worldwide trade secrets, patents, copyrights, and other intellectual property rights in connection
with such inventions. Employee hereby assigns to the Company any rights he or she may have or acquire in such inventions. Employee
further agrees to assign, and hereby does assign to the Company the entire right, title and interest in and to all such inventions,
discoveries or improvements as well as any modifications or improvements thereto that may be made and all worldwide trade secrets,
patents, copyrights, and other intellectual property rights in connection therewith. Employee understands that any inventions,
discoveries or ideas that Employee has created or possessed prior to Employee’s employment by the Company will not be considered
to be the property of the Company. The Company hereby notifies Employee of the applicability of Cal. Lab. Code § 2872, which
provides that assignment of intellectual property rights in inventions that an employee develops in his or her own time without
use of Company materials or proprietary information is invalid unless said inventions (a) relate, at the time of conception or
reduction to practice, to the Company’s business or actual or demonstrably anticipated research of development, or (b) result
from work performed for the Company. Notwithstanding anything to the contrary herein nothing in this Agreement shall be interpreted
contrary to the preceding sentence.

 

		8.	Confidential, Proprietary, and Trade Secret Information. During the course of employment,
Employee will come into possession of or acquire knowledge of confidential, proprietary and trade secret information of the Company.
Employee hereby covenants and agrees that Employee will not, either during the term of employment or at any time thereafter, disclose
any such confidential, proprietary or trade secret information to any person, firm, corporation, association, partnership or other
entity (other than those in the Company’s organization qualified and authorized to receive such information) for any purpose
or reason whatsoever unless compelled to do so by law. Such confidential and proprietary information shall be deemed to include,
but not be limited to, (i) Company products, designs, research projects, improvements and methods of operation, (ii) business
plans, marketing plans and related information, (iii) the names, lists, buying habits and practices of the Company’s
customers, clients and vendors, and the relationships between them and the Company, (iv) the Company’s financial condition,
profit performance and financial requirements, and (v) all other confidential information of, about or concerning the Company,
the manner of operation of the Company and other confidential data of any kind, nature or description relating to the Company.
Employee specifically agrees not to make use of any such confidential or proprietary information for Employee’s own purpose,
or for the benefit of any person, firm, corporation or other entity except the Company. Employee will abide by the Company’s
policies and procedures, as established from time to time for the protection of its trade secrets and confidential information.

 

		9.	Return of Property. All confidential, proprietary and trade secret information, and all
other documents, records, apparatus, equipment and other physical property which is furnished to or obtained by Employee in the
course of employment with the Company shall be and remain the sole property of the Company. Employee agrees that, upon termination
of his or her employment, Employee shall return all such property and agrees not to make or retain copies, reproductions or summaries
of any such property without the express written consent of the Company.

 

     

     

    

 

		10.	Non-Solicitation. For a period of two years immediately following the termination of Employee’s
employment, Employee agrees not to, either directly or indirectly, attempt to recruit, solicit or take away any of the employees
of the Company who worked for the Company at any time during the Term of Employment; make known to any person, firm or corporation
the names or addresses of, or any information pertaining to, any current or former employees of the Company, unless required under
applicable law.

 

		11.	Equitable Relief. Employee agrees that in the event of any breach of paragraphs 5, 6, 7,
8, 9 or 10 of this Agreement, the Company will not have an adequate remedy at law. Thus, in the event of such a breach, the Company
will be entitled to such equitable and injunctive relief as may be available to prevent and restrain the breach of the provisions
of said paragraphs. Such availability to obtain injunctive relief will not prevent the Company from pursuing any other equitable
or legal relief, including the recovery of damages from such breach or threatened breach.

 

		12.	Termination of Employment.

 

(a) The
Company shall have the right, upon delivery of written notice to the Employee, to terminate the Employee’s employment hereunder
at any time prior to the expiration of the Term of Employment (i) pursuant to a Termination for Cause or (ii) pursuant to a Without
Cause Termination.  The Employee shall have the right, upon delivery of written notice to the Company, to terminate Employee’s
employment hereunder at any time prior to the expiration of the Term of Employment pursuant to a Good Reason termination or if
without Good Reason (“Voluntary Termination”) by providing the Company with not less than 30 days prior written notice.

 

(b)
In the event that the Company terminates the Employee’s employment pursuant to a Without Cause Termination, or if
Employee terminates his employment for Good Reason, then the Company shall be obligated to pay Employee: (i) Employee’s earned
Base Salary through the termination date, any unpaid earned bonus award pursuant to the terms of the executive bonus plan and the
sign on bonus only if the contingency was achieved prior to the notice of termination or effective date of termination, and reimbursable
expenses and benefits owing to Employee through the day on which Employee’s employment terminated (collectively the “Accrued
Obligations”), and (ii) subject to the execution of a general comprehensive release prepared by the Company (and which must
become effective and irrevocable in accordance with its terms within 60 days following Employee’s termination date), a severance
payment to the Employee equal to the continuation of Employee’s then current Base Salary (at his adjusted annual Base Salary
based on the date of termination) for the lesser of the number of months remaining in the Term of Employment or 9 months. In addition,
all stock option grants and/or restricted stock grants that have not yet vested will automatically vest, regardless of the satisfaction
of any conditions contained therein.  Except as otherwise contemplated by this Agreement, Employee will not be entitled
to any other compensation upon termination of this Agreement.

 

Employee
shall not be entitled to any of the severance payments or benefits provided for in this Section that constitute deferred compensation
subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) until Employee’s
separation of employment constitutes a “separation from service” within the meaning of Treasury Regulation Section
1.409A-1(h), or Employee’s death. As to any separation benefits that constitute deferred compensation subject to Section
409A of the Code that would otherwise be paid hereunder within 60-days following the termination date shall be held back and paid
on the first regularly scheduled payroll date following the 60th day after the termination date.

 

(c) In
the event that the Company terminates the Employee’s employment hereunder due to a Termination for Cause, the Term of Employment
expires or the Employee Voluntarily terminates employment with the Company for any reason (other than a termination of employment
by the Employee for Good Reason), or Employee’s employment terminates by reason of death or disability, the Employee shall
not be entitled to any severance, except that the Company shall be obligated to pay Employee his Accrued Obligations. Except as
otherwise contemplated by this Agreement, Employee will not be entitled to any other compensation upon termination of this Agreement
pursuant to this subparagraph.

 

     

     

    

 

(d) For
purposes of this Agreement, the following terms have the following meanings:

 

(i) The
term “Termination for Cause” means, to the maximum extent permitted by applicable law, a termination of the Employee’s
employment by the Company attributed to (a) the repeated or willful failure of Employee to substantially perform his duties hereunder
(other than any such failure due to physical or mental illness) that has not been cured within 14 days after a written demand for
substantial performance is delivered to Employee by the Chairman of the Board of Directors (“Chairman”), which demand
identifies the manner in which the Chairman believes that Employee has not substantially performed his duties hereunder; (b) conviction
of, or entering a plea of guilty or nolo contendere to a crime that constitutes a felony; (c) Employee’s intentional
misconduct, gross negligence or material misrepresentation in the performance of his duties to the Company; or (d) the material
breach by Employee of any written covenant or agreement with the Company under this Agreement (including, but not limited to, paragraph
5 herein) or otherwise, including, but not limited to, an agreement not to disclose any information pertaining to the Company.

 

(ii) The
term “Without Cause Termination” means a termination of the Employee’s employment by the Company other than due
to (a) a Termination for Cause, (b) Disability, (c) the Employee’s death, or (d) the expiration of this Agreement (or the
Term of Employment).

 

(iii) the
term “Change in Control” shall mean:

 

(A) The
acquisition by one person, or more than one person acting as a group, of ownership of stock of the Company that, together with
stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock
of the Company;

 

(B) The
acquisition by one person, or more than one person acting as a group, of ownership of stock of the Company, that together with
stock of the Company acquired during the twelve-month period ending on the date of the most recent acquisition by such person or
group, constitutes 30% or more of the total voting power of the stock of the Company;

 

(C) A majority of the members of the Company’s board of directors is replaced during any twelve-month period by directors whose
appointment or election is not endorsed by a majority of the members of the Company’s board of directors before the date
of the appointment or election;

 

(D) One person,
or more than one person acting as a group, acquires (or has acquired during the twelve-month period ending on the date of the most
recent acquisition by such person or group) assets from the Company that have a total gross fair market value (determined without
regard to any liabilities associated with such assets) equal to or more than 40% of the total gross fair market value of all of
the assets of the Company immediately before such acquisition or acquisitions.

 

Persons will not be
considered to be acting as a group solely because they purchase or own stock of the same corporation at the same time, or as a
result of the same public offering.  However, persons will be considered to be acting as a group if they are owners of
a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with
the Company.

 

This definition of
Change in Control shall be interpreted in accordance with, and in a manner that will bring the definition into compliance with,
the regulations under Section 409A of the Internal Revenue Code.

 

(iv) The
term “Good Reason termination” means Employee’s termination of his employment with the Company following (i)
a reduction in Employee’s Base Salary of more than fifteen percent (15%) that is not related to a reduction in Employee’s
required commitment as permitted under paragraph 2 herein, (ii) a material reduction of Employee’s performance-based target
bonus or other incentive programs except in conjunction with a Change in Control or, in the case of (i) and (ii) except where all
officers are affected equally. In either case, prior to invoking a Good Reason termination, the Employee must have provided the
Company with written notice of the basis upon which he believes Good Reason exists and permit the Company with at least thirty
(30) days to cure the conditions, which must continue to exist after the cure period for there to be Good Reason.

 

     

     

    

 

(v) The terms
“termination of employment,” or “terminate the Employee’s employment,” (or “termination”
or “terminate” when used in the context of Employee’s employment) shall mean a separation from service with the
Company and its affiliates as defined in IRS regulations under Section 409A of the Code.  An affiliate is any corporation
or other business entity that is, along with the Company, a member of a controlled group of businesses, as defined in Code Sections
414(b) and 414(c), provided that the language: “at least 50 percent” shall be used instead of “at least 80 percent”
each place it appears in such definition.  A corporation or other business entity is an affiliate only while a member
of such controlled group.

 

(e) In no event
will the Employee have the discretion to determine the calendar year of payment.

 

		13.	Change in Control – Termination of Employment and
Compensation in Event of Termination.

 

(a) Upon
the occurrence of a Change in Control, 100% of all unvested stock option grants and/or restricted stock grants previously awarded
to Employee shall immediately vest, regardless of the satisfaction of any conditions contained therein.

 

(b) In
the event that any part of any payment or benefit received (including, without limitation, granting of and/or acceleration of vesting
of stock options and restricted stock), (the “Change in Control Payments”) would be subject to the Excise Tax determined
as provided below, then the Employee may elect, in the sole discretion of the Employee, to receive in-lieu of the amounts payable
a lesser amount equal to $100 less than 3.00 times the Employee’s “Annualized Includable Compensation” (within
the meaning of Section 280G(d)(1) of the Code) (such amount the “Cut-Back Amount”) by eliminating the accelerated vesting
to the extent necessary to reduce the payments and to the Cut-Back Amount.  Any amounts paid as a result of an election
by the Employee pursuant to this subparagraph will be in full satisfaction of the amounts otherwise payable to the Employee.  For
purposes of determining whether any of the Change in Control Payments will be subject to the Excise Tax and the amounts of such
Excise Tax; (1) the total amount of the Change in Control Payments shall be treated as “parachute payments” within
the meaning of Section 280G(b)(2) of the Code, and all “excess parachute payments” within the meaning of Section 280G(b)(1)
of the Code shall be treated as subject to Excise Tax, except to the extent that, in the opinion of independent counsel selected
by the Company and reasonably acceptable to the Employee (“Independent Counsel”), a Change in Control Payment (in whole
or in part) does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code, or such
“excess parachute payments” (in whole or in part) are not subject to the Excise Tax, (2) the amount of the Change in
Control Payments that shall be treated as subject to the Excise Tax shall be equal to the lesser of (A) the total amount of the
Change in Control Payments or (B) the amount of “excess parachute payments” within the meaning of Section 280G(b)(1)
of the Code (after applying clause (1) hereof), and (3) the value of any noncash benefits or any deferred payment or benefit shall
be determined by Independent Counsel in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

 

(c) In the event of
any change in, or further interpretation of, Sections 280G or 4999 of the Code and the regulations promulgated thereunder, the
Employee shall be entitled, by written notice to the Company, to request an opinion of Independent Counsel regarding the application
of such change or interpretation to any of the foregoing, and the Company shall use its best efforts to cause such opinion to
be rendered as promptly as practicable.  Any fees and expenses of Independent Counsel incurred in connection with this
Agreement shall be borne by the Employee.

 

     

     

    

 

		14.	Section 409A.

 

(a)
To the extent any payments or benefits pursuant to Sections 12 and 13 above (a) are paid from the date of termination of
Employee’s employment through March 15 of the calendar year following such termination, such severance benefits are
intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations and thus payable
pursuant to the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations; (b)
are paid following said March 15, such Severance Benefits are intended to constitute separate payments for purposes of
Section 1.409A-2(b)(2) of the treasury Regulations made upon an involuntary separation from service and payable pursuant to
Section 1.409A-1(b)(9)(iii) of the Treasury Regulations, to the maximum extent permitted by said provision, (c) represent the
reimbursement or payment of costs for outplacement services, such payments are intended to constitute separate payments for
purposes of Section 1.409A-2(b)(2) of the Treasury regulations and to qualify for the exception from deferred compensation
pursuant to Section 1.409A-1(b)(9)(v)(A); and (d) are in excess of the amounts specified in clauses (a), (b) and (c) of this
paragraph, shall (unless otherwise exempt under Treasury Regulations) be considered separate payments subject to the
distribution requirements of Section 409A(a)(2)(A) of the Code, including, without limitation, the requirement of Section
409A(a)(2)(B)(i) of the Code that payments or benefits be delayed until 6 months after Employee’s separation from
service if Employee is a “specified Executive” within the meaning of the aforesaid section of the Code at the
time of such separation from service. In the event that a six month delay of any such separation payments or benefits
is required, on the first regularly scheduled pay date following the conclusion of the delay period, Employee shall receive a
lump sum payment or benefit in an amount equal to the separation payments and benefits that were so delayed, and any
remaining separation payments or benefits shall be paid on the same basis and at the same time as otherwise specified
pursuant to this Agreement (subject to applicable tax withholdings and deductions).

 

(b)
Additionally, in the event that following the date hereof the Company or Employee reasonably determines that any payments or
benefits payable under this Agreement may be subject to Section 409A of the Code, the Company and Employee shall work
together to adopt such amendments to this Agreement or adopt other policies or procedures (including amendments, policies and
procedures with retroactive effect), or take any other commercially reasonable actions necessary or appropriate to (i) exempt
the payments and benefits payable under this Agreement from Section 409A of the Code and/or preserve the intended tax
treatment of the payments and benefits provided with respect to this Agreement or (ii) comply with the requirements of
Section 409A of the Code.

 

(c)
Each payment in a series of installments shall be considered a separate “payment” for purposes of Section 409A of
the Code.

 

(d)
Notwithstanding anything contained herein to the contrary, in no event shall the Company be liable, or otherwise be held
responsible, for any additional tax, interest or penalties that may be imposed on Employee under Section 409A of the Code
with respect to any payment made under this Agreement.

 

		15.	Employment Eligibility Verification. For purposes of federal immigration law, Employee will
be required to provide to the Company documentary evidence of Employee’s identity and eligibility for employment in the United
States. Such documentation must be provided to the Company within three business days of the Effective Date or Employee’s
employment may be terminated and such termination shall be deemed a For Cause Termination.

 

		16.	Notification. Employee authorizes the Company to notify Employee’s future employers
of the terms of this Agreement and Employee’s responsibilities hereunder.

 

		17.	Name and Likeness Rights. Employee authorizes the Company to use the Employee’s name,
photograph, likeness, voice, and biographical information, in any media now known or hereafter developed (including, but not limited
to, film, video and digital or other electronic media) during Employee’s employment with the Company.

 

     

     

    

 

		18.	Governing Law. This Agreement shall be construed in accordance with and governed by the
laws of the State of California.

 

		19.	Interpretation. This Agreement shall be interpreted in accordance with the plain meaning
of its terms and not strictly for or against either party.

 

		20.	Headings. The headings of this Agreement are intended solely for the convenience of reference
and should be given no effect in the construction or interpretation of this Agreement.

 

		21.	Entire Agreement. This Agreement embodies the complete agreement and understanding of the
parties related to his or her employment of the Employee by the Company, superseding any and all other prior or contemporaneous
oral or written agreements or communications between the parties hereto with respect to the employment of the Employee by the Company,
and contains all of the covenants and agreements of any kind whatsoever between the parties with respect to such employment. Each
party acknowledges that no representations, inducements, promises or agreements, whether oral or written, express or implied, have
been made by either party or anyone acting on behalf of any party, that are not incorporated herein and that no other agreement
or promise not contained herein shall be valid or binding.

 

		22.	Modification. This Agreement may be modified or amended only by an agreement in writing
signed by the parties hereto.

 

		23.	Waiver. The failure of either party to insist, in any one or more instances, upon performance
of the terms or conditions of this Agreement shall not be construed as a waiver or relinquishment of any right granted under this
Agreement or of the future performance of any such term or condition.

 

		24.	Severability. Should any provision or part of this Agreement be held by a court of competent
jurisdiction to be invalid, void or unenforceable, the remaining provisions and parts shall be unaffected and shall continue in
full force and effect, and said invalid, void or unenforceable provision or part shall be deemed not to be part of this Agreement.

 

		25.	No Partnership. The parties agree that nothing expressed or implied in this Agreement shall
be deemed or construed by the parties hereto, or by any third person, to create the relationship of principal and agent or of partnership
or joint venture or of lessor and lessee or of any other association between Employee and Company other than that of employer and
employee.

 

		26.	Voluntary Agreement. Employee and the Company represent and agree that each has reviewed
all aspects of this Agreement, has carefully read and fully understands all provisions of this Agreement, and is voluntarily entering
into this Agreement. Each party represents and agrees that such party has had the opportunity to review any and all aspects of
this Agreement with the legal, tax or other advisor or advisors of such party’s choice before executing this Agreement.

 

		27.	Successors and Assigns. This Agreement shall be binding upon, inure to the benefit of, and
be enforceable by and against the Employee’s heirs, beneficiaries and legal representatives. The rights and obligations of
Employee may not be delegated or assigned except as expressly set forth in this Agreement. In the event of a sale of all or substantially
all of the Company’s capital stock, sale of all, or substantially all of the Company’s assets, or consolidation or
merger of the Company with or into another corporation, entity or individual, the Company may assign its rights and obligations
under this Agreement to its successor-in-interest, and such successor-in-interest shall be deemed to have acquired all rights and
assumed all obligations of the Company under this Agreement.

 

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

 

		29.	Alternative Dispute Resolution Program. Employee understands and agrees that, as a condition
of employment, employee will enter into an agreement, attached as Appendix A, to arbitrate all disputes arising out
of or related to the termination of employment, as well as any unlawful discrimination, or unlawful harassment (including sexual
harassment) claims. Only an arbitrator, not a judge or a jury, will hear such disputes.

 

     

     

    

 

		30.	Employment for Competitors. Employee represents and warrants that Employee does not
presently perform or intend to perform, during the term of the Agreement, services for, or engage in or intend to engage in an
employment relationship with, companies whose businesses or proposed businesses in any way involve products or services which would
be competitive with the Company’s products or services, or those products or services proposed or in development by the Company
during the term of the Agreement.

 

 

 

	EMPLOYEE	 	MOUNT TAM BIOTECHNOLOGIES, Inc.
	 	 	 
	 	 	 
	 	By:	 
	Signature	 	Signature
	 	 	 
	Print Name	 	Print Title
	 	 	 
	Date	 	Date

 

     

     

    

 

Appendix A

 

Alternative Dispute
Resolution (ADR) Policy and Agreement

 

		1.	Agreement to Arbitrate.

 

		1.1.	In the event that any employment dispute arises between MOUNT TAM BIOTECHNOLOGIES, Inc. (“Company”)
and James Stapleton (“Employee”), the parties involved will make all efforts to resolve any such dispute through informal
means. If these informal attempts at resolution fail and if the dispute arises out of or is related to the parties’
Employment Agreement, the termination of Employee’s employment or alleged unlawful discrimination, including but not limited
to unlawful harassment, the Company and Employee will submit the dispute to final and binding arbitration in Mountain View, California,
except as set forth in paragraph 101 of the Employment Agreement.

 

		1.2.	Except as described in paragraph 11, the parties expressly understand and agree that arbitration
is the exclusive remedy for all such disputes; with respect to such disputes, no other action may be brought in court or any other
forum (except actions to compel arbitration hereunder). EXCEPT AS SET FORTH HEREIN, THIS ALTERNATIVE DISPUTE RESOLUTION
AGREEMENT (“ADR AGREEMENT”) IS A WAIVER OF THE PARTIES’ RIGHTS TO A CIVIL COURT ACTION FOR A DISPUTE RELATING
TO BREACH OF THE PARTIES’ EMPLOYMENT AGREEMENT, TERMINATION OF THAT EMPLOYMENT OR ALLEGED UNLAWFUL DISCRIMINATION, WHICH
INCLUDES RETALIATION OR SEXUAL OR OTHER UNLAWFUL HARASSMENT; ONLY AN ARBITRATOR, NOT A JUDGE OR JURY, WILL DECIDE THE DISPUTE.

 

		1.3.	Employment disputes arising out of or related to termination of employment or alleged unlawful
discrimination, including retaliation or sexual or other unlawful harassment, shall include, but not be limited to, the following:
alleged violations of federal, state and/or local constitutions, statutes or regulations; claims based on any purported breach
of contractual obligation, including breach of the covenant of good faith and fair dealing; and claims based on any purported breach
of duty arising in tort, including violations of public policy. Disputes related to workers’ compensation and unemployment
insurance are not arbitrable hereunder. Claims for benefits covered by a separate benefit plan that provides for arbitration are
not covered by this ADR Agreement. Also, nothing in the Employment Agreement or in the ADR Agreement shall be construed as precluding
Employee from filing a charge with the Equal Employment Opportunity Commission (“EEOC”), the National Labor Relations
Board (“NLRB”) or other federal, state or local agencies, seeking administrative assistance in resolving claims. However,
any claim that cannot be resolved administratively through such an agency shall be subject to the Employment Agreement and this
ADR Agreement.

 

		2.	Request for Arbitration.

 

		2.1.	Attempt at Informal Resolution of Disputes. Prior to submission of any dispute to arbitration,
Employee and the Company shall attempt to resolve the dispute informally as follows: Employee and the Company will select a mediator
from a list provided by the Federal Mediation and Conciliation Service or other similar agency who will assist the parties in attempting
to reach a settlement of the dispute. The mediator may make settlement suggestions to the parties but shall not have the power
to impose a settlement upon them. If the dispute is resolved in mediation, the matter shall be deemed closed. If the dispute is
not resolved in mediation and goes to the next step (binding arbitration), any proposals or compromises suggested by either of
the parties or the mediator shall not be referred to in or have any bearing on the arbitration procedure. The mediator cannot also
serve as the arbitrator in any subsequent proceeding unless all parties expressly agree in writing.

 

     

     

    

 

		2.2.	Arbitration Procedures. The party desiring arbitration, whether Employee or the Company,
must submit a “Request For Arbitration” in writing to the other party within the time period required by the law that
applies to the claim under the applicable statute of limitations. If the “Request for Arbitration” is not submitted
in accordance with the aforementioned time limitations, the party failing to do so will not be able to bring that party’s
claims to this or any other forum. The “Request for Arbitration” form must, unless otherwise required by law, clearly
state “Request for Arbitration” at the beginning of the first page and include the following information:

 

		(a)	A factual description of the dispute in sufficient detail to advise the other party of the nature
of the dispute;

 

		(b)	The date on which the dispute first arose;

 

		(c)	The names, work locations and telephone numbers of any individuals, including employees or supervisors,
with knowledge of the dispute; and

 

		(d)	The relief requested by the requesting party.

 

The responding
party may submit counterclaim(s) in like manner in accordance with applicable law.

 

		2.3.	Selection of Arbitrator. All disputes will be resolved by a single Arbitrator, who will
be mutually selected by the Company and Employee. If the parties cannot agree on an Arbitrator, then a list of five arbitrators,
experienced in employment matters, shall be provided by the Federal Mediation and Conciliation Service. The Arbitrator will be
selected by the parties who will alternately strike names from the list. The last name remaining on the list will be the Arbitrator
selected to resolve the dispute. Upon selection, the Arbitrator shall set an appropriate time, date and place for the arbitration,
after conferring with the parties to the dispute.

 

		2.4.	The Arbitrator’s Authority. The Arbitrator shall have the following powers:

 

		(a)	To rule on motions regarding discovery, procedural, and evidentiary issues arising during the arbitration.

 

		(b)	To rule on motions to dismiss and/or motions for summary judgment applying the standards governing
such motions under the Federal Rules of Civil Procedure.

 

		(c)	To issue protective orders on the motion of any party or third-party witness. Such protective orders
may include, but are not limited to, sealing the record of the arbitration, in whole or in part (including discovery proceedings
and motions, transcripts, and the decision and award), to protect the privacy or other constitutional or statutory rights of parties
and/or witnesses.

 

		(d)	To determine only the issue(s) submitted to him/her. The issue(s) must be identifiable in the “Request
for Arbitration” or counterclaim(s). Except as required by law, any issue(s) not identifiable in those documents is outside
the scope of the Arbitrator’s jurisdiction and any award involving such issue(s), upon motion by a party, shall be vacated.

 

		2.5.	Discovery. The discovery process shall proceed and be governed, consistent with the standards
of the Federal Rules of Civil Procedure, as follows:

 

		(a)	Unless otherwise required by law, the parties may obtain discovery by any of the methods allowed
under the Federal Rules of Civil Procedure.

 

		(b)	To the extent permitted by the Federal Arbitration Act or applicable California law, each party
shall have the right to subpoena witnesses and documents during discovery and for the arbitration.

 

		(c)	All discovery requests shall be submitted no less than sixty (60) days before the hearing
date.

 

     

     

    

 

		(d)	The scope of discoverable evidence shall be in accordance with Federal Rule of Civil Procedure
26(b)(1).

 

		(e)	The Arbitrator shall have the power to enforce the aforementioned discovery rights and obligations
by the imposition of the same terms, conditions, consequences, liabilities, sanctions and penalties as can or may be imposed in
like circumstances in a civil action by a federal court under the Federal Rules of Civil Procedure, except the power to order the
arrest or imprisonment of a person.

 

		2.6.	Hearing Procedure. The hearing shall be held at a location mutually agreed upon by the parties,
or as determined by the Arbitrator in the absence of an agreement, and shall proceed according to the American Arbitration Association’s
“National Rules for the Resolution of Employment Disputes” in effect at the time of the arbitration, with the following
amendments:

 

		(a)	The Arbitrator shall rule at the outset of the arbitration on procedural issues that bear on whether
the arbitration is allowed to proceed.

 

		(b)	Each party has the burden of proving each element of its claims or counterclaims, and each party
has the burden of proving any of its affirmative defenses.

 

		(c)	In addition to, or in lieu of, closing argument, either party shall have the right to present a
post-hearing brief, and the deadline for exchanging any post-hearing briefs shall be mutually agreed on by the parties and the
Arbitrator, or determined by the Arbitrator in the absence of agreement.

 

		2.7.	Substantive Law.

 

		(a)	The parties agree that they will be afforded the identical legal, equitable, and statutory remedies
as would be afforded them were they to bring an action in a court of competent jurisdiction.

 

		(b)	The applicable substantive law shall be the law of the State of California or federal law. Choice
of substantive law in no way affects the procedural aspects of the arbitration, which are exclusively governed by the provisions
of this ADR Agreement.

 

		2.8.	Opinion and Award. The Arbitrator shall issue a written opinion and award, in conformance
with the following requirements:

 

		(a)	The opinion and award must be signed and dated by the Arbitrator.

 

		(b)	The Arbitrator’s opinion and award shall decide all issues submitted.

 

		(c)	The Arbitrator’s opinion and award shall set forth the legal principles supporting each part
of the opinion.

 

		(d)	The Arbitrator shall have the same authority to award remedies, damages and costs as provided to
a judge and/or jury under parallel circumstances.

 

		2.9.	Enforcement of Arbitrator’s Award. Following the issuance of the Arbitrator’s
decision, any party may petition a court to confirm, enforce, correct or vacate the Arbitrator’s opinion and award under
the Federal Arbitration Act, and/or applicable state law.

 

		2.10. 	Fees and Costs.  Unless
otherwise required by law, fees and costs shall be allocated in the following manner:

 

		(a)	Each party shall be responsible for its own attorneys’ fees, except as otherwise provided
by law for the particular claim(s) at issue.

 

		(b)	Company shall pay the entire cost of the arbitrator’s services, the facility in which the
arbitration is to be held, and any similar costs.

 

		(c)	The Company shall pay the entire cost of a court reporter to transcribe the arbitration proceedings.

 

     

     

    

 

		(d)	Each party shall advance its own costs for witness fees, service and subpoena charges, copying,
or other incidental costs that each party would bear during the course of a civil lawsuit.

 

		(e)	Each party shall be responsible for its costs associated with discovery, except as required by
law or court order.

 

		3.	Severability. Each term, clause and provision of this ADR Agreement is separate and independent,
and should any term, clause or provision of this ADR Agreement be found to be invalid or unenforceable, the validity of the remaining
terms, clauses, and provisions shall not be affected. As to those terms, clauses and provisions found to be invalid or unenforceable,
they shall be replaced with valid and enforceable terms, clauses or provisions or shall be modified, in order to achieve, to the
fullest extent possible, the economic, business and other purposes of the invalid or unenforceable terms, clauses or provisions.

 

	EMPLOYEE	 	MOUNT TAM BIOTECHNOLOGIES, Inc.
	 	 	 
	 	 	 
	 	By:	 
	Signature	 	Signature
	 	 	 
	Print Name	 	Print Title
	 	 	 
	Date	 	Date

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