Document:

Exhibit 10.1

 

Execution Version

 

AMENDMENT NO. 5

 

AMENDMENT No. 5 dated as of August 19, 2019 (this “Amendment”) to the Superpriority Senior Secured Priming Debtor-in-Possession Credit Agreement dated as of May 15, 2019, by and among Cloud Peak Energy Inc., a Delaware corporation and a debtor and debtor-in-possession under chapter 11 of the Bankruptcy Code (the “CPE”), the other Persons party hereto from time to time as a “Borrower”, the Persons party thereto from time to time as “Lenders”, and Ankura Trust Company, LLC, as administrative agent (in such capacity, including any sub-agent or any successor or assignee of any of the foregoing, the “Administrative Agent”) and as collateral agent (in such capacity, including any sub-agent or any successor or assignee of any of the foregoing, the “Collateral Agent”) (as amended, supplemented, restated or otherwise modified from time to time prior to the date hereof, the “Existing Credit Agreement”).

 

RECITALS:

 

WHEREAS, the parties hereto desire to amend the Existing Credit Agreement upon the terms and conditions set forth herein.

 

WHEREAS, the Lenders (as defined in the Existing Credit Agreement) party hereto constitute the requisite Lenders to effectuate the amendments to the Existing Credit Agreement set forth herein and such Lenders hereby notify the other parties hereto of their consent to this Amendment.

 

1.             Defined Terms.  Capitalized terms used and not otherwise defined herein have the meanings assigned to them in the Existing Credit Agreement, as amended hereby (the “Amended Credit Agreement”).

 

2.             Amendments.  Each party hereto agrees that, effective on the Amendment Effective Date, paragraph (g) of Section 5.15 of the Existing Credit Agreement shall be amended and restated as follows:

 

(g)           No later than one hundred and five (105) days after the Petition Date, the Bankruptcy Court shall have entered a 363 Sale Order, in form and substance reasonably satisfactory to the Required Lenders, with respect to an Acceptable 363 Sale in the Cases.

 

3.             Representations and Warranties.  Each Borrower party hereto represents and warrants to the Agents and the Lenders, on and as of the Amendment Effective Date that:

 

(a)           Each Borrower and each of the Subsidiaries (a) is a partnership, limited liability company or corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, formation or incorporation, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to own its assets and to carry on its business as now conducted, (c) is duly qualified and is licensed and, as applicable, in good standing, under the laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of

 

 

its business requires such qualification or license and (d) subject, in the case of each Borrower that is a Debtor, to the entry of the DIP Orders and subject to the terms thereof, has the power and authority to execute, deliver and perform its obligations under this Amendment and to perform the transactions contemplated thereby.

 

(b)           Subject to the entry of the DIP Orders and the terms thereof, the execution, delivery and performance by each Borrower and each of the Subsidiaries of this Amendment (a) have been duly authorized by all corporate, stockholder, limited liability company or partnership or other organizational action required to be obtained by such Borrower and such Subsidiaries and (b) (i) do not violate (A) any provision of law, statute, rule or regulation (including, without limitation, any Mining Law), or contravene the terms of any Organizational Document of any Borrower or any Subsidiary, (B) any applicable order of any court or any rule, regulation or order of any Governmental Authority (including, without limitation, any Mining Permit) or (C) any indenture, lease (including, without limitation, any Mining Lease), agreement or other instrument to which any such Borrower or any such Subsidiary is a party or by which any of them or any of their respective assets are or may be bound, except in respect of the Existing Indenture Documents, (ii) are not in conflict with, and do not result in a breach of or constitute (alone or with notice or lapse of time or both) a default under, give rise to a right of or result in any cancellation or acceleration of any right or obligation (including any payment) or to a loss of a material benefit under, any indenture, lease (including, without limitation, any Mining Lease), or other similar agreement or instrument, except in respect of the Existing Indenture Documents, or (iii) conflict with or result in any breach or contravention of, or the creation or imposition of any Lien (except for any Liens that arise under the Loan Documents) upon or with respect to any assets now owned or hereafter acquired by any Borrower or any such Subsidiary, or require any payment to be made under (A) any contractual obligation to which such Borrower or such Subsidiary is a party or affecting such Borrower or such Subsidiary or the properties of such Borrower, such Subsidiary or any of its or their Subsidiaries, except in respect of the Existing Indenture Documents or (B) any order, injunction, writ or decree of any governmental authority or any arbitral award to which such Borrower or such Subsidiary or its or their property is subject.

 

(c)           Subject, in the case of each Borrower that is a Debtor, to the entry of the DIP Orders and subject to the terms thereof, this Amendment has been duly executed and delivered by each Borrower and constitutes a legal, valid and binding obligation of such Borrower enforceable against each such Borrower in accordance with its terms, subject to (i) except in the case of each Borrower that is not a Debtor, the effects of bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other similar laws affecting creditors’ rights generally, (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (iii) implied covenants of good faith and fair dealing.

 

(d)           Subject to the entry of the DIP Orders and subject to the terms thereof, no action, consent or approval of, registration or filing with or any other action by any Governmental Authority is or will be required in connection with this Amendment except

 

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for (a) such consents, authorizations, filings or other actions that (i) have been made or obtained and are in full force and effect, (ii) notices required under the Mining Permits and Environmental Permits regarding a change in control solely to the extent required for the exercise of remedies in respect of the Liens created hereunder, which will be given to the applicable Governmental Authority on or prior to the date by which such notices are due or (iii) are listed on Schedule 3.04 of the Existing Credit Agreement and (b)  such actions, consents and approvals the failure to be obtained or made which would not reasonably be expected to have a Material Adverse Effect.

 

4.             Conditions to Effectiveness.  The date on which the Administrative Agent shall have received counterparts to this Amendment executed by the Administrative Agent, the Collateral Agent, each Borrower and Lenders, which collectively constitute the Required Lenders as of the date of this Amendment shall be referred to as the “Amendment Effective Date”.

 

5.             Ratification.  Except to the extent hereby amended, the Existing Credit Agreement and each of the other Loan Documents remain in full force and effect and are hereby ratified and affirmed as of the Amendment Effective Date.  Each Borrower expressly confirms that, with effect from (and including) the Amendment Effective Date, the Security Documents shall apply and extend to the liabilities and obligations of each relevant Borrower under the Amended Credit Agreement and the other Loan Documents.

 

6.             Miscellaneous.  This Amendment shall be limited precisely as written and, except as expressly provided herein, shall not be deemed (a) to be a consent granted pursuant to, or a waiver or modification of, any term or condition of the Existing Credit Agreement, any other Loan Documents or any of the instruments or agreements referred to therein or (b) to prejudice any right or rights which the Agents or the other Secured Parties may now have or have in the future under or in connection with the Existing Credit Agreement, the other Loan Documents or any of the instruments or agreements referred to therein. Unless the context indicates otherwise, on and after the Amendment Effective Date, whenever the Existing Credit Agreement is referred to in the Amended Credit Agreement or other Loan Documents or any of the instruments, agreements or other documents or papers executed or delivered in connection therewith, such reference shall be deemed to mean the Amended Credit Agreement.  The Borrowers agree that their obligations set forth in Section 9.05 of the Amended Credit Agreement shall extend to the preparation, execution and delivery of this Amendment.  This Amendment is hereby deemed to be a Loan Document for purposes of each Loan Document.

 

7.             Counterparts.  This Amendment may be executed in two or more counterparts, each of which shall constitute an original but all of which, when taken together, shall constitute but one contract, and shall become effective as provided in Section 10.03 of the Existing Credit Agreement.  Delivery of an executed counterpart to this Amendment by facsimile transmission shall be as effective as delivery of a manually signed original.

 

8.             Governing Law.  THIS AMENDMENT AND ALL ACTIONS ARISING UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN

 

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ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK AND (TO THE EXTENT APPLICABLE) THE BANKRUPTCY CODE.

 

9.             Entire Agreement.  This Amendment constitutes the entire contract between the parties relative to the subject matter hereof.  Any previous agreement among or representations from the parties or their Affiliates with respect to the subject matter hereof is superseded by this Amendment. Nothing in this Amendment, expressed or implied, is intended to confer upon any party other than the parties hereto and thereto any rights, remedies, obligations or liabilities under or by reason of this Amendment.  To the extent that any provision herein is inconsistent with any term of the DIP Orders, the DIP Order shall control.

 

10.          Severability.  In the event any one or more of the provisions contained in this Amendment should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby.  The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

11.          Waiver of Jury Trial; Jurisdiction.    The provisions of Sections 10.11 and 10.15 of the Existing Credit Agreement shall apply to this Amendment, mutatis mutandis.

 

[SIGNATURE PAGES FOLLOW]

 

4

 

Execution Version

 

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

 

	
 
    	
CLOUD PEAK ENERGY INC.,
    
	
 
    	
CLOUD PEAK ENERGY RESOURCES LLC
    
	
 
    	
CABALLO ROJO HOLDINGS LLC, 
    
	
 
    	
CORDERO MINING HOLDINGS LLC,
    
	
 
    	
CLOUD PEAK ENERGY SERVICES COMPANY,
    
	
 
    	
NERCO LLC,
    
	
 
    	
CLOUD PEAK ENERGY FINANCE CORP.,
    
	
 
    	
CABALLO ROJO LLC,
    
	
 
    	
CORDERO MINING LLC,
    
	
 
    	
NERCO COAL LLC,
    
	
 
    	
CORDERO OIL AND GAS LLC,
    
	
 
    	
CLOUD PEAK ENERGY LOGISTICS LLC,
    
	
 
    	
BIG METAL COAL CO. LLC,
    
	
 
    	
ANTELOPE COAL LLC,
    
	
 
    	
KENNECOTT COAL SALES LLC,
    
	
 
    	
PROSPECT LAND AND DEVELOPMENT LLC,
    
	
 
    	
SPRING CREEK COAL LLC,
    
	
 
    	
SEQUATCHIE VALLEY COAL CORPORATION,
    
	
 
    	
CLOUD PEAK ENERGY LOGISTICS I LLC,
    
	
 
    	
ARROWHEAD I LLC,
    
	
 
    	
WESTERN MINERALS LLC,
    
	
 
    	
RESOURCE DEVELOPMENT LLC,
    
	
 
    	
NERCO COAL SALES LLC,
    
	
 
    	
ARROWHEAD II LLC,
    
	
 
    	
ARROWHEAD III LLC,
    
	
 
    	
YOUNGS CREEK HOLDINGS I LLC,
    
	
 
    	
YOUNGS CREEK HOLDINGS II LLC, and   YOUNGS CREEK MINING COMPANY, LLC,  as   Borrowers
    

 

	
 
    	
By:
    	
/s/ Bryan Pechersky
    
	
 
    	
Name:
    	
Bryan Pechersky
    
	
 
    	
Title:
    	
Vice President, General Counsel and Corporate Secretary
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
ANKURA TRUST COMPANY, LLC, as Administrative   Agent and Collateral Agent
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lisa J. Price
    
	
 
    	
Name:
    	
Lisa J. Price
    
	
 
    	
Title:
    	
Managing Director
    
				

 

[Signature Page to Amendment No. 5]

 

 

Execution Version

 

	
 
    	
Arena Short Duration High Yield Fund, L.P.,   Series A, as Lender
    
	
 
    	
 
    
	
 
    	
By: ARENA CAPITAL ADVISORS, LLC
    
	
 
    	
for and on behalf of the funds and accounts   it manages
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sanije Perrett
    
	
 
    	
Name: 
    	
Sanije Perrett
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
Arena Short Duration High Yield Fund, L.P., Series B,   as Lender
    
	
 
    	
 
    
	
 
    	
By: ARENA CAPITAL ADVISORS, LLC
    
	
 
    	
for and on behalf of the funds and accounts   it manages
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sanije Perrett
    
	
 
    	
Name: 
    	
Sanije Perrett
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
Arena Short Duration High Yield Fund, L.P.,   Series C, as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By: ARENA CAPITAL ADVISORS, LLC
    
	
 
    	
for and on behalf of the funds and accounts   it manages
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sanije Perrett
    
	
 
    	
Name:
    	
Sanije Perrett
    
	
 
    	
Title:
    	
President
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
Arena Short Duration High Yield Fund, L.P.,   Series D, as Lender
    
	
 
    	
 
    
	
 
    	
By: ARENA CAPITAL ADVISORS, LLC
    
	
 
    	
for and on behalf of the funds and accounts    it   manages
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sanije Perrett
    
	
 
    	
Name:
    	
Sanije Perrett
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
Arena VII, LLC, as Lender
    
	
 
    	
 
    
	
 
    	
By: ARENA CAPITAL ADVISORS, LLC
    
	
 
    	
for and on behalf of the funds and accounts    it   manages
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sanije Perrett
    
	
 
    	
Name:
    	
Sanije Perrett
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
INKA for the account of beTurn,
    
	
 
    	
 
    
	
 
    	
By: ARENA CAPITAL ADVISORS, LLC
    
	
 
    	
for and on behalf of the funds and accounts    it   manages
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sanije Perrett
    
	
 
    	
Name:
    	
Sanije Perrett
    
	
 
    	
Title:
    	
President
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
TDC, National Assurance Company
    
	
 
    	
 
    
	
 
    	
By: ARENA CAPITAL ADVISORS, LLC
    
	
 
    	
for and on behalf of the funds and accounts    it   manages
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sanije Perrett
    
	
 
    	
Name:
    	
Sanije Perrett
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
The Doctor’s Company, an Interinsurance   Exchange
    
	
 
    	
 
    
	
 
    	
By: ARENA CAPITAL ADVISORS, LLC
    
	
 
    	
for and on behalf of the funds and accounts    it   manages
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sanije Perrett
    
	
 
    	
Name:
    	
Sanije Perrett
    
	
 
    	
Title:
    	
President
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
GRACE BROTHERS, LP, as Lender
    
	
 
    	
 
    
	
 
    	
By: BRO-GP, LLC
    
	
 
    	
A General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Bradford T. Whitmore
    
	
 
    	
Name:
    	
Bradford T. Whitmore
    
	
 
    	
Title:
    	
Manager
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
Stichting Pensioenfonds TNO, as Lender(1)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
Delta Master Trust, as Lender(2)
    
	
 
    	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
Commonwealth of Massachusetts 
    
	
 
    	
Employees Deferred Compensation Plan, as   Lender(3)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
The State of Connecticut Acting Through its   treasurer, as Lender(1)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
Blue Cross and Blue Shield Association   National Retirement Trust, as Lender(2)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
American Century Investment Trust - NT High   Income Fund, as Lender(3)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
Pinnacol Assurance, as Lender(1)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
Nomura Funds Ireland plc — Global High Yield   Bond Fund,as Lender(2)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
Kapitalforeningen MP Invest High yield   obligationer V, as Lender(3)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
PACE High Yield Investments, as Lender(1)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
Government of Guam Retirement Fund, as   Lender(2)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
Ohio Public Employees Retirement System, as   Lender(3)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
Northern Multi-Manager High Yield Opportunity   Fund, as Lender(1)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
General Organization for Social Insurance, as   Lender(2)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
PensionDanmark
    
	
 
    	
Pensionforsikringsaktieselskab, as Lender(3)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
Montgomery County Employees’ Retirement System,   as Lender(1)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
Nomura US Attractive Yield Corporate Bond   Fund Mother Fund, as Lender(2)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
L-3 Communications Corporation Master Trust,   as Lender(3)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
Mars Associates   Retirement Plan, as Lender(1)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
Stichting Mars   Pensioenfonds, as Lender(2)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
Montgomery County Consolidated Retiree Health   Benefits Trust,as Lender(3)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
Nomura   Bond & Loan Fund, as Lender(1)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
Louisiana State   Employees’ Retirement System, as Lender(2)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
Stichting   Pensioenfonds Hoogovens, as Lender(3)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
American Century U.S. High Yield Corporate   Bond Collective Fund, as Lender(1)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
Illinois State   Board of Investment, as Lender(2)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
American Century Investment Trust — High   Income Fund, as Lender(3)
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
National Railroad Retirement   Investment Trust, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
Delta Pilots   Disability and Survivorship Trust, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nomura Corporate Research and Asset   Management, Inc., its investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Kotsen
    
	
 
    	
Name:
    	
Stephen Kotsen
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
TIAA Global Public Investments, LLC -   Series Loan, as Lender
    
	
 
    	
 
    
	
 
    	
By: Teachers   Advisors, LLC, its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ji Min Shin
    	
AD
    
	
 
    	
Name:
    	
Ji Min Shin
    
	
 
    	
Title:
    	
Senior Director
    
	
 
    	
 
    
	
 
    	
TIAA Global Public Investments, LLC —   Series High Yield, as Lender
    
	
 
    	
 
    
	
 
    	
By: Teachers   Advisors, LLC, its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ji Min Shin
    	
AD
    
	
 
    	
Name:
    	
Ji Min Shin
    
	
 
    	
Title:
    	
Senior Director
    
	
 
    	
 
    
	
 
    	
TIAA-CREF   High Yield Fund, as Lender
    
	
 
    	
 
    
	
 
    	
By: Teachers   Advisors, LLC, its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ji Min Shin
    	
AD
    
	
 
    	
Name:
    	
Ji Min Shin
    
	
 
    	
Title:
    	
Senior Director
    
	
 
    	
 
    
	
 
    	
TIAA-CREF   Bond Plus Fund, as Lender
    
	
 
    	
 
    
	
 
    	
By: Teachers   Advisors, LLC, its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ji Min Shin
    	
AD
    
	
 
    	
Name:
    	
Ji Min Shin
    
	
 
    	
Title:
    	
Senior Director
    
	
 
    	
 
    
	
 
    	
Teachers Insurance and Annuity Association of   America, as Lender
    
	
 
    	
 
    
	
 
    	
By: Nuveen   Alternatives Advisors LLC, its investment manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ji Min Shin
    	
AD
    
	
 
    	
Name:
    	
Ji Min Shin
    
	
 
    	
Title: 
    	
Senior Director
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
WEXFORD   CATALYST INVESTORS LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Arthur Amron
    
	
 
    	
Name:
    	
Arthur Amron
    
	
 
    	
Title:
    	
Vice President and   Assistant Secretary
    
	
 
    	
 
    
	
 
    	
WEXFORD   SPECTRUM INVESTORS LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Arthur Amron
    
	
 
    	
Name: 
    	
Arthur Amron
    
	
 
    	
Title: 
    	
Vice President and   Assistant Secretary
    
	
 
    	
 
    
	
 
    	
DEBELLO   INVESTORS LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Arthur Amron
    
	
 
    	
Name: 
    	
Arthur Amron
    
	
 
    	
Title: 
    	
Vice President and   Assistant Secretary
    

 

[Signature Page to Amendment No. 5]

 

 

	
 
    	
WOLVERINE FLAGSHIP FUND TRADING LIMITED, as Lender
    
	
 
    	
 
    
	
 
    	
By: WOLVERINE ASSET MANAGEMENT, LLC, its   investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kenneth L.   Nadel
    
	
 
    	
Name:
    	
Kenneth L. Nadel
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

[Signature Page to Amendment No. 5]Exhibit 10.1

 

[*] Certain information
in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively
harmful if publicly disclosed.

 

EXCLUSIVE SUBLICENSE AGREEMENT

 

This Exclusive Sublicense
Agreement (this “Agreement”) is made effective as of August 19, 2019 (the “Effective Date”) by and between
Zylö Therapeutics, Inc., a Delaware corporation with a principal place of business at 200 Patewood Dr., Suite 400C, Greenville,
SC 29615 (“Licensor”), and Hoth Therapeutics, Inc., a Nevada corporation with a place of business at 1 Rockefeller
Plaza Suite 1039 New York, NY 10020 (“Licensee”). Licensor and Licensee are each hereafter referred to individually
as a “Party” and together as the “Parties”.

 

WHEREAS, Licensor and
Albert Einstein College of Medicine, an educational institution (“Einstein”), entered into the Technology Transfer
and License Agreement dated November 21, 2017, as amended by the First Amendment dated July 25, 2018 and by the Second Amendment
dated May 9, 2019 (collectively, the “Einstein Agreement”), covering certain proprietary Licensed Patent Rights (as
defined below) owned by Einstein; and

 

WHEREAS, Licensee desires
to obtain an exclusive license from Licensor under such Licensed Patent Rights and Licensed Technology (as defined below) to develop
and commercialize Licensed Products; and

 

WHEREAS, Licensor desires
to grant such license to Licensee on the terms and subject to the conditions of this Agreement.

 

NOW, THEREFORE, in consideration
of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the Parties hereby agree as follows:

 

1. DEFINITIONS

 

Whenever used in the
Agreement with an initial capital letter, the terms defined in this Article 1 shall have the meanings specified.

 

1.1 “Affiliate”
shall mean any corporation, firm, limited liability company, partnership or other entity that directly controls or is controlled
by or is under common control with a Party to this Agreement. For purposes of this Section 1.1, “control” means
ownership, directly or indirectly through one or more Affiliates, of fifty percent (50%) or more of the shares of stock entitled
to vote for the election of directors, in the case of a corporation, or fifty percent (50%) or more of the equity interests in
the case of any other type of legal entity, status as a general partner in any partnership, or any other arrangement whereby a
Party controls or has the right to control the Board of Directors or equivalent governing body of a corporation or other entity.

 

1.2 “Applicable
Laws” shall mean the applicable laws of any jurisdiction which are applicable to any of the Parties or their respective
Affiliates in carrying out activities hereunder or to which any of the Parties or their respective Affiliates in carrying out the
activities hereunder is subject, and shall include all statutes, enactments, acts of legislature, laws, ordinances, rules, regulations,
notifications, guidelines, policies, directions, directives and orders of any statutory authority, tribunal, board, or court or
any central or state government or local authority or other governmental entity in such jurisdictions.

 

    -1-

     

    

 

1.3 “BLA”
shall mean a biologics license application (as defined in Title 21 of the United States Code of Federal Regulations, as amended
from time to time) filed with the FDA seeking Regulatory Approval to market and sell any Licensed Product in the United States
for a particular Indication within the Field.

 

1.4 “Confidential
Information” shall mean with respect to a Party (the “Receiving Party”), all information which is disclosed
by the other Party (the “Disclosing Party”) to the Receiving Party hereunder or to any of its employees, consultants,
Affiliates, licensees or sublicensees, except to the extent that the Receiving Party can demonstrate by written record or other
suitable physical evidence that such information, (a) as of the date of disclosure is demonstrably known to the Receiving Party
or its Affiliates other than by virtue of a prior confidential disclosure to such Party or its Affiliates; (b) as of the date of
disclosure is in, or subsequently enters, the public domain, through no fault or omission of the Receiving Party; (c) is obtained
from a Third Party having a lawful right to make such disclosure free from any obligation of confidentiality to the Disclosing
Party; or (d) is independently developed by or for the Receiving Party without reference to or reliance upon any Confidential Information
of the Disclosing Party.

 

1.5 “Control”
or “Controlled” shall mean with respect to any Patent Rights or Technology, the possession by a Party
of the ability to grant a license or sublicense of such Patent Rights, or Technology as provided for herein without violating the
terms of any arrangement or agreements between such Party and any Third Party or without requiring such Party to make undue payment
to any Third Party.

 

1.6 “Development”
and “Develop” shall mean, with respect to any Licensed Product, all activities with respect to such Licensed
Product relating to research and development, including in connection with seeking, obtaining and/or maintaining any Regulatory
Approval for such Licensed Product in the Field in the Territory, including without limitation, all pre-clinical research and development
activities, all human clinical studies, all activities relating to developing the ability to manufacture any Licensed Product or
any component thereof (including, without limitation, process development work), and all other activities relating to seeking,
obtaining and/or maintaining any Regulatory Approvals from the FDA and/or any Foreign Regulatory Authority.

 

1.7 “Drug
Approval Application” shall mean any application for Regulatory Approval (including pricing and reimbursement approvals)
required prior to any commercial sale or use of a Licensed Product in any country or jurisdiction in the Territory, including,
without limitation, (a) any BLA, NDA or MAA filed with the FDA or any Foreign Regulatory Authority, and (b) any equivalent application
filed with any Foreign Regulatory Authority for Regulatory Approval (including pricing and reimbursement approvals) required prior
to any commercial sale or use of a Licensed Product in any country or jurisdiction in the Territory.

 

1.8 “Field”
shall mean all therapeutic uses related to lupus in human beings, subject to the Field Expansion Rights in Section 2.1.6(a).

 

    -2-

     

    

 

1.9 “First
Commercial Sale” shall mean, on a country-by-country basis, the date of the first arm’s length transaction,
transfer or disposition for value to a Third Party of a Licensed Product by or on behalf of Licensee or any Affiliate or Sublicensee
of Licensee in such country, excluding, however, transfers or dispositions of Licensed Product, without consideration: (i) in connection
with patient assistance programs; (ii) for charitable or promotional purposes; (iii) for preclinical, clinical, regulatory or governmental
purposes or under so-called “named patient” or other limited access programs; or (iv) for use in any tests or studies
reasonably necessary to comply with Applicable Laws, or request by the FDA or any Foreign Regulatory Authority. For clarity, First
Commercial Sale shall be determined on a Licensed Product-by-Licensed Product and country-by-country basis.

 

1.10 “FDA”
shall mean the United States Food and Drug Administration and any successor agency or authority thereto.

 

1.11 “Foreign
Regulatory Authorities” shall mean any applicable supranational, national, federal, state or local regulatory agency,
department, bureau or other governmental entity of any country or jurisdiction in the Territory (other than the FDA in the United
States), having responsibility in such country or jurisdiction for any Regulatory Approvals of any kind in such country or jurisdiction,
and any successor agency or authority thereto.

 

1.12 “IND”
shall mean an investigational new drug application (as defined in Title 21 of the United States Code of Federal Regulations, as
amended from time to time) filed or to be filed with the FDA with regard to any Licensed Product.

 

1.13 “Indemnitees”
and “Indemnifying Party” shall mean a Party, its Affiliates, licensors and their respective directors,
officers, employees, stockholders and agents and their respective successors, heirs and assigns indemnified under Section 8.1.1
or 8.1.2.

 

1.14 “Indication”
shall mean a separate and distinct disease or medical condition in humans: (a) which a Licensed Product is intended to treat
or prevent, as evidenced by the protocol for a clinical trial of such Licensed Product or by the proposed Licensed Product labeling
in an NDA filed with the FDA or Foreign Regulatory Authority for such Licensed Product; or (b) which is contained in a Licensed
Product’s labeling approved as part of the Regulatory Approval for such Product.

 

1.15 “Licensed
Patent Rights” means all Patent Rights which are Controlled by Licensor as of the Effective Date or become Controlled
by Licensor during the Term, to the extent related to Licensed Products in the Field, or the research, development, manufacture,
use or sale thereof. The Licensed Patent Rights as of the Effective Date are listed in Schedule A, attached hereto and made
a part hereof. Schedule A shall be updated by the Parties on a semi-annual basis during the Term to include any additional
patents and patent applications not previously listed; however, the inclusion or exclusion of a patent or patent application from
Schedule A is not to be deemed a conclusive indication of whether that patent or application is or should be considered
a “Licensed Patent Right” for purposes of this Agreement.

 

1.16 “Licensed
Product” shall mean any pharmaceutical product sold by Licensee or its Affiliates or Sublicensees containing Anandamide
(“AEA”) loaded into porous silica particles, referred to as Z-podsTM, or any derivative or analogue thereof, in
all dosage strengths, forms and formulations alone or in combination with other products, that, absent the license in the Field
provided in this Agreement, would be an infringement of a Valid Claim of the Licensed Patent Rights.

 

    -3-

     

    

 

1.17 “Licensed
Technology” shall mean and include all Technology, whether or not patentable, including but not limited to formulations,
techniques and materials, Controlled by Licensor as of the Effective Date or which becomes Controlled by Licensor during the Term
related to any Licensed Product in the Field, or the research, development, manufacture, use or sale thereof.

 

1.18 “MAA”
shall mean an application filed with the relevant Foreign Regulatory Authorities in Europe seeking Regulatory Approval to market
and sell any Licensed Product in Europe or any country or territory therein for a particular Indication within the Field.

 

1.19 “NDA”
shall mean: (a) in the United States, a New Drug Application (as more fully defined in 21 CFR 314.5, et seq.) filed
with the FDA, or any successor application thereto; or (b) in any other country or group of countries, the equivalent application
or submission for approval to market a pharmaceutical product filed with the governing Foreign Regulatory Authority in such country
or group of countries.

 

1.20 “Net
Sales” shall mean the total consideration, in any form, received by Licensee, its Affiliates or Sublicensees (each,
a “Selling Party”) as consideration for the sale, lease, provision or other disposition of Licensed Products
in the Field to Third Parties (“Total Consideration”) throughout the Territory during each calendar quarter,
less the following amounts incurred, allowed, accrued, paid or otherwise specifically allocated to Licensed Products by Licensee
or its Affiliates or Sublicensees during such calendar quarter with respect to sales of Licensed Products regardless of the calendar
quarter in which such sales were made:

 

(1) customary and reasonable
trade discounts actually allowed after the initial sale, refunds, returns and recalls, rebates and chargebacks for government and
managed care contracts;

 

(2) when included in
gross sales, customary and reasonable freight, shipping, duties, and sales, V.A.T. and/or use taxes based on sales prices, but
not including taxes when assessed on income derived from such sales; and

 

(3) a reasonable number
of samples, provided that the samples are given for no consideration (cash or otherwise).

 

In no case
will the total deductions referenced in Sub-sections (a) through (c) of this Section 1.20 exceed Twenty Five Percent (25%) of the
Total Consideration for Licensed Products in any calendar half year.

 

If Licensee
intends to accept from Third Parties any non-cash consideration as Net Sales or intend to provide Licensed Product at no charge,
Licensee must first obtain Licensor’s written approval, except as provided herein. For any non-cash consideration approved
by Licensor and received as Net Sales, the Parties, if not otherwise agreed, will appoint an independent third party to determine
the present day value of such consideration and that value shall be added to Net Sales in place of the non-cash consideration.
The cost of the independent third party will be paid by Licensee.

 

    -4-

     

    

 

On a country-by-country
basis, if a Licensed Product under this Agreement is sold in combination with another active ingredient or component having independent
therapeutic effect or diagnostic utility in a country (a “Combination Licensed Product”), Net Sales for the
purpose of determining royalties due hereunder shall be calculated as follows:

 

(i) Where all
active ingredients in such Combination Licensed Product are sold separately in such country, Net Sales shall be calculated by multiplying
actual Net Sales of such Combination Licensed Product in such country by the fraction A/(A+B), where A is the net invoice price
of the Licensed Product as sold separately in such country, and B is the sum of the net invoice prices of the other active ingredients
in the combination sold separately.

 

(ii) If the
Licensed Product component of the Combination Licensed Product is sold separately in such country, but none of such other active
ingredients is sold separately in such country, Net Sales shall be calculated by multiplying actual Net Sales of such Combination
Licensed Product in such country by the fraction A/C, where A is the net invoice price of such Licensed Product component as sold
separately in such country, and C is the net invoice price of the Combination Licensed Product in such country.

 

(iii) If the
Licensed Product component of the Combination Licensed Product is not sold separately in such country, but the other active ingredients
are sold separately in such country, Net Sales shall be calculated by multiplying actual Net Sales of such Combination Licensed
Product in such country by the fraction (C-D)/C, where C is the net invoice price of the Combination Licensed Product in such country,
and D is the sum of the net invoice prices charged for the other active ingredients in the Combination Licensed Product in such
country.

 

(iv) If none
of the Licensed Product component and the other active ingredients are sold separately in such country, Net Sales for the purpose
of determining royalties due hereunder for the Combination Licensed Product shall be determined by mutual agreement of the Parties
in good faith taking into account the perceived relative value contributions of the Licensed Product portion of the Combination
Licensed Product and the other active ingredients in the Combination Licensed Product. In case of disagreement, an independent
expert agreed upon by both Parties or, failing such agreement, designated by the AAA, shall determine such relative value contributions
and such determination shall be final and binding upon the Parties.

 

In the event Licensed
Product is “bundled” for sale together with one or more other products in a country (a “Product Bundle”),
then Net Sales for such Licensed Product sold under such arrangement shall be determined on a country-by-country basis by mutual
agreement of the Parties in good faith taking into account the relative value contributions of the Licensed Product and the other
products in the Product Bundle, as reflected in their individual sales prices. In case of disagreement, an independent expert agreed
upon by both Parties or, failing such agreement, the AAA shall determine such relative value contributions and such determination
shall be final and binding upon the Parties. In addition, if a Selling Party provides discounts or allowances with respect to a
Product Bundle, such discounts and allowances shall be allocated (for purposes of the deductions used in calculating Net Sales
as above) between the Licensed Product and the other products in the Product Bundle in a manner that does not unfairly or inappropriately
bias the level of discounting against the Licensed Product as compared to the other products in such Product Bundle.

 

    -5-

     

    

 

For clarification, sale
of Licensed Product by a Selling Party to another Selling Party for resale by such entity to a Third Party shall not be deemed
a sale for purposes of this definition of “Net Sales,” provided that the subsequent resale is included in the computation
of Net Sales (i.e., if the Licensed Product is not consumed by the Affiliate or Sublicensee). Further, transfers or dispositions
of Licensed Product, without consideration: (A) in connection with patient assistance programs; (B) for charitable or promotional
purposes; (C) for preclinical, clinical, regulatory or governmental purposes or under so-called “named patient” or
other limited access programs; or (D) for use in any tests or studies reasonably necessary to comply with Applicable Law, regulation
or request by the FDA or another Foreign Regulatory Authority, shall not, in each case of (A) through (D), be deemed sales of such
Licensed Product for purposes of this definition of “Net Sales.”

 

1.21 “Patent
Rights” shall mean the rights and interests in and to issued patents and pending patent applications (including inventor’s
certificates and utility models) in any country or jurisdiction within the Territory, including all provisionals, substitutions,
continuations, continuations-in-part, divisionals, supplementary protection certificates, renewals, all letters patent granted
thereon, and all reissues, reexaminations, extensions, confirmations, revalidations, registrations, patents of addition thereof,
PCTs and foreign counterparts, Controlled by a Party.

 

1.22 “Regulatory
Approval” shall mean any and all approvals (including pricing and reimbursement approvals), product and establishment
licenses, registrations or authorizations of any kind of the FDA or any Foreign Regulatory Authority necessary for the development,
pre-clinical and/or human clinical testing, manufacture, quality testing, supply, use, storage, importation, export, transport,
marketing and sale of a Licensed Product (or any component thereof) for use in the Field in any country or other jurisdiction in
the Territory. “Regulatory Approval” shall include, without limitation, any approved BLA, NDA, MAA or other Drug Approval
Application.

 

1.23 “Sublicensee”
shall mean any Third Party to whom Licensee grants a sublicense of some or all of the rights granted to Licensee under and in accordance
with the terms of this Agreement.

 

1.24 “Technology”
shall mean and include any and all unpatented, proprietary ideas, inventions, discoveries, Confidential Information, biologic materials,
data, results, formulae, designs, specifications, methods, processes, formulations, techniques, know-how, scientific information,
technical information (including, without limitation, structural and functional information), process information, pre-clinical
information, clinical information, and any and all proprietary biological, chemical, pharmacological, toxicological, pre-clinical,
clinical, assay, control and manufacturing data and materials.

 

    -6-

     

    

 

1.25 “Term”
shall mean the period commencing on the Effective Date and continuing until the expiration or termination of this Agreement in
accordance with the terms hereof.

 

1.26 “Territory”
shall mean the United States and Canada and their respective territories, subject to the right of first negotiation in Section
2.1.6(b).

 

1.27 “Third
Party” shall mean any person or entity other than Licensee, Licensor and their respective Affiliates.

 

1.28 “Valid
Claim” shall mean a claim in an issued, unexpired patent or in a pending patent application within the Licensed Patent
Rights that (a) has not been finally cancelled, withdrawn, abandoned or rejected by any administrative agency or other body of
competent jurisdiction, (b) has not been revoked, held invalid, or declared unpatentable or unenforceable in a decision of a court
or other body of competent jurisdiction that is unappealable or unappealed within the time allowed for appeal, (c) has not been
rendered unenforceable through disclaimer or otherwise, and (d) is not lost through an interference proceeding.

 

2. GRANT OF RIGHTS

 

2.1 License to
Licensee.

 

(1) Grant of License.
Subject to the terms and conditions of the Einstein Agreement and this Agreement, Licensor hereby grants to Licensee an exclusive
(even as to Licensor), royalty-bearing license, including the right to grant sublicenses in accordance with Section 2.1.2, under
the Licensed Patent Rights and Licensed Technology, to Develop, have Developed, make, have made, use, have used, sell, offer for
sale, have sold, import, have imported, export and have exported, Licensed Products and to practice the Licensed Technology in
the Territory, for any and all uses within the Field.

 

(2) Right to Sublicense.
Subject to the prior approval of Einstein (at its sole discretion and subsequent to any required amendment to the Einstein Agreement)
and Licensor (not to be unreasonably withheld or delayed), Licensee shall have the right to grant sublicenses to any Sublicensee
to all or any portion of its rights under the license granted pursuant to this Section 2; provided, however, that
(a) Licensor shall be notified of any and all potential sublicenses, (b) any and all sublicenses shall be consistent with the terms
and conditions of this Agreement, (c) a full and complete draft of the proposed sublicense is submitted to Licensor, as well as
a full and complete copy of the same within thirty (30) days of execution thereof by Licensee, and (d) Licensee shall remain obligated
for the payment to Licensor of all of its payment obligations hereunder, including, without limitation, the payment of any royalties
described in Section 4.2 hereof. In the event Licensee grants any permitted licenses or sublicenses to Third Parties to sell Products
that are subject to royalty payments under Section 4.4, Licensee shall have the responsibility to account for and report sales
of any Licensed Product by a licensee or a sublicensee on the same basis as if such sales were Net Sales by Licensee under this
Agreement. Licensee shall pay to Licensor (or cause the licensee or sublicensee to pay to Licensor, with Licensee remaining responsible
for any failure of the licensee or sublicensee to pay amounts when due under this Agreement): (a) royalties on such sales as if
such sales of the licensee or sublicensee were Net Sales of Licensee or any of its Affiliates; and (b) milestones payments pursuant
to Section 4.3 based on the achievement by such licensee or sublicensee of any milestone event contemplated in such Sections as
if such milestone event had been achieved by Licensees or any of its Affiliates hereunder.

 

    -7-

     

    

 

(3) Retained Rights.
Subject to the other terms of this Agreement, Licensor retains the right to practice the Licensed Patent Rights (a) to develop,
have developed, make, have made, use, have used, sell have sold, offer for sale, import, have imported, export and have exported
any product that is not a Licensed Product, and (b) to otherwise exploit such Licensed Technology and Licensed Patent Rights for
any and all uses outside of the Field.

 

(4) Retained Rights
of Government. Pursuant at least to Article 2 of the Einstein Agreement, this license granted hereunder is subject to
the rights, conditions and limitations imposed by United States law including without limitation those rights granted to the United
States Government as set forth under Title 35 U.S.C §§ 200 through 204 and applicable regulations.

 

(5) Retained Rights
of Albert Einstein. Notwithstanding the exclusive rights granted to Licensee pursuant to this Section 2.1.1, Einstein, pursuant
to at least Section 4.2 of the Einstein Agreement, retains the right to make, use and practice the Licensed Patent Rights
in its own laboratories solely for non-commercial scientific purposes and for continued non-commercial research. Further, Einstein
retains the right to make available to not-for-profit scientific institutions and non-commercial researchers materials covered
under the Licensed Patent Rights, solely for non-commercial scientific and research purposes.

 

(6) Right of First
Negotiation.

 

(a) Licensee shall
have a right of first negotiation to expand the Field to include any new Indications for License Products in accordance with this
Section 2.1.6(a) (such rights are referred to herein as the “Field Expansion Rights”). If Licensee desires to
license the Licensed Product for any Indications outside of the Field, it shall notify Licensor in writing and the Parties shall
proceed to negotiate in good faith pursuant to Section 2.1.6(c) below. Licensor shall not offer to license the Licensed Product
for any Indication outside of the Field to a Third Party without first offering such right to Licensee and providing Licensee a
thirty (30) day evaluation period.

 

(b) If at any time
Licensor desires to license the Licensed Products in the Field in any country outside of the Territory to any Third Party, it shall
first offer such rights to Licensee by providing written notice of its bona fide intent to do so and Licensee shall have a period
of thirty (30) days to assess whether Licensee desires to expand the Territory to include such country (“Territory Expansion
Rights”).

 

    -8-

     

    

 

(c) If Licensee desires
to exercise such Field Expansion Rights or Territory Expansion Rights it shall notify Licensor in writing prior to the expiration
of the applicable thirty (30) day evaluation period and the Parties shall negotiate in good faith for a period of ninety (90) days
thereafter (“Negotiation Period”) to amend this Agreement as appropriate on reasonable market terms to include
such expanded rights. If, by the expiration of the Negotiation Period, the Parties have not Agreed in principle to the material
terms regarding the applicable expansion rights, then at any time during the one-hundred eighty (180) day period following the
expiration of the Negotiation Period, Licensor or its Affiliate may consummate a Third-Party license or sale, as applicable, on
terms that are more favorable to the Licensor or its Affiliate than the terms last offered by Licensee during the negotiations.
If such Third-Party license or sale is not consummated within such one-hundred eighty (180) day period, the terms and conditions
of this Section 2.1.6 will again apply and Licensor shall not and shall cause its Affiliates not to enter into any Third-Party
sale or license with respect to the applicable rights without giving Licensee another opportunity to negotiation the applicable
expansion rights in accordance with the terms and conditions hereof. For purposes of this Section, “Agreed”
means as memorialized in a fully executed term sheet setting forth the material terms as non-binding, and including certain customary
binding provisions (such as those regarding confidentiality, expenses, and a reasonable exclusivity period). Licensor shall not
and shall cause its Affiliates not to sell or license in any manner to any Third Party any Licensed Product for such Indication
or country prior to the compliance with the foregoing.

  

3. DEVELOPMENT
AND COMMERCIALIZATION OF LICENSED PRODUCTS.

 

3.1 Commercialization.

 

(1) Responsibility.
From and after the Effective Date, Licensee shall have full control and authority over the Development and commercialization of
Licensed Products in the Field in the Territory, including without limitation, (a) all pre-clinical Development activities (including
any pharmaceutical development work on formulations or process development relating to any Licensed Product), (b) all activities
related to human clinical trials (including all clinical studies, (c) all activities relating to manufacture and supply of all
Licensed Products (including all required process development and scale up work with respect thereto), (d) all marketing, promotion,
sales, distribution, import and export activities relating to any Licensed Product, and (e) all activities relating to any regulatory
filings, registrations, applications and Regulatory Approvals relating to any of the foregoing (including any INDs or foreign
equivalents, any manufacturing facility validation and/or licensure, any Drug Approval Applications and any other Regulatory Approvals).
Licensee shall own all data, results and all other information arising from any such activities under this Agreement, including
without limitation, all regulatory filings, registrations, applications and Regulatory Approvals relating to Licensed Products
(including any INDs or foreign equivalents, any Drug Approval Applications and any other Regulatory Approvals), and all of the
foregoing information, documentation and materials shall be considered Confidential Information and Technology solely owned by
Licensee. All activities relating to Development and commercialization under this Agreement shall be undertaken at Licensee’s
sole cost and expense, except as otherwise expressly provided in this Agreement. Licensee shall market the Licensed Products in
the Field under such trademarks as Licensee selects and Licensee shall own all right, title and interest, including good will in
any such trademarks. If Licensee desires, and requests from Licensor, to use a trademark owned or Controlled by Licensor in connection
with the marketing and sale of a Licensed Product, Licensor will grant Licensee a royalty-free license to such trademarks for such
purpose.

 

    -9-

     

    

 

(2) Diligence.

 

(i) Licensee
will exercise commercially reasonable efforts to Develop, receive Regulatory Approval for and launch a Licensed Product in the
Field in at least one Indication in the Territory (“Diligence Milestone”). For purposes of this Agreement, “commercially
reasonable efforts” shall mean such reasonable efforts and diligence to be in accordance with the efforts and resources Licensee
would use for a product candidate owned by it or to which it has rights, which is of similar market potential and at a similar
stage in its development or product life as the applicable Licensed Product, taking into account all applicable circumstances,
including patent coverage, the competitiveness of the marketplace, the proprietary position of the Licensed Product, product profile,
the relative potential safety and efficacy of the Licensed Product, the cost of goods and availability of capacity to manufacture
and supply the Licensed Product at commercial scale, the profitability of the applicable Licensed Product, and other relevant factors
including, without limitation, technical, legal, scientific or medical factors. If despite using commercially reasonable efforts,
Licensee believes that it will not timely achieve the Diligence Milestone, it shall notify Licensor reasonably in advance of the
foregoing date and Licensor and Licensee will negotiate in good faith to establish a revised timetable for such Diligence Milestone
(“Revised Diligence Milestone”) or other alternatives mutually acceptable to both Parties. If Licensee fails to timely
achieve a Revised Diligence Milestone using commercially reasonable efforts, Licensor shall grant Licensee six (6) additional months
to achieve such Revised Diligence Milestone. If the Revised Diligence Milestone is not achieved within that six-month timeframe,
the Agreement shall terminate, and Licensed Products shall revert to Licensor.

 

3.2 Joint Development
Committee.

 

(1) Committee Responsibilities.
Licensor and Licensee will establish a Joint Development Committee (the “Joint Development Committee”) to plan,
review, coordinate and oversee Licensee’s performance of the Development activities and timelines with respect to Licensed
Products in the Field. The Joint Development Committee shall review and approve a written development plan describing the major
tasks to be achieved regarding Licensed Products within the Field in the Territory (“Development Plan”), submitted
by Licensee within one hundred and eighty (180) days after the Effective Date. The responsibilities of the Joint Development Committee
shall consist of:

 

(i) Facilitating
the exchange of materials and information between the Parties;

 

(ii) Monitoring
the progress of the Development Plan;

 

(iii) Reviewing
and discussing the results of the Development Plan;

 

    -10-

     

    

 

(iv) Approving
the Development Plan, as well as any modifications of the foregoing; and

 

(v) Such other
responsibilities as the Parties may mutually agree in writing to delegate to the Joint Development Committee.

 

(2) Membership.
The Joint Development Committee shall include two (2) representatives of each of Licensor and Licensee, with each Party’s
members selected by that Party. Each Party may replace its Joint Development Committee representatives at any time, upon written
notice to the other Party.

 

(3) Meetings.
The Joint Development Committee shall meet at least quarterly, or more frequently as agreed by the Parties, at such locations as
the Parties agree, and will otherwise communicate regularly. Meetings may also be held by telephone or videoconference in lieu
of in-person meetings, at such times as the Parties agree. With the consent of the Parties, other representatives of each Party
may attend Joint Development Committee meetings as nonvoting observers. Each Party shall be responsible for all of its own expenses
associated with attendance of such meetings.

 

(4) Decision Making.
With respect to decisions taken on matters placed by either Party before the Joint Development Committee, each Party shall have
one vote. Decisions of the Joint Development Committee shall be made by unanimous approval of the Parties. If the members of the
Joint Development Committee cannot reach an agreement after commercially reasonable efforts to do so, then either Party’s
representative to the Joint Development Committee may refer such dispute to the respective Chief Executive Officers of each Party,
who shall meet in person or by telephone within thirty (30) days after such referral to attempt in good faith to resolve such dispute.
Notwithstanding the foregoing, with respect to matters under the responsibility of the Joint Development Committee, Licensee will
have the tie-breaking vote on any disputes regarding matters (i) solely affecting the development and commercialization of the
Licensed Products in the Field and in the Territory or (ii) that generally do not adversely affect the development and commercialization
of the Licensed Products outside of the Field or the Territory in any material respect.

 

3.3 Updates and
Reports.

 

(1) Updates and
Reports. Licensee shall provide Licensor with brief written reports no less frequently than semi-annually during the Term (commencing
with the first anniversary of the Effective Date) summarizing Licensee’s efforts to Develop and commercialize Licensed Products
hereunder. Such reports shall include on an annual basis a report of the status of all regulatory activities conducted by Licensee
with respect to Licensed Products. In addition, Licensee shall provide Licensor with prompt written notice of the occurrence of
the First Commercial Sale of any Licensed Product in any country. All reports, updates, and other information provided by one Party
to the other Party under this Agreement (including under this Section 3), shall be considered Confidential Information of the Disclosing
Party, subject to the terms of Section 5 hereof.

 

    -11-

     

    

 

3.4 Technology
Transfer and Assistance. Licensor shall provide to Licensee all Licensed Technology at such time and in such manner and
format as reasonable requested by Licensee. Upon at least five business days’ prior written notice (thirty (30) days prior
written notice if travel is required), Licensor agrees to provide Licensee with reasonable assistance during Licensor’s normal
business hours in understanding, interpreting and applying the Licensed Technology and will answer any technical inquiries concerning
the same during the Term.

 

3.5 Competing
Products. Except pursuant to an agreement between the Parties entered into in accordance with this Agreement, during the
Term, Licensor shall not, and shall cause each of its Affiliates or its or their employees to not directly or indirectly (including
through consultants, contractors or an agreement with any Third Party, excluding the Einstein Agreement, including but not limited
to Section 4.2 of the Einstein Agreement and Section 2.1.5 of this Agreement), research, develop, commercialize, manufacture, market,
sell, detail or promote any product that competes with the Licensed Product in the Field in the Territory. Notwithstanding anything
to the contrary in this Agreement, the restrictions in this Section 3.5 shall not apply to any Third Party that acquires Licensor
after the Effective Date (whether by transfer or sale of all or any substantial portion of its assets, equity or business, or similar
business combination transaction or otherwise) to the extent such Third Party has existing research, development, manufacturing,
marketing or sales activities for a competing product that is independent of any Licensor programs or activities, and such Third
Party can continue work on such competing product, provided it does so independently of Licensor.

 

3.6 Pre-clinical
Supply. Following Licensee’s written request, Licensor shall supply the Licensed Products to Licensee solely for
confirmatory studies, and other development and pre-clinical purposes under this Agreement prior to Licensee establishing its own
manufacturing capabilities, at price equal to Licensor’s cost without markup.

 

3.7 Confirmatory
Study. Licensor shall contract with a Contract Research Organization to conduct a confirmatory study of Licensed Product
in a cutaneous lupus model prior to September 1, 2019. The cost and expense of the study shall be borne by Licensor; provided,
however that upon completion of the study and upon Licensor sharing the data and results of the study with Licensee, Licensee shall
reimburse up to $40,000 of Licensor’s actual out-of-pocket costs for such study within forty-five (45) days of receipt of
an invoice and documentation of such costs. Licensor shall commission and manage the study, and shall own the data from the study,
provided it shall provide such data to Licensee and such data shall be considered Licensed Technology licensed to Licensee under
Section 2.1.

 

3.8 Right of Reference.
Each Party hereby grants to the other Party a “Right of Reference or Use” as that term is defined in 21 C.F.R. § 314.3(b),
and any foreign equivalents, to any and all regulatory filings and regulatory data relating to a product covered by the Licensed
Patent Rights, including any information related to pharmacology, toxicology, preclinical testing, clinical testing, chemistry,
manufacturing and controls data, batch records, trials and studies, safety and efficacy, manufacturing information, analytical
and quality control. Each Party agrees to sign, and to cause its Affiliates to sign, any instruments reasonably requested by the
other Party in order to effect such grant.

 

    -12-

     

    

 

4. PAYMENTS AND
ROYALTIES

 

4.1 License Fees.

 

(1) Upfront Payment.
In consideration of the grant of the license described in Section 2.1 hereof, Licensee hereby agrees to pay Licensor an upfront
license fee in the amount of $50,000, less the amount of $10,000 previously paid by Licensee on or about May 13, 2019, which shall
be paid within fifteen (15) days after the Effective Date.

 

(2) Stock Purchase.
As further consideration of the grant of the license described in Section 2.1 hereof, Licensee hereby agrees that within forty-five
(45) days following the closing of Licensee’s next capital raise of $1,000,000 or more in equity financing, Licensee shall
purchase $60,000 of Class B Common Stock at a purchase price of $0.50 per share, pursuant to and following the execution by Licensee
of a stock purchase agreement that would be considered typical for this type of transaction and mutually accepted to both parties.

 

4.2 Payment of
Royalties; Royalty Rates 

 

(1) Royalty Payments.
In further consideration of the grant of the license by Licensor hereunder, and subject to the other terms of this Agreement (including
the remainder of this Section 4), commencing on the date of the First Commercial Sale of each Licensed Product in each country
in the Territory and continuing for the duration of the Royalty Term in such country, Licensee shall pay to Licensor an escalating
royalty based on cumulative Net Sales of any Licensed Product in the Field sold by Licensee and/or its Affiliates and Sublicensees
in the Territory.

 

	Royalty Rate on Commercial Sales	 	Royalty Rate	 
	That portion of cumulative Net Sales of Licensed Products that is less than or equal to USD $[*]	 	 	[*]	%
	That portion of cumulative Net Sales of Licensed Products that is greater than USD $[*]  and less than or equal to USD $[*]	 	 	[*]	%
	That portion of cumulative Net Sales of Licensed Products that is greater than USD $[*]  and less than or equal to USD $[*]	 	 	[*]	%
	That portion of cumulative Net Sales of Licensed Products that is greater than USD $[*]	 	 	[*]	%

 

(2) One Royalty.
Only one royalty, calculated at the highest applicable royalty rate under this Section 4, shall be payable to Licensor hereunder
for each sale of a Licensed Product.

 

4.3 Milestone
Payments.

 

(1) Payment.
In further consideration of the grant of the license by Licensor hereunder and subject to the other terms and conditions of this
Agreement, Licensee shall make the following payments to Licensor within forty-five (45) days of the initial occurrence of each
of the following events by Licensee or its Affiliates or Sublicensees:

 

	Milestone	 	Payment
	
        Regulatory Approval by the FDA of an NDA
        in the U.S.A. for the sale and marketing of Licensed Product in the Field based on the Indication as follows:

        A. For the first Indication in the Field

        B. For one additional Indication in the
        expanded Field resulting from the exercise of the Expansion Rights
	 	
         

        U.S.A.

        A. [*]

        B. [*]

	 	 	 
	
        Regulatory Approval by the Canadian FDA
        of an NDA in Canada for the sale and marketing of Licensed Product in the Field based on the Indication as follows:

        A. For the first Indication in the Field

        B. For one additional Indication
in the expanded Field resulting from the exercise of the Expansion Rights 
	 	
         

        Canada

        A. [*]

        B. [*]

 

It is hereby acknowledged
and agreed that any milestone payment shall be made only once, with respect to the first achievement of the relevant milestone
for the first Licensed Product, regardless of how many times such milestones are achieved by Licensed Products and regardless of
how many times a particular Licensed Product achieves such milestones.

 

(2) Determination
that Payments are Due. Licensee shall promptly (and in any event within ten (10) business days) provide Licensor with written
notice upon its achievement of each of the milestones set forth in Section 4.3.1.

 

4.4 Payment Terms.

 

(1) Royalty Term.
Royalties under Section 4.2 shall be payable on a Licensed Product-by-Licensed Product and country-by-country basis during the
period of time commencing on the First Commercial Sale of a Licensed Product in a country and ending upon the latest of: (a) 10
years from the date of First Commercial Sale of such Licensed Product in such country, and (b) expiration of the last-to-expire
Valid Claim of the Licensed Patent Rights that would be infringed by the composition, use or sale of such Licensed Product in such
country (the “Royalty Term”). On a Licensed Product-by-Licensed Product and country-by-country basis, upon expiration
of the Royalty Term for a Licensed Product in a country, Licensee’s license under Section 2.1 with respect to such Licensed
Product in such country shall become fully-paid, irrevocable, freely transferable, sublicensable and perpetual.

 

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(2) Payment of Royalties
and Milestones. Unless otherwise expressly provided, Licensee shall make any milestone, license or royalty payments owed to
Licensor hereunder in arrears, within forty-five (45) days from the end of each quarter in which such payment accrues. Each royalty
payment shall be accompanied by a report for each country in the Territory in which sales of Licensed Products occurred in the
calendar quarter covered by such statement, specifying: the gross sales (if available) and Net Sales in each country’s currency;
the applicable royalty rate under this Agreement; the royalties payable in each country’s currency, including an accounting
of deductions taken in the calculation of Net Sales; the applicable exchange rate to convert from each country’s currency
to United States Dollars under this Section 4.4; and the royalties payable in United States Dollars.

 

(3) Overdue Royalties.
Subject to the other terms of this Agreement, any payments not paid within the time period set forth in this Section 4 shall bear
interest at a rate of one percent (1%) per month from the due date until paid in full, provided that in no event shall said annual
rate exceed the maximum interest rate permitted by Applicable Law in regard to such payments. Such royalty payment when made shall
be accompanied by all interest so accrued.

 

(4) Accounting.
All payments hereunder shall be made in the United States in United States dollars. Conversion of foreign currency to United States
dollars shall be made at the conversion rate existing in the United States (as reported in The Wall Street Journal) on the
last business day of the quarter immediately preceding the applicable calendar quarter. If The Wall Street Journal ceases
to be published, then the rate of exchange to be used shall be that reported in such other business publication of national circulation
in the United States as the Parties reasonably agree.

 

(5) Tax Withholding;
Restrictions on Payment. All payments hereunder shall be made free and clear of any taxes, duties, levies, fees or charges,
except for withholding taxes (to the extent applicable). Licensee shall make any applicable withholding payments due on behalf
of Licensor and shall provide Licensor upon request with such written documentation regarding any such payment as available to
Licensee relating to an application by Licensor for a foreign tax credit for such payment with the United States Internal Revenue
Service.

 

4.5 Records Retention;
Review.

 

(1) Royalties.
Commencing as of the date of First Commercial Sale of the first Licensed Product hereunder, Licensee and its Affiliates and Sublicensees
shall keep for at least five (5) years from the end of the calendar year to which they pertain complete and accurate records of
sales by Licensee or its Affiliates and Sublicensees, as the case may be, of each Licensed Product, in sufficient detail to allow
the accuracy of the payments hereunder to be confirmed.

 

(2) Review.
Subject to the other terms of this Section 4.5.2, at the request of Licensor, which shall not be made more frequently than once
per calendar year during the Term, upon at least thirty (30) days’ prior written notice from Licensor, and at the expense
of Licensor (except as otherwise provided herein), Licensee shall permit an independent certified public accountant reasonably
selected by Licensor and reasonably acceptable to Licensee to inspect (during regular business hours) the relevant records required
to be maintained by Licensee under this Section 4.5. In every case the accountant must have previously entered into a confidentiality
agreement with both Parties substantially similar to the provisions of Section 5 and limiting the disclosure and use of such information
by such accountant to authorized representatives of the Parties who need to know in connection with the inspection. Each Party
agrees to treat the results of any such accountant’s review of the other Party’s records under this Section 4.5 as
Confidential Information of the other Party subject to the terms of Section 5. If any review reveals a deficiency in the calculation
and/or payment of royalties by Licensee, then (a) Licensee shall promptly pay Licensor the amount remaining to be paid, and (b)
if such underpayment is by five percent (5%) or more, Licensee shall pay the reasonable out-of-pocket costs and expenses incurred
by Licensor in connection with the review.

 

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(3) Other Parties.
Licensee shall include in any agreement with its Affiliates or Sublicensees terms requiring such party to retain records as required
in this Section 4.5 and to permit Licensor to inspect such records as required by this Section 4.5.

 

5. TREATMENT OF
CONFIDENTIAL INFORMATION

 

5.1 Confidential
Obligations. Licensor and Licensee each recognize that the other Party’s Confidential Information constitutes highly
valuable and proprietary confidential information. Licensor and Licensee each agree that during the Term and for five (5) years
thereafter, it will keep confidential, and will cause its employees, consultants, Affiliates and sublicensees to keep confidential,
all Confidential Information of the other Party. Neither Licensor nor Licensee nor any of their respective employees, consultants,
Affiliates or sublicensees shall use Confidential Information of the other Party for any purpose whatsoever other than exercising
any rights granted to it or reserved by it hereunder. Without limiting the foregoing, each Party may disclose information to the
extent such disclosure is reasonably necessary to (a) file and prosecute patent applications and/or maintain patents which are
filed or prosecuted in accordance with the provisions of this Agreement, or (b) file, prosecute or defend litigation in accordance
with the provisions of this Agreement or (c) comply with Applicable Laws or court orders; provided, however, that
if a Party is required to make any such disclosure of the other Party’s Confidential Information in connection with any of
the foregoing, it will give reasonable advance notice to the other Party of such disclosure requirement and will use reasonable
efforts to assist such other Party in efforts to secure confidential treatment of such information required to be disclosed. Nothing
herein contained shall preclude Einstein from making required reports or disclosures to the NIH or to any other philanthropic or
governmental funding organization, provided, however, that no Confidential Information of Licensee is disclosed in the process.

 

5.2 Limited Disclosure
and Use. Licensor and Licensee each agree that any disclosure of the other Party’s Confidential Information to any
officer, employee, consultant or agent of the other Party or any of its Affiliates or Sublicensees shall be made only if and to
the extent necessary to carry out its rights and responsibilities under this Agreement, shall be limited to the maximum extent
possible consistent with such rights and responsibilities and shall only be made to the extent any such persons are bound by written
confidentiality obligations to maintain the confidentiality thereof and not to use such Confidential Information except as expressly
permitted by this Agreement. Licensor and Licensee each further agree not to disclose or transfer the other Party’s Confidential
Information to any Third Parties under any circumstance without the prior written approval from the other Party (such approval
not to be unreasonably withheld), except as otherwise required by Applicable Law, and except as otherwise expressly permitted by
this Agreement. Each Party shall take such action, and shall cause its Affiliates or Sublicensees to take such action, to preserve
the confidentiality of each other’s Confidential Information as it would customarily take to preserve the confidentiality
of its own Confidential Information, using, in all such circumstances, not less than reasonable care. Each Party, upon the request
of the other Party, will return all the Confidential Information disclosed or transferred to it by the other Party pursuant to
this Agreement, including all copies and extracts of documents and all manifestations in whatever form, within sixty (60) days
of such request or, if earlier, the termination or expiration of this Agreement; provided however, that a Party may retain
(a) any Confidential Information of the other Party relating to any license which expressly survives such termination and (b) one
(1) copy of all other Confidential Information in inactive archives solely for the purpose of establishing the contents thereof.

 

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5.3 Publicity.
Neither Party may publicly disclose the existence or terms or any other matter of fact regarding this Agreement without the prior
written consent of the other Party, which consent shall not be unreasonably withheld or delayed; provided, however,
that either Party may make such a disclosure (a) to the extent required by Applicable Law or by the requirements of any nationally
recognized securities exchange, quotation system or over-the-counter market on which such Party has its securities listed or traded,
or (b) to any investors, prospective investors, lenders and other potential financing sources who are obligated to keep such information
confidential. In the event that such disclosure is required as aforesaid, the disclosing Party shall make reasonable efforts to
provide the other Party with notice beforehand and to coordinate with the other Party with respect to the wording and timing of
any such disclosure. The Parties, upon the execution of this Agreement, will mutually agree to a press release with respect to
this transaction for publication. Once such press release or any other written statement is approved for disclosure by both Parties,
either Party may make subsequent public disclosure of the contents of such statement without the further approval of the other
Party. Notwithstanding the foregoing, neither Party shall use the name of Einstein without the prior written consent of Einstein,
except if such use is required by law, regulation, federal securities law, or judicial order, in which event the Parties will promptly
inform Licensor prior to any such required use.

 

5.4 Use of Name.
 Neither Party shall employ or use the name of the other Party in any promotional materials or advertising without the prior
express written permission of the other party.

 

6. PROVISIONS CONCERNING
THE FILING, PROSECUTION AND MAINTENANCE OF PATENT RIGHTS

 

6.1 Patent Filing,
Prosecution and Maintenance. Pursuant to Section 3.2 of the Einstein Agreement, Licensor shall control national phase
prosecution and maintenance of patent application number PCT/US2018/017524 filed February 9, 2018 and any divisionals, continuations,
and continuations-in-part of said patent in all jurisdictions and covering all disclosed subject matter, including but not limited
to subject matter within the Field. Regarding any other patent or patent application that might become a Licensed Patent Right—and
subject to the other terms of this Section 6.1—Licensee shall be responsible for controlling, preparing, filing, prosecuting,
obtaining and maintaining, at its sole cost, expense and discretion, all Licensed Patent Rights (including, without limitation,
the composition of matter patents and applications covering the composition of matter of the Licensed Product), in the Territory
after the Effective Date, using patent counsel reasonably acceptable to Licensor. Licensor shall be responsible and shall pay for
all such costs incurred, or amounts due and outstanding prior to the Effective Date. In connection with the foregoing, Licensee
shall (i) keep Licensor reasonably informed of the course of the prosecution and maintenance of Licensed Patent Rights and (ii)
reasonably consider Licensor’s comments regarding such matters, and (iii) reasonably endeavor to undertake all suggestions
by Licensor that are not unreasonable. Until expiration of Licensee’s Expansion Rights with respect to a particular Indication,
Licensor shall keep Licensee reasonably informed of the course of the prosecution and maintenance of patents and patent applications
now or hereafter owned or Controlled by Licensor relating to any Licensed Product outside the Field and shall reasonably consider
Licensee’s comments, and in the event that Licensee does not obtain a license for Licensed Products outside the Field, shall
thereafter keep Licensee reasonably informed with respect to such patents and patent applications, other than those having applicability
solely outside the Field as to which Licensee has previously elected not to obtain a license. Similarly, for any patents and patent
applications related to any Licensed Product now or hereafter owned or Controlled by Licensor outside of the Territory, Licensor
shall keep Licensee reasonably informed of the course of the prosecution and maintenance of such patents and patent applications
and shall reasonably consider Licensee’s comments. Licensor shall have responsibility for patent costs for patents that are
primarily related to Licensed Products outside the Field (including related formulation patents) and outside of the Territory.
In the event that Licensee obtains an option or license for Licensed Products that are outside the Field or outside of the Territory
as of the Effective Date, the Parties will agree upon appropriate treatment of and responsibility for patent costs for such patents
at the time of any Field or Territory expansion.

 

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6.2 Patent Term
Restoration. After the Effective Date, Licensee shall have the sole right, at its sole discretion, to elect which patent
within the Licensed Patent Rights to extend under the Hatch-Waxman Act or any similar foreign counterpart, with respect to Licensed
Products. Licensor shall not apply for an extension under the Hatch-Waxman Act, or any similar foreign counterpart, of any patent
owned or Controlled by Licensor that is related to a Licensed Product either inside or outside the Field, without obtaining Licensee’s
prior, written consent. On request of Licensor or its licensee with respect to Licensed Products outside the Field, Licensee will
reasonably discuss possible application for such extensions with respect to Licensed Products outside the Field.

 

6.3 Notice of
Infringement. If, during the Term, either Party learns of any actual, alleged or threatened infringement by a Third Party
of any Licensed Patent Rights under this Agreement, such Party shall promptly notify the other Party and shall provide such other
Party with available evidence of such infringement.

 

6.4 Infringement
of Licensed Patent Rights. Subject to Einstein rights pursuant to the Einstein Agreement, including but not limited to
Article 8 of the Einstein Agreement, Licensee shall have the first right (but not the obligation), at its own expense and with
legal counsel of its own choice, to bring suit (or take other appropriate legal action) against any actual, alleged or threatened
infringement of the Licensed Patent Rights in the Field. Licensor shall have the right, at its own expense, to be represented in
any such action by Licensee by counsel of Licensor’s own choice; provided, however, that under no circumstances
shall the foregoing affect the right of Licensee to control the suit as described in the first sentence of this Section 6.4. If
Licensee does not file any action or proceeding against any such material infringement within six (6) months after the later of
(i) Licensee’s notice to Licensor under Section 6.3 above, (ii) Licensor’s notice to Licensee under Section 6.3
above, or (iii) a written request from Licensor to take action with respect to such infringement, then Licensor shall have the
right (but not the obligation), at its own expense, to bring suit (or take other appropriate legal action) against such actual,
alleged or threatened infringement, with legal counsel of its own choice, but shall not be permitted to settle any such suit without
the prior consent of Licensee, which consent shall not be unreasonably withheld. In the event that Licensee shall undertake the
enforcement and/or defense of the Licensed Patent Rights by litigation, Licensee may withhold up to fifty percent (50%) of the
royalties otherwise due Licensor hereunder after notification of infringement and apply the same toward reimbursement of its expenses,
including reasonable attorneys’ fees, in connection therewith. In order for such royalties to be continued to be withheld,
Licensee must continuously and diligently pursue such enforcement and/or defense. Any damages, monetary awards or other amounts
recovered, whether by judgment or settlement, pursuant to any suit, proceeding or other legal action taken under this Section 6.4,
shall applied as follows:

 

(a) First, to reimburse
the Parties for their respective costs and expenses (including reasonable attorneys’ fees and costs) incurred in prosecuting
such enforcement action;

 

    -17-

     

    

 

(b) Second, to Licensee
in reimbursement for lost sales (net of royalties) associated with Licensed Products and to Licensor in reimbursement for lost
royalties owing hereunder based on such lost sales (and the reimbursement to Licensor of royalties withheld by Licensee pursuant
to this Section 6.4);

 

(c) Third, any amounts
remaining shall be allocated as follows: (a) if Licensee is the Party bringing such suit or proceeding or taking such other legal
action, one hundred percent (100%) to Licensee, (b) if Licensor is the Party bringing such suit or proceeding or taking such other
legal action, one hundred percent (100%) to Licensor, and (c) if the suit is brought jointly, fifty percent (50%) to each Party.

 

If a Party brings any
such action or proceeding hereunder, the other Party agrees to be joined as party plaintiff if necessary to prosecute such action
or proceeding, and to give the Party bringing such action or proceeding reasonable assistance and authority to file and prosecute
the suit; provided, however, that neither Party shall be required to transfer any right, title or interest in or to any property
to the other Party or any Third Party to confer standing on a Party hereunder.

 

7. REPRESENTATIONS
AND WARRANTIES

 

7.1 Licensor Representations.
Licensor represents and warrants to Licensee that:

 

(a) the execution and
delivery of this Agreement and the performance of the transactions contemplated hereby have been duly authorized by all appropriate
Licensor corporate action;

 

(b) this Agreement
is a legal and valid obligation binding upon Licensor and enforceable in accordance with its terms, and the execution, delivery
and performance of this Agreement by the Parties does not conflict with any agreement, instrument or understanding to which Licensor
is a party or by which it is bound;

 

    -18-

     

    

 

(c) Licensor has the
full right and legal capacity to grant the rights granted to Licensee hereunder without violating the rights of any Third Party;

 

(d) To the best of
Licensor’s knowledge, Licensed Patent Rights have been properly filed and prosecuted and Licensor, through the Einstein Agreement,
as of the Effective Date, holds exclusive rights on a worldwide basis to the Licensed Patent Rights (pursuant to the Einstein Agreement)
and Licensed Technology (as Controlled by Licensor);

 

(e) Licensor is not
aware of any Third Party patent, patent application or other intellectual property rights that would be infringed (i) by practicing
any process or method or by making, using or selling any composition which is claimed or disclosed in, or which constitutes, Licensed
Technology, or (ii) by making, using, offering for sale, selling or importing Licensed Products;

 

(f) Licensor is not
aware of any infringement or misappropriation by a Third Party of the Licensed Technology; and,

 

(g) Licensor shall
comply with the terms and conditions of the Einstein Agreement including, without limitation, Licensor’s obligation to provide
certain payments to Einstein under Article 6 of the Einstein Agreement.

 

7.2 Licensee Representations.
Licensee represents and warrants to Licensor that:

 

(a) the execution and
delivery of this Agreement and the performance of the transactions contemplated hereby have been duly authorized by all appropriate
Licensee corporate action; and

 

(b) this Agreement
is a legal and valid obligation binding upon Licensee and enforceable in accordance with its terms, and the execution, delivery
and performance of this Agreement by the Parties does not conflict with any agreement, instrument or understanding to which Licensee
is a party of or by which it is bound.

 

7.3 No Warranties.

 

(1) Nothing in this
Agreement is or shall be construed as:

 

(a) a warranty or representation
by either Party or Einstein as to the validity or scope of any patent application or patent licensed hereunder;

 

(b) a warranty or representation
by either Party or Einstein that anything made, used, sold or otherwise disposed of under any license granted pursuant to this
Agreement is or will be free from infringement of patents, copyrights, and other rights of third parties.

 

(2) Except as expressly
set forth in this Agreement, NEITHER PARTY (NOR EINSTEIN) MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTIES OF ANY KIND, EITHER
EXPRESS OR IMPLIED. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR OF NON-INFRINGEMENT
OF ANY PATENT, COPYRIGHT, TRADEMARK, OR OTHER RIGHTS OF THIRD PARTIES, OR ANY OTHER EXPRESS OR IMPLIED WARRANTIES. IN ADDITION,
NEITHER PARTY (NOR EINSTEIN) SHALL BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, HOWEVER CAUSED, UNDER
ANY THEORY OF LIABILITY AND WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

    -19-

     

    

 

8. INDEMNIFICATION

 

8.1 Indemnification.

 

(1) Licensee Indemnity.
Licensee shall indemnify, defend and hold harmless Licensor, its Affiliates and their respective directors, officers, employees,
stockholders and agents and their respective successors, heirs and assigns (the “Licensor Indemnitees”) and
Einstein and its current or former directors, governing board members, trustees, officers, faculty, medical and professional staff,
employees, students and agents and their respective successors, heirs and assigns (“Einstein Indemnitees”) from
and against any liability, damage, loss or expense (including reasonable attorneys’ fees and expenses of litigation) incurred
by or imposed upon such Licensor Indemnitees and/or Einstein Indemnitees, or any of them, in connection with any Third Party claims,
suits, actions, demands or judgments, including, without limitation, personal injury and product liability matters, to the extent
arising out of (a) the research, development, testing, production, manufacture, supply, promotion, import, sale or use by any person
of any Licensed Product manufactured or sold by Licensee or any Affiliate or Sublicensee under this Agreement, (b) any material
breach of this Agreement by Licensee, or (c) the gross negligence or willful misconduct on the part of Licensee or any Affiliate
or Sublicensee, in any such case under this Section 8.1.1, except to the extent of Licensor’s (but not Einstein’s)
responsibility therefor under Section 8.1.2 below.

 

(2) Licensor Indemnity.
Subject to Section 8.1.1 above, Licensor (but expressly excluding Einstein under this Section 8.1.2) shall indemnify, defend and
hold harmless Licensee, its Affiliates, Sublicensees, their respective directors, officers, employees, and agents, and their respective
successors, heirs and assigns (the “Licensee Indemnitees”), from and against any liability, damage, loss or
expense (including reasonable attorneys’ fees and expenses of litigation) incurred by or imposed upon such Licensee Indemnitees,
or any of them, in connection with any Third Party claims, suits, actions, demands or judgments, including, without limitation,
personal injury and product liability matters (but excluding any patent infringement matters, which are governed by Section 6 above),
to the extent arising out of (a) any actions or omissions of Licensor under this Agreement, (b) any material breach of this Agreement
by Licensor, or (c) the gross negligence or willful misconduct on the part of Licensor.

 

8.2 Indemnification
Procedures. In the event that any Indemnitee is seeking indemnification under Section 8.1 above from a Party (the “Indemnifying
Party”), the other Party shall notify the Indemnifying Party of such claim with respect to such Indemnitee as soon as
reasonably practicable after the Indemnitee receives notice of the claim, and the Party (on behalf of itself and such Indemnitee)
shall permit the Indemnifying Party to assume direction and control of the defense of the claim (including the right to settle
the claim, subject to the limitations below) and shall cooperate as requested (at the expense of the Indemnifying Party) in the
defense of the claim. The indemnification obligations under Article 8 shall not apply to any harm suffered as a direct result of
any delay in notice to the Indemnifying Party hereunder or to amounts paid in settlement of any claim, demand, action or other
proceeding if such settlement is effected without the consent of the Indemnifying Party, which consent shall not be withheld or
delayed unreasonably. The Indemnitee, its employees and agents, shall reasonably cooperate with the Indemnifying Party and its
legal representatives in the investigation of any claim, demand, action or other proceeding covered by Section 8.1. An Indemnifying
Party may settle any claim without the written consent or approval of the Indemnitees provided the Indemnities are fully released
from the claim, are held harmless from the payment of any money or damages in the settlement, all liability or responsibility of
the Indemnities is disclaimed and denied in the settlement agreement, and no order or other restriction is placed on any of the
Indemnities in connection with the settlement.

 

    -20-

     

    

 

8.3 Insurance.
Licensee represents and warrants that before Licensee, or an Affiliate or a Sublicensee makes any sales of Licensed Products or
performs or causes any third party to perform any clinical trials or tests in human subjects involving Licensed Products, Licensee
or Affiliates or Sublicensees will acquire and maintain in each country in which Licensee or Affiliates or Sublicensees shall test
or sell Licensed Products, appropriate insurance coverage reasonably acceptable to Licensor, but providing coverage in respect
of Licensed Products in an amount no less than Two Million Dollars (US $2,000,000) per claim. Licensee or Affiliates will not perform,
or cause any third party to perform, any clinical trials or any tests in human subjects involving Licensed Products unless and
until it obtains all required Regulatory Approvals with respect to Licensed Products in the applicable countries. Prior to instituting
any clinical trials or any tests in human subjects, or sale of any Licensed Product, Licensee shall provide evidence of such insurance
to Licensor and Einstein. If Licensor or Einstein determines that such insurance is not reasonably appropriate, Licensee and/or
Einstein shall so advise Licensee and Licensee shall delay such trials, tests or sales until the Parties and Einstein mutually
agree that reasonably appropriate coverage is in place. Licensor and Einstein shall be listed as an additional insured in Licensee's
insurance policies. If such insurance is underwritten on a 'claims made' basis, Licensee agrees that any change in underwriters
during the term of this Agreement will require the purchase of 'prior acts' coverage to ensure that coverage will be continuous
throughout the term of this Agreement.

 

(1) The minimum amounts
of insurance coverage required under this Section shall not be construed to create a limit of Licensee's liability with respect
to its indemnification under Section 8.1 of this Agreement.

 

(2) Licensee shall
provide Licensor with written evidence of such insurance upon request of Licensor. Licensee shall provide Licensor with written
notice at least ninety (90) days prior to the cancellation, non-renewal or material change in such insurance; if Licensee does
not obtain replacement insurance providing comparable coverage within such ninety (90) day period, Licensor shall have the right
to terminate this Agreement effective at the end of such ninety (90) day period without notice or any additional waiting periods.

 

(3) Licensee shall
maintain such comprehensive general liability insurance beyond the expiration or termination of this Agreement during (i) the period
that any product, process or service, relating to, or developed pursuant to, this Agreement is being commercially distributed or
sold or tested in clinical trials by Licensee or by a Sublicensee, Affiliate, optionee or agent of Licensee and (ii) a reasonable
period after the period referred to in (i) above, which in no event shall be less than five (5) years.

 

    -21-

     

    

 

9. TERM AND TERMINATION

 

9.1 Term; Expiration.
The term of this Agreement shall commence on the Effective Date and, unless earlier terminated in accordance with this Article
9, shall continue until the expiration of the last-to-expire Royalty Term (the “Term”).

 

9.2 Termination
Rights for Breach. 

 

(1) Termination
for Breach. Subject to the other terms of this Agreement, this Agreement and the rights and options granted herein may be terminated
by either Party upon any material breach by the other Party of any material obligation or condition, effective thirty (30) days
after giving written notice to the breaching Party of such termination in the case of a payment breach and ninety (90) days after
giving written notice to the breaching Party of such termination in the case of any other breach, which notice shall describe such
breach in reasonable detail. The foregoing notwithstanding, if such default or breach is cured or remedied or shown to be non-existent
within the aforesaid thirty (30) or ninety (90) day period, the notice shall be automatically withdrawn and of no effect. However,
prior to giving any notice of termination for breach, the Parties shall first attempt to resolve any disputes as to the existence
of any breach as set forth in Article 10.

 

(2) Voluntary Termination.
Licensee shall have the right to terminate this Agreement at any time upon ninety (90) days written notice to Licensor. Notwithstanding
Section 9.4 to the contrary, during such ninety (90) day period (i) no further milestone payments would become due during such
notice period, (ii) Licensee would exercise its license during such period solely to the extent reasonably necessary to fulfill
its obligations under the Agreement and for the orderly wind-down and transfer of Licensed Products to Licensor, (iii) Licensor
would have the right to negotiate with Third Parties with respect to re-licensing the Licensed Products in the Field during such
notice period, and (iv) during such notice period, the license to Licensee would become non-exclusive.

 

9.3 Termination
for Bankruptcy. In the event that either Party files for protection under bankruptcy laws, makes an assignment for the
benefit of creditors, appoints or suffers appointment of a receiver or trustee over its property, files a petition under any bankruptcy
or insolvency act or has any such petition filed against it which is not discharged within sixty (60) days of the filing thereof,
then the other Party may terminate this Agreement effective immediately upon written notice to such Party.

 

9.4 Effects of
Termination.

 

(1) Termination
for Licensee Breach. Upon any termination of this Agreement by Licensor under Section 9.2.1 or by Licensee pursuant to
Section 9.2.2, as of the effective date of such termination all relevant licenses and sublicenses granted by Licensor to Licensee
hereunder shall terminate automatically. Notwithstanding the foregoing, no such termination of this Agreement shall be construed
as a termination of any valid sublicense of any Sublicensee hereunder, and thereafter each such Sublicensee shall be considered
a direct licensee of Licensor, provided that (i) such Sublicensee is then in full compliance with all terms and conditions of its
sublicense, (ii) all accrued payments obligations to Licensor have been paid, and (iii) such Sublicensee agrees in writing to assume
all applicable obligations of Licensee under this Agreement. Without limiting the generality of the foregoing, Licensee shall have
no obligation to make any milestone or royalty payment to Licensor that has not accrued prior to the effective date of any termination
of this Agreement, but shall remain liable for all such payment obligations accruing prior to the effective date of such termination.

 

    -22-

     

    

 

(2) Wind-Down Procedures.
Upon any termination of this Agreement by Licensor under Section 9.2.1 or by Licensee pursuant to Section 9.2.2, Licensee shall
responsibly wind-down, in accordance with accepted pharmaceutical industry norms and ethical practices, any on-going clinical studies
for the terminated Licensed Products for which it has responsibility hereunder in which patient dosing has commenced or, if reasonably
practicable and requested by Licensor, Licensee, its Affiliates or its Sublicensees shall complete such trials. Licensee shall
be responsible for any costs associated with such wind-down. Licensor shall pay all costs incurred by either Party to complete
such studies should Licensor request that such studies be completed. Licensee agrees to cooperate with Licensor and its designee(s)
to facilitate a smooth, orderly and prompt transition of the manufacture and commercialization of the Licensed Product in the Territory
to Licensor and/or its designee(s) following such termination, and upon request by Licensor, and at Licensor’s expense, Licensee
shall transfer to Licensor some or all quantities of Licensed Product in its possession, for a price mutually agreed to by the
Parties. In addition, following such termination, upon Licensor’s request, all Regulatory Approvals and regulatory filings
and communications relating to the Licensed Products owned (in whole or in part) or otherwise controlled by Licensee and its Affiliates,
and all other documents relating to or necessary to further manufacture and commercialize any Licensed Products, as such items
exist as of the effective date of such termination (including all related completed and ongoing clinical studies) shall be assigned
to Licensor, and Licensee shall provide to Licensor one (1) copy of the foregoing and all documents contained in or referenced
in any such items, together with the raw and summarized data for any clinical studies (and where reasonably available, electronic
copies thereof), and Licensor shall be responsible for all costs and expenses in connection with such transfer and the maintenance
of such files.

 

9.5 Remedies.
Except as otherwise expressly set forth in this Agreement, the termination provisions of this Article 9 are in addition to any
other relief and remedies available to either Party at law.

 

9.6 Surviving
Provisions. Notwithstanding any provision herein to the contrary, the rights and obligations of the Parties set forth in
Articles 1, 5, 8, 9, 10, and 11 and the terms of Section 4.4 (for accrued payment obligations) shall survive the expiration or
termination of the Term.

 

    -23-

     

    

 

10. DISPUTES

 

10.1 Negotiation.
The Parties recognize that a bona fide dispute as to certain matters may from time to time arise during the term of this Agreement
that relates to either Party’s rights and/or obligations hereunder. In the event of the occurrence of such a dispute, either
Party may, by written notice to the other Party, have such dispute referred to their respective senior officials designated below
or their successors, for attempted resolution by good faith negotiations within thirty (30) days after such notice is received.
Said designated senior officials are as follows:

 

For Licensee: Chief
Executive Officer

 

For Licensor: Chief
Executive Officer

 

In the event the designated
senior officials are not able to resolve such dispute within the thirty (30) day period, either Party may invoke the provisions
of Section 10.2.

 

10.2 Arbitration.
Subject to Section 10.1, any dispute, controversy or claim initiated by either Party arising out of, resulting from or relating
to this Agreement, or the performance by either Party of its obligations under this Agreement (other than bona fide Third Party
actions or proceedings filed or instituted in an action or proceeding by a Third Party against a Party), whether before or after
termination of this Agreement, shall be finally resolved by binding arbitration. Whenever a Party shall decide to institute arbitration
proceedings, it shall give written notice to that effect to the other Party. Any such arbitration shall be conducted under the
Commercial Arbitration Rules of the American Arbitration Association (“AAA”) by a panel of three arbitrators
appointed in accordance with such rules. Any such arbitration shall be held in Delaware. The method and manner of discovery in
any such arbitration proceeding shall be governed by the laws of the Delaware. The arbitrators shall have the authority to grant
injunctions and/or specific performance and to allocate between the parties the costs of arbitration in such equitable manner as
they determine. Judgment upon the award so rendered may be entered in any court having jurisdiction or application may be made
to such court for judicial acceptance of any award and an order of enforcement, as the case may be. In no event shall a demand
for arbitration be made after the date when institution of a legal or equitable proceeding based upon such claim, dispute or other
matter in question would be barred by the applicable statute of limitations. Notwithstanding the foregoing, either Party shall
have the right, without waiving any right or remedy available to such Party under this Agreement or otherwise, to seek and obtain
from any court of competent jurisdiction any interim or provisional relief that is necessary or desirable to protect the rights
or property of such Party, pending the selection of the arbitrators hereunder or pending the arbitrators’ determination of
any dispute, controversy or claim hereunder.

 

11. MISCELLANEOUS

 

11.1 Notification.
All notices, requests and other communications hereunder shall be in writing, shall be addressed to the receiving party’s
address set forth below or to such other address as a party may designate by notice hereunder, and shall be either (i) delivered
by hand, (ii) sent by private courier service providing evidence of receipt, or (iii) sent by registered or certified mail, return
receipt requested, postage prepaid. The addresses and other contact information for the parties are as follows:

 

	If to Licensor:	
        Zylo Therapeutics Inc.

        200C Patewood Dr., Suite 400C

        Greenville, SC 29615

        Attn: CEO

	
         

        With a copy to:
	
         

        Timothy Cassidy

        Dority-Manning

        Two Liberty Square

        75 Beattie Place, Suite 1100

        Greenville, SC 29601

         

	If to Licensee:	
        Hoth Therapeutics, Inc.

        1 Rockefeller Plaza, Suite 1039

        New York, NY 10020

        Attn: CEO

	
         

        With a copy to:
	
         

        Richard Friedman, Esq.

        Sheppard Mullin Richter & Hampton LLP

        30 Rockefeller Plaza

        New York, NY 10112

 

    -24-

     

    

 

All notices, requests
and other communications hereunder shall be deemed to have been given either (i) if by hand, at the time of the delivery thereof
to the receiving party at the address of such party set forth above, (ii) if sent by private courier, on the day such notice is
delivered to the recipient, or (iii) if sent by registered or certified mail, on the fifth (5th) business day following
the day such mailing is made.

 

11.2 Language.
This Agreement has been prepared in the English language and the English language shall control its interpretation.

 

11.3 Governing
Law. This Agreement will be construed, interpreted and applied in accordance with the laws of the State of Delaware (excluding
its body of law controlling conflicts of law).

 

11.4 Limitations.
Except as expressly set forth in this Agreement, neither Party grants to the other Party any right or license to any of its intellectual
property.

 

11.5 Entire Agreement.
This is the entire Agreement between the Parties with respect to the subject matter hereof and supersedes all prior representations,
understandings and agreements between the Parties with respect to the subject matter hereof. No modification shall be effective
unless in writing with specific reference to this Agreement and signed by the Parties.

 

11.6 Waiver.
The terms or conditions of this Agreement may be waived only by a written instrument executed by the Party waiving compliance.
The failure of either Party at any time or times to require performance of any provision hereof shall in no manner affect its rights
at a later time to enforce the same. No waiver by either Party of any condition or term shall be deemed as a continuing waiver
of such condition or term or of another condition or term.

 

    -25-

     

    

 

11.7 Headings.
Section and subsection headings are inserted for convenience of reference only and do not form part of this Agreement.

 

11.8 Assignment.
Neither this Agreement nor any right or obligation hereunder may be assigned, delegated or otherwise transferred, in whole or part,
by either Party without the prior express written consent of the other; provided, however, that either Party may, without the written
consent of the other, assign this Agreement hereunder to its Affiliates, or in connection with the transfer or sale of all or substantially
all of such Party’s assets or business related to this Agreement, or in the event of its merger, consolidation, change in
control or similar transaction. Any permitted assignee shall assume all obligations of its assignor under this Agreement. Any purported
assignment in violation of this Section 11.8 shall be void. The terms and conditions of this Agreement shall be binding upon and
inure to the benefit of the permitted successors and assigns of the parties.

 

11.9 Force Majeure.
Neither Party shall be liable for failure of or delay in performing obligations set forth in this Agreement, and neither shall
be deemed in breach of its obligations, if such failure or delay is due to natural disasters or any causes beyond the reasonable
control of such Party. In event of such force majeure, the Party affected thereby shall use reasonable efforts to cure or overcome
the same and resume performance of its obligations hereunder.

 

11.10 Construction.
The Parties hereto acknowledge and agree that: (i) each Party and its counsel reviewed and negotiated the terms and provisions
of this Agreement and have contributed to its revision; (ii) the rule of construction to the effect that any ambiguities are resolved
against the drafting Party shall not be employed in the interpretation of this Agreement; and (iii) the terms and provisions of
this Agreement shall be construed fairly as to all Parties hereto and not in favor of or against any Party, regardless of which
Party was generally responsible for the preparation of this Agreement.

 

11.11 Severability.
If any provision(s) of this Agreement are or become invalid, are ruled illegal by any court of competent jurisdiction or are deemed
unenforceable under then current Applicable Law from time to time in effect during the Term hereof, it is the intention of the
Parties that the remainder of this Agreement shall not be affected thereby. The Parties hereto covenant and agree to renegotiate
any such term, covenant or application thereof in good faith in order to provide a reasonably acceptable alternative to the term,
covenant or condition of this Agreement or the application thereof that is invalid, illegal or unenforceable, it being the intent
of the Parties that the basic purposes of this Agreement are to be effectuated.

 

11.12 Status.
Nothing in this Agreement is intended or shall be deemed to constitute a partner, agency, employer-employee, or joint venture relationship
between the Parties.

 

11.13 Section
365(n). All licenses granted under this Agreement are deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy
Code, licenses of right to “intellectual property” as defined in Section 101 of such Code. The Parties agree that Licensee
may fully exercise all of its rights and elections under the U.S. Bankruptcy Code, regardless of whether either Party files for
bankruptcy in the United States or other jurisdiction. The Parties further agree that, in the event Licensee elects to retain its
rights as a licensee under the U.S. Bankruptcy Code, Licensee shall be entitled to complete access to any technology licensed to
it hereunder and all embodiments of such technology.

 

    -26-

     

    

 

11.14 Export Compliance.
Licensee and its Affiliates and Sublicensees shall comply with all United States laws and regulations controlling the export
of certain commodities and technical data, including without limitation all Export Administration Regulations of the United States
Department of Commerce.

 

11.15 Further
Assurances. Each Party agrees to execute, acknowledge and deliver such further instructions, and to do all such other acts,
as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 

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

 

[Remainder of page
intentionally left blank]

 

    -27-

     

    

  

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

 

	Hoth Therapeutics, Inc.	 	Zylo Therapeutics Inc.
	 	 	 	 	 
	By:  	/s/ Robb Knie

	 	By:  	/s/ Scott Pancoast

	 	 	 	 	 
	Title:  Chief Executive Officer	 	Title:  Chief Executive OFficer

 

 

    -28-

     

    

 

Schedule A

 

Licensed Patent Rights

 

	Title	 	Country	 	Application Number	 	Filing Date	 	Status	 	Inventors
	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]

 

 

Schedule A -1-

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