Document:

Exhibit
10.1

 

OKYO
PHARMA LIMITED

 

 

 

SHARE
OPTION PLAN

WITH
NON-EMPLOYEE SUB-PLAN AND US SUB-PLAN

 

 

 

ADOPTED
BY THE BOARD ON 5 JULY 2018

 

 

COOLEY
(UK) LLP, DASHWOOD, 69 OLD BROAD STREET, LONDON EC2M 1QS, UK T: +44 (0) 20 7583 4055 F: +44 (0) 20 7785 9355 WWW.COOLEY.COM

 

    	 

     

    

 

Rules
of the OKYO Pharma Limited Share Option Plan

 

Established
by resolution of the board of directors of the Company on 5 July 2018.

 

	1.	INTERPRETATION

 

	1.1.	The
    following definitions and rules of interpretation apply in the Plan.

 

Adoption
Date: the date of the adoption of the Plan by the Company.

 

Board:
the board of directors of the Company or a committee of directors appointed by that board to carry out any of its functions under
the Plan.

 

Business
Day: a day other than a Saturday, Sunday or public holiday in England when banks in London are open for business.

 

Closed
Period: has the meaning given in Article 19(11) of the Market Abuse Regulation.

 

Company:
OKYO Pharma Limited a company incorporated in Guernsey.

 

Control:
has the meaning given in section 719 of ITEPA 2003.

 

Date
of Grant: the date on which an Option is, was, or is to be granted.

 

Dealing
Day: a day on which the London Stock Exchange is open for the transaction of business.

 

Dilutive
Shares: On any date, all shares of the Company which:

 

	 	(a)	have
    been issued on the exercise of options granted, or in satisfaction of any other awards made, under any Share Incentive Scheme (including
    the Plan) in the ten years ending on (and including) that date; and
	 	 	 
	 	(b)	remain
    capable of issue under any Existing Options.

 

Employee:
any individual who is an employee of a Group Company.

 

Employer
NICs: Any secondary class 1 (employer) NICs (or the equivalent in any jurisdiction) that any employer (or former employer) of an
Option Holder is liable to pay (or reasonably believes it is liable to pay) as a result of any Taxable Event (or which they would be
liable to pay in the absence of an election referred to in rule 9.2(b)) and which may be lawfully recovered from the Option Holder.

 

Exercise
Condition: any condition (whether relating to performance or not) set under rule 3 which either:

 

	 	(a)	must
    be met before an Option can be exercised at all; or
	 	 	 
	 	(b)	provides
    that the extent to which an Option becomes capable of exercise shall be determined by reference to performance (for example, of any
    Group Company, the Option Holder or his business unit) over a certain period measured against specified targets.

 

    	2

    	 

    

 

Exercise
Price: the price at which each Share subject to an Option may be acquired on the exercise of that Option which (subject to rule 12)
if Shares are to be newly issued to satisfy the Option may not be less than the nominal value of a Share.

 

Existing
Option: an option or any other right or award under which shares in the Company may be acquired or received, granted under any Share
Incentive Scheme (including the Plan).

 

Grantor:
the person granting an Option, which may be:

 

	 	(a)	the
    Company; or
	 	 	 
	 	(b)	the
    trustees of an employee benefit trust authorised by the Board to grant Options at the relevant time; or
	 	 	 
	 	(c)	any
    other person so authorised.

 

Group
Company: any of the following:

 

	 	(a)	the
    Company; and
	 	 	 
	 	(b)	any
    company which is a Subsidiary of the Company.

 

ITEPA
2003: the Income Tax (Earnings and Pensions) Act 2003.

 

Market
Abuse Regulation: Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse.

 

Market
Value: whichever of the following applies:

 

	 	(a)	on
    any day on which Shares are listed on the London Stock Exchange the closing price of a Share on that exchange for the immediately
    preceding Dealing Day;
	 	 	 
	 	(b)	on
    any day on which Shares are not listed on that exchange, the market value of a Share determined to the satisfaction of the Board
    in accordance with the applicable provisions of Part VIII of the Taxation of Chargeable Gains Act 1992; or
	 	 	 
	 	(c)	in
    the event of a fundraising by the Company or more than 10% of its issued share capital, the issue price for that fundraise.

 

NICs:
National Insurance contributions.

 

Option:
a right to acquire Shares granted under the Plan.

 

Option
Certificate: a certificate setting out the terms of an Option, in accordance with rule 2.3.

 

Option
Holder: an individual who holds an Option or, where applicable, his personal representatives.

 

    	3

    	 

    

 

Plan:
the employee share option plan constituted and governed by these rules, as amended from time to time.

 

Redundancy:
has the meaning given by the Employment Rights Act 1996.

 

Retirement:
ceasing employment with the intention of retiring.

 

Share
Incentive Scheme: any arrangement to provide employees or directors (or both) with shares.

 

Shares:
ordinary shares of 1 pence each in the Company (subject to rule 12).

 

Subsidiary:
a company which is a subsidiary of the Company.

 

Sufficient
Shares: the smallest number of Shares which, when sold, will produce an amount at least equal to the relevant Tax Liability (after
deduction of brokerage and any other charges or taxes on the sale).

 

Taxable
Event: any event or circumstance that gives rise to a liability for the Option Holder to pay income tax and NICs or either of them
(or their equivalents in any jurisdiction) in respect of:

 

	 	(a)	the
    Option, including its exercise, its assignment or surrender for consideration, or the receipt of any benefit in connection with it;
	 	 	 
	 	(b)	any
    Shares (or other securities or assets):

 

	 	(i)	earmarked
    or held to satisfy the Option;
	 	 	 
	 	(ii)	acquired
    on exercise of the Option;
	 	 	 
	 	(iii)	acquired
    as a result of holding the Option; or
	 	 	 
	 	(iv)	acquired
    in consideration of the assignment or surrender of the Option;

 

	 	(c)	any
    securities (or other assets) acquired or earmarked as a result of holding Shares (or other securities or assets) mentioned in (b);
    or
	 	 	 
	 	(d)	any
    amount due under PAYE in respect of securities or assets within (a) to (c) above, including any failure by the Option Holder to make
    good such an amount within the time limit specified in section 222 of the Income Tax (Earnings and Pensions) Act 2003.

 

Tax
Liability: the total of:

 

	 	(a)	any
    income tax and primary class 1 (employee) NICs (or their equivalents in any jurisdiction) for which any employer (or former employer)
    of the Option Holder is or may be liable to account (or reasonably believes it is or may be liable to account) as a result of any
    Taxable Event; and
	 	 	 
	 	(b)	any
    Employer NICs (or the equivalent in any jurisdiction) that any employer (or former employer) of the Option Holder is or may be liable
    to pay (or reasonably believes it is or may be liable to pay) as a result of any Taxable Event which can be recovered lawfully from
    the Option Holder.

 

    	4

    	 

    

 

	1.2.	Rule
    headings shall not affect the interpretation of the Plan.
	 	 
	1.3.	Unless
    the context otherwise requires, words in the singular shall include the plural and in the plural shall include the singular.
	 	 
	1.4.	Unless
    the context otherwise requires, a reference to one gender shall include a reference to the other genders.
	 	 
	1.5.	A
    reference to a statute or statutory provision is a reference to it as amended, extended or re-enacted from time to time.
	 	 
	1.6.	A
    reference to a statute or statutory provision shall include all subordinate legislation made from time to time under that statute
    or statutory provision.
	 	 
	1.7.	A
    reference to writing or written includes fax and e-mail.
	 	 
	1.8.	Any
    obligation on a party not to do something includes an obligation not to allow that thing to be done.
	 	 
	1.9.	References
    to a document in agreed form are to that document in the form agreed by the parties and initialled by or on their behalf for
    identification.
	 	 
	1.10.	A
    reference to the Plan or to any other agreement or document referred to in the Plan is a reference to the Plan or such other agreement
    or document as varied or novated (in each case, other than in breach of the provisions of the Plan) from time to time.
	 	 
	1.11.	References
    to rules are to rules of the Plan.
	 	 
	1.12.	Any
    words following the terms including, include, in particular, for example or any similar expression shall
    be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those
    terms.

 

	2.	GRANT
    OF OPTIONS
	 	 
	2.1.	Subject
    to the limitations and conditions of the Plan, any Grantor may grant an Option to any Employee it chooses during:

 

	 	(a)	the
    period of 42 days after the Adoption Date; and
	 	 	 
	 	(b)	any
    period of 42 days immediately following the end of a Close Period; and
	 	 	 
	 	(c)	any
    other period in which the Board has decided to grant an Option due to exceptional circumstances which justify such a decision.

 

    	5

    	 

    

 

	2.2.	Options
                                            may not be granted:

 

	 	(a)	at
    any time when that grant would be prohibited by, or in breach of any:

 

	 	(i)	law;
    or
	 	 	 
	 	(ii)	the
    Market Abuse Regulation or any other regulation with the force of law; or
	 	 	 
	 	(iii)	rule
    or an investment exchange on which Shares are listed or traded, or any other non-statutory rule that binds the Company or with which
    the Board has resolved to comply; or

 

	 	(b)	after
    the tenth anniversary of the Adoption Date.

 

	2.3.	An
    Option shall be granted by the Grantor executing an Option Certificate as a deed in a form approved by the Board. Each Option Certificate
    shall (without limitation):

 

	 	(a)	specify
    the Date of Grant of the Option, which shall not be earlier than the date on which the relevant Option Certificate is executed by
    the Grantor;
	 	 	 
	 	(b)	specify
    the number and class of the Shares over which the Option is granted;
	 	 	 
	 	(c)	specify
    the Exercise Price;
	 	 	 
	 	(d)	specify
    the date(s) after which the Option may be exercised, unless an earlier event described in these Rules occurs to cause the Option
    to lapse or to become exercisable (unless any such events are expressed in the Option Certificate to be specifically disapplied).
    Any such date may not be later than the tenth anniversary of the Date of Grant;
	 	 	 
	 	(e)	specify
    the date when the Option will lapse, assuming that the Option is not exercised earlier and no event described in these Rules occurs
    to cause the Option to lapse earlier (unless any such events are expressed in the Option Certificate to be disapplied). This date
    may not be:

 

	 	(i)	earlier
    than the date falling one year after the latest date specified under rule 2.3(d); or
	 	 	 
	 	(ii)	later
    than the tenth anniversary of the Date of Grant;

 

	 	(f)	specify
    any Exercise Conditions (and any restrictions on the variation or waiver of Exercise Conditions) set under rule 3;
	 	 	 
	 	(g)	include
    a statement that the Option is subject to these rules (which shall be incorporated in the Option Certificate by reference);
	 	 	 
	 	(h)	include
    the terms required by rule 9.1, rule 9.2 and rule 9.5; and
	 	 	 
	 	(i)	include
    a summary of each of the following:

 

	 	(i)	Rule
    5.1 and rule 5.2(g);
	 	 	 
	 	(ii)	Rule
    6.3;
	 	 	 
	 	(iii)	Rule
    7; and
	 	 	 
	 	(iv)	Rule
    10.

 

    	6

    	 

    

 

	2.4.	No
    amount shall be paid by an Employee for the grant of an Option.

 

	3.	EXERCISE
    CONDITIONS
	 	 
	3.1.	On
    the Date of Grant of any Option, the Grantor:

 

	 	(a)	may
    specify one or more appropriate Exercise Conditions for the Option; and
	 	 	 
	 	(b)	may
    specify, for any Exercise Condition:

 

	 	(i)	any
    restrictions that will apply to variation or waiver of that Exercise Condition under rule 3.3; or
	 	 	 
	 	(ii)	that
    there may be no such variation or waiver.

 

	3.2.	An
    Exercise Condition may be specified to apply only to part of an Option.
	 	 
	3.3.	Subject
    to any restrictions on variation or waiver specified by the Grantor under rule 3.1(b), the Board may vary or waive any Exercise Condition,
    provided that any varied Exercise Condition shall be (in the reasonable opinion of the Board):

 

	 	(a)	a
    fairer measure of performance than the original Exercise Condition, as judged at the time of the variation, if the original Exercise
    Condition relates to a measure of performance; and
	 	 	 
	 	(b)	no
    more difficult to satisfy than the original Exercise Condition was at the Date of Grant.

 

	3.4.	The
    Board shall determine whether, and to what extent, Exercise Conditions have been satisfied.
	 	 
	3.5.	If
    an Option is subject to any Exercise Condition, the Board shall notify the Option Holder (and the Grantor, if not the Company) within
    a reasonable time after the Board becomes aware of the relevant information:

 

	 	(a)	whether
    (and, if relevant, to what extent) the Exercise Condition has been satisfied; and
	 	 	 
	 	(b)	of
    any subsequent change in whether, or the extent to which, the Exercise Condition has been satisfied; and
	 	 	 
	 	(c)	when
    that Exercise Condition has become incapable of being satisfied, in whole or in part; and
	 	 	 
	 	(d)	of
    any waiver or variation of that Exercise Condition under rule 3.3.

 

    	7

    	 

    

 

	3.6.	For
    the avoidance of doubt, rule 3.3 permits the Board to make a general waiver of Exercise Conditions on the occurrence of an event
    permitting the exercise of Options under rule 11.

 

	4.	OVERALL
    LIMITS ON GRANTS
	 	 
	4.1.	No
    Option shall be granted under rule 2 if that grant would result in the total number of Dilutive Shares exceeding 15% of the issued
    share capital of the Company.

 

	5.	LAPSE
    OF OPTIONS
	 	 
	5.1.	Options
    (and any rights arising under them) may not be transferred or assigned, or have any charge or other security interest created over
    them. An Option shall lapse if the relevant Option Holder attempts to do any of those things. However, the transfer of an Option
    to an Option Holder’s personal representatives on the death of the Option Holder will not cause an Option to lapse.
	 	 
	5.2.	An
    Option shall lapse on the earliest of the following:

 

	 	(a)	any
    attempted action by the Option Holder falling within rule 5.1; or
	 	 	 
	 	(b)	when
    an Exercise Condition applying to the whole Option becomes incapable of being met, as a result of which no part of the Option can
    be exercised; or
	 	 	 
	 	(c)	the
    date on which the Option shall lapse, as specified in the Option Certificate; or
	 	 	 
	 	(d)	the
    first anniversary of the Option Holder’s death; or
	 	 	 
	 	(e)	the
    expiry of 12 months after the Option Holder ceases to be an employee of any Group Company for any reason (or the expiry of such other
    period as the Board may in its sole discretion determine, including in in relevant the Option Certificate(s));
	 	 	 
	 	(f)	if
    any part of rule 11 applies, the time specified for the lapse of the Option under that part of rule 11; or
	 	 	 
	 	(g)	when
    the Option Holder becomes bankrupt under Part IX of the Insolvency Act 1986, or applies for an interim order under Part VIII of the
    Insolvency Act 1986, or proposes or makes a voluntary arrangement under Part VIII of the Insolvency Act 1986, or takes similar steps,
    or is similarly affected, under laws of any jurisdiction that correspond to those provisions of the Insolvency Act.

 

	5.3.	Part
    of an Option shall lapse where:

 

	 	(a)	an
    Exercise Condition set for that Option has been met in such a way that the Option has become, and shall remain, exercisable only
    in part; or
	 	 	 
	 	(b)	an
    Exercise Condition set for part of that Option becomes incapable of being met, as a result of which that part of the Option cannot
    be exercised.

 

    	8

    	 

    

 

	6.	EXERCISE
    OF OPTIONS
	 	 
	6.1.	Subject
    to rule 5, the other provisions of this rule 6 and rule 11, an Option (or part of it) may be exercised at any time after the earliest
    of the following:

 

	 	(a)	the
    earliest date on which the Option (or the relevant part of it) may be exercised as set out in the Option Certificate; or
	 	 	 
	 	(b)	when
    the Option Holder ceases to be an employee of any Group Company (and does not then become or remain an employee of any other Group
    Company); or
	 	 	 
	 	(c)	the
    death of the Option Holder,

 

SAVE
THAT the extent to which an Option may be exercised will be determined by reference to the Exercise Conditions and any time vesting provisions
set out in the Option Certificate unless the Board determines otherwise.

 

	6.2.	No
    Option may be exercised when its exercise is prohibited by, or would be a breach of, the Market Abuse Regulation or any law or regulation
    with the force of law or any rule of an investment exchange on which the Shares are listed or traded, or other rule, code or set
    of guidelines (such as a personal dealing code adopted by the Company).
	 	 
	6.3.	An
    Option may only be exercised if the Option Holder has:

 

	 	(a)	confirmed
    his agreement to rule 9 in writing (this confirmation may be included in the exercise notice); and
	 	 	 
	 	(b)	made
    any arrangements, or entered into any agreements, that may be required under and are referred to in rule 9 in respect of the exercise.

 

	7.	EARLY
    EXERCISE AND EXERCISE AFTER LEAVING

 

	7.1.	If
    an Option becomes exercisable under any part of :

 

	 	(a)	Rule
    6.1 (other than rule 6.1(a)); or
	 	 	 
	 	(b)	Rule
    11,

 

before
the earliest exercise date of the Option (as specified in the Option Certificate), the maximum number of Shares (rounded up or down to
the nearest whole number) over which the Option may be exercised shall be determined as set out in the Option Certificate unless the
Board determines otherwise.

 

	8.	MANNER
    OF EXERCISE OF OPTIONS
	 	 
	8.1.	Where
    an Option is exercised in part, it shall be exercised over at least 1000 Shares or, if less, the number of Shares over which the
    Option is then exercisable.
	 	 
	8.2.	An
    Option shall be exercised by the Option Holder giving a written exercise notice to the Grantor, which:

 

    	9

    	 

    

 

	 	(a)	shall
    set out the number of Shares over which the Option Holder wishes to exercise the Option. If that number exceeds the number over which
    the Option may be validly exercised at the time:

 

	 	(i)	the
    Option shall be treated as exercised only in respect of that lesser number; and
	 	 	 
	 	(ii)	any
    excess amount paid to exercise the Option or meet any Tax Liability shall be refunded;

 

	 	(b)	include
    a power of attorney appointing the Company as the Option Holder’s agent and attorney for the purposes of rule 9.4 and rule
    9.5;
	 	 	 
	 	(c)	include
    the confirmation required by rule 6.3(a);
	 	 	 
	 	(d)	shall
    be made using a form that the Board will approve; and
	 	 	 
	 	(e)	shall
    be copied to the Company, if the Grantor is not the Company.

 

	8.3.	Any
                                            exercise notice shall be accompanied by:

 

	 	(a)	payment
    of an amount equal to the Exercise Price multiplied by the number of Shares specified in the notice, unless the Option Holder has
    entered into binding alternative arrangements to secure the payment of that amount to the Grantor which are satisfactory to the Board
    (in its absolute discretion); and
	 	 	 
	 	(b)	any
    payment required under rule 9; and/or
	 	 	 
	 	(c)	any
    documentation relating to arrangements or agreements required under rule 9.

 

	8.4.	Any
    exercise notice shall be invalid:

 

	 	(a)	to
    the extent that it is inconsistent with the Option Holder’s rights under these rules and the Option Certificate; or
	 	 	 
	 	(b)	if
    any of the requirements of rule 8.2 or rule 8.3 are not met; or
	 	 	 
	 	(c)	if
    any payment referred to in rule 8.3 is made by a cheque that is not honoured on first presentation or in any other manner which fails
    to transfer the expected value to the Grantor.

 

The
Grantor may permit the Option Holder to correct any defect referred to in rule 8.4(b) or rule 8.4(c) (but shall not be obliged to do
so). The date of any corrected exercise notice shall be the date of the correction rather than the original notice date for all other
purposes of the Plan.

 

	8.5.	Shares
    shall be allotted and issued (or transferred, as appropriate) within 30 days after a valid Option exercise, subject to the other
    rules of the Plan.

 

    	10

    	 

    

 

	8.6.	Except
    for any rights determined by reference to a date before the date of allotment, Shares allotted and issued in satisfaction of the
    exercise of an Option shall rank equally in all respects with the other shares of the same class in issue at the date of allotment.
	 	 
	8.7.	Shares
    transferred in satisfaction of the exercise of an Option shall be transferred free of any lien, charge or other security interest,
    and with all rights attaching to them, other than any rights determined by reference to a date before the date of transfer.
	 	 
	8.8.	If
    the Shares are listed or traded on any stock exchange, the Company shall apply to the appropriate body for any newly issued Shares
    allotted on exercise of an Option to be listed and/or admitted to trading on that exchange.
	 	 
	9.	TAX
    LIABILITIES
	 	 
	9.1.	Each
    Option shall include a requirement that the Option Holder irrevocably agree to:

 

	 	(a)	pay
    to the Company, his employer or former employer (as appropriate) the amount of any Tax Liability; or
	 	 	 
	 	(b)	enter
    into arrangements to the satisfaction of the Company, his employer or former employer (as appropriate) for payment of any Tax Liability.

 

	9.2.	Unless
                                            the Group Company which employs the proposed Option Holder on the relevant Date of Grant
                                            directs that it shall not, each Option shall include a requirement that the Option Holder
                                            irrevocably agree that:

 

		(a)	the
                                            Company, his employer or former employer (as appropriate) may recover the whole or any part
                                            of any Employer NICs from the Option Holder; and

 

		(b)	at
                                            the request of the Company, his employer or former employer, the Option Holder shall elect
                                            (using a form approved by HM Revenue & Customs) that the whole or any part of the liability
                                            for Employer NICs shall be transferred to the Option Holder.

 

	9.3.	An
                                            Option Holder’s employer or former employer may decide to release the Option Holder
                                            from, or not to enforce, any part of the Option Holder’s obligations in respect of
                                            Employer NICs under rule 9.1 and rule 9.2.

 

	9.4.	If
                                            an Option Holder does not fulfil his obligations under either rule 9.1(a) or rule 9.1(b)
                                            in respect of any Tax Liability arising from the exercise of an Option within seven days
                                            after the date of exercise and Shares are readily saleable at that time:

 

		(a)	the
                                            Company (if it is the Grantor) will sell Sufficient Shares on behalf of the Option Holder
                                            from the Shares which would otherwise be delivered to the Option Holder; or

 

		(b)	the
                                            Company (if it is not the Grantor) will direct the Grantor to sell on behalf of the Option
                                            Holder Sufficient Shares from the Shares which would otherwise be delivered to the Option
                                            Holder.

 

    	11

    	 

    

 

From
the net proceeds of sale of those withheld Shares, the Grantor shall pay to the Company, employer or former employer an amount equal
to the Tax Liability and shall pay any balance to the Option Holder. The Option Holder’s obligations under rule 9.1(a) and rule
9.1(b) shall not be affected by any failure of the Grantor to withhold shares under this rule 9.4.

 

	9.5.	Each
                                            Option shall include a requirement that the Option Holder irrevocably agree to enter into
                                            a joint election, under section 431(1) or section 431(2) of ITEPA 2003, in respect of the
                                            Shares to be acquired on exercise of the relevant Option, if required to do so by the Company,
                                            his employer or former employer, on or before any date of exercise of the Option.

 

	10.	RELATIONSHIP
                                            WITH EMPLOYMENT CONTRACT

 

	10.1.	The
                                            rights and obligations of any Option Holder under the terms of his office or employment with
                                            any Group Company or former Group Company shall not be affected by being an Option Holder.

 

	10.2.	The
                                            value of any benefit realised under the Plan by Option Holders shall not be taken into account
                                            in determining any pension or similar entitlements.

 

	10.3.	Option
                                            Holders and Employees shall have no rights to compensation or damages on account of any loss
                                            in respect of Options or the Plan where such loss arises (or is claimed to arise), in whole
                                            or in part, from:

 

		(a)	termination
                                            of office or employment with; or

 

		(b)	notice
                                            to terminate office or employment given by or to,

 

any
Group Company or former Group Company. This exclusion of liability shall apply however termination of office or employment, or the giving
of notice, is caused, and however compensation or damages may be claimed.

 

	10.4.	Option
                                            Holders and Employees shall have no rights to compensation or damages from any Group Company
                                            or former Group Company on account of any loss in respect of Options or the Plan where such
                                            loss arises (or is claimed to arise), in whole or in part, from:

 

		(a)	any
                                            company ceasing to be a Group Company; or

 

		(b)	the
                                            transfer of any business from a Group Company to any person which is not a Group Company.

 

This
exclusion of liability shall apply however the change of status of the relevant Group Company, or the transfer of the relevant business,
is caused, and however compensation or damages may be claimed.

 

	10.5.	An
                                            Employee shall not have any right to receive Options, whether or not he has previously been
                                            granted any.

 

    	12

    	 

    

 

	11.	TAKEOVERS
                                            AND LIQUIDATIONS

 

	11.1.	Subject
                                            to rule 11.4 and rule 11.5, if any person (in this rule 11.1, the Offeror)

 

		(a)	makes
                                            an offer to acquire the whole of the issued share capital of the Company which is made on
                                            a condition such that, if it is satisfied, the Offeror will have Control of the Company;
                                            or

 

		(b)	makes
                                            an offer to acquire all the shares in the Company which are of the same class as the Shares;
                                            or

 

		(c)	negotiates
                                            a share sale and purchase agreement with the shareholders of the Company which contemplates
                                            that the Offeror will obtain Control of the Company upon completion,

 

then
any Option may (subject to rule 11.9) be exercised within a reasonable period to be specified by the Board for that purpose and ending
immediately before the Offeror obtains Control of the Company as a result of the offer or the share sale and purchase agreement.

 

	11.2.	Subject
                                            to rule 11.4 if any person (in this rule 11.2, the Controller) obtains Control of
                                            the Company as a result of:

 

		(a)	making
                                            an offer to acquire the whole of the issued share capital of the Company which is made on
                                            a condition such that, if it is satisfied, the Controller will have Control of the Company;
                                            or

 

		(b)	making
                                            an offer to acquire all the shares in the Company which are of the same class as the Shares;
                                            or

 

		(c)	entering
                                            into a share sale and purchase agreement of the type described in rule 11.1(c),

 

then
any Option may (subject to rule 11.9) be exercised within six weeks after the time when the Controller has obtained Control of the Company
and (if relevant) any condition subject to which the offer is made has been satisfied. Any Option to which this rule 11.2 applies shall:

 

		(d)	if
                                            the Controller has offered to grant Option Holders replacement share options in consideration
                                            of the surrender of Options and either:

 

		(i)	that
                                            offer remains open for acceptance; or

 

		(ii)	the
                                            surrender and grant of share options under that offer is yet to be completed,

 

at
the end of the period for exercise under this rule 11.2, lapse when the surrender and grant of share options under that offer is completed.
Any Option to which this rule 11.2(d) applies shall not be capable of exercise under any rule of the Plan (other than rule 11.3) after
it ceases to be capable of exercise under rule 11.2; or

 

		(e)	if
                                            rule 11.2(d) does not apply, lapse at the end of the period for exercise under this rule
                                            11.2.

 

    	13

    	 

    

 

		11.3.	Subject
                                            to rule 11.4 any Option may be exercised during the period of one month commencing when any
                                            person becomes bound or entitled to acquire Shares under sections 979 to 982 of the Companies
                                            Act 2006, subject to rule 11.9. Any Option to which this rule 11.3 applies shall lapse:

 

		(a)	at
                                            the end of the period for exercise under this rule 11.3; or

 

		(b)	if
                                            later, at the time specified for the lapse of Options under rule 11.2, if it then applies.

 

		11.4.	The
                                            Board, in its discretion, may determine that any event which would trigger the exercise of
                                            Options (and, if relevant, the lapse of Options) under rule 11.1, rule 11.2 or rule 11.3
                                            shall not do so if that event takes place in the course of any corporate reconstruction or
                                            reorganisation under which the ultimate beneficial ownership of the businesses of the Group
                                            Companies will remain the same.

 

and
the arrangements for the corporate reorganisation or reconstruction include appropriate provisions for either:

 

		(a)	the
                                            replacement of Options; or

 

	 	(b)	other
compensation of Option Holders for the loss of Options,

 

which the Board, in its reasonable opinion, consider to be fair.

 

		11.5.	Unless
                                            the relevant compromise or arrangement includes appropriate provisions for:

 

		(a)	the
                                            replacement of Options; or

 

		(b)	other
                                            compensation for Option Holders for the loss of Options,

 

which
the Board, in its reasonable opinion, consider to be fair, any Option may be exercised within six weeks after any person (in this rule
11.5, the Controller) obtains Control of the Company as a result of the court sanctioning a compromise or arrangement under Part
26 and (where applicable) Part 27 of the Companies Act 2006, subject to rule 11.9. Any Option to which this rule 11.5 applies shall:

 

		(c)	if
                                            the Controller has offered to grant Option Holders replacement share options in consideration
                                            of the surrender of Options and either:

 

		(i)	that
                                            offer remains open for acceptance; or

 

		(ii)	the
                                            surrender and grant of share options under that offer is yet to be completed,

 

at
the end of the period for exercise under this rule 11.5, lapse when the surrender and grant of share options under that offer is completed.
Any Option to which this rule 11.5(c) applies shall not be capable of exercise under any rule of the Plan after it ceases to be capable
of exercise under rule 11.5; or

 

		(d)	if
                                            rule 11.5(c) does not apply, lapse at the end of the exercise period specified in this rule
                                            11.5.

 

    	14

    	 

    

 

		11.6.	In
                                            this rule 11, a person shall be deemed to have obtained Control of a company if he, and others
                                            acting with him, have obtained Control of it together.

 

		11.7.	If
                                            the shareholders of the Company receive notice of a resolution for the voluntary winding
                                            up of the Company, any Option may be exercised in the period before that resolution is withdrawn,
                                            rejected or passed.

 

		11.8.	The
                                            Board shall notify Option Holders (and Grantors other than the Company) of any event that
                                            is relevant to Options under this rule 11 within a reasonable period after the Board becomes
                                            aware of it.

 

		11.9.	In
                                            this rule 11, the extent to which an Option may be exercised will be determined by reference
                                            to the Exercise Conditions and any time vesting provisions set out in the Option Certificate
                                            unless the Board determines otherwise.

 

		11.10.	Instead
                                            of delivering the number of Shares specified in the relevant exercise notice, the relevant
                                            Grantor (at its discretion) may settle any Option exercise by:

 

		(a)	subject
                                            to the Option Holder’s consent, paying to the Option Holder (or procuring the payment
                                            to the Option Holder of) a cash amount (in this rule 10, the Cash Settlement) equal
                                            to:

 

		(i)	the
                                            current Market Value of the number of Shares over which the Option was exercised (which Market
                                            Value shall be confirmed by a share valuer appointed by the Board, who shall act as an expert,
                                            not an arbitrator, where paragraph (c) of the definition of Market Value applies), less

 

		(ii)	the
                                            total Exercise Price that would have been payable on that exercise,

 

and
refunding the amount of any payment in respect of Exercise Price (and, if necessary, any payment, or part of any payment, in respect
of any Tax Liability) made by the Option Holder.

 

		12.	VARIATION
                                            OF SHARE CAPITAL

 

If
there is any variation of the share capital of the Company (whether that variation is a capitalisation issue (other than a scrip dividend),
rights issue, consolidation, subdivision or reduction of capital or otherwise), which affects (or may affect) the value of Options to
Option Holders, the Board may adjust the number and description of Shares subject to each Option and/or the Exercise Price of each Option
in a manner which the Board, in its reasonable opinion, considers to be fair and appropriate. However:

 

    	15

    	 

    

 

		(a)	no
                                            amendment may apply to Options granted before the amendment was made by a Grantor other than
                                            the Company without the consent of that Grantor (which shall not be unreasonably withheld);

 

		(b)	the
                                            total amount payable on the exercise of any Option in full shall not be increased; and

 

		(c)	the
                                            Exercise Price for a Share to be newly issued on the exercise of any Option shall not be
                                            reduced below its nominal value (unless the Board resolves to capitalise, from reserves,
                                            an amount equal to the amount by which the total nominal value of the relevant Shares exceeds
                                            the total adjusted Exercise Price, and to apply such amount to pay-up the relevant Shares
                                            in full).

 

		13.	NOTICES

 

		13.1.	Any
                                            notice or other communication given under or in connection with the Plan shall be in writing
                                            and shall be:

 

		(a)	delivered
                                            by hand or by pre-paid first-class post or other next working day delivery service at the
                                            appropriate address;

 

For
the purposes of this rule 13 the appropriate address means:

 

		(i)	in
                                            the case of the Company, its registered office provided the notice is marked for the attention
                                            of the Company Secretary;

 

		(ii)	in
                                            the case of an Option Holder, his home address;

 

		(iii)	if
                                            the Option Holder has died, and notice of the appointment of personal representatives has
                                            been given to the Company, any contact address they have specified in such notice; and

 

		(iv)	in
                                            the case of any other Grantor, its registered office or such other address as has been notified
                                            in writing by the Grantor to the sender, provided the notice is marked for the attention
                                            of the person notified in writing to the sender.

 

		(b)	sent
                                            by fax to the fax number notified in writing by the recipient to the sender; or

 

		(c)	sent
                                            by email to the appropriate email address.

 

For
the purposes of this rule 13, appropriate email address means:

 

		(i)	in
                                            the case of the Company, the email address for the Company Secretary;

 

		(ii)	in
                                            the case of the Option Holder, if he is permitted to receive personal emails at work, his
                                            work email address; and

 

		(iii)	in
                                            the case of any other Grantor, any email address notified in writing by the Grantor to the
                                            sender.

 

    	16

    	 

    

 

		13.2.	Any
                                            notice or other communication given under this rule 13 shall be deemed to have been received:

 

		(a)	if
                                            delivered by hand, on signature of a delivery receipt, or at the time the notice is left
                                            at the proper address;

 

		(b)	if
                                            sent by pre-paid first-class post or other next working day delivery service, at 9.00am on
                                            the second Business Day after posting, or at the time recorded by the delivery service;

 

		(c)	if
                                            send by fax, at 9.00am on the next Business Day after transmission; and

 

		(d)	if
                                            sent by email, at 9.00am on the next Business Day after sending.

 

		13.3.	This
                                            rule 13 does not apply to:

 

		(a)	the
                                            service of any notice of exercise pursuant to rule 8.2; and

 

		(b)	the
                                            service of any proceedings or other documents in any legal action or, where applicable, any
                                            arbitration or other method of dispute resolution.

 

		14.	ADMINISTRATION
                                            AND AMENDMENT

 

		14.1.	The
                                            Plan shall be administered by the Board.

 

		14.2.	The
                                            Board may amend the Plan from time to time, but:

 

		(a)	no
                                            amendment may have a materially adverse effect on Options granted before the amendment was
                                            made, except that each Option Holder may consent to the application to his Option of any
                                            such amendment; and

 

		(b)	while
                                            the Shares are traded on the London Stock Exchange, no amendment may be made without the
                                            prior approval of the Company in general meeting if it would:

 

		(i)	make
                                            the terms on which Options may be granted materially more generous; or

 

		(ii)	increase
                                            any of the limits specified in rule 4; or

 

		(iii)	change
                                            the definition of Employee to expand the class of potential Option Holders; or

 

		(iv)	change
                                            rule 12 to the benefit of Option Holders,

 

unless
it is a minor amendment to benefit the administration of the Plan, to take account of a change in legislation or to obtain or maintain
favourable tax, exchange control or regulatory treatment for Option Holders or for the Company or any Group Company.

 

    	17

    	 

    

 

		14.3.	The
                                            cost of establishing and operating the Plan shall be borne by the Group Companies in proportions
                                            determined by the Board.

 

		14.4.	The
                                            Company shall ensure that at all times:

 

		(a)	if
                                            the Company has restricted the number of Shares it can issue in its articles of association,
                                            that it has sufficient unissued Shares available, taking into account any other obligations
                                            of the Company to issue Shares; and/or

 

		(b)	arrangements
                                            are in place for any third party to transfer issued Shares, to satisfy the exercise of all
                                            Options of which the Company is the Grantor.

 

		14.5.	Each
                                            Grantor other than the Company shall at all times:

 

		(a)	keep
                                            sufficient issued Shares available; and/or

 

		(b)	hold
                                            sufficient enforceable rights to subscribe for Shares, or to acquire issued Shares,

 

to
satisfy the exercise of all Options granted by that Grantor.

 

		14.6.	The
                                            Board shall determine any question of interpretation and settle any dispute arising under
                                            the Plan. In such matters, the Board’s decision shall be final.

 

		14.7.	The
                                            Company and any other Grantor shall not be obliged to notify any Option Holder if an Option
                                            is due to lapse.

 

		14.8.	The
                                            Company and any other Grantor shall not be obliged to provide Option Holders with copies
                                            of any materials sent to the holders of Shares.

 

		15.	GOVERNING
                                            LAW

 

This
agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual
disputes or claims) shall be governed by and construed in accordance with the law of England and Wales.

 

		16.	JURISDICTION

 

		16.1.	Each
                                            party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction
                                            to settle any dispute or claim arising out of or in connection with the Plan or its subject
                                            matter or formation (including non-contractual disputes or claims).

 

		16.2.	Each
                                            party irrevocably consents to any process in any legal action or proceedings under rule 16.1
                                            above being served on it in accordance with the provisions of the Plan relating to service
                                            of notices. Nothing contained in the Plan shall affect the right to serve process in any
                                            other manner permitted by law.

 

    	18

    	 

    

 

		17.	THIRD
                                            PARTY RIGHTS

 

		17.1.	A
                                            person who is not a party to an Option shall not have any rights under or in connection with
                                            it as a result of the Contracts (Rights of Third Parties) Act 1999 except where such rights
                                            arise under any rule of the Plan for any employer or former employer of the Option Holder
                                            which is not a party.

 

This
does not affect any right or remedy of a third party which exists, or is available, apart from that Act.

 

		17.2.	The
                                            rights of the parties to an Option to surrender, terminate or rescind it, or agree any variation,
                                            waiver or settlement of it, are not subject to the consent of any person that is not a party
                                            to the Option as a result of the Contracts (Rights of Third Parties) Act 1999.

 

		18.	DATA
                                            PROTECTION

 

For
the purpose of operating the Plan in the European Union, the Company will collect and process information relating to Option Holders
in accordance with the privacy notice which is provided to each Option Holder.

 

    	19

    	 

    

 

OKYO
PHARMA LIMITED

 

NON-EMPLOYEES

 

RULES
OF THE NON-EMPLOYEE SUB-PLAN TO THE OKYO PHARMA LIMITED SHARE OPTION PLAN (THE “PLAN”)

 

This
sub-plan adopted to permit the grant of options to individuals who are not employees or executive directors of the Company or any other
Group Company.

 

In
the event of any inconsistency between the rules of the Plan and the rules of the Non- Employee Sub-Plan, the rules of the Non-Employee
Sub-Plan shall take precedence.

 

		1.	DEFINITIONS

 

		1.1.	In
                                            this Non-Employee Sub-Plan, the words and expressions used in the Plan shall bear unless
                                            the context otherwise requires, the same meaning herein save to the extent the Rules in this
                                            Non-Employee Sub-Plan shall provide to the contrary.

 

		1.2.	In
                                            this Non-Employee Sub-Plan, the following words and expressions shall have the following
                                            meanings:

 

Eligible
Person: means an individual who provides advisory or consultancy services to the Company or any Group Company either directly or
through a company or other trading arrangement under a contract for the provision of services or otherwise and whether with the individual
himself or with a company or other trading arrangement, or is a non-executive director of the Company or any Group Company; and

 

Relevant
Company: the Group Company which is in relation to an Option Holder the company by which he holds office or to which he provides
advisory or consultancy services.

 

		1.3.	This
                                            Non-Employee Sub-Plan is not an employees’ share plan within the meaning of section
                                            1166 of the Companies Act 2006.

 

		2.	APPLICATION
                                            OF PLAN

 

Save
as modified in this Non-Employee Sub-Plan, all the provisions of the Plan shall be incorporated into this Non-Employee Sub-Plan as if
fully set out herein so as to be part of this Non-Employee Sub-Plan.

 

		3.	ELIGIBLE
                                            PERSON ETC

 

		3.1.	Any
                                            references in the Plan to “Employee” shall be taken for the purposes of
                                            this Non- Employee Sub-Plan to be references to “Eligible Person” as defined
                                            in paragraph 1.2 of this Non-Employee Sub-Plan.

 

		3.2.	Any
                                            reference in the Plan to “Employer” shall be taken for the purposes of
                                            this Non- Employee Sub-Plan to be references to “Relevant Company” as
                                            defined in paragraph 1.2
of this Non-Employee Sub-Plan.

 

    	20

    	 

    

 

		3.3.	Rule
                                            5.2(e) of the Plan shall be removed and replaced for the purposes of this Non- Employee Sub-Plan
                                            by the following:

 

(e)
the expiry of 3 months after the Option Holder ceases to provide advisory or consulting services to or be a non-executive director of
any Group Company for any reason (or the expiry of such other period as the Board may in its sole discretion determine, including in
in relevant the Option Certificate(s));

 

		3.4.	Rule
                                            6.1 of the Plan shall be removed and replaced for the purposes of this Non- Employee Sub-Plan
                                            by the following:

 

		6.	EXERCISE
                                            OF OPTIONS

 

		6.1	Subject
                                            to rule 5, the other provisions of this rule 6 and rule 11, an Option (or part of it) may
                                            be exercised at any time after the earliest of the following:

 

		(a)	the
                                            earliest date on which the Option (or the relevant part of it) may be exercised as set out
                                            in the Option Certificate; or

 

		(b)	when
                                            the Option Holder ceases to provide advisory or consulting services to any Group Company
                                            (and does not then become or remain an advisor or consultant of any other Group Company);
                                            or

 

		(c)	the
                                            death of the Option Holder.

 

		3.5.	Rule
                                            10 of the Plan shall be removed and replaced for the purposes of this Non- Employee Sub-Plan
                                            by the following:

 

		10.	RELATIONSHIP
                                            WITH CONTRACT FOR SERVICES

 

		10.1	The
                                            rights and obligations of any Option Holder under the terms of his contract for the provision
                                            of services with any Group Company or former Group Company shall not be affected by being
                                            an Option Holder.

 

		10.2	The
                                            value of any benefit realised under the Plan by Option Holders shall not be taken into account
                                            in determining any pension or similar entitlements.

 

		10.3	Option
                                            Holders and Eligible Persons shall have no rights to compensation or damages on account of
                                            any loss in respect of Options or the Plan where such loss arises (or is claimed to arise),
                                            in whole or in part, from:

 

		(a)	termination
                                            of provisions of services; or

 

		(b)	notice
                                            to terminate provisions of services by or to,

 

any
Group Company or former Group Company. This exclusion of liability shall apply however termination of contract for the provision of,
or the giving of notice, is caused, and however compensation or damages may be claimed.

 

    	21

    	 

    

 

		10.4	Option
                                            Holders and Eligible Persons shall have no rights to compensation or damages from any Group
                                            Company or former Group Company on account of any loss in respect of Options or the Plan
                                            where such loss arises (or is claimed to arise), in whole or in part, from:

 

		(c)	any
                                            company ceasing to be a Group Company; or

 

		(d)	the
                                            transfer of any business from a Group Company to any person which is not a Group Company.

 

This
exclusion of liability shall apply however the change of status of the relevant Group Company, or the transfer of the relevant business,
is caused, and however compensation or damages may be claimed.

 

		10.5	An
                                            Eligible Person shall not have any right to receive Options, whether or not he has previously
                                            been granted any.

 

		4.	GOVERNING
                                            LAW AND JURISDICTION

 

		4.1.	The
                                            formation, existence, construction, performance, validity and all aspects whatsoever of this
                                            Non-Employee Sub-Plan, any term of this Non-Employee Sub- Plan and any Option granted under
                                            it shall be governed by and construed in accordance with the law of England and Wales.

 

		4.2.	The
                                            courts of England and Wales shall have jurisdiction to settle any dispute which may arise
                                            out of, or in connection with, this Non-Employee Sub-Plan.

 

    	22

    	 

    

 

OKYO
PHARMA LIMITED

 

US
RESIDENTS

 

RULES
OF THE US SUB-PLAN TO THE OKYO PHARMA LIMITED

SHARE OPTION PLAN (THE “PLAN”)

 

This
plan together with the California supplement (the “US Sub-Plan”) is a sub-plan adopted to permit the grant of options
to US residents and US taxpayers (each, a “US Participant”).

 

In
the event of any inconsistency between the rules of the Plan (and Non-Employee Sub- Plan) and the rules of the US Sub-Plan, the rules
of the US Sub-Plan shall take precedence.

 

		1.	DEFINITIONS

 

In
this US Sub-Plan, the words and expressions used in the Plan (and Non-Employee Sub- Plan) shall bear, unless the context otherwise requires,
the same meaning herein save to the extent the Rules in this US Sub-Plan shall provide to the contrary.

 

		2.	APPLICATION
                                            OF PLAN

 

Save
as modified in this US Sub-Plan, all the provisions of the Plan shall be incorporated into this US Sub-Plan as if fully set out herein
so as to be part of this US Sub-Plan.

 

		3.	LIMIT

 

The
number of Shares which may be subject to Options under this US Sub-Plan is 7,100,303 (which number shall be the maximum number of Shares
that may be granted as Options designated as Incentive Stock Options (as hereinafter defined)). No Option shall be granted under the
US Sub Plan unless there shall be sufficient Shares remaining available for issuance under the US Sub Plan pursuant to this Section 3
or the Board shall have approved such an increase in the Shares available for issuance under the US sub Plan subject to Shareholder approval.

 

		4.	EFFECTIVE
                                            DATE AND TERM OF US SUB-PLAN

 

This
US Sub-Plan shall become effective on the date on which it is adopted by the Board. No Option shall be granted under this US Sub-Plan
after the completion of 10 years from the earlier of (i) the date on which this US Sub-Plan was adopted by the Board, or (ii) the date
this US Sub-Plan was approved by the Company’s shareholders, but Options previously granted under this US Sub-Plan may extend beyond
that date.

 

		5.	AMENDMENTS

 

The
Board may amend, suspend or terminate this US Sub-Plan or any portion thereof at any time. No amendment, suspension or termination of
the US Sub-Plan may materially adversely affect any Options granted previously to any US Participant without the consent of the US Participant.

 

    	23

    	 

    

 

		6.	COMPLIANCE
                                            WITH CODE SECTION 409A

 

Unless
otherwise set forth in an applicable Option agreement, the terms applicable to Options granted under the Plan subject to this US Sub-Plan
will be interpreted to the greatest extent possible in a manner that makes the Options exempt from Section 409A of the Internal Revenue
Code of 1986, as amended, and any regulations promulgated thereunder (the “Code”), and, to the extent not so exempt,
that brings the Options into compliance with Section 409A of the Code. Notwithstanding anything to the contrary in the Plan (and unless
any Option agreement governing the Option specifically provides otherwise), if the Shares are publicly traded, and if an Option Holder
of an Option that constitutes “deferred compensation” under Section 409A of the Code is a “specified employee”
under Section 409A of the Code, no distribution or payment of any amount that is due because of a “separation from service”
(as defined in Section 409A of the Code without regard to alternative definitions thereunder) will be issued or paid before the date
that is six (6) months following the date of such Option Holder’s “separation from service” or, if earlier, the date
of the Option Holder’s death, unless such distribution or payment can be made in a manner that complies with Section 409A of the
Code, and any amounts so deferred will be paid in a lump sum on the day after such six (6) month period elapses, with the balance paid
thereafter on the original schedule. The Company shall have no liability to an Option Holder, or any other party, if an Option that is
intended to be exempt from, or compliant with, Section 409A of the Code is not so exempt or compliant or for any action taken by the
Board.

 

		7.	NO
                                            RIGHT TO EMPLOYMENT OR OTHER STATUS

 

No
person shall have any claim or right to be granted an Option under this US Sub-Plan, and the grant of an Option shall not be construed
as giving an Option Holder the right to continued employment or any other relationship with any company within the Group.

 

		8.	AMENDMENT
                                            OF OPTIONS

 

The
Board may amend, modify or terminate any outstanding Option, including but not limited to, substituting therefor another Option of the
same or different type, changing the date of exercise or realization, and converting an Incentive Stock Option to a Nonstatutory Stock
Option, provided that the Option Holder’s consent to such action shall be required unless the Board determine that the action,
taking into account any related action, would not materially and adversely affect the Option Holder.

 

		9.	ELIGIBILITY
                                            LIMITATIONS FOR GRANTS TO ELIGIBLE PERSONS

 

An
Eligible Person (as defined in the Non-Employee Subplan) that is a US Participant is not eligible for the grant of an Option if, at the
time of grant, either the offer or sale of the Company’s securities to such Eligible Person is not exempt under Rule 701 of the
Securities Act of 1933, as amended (the “Securities Act”) because the Eligible Person is not a natural person, the services
that the Eligible Person is providing to the Company or any Group Company are in connection with a capital raising transaction or directly
or indirectly serve to promote or maintain a market for the Company’s securities, or because of any other provision of Rule 701
of the Securities Act, unless the Company determines that such grant need not comply with the requirements of Rule 701 of the Securities
Act and will satisfy another exemption under the Securities Act as well as comply with the securities laws of the US state of residence
of the Eligible Person and all other applicable jurisdictions. Any Option granted to an Eligible Person that is a US Participant will
be a Nonstatutory Stock Option (as hereinafter defined).

 

    	24

    	 

    

 

		10.	CONDITIONS
                                            ON DELIVERY OF SHARES

 

The
Company will not be obligated to deliver any Shares pursuant to this US Sub-Plan or to remove restrictions from Shares previously delivered
under this US Sub-Plan until:

 

		10.1.	all
                                            conditions of the Option have been met or removed to the satisfaction of the Company,

 

		10.2.	in
                                            the opinion of the Company’s counsel, all other legal matters in connection with the
                                            issue, allotment and delivery of such shares have been satisfied, including any applicable
                                            securities laws and any applicable stock exchange or stock market rules and regulations,
                                            and

 

		10.3.	the
                                            Option Holder has executed and delivered to the Company such representations or agreements
                                            as the Company may consider appropriate to satisfy the requirements of any applicable laws,
                                            rules or regulations.

 

		11.	GRANT
                                            OF OPTIONS

 

		11.1.	An
                                            Option which is not intended to be an Incentive Stock Option (as hereinafter defined) shall
                                            be designated a “Nonstatutory Stock Option”.

 

		11.2.	The
                                            Exercise Price of (a) an Option intended to be an Incentive Stock Option and (b) any Non-statutory
                                            Stock Option granted to a US Participant shall be not less than 100% of the Fair Market Value
                                            (as hereinafter defined) of a Share on the date on which the Option is granted (which shall
                                            be determined by the Board and shall not be less than the nominal value of a Share) unless,
                                            in the case of (b) such Option is structured to comply with Section 409A of the Code.

 

		11.3.	An
                                            Option that the Board intends to be an “incentive stock option” as defined in
                                            Section 422 of the Code (an “Incentive Stock Option”) shall only be granted
                                            to Employees who are also employees of the Company, any of the Company’s present or
                                            future parent or subsidiary corporations as defined in Sections 424(e) or (f) of the Code,
                                            and any other entities the employees of which are eligible to receive Incentive Stock Options
                                            under the Code, and shall be subject to and shall be construed consistently with the requirements
                                            of Section 422 of the Code. The Board or corporate action approving the grant of an Option
                                            intended to be an Incentive Stock Option must specify that the Option is intended to be an
                                            Incentive Stock Option. If an Option is not specifically designated as an Incentive Stock
                                            Option, or if an Option is designated as an Incentive Stock Option but some portion or all
                                            of the Option fails to qualify as an Incentive Stock Option under the applicable rules, then
                                            the Option (or portion thereof) will be a Nonstatutory Stock Option. The Company shall have
                                            no liability to an Option Holder, or any other party, if an Option (or any part thereof)
                                            that is intended to be an Incentive Stock Option is not an Incentive Stock Option or for
                                            any action taken by the Board to amend, modify or terminate the rules of the Plan, this US
                                            Sub-Plan or any Option, including without limitation the conversion of an Incentive Stock
                                            Option to a Nonstatutory Stock Option.

 

    	25

    	 

    

 

		11.4.	As
                                            provided by Section 422(b)(5) of the Code, an Incentive Stock Option will not be transferable
                                            except by will or by the laws of descent and distribution, and will be exercisable during
                                            the lifetime of the US Participant only by the US Participant. If the Board elects to allow
                                            the transfer of an Option by a US Participant that is designated as an Incentive Stock Option,
                                            such transferred Option will automatically become a Nonstatutory Stock Option. As provided
                                            by Section 422(c)(5) of the Code, a person who owns more than 10% of the total combined voting
                                            power of all classes of outstanding stock of the Company or any Group Company will not be
                                            eligible for the grant of an Incentive Stock Option unless (i) the exercise price
                                            is at least 110% of the Fair Market Value of a Share on the date of grant and (ii) such Incentive
                                            Stock Option by its terms is not exercisable after the expiration of five (5) years from
                                            the date of grant. The attribution rules of Section 424(d) of the Code will be applied in
                                            determining stock ownership. As provided by Section 422(d) of the Code and applicable regulations
                                            thereunder, to the extent that the aggregate Fair Market Value (determined at the time of
                                            grant) of Shares with respect to which Incentive Stock Options are exercisable for the first
                                            time by any US Participant during any calendar year (under all plans of the Company and any
                                            Group Company) exceeds US$100,000 (or such other limit established in the Code) or otherwise
                                            does not comply with the rules governing Incentive Stock Options, the Options or portions
                                            thereof that exceed such limit (according to the order in which they were granted) or otherwise
                                            do not comply with such rules will be treated as Nonstatutory Stock Options. To obtain the
                                            US federal income tax advantages associated with an Incentive Stock Option, the US Internal
                                            Revenue Code requires that at all times beginning on the date of grant and ending on the
                                            day three (3) months before the date of exercise of the Option, the Option Holder must be
                                            an employee of the Company or a Group Company (except in the event of the Option Holder’s
                                            death or disability, in which case longer periods may apply).

 

		11.5.	Notwithstanding
                                            Rule 5.1 of the Plan, where an Option Holder ceases to be an Employee or Eligible Person
                                            by reason of his death his Option will be capable of transfer in accordance with the Option
                                            Holder’s will, or the laws of decent and distribution. Subject to the approval of the
                                            Board or a duly authorized officer of the Company, an Option Holder may, by delivering written
                                            notice to the Company, in a form approved by the Company, designate a third party who, on
                                            the death of the Option Holder, will thereafter be entitled to exercise the Option and receive
                                            the Shares or other consideration resulting from such exercise. In the absence of such a
                                            designation, upon the death of the Option Holder, the executor or administrator of the Option
                                            Holder’s estate will be entitled to exercise the Option and receive the Shares or other
                                            consideration resulting from such exercise. However, the Company may prohibit designation
                                            of a beneficiary at any time, including due to any conclusion by the Company that such designation
                                            would be inconsistent with the provisions of applicable laws. In addition, notwithstanding
                                            Rule 5.1 of the Plan, subject to approval of the Board or a duly authorized officer of the
                                            Company, an Option may be transferred by an Option Holder pursuant to the terms of a domestic
                                            relations order, official marital settlement agreement or other divorce or separation instrument
                                            as permitted by Treasury Regulations Section 1.421-1(b)(2); provided that if an Option is
                                            an Incentive Stock Option, such Option will be deemed to be a Nonstatutory Stock Option as
                                            a result of such transfer.

 

    	26

    	 

    

 

		11.6.	Shares
                                            purchased upon the exercise of an Option granted under this US Sub-Plan shall be paid for
                                            as follows:

 

		(a)	in
                                            cash or by check, payable to the order of the Company;

 

		(b)	except
                                            as may otherwise be provided in the applicable Option agreement, by:

 

		(i)	delivery
                                            of an irrevocable and unconditional undertaking by a creditworthy broker to deliver promptly
                                            to the Company sufficient funds to pay the exercise price and any required tax withholding;
                                            or

 

		(ii)	delivery
                                            by the Option Holder to the Company of a copy of irrevocable and unconditional instructions
                                            to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to
                                            pay the exercise price and any required tax withholding;

 

		(c)	to
                                            the extent provided for in the applicable Option agreement or approved by the Board, in its
                                            sole discretion, by delivery (either by actual delivery or attestation) of shares in the
                                            capital of the Company owned by the Option Holder valued at their fair market value as determined
                                            by (or in a manner approved by) the Board (“Fair Market Value”), provided:

 

		(i)	such
                                            method of payment is then permitted under applicable law;

 

		(ii)	such
                                            shares, if acquired directly from the Company, were owned by the Option Holder for such minimum
                                            period of time, if any, as may be established by the Board in its discretion; and

 

		(iii)	such
                                            shares are not subject to any repurchase, forfeiture, unfulfilled vesting or other similar
                                            requirements;

 

		(d)	to
                                            the extent permitted by applicable law and provided for in the applicable Option agreement
                                            or approved by the Board, in its sole discretion, by:

 

		(i)	delivery
                                            of a promissory note of the Option Holder to the Company on terms determined by the Board,
                                            or

 

		(ii)	payment
                                            of such other lawful consideration as the Board may determine; or

 

		(e)	by
                                            any combination of the above permitted forms of payment.

 

    	27

    	 

    

 

		12.	EXERCISE
                                            RESTRICTION FOR NON-EXEMPT EMPLOYEES

 

If
an Option Holder is an employee that is eligible for overtime compensation under the US Fair Labor Standards Act of 1938, as amended
(that is, the Option Holder is designated as a “non-exempt employee”), then notwithstanding the vesting schedule contained
in the Option, the Option Holder may not exercise his or her Option until the Option Holder has completed at least six (6) months of
Continuous Service measured from the date of grant, even if the Option Holder has already been an employee for more than six (6) months.
Consistent with the provisions of the U.S. Worker Economic Opportunity Act, the Option Holder may exercise his or her Option as to any
vested portion prior to such six (6) month anniversary in the case of (i) the Option Holder’s death or the Option Holder becoming
disabled (within the meaning of Section 22(e)(3) of the Code), (ii) an Offeror obtains Control of the Company pursuant to Rule 11 in
connection with which the Option is not assumed or continued, or (iii) the termination of the Option Holder’s Continuous Service
on his or her Retirement. For purposes of this Rule 12, “Continuous Service” means that the Option Holder’s service
with the Company or any Group Company, whether as an Employee or Eligible Person, is not interrupted or terminated and the Option Holder
remains an Employee or Eligible Person. A change in the capacity in which the Option Holder renders service to the Company or a Group
Company as an Employee or Eligible Person or a change in the entity for which the Option Holder renders such service, will not cause
the Option Holder to cease to be an Employee or Eligible Person provided that there is no interruption or termination of the Option Holder’s
service with the Company or Group Company. To the extent permitted by law, the Board or the chief executive officer of the Company, in
that party’s sole discretion, may determine whether Continuous Service will be considered interrupted in the case of (i) any leave
of absence approved by the Board or chief executive officer, including sick leave, military leave or any other personal leave, or (ii)
transfers between the Company, a Group Company or their successors.

 

		13.	EXERCISE
                                            OF OPTIONS IN SPECIAL CIRCUMSTANCES

 

If
an Option Holder dies or becomes disabled (within the meaning of Section 22(e)(3) of the Code) before the tenth anniversary of the Date
of Grant, the provisions of Rules 5.2(d), 5.2(e) and 6.1 of the Plan shall not apply for the purposes of this US Sub-Plan. Instead, in
such circumstances, Options may be exercised for a period of 18 months following the date of death or 12 months following the date of
disability, but in no event later than the tenth anniversary of the relevant Date of Grant.

 

		14.	DISQUALIFYING
                                            DISPOSITION

 

If
the Option Holder disposes of Shares acquired upon exercise of an Incentive Stock Option within two years from the Date of Grant or one
year after such Shares were acquired pursuant to exercise of such Option, the Option Holder shall notify the Company in writing of such
disposition.

 

		15.	ADJUSTMENTS

 

In
the event of any variation of the share capital of the Company by way of capitalization or rights issue, or sub-division, consolidation
or reduction or any other variation in the share capital of the Company after the Date of Grant of any Option: (i) the number or amount
of Shares that are the subject of an Option; (ii) the relative price at which Shares may be acquired by the exercise of an Option; and
(iii) the limit on Options set forth in Section 3 hereof must be adjusted proportionately; PROVIDED THAT the price at which Shares may
be acquired by the exercise of the Option is not reduced below the nominal value of a Share.

 

		16.	NO
                                            OBLIGATION TO NOTIFY OR MINIMIZE TAXES

 

The
Company will have no duty or obligation to an Option Holder to advise such holder as to the time or manner of exercising the Option.
Furthermore, the Company will have no duty or obligation to warn or otherwise advise such holder of a pending termination or expiration
of an Option or a possible period in which the Option may not be exercised. The Company has no duty or obligation to minimize the tax
consequences of an Option to the Option Holder.

 

		17.	GOVERNING
                                            LAW AND JURISDICTION

 

		17.1.	The
                                            formation, existence, construction, performance, validity and all aspects whatsoever of this
                                            US Sub-Plan, any term of this US Sub-Plan and any Option granted under it shall be governed
                                            by and construed in accordance with the law of England and Wales.

 

		17.2.	The
                                            courts of England and Wales shall have jurisdiction to settle any dispute which may arise
                                            out of, or in connection with, this US Sub-Plan.

 

    	28

    	 

    

 

CALIFORNIA
SUPPLEMENT

 

The
Board has adopted this supplement for purposes of satisfying the requirements of Section 25102(o) of the California Law:

 

Any
Options granted under the US Sub-Plan to the Plan to an Option Holder who is a resident of the State of California on the date of grant
(a “California Option Holder”) shall be subject to the following additional limitations, terms and conditions:

 

		1.	ADDITIONAL
                                            LIMITATIONS ON OPTIONS.

 

		1.1.	Maximum
                                            Duration of Options. No Options granted to California Option Holders shall have a term
                                            in excess of 120 months measured from the Date of Grant.

 

		1.2.	Minimum
                                            Exercise Period Following Termination. Unless a California Option Holder’s employment
                                            is terminated for cause (as defined by applicable law, the terms of any contract of employment
                                            between the Company and such Option Holder, or in the instrument evidencing the grant of
                                            such Option Holder’s Option), in the event of termination of employment of such Option
                                            Holder, such Option Holder shall have the right to exercise an Option, to the extent that
                                            he or she was otherwise entitled to exercise such Option on the date employment terminated,
                                            until the earlier of: (i) at least six months from the date of termination, if termination
                                            was caused by such Option Holder’s death or “permanent and total disability”
                                            (within the meaning of Section 22(e)(3) of the Code), (ii) at least 30 days from the date
                                            of termination, if termination was caused other than by such Option Holder’s death
                                            or “permanent and total disability” (within the meaning of Section 22(e)(3) of
                                            the Code) and (iii) the Option expiration date.

 

		2.	ADDITIONAL
                                            LIMITATIONS ON TIMING OF AWARDS.

 

No
Option granted to a California Option Holder shall become exercisable, vested or realizable, as applicable to such Option, unless the
US Sub-Plan has been approved by the holders of a majority of the Company’s outstanding voting securities by the later of (i) within
12 months before or after the date the US Sub-Plan was adopted by the Board or (ii) prior to or within 12 months of the granting of any
Option to a California Option Holder.

 

    	29Exhibit
10.3

 

Dated
June 4,              2018

 

(1)
ON TARGET THERAPEUTICS, LLC

 

-
and -

 

(2)
OKYO PHARMA LIMITED

 

 

 

 

COLLABORATION
AGREEMENT

FOR
THE PROPOSED “CHEMERIN” PROGRAM

 

 

 

 

COOLEY
(UK) LLP, DASHWOOD, 69 OLD BROAD STREET, LONDON EC2M 1QS, UK T: +44 (0) 20 7583 4055 F: +44 (0) 20 7785 9355 WWW.COOLEY.COM

 

    	 

    	 

    

 

THIS
AGREEMENT is made June 4, 2018

 

BETWEEN:

 

	(1)	ON
    TARGET THERAPEUTICS LLC, a limited liability company organized under the laws of Delaware whose place of business is at 15 Wynnewood
    Road, Wellesley, MA 02481 (“On Target” ); and
	 	 
	(2)	OKYO
    PHARMA LIMITED, a limited company incorporated and registered in Guernsey whose registered office is at[·] (“OKYO”).

 

INTRODUCTION:

 

	(A)	Dr.
    Alan Kopin and Dr. Benjamin Harwood are associated with On Target.
	 	 
	 	 
	(B)	OKYO
    has taken an assignment of a licence and sub-licence, originally granted by On Target and Tufts Medical Center, Inc. (the “Licence
    and Sub-Licence”) of certain intellectual property rights detailed in the Licence and Sub-Licence agreement (the “Licence
    and Sub-Licence Agreement” ).
	 	 
	(C)	On
    Target and OKYO wish to enter into this Agreement which shall set out the terms (including financial terms) on which On Target shall
    provide assistance and research services to OKYO to develop the subject matter of the Licence and Sub-Licence and to carry out ancillary
    research.
	 	 
	(D)	This
    Agreement sets out the terms on which On Target shall execute and/or supervise the Research Plan (as defined below) .
	 	 
	(E)	On
    Target is party to this Agreement for the purposes of waiving any rights to Arising Project IP.

 

IT
IS AGREED AS FOLLOWS:

 

	1.	DEFINITIONS
    AND INTERPRETATION

 

 

In
this Agreement, unless the context otherwise the following definitions shall apply:

 

 

	“Affiliate”	of
    a person means a person, corporation, partnership or other entity, that Controls, is Controlled by, or is under common Control with
    such person (and for the purposes of this definition, “Control” and “Controlled” shall be construed
    solely by reference to sub-paragraph (a) of the definition of “Control”);

 

    	2

    	 

    

 

	“Agreement”	means
    this document, including its Schedules;
	 	 
	“Arising
    IP”	means,
    collectively, Arising General IP and Arising Project IP;
	 	 
	“Arising
    General IP”	means
                                            all Intellectual Property Rights generated, discovered, conceived, originated, derived or
                                            developed in the course of the activities undertaken in the performance of the Research Plan
                                            that are not specific to particular chemerin analogs that are the subject of the Research
                                            Plan, excluding for the avoidance of doubt all On Target Background Rights;

	 	 
	“Arising
                                            Project IP”

     
	means
                                            all Intellectual Property Rights generated, discovered, conceived, originated, derived or
                                            developed in the course of the activities undertaken in the performance of the Research Plan,
                                            including any Intellectual Property Rights created pursuant to this Agreement and the Research
                                            Plan but excluding for the avoidance of doubt (i) all On Target Background Rights and (ii)
                                            all Arising General IP;

	 	 
	“Confidential
                                            Information”

     
	means
                                            confidential and proprietary information and materials, patentable or otherwise, whether
                                            disclosed in tangible or intangible form, marked or stated to be “Confidential”
                                            or “Proprietary” (or word of similar import), or which would, in the normal course
                                            of business, or by the nature of the subject matter and/or the manner of its disclosure,
                                            be considered as being confidential or proprietary, that is disclosed by one Party {the “Disclosing
                                            Party” ) to another Party (the “ Receiving Party”), including:

 

	 	a)	information
                                            relating to the business, affairs, customers, clients, suppliers, plans, intentions, or market
                                            opportunities of the Disclosing Party or of the Disclosing Party’s group or its suppliers;

     

	 	b)	the
    terms of this Agreement; and
	 	c)	any
    materials and/or Know-How generated in connection with the performance of this Agreement.

 

    	3

    	 

    

 

	“Control”	means:

 

	 	(a)	with
    respect to any individual, legal entity, trust or joint venture the direct or indirect ownership or possession of: (i) the power
    to direct or cause the direction of the management and policies of a company or entity whether through the ownership of voting securities,
    by contract or otherwise; or (ii) more than fifty per cent (50%) (in the aggregate) of the voting power of all outstanding shares
    entitled to vote at a general meeting of a company or entity; or
	 	 	 
	 	(b)	with
                                            respect to any Material, item of information, or Intellectual Property Right, the possession,
                                            whether by ownership or licence, of the right to grant a licence or sub licence with respect
                                            thereto or to disclose relevant information relating thereto, without breaching any prior
                                            written obligation to any Third Party,

                                                                              

	 	 	 
	 	and
    “Controlled” shall be construed accordingly;

 

	“Effective
    Date”	means
    the date written at the start of this Agreement;
	 	 
	“Intellectual
    Property Rights”	means
    any and all inventions, Patents, utility models, registered designs, unregistered design rights, copyright, database rights, trademarks,
    trade names, rights in respect of Confidential Information, rights under data exclusivity Law, rights under orphan drug Law, Know-How,
    extensions of the terms of any such rights (including supplementary protection certificates), registrations and/or applications for
    and the right to apply for any of the foregoing, and similar or analogous rights, anywhere in the world;
	 	 
	 	 
	“Know-How”	means
    unpatented technical and other information in written tangible form which is not in the public domain including information comprising
    or relating to concepts, discoveries, data, designs, formulae, ideas, inventions, methods, models, assays, research plans, procedures,
    designs for experiments and tests and results of experimentation and testing (including results of research or development) processes
    (including manufacturing process, specifications and techniques), laboratory records, specifications, drawings, manuals, information,
    methods and processes for synthesis thereof, chemical compounds including derivatives, analogues and precursors, instrumentation,
    procedures for experiments and tests and results of experimentation and testing, chemical, pharmacological, toxicological, clinical,
    analytical and quality control data, trial data, case report forms, data analyses, report or summaries and information contained
    in submissions to and information from ethical committees and regulatory authorities and the fact that an item is known to the public
    shall not be taken to exclude the fact that a compilation including the item, and/or a development relating to the item, is (and
    remains) not known to the public;

 

    	4

    	 

    

 

	“Law”	means
    any law, statute, constitution, principle of common law, ordinance, code, permit, rule, regulation, policy, guideline, ruling or
    requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any governmental
    entity or securities exchange or securities quotation system, and any orders, writs, injunctions, binding awards of a court or arbitrator,
    judgments and decrees;
	 	 
	“Materials”	means,
    reagents, compounds, biopharmaceutical, biological and/or any other chemical materials and “Material” shall be
    construed accordingly;
	 	 
	“OKYO
    Science Adviser”	means
    Dr. Kunwar Shailubhai or another individual, reasonably acceptable to On Target, then serving as a science adviser to OKYO;
	 	 
	“On
    Target Background Rights” 	means
    (i) the Patents and Know-How which are the subject of the Licence and Sub-Licence which has been assigned to OKYO, and (ii) all other
    Intellectual Property Rights owned or Controlled by On Target that (x) were generated, discovered, conceived, originated, derived
    or developed, or licensed or otherwise acquired, by On Target prior to the Effective Date, and/or (y) are generated, discovered,
    conceived, originated, derived or developed, or licensed or otherwise acquired, by On Target on or after the Effective Date other
    than in the course of activities comprising the Research Plan;

 

    	5

    	 

    

 

	“Parties”	means
    On Target and OKYO and” Party” means any of them;
	 	 
	“Patents”	means
    patents and patent applications and all substitutions, divisions, continuations, continuations-in-part, any patent issued with respect
    to any such patent applications (including certificates of invention), any reissue, re-examination, utility models or designs, renewal
    or extension of any such patent, any term extension, a supplementary protection certificate and any confirmation patent or registration
    patent or patent of addition based on any such patent, and all counterparts and patents and patent applications based on, corresponding
    to or claiming the priority date thereof in any country;
	 	 
	“Phase
                                            1”
	phase
    1 of the Development Plan as set out in Schedule 1; 
	 	 
	“Phase
                                            2”
	phase
                                            2 of the Development Plan as set out in Schedule 1;

	 	 
	“Phase
                                            1 Report”
	a
                                            report on the research and findings in respect of activities carried out in Phase 1;

	 	 
	“Phase
                                            2 Report”
	a
                                            report on the research and findings in respect of activities carried out in Phase 2;

	 	 
	“Research
                                            Plan”
	means
                                            the work plan as set out in Schedule 1 or as otherwise agreed and identified by the Parties
                                            in writing;

    

	 	 
	“Term”	has
    the meaning given to it in Clause 8.1; and
	 	 
	“Third
                                            Party”
	means
                                            any entity other than a Party or its Affiliates.

 

	2.	APPOINTMENT
	 	 
	2.1.	On
    Target undertakes to perform the activities set out in the Research Plan and shall perform such work in accordance with the terms
    of this Agreement.
	 	 
	2.2.	On
    Target may engage a subcontractor to carry out any activities assigned to it provided that:
	 	 	 
	 	2.2.1	any
    subcontractor is made aware of the obligations of the subcontracting Party to the other Party under this Agreement; and
	 	 	 
	 	2.2.2	On
    Target shall ensure that the activities carried out are performed under the supervision of Dr. Alan Kopin and Dr. Benjamin Harwood.
	 	 
	2.3.	On
    Target shall at all times while undertaking the activities set out in the Research Plan:
	 	 
	 	2.3.1	perform
    such activities in a timely, diligent and professional manner using its reasonable efforts;

 

    	6

    	 

    

 

	 	2.3.2

     
	to
    conduct all research in accordance with industry standard laboratory practices at all times (it being understood and agreed, for
    the avoidance of doubt, that the research is not required to be GLP-compliant);
	 	 	 
	 	2.3.3	comply
    with all applicable Laws, regulations and guidelines in the performance of its obligations under this Agreement;
	 	 	 
	 	2.3.4	keep
    a detailed record of all things done in relation to its performance of its obligations under the Research Plan and provide OKYO with
    a Phase 1 Report after Phase 1 is completed and a Phase 2 Report after Phase 2 is completed; and
	 	 	 
	 	2.3.5	be
    reasonably available, on a quarterly basis, to report to the board of directors of OKYO or any scientific advisory board established
    by OKYO in respect of the Phase 1 Report and the Phase 2 Report to take questions and engage in discussions relating to the same.
	 	 
	3.	REVIEW
	 	 
	3.1.	Within
    thirty (30) days from the date of receipt by OKYO of the Phase 1 Report OKYO shall determine, by written notice to On Target (the
    “Phase 2 Election Notice”), whether to enter into Phase 2.
	 	 
	4.	TRANSFER
    OF MATERIALS
	 	 
	4.1.	From
    time to time during the Term, the Parties may supply each other with Materials as set out in Schedule 2 or as otherwise agreed by
    the Parties in writing. In such circumstances:
	 	 	 
	 	4.1.1	such
    transfer shall be recorded using the material transfer record form set out in Schedule 2, which the transferor shall complete and
    submit to the transferee(s) for counter-signature prior to the transfer of the Materials;
	 	 	 
	 	4.1.2	the
    Party providing that Material under that material transfer record form shall warrant that, to its reasonable knowledge without having
    undertaken any searches of any intellectual property registers, that Party has the full right and authority to transfer the Materials
    to the transferee for use as described in Schedule 2;
	 	 	 
	 	4.1.3	Materials
    and related information provided by a Party shall remain the property of such Party or remain under the Control of such Party, and
    shall be kept securely by the other Party and shall not be provided by the other Party to any Third Party, except with the express
    written consent of the Party providing such Materials and related information;
	 	 	 
	 	4.1.4	A
    Party receiving Materials from the other Party shall only use such Materials for the purpose of performing its obligations pursuant
    to this Agreement and shall use such Materials in accordance with all applicable Laws;
	 	 	 
	 	4.1.5	other
    than as expressly permitted under this Agreement, (i) On Target shall not publish or attempt to publish any information or findings
    constituting Arising Project IP without the prior written consent of OKYO, (ii) OKYO shall not publish or attempt to publish any
    information or findings constituting Arising General IP without the prior written consent of On Target, and (iii) a Party receiving
    Materials from the other Party shall not otherwise characterise or reproduce such Materials without the prior written consent of
    the Party providing such Materials; and

 

    	7

    	 

    

 

	 	

    4.1.6	A
    Party receiving Materials from the other Party shall, at the election of such other Party, following completion of the purpose for
    which such Materials were transferred, destroy or return such Materials.
	 	 
	5.	INTELLECTUAL
    PROPERTY RIGHTS
	 	 
	5.1.	On
    Target shall own all rights, title and interest in and to (i) the On Target Background Rights and (ii) the Arising General IP, and
    OKYO shall own all rights title and interest in the Arising Project IP. No licence to use any On Target Background Rights or Arising
    IP or other Intellectual Property Rights is granted or implied by this Agreement except for the rights expressly granted in this
    Agreement and the Licence and Sub-Licence Agreement.
	 	 
	5.2.	On
    Target hereby unconditionally assigns (by way of present assignment of future rights) to OKYO, irrevocably and absolutely, all right,
    title and interest in and to all Arising Project IP (it being understood and agreed, for the avoidance of doubt, that On Target shall
    retain, and does not hereby or otherwise assign to OKYO, all right, title and interest in and to all Arising General IP). On Target
    hereby waives any moral rights (other than any moral rights relating to or constituting Arising General IP) in any works generated
    in the course of achieving the Research Plan to which On Target may become entitled at any future time under any provisions of Law
    in any jurisdiction including without limitation the right to be identified, the right of integrity and the right against false attribution,
    and agrees to institute, support, maintain or permit any action or claim to the effect that any treatment, exploitation or use of
    such works infringes On Target’ moral rights (in each case, at OKYO’s written request and sole expense).
	 	 
	5.3.	To
    the extent that the assignment set out in Clause 5.2 is not effective to assign any Arising Project IP to OKYO, On Target shall hold
    such Arising Project IP in trust for OKYO. On Target shall, as and when requested to do so by OKYO in writing, execute all documents
    and do all things reasonably requested by OKYO to give effect to Clause 5.2 (in each case, at OKYO’s sole expense).
	 	 
	6.	COSTS
	 	 
	Except
    as provided otherwise in Clauses 5.2 and 5.3 and in the Research Plan, each Party agrees that it shall bear its own costs in connection
    with carrying out the Research Plan save for the committed funding costs that OKYO has agreed to pay to On Target for its work.
	 	 
	7.	REPRESENTATIONS,
    WARRANTIES AND LIMITATION OF LIABILITY
	 	 
	7.1.	OKYO
    and On Target each warrants to the other that it has full power and authority under its constitution, and has taken all necessary
    actions and obtained all authorisations, licences, consents and approvals, to allow it to enter into this Agreement and to perform
    its obligations hereunder.
	 	 
	7.2.	No
    Party makes any representation or gives any warranty to the other that any advice or information given by it or any of its employees,
    contractors or other personnel who carry out the research set out in the Research Plan, or the content or use of any Arising IP,
    Materials or information provided in connection with the Research Plan, shall not constitute or result in the infringement of the
    rights of any Third Party (including, but not limited to, Intellectual Property Rights).

 

    	8

    	 

    

 

	7.3.	No
    Party accepts any liability or responsibility for any use which may be made by the other Party of any Arising IP, nor for any reliance
    which may be placed by that other Party on any Arising IP, nor for advice or information given in connection with any results.
	 	 
	7.4.	Each
    Party (the “Indemnifying Party”) shall indemnify, defend and hold harmless the other Party, its Affiliates, directors,
    officers, employees, agents, subcontractors or sub-licensees (together, the” Indemnified Parties”) from and against
    each and every claim made by a Third Party against any of the Indemnified Parties, such Third Party claims arising as a result of
    the gross negligence or wilful misconduct of the Indemnifying Party (or any of its Affiliates, directors, officers, employees, agents,
    subcontractors or sub-licensees) in performing its obligations or exercising its rights under this Agreement, provided that the Indemnified
    Parties must, except with respect to any claim made in a criminal proceeding brought against an Indemnified Party:
	 	 
	 	7.4.1	promptly
    (and in any event, within ten (10) business days of receipt of such claim) notify the Indemnifying Party of details of such claim;
	 	 	 
	 	7.4.2	not
    make any statement, admission, settlement or compromise in relation to the claim;
	 	 	 
	 	7.4.3	allow
    the Indemnifying Party to take such action as it shall deem necessary, in its absolute discretion, to avoid, dispute, resist, appeal,
    compromise or contest any such claim in the name of the applicable Indemnified Parties and to have the sole conduct of any related
    proceedings, negotiations or appeals (provided, however, that the Indemnifying Party may not, without each relevant Indemnified Party’s
    prior written consent which shall not be unreasonably withheld, (i) admit fault or guilt on behalf of such Indemnified Party or (ii)
    agree to compel such Indemnified Party to do, or refrain from doing, any act); and
	 	 	 
	 	7.4.4	give
    the Indemnifying Party all reasonable assistance and information (including procuring access to relevant personnel in order to investigate
    the claim) (at the Indemnifying Party’s expense) as the Indemnifying Party reasonably requires in connection with resisting,
    appealing, compromising or contesting any such claim.
	 	 	 
	 	The
    indemnity in this Clause 7.4 shall not apply to the extent that the Third Party claim arises as a result of any Indemnified Party’s
    negligence, reckless act or omission or intentional misconduct, breach of confidentiality, material breach of this Agreement or its
    infringement of any Third Party’s Intellectual Property Rights. For the avoidance of doubt: (i) this Clause 7.4 is without
    prejudice to any other rights which the Indemnifying Party may have at Law against the other Party or Third Party; (ii) the Indemnifying
    Party shall not be obliged to indemnify any of the Indemnified Parties to the extent any admission or statement made by any of the
    Indemnified Parties or any failure by any of the Indemnified Parties to notify the Indemnifying Party of the claim, materially prejudices
    the defense of the Third Party claim; and (iii) the Indemnifying Party shall not be obliged to indemnify the Indemnified Parties
    to the extent any Third Party claim is indemnified by the same Indemnifying Party pursuant to an indemnity under the Licence and
    Sub-Licence Agreement.

 

    	9

    	 

    

 

	7.5.	Nothing
    in this Agreement limits or excludes any Party’s liability for:
	 	 
	 	7.5.1	death
    or personal injury resulting from negligence;
	 	 	 
	 	7.5.2	fraud;
    or
	 	 	 
	 	7.5.3	any
    liability that, by Law, cannot be limited or excluded.
	 	 	 
	7.6.	Subject
    to Clause 7.5, the Parties shall not be liable to each other or any of their directors, officers, employees or agents for any of
    the following types of loss, damage, cost or expense arising (whether in contract, tort, negligence, breach of statutory duty or
    otherwise) under or in relation to this Agreement or the subject-matter of this Agreement for:
	 	 	 
	 	7.6.1	any
    loss of profits, business, contracts, anticipated savings, goodwill, or revenue; or
	 	 	 
	 	7.6.2	any
    indirect or consequential loss or damage whatsoever ; or
	 	 	 
	 	7.6.3	any
    exemplary or punitive damages,
	 	 	 
	 	even
    if the Party was advised in advance of the possibility of such loss or damage.
	 	 
	7.7.	Subject
    to Clause 7.5, the aggregate liability of each Party for all claims under this Agreement shall be limited to the aggregate amount
    actually received by On Target from OKYO pursuant to this Agreement.
	 	 
	7.8.	The
    express undertakings and warranties given by the Parties in this Agreement are in lieu of all other warranties, conditions, terms,
    undertakings and obligations, whether express or implied by statute, common law, custom, trade usage, course of dealing or in any
    other way. All of these are excluded to the fullest extent permitted by Law.
	 	 
	8.	TERM
    & TERMINATION
	 	 
	8.1.	This
    Agreement shall come into effect on the Effective Date and shall continue until (i) if OKYO elects to enter into Phase 2 of the Research
    Plan by giving to On Target the Phase 2 Election Notice to that effect, then upon expiration of 30 days after the date on which the
    Phase 2 Report is delivered to OKYO (or, if the OKYO Scientific Advisor notifies On Target in writing, within such 30-day period,
    of specific deficiencies with respect to the Phase 2 Report that are susceptible of reasonable remediation, then the date on which
    such deficiencies have been reasonably remedied by On Target), or (ii) otherwise, the date on which OKYO notifies On Target of OKYO’s
    election not to enter into Phase 2 of the Research Plan as contemplated by Clause 3.1 or, if OKYO fails to so notify On Target of
    such election within such 30-day period, expiration of 30 days after the date on which the Phase 1 Report is delivered to OKYO (or,
    if the OKYO Science Adviser notifies On Target in writing, within such 30-day period, of specific deficiencies with respect to the
    Phase 1 Report that are susceptible of reasonable remediation , then the date on which such deficiencies have been reasonably remedied
    by On Target), in each case unless terminated earlier in accordance with this Clause 8 (the” Term” ).
	 	 
	8.2.	A
    Party may by notice in writing to the other Party terminate this Agreement if the other Party:
	 	 
	 	8.2.1	is
    in breach of any of the terms of this Agreement which, in the case of a breach capable of remedy, shall not have been remedied by
    the other Party within thirty (30) days of receipt by the Party in breach of a notice from the Party specifying the breach and requiring
    its remedy; or

 

    	10

    	 

    

 

	 	

    8.2.2	becomes
    insolvent, is dissolved or liquidated, makes a general assignment for the benefit of its creditors, files or has filed against it,
    a petition in bankruptcy, or has a receiver appointed for a substantial part of its assets or make any arrangement or composition
    with its creditors.
	 	 
	8.3.	OKYO
    may terminate this Agreement:
	 	 
	 	8.3.1	immediately
    on providing written notice to On Target in the event that the OKYO Science Advisor determines that the Research Plan should be terminated
    for any reason; or
	 	 	 
	 	8.3.2	on
    three months’ notice in writing to On Target in the event that OKYO reasonably concludes that the Research Plan is not being
    executed in accordance with its reasonable expectations and after having raised such concerns with On Target and given On Target
    not less than 30 days to rectify performance issues so identified.
	 	 
	8.4.	Upon
    termination or expiry of this Agreement for any reason, each Party shall as soon as reasonably practicable:
	 	 
	 	8.4.1	return
    to the transferee (or, at the transferee’s direction, destroy) (to the extent technically possible) any of the transferee’s
    Materials which are at the date of termination or expiry in its possession or Control; and
	 	 	 
	 	8.4.2	return
    to the transferee all copies of documents whether in paper, electronic or other form which contain Confidential Information of the
    transferee and are in its possession or Control save that the Party in Control of the same shall be entitled to keep a copy of such
    documents for archiving purposes.
	 	 
	8.5.	The
    provisions of Clauses 1, 4.1.3 to 4.1.6 (inclusive), 5, 7.3 to 7.8 (inclusive), 8.4 to 8.5 (inclusive), 9.1, 9.2, 9.4 to 9.7 (inclusive),
    9.8 to 9.13 (inclusive) and 9.15 to 9.20 (inclusive) shall survive termination or expiry of this Agreement. Any rights or remedies
    of either Party arising prior to termination or expiry of the Agreement shall continue to be enforceable.
	 	 
	9.	MISCELLANEOUS
	 	 
	9.1.	Confidentiality.
    Each Party recognises that the other Party is engaged in a continuous program of research and development respecting its present
    and future business activities. Each Party agrees as follows:
	 	 
	 	9.1.1	at
    all times during the term of this Agreement and thereafter, such Party will hold in strictest confidence and will not disclose, use,
    lecture upon or publish any of the other Party’s Proprietary Information (as the same is defined below), except to the extent
    such disclosure, use or publication may be required in direct connection with such Party’s performance of its obligations or
    exercise of its rights under this Agreement, or as expressly authorised in writing by the other Party;

 

    	11

    	 

    

 

	 	

    9.1.2	the
    term “Proprietary Information” shall mean any and all trade secrets, confidential knowledge, know-how, data or
    other proprietary information or materials of the specified Party. By way of illustration but not limitation, Proprietary Information
    includes: (i) inventions, ideas, samples, devices, media and/or cell lines and procedures for producing any such samples, devices,
    media and/or cell lines, processes, formulas, formulations, data, software, hardware, mask works, know-how, improvements, discoveries,
    developments, designs and techniques; (ii) information regarding plans for research, development, new products, marketing and selling,
    business plans, budgets and unpublished financial statements, licenses, prices and costs, suppliers and customers; and (iii) information
    regarding the skills and compensation of employees or other consultants of the specified Party; and
	 	 	 
	 	9.1.3	in
    addition, each Party understands that the other Party has received and in the future may receive from third parties confidential
    or proprietary information (“Third Party Information”) subject to a duty on such Party’s part to maintain
    the confidentiality of such information and to use it only for certain limited purposes. During the term of this Agreement and thereafter
    , each Party will hold Third Party Information received from the other Party in the strictest confidence and will not disclose or
    use such Third Party Information, except in connection with such Party’s performance of its obligations or exercise of its
    rights under this Agreement, or as expressly authorised in writing by the other Party.
	 	 	 
	9.2.	Assignment.
    Neither this Agreement nor any rights or obligations under this Agreement may be assigned by any Party, without the prior written
    consent of the other Parties, except that a Party may assign its rights or obligations under this Agreement to an Affiliate.
	 	 
	9.3.	Force
    Majeure. Each Party shall be excused from the performance of its obligations under this Agreement (except a payment obligation)
    to the extent that such performance is prevented by Force Majeure and the non-performing Party promptly provides notice of the prevention
    to the other Parties. Such excuse shall be continued so long as the condition constituting Force Majeure continues and the non-performing
    Party makes commercially reasonable efforts to remove the condition. Any Party affected by such Force Majeure shall take all reasonable
    steps to minimise the effects of such Force Majeure upon performance of this Agreement. If any event of Force Majeure persists for
    a period of ninety (90) days, any Party affected by the Force Majeure may by written notice terminate this Agreement.
	 	 
	9.4.	Notices.
    Any notice or notification required or permitted to be provided pursuant to the terms and conditions of this Agreement shall be in
    writing and shall be deemed given:
	 	 
	 	9.4.1	upon
    receipt if delivered personally (receipt verified);
	 	 	 
	 	9.4.2	on
    the third Business Day if sent by overnight delivery using an internationally recognised express courier service and specifying next
    available Business Day delivery (receipt verified}; or
	 	 	 
	 	9.4.3	 by
    confirmation of receipt if delivered by electronic mail,
	 	 
	 	to
    the relevant Party at the addresses set out above (or at such other address for a Party as shall be specified by notice in writing,
    provided, however, that notices of a change of address shall be effective only upon receipt thereof).

 

    	12

    	 

    

 

 

	9.5.	Amendments
    . No amendment, modification or supplement of any provision of this Agreement shall be valid or effective unless made in writing
    and signed by a duly authorised representative of each Party.
	 	 
	9.6.	Disputes.
    Any dispute or disagreement that arises between any of the Parties in respect of this Agreement, shall follow the following procedures
    in an attempt to resolve the dispute or disagreement:
	 	 	 
	 	9.6.1	the
    Party claiming that such a dispute exists shall give notice in writing (“Notice of Dispute”) to the Party with
    whom the dispute exists (each, a “ relevant Party” in relation to that dispute) of the nature of the dispute;
	 	 	 
	 	9.6.2	the
    dispute will be referred to the senior officers of the relevant Parties who shall meet to discuss and seek to resolve the issue;
	 	 	 
	 	9.6.3	if,
    within a further period of thirty (30) days, or if in any event within sixty (60) days of initial receipt of the Notice of Dispute,
    whichever is shorter, the dispute has not been resolved, or if, for any reason, the meeting of the senior officers of the relevant
    Parties has not been held within sixty (60) days of initial receipt of the Notice of Dispute, then the Parties agree that any relevant
    Party may initiate arbitration proceedings to resolve the dispute; and
	 	 	 
	 	9.6.4	notwithstanding
    any provision of this Agreement to the contrary, any relevant Party may immediately initiate litigation in any court of competent
    jurisdiction seeking any remedy at Law or in equity, including application for the issuance of a preliminary, temporary or permanent
    injunction, to preserve or enforce its rights under Clause 9.1.
	 	 	 
	9.7.	Arbitration.
    If the informal resolution mechanism of Clause 9.6 proves unsuccessful within the allotted period, then the relevant Parties
    shall submit their dispute to binding arbitration before one (1) arbitrator in New York, New York, USA pursuant to the Rules of Arbitration
    of the International Chamber of Commerce (“ICC”). The arbitrators shall be qualified in New York Law and shall
    be selected in accordance with the rules of the ICC. Any arbitrator so selected shall have substantial experience regarding the issues
    in dispute and the pharmaceutical industry. The arbitrators may permit limited discovery as they deem appropriate in the circumstances
    of the dispute. The arbitration shall be conducted, and all documents submitted to the arbitrators shall be, in English. The arbitrators
    shall have no power to award punitive, special, incidental or consequential damages. The arbitrator’s decision and award shall
    be final and binding upon all Parties. The costs for each relevant Parties’ counsel and other expenses, and the costs of the
    arbitration shall be borne by the relevant Parties as determined by the arbitrator’s judgment and the award rendered by arbitration
    may be issued and enforced by any court having competent jurisdiction.
	 	 
	9.8.	Entire
    Agreement. This Agreement, including its Schedules, constitutes and contains the complete, final and exclusive understanding
    and agreement of the Parties and cancels and supersedes any and all prior negotiations, correspondence, understandings and agreements,
    whether oral or written, between the Parties respecting the subject matter hereof and thereof.

 

    	13

    	 

    

 

	9.9.	Independent
    Contractors. The Parties are independent contractors under this Agreement. Nothing contained in this Agreement shall be deemed
    to create an agency relationship between the Parties or any of their agents or any legal arrangement that would impose liability
    upon one Party for the act of failure of the other Party, except as expressly set out in this Agreement. None of the Parties shall
    have any express or implied power to enter into any contracts or commitments or to incur any liabilities in the name of, or on behalf
    of the other Party, or to bind the other Party in any respect whatsoever.
	 	 
	9.10.	Counterparts.
    This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which shall constitute
    together the same document. Counterparts may be signed and delivered by courier or by electronic mail with attached PDF file, each
    of which shall be binding when received by the applicable Party.
	 	 
	9.11.	No
    Third Party Rights or Obligations. Except as otherwise expressly provided herein, no provision of this Agreement shall be deemed
    or construed in any way to result in the creation of any rights or obligations in any person not a Party to this Agreement.
	 	 
	9.12.	Further
    Actions . Each Party shall promptly execute and deliver such documents and perform such acts as may reasonably be required for
    the purpose of giving full effect to this Agreement.
	 	 
	9.13.	No
    Additional Rights. Except for the rights expressly granted herein, nothing in this Agreement shall be construed as conferring
    upon either Party by implication, estoppel or otherwise any additional rights, including, but not limited to, any additional rights
    in or to the Confidential Information and/or Intellectual Property Rights of the other Party.
	 	 
	9.14.	[Intentionally
    Omitted].
	 	 
	9.15.	Compliance.
    The Parties shall comply with the anti-bribery and corruption, research and scientific engagement policies of OKYO as in force from
    time to time. No Party shall knowingly undertake any action pursuant to this Agreement which is reasonably likely to have material
    adverse effect on another Party’s reputation, including any action involving: (i) the breach of international government sanctions
    regarding the export of goods or undertaking of activities with certain countries identified by Her Majesty’s Government in
    the UK or the US Government, (ii) the tobacco industry, (iii) child labour, or (iv) bringing opportunistic patent infringement proceedings
    under Patents which do not relate to the substantive business operations of the patent owner or licensee (known as “patent
    trolling”).
	 	 
	9.16.	Non-reliance.
    Each Party acknowledges and agrees that it has not entered into this Agreement in reliance upon any representation, warranty or undertaking
    of any other Party which is not expressly set out or referred to in this Agreement.
	 	 
	9.17.	Non-repudiation.
    No act or omission of any Party which shall be carried out:
	 	 	 
	 	(a)	in
    compliance or purported compliance with any provision of this Agreement; or
	 	 	 
	 	(b)	pursuant
    to a decision taken or purportedly taken in accordance with this Agreement,

 

    	14

    	 

    

 

	 	
or
    which shall otherwise constitute or involve a breach of any provision of this Agreement shall be regarded as a repudiation of this
    Agreement or affect the continued application of this Agreement to the Parties but (for the avoidance of doubt) nothing in this Clause
    9.17 shall limit the right of either Party to pursue a claim for damages or any other relief (whether interim or otherwise) in respect
    of any breach or threatened breach of this Agreement.
	 	 	 
	9.18.	Illegality.
    If any provision of this Agreement is held to be illegal, void, invalid or unenforceable under the Laws of any jurisdiction, the
    legality, validity and enforceability of the remainder of this Agreement in that jurisdiction shall not be affected, and the legality,
    validity and enforceability of the whole of this Agreement in any other jurisdiction shall not be affected.
	 	 	 
	9.19.	Waiver.
	 	 	 
	 	9.19.1	No
    failure on the part of any Party to exercise, and no delay on its part in exercising, any right or remedy under this Agreement shall
    operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy preclude any other or further exercise
    thereof or the exercise of any other right or remedy. The rights and remedies provided in this Agreement (including its Schedules)
    are cumulative and not exclusive of any rights or remedies provided by Law; and
	 	 	 
	 	9.19.2	No
    provision of this Agreement shall be waived by any act, omission or knowledge of a Party or its officers, agents or employees except
    by an instrument in writing expressly waiving such provision and signed by a duly authorised officer of the waiving Party. The waiver
    by any of the Parties of any breach of any provision hereof by the other Parties shall not be construed to be a waiver of any succeeding
    breach of such provision or a waiver of the provision itself.
	 	 	 
	9.20.	Governing
    Law. This Agreement and any contractual or non-contractual obligations arising from or connected with this Agreement, and the
    rights of the Parties, shall be governed by the laws of the State of New York without regard to principles of conflict of laws that
    would have the effect of applying the laws of a different jurisdiction.

 

[Signature
page to follow]

 

    	15

    	 

    

 

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	

    EXECUTED FOR AND ON BEHALF OF)	 	 
	ON
    TARGET THERAPEUTICS LLC         )	 	 
	 	 	 
	 	 	 
	Name:	Alan
S. Kopin MD
	 	 
	Position:	OTTX
    Chief Scientific Officer	 	 
	Date:
    	June
    4, 2018	 	 
	 	 	 
	EXECUTED
    FOR AND ON BEHALF OF) 	 	 
	ON
    OKYO PHARMA LIMITED         )	 	 
	 	 	 
	 	 	 
	Name:	            	 	 
	Position:	 	 	 

 

    	16

    	 

    

 

Schedule
1

 

RESEARCH
PLAN FOR DRY EYE TECHNOLOGY

 

The
proposed research plan that follows will be completed within a six-month period for a budget of $400K.

 

Phase
1

 

 1. Selection of optimized ligand.

 

Pharmacological
assessment of 6 novel lipidated stable chemerin analogs. The efficacy and potency of the ligands will be compared with the prototype
compound. In vitro assays will be done in HEK293 cells transiently expressing recombinant CMKLR1. Pharmacologic characterization of the
6 novel lipidated stable chemerin analogs will be done by assessing receptor mediated Gai signaling. HEK293 cells will be transiently
transfected with cDNAs encoding CMKLR1, an SRE luciferase reporter gene and Gq5i. Efficacy and potency of stable chemerin analogs will
be determined using methods that are well established at On Target Therapeutics. Compounds will be rank ordered based on pharmacologic
properties.

 

Output:
Phase 1 Report with final recommendation.

 

2.
Stability testing of the most promising compound: overnight incubation at room temp and at 37 degrees followed by in vitro
assessment.

 

The
candidate peptide will be resuspended in sterile PBS at the concentration used for DED studies (currently anticipated to be 210μM).
Peptides will be incubated in low retention Eppendorf tubes at both room temperature and at 37 Celsius for 24 hours. The peptide will
then be serially diluted along with freshly prepared peptide. Potency and efficacy will then be assessed using the in vitro assay described
in section 1. Any issues with solubility or peptide aggregation that alter pharmacological activity can be identified using this method.

 

Output:
results summarized in Phase 1 Report

 

 3. Mini-scale up synthesis of compounds for mouse study: The scale up synthesis of lead compounds will be conducted to prepare adequate quantities for mouse dry eye studies.

 

Phase
II

 

 4. Scale up of the most promising compound.

 

Synthesis
of the candidate compound nominated following dry eye disease studies with be scaled to 1- gram. Solid phase FMOC synthesis will be used
to produce 1-gram of peptide as an acetate salt. Peptides will be purified to a minimum of 95% purity which will be confirmed by RP-HPLC.
Peptide identity will be further confirmed by LC/MS. In addition, impurities will also be measured by RP HPLC.

 

Output:
results summarized in Phase 2 Report

 

5.
Assessment of the two most promising lipidated stable chemerin analogs (without the PEG linker) in the scopolamine dry eye mouse
model (DED).

 

The
two analogs (without PEG) will be compared with the prototype compound (containing a PEG linker) and with vehicle . Efficacy in a murine
scopolamine DED model will be measured using the following measurements: i) tear break up time using fluorescein sodium, ii) tear production
using phenol red, iii) corneal epitheliopathy using fluorescein sodium under slit lamp.

 

Output:
Results summarized in Phase 2 Report

 

    	17

    	 

    

 

 6. Rabbit ocular tolerability/ irritant study.

 

New
Zealand white (NZW) rabbits will be used. Advantages of these animals include large eyes, well described anatomy and physiology, easy
to handle, and readily available. The test substance (0.1 ml), the most efficacious of the lipidated chemerin constructs, will be applied
onto the cornea and conjunctiva! sac of one eye of a conscious rabbit for 72 h. The other eye will serve as an untreated control. Six
rabbits will be used per test, comparison will be made with vehicle alone. Rabbits will be examined daily for at least 7 days for signs
of ocular inflammation (redness, swelling, cloudiness, edema, hemorrhage, discharge and blindness). Assessment will be done using penlighU
slit lamp. Subjective scoring from non-irritating to severely irritating will be done.

 

Output:
results summarized in Phase 2 Report 7. Coordination and oversight of research plan.

 

After
screening selected CROs, Dr. Alan Kopin will select vendors based on relevant experience and recommendations. Pharmacological assessments
will be done in the OTTX laboratory by Dr. Benjamin Harwood. Compounds will be assessed for efficacy and potency after synthesis (including
after scaleup). Aliquots of test compounds will be distributed to the relevant CROs by OTTX. Parallel vials will be retained and retested
to confirm pharmacological activity. All methods and results will be provided to Kunwar Shailubhai, along with the corresponding conclusions
based on the investigations. Protocols may be modified based on the recommendations of the CRO/lab director carrying out the study.

 

Payment
Schedule

 

The
budget of US$400,000 is an all in package to cover research time; consumables; laboratory hire; animal models and any third party costs.
An initial payment of $200,000 will be made by OKYO to On Target upon presentation of On Target’s invoice therefor, which invoice
may be presented by On Target at any time after the Effective Date and shall be payable on receipt. The remaining balance of $200,000
will be paid by OKYO to On Target upon presentation of On Target’s invoice therefor, which invoice may be presented by On Target
at any time after On Target’s receipt of OKYO’s Phase 2 Election Notice setting forth OKYO’s election to enter into
Phase 2, and shall be payable on receipt.

 

    	18

    	 

    

 

Schedule
2

MATERIAL
TRANSFER RECORD FORM 

 

Capitalised
terms used in this material transfer record form (“MTRF”) that are not defined herein shall have the meanings set
forth in the Collaboration Agreement dated [●] made between On Target and OKYO (the “Agreement”).

 

Pursuant
to the terms of the Agreement, [●] will transfer [●]the Materials identified below.

 

This
MTRF shall be used as the record of all such Materials transferred, regardless of the transferor or transferee.

 

Transfer
date:

 

Description
of Materials:

 

EXECUTED
BY ON TARGET:

 

Date:

 

EXECUTED
BY OKYO PHARMA LIMITED:

 

[name]

[position]

Date:

 

Note:
This MTRF is to be completed and signed by On Target and OKYO for each transfer. A copy of each completed MTRF is to be provided
to the respective Chief Executive Officer of OKYO and Chief Scientific officer of On Target. This MTRF should not be used to transfer
any Materials in which Third Parties may have rights, or which may infringe, or violate any Intellectual Property Rights held by any
Third Party. If there are any questions about the appropriateness of a transfer, please contact the representatives identified herein
before making such transfer.

 

    	19

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