Document:

Exhibit 10.1

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions. 

 

OPTION
AGREEMENT

AND
ESCROW INSTRUCTIONS

 

THIS OPTION AGREEMENT
AND ESCROW INSTRUCTIONS (this “Agreement”) is made and entered into as of February 27, 2013 (the “Effective
Date”), by and between Jason B. Rushing, Trustee
of the Jason B. Rushing Trust dated July 10,
1997; JENNIFER R. RUSHING, Trustee of the JENNIFER
RUSHING REVOCABLE TRUST dated March 19, 2008;
and Zella A. Rushing, Trustee of the 1988
Zella Rushing Trust dated May 12,
1988 (together, “Optionor”), and LIMONEIRA
COMPANY, a Delaware corporation (“Optionee”).
Optionor and Optionee are hereinafter sometimes individually referred to as a “party” and collectively as the “parties.”

 

RECITALS

 

A.           Optionor
is the owner of that certain real property located at State Highway 126 and Hallock Drive in the City of Santa Paula, County of
Ventura, State of California, consisting of approximately Seven and Twenty-two Hundredths (7.22) acres [APNs: 107-0-043-140, -010
and -025], which real property is described on Exhibit A (the “Property”).

 

B.           Optionee
desires to obtain an option to acquire the Property, together with all personal property and all easements, rights of way and
other rights appurtenant to the Property (collectively, the “Option Property”).

 

C.           The
Option Property is one (1) of the parcels referred to in that certain Pre-Annexation and Development Agreement (East Area II),
by and among the City of Santa Paula, Optionor and Optionee, which Development Agreement neither Optionor nor Optionee is obligated
to execute.

 

D.        
  The purpose of this Agreement is to set forth the terms and conditions agreed upon between Optionor and Optionee with
respect to the grant of an option to Optionee to purchase the Option Property and, if and to the extent exercised, the purchase
and sale of the Option Property.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.          Grant
of Option. Subject to the terms and conditions set forth in this Agreement, and the payment by Optionee of the Option Consideration
(as that term is defined below), Optionor hereby grants to Optionee the right and option (the “Option”)
to purchase the Option Property for a period of time, beginning on the date of Opening of Escrow and expiring on February 28,
2018, unless this Agreement is terminated earlier, as provided herein.

 

    	-1-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions. 

 

2.          Option
Consideration.

 

2.1           Option
Consideration. For and in consideration of the grant of the Option, Optionee agrees to pay to Optionor the option consideration
described below (the “Option Consideration”), which Option Consideration shall be paid in installments
as provided below. The Option Consideration shall be deemed earned upon receipt, and shall be non-refundable except if (a)
any of Optionee’s Conditions are not satisfied or otherwise waived by Optionee as set forth in Section 7.2, and/or
(b) Escrow fails to close due to a default by Optionor of its obligations under this Agreement, in either such case, the
Option Consideration shall be promptly returned or refunded to Optionee. The First Year Option Payment, Second Year Option Payment,
Third Year Option Payment, Fourth Year Option Payment and Fifth Year Option Payment, each as received by Optionor, shall be applied
as a credit toward the Purchase Price at Closing.

 

2.2           First
Year Option Payment. On or before February 28, 2013, Optionee shall deposit with Escrow Holder (as that term is defined below),
in immediately available funds, the first installment of the Option Consideration in an amount equal to [*]
(the “First Year Option Payment”). Immediately following the payment by Optionee of the First
Year Option Payment to Escrow Holder, Escrow Holder is instructed to release the First Year Option Payment directly to Optionor,
which release from Escrow shall be without liability to Escrow Holder. Notwithstanding the foregoing, if Optionee fails to deposit
the First Year Option Payment with Escrow Holder on or before the applicable due date, Optionee shall be deemed to have elected
to terminate this Agreement, in which case, this Agreement shall automatically terminate and neither party shall have any further
rights or obligations under this Agreement.

 

2.3           Second
Year Option Payment. On or before February 28, 2014, and provided this Agreement has not been terminated prior thereto, Optionee
shall deposit with Escrow Holder, in immediately available funds, the second year Option Consideration, in an amount equal to
[*] (the “Second Year Option Payment”). Immediately following
the payment by Optionee of the Second Year Option Payment to Escrow Holder, Escrow Holder is instructed to release the Second
Year Option Payment directly to Optionor, which release from Escrow shall be without liability to Escrow Holder. Notwithstanding
the foregoing, if Optionee fails to deposit the Second Year Option Payment with Escrow Holder on or before the applicable due
date, Optionee shall be deemed to have elected to terminate this Agreement, in which case, this Agreement shall automatically
terminate and neither party shall have any further rights or obligations under this Agreement.

 

2.4           Third
Year Option Payment. On or before February 28, 2015, and provided this Agreement has not been terminated prior thereto, Optionee
shall deposit with Escrow Holder, in immediately available funds, the third year Option Consideration, in an amount equal to [*]
(the “Third Year Option Payment”). Immediately following the payment by Optionee of the Third
Year Option Payment to Escrow Holder, Escrow Holder is instructed to release the Third Year Option Payment directly to Optionor,
which release from Escrow shall be without liability to Escrow Holder. Notwithstanding the foregoing, if Optionee fails to deposit
the Third Year Option Payment with Escrow Holder on or before the applicable due date, Optionee shall be deemed to have elected
to terminate this Agreement, in which case, this Agreement shall automatically terminate and neither party shall have any further
rights or obligations under this Agreement.

 

    	-2-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

2.5           Fourth
Year Option Payment. On or before February 29, 2016, and provided this Agreement has not been terminated prior thereto, Optionee
shall deposit with Escrow Holder, in immediately available funds, the fourth year Option Consideration, in an amount equal to
[*] (the “Fourth Year Option Payment”). Immediately following
the payment by Optionee of the Fourth Year Option Payment to Escrow Holder, Escrow Holder is instructed to release the Fourth
Year Option Payment directly to Optionor, which release from Escrow shall be without liability to Escrow Holder. Notwithstanding
the foregoing, if Optionee fails to deposit the Fourth Year Option Payment with Escrow Holder on or before the applicable due
date, Optionee shall be deemed to have elected to terminate this Agreement, in which case, this Agreement shall automatically
terminate and neither party shall have any further rights or obligations under this Agreement.

 

2.6           Fifth
Year Option Payment. On or before February 28, 2017, and provided this Agreement has not been terminated prior thereto, Optionee
shall deposit with Escrow Holder, in immediately available funds, the fifth year Option Consideration, in an amount equal to [*]
(the “Fifth Year Option Payment”). Immediately following the payment by Optionee of the Fifth
Year Option Payment to Escrow Holder, Escrow Holder is instructed to release the Fifth Year Option Payment directly to Optionor,
which release from Escrow shall be without liability to Escrow Holder. Notwithstanding the foregoing, if Optionee fails to deposit
the Fifth Year Option Payment with Escrow Holder on or before the applicable due date, Optionee shall be deemed to have elected
to terminate this Agreement, in which case, this Agreement shall automatically terminate and neither party shall have any further
rights or obligations under this Agreement.

 

2.7           Exercise
of Option. Optionee shall have the right to exercise the Option at any time during the term of this Agreement by giving
written notice thereof (the “Closing Notice”) to Optionor and Escrow Holder on or before 5:00
p.m. on January 28, 2018 (the “Closing Notice Deadline”). Upon the receipt of the Closing Notice by
Optionor, this Agreement shall be a binding agreement for the purchase and sale of the Option Property in accordance with the
terms and provisions hereof. If Optionor and Escrow Holder do not physically receive the Closing Notice on or before the Closing
Notice Deadline, Optionee shall be deemed to have elected to not exercise the Option, in which case, this Agreement shall automatically
terminate and neither party shall have any further rights or obligations under this Agreement.

 

3.          Purchase
Price.

 

3.1          Purchase
Price. The purchase price for the Option Property shall be calculated as follows (the “Purchase Price):

 

(a)          If
Optionee exercises the Option and the Closing Date is on or prior to February 28, 2014, the purchase price shall be [*]
per square foot. For purposes of this Agreement, the calculation of square footage of the Property shall be based upon
gross acres without offset or deduction for easements and rights of way. Any survey of the Option Property shall be at the sole
cost and expense of Optionee.

 

    	-3-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

(b)          If
Optionee exercises the Option and the Closing Date is after February 28, 2014, but on or prior to February 28, 2015, the purchase
price shall be [*] per square foot.

 

(c)          If
Optionee exercises the Option and the Closing Date is after February 28, 2015, but on or prior to February 29, 2016, the purchase
price shall be [*] per square foot.

 

(d)          If
Optionee exercises the Option and the Closing Date is after February 29, 2016, but on or prior to February 28, 2018, the purchase
price shall be the greater of (1) [*] per square foot or (2) the appraised
value as determined by Kevin MacAtee of Hoffman, Vance and Worthington.

 

3.2          Payment
of Purchase Price. On or before one (1) business day prior to the Close of Escrow, Optionee shall deposit with Escrow Holder,
in immediately available funds, the full amount of the Purchase Price, less the Option Consideration received by Optionor (the
“Cash Payment”), plus an amount equal to Optionee’s share of the closing costs and prorations
as set forth in Section 8.6. At Close of Escrow, the Cash Payment shall be disbursed to Optionor, less Optionor’s
share of the closing costs and prorations as set forth in Section 8.6.

 

4.          Opening
of Escrow. Within three (3) business days following the mutual execution of this Agreement, Optionor and Optionee shall open
an escrow (the “Escrow”) with LandAmerica Lawyer’s Title, Attn: Judy Cook, Escrow Officer, 2751
Park View Court, Suite 241, Oxnard, CA 93036 (“Escrow Holder”), by delivering an executed copy of this
Agreement to Escrow Holder. Optionor shall also deliver to Escrow Holder a Memorandum of Option executed and acknowledged by Optionor
and Optionee in the form attached hereto as Exhibit B (the “Memorandum of Option”). Optionee
shall deliver to Escrow Holder a Quitclaim Deed executed and acknowledged by Optionee in the form attached hereto as Exhibit
C (the “Quitclaim Deed”). Escrow Holder is directed to record the Memorandum of Option against the
Option Property in the Official Records of the County of Ventura concurrent with the release of the First Option Payment to Optionor.
Escrow Holder shall hold the Quitclaim Deed until required to deliver the same to Optionor pursuant to the express provisions
of this Agreement, including, without limitation, Sections 6 and 8.5. As used in this Agreement, the term “Opening
of Escrow” shall mean the date on which a fully-executed copy of this Agreement has been delivered to Escrow Holder.
Upon receipt of the fully-executed copy of this Agreement, Escrow Holder is hereby instructed to open the Escrow, and advise the
parties (including each of the party’s respective attorneys, if any) of the date of the Opening of Escrow. This Agreement
shall constitute escrow instructions to Escrow Holder, together with Escrow Holder’s general provisions. If there is any
conflict between Escrow Holder’s general provisions and the provisions of this Agreement, the provisions of this Agreement
shall control.

 

    	-4-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

5.          Due
Diligence. Commencing as of January 4, 2013, Optionee had the right to review the suitability of the Option Property
for its intended purposes as determined by Optionee in its sole, subjective discretion. In particular, Optionee shall have the
right to review and investigate the condition of title to the Option Property (including the review of any surveys of the Option
Property) as further described in Section 5.1, the physical and environmental condition of the Option Property, the character,
quality, value and general utility of the Option Property, the zoning, land use, environmental and building requirements and restrictions
applicable to the Option Property, the economic feasibility of using the Option Property for Optionee’s intended purposes,
and other factors or matters relevant to Optionee’s decision to purchase the Option Property. If on or before February 28,
2013, Optionee determines in its sole, subjective discretion that the Property is not acceptable for any reason whatsoever, Optionee
shall have the right to terminate this Agreement by giving notice thereof to Optionor pursuant to Section 5.4, and upon
giving of such notice, Optionee shall be repaid any previously paid Option Consideration.

 

5.1           Preliminary
Title Report. Optionee ordered a Preliminary Title Report for the Option Property, dated October 29, 2012, from LandAmerica
Lawyer’s Title (“Title Company”) [File No. 412240915], together with legible copies of the documents
of record evidencing all title exceptions (collectively, the “Title Report”). Optionee shall have until
February 8, 2013, to notify Optionor and Escrow Holder, in writing, of Optionee’s disapproval of any exceptions shown on
the Title Report (the “Title Review Period”). If Optionee does not give Optionor and Escrow Holder written
notice of disapproval by the end of the Title Review Period, the Title Report and supporting documents shall be deemed approved
and all exceptions therein (other than the Deemed Disapproved Exceptions (defined below)) shall be deemed “Permitted
Exceptions” and this condition shall be deemed satisfied; provided, however, that following
the expiration of the Title Review Period, if Optionee exercises the Option without disapproval, Optionee shall take title to
the Option Property subject to all encumbrances, rights, restrictions and interests affecting the Option Property shown as exceptions
in the Title Report, except that Optionor shall remove, at or before the Close of Escrow, and shall cause the Option Property
to be delivered free and clear of, any deeds of trusts, mortgages, mechanics’ liens and/or other monetary liens (except
non-delinquent taxes and assessments) encumbering the Option Property, and not created, caused or consented to by Optionee (collectively,
the “Deemed Disapproved Exceptions”). Optionee shall have the right, prior to the Close of Escrow, to
disapprove any title exceptions reflected on any supplement to the Title Report issued by the Title Company (the “New
Exceptions”), except to the extent the New Exceptions arise or result from the activities of Optionee or Optionee’s
agents.

 

    	-5-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

5.1.1           Within
five (5) business days of receipt of Optionee’s notice of disapproval of any exceptions (including any New Exceptions),
Optionor shall notify Optionee and Escrow Holder whether Optionor is willing to remove, on or before the Close of Escrow, any
such item which Optionee has disapproved. If Optionor gives timely notice of its election to remove the disapproved item and thereafter
fails to do so before the Close of Escrow, then Optionor shall be deemed to be in default hereunder. If Optionor does not give
Optionee and Escrow Holder written notice within said five (5) business day period, Optionor shall
be deemed to have elected not to remove any such item which Optionee has disapproved. If there are exceptions which Optionee has
disapproved and which Optionor is not willing to remove at Optionor’s expense (or is deemed to have elected to not remove),
Optionee shall have until fifteen (15) days after the end of the Title Review Period or with respect to any New Exceptions, five
(5) business days after the date on which Optionor delivers to Optionee its written notice or, if Optionor has failed to timely
deliver to Optionee said notice, the date which is five (5) business days after the expiration of said five (5) business day period
to notify Optionor in writing of Optionee’s election to either (a) waive its disapproval and approve such exceptions,
or (b) terminate this Agreement and shall be repaid any previously paid Option Consideration. If Optionee elects to waive
its disapproval and approves any such exceptions, or if Optionee does not expressly elect to terminate by timely delivery of a
termination notice (or other notice of termination in connection with Optionee’s disapproval of any New Exceptions), such
exceptions then shall be deemed to become Permitted Exceptions at the Close of Escrow. In the event of the termination
of this Agreement by Optionee prior to Close of Escrow as provided above in this Section, the Option Consideration shall be refunded
to Optionee by Optionor and neither party shall have any further rights, duties, or obligations hereunder with respect to the
Option Property, except for such matters which expressly survive the termination of this Agreement as set forth herein.

 

5.2        Optionee’s
Investigation. Optionor shall deliver to Optionee legible photocopies of all reports, studies, documents and agreements (except
proprietary financial information) in Optionor’s possession or control that relate to the Option Property (collectively,
the “Property Documents”). Optionee shall have the right to conduct such independent investigations
as Optionee deems necessary or appropriate concerning the condition, use, sale, development or suitability of the Option Property
for Optionee’s intended purposes. Except as expressly provided in this Agreement, including, without limitation, under Sections
5.5 and 9, Optionor makes no representations or warranties with respect to any aspect or condition of the Option Property.

 

5.3        Right
to Enter. Pursuant to that certain Access and Indemnity Agreement, dated January 4, 2012, by and between Optionor and Optionee,
Optionor has granted to Optionee and its agents, employees, contractors and consultants a nonexclusive license to enter upon the
Option Property.

 

5.4        Notice
of Termination. Optionee shall have the right, at its sole option, to terminate this Agreement at any time prior to Optionee’s
delivery of the Closing Notice if Optionee determines in its sole, subjective discretion that it does not wish to purchase the
Option Property, by giving written notice of termination of this Agreement to Optionor and Escrow Holder. Upon receipt of such
written notice, this Agreement shall automatically terminate, and neither party shall have any further rights, duties
or obligations under this Agreement, except those provisions that by their terms survive the termination of this Agreement.

 

    	-6-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

5.5           “AS-IS”
Sale. OPTIONEE ACKNOWLEDGES THAT OPTIONEE IS PURCHASING THE OPTION PROPERTY "AS IS" AND "WHERE IS" AND
OPTIONEE CONFIRMS THAT, EXCEPT AS MAY BE EXPRESSLY OTHERWISE SET FORTH IN THIS AGREEMENT, OPTIONOR AND/OR OPTIONOR'S AGENTS HAVE
NOT MADE, AND ARE NOT MAKING, ANY REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, CONCERNING OR WITH RESPECT TO
THE OPTION PROPERTY, INCLUDING, WITHOUT LIMITATION, ITS ENVIRONMENTAL CONDITION, THE USE OR DEVELOPMENT THEREOF, THE REQUIREMENTS
OF ANY OR ALL FEDERAL, STATE, COUNTY OR LOCAL LAWS, REGULATIONS, ADMINISTRATIVE OR REGULATORY RULINGS OR ANY OTHER LEGAL MATTERS
RELATING TO THE OPTION PROPERTY, THE DEVELOPMENT OF THE OPTION PROPERTY OR ANY OTHER MATTERS WHATSOEVER. OPTIONEE ACKNOWLEDGES,
REPRESENTS AND WARRANTS THAT, WITH THE EXCEPTION OF THE REPRESENTATIONS, WARRANTIES AND COVENANTS MADE BY OPTIONOR IN THIS AGREEMENT,
OPTIONEE IS RELYING UPON OPTIONEE'S OWN INDEPENDENT INVESTIGATION OF THE OPTION PROPERTY IN CONNECTION WITH ITS EXECUTION AND
DELIVERY OF THIS AGREEMENT AND/OR OPTIONEE'S PERFORMANCE HEREUNDER. OPTIONEE ACKNOWLEDGES, REPRESENTS AND WARRANTS THAT AS OF
THE CLOSING IT HAS THOROUGHLY INSPECTED THE OPTION PROPERTY AND ALL FACTORS RELEVANT TO ITS USE, INCLUDING, BUT NOT LIMITED TO,
THE PHYSICAL CONDITION OF THE PROPERTY, THE CONDITION OF SOILS AND GROUNDWATER, THE ENVIRONMENTAL CONDITION, ALL UTILITIES AND
ALL PHYSICAL AND FUNCTIONAL ASPECTS OF THE PROPERTY; ALL MATTERS RELATING TO TITLE TO THE OPTION PROPERTY; TOGETHER WITH ALL FEDERAL,
STATE, COUNTY, MUNICIPAL AND OTHER LEGAL REQUIREMENTS CONCERNING THE PROPERTY SUCH AS TAXES, ASSESSMENTS, ZONING, ENVIRONMENTAL
REGULATION AND/OR CONDITION, USE PERMITS AND BUILDING CODES. OPTIONEE FURTHER ACKNOWLEDGES, REPRESENTS AND WARRANTS THAT, WITH
THE EXCEPTION OF THE REPRESENTATIONS, WARRANTIES AND COVENANTS MADE BY OPTIONOR IN THIS AGREEMENT, IT IS ACQUIRING THE PROPERTY
IN AN "AS IS" AND "WHERE IS" CONDITION, SOLELY IN RELIANCE ON ITS OWN INSPECTION(S) AND EXAMINATION(S). EXCEPT
AS SPECIFICALLY SET FORTH IN SECTION 9, NEITHER OPTIONOR NOR ITS AGENTS, REPRESENTATIVES, ATTORNEYS, OR EMPLOYEES, OR ANY
OF THEM, HAVE MADE REPRESENTATIONS OR WARRANTIES, DIRECT OR INDIRECT, EXPRESS OR IMPLIED, VERBAL OR WRITTEN, WITH RESPECT TO THE
OPTION PROPERTY, OR ITS FITNESS FOR ANY PARTICULAR USE OR PURPOSE.

 

6.          Termination
of Option; Liquidated Damages.

 

6.1          Termination
of Option. If Optionee fails to pay any of the Second Year Option Payment, Third Year Option Payment, Fourth Year Option Payment
or Fifth Year Option Payment when due, or if Optionee fails to give the Closing Notice by the Closing Notice Deadline, or if Escrow
fails to close on or before February 28, 2018, for any reason other than an Optionor default or the failure of an Optionee Condition
under Section 7.2, then this Agreement and the Option shall automatically terminate without further notice to Optionee
and shall be of no further force or effect. Optionee shall pay all Escrow and title cancellation charges, and neither party shall
have any further rights, duties or obligations to the other with respect to the Option Property, except for those obligations
that survive the termination of this Agreement. Except to the extent Escrow fails to close due to a Optionor default or due to
the failure of an Optionee Condition under Section 7.2, the Option Consideration in the possession of Optionor shall be
retained by Optionor and Escrow Holder shall immediately deliver the Quitclaim Deed to Optionor, who shall then record such Quitclaim
Deed in the Official Records of the County of Ventura.

 

    	-7-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

6.2           Liquidated
Damages. IF OPTIONEE FAILS TO COMPLETE THE PURCHASE OF THE OPTION PROPERTY AS A RESULT OF OPTIONEE’S BREACH OF ITS
OBLIGATIONS UNDER THIS AGREEMENT, OPTIONOR SHALL BE ENTITLED TO OBTAIN AND KEEP THE OPTION CONSIDERATION RECEIVED AS OF THE DATE
OF THE BREACH AS LIQUIDATED DAMAGES, AS OPTIONOR’S SOLE AND EXCLUSIVE LEGAL OR EQUITABLE REMEDY FOR OPTIONEE’S FAILURE
TO CLOSE ESCROW DUE TO A BREACH OF OPTIONEE’S OBLIGATIONS UNDER THIS AGREEMENT. IN LIGHT OF THE DIFFICULTY THE PARTIES WOULD
HAVE IN DETERMINING OPTIONOR’’S ACTUAL DAMAGES AS A RESULT OF SUCH A BREACH, IT IS EXPRESSLY UNDERSTOOD AND AGREED
BY THE PARTIES THAT THE AMOUNT OF THE OPTION CONSIDERATION THEN RELEASED TO OPTIONOR IS A REASONABLE ESTIMATE OF THE EXTENT TO
WHICH OPTIONOR WOULD BE DAMAGED BY SUCH A BREACH BY OPTIONEE. THE PARTIES ACKNOWLEDGE THAT THE PAYMENT OF SUCH LIQUIDATED DAMAGES
IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369, BUT IS INTENDED
TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, 1676 AND 1677. NOTWITHSTANDING THE
FOREGOING, IN NO EVENT SHALL THIS SECTION LIMIT THE DAMAGES RECOVERABLE BY OPTIONOR AGAINST OPTIONEE DUE TO OPTIONEE'S OBLIGATION
TO INDEMNIFY OPTIONOR IN ACCORDANCE WITH THE PROVISIONS OF THE ACCESS AND INDEMNITY AGREEMENT REFERENCED IN SECTION 5.3.
BY SEPARATELY INITIALING THIS SECTION, BOTH OPTIONOR AND OPTIONEE ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTAND THE ABOVE PROVISION
COVERING LIQUIDATED DAMAGES, AND THAT EACH PARTY WAS REPRESENTED BY COUNSEL WHO EXPLAINED THE CONSEQUENCES OF THIS LIQUIDATED
DAMAGES PROVISION AT THE TIME THIS AGREEMENT WAS EXECUTED.

 

	 	OPTIONOR’S INITIALS:	______	OPTIONEE’S INITIALS:	______
	 	 	______	 	 
	 	 	______	 	 

 

7.          Conditions
to Close of Escrow.

 

7.1           Conditions
for the Benefit of Optionee. Optionee’s obligation to purchase the Option Property, and the Close of Escrow, shall be
conditional and contingent upon the satisfaction, or written waiver by Optionee, as and when required below, of each of the following
conditions (collectively, the “Optionee Conditions”), all of which shall also constitute covenants of
Optionor:

 

7.1.1           Representations
and Warranties. The representations and warranties of Optionor set forth in Section 9 shall be true and correct in
all material respects as of the Close of Escrow.

 

    	-8-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

7.1.2           Title
Insurance. Title Company shall be committed to issue to Optionee at Optionor’s sole expense, as of the
Close of Escrow, a CLTA Standard Coverage Owner's Policy of Title Insurance with liability limits equal to the Purchase Price,
insuring fee title as being vested in Optionee, free of the encumbrances that Optionor is required to remove under Section
5.1.

 

7.1.3           No
Material Change. There shall have been no material adverse change in the physical condition or title of the Property.

 

7.1.4           Performance
by Optionor. Optionor shall have materially performed, observed and complied with all covenants, agreements and conditions
required by this Agreement to be performed, observed and complied with by Optionor prior to, or as of, the Close of Escrow.

 

7.2          Failure
of Optionee Conditions. If any of the Optionee Conditions has not been satisfied (or is not in a position to be satisfied)
or waived by Optionee in writing on or before Close of Escrow, then Optionee shall have the right to terminate this Agreement
and the Escrow by written notice of termination delivered to Optionor and Escrow Holder. In the event of such termination of this
Agreement by reason of the failure of any such Optionee Condition, the Option Consideration shall be returned to Optionee, each
party shall pay one half (1/2) of any Escrow and title cancellation charges, and neither party shall have any further rights,
duties or obligations under this Agreement, except for those obligations which expressly survive the termination of this Agreement.

 

8.          Close
of Escrow.

 

8.1         Close
of Escrow. The Close of Escrow shall take place through Escrow on or before the thirtieth (30th) day after the
date on which the Closing Notice has been given to Optionor and Escrow Holder, but in no event later than February 28, 2018 (the
“Outside Closing Date”). For purposes of this Agreement, the terms “Closing Date”
and “Close of Escrow” shall mean and refer to the date of recordation, in the Official Records of the
County of Ventura, of the Grant Deed conveying title to the Option Property to Optionee. In the event the Close of Escrow has
not occurred by the Outside Closing Date, either party (provided such party is not in breach of its obligations hereunder) shall
have the right to terminate this Agreement by written notice of termination to the other and to Escrow Holder, in which event
this Agreement shall terminate, and neither party shall have any further rights, duties or obligations hereunder, except for those
obligations which by their terms survive the termination of this Agreement.

 

8.2         Deliveries
by Optionor to Escrow Holder. Upon receipt of the Closing Notice, Optionor hereby covenants and agrees to deliver to Escrow
Holder a fully executed and acknowledged Grant Deed, substantially in the form attached hereto as Exhibit D (the “Grant
Deed”), conveying the Option Property to Optionee, or to Optionee’s nominee, in a form reasonably acceptable
to Optionee, and all other documents and funds required hereunder or otherwise reasonably required by Escrow Holder to be deposited
by Optionor to close the Escrow.

 

    	-9-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

8.3           Deliveries
by Optionee to Escrow Holder. Optionee hereby covenants and agrees to deliver to Escrow Holder, at least one (1) business
day prior to the Closing Date, the Cash Payment in immediately available funds, and all funds necessary to pay Optionee’s
share of the Escrow fees, prorations, and other charges, and all other documents required hereunder or otherwise reasonably required
by Escrow Holder to be deposited by Optionee to close the Escrow.

 

8.4           Title
Policy. Optionor shall pay the premium for the Title Policy. If Optionee requires an American Land Title Association (“ALTA”)
Owner’s Extended Coverage Policy of title insurance, or a binder in lieu of a policy of title insurance, then: (a) Optionee
shall make such election in a timely manner so as to not interfere with or delay the Close of Escrow; (b) Optionor shall
pay only the cost of the Standard Coverage CLTA Owner’s Policy of title insurance; and (c) Optionee shall pay the
additional cost of obtaining such ALTA Extended Coverage Policy or binder including, without limitation, any survey cost.

 

8.5           Escrow
Cancellation. If the Close of Escrow fails to occur due to Optionor’s default, and Optionee elects to terminate this
Agreement, Optionor shall pay all Escrow Cancellation Charges and the Option Consideration shall be immediately refunded to Optionee
by Optionor. If the Close of Escrow fails to occur due to Optionee’s default, Optionee shall pay all Escrow Cancellation
Charges and the Option Consideration shall be retained by Optionor. “Escrow Cancellation Charges” means
all fees, charges and expenses of Escrow Holder hereunder and all fees, charges and expenses related to the services of Escrow
Holder as the Title Company in connection with the issuance of the Title Report and other title matters hereunder.

 

8.6           Costs
and Prorations. Except as otherwise provided herein, Optionee and Optionor shall each pay one-half (1/2) of Escrow Holder’s
escrow fees for the Escrow. Optionor shall bear the cost of all documentary transfer taxes and the cost of the Title Policy. All
recording costs or fees and all other costs or expenses not otherwise provided for in this Agreement shall be apportioned or allocated
between Optionee and Optionor in the manner customary in the County of Ventura. All nondelinquent general and special real property
taxes, bonds and assessments shall be prorated through Escrow, based upon the latest available tax bills using customary escrow
procedures.

 

8.7           Documents.
Optionee shall, subject to any contractual restrictions imposed in contracts with third parties, within five (5) business
days after receipt of written request from Optionor, deliver to Optionor, at no cost to Optionor, copies of all studies, tests,
surveys, applications, maps, agreements, plans and other documents (except proprietary financial information) related to the Option
Property in Optionee’s possession or control (collectively, “Diligence Documents”), whether previously
delivered to Optionee by Optionor or obtained by Optionee in connection with its investigations of the Option Property (except
that the foregoing shall not include any architectural renderings or market studies); provided, however,
that copies of such Diligence Documents shall be delivered to Optionor without any representation or warranty of any kind as to
the accuracy, content or completeness of such Diligence Documents and without liability to Optionee.

 

    	-10-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

8.8           Like-Kind
Exchange Cooperation. The parties acknowledge that one or more of the individuals who comprise Optionor may desire to complete
this transaction in whole or in part as one or more exchanges which will qualify for non-recognition of gain under Section 1031
of the Internal Revenue Code of 1986, and Section 18031 of the California Revenue and Taxation Code, as heretofore or hereafter
amended. In such event, Optionee agrees to reasonably cooperate with Optionor to effect such an exchange transaction if requested
to do so by Optionor, including, but not limited to, entering into agreements, escrow instructions and other documents reasonably
acceptable to Optionee in order to comply with said Sections 1031 and 18031 and the regulations and/or rulings thereunder; provided,
however, that Optionee shall incur no additional costs or expenses in connection therewith nor shall Optionee be
required to take legal title to any exchange property. In the event of such exchange, Optionor shall indemnify, defend and hold
harmless Optionee from any and all Claims incurred by Optionee arising from the exchange, which Claims would not have been incurred
if this were a cash sale without an exchange. The inability of Optionor to effect an exchange shall not delay the Close of Escrow
or relieve Optionor of the obligation to sell the Option Property to Optionee pursuant to the terms of this Agreement.

 

9.          Representations
and Warranties of Optionor. Each Optionor hereby represents and warrants to Optionee as of the Effective Date, as follows,
which representations and warranties shall be true and correct in all material respects as of the Closing Date:

 

9.1           Power.
Each Optionor has the legal power, right and authority to enter into this Agreement and the instruments referenced herein,
to perform their obligations hereunder and to consummate the transaction contemplated hereby and the individuals executing this
Agreement on behalf of each Optionor have the authority to bind such Optionor to Optionor’s obligations set forth herein.

 

9.2           Title.
Optionor has good and marketable title to the Property. Except as shown on the Title Report and the Weatherford Land Lease
and the Williams Homes Ground Space Lease Agreement, each described in Section 11.2, there are no encumbrances, liens,
covenants, restrictions, reservations, options, rights-of-way, easements, encroachments, claims or other matters affecting title
to or possession of the Property.

 

9.3           Requisite
Action. All requisite action has been taken by each Optionor in connection with the entering into of this Agreement, the execution
and delivery of the instruments referenced herein, and the consummation of the transactions contemplated hereby.

 

9.4           Enforceability.
This Agreement constitutes the legal, valid and binding obligation of each Optionor, enforceable against each Optionor in
accordance with its terms, subject only to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable
principles affecting or limiting rights of contracting parties generally.

 

9.5           Leases.
Except for the Weatherford Land Lease and the Williams Homes Ground Space Lease Agreement, each described in Section 11.2,
there are no oral or written leases or other occupancy agreements affecting all or any part of the Option Property and there are
no written promises, understandings, agreements or commitments between any Optionor and/or any other occupant affecting the Option
Property.

 

    	-11-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

9.6           No
Contracts. Except for the Weatherford Land Lease and the Williams Homes Ground Space Lease Agreement, each described in Section
11.2, there are no concession agreements, management agreements, service contracts or other agreements (collectively,
“Agreements”), affecting any part of the Property or the operation or maintenance thereof which will
be binding upon Optionee or otherwise remain in effect after the Closing, nor shall any Optionor enter into any such Agreements
after the Opening of Escrow.

 

9.7           Hazardous
Substances. To the Best Knowledge of Optionor, the Option Property has been used for equipment storage for approximately twenty-five
(25) years. Prior to that time, a portion of the Option Property was a producing orchard. As part of this agricultural use, Optionor’s
predecessors in title and tenants have used and discharged certain chemical fertilizers, chemical pesticides and other substances,
the exact nature or identity of which are unknown to Optionor, which substances may be considered “hazardous” or “toxic”
substances under federal law, state law, and/or city and county ordinances. Optionor hereby warrants, to the Best Knowledge of
Optionor, that there are no tanks on or below the surface of the Option Property and there is no asbestos or asbestos related
product on the Option Property. As of the Effective Date, Optionor is not aware of any condition or use, other than stated above
and as communicated by Optionee to Optionor after the preliminary results of a Phase I Environmental Site Assessment, which would
have resulted in a hazardous substance condition which might require remediation and/or removal or which otherwise violates any
applicable federal, state or local hazardous substance law. Except as disclosed above and as communicated by Optionee to Optionor
after the preliminary results of a Phase I Environmental Site Assessment, to the Best Knowledge of Optionor, the Option Property
contains no hazardous substances and, to the Best Knowledge of Optionor, no hazardous substances have been released, disposed
of, generated, produced, or stored on or under the Option Property.

 

9.8           No
Actions. To the Best Knowledge of Optionor, there is no action, suit, proceeding or investigation pending or threatened against
Optionor or the Option Property which would become a cloud on Optionee’s title or have a material adverse impact upon the
Option Property or any portion thereof, or which questions the validity or enforceability of the transactions contemplated by
this Agreement or any action taken pursuant hereto or thereto, in any court or before or by any federal, district, county, or
municipal department, commission, board, bureau, agency or other governmental instrumentality or any dispute resolution agency.

 

9.9           No
Condemnation. Neither the whole nor any portion of the Property is subject to temporary requisition or use by any governmental
authority of which any Optionor has received written notice, nor is there pending as of the date hereof any condemnation proceeding
affecting the Option Property or any portion thereof of which any Optionor has received written notice.

 

    	-12-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

9.10         Property
Documents. To the Best Knowledge of Optionor, the Property Documents constitute all reports, studies, documents and agreements
(except proprietary financial information) in Optionor’s possession or control that relate to the Option Property and are
true and complete copies.

 

9.11         Complete
Disclosure. Optionor has disclosed to Optionee any and all matters known to the Best Knowledge of Optionor affecting or in
any way relating to the Property, or any portion thereof, and Optionee's use and/or development of the Property, or any portion
thereof.

 

If any material change
in condition or circumstances renders any of the foregoing representations or warranties of Optionor inaccurate in any material
respect between the Effective Date and the Close of Escrow, Optionor shall immediately deliver written notice to Optionee of such
change and Optionee shall have a period of 10 days after such written notice (and the Closing Date shall be extended as necessary
so that it does not occur until the expiration of such 10 day period) to accept such changed representation or warranty or to
terminate this Agreement , by giving written notice to Optionor. In the event of such termination, Optionor shall immediately
return to Optionee all Option Consideration previously paid by Optionee, and the Escrow shall be canceled and the parties shall
thereafter be released from all obligations hereunder. Alternatively, Optionee may waive the effect of any such changed warranty
or representation and close the purchase and sale of the Property. If Optionee receives no such notice, then each of the representations
and warranties contained in this Section 9 are acknowledged by Optionor to be material and to be relied upon by Optionee
in proceeding with this transaction, shall be deemed to have been remade by Optionor as of the Closing and shall survive for a
period of one (1) year after the Close of Escrow.

 

10.         Representations
and Warranties of Optionee. Optionee hereby represents and warrants to Optionor as of the Effective Date, as follows, which
representations and warranties shall be true and correct in all material respects as of the Closing Date:

 

10.1         Organization.
Optionee is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware.

 

10.2         Authority
and Enforceability. Optionee has the legal capacity and authority to enter into and perform its obligations under this Agreement.
The execution, delivery and performance by Optionee of this Agreement and the consummation by Optionee of the transactions contemplated
hereby have been duly authorized by all necessary corporate action on the part of Optionee. This Agreement has been duly and validly
executed and delivered by Optionee and constitutes the legal, valid and binding obligation of Optionee, enforceable against Optionee
in accordance with its terms, except to the extent that such enforceability: (a) may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to creditors’ rights generally; and (b) is subject to general
principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). The execution,
delivery and performance by Optionee of this Agreement and the consummation by Optionee of the transactions contemplated hereby:
(i) do not require the consent, approval, clearance, waiver, order or authorization of any third party; (ii) do
not violate any provision of the Articles of Incorporation or Bylaws of Optionee; (iii) do not conflict with or violate
any permit, concession, grant, franchise, statute, law, rule or regulation of any governmental entity or any order, judgment,
award or decree of any court or other governmental entity to which Optionee is subject; and (iv) do not conflict with,
or result in any breach of, or default or loss of any right under (or an event or circumstance that, with notice or the lapse
of time, or both, would result in a default), or the creation of an encumbrance pursuant to, or cause or permit the acceleration
prior to maturity of any amounts owing under, any indenture, mortgage, lease, or other agreement to which Optionee is a party.

 

    	-13-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

10.3        Investigation;
Sole Reliance. Optionee has made, or will make, such independent investigations as Optionee deems necessary in Optionee’s
sole, subjective discretion, advisable or material concerning all aspects of the Option Property, including, but not limited to,
the condition, use, sale, development or suitability of the Option Property for Optionee’s intended purposes. In that regard,
except for the express representations and warranties of Optionor, set forth in this Agreement, or as otherwise specifically provided
in this Agreement, Optionee expressly represents and warrants to Optionor that Optionee is relying solely upon its own inspection,
investigation and analysis of the Option Property in electing to purchase the Option Property.

 

11.         Additional
Representations, Warranties and Covenants of Parties.

 

11.1        General
Assignment. Optionor agrees, concurrently with the Close of Escrow, to assign to Optionee all of Optionor’s right, title
and interest, if any, in and to all warranties, guarantees, licenses, permits, plans, maps, entitlements, approvals, and rights
under any documents and instruments pertaining to the Option Property.

 

11.2        Leases.

 

(a)          Weatherford
Lease. Optionor entered into that certain Land Lease for Office and Shop Building, dated September 1, 1979, as subsequently
amended, with Weatherford U.S., L.P., a Louisiana limited partnership ("Weatherford"), that includes the
approximately 3.91 acre parcel identified as APN 107-0-043-025. Weatherford currently uses the approximately 3.91 acre parcel
for equipment storage in exchange for monthly rent in the amount of [*]. On or after
the Closing Date, Optionee may elect to give Weatherford one (1) year prior written notice for termination of the Lease as to
the approximately 3.91 acre parcel. Prior to the Close of Escrow, Optionor shall execute and deliver into Escrow an assignment
to Optionee of all of Optionor's rights and obligations under the Weatherford Land Lease, in a form reasonably acceptable to Optionee.

(b)          Williams
Homes Lease. Optionor entered into that certain Ground Space Lease Agreement for Sign Placement, dated November 29, 2012,
with Williams Homes, Inc. (“Williams”). Williams has the right for signage at the south-east corner
of Highway 126 and S. Hallock Drive in exchange for monthly rent in the amount of [*].
On or after the Closing Date, Optionee may elect to give Williams one (1) year prior written notice for termination of the Ground
Space Lease Agreement. Prior to the Close of Escrow, Optionor shall execute and deliver into Escrow an assignment to Optionee
of all of Optionor's rights and obligations under the Ground Space Lease Agreement, in a form reasonably acceptable to Optionee.

 

    	-14-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

11.3       Mutual
Release. As additional consideration for the transactions contemplated herein, effective upon the Close of Escrow, the parties
hereby agree to the following:

 

11.3.1   Release
of Optionor. With the exception of the representations, warranties and covenants of Optionor set forth herein, Optionee, on
behalf of itself and its officers, directors, shareholders, employees, agents, administrators, representatives, successors, and
assigns hereby releases and discharges Optionor and its executors, heirs, administrators, representatives, successors and assigns
from all liability, claims, demands, actions, or causes of action of any kind or character, whether fixed or contingent, known
or unknown, arising from or relating to the Option Property and accruing after the Close of Escrow.

 

11.3.2   Release
of Optionee. With the exception of the representations, warranties and covenants of Optionee set forth herein, each Optionor
on behalf of itself and their executors, administrators, beneficiaries, representatives, successors, and assigns hereby releases
and discharges Optionee and its representatives, successors and assigns from all liability, claims, demands, actions, or causes
of action of any kind or character, whether fixed or contingent, known or unknown, arising from or relating to the Option Property
and accruing prior to the Close of Escrow.

 

11.3.3   Unknown
or Unsuspected Consequences. The parties understand and acknowledge that Sections 11.3.1 and 11.3.2 apply to
and include all unknown or unsuspected consequences or results arising from or relating to the relationships, transactions, occurrences,
or agreements referred to in those Sections. Optionor and Optionee, on behalf of themselves and their respective related parties
described in Sections 11.3.1 and 11.3.2, represent and warrant that they have read the contents of California Civil
Code Section 1542, which provides as follows:

 

A general release does not
extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release,
which if known by him or her must have materially affected his or her settlement with the debtor.

 

OPTIONOR AND OPTIONEE,
FOR THEMSELVES AND THEIR RESPECTIVE RELATED PARTIES, EXPRESSLY WAIVE ANY AND ALL RIGHTS AND BENEFITS UNDER CALIFORNIA CIVIL CODE
SECTION 1542.

 

11.3.4   Nature
of Release. Each party hereby acknowledges that they have read this Section, that they fully understand the contents of this
Section, and that THIS IS A GENERAL RELEASE GIVING UP ALL RIGHTS WITH RESPECT TO THE MATTERS THAT ARE BEING RELEASED UNDER THIS
AGREEMENT.

 

    	-15-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

12.         Broker’s
Commission. Optionor and Optionee each represents to the other that no brokerage commission, finder’s fee or other compensation
of any kind is due or owing to any real estate broker or other person or entity in connection with the transactions covered by
this Agreement. Each party agrees to and does hereby indemnify and hold the other free and harmless from and against any and all
costs, demands, liabilities, losses, damages, claims, causes of action or proceedings (including reasonable attorneys’ fees)
which may result from any broker, agent or finder, licensed or otherwise, claiming through, under or by reason of the conduct
of the indemnifying party in connection with this transaction.

 

13.         Indemnification.
Optionor covenants and agrees to indemnify and hold Optionee harmless in respect of: (a) all liabilities of Optionor
of any nature, whether accrued, absolute, contingent or otherwise; (b) any damage resulting from any breach of Optionor’s
representations, warranties and covenants herein; (c) all liabilities arising from or connected with the Property and accruing
before the Close of Escrow; and (d) all actions, suits, proceedings, demands, assessments, judgments, costs and expenses
incident to any of the foregoing, including reasonable attorneys’ fees. The provisions of this Section shall survive for
a period of one (1) year after the Close of Escrow or any earlier termination of this Agreement.

 

14.         Default
and Remedies. Notwithstanding any other provision herein, if any obligation hereunder is not performed as herein provided:
(1) the party claiming that a default has occurred shall give written notice of that default to the other party; and (2) there
shall be the following remedies:

 

(a)          In
the event of a material default by Optionee, if the default is the failure to close the Escrow when obligated, Optionee shall
have only 5 business days after delivery of written notice of such default within which to cure the default, otherwise, Optionee
shall have 10 business days to cure any default. Optionor’s written notice shall describe the nature of Optionee’s
default in reasonable detail so that Optionee is notified of the steps and actions Optionee must effect to cure the default, and
in the case of a default other than a failure to close the Escrow when obligated, if the default cannot reasonably be cured within
10 days, Optionee shall have such longer period as may be necessary to cure, so long as Optionee commences to cure within the
10-day period and diligently pursues the cure to completion. If Optionee fails to cure the default within the applicable cure
period, Optionee shall be in breach. If Optionee’s breach is not timely cured, then Optionor’s sole remedy shall be
to retain all Option Consideration paid by Optionee as liquidated damages pursuant to Section 6.2. In no event shall Optionee
have liability for any special, incidental, consequential, punitive or other damages.

 

(b)          In
the event of a material default, misrepresentation or breach of a warranty or covenant by Optionor, following delivery of a notice
of default by Optionee if the default is not cured by Optionor within 10 business days, (i) Optionee may elect to terminate this
Agreement, in which case Optionor shall immediately return to Optionee all Option Consideration and shall pay all Escrow and title
cancellation charges, the Escrow shall be canceled, and the parties shall thereafter be released from all obligations hereunder,
except for those obligations which expressly survive the termination of this Agreement, which provisions shall survive for a period
of one (1) year after the Close of Escrow, or (ii) Optionee may elect to treat this Agreement as being in full force and effect
and Optionee shall have the right to an action for specific performance.

 

    	-16-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

15.         Confidentiality
of Agreement. Optionee acknowledges that all information with respect to the Option Property furnished to or to be obtained
by Optionee is so furnished or obtained on the condition that Optionee, after the date of this Agreement until the Close of Escrow,
use Commercially Reasonable Efforts to maintain the confidentiality thereof. The parties agree to use their Commercially Reasonable
Efforts to maintain the confidentiality of this Agreement, and to hold in strict confidence, and not to disclose to any other
person or entity without the prior written consent of the other party, all such information, unless and until the Closing. Notwithstanding
the forgoing, such information may be disclosed to individuals or entities reasonably necessary to consummate the transactions
contemplated herein (such as lenders, engineers, environmental consultants, attorneys, accountants and tax advisors).

 

16.         Miscellaneous
Provisions.

 

16.1         Successors
and Assigns. This Agreement may not be assigned by Optionee without the prior written consent of Optionor, with such consent
to be given or withheld in Optionor’s sole and absolute discretion; provided, however, that
Optionee may assign its rights hereunder to an entity in which Optionee owns a majority interest without the consent of Optionor.
Subject to the preceding sentence, this Agreement shall inure to the benefit of and shall be binding upon the executors, administrators,
beneficiaries, representatives, successors and assigns of Optionor and the officers, directors, shareholders, employees, agents,
administrators, representatives, successors and assigns of Optionee.

 

16.2         Attorneys’
Fees. In the event of any claim, dispute or controversy arising out of or relating to this Agreement, including an action
for declaratory relief, the prevailing party in such action or proceeding shall be entitled to recover its court costs and reasonable
out-of-pocket expenses including, but not limited to, reasonable attorneys’ fees, to be fixed by the court. Such recovery
shall include court costs, out-of-pocket expenses and attorneys’ fees on appeal, if any. The court shall determine the party
that is the “prevailing party,” whether or not the dispute or controversy proceeds to final judgment.

 

16.3         Notices.
Any and all notices, demands, requests or other communications required or permitted by this Agreement or by law to be served
on, given to or delivered to any party hereto by any other party to this Agreement shall be in writing and shall be deemed duly
served, given or delivered upon delivery: (a) by facsimile transmission or other electronic means (confirmed by any of
the methods that follow); (b) by courier service or overnight delivery service (with proof of service); or (c) by
certified or registered mail (return receipt requested and first-class postage prepaid), and addressed as follows:

 

	 	If to Optionee:	Limoneira Company
	 	 	Attn: Harold Edwards, President and CEO
	 	 	1141 Cummings Road
	 	 	Santa Paula, CA 93060
	 	 	 
	 	 	Tel: (805) 525-5541
	 	 	Facsimile: (805) 525-8211
	 	 	E-mail: hedwards@limoneira.com

 

    	-17-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

	 	If to Optionor:	Zella R. de Inbanez
	 	 	Post Office Box 280
	 	 	Tecate, CA  91980-0280
	 	 	 
	 	 	Tel: 011-526-654-4774
	 	 	Facsimile: 011-526-655-3015
	 	 	E-mail: zella@prodigy.net.mx  
	 	 	 
	 	And	Jason B. Rushing
	 	 	1934 Camino Vera Cruz
	 	 	Camarillo, CA 93010
	 	 	 
	 	 	Tel: (805) 402-1022
	 	 	E-mail: jbrushin@aol.com
	 	 	 
	 	And	Jennifer R. Rushing
	 	 	10619 Red Ribbon Road
	 	 	Versailles, MO 65084-4166
	 	 	 
	 	 	Tel: (____) ___________
	 	 	E-mail: jenncria@yahoo.com
	 	 	 
	 	If to Escrow Holder:	LandAmerica Lawyer’s Title
	 	 	Attn: Judy Cook, Escrow Officer
	 	 	2751 Park View Court, Suite 241
	 	 	Oxnard, CA 93036
	 	 	 
	 	 	Tel: (805) 484-2701
	 	 	Facsimile: (805) 988-0269
	 	 	E-mail: jcook@ltic.com

 

Any notice that is addressed and delivered
in the manner herein provided shall be conclusively presumed to have been duly served, given or delivered to the party to which
it is addressed: (1) on the third day after the day it is so placed in the mail; (2) on the day of delivery by facsimile
transmission or other electronic means (if confirmed by any of the methods above); (3) on the day of delivery by courier
service or overnight delivery (with proof of service); or (4) upon the intended recipient’s refusal to accept delivery.
Any notice, demand, request or other communication required or permitted by this Agreement or by law shall refer to the specific
Section of this Agreement under which notice, demand, request or other communication is being given and describe with specificity
the reason for such notice, demand, request or other communication. Any party may change its address for the purposes of this
Agreement, by giving notice of the address change, in the manner required by this Section, to the other parties.

 

    	-18-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.  

 

16.4         Waiver;
Consent. Either party may specifically and expressly waive in writing any breach by the other party of any provision of this
Agreement, but no such waiver shall constitute a further or continuing waiver of any preceding or succeeding breach of the same
or any other provision. The consent by one party to any act by the other for which such consent was required shall not be deemed
to imply consent or waiver of the necessity of obtaining such consent for the same or any similar acts in the future.

 

16.5         Survivability.
All covenants of Optionee or Optionor that are intended hereunder to be performed in whole or in part after the Closing, and
all representations, warranties and indemnities by either party to the other, shall survive the Closing, and be binding upon and
inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns for a period
of one (1) year after the Closing Date.

 

16.6         Further
Documents and Acts. Each of the parties hereto agrees to cooperate in good faith with each other, and to execute and deliver
such further documents and perform such other acts as may be reasonably necessary or appropriate to consummate and carry into
effect the transactions contemplated under this Agreement.

 

16.7         Entire
Agreement. This Agreement, its Exhibits and the Access and Indemnity Agreement constitute the entire agreement between the
parties pertaining to the subject matter hereof, and the final, complete and exclusive expression of the terms and conditions
thereof. All prior agreements, representations, negotiations and understandings of the parties, oral or written, express or implied,
are hereby superseded and merged herein.

 

16.8         Time.
Time is of the essence with respect to every provision of this Agreement in which
time is an element. Any references in this Agreement to time for performance of obligations or elapsed time shall mean
consecutive calendar days, months, or years, as applicable, unless otherwise explicitly indicated herein.

 

16.9         Governing
Law. This Agreement shall be construed and governed by the laws of the State of California, without regard to the conflict
of laws rules of the State of California or any other jurisdiction that would call for the application of the laws of any jurisdiction
other than the State of California. By execution and delivery of this Agreement, the parties hereto agree and accept that any
legal action or proceeding with respect to this Agreement shall be brought in the federal or state courts for the State of California,
County of Ventura, and the parties expressly waive any objection to personal jurisdiction, venue or forum non conveniens.

 

16.10         Invalidity
of Provision. If any provision of this Agreement as applied to either party or to any circumstance shall be adjudged by a
court of competent jurisdiction to be void or unenforceable for any reason, the same shall in no way affect (to the maximum extent
permissible by law) any other provision of this Agreement, the application of any such provision under circumstances different
from those adjudicated by the court, or the validity or enforceability of the Agreement as a whole; provided, however,
that the invalidity or unenforceability of such provision does not materially adversely affect the benefits accruing to, or the
obligations imposed upon, any party hereunder.

  

    	-19-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions. 

 

16.11   Captions;
Exhibits. The titles and captions contained in this Agreement are inserted herein only as a matter of convenience and for reference
and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision hereof. Unless otherwise
specified to the contrary, all references to Sections are references to Sections of this Agreement and all references to Exhibits
are references to Exhibits to this Agreement. All Exhibits attached hereto are hereby incorporated into this Agreement and are
hereby made a part hereof as if set out in full in this Agreement.

 

16.12   Commercially
Reasonable Efforts. For purposes of this Agreement, the term “Commercially Reasonable Efforts”
shall mean, as to a party hereto, an undertaking by such party to perform or satisfy an obligation or duty or otherwise act in
a manner reasonably calculated to obtain the intended result by action or expenditure not disproportionate or unduly burdensome
in the circumstances, which means, among other things, that such party shall not be required to: (a) expend funds other
than for payment of the reasonable and customary costs and expenses of employees, counsel, consultants, representatives or agents
of such party in connection with the performance or satisfaction of such obligation or duty or other action; (b) institute
litigation or arbitration as a part of its Commercially Reasonable Efforts; (c) act in a manner inconsistent with the party’s
overall business strategy; (d) take actions which would result in a materially adverse change in the benefits to such party
under this Agreement; (e) undertake any action that may cause any material adverse change to its business; (f) expend
any other material funds; (g) incur any other material burden; or (h) act in a manner contrary to its normal commercial
practices. The failure to accomplish a given objective is not an indication that the obligated party did not in fact utilize its
Commercially Reasonable Efforts in attempting to accomplish the objective.

 

16.13   Knowledge.
As used in this Agreement, “Best Knowledge” of Optionor, or words to that effect. includes, but is
not limited to, the actual knowledge or awareness of the Optionor without investigation or inquiry. As used in this Agreement,
“Best Knowledge” of Optionee, or words to that effect, means the actual knowledge or awareness of Optionee’s
officers and other individuals exercising supervisory authority without investigation or inquiry.

 

16.14   Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall constitute an original, and all of which shall constitute
a fully-executed Agreement. Transmittal and receipt of a facsimile or emailed copy of this Agreement with facsimile or scanned
and emailed signatures shall be binding on the parties hereto. The failure to deliver the original executed signature copy and
the non-receipt of the original executed signature copy shall have no effect upon the binding and enforceable nature of this Agreement.

 

[Remainder of page left blank –
signatures on next page.]

 

    	-20-

    	 

    

 

[*] Certain information in this document
has been omitted and filed separately with the Securities and 

Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions. 

 

IN WITNESS WHEREOF,
Optionor and Optionee have executed this Agreement as of the Effective Date.

 

	Optionor:	 	Optionee:
	 	 	 
	 	 	LIMONEIRA COMPANY,
	/s/ Jason B. Rushing	 	a Delaware corporation
	JASON B. RUSHING, Trustee of the	 	 
	JASON B. RUSHING TRUST dated	 	 
	July 10, 1997	 	 
	 	 	By:	/s/ Harold S. Edwards
	 	 	Name:	Harold S. Edwards
	/s/ Jennifer R. Rushing	 	Its:	President and Chief Executive Officer
	JENNIFER R. RUSHING, Trustee of the	 	 
	JENNIFER RUSHING REVOCABLE	 	 
	TRUST dated March 19, 2008	 	 
	 	 	 
	/s/ Zella A. Rushing	 	 
	ZELLA A. RUSHING, Trustee of the 1988 	 	 
	ZELLA RUSHING TRUST dated	 	 
	May 12, 1988	 	 

 

[SIGNATURE PAGE FOR OPTION AGREEMENT

AND ESCROW INSTRUCTIONS]

 

    	-21-

    	 

    

 

EXHIBIT A

 

OPTION AGREEMENT

AND ESCROW INSTRUCTIONS

 

Property Description

 

Parcel A:

 

Parcel 2, in the City of Santa
Paula, County of Ventura, State of California, as per map filed in Book 30, Pages 98 and 99 of Parcel Maps, in the office of the
County Recorder of said County

 

EXCEPT from a portion of said
land, one-half of the oil and mineral rights as reserved by Clyde Williams, et ux., in deed recorded May 28, 1954, in Book 1206,
Page 8 of Official Records.

 

ALSO EXCEPT from a portion of
said land all oil, gas and mineral rights below a depth of 500 feet from the surface, without the right of surface entry as reserved
by Alfred E. Emard, et al., in deed recorded December 24, 1969, in Book 3598, Page 155 of Official Records.

 

Parcel B:

 

Parcel 2 of Parcel Map No. 91-32,
in the City of Santa Paula, County of Ventura, State of California, as per Map recorded in Book 53, Pages 27 and 28 of Parcel Maps,
in the office of the County Recorder of said County.

 

EXCEPT from a portion of said
land, one-half of the oil and mineral rights as reserved by Clyde Williams, et ux., in deed recorded May 28, 1954, in Book 1206,
Page 8 of Official Records.

 

ALSO EXCEPT from a portion of
said land all oil, gas and mineral rights below a depth of 500 feet from the surface, without the right of surface entry as reserved
by Alfred E. Emard, et al., in deed recorded December 24, 1969, in Book 3598, Page 155 of Official Records.

 

Parcel C:

 

That portion of the North 1/2
of the Southwest 1/4 of the Northwest 1/4 of Section 12, Township 3 North, Range 21 West, San Bernardino Meridian, in the City
of Santa Paula, County of Ventura, State of California, according to the official plat thereof described as follows:

 

    	A-1

    	 

    

 

EXHIBIT A

 

Commencing at the Southwesterly
terminus of that curve shown concave Southeasterly, having a radius of 2019 feet and a central angle of 7o 24' 11”,
a tangent to which bears North 50o 12' 05” East, in the general Northwesterly line of Parcel 6 of State Highway Relinquishment
No. 418, recorded October 6, 1966, in Book 3052, Page 52 of Official Records, in the office of the County Recorder of said
County, and as shown on map recorded August 26, 1965 in State Highway Map Book No. 2, Page 70, in said office; thence Northeasterly
along said curve, an arc distance of 199.55 feet through a central angle of 05o 39' 46”; thence non-tangent to
said curve North 51o 22' 54” East 556.40 feet; thence North 43o 39' 50” East, 208.72 feet; thence North 37o
12' 16” East, 232.23 feet; thence North 57o 43' 18” East 106.35 feet; thence North 32o 16' 42”
West 35.32 feet to the true point of beginning; thence

 

		1st:	North 18o 53' 23” East 42.23 feet; thence

 

		2nd:	North 38o 45' 44” East 41.67 feet to the Northerly line of the land acquired by the
State of California as Parcel 12B of Final Order of Condemnation (State Parcel B7617), recorded May 28, 1964, in Book 2550, Page
43 of said Official Records; thence along the boundary of said acquired land the following three courses:

 

		3rd:	South 87o 14' 02” East 140.39 feet; thence

 

		4th:	South 38o 48' 48” East 229.80 feet; thence

 

		5th:	South 56o 45' 45” West 213.43 feet to the Southeasterly prolongation of that course
hereinabove described as North 32o 16' 42” West; thence along said prolongation and said course

 

		6th:	North 32o 16' 42” West 272.48 feet to the true point of beginning.

 

ALSO EXCEPT one-half of the oil
and mineral rights as reserved by Clyde Williams and Love Williams, husband and wife, in deed recorded May 28, 1954, in Book 1206,
Page 8 of Official Records.

 

ALSO EXCEPT any remaining interest
in and to all oil, oil rights, minerals, mineral rights, natural gas, natural gas rights, and other hydrocarbons by whatsoever
name known that may be within or under the parcel of land hereinabove described, together with the perpetual right of drilling,
mining, exploring and operating therefor and removing the same from said land or any other land, including the right to whipstock
or directionally drill and mine from lands other than those hereinabove described, oil or gas wells, tunnels and shafts into, through
or across the subsurface of the land hereinabove described, and to bottom such whipstocked or directionally drilled wells, tunnels
and shafts under and beneath or beyond the exterior limits thereof, and to redrill, retunnel, equip, maintain, repair, deepen and
operate any such wells or mines, without, however, the right to drill, mine, explore and operate through the surface or the upper
100 fee of the subsurface of the land as excepted in Final Order of Condemnation recorded May 28, 1964, in Book 2550, Page 43 of
Official Records.

 

    	A-2

    	 

    

 

EXHIBIT B

 

OPTION AGREEMENT

AND ESCROW INSTRUCTIONS

 

Form of Memorandum of Option

 

	RECORDING REQUESTED BY	 
	AND WHEN RECORDED MAIL TO:	 
	 	 
	 	 	 
	Attn: 	 	 	 
	 	 	 
	 	 	 
	 	 
	 	APNs: 107-0-043-010,
	 	107-0-043-025 and
	 	107-0-043-140
	 	 	 	 

 

MEMORANDUM OF OPTION

TO PURCHASE REAL PROPERTY

 

THIS MEMORANDUM is
made as of February ___, 2013, by and between Jason B. Rushing, Trustee
of the Jason B. Rushing Trust dated July
10, 1997; JENNIFER R. RUSHING,
Trustee of the JENNIFER RUSHING REVOCABLE TRUST dated March 19,
2008; and Zella
A. Rushing, Trustee of the 1988 Zella Rushing Trust dated May
12, 1988 (together, “Seller”), and LIMONEIRA
COMPANY, a Delaware corporation (“Purchaser”).

 

1.           Pursuant
to that certain Option Agreement and Escrow Instructions (the “Agreement”), dated _________________________,
2013, Seller has granted to Purchaser an option (the “Option”) to purchase that certain real property
in the County of Ventura, State of California, more particularly described as follows:

 

Parcel A:

 

Parcel 2, in the City of Santa
Paula, County of Ventura, State of California, as per map filed in Book 30, Pages 98 and 99 of Parcel Maps, in the office of the
County Recorder of said County

 

EXCEPT from a portion of said land,
one-half of the oil and mineral rights as reserved by Clyde Williams, et ux., in deed recorded May 28, 1954, in Book 1206, Page
8 of Official Records.

 

ALSO EXCEPT from a portion of said
land all oil, gas and mineral rights below a depth of 500 feet from the surface, without the right of surface entry as reserved
by Alfred E. Emard, et al., in deed recorded December 24, 1969, in Book 3598, Page 155 of Official Records.

 

    	B-1

    	 

    

 

EXHIBIT B

 

Parcel B:

 

Parcel 2 of Parcel Map No. 91-32,
in the City of Santa Paula, County of Ventura, State of California, as per Map recorded in Book 53, Pages 27 and 28 of Parcel Maps,
in the office of the County Recorder of said County.

 

EXCEPT from a portion of said land,
one-half of the oil and mineral rights as reserved by Clyde Williams, et ux., in deed recorded May 28, 1954, in Book 1206, Page
8 of Official Records.

 

ALSO EXCEPT from a portion of said
land all oil, gas and mineral rights below a depth of 500 feet from the surface, without the right of surface entry as reserved
by Alfred E. Emard, et al., in deed recorded December 24, 1969, in Book 3598, Page 155 of Official Records.

 

Parcel C:

 

That portion of the North 1/2 of
the Southwest 1/4 of the Northwest 1/4 of Section 12, Township 3 North, Range 21 West, San Bernardino Meridian, in the City of
Santa Paula, County of Ventura, State of California, according to the official plat thereof described as follows:

 

Commencing at the Southwesterly
terminus of that curve shown concave Southeasterly, having a radius of 2019 feet and a central angle of 7o 24' 11”,
a tangent to which bears North 50o 12' 05” East, in the general Northwesterly line of Parcel 6 of State Highway Relinquishment
No. 418, recorded October 6, 1966, in Book 3052, Page 52 of Official Records, in the office of the County Recorder of said
County, and as shown on map recorded August 26, 1965 in State Highway Map Book No. 2, Page 70, in said office; thence Northeasterly
along said curve, an arc distance of 199.55 feet through a central angle of 05o 39' 46”; thence non-tangent to
said curve North 51o 22' 54” East 556.40 feet; thence North 43o 39' 50” East, 208.72 feet; thence North 37o
12' 16” East, 232.23 feet; thence North 57o 43' 18” East 106.35 feet; thence North 32o 16' 42”
West 35.32 feet to the true point of beginning; thence

 

		1st:	North 18o 53' 23” East 42.23 feet; thence

 

    	B-2

    	 

    

 

EXHIBIT B

 

		2nd:	North 38o 45' 44” East 41.67 feet to the Northerly line of the land acquired by the
State of California as Parcel 12B of Final Order of Condemnation (State Parcel B7617), recorded May 28, 1964, in Book 2550, Page
43 of said Official Records; thence along the boundary of said acquired land the following three courses:

 

		3rd:	South 87o 14' 02” East 140.39 feet; thence

 

		4th:	South 38o 48' 48” East 229.80 feet; thence

 

		5th:	South 56o 45' 45” West 213.43 feet to the Southeasterly prolongation of that course
hereinabove described as North 32o 16' 42” West; thence along said prolongation and said course

 

		6th:	North 32o 16' 42” West 272.48 feet to the true point of beginning.

 

ALSO EXCEPT one-half of the oil
and mineral rights as reserved by Clyde Williams and Love Williams, husband and wife, in deed recorded May 28, 1954, in Book 1206,
Page 8 of Official Records.

 

ALSO EXCEPT any remaining interest
in and to all oil, oil rights, minerals, mineral rights, natural gas, natural gas rights, and other hydrocarbons by whatsoever
name known that may be within or under the parcel of land hereinabove described, together with the perpetual right of drilling,
mining, exploring and operating therefor and removing the same from said land or any other land, including the right to whipstock
or directionally drill and mine from lands other than those hereinabove described, oil or gas wells, tunnels and shafts into, through
or across the subsurface of the land hereinabove described, and to bottom such whipstocked or directionally drilled wells, tunnels
and shafts under and beneath or beyond the exterior limits thereof, and to redrill, retunnel, equip, maintain, repair, deepen and
operate any such wells or mines, without, however, the right to drill, mine, explore and operate through the surface or the upper
100 fee of the subsurface of the land as excepted in Final Order of Condemnation recorded May 28, 1964, in Book 2550, Page 43 of
Official Records.

 

2.           The
term of the Option shall extend until February 28, 2018, unless terminated earlier according to the terms and conditions of said
Agreement.

 

    	B-3

    	 

    

 

EXHIBIT B

 

3.           In
the event of any conflict between the terms and conditions of this Memorandum and the Agreement, the Agreement shall control.

 

4.           In
the event that a Grant Deed conveying the Option Property from Seller to Purchaser is not recorded in the Official Records of Ventura
County, California, on or before February 28, 2018, this Memorandum shall automatically terminate and be of no further force or
effect.

 

5.           The
parties may execute this Memorandum in two (2) or more counterparts which shall, in the aggregate, be executed by all the parties
and shall thereupon be deemed to be a single document.

 

IN WITNESS WHEREOF,
the parties have executed this Memorandum of Option on the day and year first above written.

 

	 	Seller:
	 	 
	 	 
	 	Jason B. Rushing, Trustee of the Jason B.

 Rushing Trust dated July 10, 1997
	 	 
	 	 
	 	JENNIFER R. RUSHING, Trustee of the JENNIFER

 RUSHING REVOCABLE TRUST dated March 19, 2008
	 	 
	 	 
	 	Zella A. Rushing, Trustee of the 1988 Zella

 Rushing Trust dated May 12, 1988

 

	 	Purchaser:
	 	 
	 	LIMONEIRA COMPANY,
	 	a Delaware corporation
	 	 	 
	 	By:	 
	 	 	 
	 	 	 	 [Name]
	 	 	 
	 	 	 	 [Title]

 

    	B-4

    	 

    

 

EXHIBIT B

 

	STATE OF CALIFORNIA	)
	 	)  ss.
	COUNTY OF VENTURA	)

 

On _________________, 2013, before me,
_____________________________, Notary Public, personally appeared JASON B. RUSHING, who proved to me on the basis
of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed
the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which
the person acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under
the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

	 	 

 

	STATE OF CALIFORNIA	)
	 	)  ss.
	COUNTY OF VENTURA	)

 

On _________________, 2013, before me,
_____________________________, Notary Public, personally appeared JENNIFER R. RUSHING, who proved to me on the basis
of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed
the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which
the person acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under
the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

	 	 

 

    	B-5

    	 

    

 

EXHIBIT B

 

	STATE OF CALIFORNIA	)
	 	)  ss.
	COUNTY OF VENTURA	)

 

On _________________, 2013, before me,
_____________________________, Notary Public, personally appeared ZELLA A. RUSHING, who proved to me on the basis
of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed
the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which
the person acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under
the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

	 	 

 

	STATE OF CALIFORNIA	)
	 	)  ss.
	COUNTY OF VENTURA	)

 

On _________________, 2013, before me,
_____________________________, Notary Public, personally appeared _______________________________, who proved to me on the basis
of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she
executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon
behalf of which the person acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under
the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

	 	 

 

    	B-6

    	 

    

 

EXHIBIT C

 

OPTION AGREEMENT

AND ESCROW INSTRUCTIONS

 

Form of Quitclaim Deed

 

	RECORDING REQUESTED BY	 
	AND WHEN RECORDED MAIL TO:	 
	 	 
	FERGUSON CASE ORR PATERSON LLP	 
	Attn: Christopher K. Kitasaki	 
	1050 South Kimball Road	 
	Ventura, California 93004	 
	 	 
	 	APNs 107-0-043-010,
	 	107-0-043-025 and
	 	107-0-043-140

 

QUITCLAIM DEED

 

THE UNDERSIGNED GRANTOR(s)
DECLARE(s):

DOCUMENTARY TRANSFER
TAX is $ -0-.

		x	City of Santa Paula, and

		x	No consideration for this deed, which merely clears title from a recorded Memorandum of Option.

 

FOR A VALUABLE CONSIDERATION,
receipt of which is hereby acknowledged, LIMONEIRA COMPANY, a
Delaware corporation, hereby REMISES, RELEASES, AND FOREVER QUITCLAIMS to Jason
B. Rushing, Trustee of the Jason B. Rushing Trust dated
July 10, 1997, as
to an undivided one-fourth (1/4th) interest in the whole; JENNIFER R. RUSHING, Trustee
of the JENNIFER RUSHING REVOCABLE TRUST dated March 19,
2008, as to an undivided one-fourth (1/4th) interest in the whole;
and Zella A. Rushing, Trustee of the 1988
Zella Rushing Trust dated May 12,
1988, as to an undivided one-half (1/2) interest in the whole, the following described real property in the County
of Ventura, State of California, more particularly described as follows:

 

Parcel A:

 

Parcel 2, in the City of Santa
Paula, County of Ventura, State of California, as per map filed in Book 30, Pages 98 and 99 of Parcel Maps, in the office of the
County Recorder of said County

 

EXCEPT from a portion of said
land, one-half of the oil and mineral rights as reserved by Clyde Williams, et ux., in deed recorded May 28, 1954, in Book 1206,
Page 8 of Official Records.

 

ALSO EXCEPT from a portion of
said land all oil, gas and mineral rights below a depth of 500 feet from the surface, without the right of surface entry as reserved
by Alfred E. Emard, et al., in deed recorded December 24, 1969, in Book 3598, Page 155 of Official Records.

 

    	C-1

    	 

    

 

EXHIBIT C

 

Parcel B:

 

Parcel 2 of Parcel Map No. 91-32,
in the City of Santa Paula, County of Ventura, State of California, as per Map recorded in Book 53, Pages 27 and 28 of Parcel Maps,
in the office of the County Recorder of said County.

 

EXCEPT from a portion of said
land, one-half of the oil and mineral rights as reserved by Clyde Williams, et ux., in deed recorded May 28, 1954, in Book 1206,
Page 8 of Official Records.

 

ALSO EXCEPT from a portion of
said land all oil, gas and mineral rights below a depth of 500 feet from the surface, without the right of surface entry as reserved
by Alfred E. Emard, et al., in deed recorded December 24, 1969, in Book 3598, Page 155 of Official Records.

 

Parcel C:

 

That portion of the North 1/2
of the Southwest 1/4 of the Northwest 1/4 of Section 12, Township 3 North, Range 21 West, San Bernardino Meridian, in the City
of Santa Paula, County of Ventura, State of California, according to the official plat thereof described as follows:

 

Commencing at the Southwesterly
terminus of that curve shown concave Southeasterly, having a radius of 2019 feet and a central angle of 7o 24' 11”,
a tangent to which bears North 50o 12' 05” East, in the general Northwesterly line of Parcel 6 of State Highway Relinquishment
No. 418, recorded October 6, 1966, in Book 3052, Page 52 of Official Records, in the office of the County Recorder of said
County, and as shown on map recorded August 26, 1965 in State Highway Map Book No. 2, Page 70, in said office; thence Northeasterly
along said curve, an arc distance of 199.55 feet through a central angle of 05o 39' 46”; thence non-tangent to
said curve North 51o 22' 54” East 556.40 feet; thence North 43o 39' 50” East, 208.72 feet; thence North 37o
12' 16” East, 232.23 feet; thence North 57o 43' 18” East 106.35 feet; thence North 32o 16' 42”
West 35.32 feet to the true point of beginning; thence

 

1st:       North
18o 53' 23” East 42.23 feet; thence

 

2nd:      North
38o 45' 44” East 41.67 feet to the Northerly line of the land acquired by the State of California as Parcel 12B of Final
Order of Condemnation (State Parcel B7617), recorded May 28, 1964, in Book 2550, Page 43 of said Official Records; thence along
the boundary of said acquired land the following three courses:

 

3rd:       South
87o 14' 02” East 140.39 feet; thence

 

    	C-2

    	 

    

 

EXHIBIT C

 

4th:       South
38o 48' 48” East 229.80 feet; thence

 

5th:       South
56o 45' 45” West 213.43 feet to the Southeasterly prolongation of that course hereinabove described as North 32o
16' 42” West; thence along said prolongation and said course

 

6th:       North
32o 16' 42” West 272.48 feet to the true point of beginning.

 

ALSO EXCEPT one-half of the oil
and mineral rights as reserved by Clyde Williams and Love Williams, husband and wife, in deed recorded May 28, 1954, in Book 1206,
Page 8 of Official Records.

 

ALSO EXCEPT any remaining interest
in and to all oil, oil rights, minerals, mineral rights, natural gas, natural gas rights, and other hydrocarbons by whatsoever
name known that may be within or under the parcel of land hereinabove described, together with the perpetual right of drilling,
mining, exploring and operating therefor and removing the same from said land or any other land, including the right to whipstock
or directionally drill and mine from lands other than those hereinabove described, oil or gas wells, tunnels and shafts into, through
or across the subsurface of the land hereinabove described, and to bottom such whipstocked or directionally drilled wells, tunnels
and shafts under and beneath or beyond the exterior limits thereof, and to redrill, retunnel, equip, maintain, repair, deepen and
operate any such wells or mines, without, however, the right to drill, mine, explore and operate through the surface or the upper
100 fee of the subsurface of the land as excepted in Final Order of Condemnation recorded May 28, 1964, in Book 2550, Page 43 of
Official Records.

 

	Dated:  __________________, 2013	LIMONEIRA COMPANY,
	 	a Delaware corporation
	 	 	 
	 	By:	 
	 	 	 	 
	 	 	 	 [Name]
	 	 	 	 
	 	 	 	 [Title]

 

    	C-3

    	 

    

 

EXHIBIT C

 

	STATE OF CALIFORNIA	)
	 	)  ss.
	COUNTY OF VENTURA	)

 

On _________________, 2013, before me,
_____________________________, Notary Public, personally appeared _______________________________, who proved to me on the basis
of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she
executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon
behalf of which the person acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under
the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

	 	 

 

    	C-4

    	 

    

 

EXHIBIT D

OPTION AGREEMENT

AND ESCROW INSTRUCTIONS

 

Form of Grant Deed

 

	RECORDING REQUESTED BY	 
	AND WHEN RECORDED MAIL TO:	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 
	MAIL TAX STATEMENTS TO:	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 
	 	APNs 107-0-043-010,
	 	107-0-043-025 and
	 	107-0-043-140

 

In accordance with Section
11932 of the California Revenue and Taxation Code, Grantor has declared the amount of the transfer tax that is due by a separate
statement which is not being recorded with this Grant Deed.

 

GRANT DEED

 

FOR VALUABLE CONSIDERATION,
receipt of which is hereby acknowledged, Jason B. Rushing, Trustee
of the Jason B. Rushing Trust dated July 10,
1997; JENNIFER R. RUSHING, Trustee of the JENNIFER
RUSHING REVOCABLE TRUST dated March 19, 2008;
and Zella A. Rushing, Trustee of the 1988
Zella Rushing Trust dated May 12, 1988,
hereby GRANT to LIMONEIRA COMPANY, a Delaware corporation,
the following described real property in the County of Ventura, State of California, more particularly described as follows:

 

Parcel A:

 

Parcel 2, in the City of Santa
Paula, County of Ventura, State of California, as per map filed in Book 30, Pages 98 and 99 of Parcel Maps, in the office of the
County Recorder of said County

 

EXCEPT from a portion of said
land, one-half of the oil and mineral rights as reserved by Clyde Williams, et ux., in deed recorded May 28, 1954, in Book 1206,
Page 8 of Official Records.

 

    	D-1

    	 

    

 

EXHIBIT D

 

ALSO EXCEPT from a portion of
said land all oil, gas and mineral rights below a depth of 500 feet from the surface, without the right of surface entry as reserved
by Alfred E. Emard, et al., in deed recorded December 24, 1969, in Book 3598, Page 155 of Official Records.

 

Parcel B:

 

Parcel 2 of Parcel Map No. 91-32,
in the City of Santa Paula, County of Ventura, State of California, as per Map recorded in Book 53, Pages 27 and 28 of Parcel Maps,
in the office of the County Recorder of said County.

 

EXCEPT from a portion of said
land, one-half of the oil and mineral rights as reserved by Clyde Williams, et ux., in deed recorded May 28, 1954, in Book 1206,
Page 8 of Official Records.

 

ALSO EXCEPT from a portion of
said land all oil, gas and mineral rights below a depth of 500 feet from the surface, without the right of surface entry as reserved
by Alfred E. Emard, et al., in deed recorded December 24, 1969, in Book 3598, Page 155 of Official Records.

 

Parcel C:

 

That portion of the North 1/2
of the Southwest 1/4 of the Northwest 1/4 of Section 12, Township 3 North, Range 21 West, San Bernardino Meridian, in the City
of Santa Paula, County of Ventura, State of California, according to the official plat thereof described as follows:

 

Commencing at the Southwesterly
terminus of that curve shown concave Southeasterly, having a radius of 2019 feet and a central angle of 7o 24' 11”,
a tangent to which bears North 50o 12' 05” East, in the general Northwesterly line of Parcel 6 of State Highway Relinquishment
No. 418, recorded October 6, 1966, in Book 3052, Page 52 of Official Records, in the office of the County Recorder of said
County, and as shown on map recorded August 26, 1965 in State Highway Map Book No. 2, Page 70, in said office; thence Northeasterly
along said curve, an arc distance of 199.55 feet through a central angle of 05o 39' 46”; thence non-tangent to
said curve North 51o 22' 54” East 556.40 feet; thence North 43o 39' 50” East, 208.72 feet; thence North 37o
12' 16” East, 232.23 feet; thence North 57o 43' 18” East 106.35 feet; thence North 32o 16' 42”
West 35.32 feet to the true point of beginning; thence

 

1st:        North
18o 53' 23” East 42.23 feet; thence

 

2nd:       North
38o 45' 44” East 41.67 feet to the Northerly line of the land acquired by the State of California as Parcel 12B of Final
Order of Condemnation (State Parcel B7617), recorded May 28, 1964, in Book 2550, Page 43 of said Official Records; thence along
the boundary of said acquired land the following three courses:

 

    	D-2

    	 

    

 

EXHIBIT D

 

3rd:        South
87o 14' 02” East 140.39 feet; thence

 

4th:        South
38o 48' 48” East 229.80 feet; thence

 

5th:        South
56o 45' 45” West 213.43 feet to the Southeasterly prolongation of that course hereinabove described as North 32o
16' 42” West; thence along said prolongation and said course

 

6th:        North
32o 16' 42” West 272.48 feet to the true point of beginning.

 

ALSO EXCEPT one-half of the oil
and mineral rights as reserved by Clyde Williams and Love Williams, husband and wife, in deed recorded May 28, 1954, in Book 1206,
Page 8 of Official Records.

 

ALSO EXCEPT any remaining interest
in and to all oil, oil rights, minerals, mineral rights, natural gas, natural gas rights, and other hydrocarbons by whatsoever
name known that may be within or under the parcel of land hereinabove described, together with the perpetual right of drilling,
mining, exploring and operating therefor and removing the same from said land or any other land, including the right to whipstock
or directionally drill and mine from lands other than those hereinabove described, oil or gas wells, tunnels and shafts into, through
or across the subsurface of the land hereinabove described, and to bottom such whipstocked or directionally drilled wells, tunnels
and shafts under and beneath or beyond the exterior limits thereof, and to redrill, retunnel, equip, maintain, repair, deepen and
operate any such wells or mines, without, however, the right to drill, mine, explore and operate through the surface or the upper
100 fee of the subsurface of the land as excepted in Final Order of Condemnation recorded May 28, 1964, in Book 2550, Page 43 of
Official Records.

 

Dated: __________________, 20__.

 

	 	 
	 	Jason B. Rushing, Trustee of the Jason B. 
	 	Rushing Trust dated July 10, 1997
	 	 
	 	 
	 	JENNIFER R. RUSHING, Trustee of the JENNIFER 
	 	RUSHING REVOCABLE TRUST dated March 19, 2008
	 	 
	 	 
	 	Zella A. Rushing, Trustee of the 1988 Zella  
	 	Rushing Trust dated May 12, 1988

 

    	D-3

    	 

    

 

EXHIBIT D

 

	STATE OF CALIFORNIA	)
	 	)  ss.
	COUNTY OF VENTURA	)

 

On _________________, 2013, before me,
_____________________________, Notary Public, personally appeared JASON B. RUSHING, who proved to me on the basis
of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed
the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which
the person acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under
the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

	 	 

 

	STATE OF CALIFORNIA	)
	 	)  ss.
	COUNTY OF VENTURA	)

 

On _________________, 2013, before me,
_____________________________, Notary Public, personally appeared JENNIFER R. RUSHING, who proved to me on the basis
of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed
the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which
the person acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under
the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

	 	 

 

    	D-4

    	 

    

 

EXHIBIT D

 

	STATE OF CALIFORNIA	)
	 	)  ss.
	COUNTY OF ____________ 	)

 

On _________________, 2013, before me,
_____________________________, Notary Public, personally appeared ZELLA A. RUSHING, who proved to me on the basis
of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed
the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which
the person acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under
the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

	 	 

 

    	D-5CONFIDENTIAL TREATMENT REQUESTED. Confidential portions
of this document have been redacted and have been separately filed with the Commission.

 

Exhibit 10.37

 

SUBLICENSE AGREEMENT

 

By And
Between

 

TG
BIOLOGICS, INC.

 

And

 

ILDONG PHARMACEUTICAL CO. LTD.

 

November 13, 2012 

 

CONFIDENTIAL

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	 	Page
	 	 	 	 
	1.	DEFINITIONS	2
	 	 	 	 
	2.	LICENSE GRANTS; EXCLUSIVITY	17
	 	2.1	Sublicense	17
	 	2.2	Right to Sublicense	20
	 	2.3	No Other Rights	20
	 	2.4	Exclusivity	20
	 	 	 	 
	3.	DEVELOPMENT OF PRODUCTS	22
	 	3.1	Development Program	22
	 	3.2	Development Diligence	22
	 	3.3	Preparation of Development Plan	23
	 	3.4	Compliance	23
	 	3.5	Supply of Compound(s) or Products(s) for Development	24
	 	3.6	Use of Proprietary Materials	24
	 	 	 	 
	4.	REGULATORY ACTIVITIES	24
	 	4.1	Responsibility for Regulatory Filings	24
	 	4.2	Disclosure; Right of Access	25
	 	4.3	Disclosure of Certain Events	25
	 	4.4	Communication with Regulatory Authorities in the SUBLICENSOR Commercialization Territory	26
	 	 	 	 
	5.	COMMERCIALIZATION OF PRODUCTS	26
	 	5.1	Commercialization Plan	26
	 	5.2	Responsibility for Commercialization of Products	26
	 	5.3	Commercialization Diligence	27
	 	5.4	Failure to Satisfy Commercialization Diligence Obligations	27
	 	5.5	Failure to achieve Sales Targets	28
	 	5.6	Compliance	29
	 	5.7	No Unauthorized Sales	29
	 	5.8	Records; Reports	29
	 	5.9	Supply of Product for Commercialization	30
	 	5.10	Product Recalls	30
	 	 	 	 
	6.	SUPPLY OF THE COMPOUND AND/OR PRODUCT	30
	 	6.1	Supply of LFB-R603 for Development and Commercialization	30
	 	6.2	Supply of TG20 for Development and Commercialization	31
	 	 	 	 
	7.	PAYMENTS	31
	 	7.1	Upfront Payment	31
	 	7.2	Sales Milestones	31
	 	7.3	Payment of Royalties; Royalty Rates; Accounting and Records	32

 

    	i

    	 

    

 

	8.	TREATMENT OF CONFIDENTIAL INFORMATION; PUBLICITY	35
	 	8.1	Confidentiality	35
	 	8.2	Publicity	36
	 	8.3	No Use of Name	37
	 	 	 	 
	9.	INTELLECTUAL PROPERTY RIGHTS	37
	 	9.1	SUBLICENSOR Intellectual Property Rights	37
	 	9.2	Improvement	37
	 	9.3	Joint Improvement	37
	 	9.4	Patent Coordinators	38
	 	9.5	Notice; Inventorship	38
	 	 	 	 
	10.	FILING, PROSECUTION AND MAINTENANCE OF PATENT RIGHTS	39
	 	10.1	Patent Filing, Prosecution and Maintenance	39
	 	10.2	Enforcement and Defense	40
	 	10.3	Trademark Prosecution and Registration	43
	 	 	 	 
	11.	TERM AND TERMINATION	44
	 	11.1	Term	44
	 	11.2	Termination	44
	 	11.3	Consequences of Termination of Agreement	45
	 	11.4	Surviving Provisions	47
	 	 	 	 
	12.	REPRESENTATIONS AND WARRANTIES	48
	 	12.1	Mutual Representations and Warranties	48
	 	12.2	Additional Representations of SUBLICENSOR	48
	 	12.3	Additional Representations of ILDONG	49
	 	 	 	 
	13.	INDEMNIFICATION; INSURANCE	50
	 	13.1	Indemnification of SUBLICENSOR by ILDONG	50
	 	13.2	Indemnification of ILDONG by SUBLICENSOR	50
	 	13.3	Conditions to Indemnification	51
	 	13.4	Insurance	51
	 	13.5	Warranty Disclaimer	51
	 	13.6	No Warranty of Success	52
	 	13.7	Limited Liability	52
	 	 	 	 
	14.	MISCELLANEOUS	52
	 	14.1	Disputes; Consent to Jurisdiction	52
	 	14.2	Notices	52
	 	14.3	Governing Law	53
	 	14.4	Competition Law	53
	 	14.5	Binding Effect	54
	 	14.6	Headings	54
	 	14.7	Counterparts	54
	 	14.8	Amendment; Waiver	54

 

    	ii

    	 

    

 

	 	14.9	No Third Party Beneficiaries	54
	 	14.10	Purposes and Scope	54
	 	14.11	Assignment and Successors	55
	 	14.12	Force Majeure	55
	 	14.13	Interpretation	55
	 	14.14	Integration; Severability	55
	 	14.15	Further Assurances	56

 

List of Exhibits and Schedules

 

	Exhibit A	Commercial Supply Agreement(s)
	 	 
	Schedule 2	Commercialization Plan
	Schedule 3	Description of LFB-R603
	Schedule 4	Licensed Patent Rights and Background Patent Rights
	Schedule 5	Description of TG20
	Schedule 6	Press Release
	Schedule 7	Licensed Trademarks

 

 

    	iii

    	 

    

 

SUBLICENSE AGREEMENT

 

This SUBLICENSE AGREEMENT
(this “Agreement”) is entered into as of November 13, 2012 (the “Effective Date”) by and
between TG Biologics, Inc., a Delaware corporation with a principal place of business at 787 Seventh Avenue, 48th Floor,
New York, New York 10019 (“TG” or SUBLICENSOR”) and Ildong Pharmaceutical Co. Ltd., a Korean limited
company with a principal place of business at 60 Yangjae-dong, Seocho-ku, Seoul 137-733 KOREA (“ILDONG”). Each
of ILDONG and SUBLICENSOR is sometimes referred to individually herein as a “Party” and collectively as the
“Parties.”

 

RECITALS

 

WHEREAS, SUBLICENSOR
is clinical-stage biopharmaceutical company focused on the acquisition, development and commercialization of innovative and medically
important pharmaceutical products for the treatment of cancer and other underserved therapeutic needs;

 

WHEREAS, ILDONG is
a pharmaceutical company engaged in producing pharmaceutical specialties, pharmaceutical raw materials and environmental products;

 

WHEREAS, prior to
the signature of the present Agreement, SUBLICENSOR has entered into an exclusive license agreement (the “LFB/GTC License”)
with LFB Biotechnologies SAS, LFB/GTC LLC, and GTC Biotherapeutics Inc dated on 30th of January, 2012. (collectively the “Senior
Licensors”) related to the Compounds (as such term is defined below);

 

WHEREAS, pursuant
to the terms of the LFB/GTC License, SUBLICENSOR has acquired rights to certain license agreements related to the Compounds, including:

 

		-	A
                                                                                                                              license
                                                                                                                              agreement
                                                                                                                              with
                                                                                                                              Dr.
                                                                                                                              Hadam
                                                                                                                              on
                                                                                                                              an
                                                                                                                              anti
                                                                                                                              CD
                                                                                                                              20
                                                                                                                              monoclonal
                                                                                                                              antibody,
                                                                                                                              CAT
                                                                                                                              13.6.E12
                                                                                                                              and
                                                                                                                              the
                                                                                                                              hybridoma
                                                                                                                              cell-line
                                                                                                                              producing
                                                                                                                              such
                                                                                                                              murine
                                                                                                                              antibody

		-	A
                                                                                                                              license
                                                                                                                              agreement
                                                                                                                              with
                                                                                                                              Pharming
                                                                                                                              on
                                                                                                                              the
                                                                                                                              casein
                                                                                                                              promoter

		-	A
                                                                                                                              license
                                                                                                                              agreement
                                                                                                                              with
                                                                                                                              Start/Viagen
                                                                                                                              on
                                                                                                                              the
                                                                                                                              cloning
                                                                                                                              and
                                                                                                                              nuclear
                                                                                                                              transfer
                                                                                                                              technology;

 

WHEREAS, pursuant
to Article 2.2 of the LFB/GTC License, SUBLICENSOR retains full rights to grant sublicense to certain patents, technology and
material related to the Compounds;

 

Whereas,
pursuant to that executed term sheet between SUBLICENSOR and ILDONG, dated June 13, 2012, the Parties have agreed to enter into
a license on the terms and subject to the conditions set forth in this Agreement; and

 

Whereas,
in furtherance of such transaction, SUBLICENSOR and ILDONG have also agreed to enter into a Commercial Supply Agreement on the
terms described herein;

 

    	1

    	 

    

 

NOW, THEREFORE, in
consideration of the mutual covenants contained herein, and for other good and valuable consideration, the Parties hereto, intending
to be legally bound, hereby agree as follows:

 

1.          DEFINITIONS

 

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

 

1.1           “Acceptance”
means, with respect to a Drug Approval Application filed for a Product, the acceptance of such filing by the applicable Regulatory
Authority in any country within the Territory.

 

1.2           “Adverse
Event” means any untoward medical occurrence in a human clinical trial subject or in a patient who is administered a
Compound or Product, whether or not considered related to the compound or product, including any undesirable sign (including abnormal
laboratory findings of clinical concern), symptom or disease associated with the use of a Compound or Product, as defined more
fully in 21 CFR §312.32.

 

1.3           “Affiliate”
means, with respect to any Person, any other Person that, directly or indirectly, controls, or is controlled by, or is under common
control with, such Person. For purposes of this definition, “control” means (a) ownership of more than fifty percent
(50%) of the shares of stock entitled to vote for the election of directors in the case of a corporation, or more than fifty percent
(50%) of the equity interests in the case of any other type of legal entity, (or such lesser maximum percentage permitted in those
jurisdictions where majority ownership by foreign entities is prohibited); (b) status as a general partner in any partnership;
or (c) any other arrangement whereby a Person controls or has the right to control the board of directors of a corporation or
equivalent governing body of an entity other than a corporation.

 

1.4           “Agreement”
means this sublicense agreement and its Exhibits and Schedules listed in the table of contents.

 

1.5           
“Annual Net Sales” means, with respect to any Calendar Year, the aggregate amount of Net Sales for such
Calendar Year.

 

1.6           “Anticipated
Date of Receipt of Marketing Authorization” means, the date of receipt of Marketing Authorization from the applicable
regulatory agency set forth in the Development Plan (Schedule 1)

 

1.7           “API”
means the active pharmaceutical ingredient that is intended to be used in the Manufacture of any Product.

 

    	2

    	 

    

 

1.8           “Applicable
Laws” means any national, international, federal, state or local laws, treaties, statutes, ordinances, rules and regulations,
including any rules, regulations, guidance or guidelines of Regulatory Authorities having the binding effect of law, or of any
national securities exchanges or securities listing organizations or other government authorities other than Regulatory Authorities,
that are in effect from time to time during the Term and applicable to a particular activity hereunder.

 

1.9           “Background
Patent Rights” means any Patent Rights that are Controlled by SUBLICENSOR, other than Licensed Patent Rights, containing
one or more claims that could Cover any Compound or Product (including its Manufacture or its formulation or a method of its delivery
or of its use). For the sake of clarity, the Background Patent Rights existing as of the Effective Date are listed on Schedule
4.

 

1.10         “BLA”
means (a) any Biologic License Application, as defined in the FDCA and regulations promulgated thereunder, or any successor
application or procedure required to market and sell a Product in the Territory; and (b) all supplements and amendments to the
foregoing.

 

1.11         
“Branding” means all matters relating to the branding of any Product, including any matters related
to the selection of any trademarks, brand names, product logos, branding colors, trade dress, positioning and key messages to
be incorporated into Promotional Materials used for any Product in the Territory.

 

1.12         “Business
Day” means any day other than a Saturday or Sunday on which banking institutions in New York, New York, USA or Seoul,
Korea are open for business.

 

1.13         “Calendar
Quarter” means the period beginning on the Effective Date and ending on the last day of the calendar quarter in which
the Effective Date falls, and thereafter each successive period of three (3) consecutive calendar months ending on March 31, June
30, September 30 or December 31; provided, that, the final Calendar Quarter shall end on the last day of the Term.

 

1.14         “Calendar
Year” means the period beginning on the Effective Date and ending on December 31 of the calendar year in which the Effective
Date falls, and thereafter each successive period of twelve (12) months commencing on January 1 and ending on December 31; provided,
that, the final Calendar Year shall end on the last day of the Term.

 

1.15         “Challenge”
means any challenge to the validity or enforceability of any of the Licensed Patent Rights before any administrative, judicial
or other governmental authority, court, tribunal or arbitration panel, including by (a) filing a declaratory judgment action in
which any of the Licensed Patent Rights is alleged to be invalid or unenforceable; (b) citing prior art pursuant to 35 U.S.C.
§301, filing a request for re-examination of any of the Licensed Patent Rights pursuant to 35 U.S.C. §302 and/or §311,
or provoking or becoming a party to an interference with an application for any of the Licensed Patent Rights pursuant to 35 U.S.C.
§135; or (c) filing or commencing any re-examination, opposition, cancellation, nullity or similar proceedings against any
of the Licensed Patent Rights in any country.

 

    	3

    	 

    

 

1.16         “Change
of Control” means, with respect to ILDONG, a transaction or series of related transactions (including any merger, consolidation,
share exchange, reorganization or combination) involving ILDONG and any Third Party that results in (a) the holders of outstanding
voting securities of ILDONG immediately prior to such transaction ceasing to represent at least fifty percent (50%) of the combined
outstanding voting power of ILDONG or of the surviving or continuing entity immediately after such transaction or series of transactions;
(b) any Third Party (other than a trustee or other fiduciary holding securities under an employee benefit plan) becoming the beneficial
owner of fifty percent (50%) or more of the combined voting power of the outstanding securities of ILDONG (including as a single
Third Party all persons who in concert or act together as a “group” for purposes of acquiring shares of ILDONG, in
accordance with Section 13(d) of the Securities Act of 1934) (other than an investment transaction by an entity not engaged in
the pharmaceutical or biotechnology business, the purpose of which is to raise capital for ILDONG); or (c) the sale or other disposition
to a Third Party of all or substantially all of ILDONG’s assets or business to which this Agreement relates. 

 

1.17         “Clinical
Data” means any and all data (together with all Clinical Trial reports and the results of analyses thereof) derived
or generated from any Clinical Trial of a Compound or Product or from testing of subjects or the analysis of samples used in any
such Clinical Trial.

 

1.18         “Clinical
Trial” means, collectively, any Phase 1 Clinical Trial, Phase 2 Clinical Trial, Phase 3 Clinical Trial, as applicable.

 

1.19         “Combination
Product” means a single product that includes, in combination with a Product, one or more therapeutically-active ingredients
other than a Product that are sold in a single package or as a unit at a single price either as a fixed dosage form or as separate
dosage forms.

 

1.20         “Commercialization”
or “Commercialize” means any and all activities directed to the offering for sale and sale of a Product after
Marketing Authorization has been obtained with respect to such Product, including, (a) activities directed to marketing, promoting,
detailing, distributing, Manufacturing, importing, selling and offering to sell such Product; (b) interacting with Regulatory
Authorities regarding any of the foregoing; and (c) seeking Pricing Approvals and Reimbursement Approvals for such Product (d)
Post Approval Clinical Trials. When used as a verb, “to Commercialize” and “Commercializing”
means to engage in Commercialization and “Commercialized” has a corresponding meaning.

 

    	4

    	 

    

 

1.21         “Commercialization
Plan” means, with respect to any Product, the written report prepared by ILDONG pursuant to Section 5.1 and submitted
to SUBLICENSOR for its review that (a) describes the Commercialization activities that ILDONG reasonably expects to conduct with
respect to such Product in the Territory, and (b) sets forth (i) a non-binding estimate of projected sales of such Product in
the Territory, and (ii) a summary of all actual sales of such Product in the Territory, as such report may be amended or updated
by ILDONG from time to time. Without limiting the foregoing, each Commercialization Plan shall include, without limitation, (a)
demographics and market dynamics, market strategies, a marketing plan (including advertising, detailing forecasts, Pricing strategies
pertaining to discounts and sales forecasts) for the Territory; (b) specific Commercialization and marketing objectives, projected
milestones, resource allocation requirements and activities to be performed over such period (including all anticipated Clinical
Trials) (collectively, the “Commercialization Targets”); (c) a timeline for such activities, including the
estimated launch date(s) in the Territory; (d) a sales and expense forecast (including at least five (5) years of estimated sales
and expenses in terms of both volume and value) for the Territory; (e) Manufacturing plans and the expected product profile; and
(f) the expected Regulatory Filings to be required and prepared, and the expected timetable for making such Regulatory Filings.

 

1.22         
“Commercially Reasonable Efforts” means, with respect to the activities of ILDONG, and/or its
Affiliates, Sublicensees, Distributors, in the Development or Commercialization, as the case may be, of a particular Compound
and/or Product, the level of efforts and resources typically used and expected from a pharmaceutical company of similar size for
the development or commercialization of products of comparable market potential, taking into account all relevant factors including,
as applicable, the stage of development, observed efficacy and safety of the Product and relative to Competitive Products in the
marketplace, actual or anticipated Regulatory Authority approved labeling, the nature and extent of market exclusivity (including
patent coverage, regulatory exclusivity and competitiveness of alternative products), the cost and likelihood of obtaining Marketing
Authorization, the actual or projected profitability, and the reasonably expected and actual pricing, reimbursement and formulary
status. For purposes of clarity, Commercially Reasonable Efforts shall be determined on a market-by-market and Indication-by-Indication
basis for a particular Compound and/or Product, and it is anticipated that the level of effort may be different for different
markets and may change over time, reflecting changes in the status of the Compound or Product and the market(s) involved.

 

1.23         “Competitive
Entity” means any Third Party that (a) together with its Affiliates and subsidiaries, collectively had worldwide sales
of ethical pharmaceutical products, in the Calendar Year that preceded the Change of Control, of at least One Billion Dollars
(USD $1,000,000,000), and (b) on the date of such Change of Control is actively working on any research program involving
the expenditure of funds or the application of full time equivalents in the aggregate amount of at least $500,000 per Calendar
Year involving a Competitive Program.

 

1.24         “Competitive
Products” means any anti CD 20 monoclonal antibody for use in the Field

 

1.25         “Competitive
Program” means any program that involves the research, development or commercialization of any (a) transgenically-derived
chimeric monoclonal antibody or (b) cell-product anti CD 20 monoclonal antibody for use in the Field.

 

    	5

    	 

    

 

1.26         “Completion”
means, with respect to any Clinical Trial, the date on which all material data reasonably expected to be derived therefrom
has been generated and the final study report with respect thereto has been finalized. 

 

1.27         “Compounds”
means ublituximab, collectively, (i) TG20 and/or (b) LFB-R603.

 

1.28         “Confidential
Information” means with respect to each Party, all information, Technology and Proprietary Materials that is (i) ILDONG
Background Technology, in the case of ILDONG and (ii) Licensed Technology, in the case of SUBLICENSOR, and, that, in any case,
is disclosed or provided by or on behalf of such Party (the “Disclosing Party”) to the other Party (the “Receiving
Party”) or to any of the Receiving Party’s employees, consultants, Affiliates or sublicensees; provided, that,
none of the foregoing shall be Confidential Information if: (A) as of the date of disclosure, it is known to the Receiving Party
or its Affiliates as demonstrated by contemporaneous written documentation maintained in the ordinary course of business, other
than by virtue of a prior confidential disclosure to such Receiving Party; (B) as of the date of disclosure it is in the public
domain, or it subsequently enters the public domain through no fault of the Receiving Party; (C) it is obtained by the Receiving
Party from a Third Party having a lawful right to make such disclosure free from any obligation of confidentiality to the Disclosing
Party; or (D) it is independently developed by or for the Receiving Party without reference to or use of any Confidential Information
of the Disclosing Party as demonstrated by contemporaneous written documentation maintained in the ordinary course of business.
For purposes of clarity, (a) unless excluded from Confidential Information pursuant to the preceding sentence, any scientific,
technical, manufacturing or financial information of a Party that is disclosed through any report (including any audit report)
shall constitute Confidential Information of the Disclosing Party; (b) all Clinical Data produced by ILDONG in connection with
the Development of a Compound or Product and/or in the conduct of Clinical Trials shall be Confidential Information of ILDONG;
and (c) any combination of Confidential Information shall not be considered in the public domain or in the possession of the Receiving
Party merely because individual elements of such Confidential Information are in the public domain or in the possession of the
Receiving Party unless the combination and its principles are in the public domain or in the possession of the Receiving Party.

 

1.29         “Control”
or “Controlled” means (a) with respect to Technology (other than Proprietary Materials) or Patent Rights, the
possession by a Party (or an Affiliate of such Party, as applicable) of the right to grant a license or sublicense to such Technology
or Patent Rights as provided herein without violating the terms of any agreement or arrangement with, infringing the Patent Rights
of, or misappropriating the proprietary or trade secret information of, any Third Party and without violating any Applicable Laws
and (b) with respect to Proprietary Materials, the possession by a Party of the right to supply such Proprietary Materials to
the other Party as provided herein without violating the terms of any agreement or arrangement with any Third Party and without
violating any Applicable Laws. Notwithstanding the foregoing, no Party (or Affiliate of a Party, as applicable) shall be deemed
to Control any Technology, Proprietary Materials or Patent Rights solely by virtue of the license grants set forth in this Agreement.

 

    	6

    	 

    

 

1.30         
“Cover” or “Covered” means, with respect to a Product, that the manufacture, use
or sale of such Product in a particular country by an unlicensed Third Party would infringe a Valid Claim.

 

1.31         “Development”
or “Develop” means, with respect to a Product, (a) all non-clinical and clinical drug development activities
that are undertaken after the Effective Date up to and including the date of obtaining of Marketing Authorization of such Product
to obtain including (i) the conduct of Clinical Trials, toxicology and pharmacology testing, test method development and stability
testing, process development (including the Manufacture of validation and engineering batches), formulation development, delivery
system development, quality assurance and quality control development, analytical method development, human clinical studies and
regulatory affairs activities and statistical analysis and report writing; (ii) the preparation of Clinical Trial design and operations;
(iii) preparing and filing Drug Approval Applications, and (b) all activities related to Manufacturing Development and (c) any
and all other activities that may be necessary or useful to obtain Regulatory Approval, Pricing Approval, or Reimbursement Approval.
When used as a verb, “Developing” means to engage in Development and “Developed” has a corresponding
meaning.

 

1.32         “Development
Plan” means, with respect to the Compound and/or any Product, the non-binding written plan for, and estimated budget
applicable to, the Development activities anticipated to be conducted by ILDONG for the Compound and/or Product, as such written
plan may be amended, modified or updated in accordance with Section 3.1.3. Topics that may be covered in the plan, (a) the Clinical
Trials (including investigator-initiated clinical trials) that are expected to be conducted and the expected timeline for conducting
such Clinical Trials; (b) the expected Drug Approval Applications to be required and prepared, and the expected timetable for
making such Drug Approval Applications;

 

1.33         “Development
Program” means (a) the Development activities to be conducted by ILDONG during the Term with respect to the Compounds
and (b) the Development activities to be conducted by SUBLICENSOR during the Term under the Development Services and Manufacturing
Agreement as set forth in the Development Plan and defined in 3.1.2.

 

1.34         “Distributor”
means any Person that purchases Product from ILDONG or any of ILDONG’s Affiliates or Sublicensees for purposes of resale
of Product to end users in the Territory (including any wholesalers, pharmacists or hospitals).

 

    	7

    	 

    

 

1.35         “Divest”
means, with respect to a Competitive Program, a divestiture of such Competitive Program to a Third Party by sale, license
or otherwise; provided, that, if such divestiture is made by ILDONG by way of one or more licenses or sublicenses, (a) ILDONG
and its Affiliates shall not hold or retain any rights with respect to such Competitive Program other than (i) the right to receive
license fees, milestone payments and royalties on sales of products (or other sources of revenue, including with respect to Manufacturing)
with respect to such Competitive Program, (ii) the right to defend claims of infringement, (iii) the right to assert claims of
infringement against Persons who may infringe its intellectual property rights with respect to products with respect to such Competitive
Program and (iv) the right to otherwise control filings and patent term extensions connected with any licensed or sublicensed
Patent Rights, and (b) ILDONG and its Affiliates are not consulted with respect to, and do not otherwise participate in, any decisions
(other than those described in clauses (ii), (iii) and (iv) above), or otherwise collaborate with any Third Party, with respect
to (x) the commercialization of products with respect to such Competitive Program or (y) the commercial strategy with respect
to products with respect to such Competitive Program.

 

1.36         “Drug
Approval Application” means, with respect to a Product in the Territory, an application for Marketing Authorization
for such Product in the Territory. For purposes of clarity, Drug Approval Application shall include, without limitation (a) a
counterpart of an NDA or BLA (as in the US), sNDA or sBLA (as in the US), or MAA (as in Europe) in any country or region in the
Territory; and (b) and all supplements and amendments to the foregoing.

 

1.37         “Excluded
Application” means (a) any application involving the determination or monitoring of (i) the presence or absence of a
disease; (ii) the stage, progression or severity of a disease or (iii) the effect on a disease of a particular treatment; (b)
any application involving the selection of patients for a particular treatment; and (c) any in vitro applications or uses.

 

1.38         “Executive
Officer” means the Chief Executive Officer of SUBLICENSOR and the Chief Executive Officer of ILDONG.

 

1.39         “FDA”
means the United States Food and Drug Administration or any successor agency or authority thereto.

 

1.40         “FDCA”
means the United States Federal Food, Drug, and Cosmetic Act, as amended.

 

1.41         “Field”
means the treatment, control, mitigation, prevention and/or cure of all human therapeutic Indications. For purpose of clarity,
the definition of “Field” shall not include any Excluded Application.

 

1.42         “First
Commercial Sale” means, with respect to a Product in the Territory, the first sale, transfer or disposition for value
to an end user of such Product in the Territory after Marketing Authorization for such Product has been received in the Territory;
provided, that, a First Commercial Sale shall not include: (a) any sale to an Affiliate, Sublicensee or Distributor (unless
the Affiliate, Sublicensee or Distributor is the last entity in the distribution chain of the Product), (b) any use
of a Product in Clinical Trials, pre-clinical studies or other research or development activities, or (c) the disposal or transfer
of Products for a bona fide charitable purpose, including compassionate use or named patient use.

 

    	8

    	 

    

 

1.43         “Force
Majeure” means any occurrence beyond the reasonable control of a Party that (a) prevents or substantially interferes
with the performance by such Party of any of its obligations hereunder and (b) occurs by reason of any act of God, flood, fire,
explosion, earthquake, strike, lockout, labor dispute, casualty or accident, or war, revolution, civil commotion, act of terrorism,
blockage or embargo, or any injunction, law, order, proclamation, regulation, ordinance, demand or requirement of any government
or of any subdivision, authority or representative of any such government.

 

1.44         “GLP”
means the then-current Good Laboratory Practice Standards promulgated or endorsed by the FDA or, in the case of foreign jurisdictions,
comparable regulatory standards promulgated or endorsed by the applicable Regulatory Authority.

 

1.45         “GMP”
means current Good Manufacturing Practices that apply to the Manufacture of API and/or the clinical or commercial supply of Products,
including, without limitation, the United States regulations set forth under Title 21 of the United States Code of Federal Regulations,
parts 210 and 211, as amended from time-to-time, as well as all applicable guidance published from time-to-time by the FDA or,
in the case of foreign jurisdictions, comparable regulatory standards promoted or endorsed by the applicable Regulatory Authority
and the International Conference on Harmonization Guidelines ICHQ7A Good Manufacturing Practice Guidance for API or the principles
and guidelines of Good Manufacturing Practices for Medicinal Products as defined with EC Directive 2003/94/EC and associated EC
Guide to Good Manufacturing Practice.

 

1.46         “Good
Clinical Practice” or “GCP” means the applicable regulations or guidance relating to the design,
conduct, recording, and reporting of Clinical Trials that involve the participation of human subjects, when generating Clinical
Trial data intended to be submitted to Regulatory Authorities, as set forth in the FDCA and any regulations or guidance documents
promulgated thereunder, including but not limited to the ICH E6 consolidated guidance on Good Clinical Practice.

 

1.47         “Hadam
License Agreement” means that certain License Agreement, dated August 15, 2006, by and between LFB Biotechnologies (“LFB”)
and Dr. Martin Hadam and licensed to SUBLICENSOR pursuant to the LFB/GTC License.

 

1.48         “Hatch-Waxman
Act” means the Drug Price Competition and Patent Term Restoration Act of 1984, as amended.

 

1.49         “IND”
means: (a) an Investigational New Drug Application, as defined in the FDCA and regulations promulgated thereunder, or any counterpart,
successor application, or procedure required to initiate clinical testing of a Product in humans in the Territory; and (b) all
supplements and amendments to the foregoing. 

 

    	9

    	 

    

 

1.50         “Indication”
means each separate and distinct disease, illness and/or condition in humans including without limitation Non-Hodgkin's Lymphoma,
Chronic Lymphocytic Leukemia, Lupus, and Rheumatoid Arthritis, for which Regulatory Approval is being sought.

 

1.51         “Investigator’s
Brochure” means a compilation of preclinical and clinical data with respect to a new investigational drug that is proposed
for filing with a Regulatory Authority and used to provide information to clinical investigators and Regulatory Authorities.

 

1.52         “Joint
Improvement” means any Program Technology that is (a) jointly conceived, developed or reduced to practice by one or
more employees of, or consultants to, ILDONG and/or its Affiliates, Sublicensees, Distributors and one or more employees of, or
consultants to, SUBLICENSOR or (b) conceived , developed, or reduced to practice solely by one or more employees of, or consultants
to ILDONG resulting from the use by ILDONG in any material respect of the Licensed Technology, Licensed Patent Rights, Background
Patent Right or SUBLICENSOR Materials.

 

1.53         “Joint
Patent rights” means any Patent Rights related to Joint Improvements.

 

1.54         “Knowledge”
or “Known” means, with respect to a Party, the actual knowledge of the Executive Officer or of
any executive officer (as defined for purposes of Section 14 of the Securities Exchange Act of 1934, as amended) of such Party.

 

1.55         “LFB-R603”
means the cell-culture produced chimeric monoclonal antibody described on Schedule 3 attached hereto and incorporated
herein by reference.

 

1.56         “Licensed
Patent Rights” means any Patent Rights that are Controlled by SUBLICENSOR during the Term and that (a) contain one or
more claims that Cover any Compound or Product; and (b) are necessary or useful for ILDONG to Develop and/or Commercialize
any Compound or Product in the Field and in the Territory. For purposes of clarity, (a) the Licensed Patent Rights existing as
of the Effective Date are listed on Schedule 4 attached hereto and (b) Schedule 4 shall be updated by SUBLICENSOR
by written notice to ILDONG on an annual basis during the Term to include any additional
patents and patent applications not previously listed; provided, that, the exclusion of a patent or patent application from Schedule
4 shall not be deemed to be a conclusive indication of whether that patent or application is or should be considered a “Licensed
Patent Right” for purposes of this Agreement.

 

1.57         “Licensed
Technology” means any Technology that is Controlled by SUBLICENSOR during the Term and that (a) relates to any Compound
or Product and (b) is necessary or useful for ILDONG to Develop, and/or Commercialize any Compound or Product in the Field and
in the Territory.

 

1.58         “Licensed
Trademark” shall mean the registered trademarks listed in Schedule 7 hereto which are owned or controlled by SUBLICENSOR
and which may be used by ILDONG in connection with the sale and marketing of the product in the Territory.

 

    	10

    	 

    

 

1.59         “SUBLICENSOR
Materials” means any Proprietary Materials that are Controlled by SUBLICENSOR and used by SUBLICENSOR, or provided by
SUBLICENSOR for use, in the Development Program.

 

1.60         “SUBLICENSOR
Improvement” means any Program Technology that is conceived or first reduced to practice by employees of, or consultants
to, SUBLICENSOR alone or jointly with any Third Party, without the use, in any material respect, of any ILDONG Materials or Joint
Improvement.

 

1.61         
“Manufacture” or “Manufacturing” or “Manufactured”
means all activities related to the production of any API or Product, including the manufacture, receipt, inspection, storage
and handling of materials, and the manufacture, processing, purification, packaging, labeling, warehousing, quality control testing
(including in-process release and stability testing), shipping and release of API or Product.

 

1.62         “Manufacturing
Development” means, with respect to any API or Product, all activities related to the optimization of a commercial-grade
Manufacturing process for the Manufacture of such API or Product including, test method development and stability testing, formulation,
validation, productivity, trouble shooting and next generation formulation, process development, Manufacturing scale-up, strain
improvements, development-stage Manufacturing, and quality assurance/quality control development.

 

1.63         “Marketing
Authorization” means, with respect to any Product, the Regulatory Approval required by Applicable Laws to market and
sell such Product for use for any Indication including without limitation Non-Hodgkin's Lymphoma, Chronic Lymphocytic Leukemia,
Lupus, and Rheumatoid Arthritis for humans in the Territory.

 

1.64         “NADA”
means a New Animal Drug Application required by the US Food and Drug Administration for the use of any genetically engineered
animal in which the gene coding for the API is stably integrated in the genome of the animal.

 

1.65         “NDA”
means (a) any New Drug Application, as defined in the FDCA and regulations promulgated thereunder, or any counterpart, successor
application, or procedure required to market and sell a Product in the Territory; and (b) all supplements and amendments to the
foregoing.

 

1.66         “Net
Sales” means the gross amount billed or invoiced by ILDONG or any of its Affiliates, Sublicensees or Distributors (each,
a “Seller”) to Third Parties in the Territory for sales or other dispositions or transfers for value of Products
less (a) allowances for trade, quantity and cash discounts actually allowed and taken; (b) freight, transportation, insurance,
postage charges and customs duties included on a Seller’s bill or invoice or as a separate item; (c) credits, rebates, allowances,
and amounts repaid due to returns, recalls or government regulations, including allowances for uncollectible amounts and/or bad
debts on previously sold Products; (d) retroactive price reductions that are actually allowed or granted; (e) sales taxes, excise
taxes, value-added taxes and other taxes (other than income taxes) levied on the invoiced amount; and (f) duties, tariffs and
other governmental charges. In addition, Net Sales are subject to the following:

 

    	11

    	 

    

 

(i)          Net
Sales shall not include sales or transfers between ILDONG and any of its Affiliates, Sublicensees or Distributors unless such
Affiliate, Sublicensee or Distributor is the end user of the Product.

 

(ii)         If
any Seller effects a sale, disposition or transfer of a Product to a Third Party in a particular country other than on customary
commercial terms or for non-monetary consideration, the Net Sales of such Product to such Third Party shall be deemed to be “the
fair market value” of such Product. For purposes of this subsection (ii), “fair market value” means the value
that would have been derived had such Product been sold as a separate product to another customer in the country concerned on
customary commercial terms.

 

(iii)        For
purposes of this Agreement, “sale” shall mean any transfer or other distribution or disposition, but shall not include
transfers or other distributions or dispositions of Product at no charge for academic research, preclinical, clinical, or regulatory
purposes (including the use of a Product in Clinical Trials) or in connection with patient assistance programs or other charitable
purposes or to physicians or hospitals for promotional purposes (including free samples to a level and in an amount which is customary
in the industry and/or which is reasonably proportional to the market for such Product).

 

(iv)        For
the purposes of determining royalty rates and the royalties payable on Combination Products, Net Sales of Product shall be calculated
by multiplying the Net Sales of the Combination Product by the fraction A/A+B, where A is the average selling price, during the
royalty paying period in question, of the Product sold separately in the country in which the sale of the Combination Product
is made, and B is the average selling price, during the royalty period in question, of the other active ingredients or components
sold separately.  In the event that such average selling price cannot be determined for both Product and all other active
ingredients and components included in the Combination Product, Net Sales for purposes of determining payments under this Agreement
shall be calculated by multiplying the Net Sales of the Combination Product by the fraction C/(C+D) where C is the standard fully-absorbed
cost of the Product portion of the combination, and D is the standard fully-absorbed cost of the other active ingredient or component
included in the Combination Product, as determined by ILDONG using its standard accounting procedures consistently applied. In
the event that the standard fully-absorbed cost of the Product and/or the other active ingredients or components included in such
Combination Product cannot be determined, for the purposes of determining royalties payable hereunder, the Parties shall negotiate
in good faith to determine an appropriate commercial value for all the components in the Combination Product and calculate Net
Sales of such Combination Product accordingly.

 

1.67         “Patent
Rights” means the rights and interests in and to issued patents and pending patent applications (which, for purposes
of this Agreement, include certificates of invention, applications for certificates of invention and priority rights) in any country
or region, including all provisional applications, substitutions, continuations, continuations-in-part, divisions, renewals, all
letters patent granted thereon, and all reissues, re-examinations and extensions thereof, and all foreign counterparts of any
of the foregoing.

 

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1.68         “Person”
means an individual, sole proprietorship, partnership, limited partnership, limited liability partnership, corporation, limited
liability company, business trust, joint stock company, trust, incorporated association, joint venture or similar entity or organization,
including a government or political subdivision, department or agency of a government.

 

1.69         “Phase
1 Clinical Trial” means a human clinical trial conducted for a Product in any country that would satisfy the requirements
of 21 CFR 312.21(a), as amended (or its foreign equivalent).

 

1.70         “Phase
2 Clinical Trial” means a human clinical trial conducted for a Product for any Indication that would satisfy the requirements
of 21 CFR 312.21(b), as amended (or its foreign equivalent) and is intended to explore one or more doses, dose response, and duration
of effect, and to generate initial evidence of clinical activity and safety for such Product in the target patient population.

 

1.71         “Phase
3 Clinical Trial” means a pivotal human clinical trial conducted for a Product for any Indication that would satisfy
the requirements of 21 CFR 312.21(c), as amended (or its foreign equivalent) and is intended to confirm with statistical significance
the efficacy and safety of such Product with respect to a particular Indication, and is performed to obtain Marketing Authorization.

 

1.72         
“Pivotal Clinical Trial” means (a) a Phase 3 Clinical Trial or, (b) a Phase 2 Clinical Trial to the
extent: (i) in the United States, the protocol for that Phase 2 Clinical Trial shall have been reviewed by the FDA under its current
Special Protocol Assessment Guidelines (or equivalent guidelines issued in the future), and any comments from the FDA on that
protocol are incorporated in the final protocol for that Phase 2 Clinical Trial or are resolved to the FDA’s satisfaction
as evidenced by further written communications from the FDA; or (ii) a process with a comparable result – acceptance of
a Phase 2 Clinical Trial protocol as “potentially pivotal” – has occurred with the EMA/CHMP in the European
Union; or (iii) based on the results of that Phase 2 Clinical Trial, either the FDA, EMA, or corresponding Regulatory Authority
in the Territory has determined that the Phase 2 Clinical Trial can be considered as a pivotal clinical trial for purposes of
obtaining Marketing Authorization.

 

1.73         “Post
Approval Clinical Trials” means any Phase 4 clinical trial and/or any clinical trial undertaken after any Marketing
Approval is granted such as Investigator sponsored study.

 

1.74         “Pricing”
means the determination of Product pricing at all levels, including the Product list price (also referred to as Wholesale
Acquisition Cost) and the net price in which the Product is offered to purchasers and payers (including both private sector and
government entities).

 

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1.75         “Pricing
Approval” means, with respect to a Product in the Territory, any pricing and reimbursement approvals, guidance or recommendations
reasonably necessary to market such Product in the Territory. 

 

1.76         
“Product” shall mean any pharmaceutical or medicinal item, substance, formulation or dosage that is
comprised of, or contains, a Compound (whether or not such Compound is the sole active ingredient).

 

1.77         “Product
Improvement” means any Program Technology related to or concerning the Product and/or Licensed Technology, whether or
not patentable, copyrightable or otherwise protectable under any intellectual property rights.

 

1.78         “Program
Technology” means any Technology or Proprietary Material that is conceived and first reduced to practice (actually or
constructively), by ILDONG and/or its Affiliates or jointly by the Parties, or by any Sublicensee or by any Distributors, whether
or not patentable, in the conduct of the Development Program and/or in connection with the Commercialization of Products.

 

1.79         “Proprietary
Materials” means any tangible chemical, biological or physical materials that (a) are furnished
by or on behalf of one Party to the other Party in connection with this Agreement, whether or not specifically designated as proprietary
by such Transferring Party, or (b) that are otherwise conceived or reduced to practice by ILDONG in the conduct of the Development
Program and/or in connection with the Commercialization of Products.

 

1.80         
“Regulatory Approval” means, with respect to the Territory, any approval, product and establishment
license, registration or authorization of any Regulatory Authority required for the Manufacture, use, storage, importation, exportation,
transport or distribution of a Product in the Territory, including any Marketing Authorization.

 

1.81         “Regulatory
Authority” means any national, international, regional, state or local regulatory agency, department, bureau, commission,
council or other governmental entity with authority over the distribution, importation, exportation, Manufacture, production,
use, storage, transport, clinical testing, marketing, Pricing or sale of a Product in the Territory.

 

1.82         “Regulatory
Filings” means, collectively: (a) all INDs, NDAs, BLAs, NADAs, MAAs establishment license applications, Drug Master
Files, and all other similar filings (including, without limitation, counterparts of any of the foregoing in the Territory); (b)
all supplements and amendments to any of the foregoing; (c) all data and other information contained in, and correspondence relating
to, any of the foregoing; and (d) any and all orphan drug applications. 

 

1.83         “Reimbursement
Approval” means, with respect to a Product in the Territory, any pricing reimbursement registration or listing
on formularies and all approval necessary to an optimal introduction of the Product on the market.

 

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1.84         “Royalty
Term” means with respect to each Product in each country in the Territory, the period beginning on the date of First
Commercial Sale of such Product in such country and ending on the later of (a) the expiration of the last to expire Valid Claim
of the Licensed Patent Rights or ILDONG Program Patent Rights in such country that Covers the composition of matter, Manufacture,
use or sale of such Product, and (b) fifteen (15) years from the date of the First Commercial Sale of such Product in such country.

 

1.85         “Sales
Target” means that proportion of the total patient market for the Product provided to Sublicensor by ILDONG and expressed
as either a percentage or calculated number of vials of the Product as set forth in Schedule 3.

 

1.86         “Serious
Adverse Event” means any untoward medical occurrence that, at any dose, results in death, is life-threatening,
requires inpatient hospitalization or prolongation of existing hospitalization, results in persistent or significant disability/incapacity,
or is a congenital anomaly/birth defect, as more full defined in 21 CFR § 312.32.

 

1.87         “Significant
Development Event” means any of the following material Development events, a summary of which shall be included
in any Development Report: (a) any material interaction and/or written correspondence between ILDONG and any Regulatory Authority
with respect to the Compound or a Product; (b) any material event with respect to any Clinical Trial involving the Compound and/or
a Product, including any such event that is ongoing as of the date of the applicable Development Report, or is reasonably expected
to occur or be initiated within twelve (12) months of the date of the applicable Development Report; and (c) any material result
obtained in the conduct of any Clinical Trial involving the Compound and/or a Product during the period covered by the Development
Report. For purposes of clarity, all information provided to SUBLICENSOR with respect to Significant Development Events, shall
be deemed to be Confidential Information of ILDONG. For purposes of this definition, “material” shall be defined as
any event and/or result which have had or may have a significant impact on the activities and timelines defined in the Development
plan of each Product.

 

1.88         “sBLA”
means a Supplemental Biologic License Application, as defined in the FDCA and applicable regulations promulgated thereunder.

 

1.89         “sNDA”
means a Supplemental New Drug Application, as defined in the FDCA and applicable regulations promulgated thereunder.

 

1.90         “Sublicensee”
means any Third Party to which ILDONG grants a sublicense in accordance with Section 2.2.

 

1.91         “Sublicense
Agreement” means any agreement by and between a Party and a Sublicensee which is entered into in accordance with Section
2.2.

 

    	15

    	 

    

 

1.92         
“Technology” means, collectively, all inventions, discoveries, improvements, trade secrets and proprietary
information and methods, whether or not patentable or patented, including without limitation: (a) methods of Manufacture or use
of, and structural and functional information pertaining to, chemical compounds; (b) compositions of matter, data, formulations,
processes, techniques, know-how and results (including any negative results) and (c) results of clinical trials, pre-clinical
trials and other Development activities.

 

1.93         “Territory”
means South Korea, Taiwan, Singapore, Indonesia, Malaysia, Thailand, Philippines, Vietnam, and Myanmar.

 

1.94         “TG20”
means the transgenic-derived chimeric monoclonal antibody described more fully on Schedule 5 attached hereto and incorporated
herein by reference.

 

1.95         “ILDONG
Materials” means any Proprietary Materials that are Controlled by ILDONG and used by ILDONG, or provided by ILDONG for
use, in the Development Program.

 

1.96         
“Third Party” means (a) with respect to ILDONG, any Person other than ILDONG and its respective Affiliates,
Sublicensees and Distributors and (b) with respect to SUBLICENSOR, any Person other than its Affiliates.

 

1.97       “Valid
Claim” means any claim of (a) an issued unexpired patent that (i) has not been finally cancelled, withdrawn, abandoned
or rejected by any administrative agency or other body of competent jurisdiction, (ii) has not been permanently revoked, held
invalid, or declared unpatentable or unenforceable in a decision of a court or other body of competent jurisdiction that is unappealable
or unappealed within the time allowed for appeal, (iii) has not been rendered unenforceable through terminal disclaimer or otherwise,
and (iv) is not lost through an interference proceeding that is unappealable or unappealed within the time allowed for appeal;
or (b) a claim of a pending Patent application, which claim has not been abandoned or finally disallowed without the possibility
of appeal.

  

Additional Definitions.
In addition, each of the following definitions shall have the respective meanings set forth in the section of this Agreement indicated
below:

 

	Definition	 	Section
	Action	 	10.2.1(a)(ii)
	Anticipated Approval Notice	 	5.11.1(a)
	Claims	 	13.1
	Commercialization Report	 	5.8
	Competitive Program Transaction	 	2.4.2(a)
	Competitive Program Transaction Notice	 	2.4.2(a)
	Development Report	 	3.4.1
	Diligence Failure Notice	 	5.4
	Disclosing Party	 	1.28
	Dispute	 	14.1
	Effective Date	 	Preamble
	Filing Party	 	10.1.4

 

 

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	Definition	 	Section
	 	 	 
	LFB	 	Preamble
	LFB/GTC	 	Preamble
	SUBLICENSOR	 	Preamble
	SUBLICENSOR Indemnities	 	13.1
	ICH	 	3.4
	Indemnified Party	 	13.3
	Indemnifying Party	 	13.3
	Infringement	 	10.2.1(a)(i)
	Infringement Notice	 	10.2.1(a)(i)
	Losses	 	13.1
	Option	 	Recitals
	Option Agreement

        Party/Parties
	 	Recitals

        Preamble

	Patent Coordinator	 	9.4
	Recall	 	5.10
	Receiving Party	 	1.28
	Recipient Party	 	3.6
	ILDONG	 	Preamble
	ILDONG Diligence Failure Notice	 	5.4
	ILDONG Indemnities	 	13.2
	Term	 	11.1
	Transferring Party	 	3.6

  

2.          LICENSE
GRANTS; EXCLUSIVITY

 

2.1           Sublicense.

 

2.1.1           Grant
of Sublicense to ILDONG. Subject to the terms and conditions of this Agreement, SUBLICENSOR hereby grants to ILDONG,
a royalty-bearing, exclusive within the Territory, license or sublicense (with respect to Licensed Technology and/or Licensed
Patent Rights licensed by Third Parties to SUBLICENSOR), including the right to grant sublicenses as provided in Section 2.2,
under the Licensed Technology and Licensed Patent Rights to Develop the Compounds or Products as part of the Development
Program and to Commercialize, use, have used, supply, sell, offer to sell, import, have imported, market, and otherwise Commercialize
Products in the Field in the Territory.

 

In addition, SUBLICENSOR
hereby grants to ILDONG a non-exclusive, fully paid up license or sublicense, including the right to grant sublicenses as provided
in Section 2.2, under the Background Patent Rights to Develop the Compounds or Products as part of the Development Program and
to Commercialize, use, have used, and supply, sell, offer to sell, import, have imported, market, and otherwise Commercialize
Products in the Field in the Territory.

 

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2.1.2           Reversion.
Should ILDONG or its Sublicensee(s) stop the Commercialization of any Product, any and all license granted to ILDONG by
SUBLICENSOR in respect of such Product shall automatically revert back to SUBLICENSOR (including licenses granted according to
Sections 2.1.1 and 2.1.4). In such case, ILDONG commits to grant to SUBLICENSOR an exclusive, royalty free license or sublicense
(with respect to Rights licensed by Third Parties to ILDONG), including the right to grant sublicenses, under all Patent Rights
Controlled by ILDONG, Joint Improvement and Joint Patent Right necessary or useful for SUBLICENSOR to Develop such Compounds or
Product and/or use, have used, supply, sell, offer to sell, import, have imported, market, and otherwise Commercialize such Products
in the Field and in the Territory.

 

For the avoidance of
doubt, the Commercialization of a Product shall be considered as stopped if, after all Regulatory Approvals and Reimbursement
Approvals have been granted in South Korea when:

 

		-	the aggregate amount
                                                                             spent by ILDONG or its Sublicensee(s) on the Commercialization
                                                                             activities is less than $* per year for
                                                                             such Product; and

 

		-	or, a minimum of
                                                                             thirty percent (*%) of Sales Target has
                                                                             not been recorded for over a period of more than
                                                                             * (*) years;

 

2.1.3           Disclosure
of Technology.  SUBLICENSOR shall provide prompt written notice to ILDONG of all Licensed Patent Rights or Licensed
Technology Controlled by SUBLICENSOR and their respective Affiliates that come under the Control of SUBLICENSOR or their respective
Affiliates after the Effective Date during the Term.

 

2.1.4           Grant
of License to Licensed Trademark. 

 

(a)          Ownership
of Trademarks. ILDONG hereby acknowledges that SUBLICENSOR
has already performed a Trademarks research and has registered the Licensed Trademarks. However,
ILDONG is entitled to use and register any other trademarks, on SUBLICENSOR behalf, and at ILDONG’S own cost, for Development
and Commercialization purposes ILDONG agrees that it will not apply
for the registration of the Licensed Trademark (or any mark confusingly similar thereto) anywhere in the world. 

 

(b)          Grant
of License. Subject to the terms and conditions of this Agreement, SUBLICENSOR hereby grants to ILDONG a royalty
bearing, sublicense to use the Licensed Trademark solely for the purpose
of registering, using, Commercializing, importing, exporting, selling, offering for sale, and having sold the Product in
the Field in the Territory on the terms and subject to the conditions set forth in this Agreement.

 

 

 

* Confidential
material redacted and filed separately with the Commission.

 

    	18

    	 

    

(c)          Covenants
of ILDONG. ILDONG hereby agrees that all use of the Licensed Trademark by ILDONG, and any goodwill associated with the
use of the Licensed Trademark by ILDONG, shall inure to the benefit of SUBLICENSOR. ILDONG hereby agrees that nothing in this
Agreement shall give ILDONG any right, title or interest in the Licensed Trademark other than the right to use the Licensed Trademark
in accordance with this Agreement. ILDONG further agrees that it will not: (i) oppose or assist any Third Party in opposing any
application for registration, re-registration or renewal of the Licensed Trademark; ii) apply for or otherwise seek (or assist
any Third Party in applying for or otherwise seeking) complete or partial revocation, cancellation, invalidation or removal of
the Licensed Trademark from any register or (iii) challenge or bring (or assist any Third Party in challenging or bringing) any
proceeding or action in relation to the use or ownership of the Licensed Trademark.

 

(d)          Registration
of Licensed Trademark. SUBLICENSOR shall have the sole right to apply for registration of the Licensed Trademark in the
Territory to the extent such registration has not already been obtained by SUBLICENSOR at the Effective Date and for paying all
applicable fees, including all registration and application fees and renewal fees. SUBLICENSOR shall update attached the Schedule
7 for ILDONG’s use of the Licensed trademarks in the Territory prior to the NDA in each country..

 

(e)          Use
of Licensed Trademark. ILDONG shall use the Licensed Trademark solely (i) in the manner specified in this Agreement and
(ii) in connection with the Product and not for any other goods or services. ILDONG agrees not to use any other trademark or service
mark in combination with the Licensed Trademark without the prior written consent of SUBLICENSOR. ILDONG, at its sole cost and
expense, will provide to SUBLICENSOR representative samples of all products, product packaging, literature, brochures, signs,
and advertising materials prepared by ILDONG which bear, display, or include any reference to the Licensed Trademark, and ILDONG
shall obtain the written approval of SUBLICENSOR with respect to all such materials prior to the use thereof. ILDONG will not
distribute or otherwise use any samples or materials or other media bearing or displaying the Licensed Trademark unless and until
SUBLICENSOR has notified ILDONG in writing of SUBLICENSOR’s approval, which approval shall not be reasonably withheld.

 

(f)          Notice.
ILDONG shall promptly notify SUBLICENSOR (i) of any claim, threat, lawsuit, filing, or other notice or allegation of infringement
of which it is aware regarding ILDONG’s use of the Licensed Trademark and/or (ii) if it becomes aware of the existence of
any Third Party applications to register anywhere in the world any mark or name which consists of or incorporates the Licensed
Trademark. SUBLICENSOR shall have the sole right, but not the obligation, to bring infringement, unfair competition, or other
claims or proceedings involving the Licensed Trademark and ILDONG hereby acknowledges and agrees that it shall have no such right.
If requested by SUBLICENSOR, ILDONG shall cooperate with SUBLICENSOR in connection with any such action.

 

    	19

    	 

    

 

2.2           Right
to Sublicense.

 

2.2.1           Sublicense.
ILDONG shall have the right to grant sublicenses under the licenses granted to it under Section 2.1.1 to any Sublicensee; with
SUBLICENSOR prior written notification provided, that, (a) the terms of each such sublicense shall be consistent with the rights
and obligations of ILDONG under the Agreement; (b) it shall be a condition of any such sublicense that such Sublicensee agrees
to be bound by the terms of this Agreement applicable to the Development and Commercialization of Products in the Field in the
Territory; (c) ILDONG shall provide SUBLICENSOR with a copy of any such Sublicense Agreement within ten (10) days of the execution
of each such Sublicense Agreement; and (d) ILDONG shall not be relieved of its obligations pursuant to this Agreement as a result
of such sublicense, except to the extent such obligations are satisfactorily performed by any such sublicense.

 

2.2.2           Grant
of Rights to Distributors. ILDONG or any of its Affiliates and Sublicensees shall have the right, with SUBLICENSOR prior
written notification, to appoint one or more Distributors for Products in the Territory. ILDONG shall provide SUBLICENSOR with
a copy of each such agreement with any Distributor within ten (10) days of execution of such agreement.

 

2.3           No
Other Rights.

 

2.3.1           ILDONG
shall have no rights to use or otherwise exploit Licensed Technology, Licensed Patent Rights, or SUBLICENSOR Proprietary Materials,
and SUBLICENSOR shall have no rights to use or otherwise exploit ILDONG Technology, ILDONG Patent Rights or ILDONG Proprietary
Materials, in each case, except as expressly set forth in this Agreement.

 

2.4           Exclusivity.

 

2.4.1           Exclusivity
Obligation.  During the Term of this Agreement, ILDONG shall not, and shall cause each of its Affiliates to not,
conduct any activity, either on its own, or with, for the benefit of, or sponsored by, any Third Party, that, in any case, involves
the research, development or commercialization of any other anti CD 20 monoclonal antibody, or any compound that embodies or is
derived from any anti CD 20 monoclonal antibody, for use in the Field that is competitive with or adversely affects the Development
or Commercialization of any of the Compounds or Products, except hereunder in connection with the research, Development and/or
the Commercialization of the Compounds and Products. Notwithstanding the foregoing, at ILDONG’s request, SUBLICENSOR may
allow ILDONG to Develop and Commercialize all combinations with the Compounds and Products which would be benefit in improving
the Development and/or the Commercialization of the Compounds and Products, such consent to not be unreasonably withheld.

  

    	20

    	 

    

 

2.4.2           Competitive
Program Transaction.

 

(a)          Notice.
If at any time during the Term, ILDONG grants a sublicense or other rights to any Third Party to utilize any Technology or Patent
Rights Controlled by ILDONG or any of its Affiliates for the Development or Commercialization of any of the Compounds or Products,
or ILDONG undergoes a Change of Control, or if ILDONG or any of its Affiliates acquires all or substantially all of the assets
or common stock of a Third Party (whether by asset or stock purchase, merger, consolidation, share exchange or other similar transaction)
and, in any such case, such Third Party or any of such Third Party’s Affiliates (in the case of a Third Party Sublicensee
or a Third Party acquirer of ILDONG), has a Competitive Program (a “Competitive Program Transaction”), ILDONG
shall provide SUBLICENSOR with prompt written notice describing such Competitive Program Transaction in reasonable detail
which shall include a description of the nature of such Competitive Program
(the “Competitive Program Transaction Notice”). Such Competitive Program Transaction Notice shall be provided
by ILDONG prior to execution of such agreement, if permitted under Applicable Laws and not prohibited by the terms of any agreement
between ILDONG or any of its Affiliates and any Third Party, and otherwise as soon as practicable thereafter and, in any event,
not later than promptly following the consummation of the transaction contemplated by such agreement.

 

(b)          Meeting
of the Parties. As soon as practicable following SUBLICENSOR’S receipt of any Competitive Program Transaction
Notice, the Parties shall meet to discuss whether,
notwithstanding any provision hereof, such
Competitive Program would continue following such Competitive Program Transaction. In any such meeting the Parties will review
any restrictions applicable to such Competitive Program that may prevent its combination with this Agreement, and other issues
that may impact the potential combination of such Competitive Program with this Agreement. 

 

(c)          Integration
of Competitive Program.
If ILDONG and SUBLICENSOR mutually agree that such Competitive Program may be integrated
into this Agreement, then within *(*)
days after such determination the Parties shall agree upon an amendment to this Agreement that will provide either (X) (i) that
each compound or product that is part of the Competitive Program would be deemed to be a Compound,
whether or not such compound or product meets the standards or criteria hereunder for a Compound and (ii) the
Parties’ rights and obligations under this Agreement will apply in all relevant respects to any such deemed Compounds
(including the payment of the milestones, and royalties
set forth in this Agreement) or (Y) that the Development and Commercialization diligence standards of this Agreement shall be
revised to ensure that the effort and resources that the Third Party applies (or ILDONG, if ILDONG is the surviving entity) applied
to the Competitive Program shall be equally applied to the Development and Commercialization of the Compounds and Products. 

 

(d)          Termination/Divesting
of Competitive Program. If the Parties
are unable to reach agreement on the terms pursuant to which the integration of any Competitive Program into this Agreement would
occur, ILDONG shall have an additional * (*) days during which it shall determine whether to (i) terminate
the Competitive Program or (ii) Divest itself of the Competitive Program. If ILDONG notifies SUBLICENSOR in writing that it will
terminate such Competitive Program, ILDONG shall promptly terminate such Competitive Program as quickly as possible with due regard
for patient safety and the rights of any subjects that are participants in any clinical studies relating to such Competitive Program
and Applicable Laws, and in any event within * (*) days after its delivery of such written notice to SUBLICENSOR.
If ILDONG notifies SUBLICENSOR in writing that it will Divest itself of the Competitive Program, then it shall do so as promptly
as practicable but in any event on or before *
(*) months from the date of such
notice; provided, that, during the period during which such Divestiture is pending, ILDONG shall maintaining separate teams working
on such Competitive Program and this Agreement. If ILDONG does not notify SUBLICENSOR in writing at the conclusion of the *
(*) day period provided above that ILDONG will terminate or Divest itself of such Competitive Program, or if
ILDONG does so notify SUBLICENSOR but fails to terminate or Divest the Competitive Program within the periods provided above,
SUBLICENSOR shall have the right to immediately terminate this Agreement by providing written notice to ILDONG.

 

 

 

* Confidential
material redacted and filed separately with the Commission.

 

    	21

    	 

    

 

 

3.          DEVELOPMENT
OF PRODUCTS

 

For the sake of clarity, in this Section
3, ILDONG means ILDONG, and where applicable, its Affiliates, Sublicensees, and Distributors.

 

3.1           Development
Program. 

 

3.1.1           Objective
of Development Program. The objective of the Development Program shall be the Development by ILDONG, in conjunction with
the Development activities of the SUBLICENSOR, of the Compounds and Products in the Field in order to obtain Marketing Authorization
for such Products in the Field in the Territory as promptly as practicable.

 

3.1.2           Responsibility
for Development. ILDONG shall have the sole right and responsibility for, and shall have full control and authority
over, at its sole cost and expense (including without limitation all costs attributable to the supply of Product for the conduct
of Clinical Trials), the Development of Products in the Territory, including conducting all Development activities (including
bridging study(ies), if such study(ies) are necessary due to regulatory gaps) beyond the Development activities being conducted
by the SUBLICENSOR outside of the Territory (which should be supportive of obtaining Marketing Authorization by the FDA and/or
EMA, but may or may not be sufficient to support the obtaining of Marketing Authorization in the Territory) and establishing the
methods and means by which it performs such activities under this Agreement. Should ILDONG, for any regulatory filing, desire
to utilize data from any clinical trials or studies conducted in indications outside *, *, *,
and *, which have been fully funded by the SUBLICENSOR, ILDONG shall pay to the SUBLICENSOR *% of the full
cost of the trial which produced such data. ILDONG shall have the right to engage Third Party contractors to perform any of its
Development activities in the Territory, provided such Third Party contractors are approved by SUBLICENSOR, such approval not
to be unreasonably withheld, and subject to the execution by each such Third Party contractor of an agreement containing provisions
that are consistent with and comparable in scope to, Articles 7 and 8 of this Agreement.

 

3.2           Development
Diligence.

   

ILDONG, and/or its
Affiliates, Sublicensees, and Distributors shall use Commercially Reasonable Efforts during the Term to commit such resources
(including employees, consultants, contractors, facilities, equipment and materials) as may be required to support the obtaining
of Market Authorization in the Territory as further described in 3.1.2.

 

 

* Confidential
material redacted and filed separately with the Commission.

  

 

    	22

    	 

    

 

3.3           Preparation
of Development Plan. 

 

A Development Plan
in the Territory shall be prepared by ILDONG for each Product and discussed with the SUBLICENSOR for its information and clinical
development and manufacturing planning purposes no less than annually after the Effective Date. During the period commencing on
and after such date and continuing for the remainder of the Term, each party shall prepare and provide to the other party additional
Development Plans detailing any amendments, modifications and/or updates to any existing Development Plan, within thirty (30)
days of the end of each Calendar Year. ILDONG shall seek health authority scientific advice to determine the pivotal studies deemed
necessary for product registration in the Territory at the earliest possible time. The advice received should be reflected in
updated Development Plans. In the event of any conflict between the terms of the Development Plan and the terms and conditions
of this Agreement, the terms and conditions of this Agreement shall prevail..

 

3.4           Compliance.

 

The Parties shall
perform their activities under the Development Program in good scientific manner and in compliance in all material respects with
all Applicable Laws. For purposes of clarity, with respect to each Development activity performed that will or would reasonably
be expected to be submitted to a Regulatory Authority in support of a Regulatory Filing or Drug Approval Application, ILDONG shall
not willfully fail to comply in all material respects with GLPs, GMPs or Good Clinical Practices (or, if and as appropriate under
the circumstances, International Conference on Harmonization (“ICH”) guidance or other comparable regulation
and guidance of any Regulatory Authority in the Territory).

 

3.4.1           Records;
Reports. ILDONG and/or its Affiliates, Sublicensees, and Distributors shall (a) maintain records of its activities under
the Development Program in sufficient detail and in good scientific manner appropriate for patent and regulatory purposes, which
shall fully and properly reflect all work performed and results achieved in the performance of the Development Program and (b)
ILDONG shall keep SUBLICENSOR regularly informed of the progress of its efforts to Develop Products in the Territory. To facilitate
such progress updates, each Party shall provide the other Party with an annual development report (each, a “Development
Report”) (to be delivered with each annual update to the Development Plan) that summarizes: (a) significant Development
activities conducted during the preceding Calendar Year and results obtained with respect to Compounds and Products (including
the status of all Clinical Trials), (b) Significant Development Events applicable to the Compounds and/or Products, (c) a summary
of all Program Technology conceived or reduced to practice by the Parties over such period, (d) a non-binding estimate of the
expected timing of any milestone events with respect to Products and (e) such other information that each Party has in its possession
as may be reasonably requested from time to time by the other party. The Development Plan and each Development Report shall be
deemed Confidential Information. Following the commencement of Commercialization, Development Reports will no longer be required
and will be replaced by the annual Commercialization Report as described in Section 5.8.

 

    	23

    	 

    

 

 

3.5           Supply
of Compound(s) or Products(s) for Development.

 

SUBLICENSOR’s
and ILDONG’s rights and responsibilities pertaining to the supply of the Compound or the Product for the Development shall
be governed by Section 6 below.

 

3.6           Use
of Proprietary Materials.

 

From time to time
during the Term, either Party (the “Transferring Party”) may supply the other Party (the “Recipient
Party”) with Proprietary Materials of the Transferring Party for use in the Development Program. In connection therewith,
each Recipient Party hereby agrees that (a) it shall not use such Proprietary Materials for any purpose other than exercising
its rights or performing its obligations hereunder; (b) it shall use such Proprietary Materials only in compliance with all Applicable
Laws; (c) it shall not transfer any such Proprietary Materials to any Third Party without the prior written consent of the Transferring
Party, except for the transfer of Products for use in Clinical Trials or as otherwise expressly permitted hereby; (d) the Recipient
Party shall not acquire any right, title or interest in or to such Proprietary Materials as a result of such supply by the Transferring
Party; and (e) upon the expiration or termination of the Development Program, the Recipient Party shall, if and as instructed
by the Transferring Party, either destroy or return any such Proprietary Materials that are not the subject of the grant of a
continuing license hereunder.

 

4.          REGULATORY
ACTIVITIES

 

For the sake of clarity, in this Section
4, ILDONG means ILDONG, and where applicable, its Affiliates, Sublicensees and Distributors.

 

4.1           Responsibility
for Regulatory Filings.

 

Subject to the remainder
of this Article 4, (a) ILDONG shall have the sole right and responsibility, at its sole cost and expense, for preparing and filing
all Regulatory Filings and Drug Approval Applications, Pricing Approval applications, or Reimbursement Approval applications required
to Develop Compounds and Commercialize Products in the Territory in its own name; (b) all Regulatory Approvals for Products shall
be solely owned by ILDONG; and (c) ILDONG shall have the sole right and responsibility for (i) maintaining all Regulatory Filings
and/or Marketing Authorizations and (ii) reporting to any Regulatory Authority within the Territory all Adverse Events and Serious
Adverse Events related to any Product if and to the extent required by Applicable Laws. To maximize market protection of Product,
ILDONG may file for any orphan drug designations as appropriate within requisite timeframes prior to the submission of any Marketing
Authorization Application. Firstly, within * (*) months following the QA approval of the Study Report of
the last Clinical Trial as per the Development Program, ILDONG shall file, or cause to be filed, before the Regulatory Authority
(KFDA) in South Korea, all authorization and registration applications required for the promotion, marketing, distribution and
sale of Product in South Korea. ILDONG shall exercise Commercially Reasonable Efforts to obtain Marketing Authorizations with
respect to the Product. Failure to meet this obligation will be considered a material breach of the Agreement and SUBLICENSOR
shall have the right to terminate the Agreement for breach of ILDONG in accordance with Section 11.2.2.

  

 

* Confidential
material redacted and filed separately with the Commission.

    	24

    	 

    

  

4.2           Disclosure;
Right of Access.

 

Upon request from
SUBLICENSOR, ILDONG shall promptly provide SUBLICENSOR with (a) a list of all sites at which Clinical Trials with respect to Products
are being conducted by or on behalf of ILDONG; (b) copies of all Clinical Trial protocols and Investigator’s Brochures with
respect to such Clinical Trials; and (c) access to all data (including non-clinical and Clinical Data), results and information
found in ILDONG’s regulatory files produced by or on behalf of ILDONG, or any of its Affiliates or Sublicensees, in connection
with the conduct by ILDONG of Development activities in its original format, without translation except that translations shall
be provided at no charge where such translations are produced in the ordinary course of business. SUBLICENSOR shall maintain the
confidentiality of such data, results and information and shall only have the right and license to use such data (including Clinical
Data), results and information provided by ILDONG under this Section 4.2 for the performance of its obligations and exercise of
its rights under this Agreement,

  

4.3           Disclosure
of Certain Events.

 

The Parties hereby
agree to report to each other all Adverse Events and/or Serious Adverse Events with respect to the Product (whether occurring
in any Clinical Trial conducted with regard to the Product or in connection with the commercialization of the Product in any country),
within timeframes consistent with its reporting obligations under Applicable Laws and in any event, if either Party is actively
conducting a clinical trial under its own IND or commercializing the Product under its own Marketing Authorization, then the other
Party shall report such events no later than three (3) business days for Serious Adverse Event, and quarterly for Adverse Events,
which report shall, in each case, include the circumstances and nature of such Serious Adverse Event or Adverse Event as required
for reporting under Applicable Laws. In addition, to the extent requested by either Party, the other Party shall promptly provide
to the requesting Party any other information or materials that the requesting Party may require to provide to any Regulatory
Authority with respect to any such Adverse Event or Serious Adverse Event. All disclosures made under this Section 4.3 shall be
deemed Confidential Information of the disclosing Party; provided, that, the Party receiving such disclosures may, upon written
notice to the disclosing Party, report the occurrence, circumstances and nature of such Adverse Event and/or Serious Adverse Event
to any Regulatory Authority solely insofar as such reporting is required to comply with Applicable Laws.

 

    	25

    	 

    

  

4.4           Communication
with Regulatory Authorities in the SUBLICENSOR Commercialization Territory.

 

4.4.1           Participation
in Meetings. ILDONG shall use reasonable efforts to provide SUBLICENSOR with at least thirty (30) days advance notice
of any official meeting with a Regulatory Authority regarding any Marketing Authorization for any Product in the SUBLICENSOR Commercialization
Territory and SUBLICENSOR may elect to send one (1) person reasonably acceptable to ILDONG to participate as an observer (at SUBLICENSOR’S
sole cost and expense) in such meeting.

 

4.4.2           Access;
Notice of Meetings.  ILDONG shall use reasonable efforts to provide SUBLICENSOR with at least thirty (30) days’
advance notice of any official meeting with Regulatory Authority in the SUBLICENSOR Commercialization Territory regarding any
Drug Approval Application for Products and/or any such audit or inspection conducted by any Regulatory Authority at any site at
which Clinical Trials with respect to Products are being conducted and SUBLICENSOR may elect to send representatives reasonably
acceptable to ILDONG to participate as an observer in such meeting at SUBLICENSOR’ sole cost and expense.

 

5.          COMMERCIALIZATION
OF PRODUCTS

 

For the sake of clarity, in this Section
5, ILDONG means ILDONG, and where applicable, its Affiliates, Sublicensees and Distributors.

 

5.1           Commercialization
Plan. 

 

The initial Commercialization
Plan in the territory shall be prepared by ILDONG and submitted to SUBLICENSOR for its review as soon as practicable after the
submission of the NDA application in South Korea. On and after such date and continuing for the remainder of the Term, additional
Commercialization Plans and/or amendments, modifications and/or updates to the Commercialization Plan, shall be prepared by ILDONG
and submitted to SUBLICENSOR for its review within thirty (30) days of the end of each Calendar Year.

 

5.2           Responsibility
for Commercialization of Products. 

 

Subject to Section
5.11 below, ILDONG shall have the primary right and responsibility for, and shall have primary control and authority over, at
its sole cost and expense, (a) all aspects of the Commercialization of Products in the Field in the Territory including the sole
responsibility for booking sales of Product and for all returns, charge-backs and rebates with respect to Products; and (b) the
conduct of all pre-marketing, marketing, Branding, promotion, sales, distribution, import and export activities (including securing
pricing, reimbursement, sales and marketing and conducting any post-marketing trials or post-marketing safety surveillance and
maintaining databases) applicable to the Commercialization of Products in the Field and in the Territory.

 

    	26

    	 

    

 

5.3           Commercialization
Diligence.  

  

ILDONG shall use Commercially
Reasonable Efforts during the Term to Commercialize Products for all approved Indications in the Field and in the Territory. Without
limiting the foregoing, (a) commencing no later than * (*) days prior to the estimated date of First Commercial
Sale of the Product, ILDONG shall conduct pre-marketing activities in the Territory with respect to the Product and (b) following
receipt of Marketing Authorization with respect to the Product in the Territory, ILDONG shall initiate and conduct such promotional
activities determined by ILDONG as may be required to develop a commercial market for, launch and Commercialize the Product (including
through direct conduct with key opinion leaders) in the Territory. In addition, ILDONG, shall establish and maintain a well-trained
sales force for the Product, (together with a well-trained support staff) adequate to service all the customers of ILDONG and
to keep the sales force knowledgeable and fully informed as to the Product; maintain an effective distribution system for the
Product in the Territory; transport and store the Product to preserve its quality in accordance with pre-determined QA requirements;
obtain and maintain all licenses, approvals and permits in the Territory necessary for ILDONG to perform its obligations under
this Agreement; establish and maintain suitable systems and records to enable a recall of Product in a timely, efficient and accurate
manner and otherwise in accordance with applicable laws and regulations in the Territory; abide by all applicable rules and regulations
relating to sales, marketing and reimbursement; ensure that no Product shipped by ILDONG is adulterated or misbranded; maintain
adequate control over the physical security of the Product; Cause all Affiliates, sublicensees and subcontractors of ILDONG to
comply with the above.

 

5.4           Failure
to Satisfy Commercialization Diligence Obligations. 

 

SUBLICENSOR shall
have the right, in its sole discretion, to provide ILDONG with written notice if it reasonably believes ILDONG has failed to satisfy
its Commercialization diligence obligations under this Agreement (a “ILDONG Diligence Failure”). Such written
notice (a “Diligence Failure Notice”) shall set forth in reasonable detail the nature of the alleged failure
and shall request written justification, in the form of detailed reasons that would support the proposition that ILDONG has satisfied
such diligence obligations. ILDONG shall provide such written justification to SUBLICENSOR within thirty (30) days after receipt
of such Diligence Failure Notice and shall identify any Commercially Reasonable Justifications (as defined below) applicable thereto.
If ILDONG fails to provide SUBLICENSOR with a Commercially Reasonable Justification within such thirty (30) day period ILDONG
shall have an additional (90) day period to cure such failure. During that period a penalty equal to the * shall
accrue on a monthly basis, to the benefit of SUBLICENSOR. Should ILDONG’s failure continue within this additional period,
ILDONG shall continue to pay the penalty abovementioned and SUBLICENSOR reserves
the right in its discretion to, in addition
to all damages caused in relation thereof, convert the licenses and rights granted under any or all of Section 2.1 from
exclusive licenses to non-exclusive licenses only as such licenses and rights apply to such Product. Should ILDONG’s failure
continue within an additional hundred eighty (180) day period, ILDONG shall continue to pay the penalty abovementioned and SUBLICENSOR
reserves the right in its discretion to, in addition to
any other remedies it may have as a result of all damages caused in relation thereof, terminate
any or all of the licenses and rights granted under Section 2.1 hereof with respect to the Product that is the subject of the
Diligence Failure Notice termination or conversion, as the case may be, shall be at the discretion of SUBLICENSOR and be effective
immediately upon issuance by SUBLICENSOR of written notice to ILDONG specifying the remedy that SUBLICENSOR is electing to exercise
under this Section 5.4.

 

 

* Confidential
material redacted and filed separately with the Commission.

 

    	27

    	 

    

  

For purposes of this Section 5.4, “Commercially
Reasonable Justification” means the existence or occurrence of one or more of the following events or justifications:
(i) the occurrence of an event of Force Majeure; (ii) the adoption by a Regulatory Authority of any one or more regulations that
become effective after the Effective Date and that materially affect the Development or clinical testing of the Product or the
process for obtaining any Regulatory Approval, Pricing Approval, or Reimbursement Approval for the Product; and (iii) the occurrence
of any event, condition or circumstance (including an event, condition or circumstance related to the manufacture or supply of
the Product (or any material component thereof) for clinical studies or a regulatory action by any Regulatory Authority) with
respect to the Product (or any material component thereof) that (A) involves the safety, toxicity, efficacy or pharmacokinetics
of the Product or (B) prevents the use of the Product in humans (including, without limitation, as a result of patent or other
blocking rights) and, in the case of clauses (A) or (B) above, is not attributable to (1) a breach by ILDONG of any obligation
under this Agreement, (2) the failure of ILDONG to comply with any protocol, development plan or Applicable Laws with respect
to the development of the Product, or (3) any grossly negligent or willful act or omission of ILDONG; or (C) that the ILDONG Diligence
Failure is caused by ILDONG’s failure to take actions that would be in excess of Commercially Reasonable Efforts; provided,
that, in any such case, ILDONG shall use Commercially Reasonable Efforts to mitigate the effect and duration of any such acceptable
delay with respect to the Product that is the subject of the Diligence Failure Notice.

 

5.5           Failure
to achieve Sales Targets

 

5.5.1           Initial
Period. For the * following the date of First Commercial Sale (the "Initial Period") ILDONG shall
achieve the Sales Target. If ILDONG fails to achieve * percent (*%) of the Sales Target by completion
of the Initial Period, ILDONG shall, within * (*) *, pay to SUBLICENSORS a sum equal to the *.
For purposes of this Agreement, “Commercial Years” means the period commencing on the date of First Commercial Sale
of a Product and ending on the anniversary thereof and thereafter each successive period of twelve (12) months.

 

5.5.2           Subsequent
Periods. For Commercial Years subsequent to the Initial Period ILDONG shall achieve the Sales Target. If ILDONG
fails to achieve * percent (*%) of the Sales Target for any Commercial Year subject to the Initial Period,
ILDONG shall, within * pay to SUBLICENSOR a sum equal to the *.

 

 

* Confidential
material redacted and filed separately with the Commission.

  

    	28

    	 

    

 

In addition to the
above, if ILDONG fails to achieve * percent (*%) of the Sales Target for *, SUBLICENSOR shall have the right
to terminate this Agreement with respect to each country within the Territory where * were not achieved. In the case
where SUBLICENSOR exercises its rights to terminate this Agreement, SUBLICENSOR shall provide * (*) months
prior notice of termination and purchase back any Product stock held by ILDONG valued at the commercial price. If during the above
mentioned * month period, ILDONG achieves * for such six-month period, then ILDONG shall be deemed to have
cured the breach and the termination shall be null and void.

 

5.6           Compliance.

 

ILDONG shall use its
Commercially Reasonable Efforts to Commercialize the Products in compliance in all material respects with all Applicable Laws.

 

5.7           
No Unauthorized Sales.

 

ILDONG shall not,
and shall not permit its Affiliates and not permit Sublicensees or Distributors to, distribute, market, promote, offer for sale
or sell the Product to any Third Party in any country in the Territory that ILDONG, or its Affiliates, Sublicensees or Distributors,
as applicable, reasonably believes is reasonably likely to engage in an unauthorized distribution, marketing, promotion, or sale
of the Product outside the country of purchase.

 

5.8           Records;
Reports.

 

ILDONG shall (a) maintain
records of its Commercialization activities under this Article 5 in sufficient detail, which shall fully and properly reflect
all work done and results achieved in the Commercialization of Products and (b) following the commencement of Commercialization
of the Products provide SUBLICENSOR with annual written reports (each, a “Commercialization Report”) which
shall (i) summarize ILDONG’s efforts to Commercialize Products, (ii) identify the Regulatory Filings and Drug Approval Applications
with respect to such Product that ILDONG or any of its Affiliates or Sublicensees have filed, sought or obtained in the prior
twelve (12) month period or reasonably expect to make, seek or attempt to obtain in the following twelve (12) month period and
(iii) summarize all Clinical Data generated by ILDONG with respect to Products. Commencing no later than ninety (90) days from
the date of receipt by ILDONG of the first Marketing Authorization for each Product and on each anniversary thereof until the
expiration of the Royalty Term applicable to such Product, each such Commercialization Report shall also include (i) an outline
of the key sales and marketing activities that ILDONG reasonably expects to conduct with respect to Product in the Territory,
(ii) a non-binding estimate of projected sales of Product in the Territory for the subsequent three (3) Calendar Year period and
(iii) such additional information that it has in its possession as may be reasonably requested by SUBLICENSOR regarding the Commercialization
of any Product, which request shall not be made more than once each Calendar Year. The Commercialization Plan and Commercialization
Report can be provided as one document.

  

 

* Confidential
material redacted and filed separately with the Commission.

 

    	29

    	 

    

 

5.9           Supply
of Product for Commercialization. 

 

SUBLICENSOR’s
and ILDONG’s rights and responsibilities pertaining the supply of the Compound for the Commercialization shall be governed
by Section 6 below.

 

5.10         Product
Recalls.

 

In the event that
any Regulatory Authority issues or requests a recall or takes similar action in connection with a Product in the Territory, or
in the event ILDONG reasonably believes that an event, incident or circumstance has occurred that may result in the need for a
recall, market withdrawal or other corrective action regarding a Product in the Territory (each, a “Recall”),
ILDONG shall promptly advise SUBLICENSOR thereof by e-mail, telephone or facsimile. Following such notification, ILDONG shall
have the sole right to decide, and have control of, whether to conduct a recall or market withdrawal (except in the event of a
recall or market withdrawal mandated by a Regulatory Authority, in which case it shall be required) or to take other corrective
action in the Territory and the manner in which any such recall, market withdrawal or corrective action shall be conducted; provided,
that, ILDONG shall keep SUBLICENSOR reasonably informed regarding any such Recall. All expenses incurred by ILDONG in connection
with any such Recall (including, without limitation, expenses for notification, destruction and return of the affected Product
and any refund to customers of amounts paid for such Product) shall be the sole responsibility of ILDONG.

 

6.          SUPPLY
OF THE COMPOUND AND/OR PRODUCT 

 

6.1           Supply
of LFB-R603 for Development and Commercialization.

 

SUBLICENSOR
shall use its Commercially Reasonable Effort to provide supply of LFB-R603 as required for the Development and Commercialization
of LFB-R603 when and as required by ILDONG for the Development of Products in the Territory. All supplies of Compound and Product
for Clinical Trials supplied by SUBLICENSOR shall be billed to ILDONG at a cost equal to *.

 

For sake of clarity, SUBLICENSOR and its affiliates
shall have the exclusive right and responsibility to provide supply of LFB-R603 as required for Development and Commercialization
in the Territory.

 

 

* Confidential
material redacted and filed separately with the Commission.

 

    	30

    	 

    

 

6.2           Supply
of TG20 for Development and Commercialization.

 

Provided that
TG20 has satisfactorily completed non-clinical development, as defined by the acceptance of an IND by the US FDA, SUBLICENSOR
shall use its Commercially Reasonable Effort to provide supply of TG20 as required for the Development and Commercialization of
TG20 when and as required by ILDONG for the Development and Commercialization of Products in the Territory. All supplies of Compound
and Product for Clinical Trials supplied by SUBLICENSOR shall be billed to ILDONG at a cost equal to *.

 

For sake of
clarity, SUBLICENSOR and its affiliates shall have the exclusive right and responsibility to provide supply of TG20 as required
for Development and Commercialization in the Territory. Nothing in this section shall be construed as an obligation on the part
of SUBLICENSOR to continue the development of TG20.

 

Upon the approval
of the first Drug Approval Application by ILDONG within any country within the Territory and the subsequent determination of the
National Health Insurance (“NHI”) price, the parties will enter into a Commercial Supply Agreement which shall be
attached in Exhibit B as soon as it is executed by the Parties and which shall include such customary terms of such agreements
and shall include the payment by ILDONG to SUBLICENSOR at a transfer price not to exceed *% of the NHI price obtained
by the relevant health authority including margin for Cost of Goods manufactured, such that such supply price is not below *.
In the event that commercial supply price to ILDONG exceeds *% of the NHI price, the Parties agree to renegotiate the
Sales Royalty Rates outlined in Section 7.3 in good faith. For the sake of clarity, in no way shall SUBLICENSOR provide commercial
supply to ILDONG at a price that is below *.

 

7.          PAYMENTS

 

7.1           Upfront
Payment. 

 

In consideration for
the rights granted to ILDONG hereunder, ILDONG hereby agrees to pay to SUBLICENSOR a non-refundable, non-creditable license fee
of two million dollars (USD $2,000,000) within thirty (30) calendar days after the Effective Date.

 

7.2           Sales
Milestones.

 

7.2.1           Sales
Milestones. ILDONG shall make the following non-refundable, non-creditable milestone payments to SUBLICENSOR upon
the occurrence of each of the following milestone events for the first Product that achieves the corresponding Net Sales milestone
for the first time in the combined territory of South Korea and Taiwan:

 

 

* Confidential
material redacted and filed separately with the Commission.

 

    	31

    	 

    

 

	Milestone
    Event	 	Milestone 
Payment	 
	1.          On
    achieving annual Net Sales of USD $*	 	$	*	 
	2.          On
    achieving annual Net Sales of USD $*	 	$	*	 
	3.          On
    achieving annual Net Sales of USD $*	 	$	*	 
	4.          On
    achieving annual Net Sales of USD $*	 	$	*	 

 

7.2.2           Notice
and Payment of Milestones.

 

(a)          Notice
of Milestone Events. ILDONG shall provide SUBLICENSOR with prompt written notice upon the occurrence of each milestone
event set forth in Section 7.2.1. In the event that, notwithstanding the fact that ILDONG has not given such a notice, SUBLICENSOR
believes any such milestone event has occurred, it shall so notify ILDONG in writing and shall provide to ILDONG data, documentation
or other information that supports its belief.  Any dispute under this Section 7.2.2(a) that relates to whether or not a
milestone event has occurred shall be resolved in accordance with Section 14.1.

 

(b)          Single
Milestone Payments. ILDONG shall make a milestone payment corresponding to each of the foregoing milestone events only
once under Section 7.2.1, regardless of (i) the number of Products that achieve such milestone event and (ii) the number of times
such milestone event occurs with respect to a Product. For the sake of clarity, each milestone event shall only trigger one milestone
payment.

 

7.3           Payment
of Royalties; Royalty Rates; Accounting and Records.

 

7.3.1           Payment
of Royalties.  Subject to the remainder of this Section 7.3, ILDONG shall pay SUBLICENSOR a non-refundable,
non-creditable royalty on Annual Net Sales of the Product. The rate of such royalty being determined by the amount of Annual Net
Sales as described below:

 

	Annual Net Sales	 	Royalty Rate	 
	Up to $* USD	 	 	*	%
	Between $* and $* USD	 	 	*	%
	Between $* and $* USD	 	 	*	%
	Exceeding $* USD	 	 	*	%

 

 

 *
Confidential material redacted and filed separately with the Commission.

 

    	32

    	 

    

  

The royalty rate shall
be applied to Annual Net Sales of each Product in each Calendar Year (or partial Calendar Year) commencing with the First Commercial
Sale of such Product in any country in the Territory and ending upon the last day of the last Royalty Term for such Product in
such country. For purposes of clarity, Annual Net Sales shall be determined separately for each separate Product that is sold
in a given Calendar Year.

 

7.3.2           Adjustments
to Royalties for Generic Products. In the event that a Third Party sells a Generic Product (as defined below) in a country
in which a Product is then being sold and such Generic Product is not covered by a Valid Claim under the Licensed Patent Rights
or ILDONG Program Patent Rights in such country, then during the period in which sales of the Generic Product by such Third Party
are equal to at least * percent (*%) of
ILDONG’s volume-based market share of the Product in such country (as measured by prescriptions or other similar information
available in such country), the royalty rate applicable to Net Sales of the Product in such country shall be reduced to *
percent (*%).  Notwithstanding the foregoing, ILDONG’s right to reduce its royalty obligation under
this Section 7.3.3(1) shall expire on the first day of the Calendar Quarter immediately following the Calendar Quarter in which
sales of such Generic Product account for less than * percent (*%) of ILDONG’s volume-based market
share of the Product in such country (as measured by prescriptions or other similar information available in such country). For
purposes of this Section 7.3.3), a “Generic Product” means a biosimilar product with the same amino acid
sequence as the Compound.

 

7.3.3           Payment
Dates and Reports. Royalty Payments. Royalty payments shall be made by ILDONG with respect to each Product within
thirty (30) calendar days after the end of each Calendar Quarter in which sales of such Product occur, commencing with the Calendar
Quarter in which the First Commercial Sale of such Product occurs. ILDONG shall also provide, at the same time each such payment
is made, a report showing: (a) the Net Sales of each Product by type of Product and country in the Territory and, if applicable,
by Combination Product; (b) the total amount of deductions from gross sales to determine Net Sales; (c) the applicable royalty
rate for Product in each country in the Territory after applying any reductions set forth above; and (d) a calculation of the
amount of royalty due to SUBLICENSOR.

 

7.3.4           Records;
Audit Rights. ILDONG and its Affiliates, Sublicensees and Distributors shall keep and maintain for three (3) years
from the date of each payment of royalties hereunder complete and accurate records of gross sales and Net Sales by ILDONG and
its Affiliates, Sublicensees and Distributors of each Product, in sufficient detail to allow royalties to be accurately determined.
SUBLICENSOR shall have the right for a period of three (3) years after receiving any such royalty payment to appoint at its expense
an independent certified public accountant reasonably acceptable to ILDONG to audit the relevant records of ILDONG and
its Affiliates, Sublicensees and Distributors to verify that the amount of each such payment was correctly determined; provided,
that, (a) if requested by ILDONG, SUBLICENSOR shall cause the independent certified public accountant to enter into a confidentiality
agreement reasonably acceptable to ILDONG and (b) such independent certified public accountant may only disclose to SUBLICENSOR
whether the royalties paid are correct and the details with respect to any discrepancies. ILDONG and its Affiliates, Sublicensees
and Distributors shall each make its records available for audit by such independent certified public accountant during regular
business hours at such place or places where such records are customarily kept, upon thirty (30) days written notice from SUBLICENSOR.
Such audit right shall not be exercised by SUBLICENSOR more than once in any Calendar Year or more than once with respect to sales
of a particular Product in a particular period. All records made available for audit shall be deemed to be Confidential Information
of ILDONG. The results of each audit, if any, shall be binding on both Parties absent manifest error. In the event there was an
underpayment of royalties by ILDONG hereunder, ILDONG shall promptly (but in any event no later than thirty (30)
days after ILDONG’s receipt of the report so concluding) make payment to SUBLICENSOR of any shortfall. SUBLICENSOR shall
bear the full cost of such audit unless such audit discloses an underpayment by ILDONG of * percent (*%) or more of
the aggregate amount of royalties payable in any Calendar Year, in which case ILDONG shall reimburse SUBLICENSOR
for all costs incurred by SUBLICENSOR in connection with such audit.

 

 

* Confidential
material redacted and filed separately with the Commission.

    	33

    	 

    

  

7.3.5           Overdue
Payments. All royalty payments not made within the time period set forth in Section 7.3.5, and all milestone payments
not made within the time period specified in Section 7.2.1, shall bear interest at the rate of * percent (*%)
per month until paid in full or, if less, the maximum interest rate permitted by Applicable Laws. Any such overdue royalty
or milestone payment shall, when made, be accompanied by, and credited first to, all interest so accrued.

 

7.3.6           Payments;
Withholding Tax; Currency Restrictions.

 

(a)          Payments
in United States Dollars. Except as set forth in Section 6.3.7(b) below, all payments made by ILDONG under this Article
6 shall be made by wire transfer in United States Dollars in accordance with wire transfer instructions provided to ILDONG in
writing from time to time by SUBLICENSOR. If in any Calendar Quarter, Net Sales are made in any currency other than United States
Dollars, such Net Sales shall be converted into United States Dollars as follows:

 

(A/B), where

 

A = foreign “Net Sales”
(as defined above) in such Calendar Quarter expressed in such foreign currency; and

 

B = foreign exchange conversion
rate, expressed in local currency of the foreign country per United States Dollar (using, as the applicable foreign exchange rate,
the spot purchase rate published in the Financial Times on the last Business Day of each Calendar Quarter in which any
payment is due and payable or any other mutually agreed upon source, for such Calendar Quarter).

 

(b)          Tax
Withholding. If Applicable Laws require withholding of income or other taxes imposed upon any payments made by ILDONG to SUBLICENSOR
under this Agreement, ILDONG shall (i) make such withholding payments as may be required, (ii) subtract such withholding payments
from such payments to be made to SUBLICENSOR, (iii) submit appropriate proof of payment of the withholding taxes to SUBLICENSOR
within a reasonable period of time, and (iv) promptly provide SUBLICENSOR with all official receipts with respect thereto.

 

 

* Confidential
material redacted and filed separately with the Commission.

 

    	34

    	 

    

  

(c)          Currency
Restrictions. If any restrictions on the transfer of currency exist in any country in which Products are sold that prevent
ILDONG from making royalty payments thereon in United States Dollars, ILDONG shall make royalty payments on the sales in such
country in the local currency by deposit in a local bank or other depository designated in writing by SUBLICENSOR (or, in the
absence of such designation, at a local bank or other depository selected by ILDONG and identified by ILDONG by written notice
to SUBLICENSOR).

 

8.          TREATMENT
OF CONFIDENTIAL INFORMATION; PUBLICITY

 

8.1           Confidentiality.

 

8.1.1           Confidentiality
Obligations. SUBLICENSOR and ILDONG each recognize that the other Party’s Confidential Information and Proprietary
Materials constitute highly valuable assets of such other Party. SUBLICENSOR and ILDONG each agrees that, (a) subject to Section
8.1.2, during the Term and for an additional ten (10) years after termination or expiration of this Agreement it will not disclose,
and will cause its Affiliates, Sublicensees (with respect to ILDONG) and Distributors or Sublicensees (with respect to SUBLICENSOR)
not to disclose whether directly or indirectly, in any manner whatsoever, any Confidential Information or Proprietary Materials
of the other Party and (b) it will not use, and will cause its Affiliates, Sublicensees (with respect to ILDONG) and Distributors
or Sublicensees (with respect to SUBLICENSOR) not to use, any Confidential Information or Proprietary Materials of the other Party,
without the prior written consent of the Disclosing Party, except as expressly permitted hereunder.

 

8.1.2           Limited
Disclosure. SUBLICENSOR and ILDONG each agrees that disclosure of its Confidential Information or any transfer of its
Proprietary Materials may be made by the other Party on a need-to-know basis to any employee, consultant or Affiliate of such
other Party or, to the extent the other Party is ILDONG, to any Third Party subcontractor engaged by ILDONG pursuant to Section
2.2, in each case solely to the extent reasonably necessary to enable such other Party to exercise its rights or to carry out
its responsibilities under this Agreement; provided, that, any such disclosure or transfer shall only be made to Persons who are
bound by written obligations comparable in scope to the obligations described in Section 8.1.3. SUBLICENSOR and ILDONG each further
agrees that the other Party may disclose its Confidential Information (a) on a need-to-know basis to such other Party’s
legal and financial advisors, (b) as reasonably necessary in connection with an actual or potential (i) permitted sublicense of
such Party’s rights hereunder, (ii) debt or equity financing of such other Party or (iii) acquisition, consolidation, share
exchange or other similar transaction involving such Party and any Third Party, (c) to the extent the other Party is ILDONG, to
any Third Party that is or may be engaged by ILDONG to perform services in connection with the Commercialization of Products as
necessary to enable such Third Party to perform such services, (d) as reasonably necessary to make Regulatory Filings with respect
to Products under this Agreement or to respond to any inquiry made by any Regulatory Authority with respect to Products and to
prosecute or maintain Patent Rights, or to file, prosecute or defend litigation related to Patent Rights, in accordance with this
Agreement; (e) as required by Applicable Laws (which shall be determined by the Disclosing Party in its reasonable discretion);
provided, that, in the case of any disclosure under this clause (e), the Disclosing Party shall (i) if practicable, provide the
other Party with reasonable advance notice of and an opportunity to comment on any such required disclosure and (ii) if requested
by the other Party, cooperate in all reasonable respects with the other Party’s efforts to obtain confidential treatment
or a protective order with respect to any such disclosure, at the other Party’s expense.

 

    	35

    	 

    

  

8.1.3           Employees
and Consultants. SUBLICENSOR and ILDONG each hereby covenants and agrees that all of its employees and consultants, and
all of the employees and consultants of its Affiliates, who have access to Confidential Information or Proprietary Materials of
the other Party will, prior to having such access, be bound by written obligations to maintain such Confidential Information or
Proprietary Materials in confidence that are no less stringent than those confidentiality and non-use provisions contained in
this Agreement. Each Party agrees to use, and to cause its Affiliates to use, reasonable efforts to enforce such obligations and
to prohibit its employees and consultants from using such information except as expressly permitted hereunder. Each Party will
be liable to the other Party for any disclosure or misuse by its employees of Confidential Information or Proprietary Materials
of the other Party.

 

8.2           Publicity.

 

Notwithstanding anything
to the contrary in Section 8.1, the Parties, upon the execution of this Agreement, shall jointly issue a press release
with respect to this Agreement to be reasonably agreed by the Parties in substantially the form attached hereto as Schedule
6, and either Party may make subsequent public disclosure of the contents of such press release without further approval of
the other Party. Subject to the foregoing, except as required by Applicable Laws (including those relating to disclosure of material
information to investors), neither Party shall issue a press or news release or make any similar public announcement (it being
understood that publication in scientific journals, presentation at scientific conferences and meetings and the like are intended
to be covered by Section 8.4 and not subject to this Section 8.2) related to the terms or existence of this Agreement or the conduct
of the Development Program or the Commercialization of Products without the prior written consent of the other Party; provided,
however, that either Party may make such a disclosure (a) to the extent required by Applicable Laws (including the requirements
of any nationally recognized securities exchange, quotation system or over-the-counter market on which such Party has its securities
listed or traded), or (b) to any investors, prospective investors, lenders and other potential financing sources who are obligated
to keep such information confidential. In the event that such disclosure is required as aforesaid, the disclosing Party shall
make reasonable efforts to provide the other Party with notice beforehand and to coordinate with the other Party with respect
to the wording and timing of any such disclosure. Once any press release or any other written statement is approved for disclosure
by both Parties, either Party may make subsequent public disclosure of the contents of such statement without the further approval
of the other Party.

 

    	36

    	 

    

 

8.3           No
Use of Name.

 

Neither Party shall
use the name of the other Party in any Promotional Materials or advertising without the prior express written permission
of the other Party.

 

9.          INTELLECTUAL
PROPERTY RIGHTS

 

For sake of clarity, in this Section 9,
SUBLICENSOR means SUBLICENSOR and, where applicable, Senior Licensors pursuant to the terms of the LFB/GTC License, certain responsibilities
of which may be delegated to Senior Licensors, but for the sake of this Agreement will be overseen by SUBLICENSOR.

 

		9.1	SUBLICENSOR
                                                                                                                                                        Intellectual
                                                                                                                                                        Property
                                                                                                                                                        Rights.

 

SUBLICENSOR shall
have ownership of all right, title and interest, or license to, on a worldwide basis in and to any and all Licensed Technology
and Licensed Patent Rights.

 

		9.2	Improvement

 

		9.2.1	ILDONG
                                                                                                                                         agrees
                                                                                                                                         to
                                                                                                                                         notify
                                                                                                                                         SUBLICENSOR
                                                                                                                                         of
                                                                                                                                         each
                                                                                                                                         Product
                                                                                                                                         Improvement
                                                                                                                                         ILDONG,
                                                                                                                                         its
                                                                                                                                         Affiliates,
                                                                                                                                         or
                                                                                                                                         its
                                                                                                                                         Sublicensees
                                                                                                                                         has
                                                                                                                                         developed,
                                                                                                                                         conceived
                                                                                                                                         or
                                                                                                                                         acquired
                                                                                                                                         during
                                                                                                                                         the
                                                                                                                                         Term
                                                                                                                                         of
                                                                                                                                         this
                                                                                                                                         Agreement.
                                                                                                                                         ILDONG
                                                                                                                                         shall,
                                                                                                                                         upon
                                                                                                                                         request
                                                                                                                                         of
                                                                                                                                         SUBLICENSOR,
                                                                                                                                         provide
                                                                                                                                         to
                                                                                                                                         SUBLICENSOR
                                                                                                                                         all
                                                                                                                                         data
                                                                                                                                         and
                                                                                                                                         specifications
                                                                                                                                         concerning
                                                                                                                                         such
                                                                                                                                         Product
                                                                                                                                         Improvement.
                                                                                                                                         All
                                                                                                                                         Product
                                                                                                                                         Improvements
                                                                                                                                         shall
                                                                                                                                         be
                                                                                                                                         deemed
                                                                                                                                         to
                                                                                                                                         be
                                                                                                                                         considered
                                                                                                                                         as
                                                                                                                                         a
                                                                                                                                         “Joint
                                                                                                                                         Improvement”.

 

		9.2.2	All
                                                                                                                                         SUBLICENSOR
                                                                                                                                         Improvement
                                                                                                                                         shall
                                                                                                                                         be
                                                                                                                                         the
                                                                                                                                         exclusive
                                                                                                                                         and
                                                                                                                                         sole
                                                                                                                                         property
                                                                                                                                         of
                                                                                                                                         SUBLICENSOR
                                                                                                                                         and
                                                                                                                                         shall
                                                                                                                                         become
                                                                                                                                         Background
                                                                                                                                         Patent
                                                                                                                                         Right
                                                                                                                                         or
                                                                                                                                         Licensed
                                                                                                                                         Patent
                                                                                                                                         Rights,
                                                                                                                                         as
                                                                                                                                         the
                                                                                                                                         case
                                                                                                                                         may
                                                                                                                                         be.

 

		9.3	Joint
                                                                                                                                                        Improvement

 

		9.3.1	Subject
                                                                                                                                         to
                                                                                                                                         any
                                                                                                                                         other
                                                                                                                                         provision
                                                                                                                                         to
                                                                                                                                         the
                                                                                                                                         contrary
                                                                                                                                         that
                                                                                                                                         may
                                                                                                                                         be
                                                                                                                                         contained
                                                                                                                                         in
                                                                                                                                         SUBLICENSOR’s
                                                                                                                                         Licenses
                                                                                                                                         as
                                                                                                                                         defined
                                                                                                                                         in
                                                                                                                                         Section
                                                                                                                                         2.1.1,
                                                                                                                                         any
                                                                                                                                         Joint
                                                                                                                                         Improvement
                                                                                                                                         shall
                                                                                                                                         be
                                                                                                                                         jointly
                                                                                                                                         owned
                                                                                                                                         by
                                                                                                                                         ILDONG
                                                                                                                                         and
                                                                                                                                         SUBLICENSOR.

 

		9.3.2	ILDONG
                                                                                                                                         shall
                                                                                                                                         have
                                                                                                                                         the
                                                                                                                                         exclusive,
                                                                                                                                         fully
                                                                                                                                         paid-up,
                                                                                                                                         irrevocable,
                                                                                                                                         transferable
                                                                                                                                         right
                                                                                                                                         to
                                                                                                                                         Use
                                                                                                                                         such
                                                                                                                                         Joint
                                                                                                                                         Improvements
                                                                                                                                         in
                                                                                                                                         order
                                                                                                                                         to
                                                                                                                                         Develop
                                                                                                                                         the
                                                                                                                                         Compounds
                                                                                                                                         or
                                                                                                                                         Products
                                                                                                                                         as
                                                                                                                                         part
                                                                                                                                         of
                                                                                                                                         the
                                                                                                                                         Development
                                                                                                                                         Program
                                                                                                                                         and
                                                                                                                                         to
                                                                                                                                         Commercialize,
                                                                                                                                         use,
                                                                                                                                         have
                                                                                                                                         used,
                                                                                                                                         Manufacture,
                                                                                                                                         have
                                                                                                                                         Manufactured,
                                                                                                                                         supply,
                                                                                                                                         sell,
                                                                                                                                         offer
                                                                                                                                         to
                                                                                                                                         sell,
                                                                                                                                         import,
                                                                                                                                         have
                                                                                                                                         imported,
                                                                                                                                         market,
                                                                                                                                         and
                                                                                                                                         otherwise
                                                                                                                                         Commercialize
                                                                                                                                         Products
                                                                                                                                         in
                                                                                                                                         the
                                                                                                                                         Field,
                                                                                                                                         within
                                                                                                                                         the
                                                                                                                                         Territory
                                                                                                                                         with
                                                                                                                                         the
                                                                                                                                         right
                                                                                                                                         to
                                                                                                                                         sublicense.

 

    	37

    	 

    

 

 

		9.3.3	Each
                                                                                                                                         Party
                                                                                                                                         has
                                                                                                                                         the
                                                                                                                                         exclusive,
                                                                                                                                         fully
                                                                                                                                         paid-up,
                                                                                                                                         irrevocable,
                                                                                                                                         transferable
                                                                                                                                         right
                                                                                                                                         to
                                                                                                                                         Use
                                                                                                                                         such
                                                                                                                                         Joint
                                                                                                                                         Improvements
                                                                                                                                         in
                                                                                                                                         order
                                                                                                                                         to
                                                                                                                                         develop
                                                                                                                                         and
                                                                                                                                         to
                                                                                                                                         commercialize
                                                                                                                                         have
                                                                                                                                         used,
                                                                                                                                         Manufacture,
                                                                                                                                         have
                                                                                                                                         Manufactured,
                                                                                                                                         supply,
                                                                                                                                         sell,
                                                                                                                                         offer
                                                                                                                                         to
                                                                                                                                         sell,
                                                                                                                                         import,
                                                                                                                                         have
                                                                                                                                         imported,
                                                                                                                                         market,
                                                                                                                                         any
                                                                                                                                         product
                                                                                                                                         other
                                                                                                                                         than
                                                                                                                                         the
                                                                                                                                         Product
                                                                                                                                         and
                                                                                                                                         Compound.

 

		9.3.4	Each
                                                                                                                                         Party
                                                                                                                                         shall
                                                                                                                                         reasonably
                                                                                                                                         assist
                                                                                                                                         the
                                                                                                                                         other
                                                                                                                                         in
                                                                                                                                         preparing,
                                                                                                                                         prosecuting
                                                                                                                                         and
                                                                                                                                         maintaining
                                                                                                                                         Patent
                                                                                                                                         Rights
                                                                                                                                         for
                                                                                                                                         Joint
                                                                                                                                         Improvements
                                                                                                                                         pursuant
                                                                                                                                         to
                                                                                                                                         section
                                                                                                                                         9.4;
                                                                                                                                         9.5
                                                                                                                                         and
                                                                                                                                         10.

 

9.4           Patent
Coordinators.

 

Each Party shall,
by written notice to the other Party, appoint a patent coordinator reasonably acceptable to the other Party (each, a “Patent
Coordinator”) to serve as such Party’s primary liaison with the other Party on matters relating to the filing, prosecution,
maintenance and enforcement of Patent Rights. Each Party may replace its Patent Coordinator at any time by notice in writing to
the other Party. The initial Patent Coordinators shall be:

 

For SUBLICENSOR:Hari
Miskin

 

For ILDONG:

 

9.5           Notice;
Inventorship.

 

The Parties hereby
agree to promptly notify to the other Party, through the Patent Coordinators, of the conception or reduction to practice of any
Program Technology or Joint-Improvement and to promptly execute any documents that may be necessary to perfect SUBLICENSOR’s
rights in and to such Program Technology or Joint-Improvement. The Patent Coordinators shall determine inventorship of Program
Technology or Joint-Improvement under U.S. patent law. In case of a dispute between the Patent Coordinators over inventorship
and, as a result, whether any particular Technology is SUBLICENSOR Technology or Joint Improvement, such dispute shall be resolved
according to U.S. patent law by patent counsel selected by the Patent Coordinators who (and whose firm) is not at the time of
the dispute, and was not at any time during the five (5) years prior to such dispute, performing services for either of the Parties.
Expenses of such patent counsel shall be shared equally by the Parties.

 

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10.         FILING,
PROSECUTION AND MAINTENANCE OF PATENT RIGHTS

 

10.1         Patent
Filing, Prosecution and Maintenance. 

 

10.1.1           SUBLICENSOR
Prosecution Rights.  SUBLICENSOR shall have the sole right and responsibility to prepare and file applications
with respect to, and prosecute and maintain, at its sole discretion, and using patent counsel or agents of its choice, all Licensed
Patent Rights (including all Joint Patent Rights that are Licensed Patent Rights) throughout the Territory. ILDONG shall cooperate
with and assist SUBLICENSOR in all reasonable respects, in connection with SUBLICENSOR’s preparation, filing, prosecution
and maintenance of Licensed Patent Rights.

 

10.1.2           ILDONG
Prosecution Rights. ILDONG shall have the sole right and responsibility to prepare and file applications with respect
to, and prosecute and maintain, at its sole cost, expense and discretion, and using patent counsel or agents of its choice, all
ILDONG Program Patent Rights throughout the Territory. SUBLICENSOR shall cooperate with and assist ILDONG in all reasonable respects,
in connection with ILDONG’s preparation, filing, prosecution and maintenance of ILDONG Program Patent Rights.

 

10.1.3           Joint
Patent Rights.  Subject to Section 10.1.1, within ten (10) Business Days after it is determined pursuant to Section 9.5
that any particular Program Technology is Joint Improvement, the Parties will determine which Party will undertake the prosecution
of such Joint Patent Rights based on the respective expertise of the Parties and the rights of the Parties under this Agreement.
If the Parties fail to agree within such ten (10) Business Day period, then prosecution of such Patent Rights shall be jointly
controlled by the Parties, using patent counsel agreed upon by the Patent Coordinators. All patent costs and expenses incurred
by a Party or jointly by the Parties in connection with the preparation, filing, prosecution and maintenance of Joint Patent Rights
in the Territory that cover any Product for use in the Field shall be shared equally by the Parties. Provided however that, if
a Party refuses, declines or fails to assume its obligations under this section 11.1.2, it shall advise the other Party and said
other Party shall have the right, at its own expense, to prepare, prosecute and maintain Patent Rights for Joint Improvements.
In such a case, upon request of the non-defaulting Party, the Party that refuses, declines or fails to file, prosecute or maintain
any such Patent Rights for Joint Improvements shall assign all its co-ownership rights to the other Party.

 

10.1.4           Information
and Cooperation. The Parties hereby agree to cooperate with each other in connection with the filing, prosecution and
maintenance of Patent Rights under this Agreement, including through the prompt execution and delivery of documents and instruments
as may reasonably be required in connection therewith. Without limiting the foregoing, each Party responsible for the filing,
prosecution and/or maintenance of Patent Rights under Sections 10.1.1 and/or 10.1.2 above (a “Filing Party”)
shall (a) promptly provide the other Party with copies of all patent applications filed hereunder and other material submissions
and correspondence with applicable patent offices, in sufficient time to allow for review and comment by the other Party; (b)
provide the other Party and its patent counsel with an opportunity to consult with the Party and its patent counsel regarding
the filing and contents of any such application, amendment, submission or response; and (c) take into consideration in good faith
the advice and suggestions of the other Party and its patent counsel in connection with such filing.

 

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10.1.5           Interference,
Opposition, Reexamination and Reissue.

 

(a)          Notice.
Not more than thirty (30) days following the discovery by either Party of any request for, or the filing or declaration of, any
interference, opposition, or reexamination proceeding with respect to any Licensed Patent Rights in the Territory, the discovering
or determining Party shall notify the other Party of such event.

 

(b)          Primary
Responsibility and Cooperation. SUBLICENSOR shall have primary responsibility, at its own expense, with respect to the course
of action taken to defend or prosecute any such interference, opposition, reexamination or reissue, except that the Parties shall
share equally the reasonable fees and expenses incurred under this Section 10.1.4(b) with respect to Joint Patent Rights. The
Parties shall cooperate fully with each other and each shall provide to the other any information or assistance that the other
may reasonably request with respect to any course of action taken under this Section 10.1.4. SUBLICENSOR shall (a) keep ILDONG
reasonably informed of all developments in such interference, opposition, reexamination or reissue in the Territory, including
to the extent permissible, the status of any settlement negotiations and the terms of any offer related thereto and (b) provide
to ILDONG copies of all submissions or agreements arising in connection with such proceeding sufficiently in advance of their
filing or due date so as to give ILDONG sufficient time to comment thereon, and SUBLICENSOR shall give good faith consideration
to ILDONG’s comments, with due regard to the other Party’s rights and commercial interests under this Agreement. Neither
Party shall enter into any settlement or consent decree regarding Joint Patent Rights, or assent to the grant of any reissued
or reexamined patent within the Joint Patent Rights, without the prior written consent of the other Party, which shall not be
unreasonably withheld or delayed.

 

10.1.6           Decision
Not to File; Abandonment. SUBLICENSOR shall notify ILDONG in the event SUBLICENSOR decides at any time to abandon or discontinue
prosecution of any one or more of the patents or patent applications included in the Licensed Patent Rights and in the Territory.
Such notification will be given as early as possible which in no event will be less than fifteen (15) days prior to the date on
which said patent(s) or patent application(s) will become abandoned. ILDONG shall have the option, exercisable upon written notification
to SUBLICENSOR, to assume full responsibility, at its discretion for the prosecution of the affected patent(s) or patent application(s),
which shall be conducted in the name of ILDONG. 

 

10.2         Enforcement
and Defense.

 

10.2.1           Third
Party Infringement.

 

(a)          In
General.

 

(i)          Notice.
In the event either Party becomes aware of (i) any suspected infringement or misappropriation of any Licensed Patent Rights, Joint
Patent Rights that covers the development or commercialization of a Compound or Product in the Field in the Territory, or (ii)
the submission by any Third Party of an abbreviated NDA under the Hatch-Waxman Act for a product in the Field that comprises the
Compound (each, an “Infringement”), that Party shall promptly notify the other Party and provide it with all
details of such Infringement of which it is aware (each, an “Infringement Notice”). The Patent Coordinators
shall promptly meet to discuss the Infringement and the strategy for patent enforcement with respect to such Infringement.

 

    	40

    	 

    

 

 

(ii)         SUBLICENSOR
Right to Enforce.  SUBLICENSOR shall have the first right, but not the obligation, to address any such Infringement
in the Territory by taking reasonable steps, which may include the institution of legal proceedings or other actions (each, an
“Action”), and to compromise or settle such Action; provided, that, (A) SUBLICENSOR shall keep ILDONG reasonably
informed about such Action, (B) ILDONG shall provide reasonable cooperation to SUBLICENSOR in connection with such Action, (C)
SUBLICENSOR shall not take any position with respect to, or compromise or settle, such Action in any way that would be reasonably
likely to directly and adversely affect the scope, validity or enforceability of the Licensed Patent Rights without the prior
consent of ILDONG, which consent shall not be unreasonably withheld, and (D) if SUBLICENSOR does not intend to prosecute or defend
an Infringement, or determines to cease to pursue such an Action, it shall promptly inform ILDONG and Section 10.2.1(a)(iii) shall
apply. SUBLICENSOR shall incur no liability to ILDONG as a consequence of such Action or any unfavorable decision
resulting therefrom, including any decision holding any such claim invalid, not infringed or unenforceable.  All costs,
including, without limitation, attorneys’ fees, relating to such legal proceedings or other action shall be borne by SUBLICENSOR.

 

(iii)        ILDONG
Right to Enforce. If (A) SUBLICENSOR informs ILDONG that SUBLICENSOR does not intend to prosecute an Action in respect of
any Licensed Patent Rights or Joint Patent Rights pursuant to Section 10.2.1(a)(ii), (B) within sixty (60) days after the Infringement
Notice, SUBLICENSOR has not commenced any Action, or (C) if SUBLICENSOR determine to cease to pursue any such Action with respect
to such Infringement, then ILDONG shall have the right, at its own expense, upon notice to SUBLICENSOR to take appropriate action
to address such Infringement, including by initiating its own Action or taking over prosecution of any Action initiated by SUBLICENSOR;
provided, that, in such event, (1) ILDONG shall keep SUBLICENSOR reasonably informed about such Action and shall consult with
SUBLICENSOR before taking any major steps during the conduct of such Action, (2) SUBLICENSOR shall provide reasonable cooperation
to ILDONG in connection with such Action, and (3) ILDONG shall not take any position with respect to, or compromise or settle,
such Action in any way that is reasonably likely to directly and adversely affect the scope, validity or enforceability of the
Licensed Patent Rights without SUBLICENSOR’S prior written consent, which consent shall not be unreasonably withheld. SUBLICENSOR
shall incur no liability to ILDONG as a consequence of such Action or any unfavorable decision resulting therefrom, including
any decision holding any such claim invalid, not infringed or unenforceable. All costs, including, without limitation, attorneys’
fees, relating to such legal proceedings or other action shall be borne by ILDONG.

 

    	41

    	 

    

 

 

(iv)        Joint
Patent Rights. In the event of an Infringement of a Joint Patent Right, the Parties shall enter into good faith discussions
as to whether and how to eliminate the Infringement. Subject to the foregoing, (A) ILDONG shall have the first right and option
to eliminate such Infringement by reasonable steps, which may include the institution of legal proceedings or other action and
(B) all costs, including without limitation attorneys’ fees, relating to such legal proceedings or other action shall be
borne by ILDONG. If ILDONG does not take or initiate commercially reasonable steps to eliminate the Infringement within one hundred
twenty (120) days from any Infringement Notice, then SUBLICENSOR shall have the right an option to do so at its expense.

 

(b)          Right
to Representation. Each Party shall have the right to participate and be represented by counsel that it selects, in any Action
instituted under Section 10.2.1(a)(ii), (iii) or (iv) by the other Party. If a Party with the right to initiate an Action under
Section 10.2.1(a) to eliminate an Infringement lacks standing to do so and the other Party has standing to initiate such Action,
then the Party with the right to initiate an Action under Section 10.2.1(a) may name the other Party as plaintiff in such Action
or may require the Party with standing to initiate such Action at the expense of the other Party.

 

(c)          Cooperation.
In any Action instituted under this Section 10.2.1, the Parties shall cooperate with and assist each other in all reasonable respects.
Upon the reasonable request of the Party instituting such Action, the other Party shall join such Action and shall be represented
using counsel of its own choice, at the requesting Party’s expense.

 

(d)          Allocation
of Proceeds. Any amounts recovered by either Party pursuant to Actions under Sections 10.2.1(a)(ii), (iii) or (iv) with respect
to any Infringement, whether by settlement or judgment, shall, after reimbursing ILDONG and SUBLICENSOR for their respective reasonable
out-of-pocket expenses incurred in pursuing such Action and obtaining such recovery (which amounts shall be allocated pro rata
if insufficient to cover the totality of such expenses) be retained by or paid to ILDONG and treated as Net Sales of the Product
affected by the Infringement and for purposes of this Agreement, such that ILDONG shall pay to SUBLICENSOR the applicable royalty
due on such Net Sales pursuant to Section 7.3.1.

 

10.2.2      Defense
of Claims.

 

(a)          Notice.
In the event that any action, suit or proceeding is brought against either Party or any Affiliate of either Party or any Sublicensee
or Distributor of ILDONG alleging the infringement of the Technology or Patent Rights of a Third Party by reason of or the Development
or Commercialization, including the Manufacture, use or sale, of any Compound or Product, by or on behalf of ILDONG, its Affiliates,
Sublicensees or Distributors, such Party shall notify the other Party within five (5) days of the earlier of (i) receipt of service
of process in such action, suit or proceeding, or (ii) the date such Party becomes aware that such action, suit or proceeding
has been instituted and the Patent Coordinators shall meet as soon as possible to discuss the overall strategy for defense of
such matter.

 

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(b)          Prosecution
of Infringement claims in the Territory. Except as unanimously agreed by the Patent Coordinators and subject to Article
14, (i) SUBLICENSOR shall have the primary right but not the obligation to institute and control such action, suit or proceeding
in its own name and at its sole expense and in such case, SUBLICENSOR and/or any of its Affiliates shall have the right to separate
counsel at its own expense in any such action, suit or proceeding and, ILDONG shall cooperate with SUBLICENSOR in all reasonable
respects in any such action, suit or proceeding ; (ii) in the event SUBLICENSOR waives its primary right as defined in (i) the
Parties may elect, without being obliged, to jointly commence an action, and in this respect shall be represented by a counsel
jointly chosen by the Parties, decide on a course of action, and share equally in the costs and expenses, and in the amounts recovered
in accordance with, subject to and within the limits set out in SUBLICENSOR’s Licenses, or (iii) in the event SUBLICENSOR
waives its primary right as defined in (i) ILDONG may defend any action, suit or proceeding in its own name and at its sole expense
and in such case ILDONG and/or any of its Affiliates shall have the right to separate counsel at its own expense in any such action,
suit or proceeding and SUBLICENSOR shall cooperate with ILDONG in all reasonable respects in any such action, suit or proceeding.

 

(c)          Cooperation.
Each Party shall promptly furnish the other Party with a copy of each communication relating to the alleged infringement that
is received by such Party including all documents filed in any litigation. In no event shall either Party settle or otherwise
resolve any such action, suit or proceeding brought against the other Party or any of its Affiliates or sublicensees without the
other Party’s prior written consent.

 

10.2.3   Patent
Term Restoration. The Parties hereto shall cooperate with each other in obtaining patent term restoration or supplemental
protection certificates or their equivalents in any country in the Territory where applicable to Licensed Patent Rights. Such
cooperation shall include diligently and timely conferring and coordinating with respect to such matters to ensure compliance
with applicable filing deadlines, and agreeing on procedures to be followed by the Parties to ensure such compliance. In the event
that elections with respect to obtaining such patent term restoration are to be made, SUBLICENSOR shall have the right to make
the election with respect to Licensed Patent Rights.

 

10.3      Trademark
Prosecution and Registration.

 

SUBLICENSOR shall
control the registration of the Licensed Trademark, to be used with Products in the Territory. SUBLICENSOR shall have the primary
right but not the obligation to take any actions as are required to continue and maintain in full force and effect and enforce
and defend all Licensed Trademarks and registrations thereof, against infringement and misappropriation in the Territory, and
shall be solely responsible for all expenses incurred in connection therewith. In the event SUBLICENSOR waives its primary right
to take such action, ILDONG may have the right to take any actions as are required to continue and maintain in full force and
effect and enforce and defend all Licensed Trademarks and registrations thereof, against infringement and misappropriation in
the Territory, and shall be solely responsible for all expenses incurred in connection therewith..

 

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11.         TERM
AND TERMINATION

 

11.1         Term.

 

This Agreement shall
commence on the Effective Date and shall continue in full force and effect, unless otherwise terminated pursuant to Section 11.2,
(a) until such time as ILDONG is no longer Developing at least one (1) Compound and/or at least one (1) Product or (b) if, as
of the time ILDONG is no longer Developing at least one (1) Compound and/or at least one (1) Product, ILDONG is Commercializing
a Product, until the expiration of all applicable Royalty Terms with respect to Products under this Agreement (the “Term”).
Upon the expiration of this Agreement as set forth in this Section 11.1, the license rights granted hereunder shall be converted
to perpetual and fully paid-up licenses on Licensed Technology and Licensed Patent Rights, with the right to grant unlimited sublicenses.
However, ILDONG shall continue to pay to SUBLICENSOR royalties on the use of Licensed Trademarks.

 

11.2         Termination.

 

This Agreement may
be terminated by either Party as follows:

 

11.2.1     Unilateral
Right to Terminate Agreement.

 

(a)          SUBLICENSOR
Rights to Terminate for Challenge.  Except to the extent the following is unenforceable under the Applicable Laws of
a particular jurisdiction where a patent application within the Licensed Patent Rights is pending or a patent within the Licensed
Patent Rights is issued, SUBLICENSOR may terminate this Agreement immediately upon written notice to ILDONG in the event that
ILDONG or any of its Affiliates or Sublicenses Challenges any Licensed Patent Rights or assists a Third Party in initiating a
Challenge of any Licensed Patent Rights.

 

11.2.2     Termination
for Breach. Either Party may terminate this Agreement, effective immediately upon written notice to the other Party, for
a material breach (including ILDONG’s failure to meet its diligence requirements and responsibilities as set forth in Section
3; 4 and 5) by the other Party of any term of this Agreement that remains uncured ninety (90) days (sixty (60) days in the event
that the breach is a failure of a Party to make any payment required hereunder) after the non-breaching Party first gives written
notice to the other Party of such breach and its intent to terminate this Agreement if such breach is not cured. For purposes
of clarity, the obligation of the breaching Party to cure any such breach shall be stayed for any time period during which such
breach is the subject of a dispute resolution proceeding pursuant to Section 14.1; provided, that, the obligation of the breaching
Party to cure such breach such breach shall resume commencing on the date of any final resolution of such proceeding.

 

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

 

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11.3         Consequences
of Termination of Agreement.

 

In the event of the
termination of this Agreement pursuant to Section 11.2, the following provisions shall apply, as applicable.

 

11.3.1    Termination
by SUBLICENSOR. If this Agreement is terminated by SUBLICENSOR pursuant to Section 11.2.1, 11.2.2 or 11.2.3:

 

(a)          All
licenses and rights granted by SUBLICENSOR to ILDONG, including all licenses granted to ILDONG pursuant to Section 2.1, shall
immediately terminate.

 

(b)          ILDONG
shall cease to use all Licensed Trademarks, any Marketing Authorization obtained in accordance with the AGREEMENT and shall further
promptly transfer such Marketing Authorizations and/or orphan drug designations to SUBLICENSOR at no cost for SUBLICENSOR..

 

(c)          ILDONG
shall cease to conduct any activity related to the Development and Commercialization of the Product.

 

(d)          Upon
request of SUBLICENSOR, ILDONG shall promptly, and in any event within sixty (90) days after SUBLICENSOR’s request (which
request may specify any or all of the actions in clauses (A) through (H): (A) transfer to SUBLICENSOR all of its right, title
and interest in all Drug Approval Applications and then in its name applicable to the Product, if any, and all Confidential Information
Controlled by ILDONG as of the date of termination relied on by such Drug Approval Applications; (B) notify the applicable Regulatory
Authorities and take any other action reasonably necessary to effect such transfer; (C) provide SUBLICENSOR with copies of all
correspondence between ILDONG and such Regulatory Authorities relating to such Drug Approval Applications; (D) unless expressly
prohibited by any Regulatory Authority, transfer sponsorship and control to SUBLICENSOR of all Clinical Trials of the Product
being conducted as of the effective date of termination and continue to conduct such Clinical Trials after the effective date
of termination to enable such transfer to be completed without interruption of any such Clinical Trial for up to twelve (12) months
from the effective date of termination, except for termination for breach of ILDONG, the fully burdened cost of such continuation
to be paid for by SUBLICENSOR (E) cooperate with SUBLICENSOR, cause its Affiliates to cooperate with SUBLICENSOR and use commercially
reasonable efforts to require any Third Party with which ILDONG has an agreement with respect to the conduct of Clinical Trials
for the Product (including agreements with contract research organizations, clinical sites and investigators), to cooperate with
SUBLICENSOR in order to accomplish the transfer to SUBLICENSOR of similar rights as held by ILDONG under its agreements with such
Third Parties; (F) provide SUBLICENSOR with copies of all reports and Clinical Data generated or obtained by ILDONG or its Affiliates,
and all Promotional Materials used by ILDONG, pursuant to this Agreement that relate to the Product that have not previously been
provided to SUBLICENSOR and provide SUBLICENSOR with a right of access, a right of reference and a right to use and incorporate
all Clinical Data, results and information in all Drug Approval Applications then in its name applicable to the commercialization
of Product and all material aspects of Confidential Information Controlled by it as of the date relating to such Drug Approval
Applications for SUBLICENSOR to use to seek Regulatory Approvals, Pricing Approvals, or Reimbursement Approvals; (G) provide SUBLICENSOR
at cost with all supplies of Compounds and Products in the possession of ILDONG or any Affiliate or contractor of ILDONG; and
(H) provide SUBLICENSOR with copies of all reports and data generated or obtained by ILDONG or its Affiliates pursuant to this
Agreement that relate to any Product that have not previously been provided to SUBLICENSOR; (I) enter into negotiations with SUBLICENSOR
and agree upon and implement a plan for the orderly transition of Development and Commercialization from ILDONG to SUBLICENSOR
in a manner consistent with Applicable Laws and standards of ethical conduct of human Clinical Trials and will seek to replace
all ILDONG personnel engaged in any Development or Commercialization activities, in each case, as promptly as practicable. In
connection therewith, ILDONG shall be deemed to have granted to SUBLICENSOR an exclusive, fully-paid, royalty-free, irrevocable
license, with the right to grant sublicenses under ILDONG’s interest in Joint Improvements and Joint Patent Rights, for
the sole purpose of using, making, having made, offering for sale, selling, having sold, importing and exporting any Products
being Developed and/or Commercialized by ILDONG as of the effective date of such termination in the Field and in the Territory.

 

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(e)          Each
Party shall promptly return all Confidential Information and Proprietary Materials of the other Party that are not subject to
a continuing license hereunder; provided, that, each Party may retain one copy of the Confidential Information of the other Party
in its archives solely for the purpose of establishing the contents thereof and ensuring compliance with its obligations hereunder.

 

(f)          ILDONG
shall promptly return to SUBLICENSOR all raw data and results generated in each such Clinical Trial.

 

SUBLICENSOR agrees that it will not voluntarily
terminate the LFB/GTC Agreement (or allow such agreement to be terminated by the Senior Licensors), unless SUBLICENSOR maintains
its license for the Territory on terms and conditions no less favorable to ILDONG as in this Agreement or makes arrangements for
ILDONG to be granted a direct license from the Senior Licensors with terms and conditions no less favorable to ILDONG as in this
Agreement.

 

(g)
          Upon any termination of this Agreement by SUBLICENSOR, (excluding
termination by SUBLICENSOR pursuant to 11.2.2), or upon termination by ILDONG pursuant to 11.2.2, SUBLICENSOR shall buy back from
ILDONG, at the Purchase Price, any unsold, unopened SUBLICENSOR Products in ILDONG’s possession that have been purchased
from SUBLICENSOR which are in marketable condition (as determined in the sole discretion of SUBLICENSOR) and are of a product
designation then included in the products being offered for sales by SUBLICENSOR. The aggregate amount to be paid to ILDONG under
this provision may be offset by SUBLICENSOR against claims it has against ILDONG, including payment of goods supplied under this
Agreement. In order to ensure the marketable condition of such Products, all documentation must be presented indicating proper
storage, handling, and shipment of such Products at all times while in possession by ILDONG. Additionally, and at ILDONG’S
sole expense, SUBLICENSOR may request a sample of such Product be analyzed by an independent laboratory (to be agreed upon by
both Parties), to assess the Product’s marketable condition and adherence to product specifications. In the case that such
Product is determined not to be in marketable condition, SUBLICENSOR will not be obligated to purchase back such Product from
ILDONG. 

 

    	46

    	 

    

 

11.3.2   Termination
by ILDONG. If this Agreement is terminated by ILDONG pursuant to Section, 11.2.2 or 11.2.3:

 

(a)          At
ILDONG’s election, all licenses granted by SUBLICENSOR to ILDONG pursuant to Section 2.1 shall survive such termination,
in each case subject to ILDONG’s continued payment of all milestone, royalty and other payments under and in accordance
with this Agreement with respect thereto.

 

(b)          Each
Party shall promptly return all Confidential Information and Proprietary Materials of the other Party that are not subject to
a continuing license hereunder; provided, that, each Party may retain one copy of the Confidential Information of the other Party
in its archives solely for the purpose of establishing the contents thereof and ensuring compliance with its obligations hereunder.

 

(c)          ILDONG
shall promptly return to SUBLICENSOR all raw data and results generated in each such Clinical Trial.

 

11.4         Surviving
Provisions.

 

Termination or expiration
of this Agreement for any reason shall be without prejudice to:

 

(a)          Survival
of rights specifically stated in this Agreement to survive, including without limitation as set forth in Section 11.3;

 

(b)          The
rights and obligations of the Parties provided in Sections 8, 9, 10, 12, 13, 14.1 and 14.2 (including all other Sections or Articles
referenced in any such Section or Article), all of which shall survive such termination except as provided in this Article 10;
and

 

(c)          Any
other rights or remedies provided at law or equity which either Party may otherwise have.

 

    	47

    	 

    

 

 

12.         REPRESENTATIONS
AND WARRANTIES 

 

12.1         Mutual
Representations and Warranties. 

 

SUBLICENSOR and
ILDONG each hereby represent and warrant to the other, as of the Effective Date, as follows:

 

12.1.1           Organization.
It is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization,
and has all requisite power and authority, corporate or otherwise, to execute, deliver and perform this Agreement.

 

12.1.2           Authorization.
The execution and delivery of this Agreement and the performance by it of the transactions contemplated hereby have been duly
authorized by all necessary corporate action and will not violate (a) such Party’s certificate of incorporation or bylaws
(or equivalent charter or organizational documents), (b) any agreement, instrument or contractual obligation to which such Party
is bound in any material respect, (c) any requirement of any Applicable Laws, or (d) any order, writ, judgment, injunction, decree,
determination or award of any court or governmental agency presently in effect applicable to such Party.

 

12.1.3           Binding
Agreement. This Agreement is a legal, valid and binding obligation of such Party enforceable against it in accordance
with its terms and conditions.

 

12.1.4           No
Inconsistent Obligation. It is not under any obligation, contractual or otherwise, to any Person that conflicts with or
is inconsistent in any respect with the terms of this Agreement or that would impede the diligent and complete fulfillment of
its obligations hereunder.

 

12.1.5           No
Government Authorization Required. No government authorization, consent, approval, license, exemption of or filing or
registration with any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign,
under any Applicable Laws currently in effect, is or will be necessary for, or in connection with, the transactions contemplated
by this Agreement, or for the performance by it of its obligations under this Agreement.

 

12.1.6           ILDONG
represents and warrants that it has all necessary financial and human resources to enter and perform all its commitments and obligations
contained in the Agreement.

 

12.2         Additional
Representations of SUBLICENSOR.

 

SUBLICENSOR further
represents and warrants to ILDONG, as of the Effective Date, as follows:

 

12.2.1           Validity
of Patent Rights. All Licensed Patent Rights listed on Schedule 4 are existing and, to SUBLICENSOR’ Knowledge,
no issued patents which are part of the Licensed Patent Rights listed on Schedule 4 are invalid or unenforceable.

 

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12.2.2           No
Claims.  There are no claims, judgments or settlements against SUBLICENSOR pending, or to SUBLICENSOR’ Knowledge,
threatened, that invalidate or seek to invalidate the Licensed Patent Rights. There is no litigation pending against SUBLICENSOR
or any Affiliate of SUBLICENSOR that alleges that any of SUBLICENSOR’ activities relating to the Compound have violated,
or by Developing the Compound would violate, any of the intellectual property rights of any Third Party (nor has it received any
written communication threatening such litigation). To SUBLICENSOR’ Knowledge, no litigation has been threatened against
SUBLICENSOR or any Affiliate of SUBLICENSOR which alleges that any of its activities relating to the Compound have violated, or
by Developing the Compound would violate, any of the intellectual property rights of any Third Party.

 

12.2.3           No
License. SUBLICENSOR has not previously entered into any agreement pursuant to which it granted a license with respect
to the Compound, or Product or under the Licensed Patent Rights or Licensed Technology to any Affiliate or Third Party, which
license grant remains in effect or which agreement has surviving license rights, or other surviving terms, that are inconsistent
with the rights and licenses granted to ILDONG under this Agreement.

 

12.2.4           Third
Party Patents.  Except the patents disclosed during ILDONG’S due diligence and to SUBLICENSOR’ Knowledge,
no Patent Rights owned or controlled by any Third Party would be infringed by the Development, Manufacture, use of Commercialization
by or on behalf of ILDONG of the Compound or any Product pursuant to this Agreement.

 

12.2.5           No
Interference. To SUBLICENSOR’S Knowledge, (a) the Licensed Patent Rights are not the subject of any interference
proceeding and (b) there is no pending or threatened action, suit, proceeding or claim by any Third Party challenging SUBLICENSOR’S
ownership rights in, or the validity or scope of, the Licensed Patent Rights.

 

12.3         Additional
Representations of ILDONG.

 

ILDONG further represents
and warrants to SUBLICENSOR, as of the Effective Date, as follows:

 

12.3.1           No
Claims.  There is no litigation pending against ILDONG or any Affiliate of ILDONG that relates, directly or indirectly,
to the subject matter of this Agreement and that alleges that any of ILDONG’s activities to be conducted relating to the
Development of the Compound would violate any of the intellectual property rights of any Third Party (nor has it received any
written communication threatening such litigation).

 

12.3.2           Compliance
with Applicable Laws.  ILDONG is in compliance with all Applicable Laws, and is not in default under or in
violation of any Applicable Laws, that, in any case, would reasonably be expected to adversely affect the ability of ILDONG to
comply with and perform its obligations under this Agreement.

 

    	49

    	 

    

 

 

12.3.3           Electronic
Dataroom. ILDONG represents and warrants that it has been granted access to an electronic dataroom organized by SUBLICENSOR
and therefore has a clear and perfect knowledge and a good understanding of all documents, information and data contained in such
electronic dataroom, and their consequences on rights granted by LICENCOR under the Agreement. Within thirty (30) days of the
date hereof, SUBLICENSOR will use Commercially Reasonable Efforts to transfer a copy of the contents of the electronic dataroom
in their original format to ILDONG and will transfer such other manifestations of the Licensed Technology useful or necessary
for ILDONG to Develop and Commercialize the Products, including without limitation raw data and results generated in each clinical
trial and pre-clinical studies  previously conducted and batch reports from manufacturing runs through the date hereof, to
the extent not included in the dataroom.  On and after the date hereof, SUBLICENSOR will use Commercially Reasonable Efforts
to forward such manifestations of the Licensed Technology that it has in its possession to ILDONG on a regular basis or upon request.

 

13.         INDEMNIFICATION;
INSURANCE

 

13.1         Indemnification
of SUBLICENSOR by ILDONG.

 

ILDONG shall indemnify,
defend and hold harmless SUBLICENSOR, its Affiliates, their respective directors, officers, employees and agents, and their respective
successors, heirs and assigns (collectively, the “SUBLICENSOR Indemnities”), against all liabilities, damages,
losses and expenses (including, without limitation, reasonable attorneys’ fees and expenses of litigation) (collectively,
“Losses”) incurred by or imposed upon SUBLICENSOR Indemnities, or any of them, as a direct result of claims,
suits, actions, demands or judgments of Third Parties, including, without limitation, personal injury and product liability claims
(collectively, “Claims”), arising out of (a) the Development, testing, sale, offer for sale, or Commercialization
by ILDONG or any of its Affiliates, Sublicensees or Distributors of any Product; (b) any breach of this Agreement by ILDONG or
any of its Affiliates, Sublicensees, Distributors or agents; and (c) the gross negligence or willful misconduct of any ILDONG
Indemnity or Sublicensee of ILDONG; excluding, in each of (a), (b) and (c) above, any Claim or Loss with respect to which SUBLICENSOR
has an obligation to indemnify ILDONG Indemnities pursuant to Section 13.2, as to which Claim or Loss each Party will indemnify
the other to the extent of their respective liability for such Loss (unless such Claim or Loss is otherwise expressly excluded
from a Party’s indemnification obligations under this Agreement).

 

13.2         Indemnification
of ILDONG by SUBLICENSOR.

 

SUBLICENSOR shall
indemnify, defend and hold harmless ILDONG, its Affiliates, their respective directors, officers, employees and agents, and their
respective successors, heirs and assigns (collectively, the “ILDONG Indemnities”), against all Losses (including,
without limitation, reasonable attorneys’ fees and expenses of litigation) incurred by or imposed upon the ILDONG Indemnities,
or any of them, as a direct result of Claims arising out of (a) the commercialization by SUBLICENSOR of any SUBLICENSOR Commercialization
Product in the SUBLICENSOR Commercialization Territory following exercise of SUBLICENSOR commercialization option (b) any breach
of this Agreement by SUBLICENSOR or any of its Affiliates, (sub)licensees, distributors or agents; or (c) the gross negligence
or willful misconduct of any SUBLICENSOR Indemnity or (sub)licensee of SUBLICENSOR; excluding, in the case of clauses (a) and
(b) above, any Claim or Loss with respect to which ILDONG or any of its Affiliates has an obligation to indemnify SUBLICENSOR
pursuant to Section 13.1, as to which Claim or Loss each Party will indemnify the other to the extent of their respective liability
for such Loss.

 

    	50

    	 

    

 

13.3         Conditions
to Indemnification.

 

A Person seeking modification
under this Article 13 (the “Indemnified Party”) in respect of a Claim shall give prompt notice of such Claim
to the Party from which indemnification is sought (the “Indemnifying Party”); provided, that, the Indemnifying
Party is not contesting its obligation under this Section 13, shall permit the Indemnifying Party to control any litigation relating
to such Claim and the disposition of such Claim; provided, that, the Indemnifying Party shall (a) act reasonably and in good faith
with respect to all matters relating to the settlement or disposition of such Claim as the settlement or disposition relates to
such Indemnified Party and (b) not settle or otherwise resolve such claim without the prior written consent of such Indemnified
Party (which consent shall not be unreasonably withheld, conditioned or delayed). Each Indemnified Party shall cooperate with
the Indemnifying Party in its defense of any such Claim in all reasonable respects and shall have the right to be present in person
or through counsel at all legal proceedings with respect to such Claim.

 

13.4         Insurance.

 

Not later than thirty
(30) days before the date on which ILDONG or any Affiliate or Sublicensee of ILDONG shall, on a commercial basis, make, use, or
sell any Products, and at all times thereafter until the expiration of all applicable statutes of limitation pertaining to any
such manufacture, marketing, possession, use, sale of other disposition of any Products, ILDONG will, at its expense, and SUBLICENSOR
will, at its expense, with respect to Products, obtain and maintain in full force and effect, comprehensive general liability
insurance, including product liability insurance and Clinical Trial insurance in such amounts as each such Party customarily maintains
with respect to the development, manufacture and sale of its other products. Notwithstanding the foregoing, either Party may elect
to self-insure with respect to any insurance coverage it is required to obtain hereunder as part of a comprehensive self-insurance
program adopted by such Party. For the avoidance of doubt, all insurance obligations and associated costs for any sale and development
of Product within the Territory and over which SUBLICENSOR has little or no control, shall be borne solely by ILDONG.

 

13.5         Warranty
Disclaimer.

 

EXCEPT AS OTHERWISE
EXPRESSLY PROVIDED IN THIS AGREEMENT, NEITHER PARTY MAKES ANY WARRANTY WITH RESPECT TO ANY KNOW-HOW,
GOODS, SERVICES, RIGHTS OR OTHER SUBJECT MATTER OF THIS AGREEMENT AND EACH PARTY HEREBY DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT.

 

    	51

    	 

    

 

13.6         No
Warranty of Success.

 

Nothing contained
in this Agreement shall be construed as a warranty, either express or implied, on the part of either Party that (a) the Development
Program will yield a Product or otherwise be successful or meet its goals, time lines or budgets, or (b) the outcome of the Development
Program will be commercially exploitable in any respect.

 

13.7         Limited
Liability.

 

EXCEPT AS SET FORTH
UNDER SECTIONS 13.1 OR 13.2, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY OR ANY OF ITS AFFILIATES FOR (I) ANY SPECIAL, PUNITIVE,
INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, INCLUDING, WITHOUT LIMITATION, LOST PROFITS OR LOST REVENUES, OR (II) COST OF PROCUREMENT
OF SUBSTITUTE GOODS, KNOW-HOW OR SERVICES, WHETHER UNDER ANY CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR
EQUITABLE THEORY.

 

14.         MISCELLANEOUS

 

14.1         Disputes;
Consent to Jurisdiction.  

 

The Parties shall
use reasonable efforts to settle any Disputed Matter arising from or related to this Agreement or the breach thereof (each, a
“Dispute”) by promptly referring any such dispute to the Executive Officer of each Party. If the Executive
Officers are unable to resolve any Dispute within thirty (30) days of the date on which the Dispute was referred to them for resolution,
the Dispute shall be subject to the sole jurisdiction of, and venue in, the U.S. federal courts of competent jurisdiction located
within New York, New York, USA (if available), and otherwise the state courts of competent jurisdiction located within New York,
New York, USA. ILDONG and SUBLICENSOR each irrevocably consent to the jurisdiction of such courts, irrevocably waive any objection
based on inconvenience of forum, and agree that process may be served in the manner provided herein for giving notices or otherwise
as allowed by New York or applicable federal law. Notwithstanding the foregoing, either Party shall have the right, without waiving
any right or remedy available to such Party under this Agreement or otherwise, to seek and obtain from any court of competent
jurisdiction any interim or provisional relief that is necessary or desirable to protect the rights or property of such Party.

 

14.2         Notices.

 

All notices and communications
shall be in writing and delivered personally or by internationally-recognized overnight express courier providing evidence of
delivery or mailed via certified mail, return receipt requested, addressed as follows, or to such other address as may be designated
from time to time:

 

    	52

    	 

    

 

If to SUBLICENSOR:             TG
Biologics, Inc.

787 Seventh Ave., 48th Floor

New York, NY 10019

Attention: Hari Miskin

Tel.: 212-554-4492

Fax: 212-554-4531

 

With a copy to:

Alston & Bird LLP

Attn : Mark McElreath

90 Park Avenue

New York, NY 10016

Tel : 212-210-9595

 

If to ILDONG:                           ILDONG
Pharmaceutical Co., Ltd.

Attn: SUNGSANG SEO

Tel: +82-2-526-3357

Fax: +82-2-526-3020

 

With a copy to:

BD&Licensing Team

ILDONG PHARMACEUTICAL CO., LTD.

Attention: Dong-young Park

Tel: +82-2-526-3383

Fax: +82-2-526-3020

 

Except as otherwise
expressly provided in this Agreement or mutually agreed in writing, any notice, communication or document (excluding payment)
required to be given or made shall be deemed given or made and effective upon actual receipt or, if earlier, (a) three (3) Business
Days after deposit with an internationally-recognized overnight express courier with charges prepaid, or (b) five (5) Business
Days after mailed by certified, registered or regular mail, postage prepaid, in each case addressed to a Parties at its address
stated above or to such other address as such Party may designate by written notice given in accordance with this Section 14.2.

 

14.3         Governing
Law.

 

This Agreement shall
be governed by and construed in accordance with the laws of the State of Delaware, without regard to the application of
principles of conflicts of law.

 

14.4         Competition
Law.  

 

SUBLICENSOR and ILDONG
agree that nothing in this Agreement shall be interpreted in a way that conflicts with EC Block Exemption No: 418/85 on research
and development agreements, or EC Block Exemption No: 240/96 on technology transfer agreements, as issued by the European Commission
(as these may be amended or replaced from time to time).

 

    	53

    	 

    

 

14.5         Binding
Effect.

 

This Agreement shall
be binding upon and inure to the benefit of the Parties and their respective legal representatives, successors and permitted assigns.

 

14.6         Headings.

 

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

 

14.7         Counterparts.

 

This Agreement may
be executed simultaneously in two or more counterparts, each of which shall be deemed an original and both of which, together,
shall constitute a single agreement.

 

14.8         Amendment;
Waiver.

 

This Agreement may
be amended, modified, superseded or canceled, and any of the terms of this Agreement may be waived, only by a written instrument
executed by each Party or, in the case of waiver, by the Party or Parties waiving compliance. The delay or failure of either Party
at any time or times to require performance of any provisions shall in no manner affect the rights at a later time to enforce
the same. No waiver by either Party of any condition or of the breach of any term contained in this Agreement, whether by conduct,
or otherwise, in any one or more instances, shall be deemed to be, or considered as, a further or continuing waiver of any such
condition or of the breach of such term or any other term of this Agreement.

 

14.9         No
Third Party Beneficiaries.

 

Except as set forth
in Sections 13.1 and 13.2, no Third Party (including, without limitation, employees of either Party) shall have or acquire any
rights by reason of this Agreement.

 

14.10         Purposes
and Scope.

 

The Parties hereto
understand and agree that this relationship is limited to the activities, rights and obligations as set forth in this Agreement.
Nothing in this Agreement shall be construed (a) to create or imply a general partnership between the Parties, (b) to make either
Party the agent of the other for any purpose, (c) to alter, amend, supersede or vitiate any other arrangements between the Parties
with respect to any subject matters not covered hereunder, (d) to give either Party the right to bind the other, (e) to create
any duties or obligations between the Parties except as expressly set forth herein, or (f) to grant any direct or implied licenses
or any other right other than as expressly set forth herein.

 

    	54

    	 

    

 

14.11         Assignment
and Successors.

 

Neither this Agreement
nor any obligation of a Party hereunder may be assigned by either Party without the consent of the other which shall not be unreasonably
withheld, except that each Party may assign this Agreement and the rights, obligations and interests of such Party, (a) in whole
or in part, to any of its Affiliates, or (b) in whole, but not in part, to any purchaser of all of its assets or all of its assets
to which this Agreement relates or shares representing a majority of its common stock voting rights or to any successor corporation
resulting from any merger, consolidation, share exchange or other similar transaction.

 

14.12         Force
Majeure.

 

Neither ILDONG nor
SUBLICENSOR shall be liable for failure of or delay in performing obligations set forth in this Agreement, and neither shall be
deemed in breach of its obligations, if such failure or delay is due to a Force Majeure. In event of such Force Majeure, the Party
affected shall use reasonable efforts to cure or overcome the same and resume performance of its obligations hereunder.

 

14.13         Interpretation.

 

The Parties hereto
acknowledge and agree that: (a) each Party and its counsel reviewed and negotiated the terms and provisions of this Agreement
and have contributed to its revision; (b) the rule of construction to the effect that any ambiguities are resolved against the
drafting Party shall not be employed in the interpretation of this Agreement; and (c) the terms and provisions of this Agreement
shall be construed fairly as to each Party and not in a favor of or against either Party, regardless of which Party was generally
responsible for the preparation of this Agreement. In addition, unless a context otherwise requires, wherever used, the singular
shall include the plural, the plural the singular, the use of any gender shall be applicable to all genders, the word “or”
is used in the inclusive sense (and/or) and the word “including” is used without limitation and means “including
without limitation”.

 

14.14         Integration;
Severability.

 

This Agreement, and
when executed, the Commercial Supply Agreement(s) set forth the entire agreement with respect to the subject matter hereof and
thereof and supersede all other agreements and understandings between the Parties with respect to such subject matter. If any
provision of this Agreement is or becomes invalid or is ruled invalid by any court of competent jurisdiction or is deemed unenforceable,
it is the intention of the Parties that the remainder of this Agreement shall not be affected.

 

    	55

    	 

    

 

14.15         Further
Assurances.

 

Each of SUBLICENSOR
and ILDONG agrees to duly execute and deliver, or cause to be duly executed and delivered, such further instruments and do and
cause to be done such further acts and things, including, without limitation, the filing of such additional assignments, agreements,
documents and instruments, as the other Party may at any time and from time to time reasonably request in connection with this
Agreement or to carry out more effectively the provisions and purposes of, or to better assure and confirm unto such other Party
its rights and remedies under, this Agreement.

 

[Remainder of page
intentionally left blank.]

 

    	56

    	 

    

 

IN WITNESS WHEREOF,
the Parties have caused this Agreement to be executed by their duly authorized representatives.

 

	 	TG BIOLOGICS, INC. 
	 	 	 
	 	By:	/s/ Michael S. Weiss
	 	Name: Michael S. Weiss
	 	Title: Executive Chairman, President, & CEO
	 	 	 
	 	ILDONG PHARMACEUTICAL CO., LTD. 
	 	 	 
	 	By:	/s/ Jung-chi Lee
	 	Name: Jung-chi Lee
	 	Title: Chairman & CEO

 

    	57

    	 

    

 

EXHIBIT A

 

SUPPLY AGREEMENT 

 

    	58

    	 

    

 

SCHEDULE 2

 

COMMERCIALIZATION PLAN

 

    	59

    	 

    

 

SCHEDULE 3

 

DESCRIPTION OF LFB-R603

*

Storage conditions: *

 

Expected * years limitation period

 

Administration conditions: *

 

 

* Confidential
material redacted and filed separately with the Commission.

 

    	60

    	 

    

 

SCHEDULE 4

 

LICENSED PATENT RIGHTS AND BACKGROUND
PATENT RIGHTS

 

1.          LICENSED
PATENT RIGHTS

 

		-	*
                                                                                                                                      patent
                                                                                                                                      family
                                                                                                                                      filed
                                                                                                                                      on
                                                                                                                                      *
                                                                                                                                      -
                                                                                                                                      Patent
                                                                                                                                      applications
                                                                                                                                      are
                                                                                                                                      pending
                                                                                                                                      in
                                                                                                                                      *
                                                                                                                                      and
                                                                                                                                      *

 

		-	*
                                                                                                                                      patent
                                                                                                                                      family
                                                                                                                                      filed
                                                                                                                                      on
                                                                                                                                      *

 

2.          BACKGROUND
PATENT RIGHTS

 

		-	*
                                                                                                                                      patent
                                                                                                                                      family
                                                                                                                                      filed
                                                                                                                                      on
                                                                                                                                      *

 

		-	*patent
                                                                                                                                      family
                                                                                                                                      filed
                                                                                                                                      on
                                                                                                                                      *

 

		-	*patent
                                                                                                                                      family
                                                                                                                                      filed
                                                                                                                                      on
                                                                                                                                      *

 

		-	*patent
                                                                                                                                      family
                                                                                                                                      filed
                                                                                                                                      on
                                                                                                                                      *

 

		-	*patent
                                                                                                                                      family
                                                                                                                                      filed
                                                                                                                                      on
                                                                                                                                      *

 

		-	*patent
                                                                                                                                      family
                                                                                                                                      filed
                                                                                                                                      on
                                                                                                                                      *

 

		-	*
                                                                                                                                      patent
                                                                                                                                      family
                                                                                                                                      filed
                                                                                                                                      on
                                                                                                                                      *

 

		-	*
                                                                                                                                      patent
                                                                                                                                      family
                                                                                                                                      filed
                                                                                                                                      on
                                                                                                                                      *

 

		-	*
                                                                                                                                      patent
                                                                                                                                      family
                                                                                                                                      filed
                                                                                                                                      on
                                                                                                                                      *

 

		-	*
                                                                                                                                      patent
                                                                                                                                      family
                                                                                                                                      filed
                                                                                                                                      on
                                                                                                                                      *

 

 

* Confidential
material redacted and filed separately with the Commission.

 

    	61

    	 

    

 

SCHEDULE 5

 

DESCRIPTION OF TG20

*

Storage conditions: same as *

 

 

* Confidential
material redacted and filed separately with the Commission.

  

    	62

    	 

    

 

SCHEDULE 6

 

PRESS RELEASE

 

TG Therapeutics Announces Exclusive Licensing Agreement
with Ildong Pharmaceutical Co., Ltd. for Development and Commercialization of Ublituximab (TGTX-1101) in South Korea and Southeast
Asia

 

New York, NY (November 14, 2012)—TG Therapeutics,
Inc. (TG Therapeutics) (Ticker: TGTX) today announced that it has entered into an exclusive licensing agreement with Ildong Pharmaceutical
Co. Ltd. (Ildong) for the development and commercialization of the company’s novel anti-CD20 antibody, Ublituximab (TGTX-1101)
in South Korea and Southeast Asia.

 

Under the terms of the agreement, TG Therapeutics will receive
an upfront payment of $2 Million in addition to sales based milestone and royalty payments in exchange for exclusive rights to
develop and commercialize Ublituximab for all therapeutic indications in the territory. TG Therapeutics will retain all rights
for the manufacture and supply of Ublituximab within the territory during clinical development and commercialization.

 

Ublituximab is under development by TG Therapeutics for hematologic
malignancies and other B-cell lymphoproliferative disorders, and is currently being evaluated in a North American Phase I/II clinical
trial in patients with relapsed or refractory non-Hodgkin’s lymphoma.

 

“Having already demonstrated impressive clinical activity
in patients with relapsed and refractory Chronic Lymphocytic Leukemia, Ublituximab has shown itself to be a promising treatment
for patients with B-cell related disorders. We are excited to work with the experienced team at Ildong to expand the scope of
development for Ublituximab.” stated Michael S. Weiss, Chairman and Interim CEO of TG Therapeutics.

 

“We are delighted to have added Ublituximab to our pipeline
in biologics and it is a strategic fit for Ildong,” said Jung-Chi Lee, Chairman & CEO of Ildong. “We believe
Ublituximab, a next generation anti-CD20 therapy will strengthen our presence in oncology and auto-immune areas and look forward
to working with TG Therapeutics in developing Ublituximab in South Korea and Southeast Asia.”

 

MedCI LLC served as licensing advisor and provided assistance
to TG Therapeutics with respect to this transaction.

 

ABOUT UBLITUXIMAB

 

Ublituximab is a novel, third generation chimeric monoclonal
antibody targeting a unique epitope on the CD20 antigen found on B lymphocytes. Ublituximab has been bioengineered for enhanced
biological activity with an increased ability to trigger an immune response, delivering superior ADCC effects to aid in B-cell
depletion. Ublituximab has displayed high single agent activity in a Phase I/II clinical trial in patients with relapsed Chronic
Lymphocytic Leukemia, and is being developed by TG Therapeutics in multiple oncology and autoimmune indications.

 

    	63

    	 

    

 

Ublituximab has been granted orphan status in Europe and in
the USA for B-cell Chronic Lymphocytic Leukemia, and is currently being evaluated in a Phase I/II clinical trial in patients with
non-Hodgkin’s lymphoma relapsed or refractory to prior anti-CD20 therapy.

 

ABOUT TG THERAPEUTICS, INC.

 

TG Therapeutics is an innovative, clinical-stage biopharmaceutical
company focused on the acquisition, development and commercialization of innovative and medically important pharmaceutical products
for the treatment of cancer and other underserved therapeutic needs. Currently, the company is developing two advanced therapies
targeting hematological malignancies. TGTX-1101 (ublituximab) is a novel, third generation monoclonal antibody that targets
a specific and unique epitope on the CD20 antigen found on mature B-lymphocytes, currently in clinical development for patients
with relapsed and refractory non-Hodgkin's lymphoma. TG Therapeutics is also developing TGR-1202, a highly specific, orally
available PI3K delta inhibitor. TG Therapeutics is headquartered in New York City. For more information, visit the TG
Therapeutics website at http://www.tgtherapeutics.com.

 

ABOUT ILDONG PHARMACEUTICAL CO., LTD.

 

Ildong Pharmaceutical Co., Ltd., (000230 KS) based in Seoul,
Korea, is a leading Korean company focused on the development, manufacturing and marketing of pharmaceuticals and OTC products
with 340B KRW(or 294MUSD) turnover in 2011. Ildong, founded in 1941, is known to have leading expertise in various therapeutic
categories including oncology, neurology, antibiotics, gastrointestinal, and cardiovascular. For more information, visit the Ildong
website at http:// www.ildong.com

 

Cautionary Statement

 

Some of the statements included in this press release, particularly
those anticipating future clinical trials and business prospects for ublituximab may be forward-looking statements that involve
a number of risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995. Among the factors that could cause our actual results to differ
materially are the following: our ability to successfully and cost-effectively complete pre-clinical and clinical trials for ublituximab;
the risk that the data (both safety and efficacy) from future clinical trials will not coincide with the data analyses from prior
pre-clinical and clinical trials; and other risk factors identified from time to time in our reports filed with the Securities
and Exchange Commission. Any forward-looking statements set forth in this press release speak only as of the date of this press
release. We do not undertake to update any of these forward-looking statements to reflect events or circumstances that occur after
the date hereof. This press release and prior releases are available at www.tgtherapeutics.com. The information found on our website
is not incorporated by reference into this press release and is included for reference purposes only.

 

    	64

    	 

    

 

 

CONTACT: 

 

TG Therapeutics :

 

Jenna Bosco

 

Director- Investor Relations

 

TG Therapeutics, Inc.

 

Telephone: 212.554.4484

 

Email: ir@tgtxinc.com

 

Ildong :

 

Sung-Sang Seo

 

Supervisor-BD & Licensing

 

Ildong Pharmaceutical Co., Ltd.

 

Telephone: 82.2.526.3357

 

Email: diplomat@ildong.com

 

    	65

    	 

    

 

SCHEDULE 7

 

LICENSED TRADEMARKS

 

	Trademark	 	Territory	 	Classes	 	Filing date	 	Filing number	 	Registration

    date	 	Registration

    number	 	Expiration

    date	 	 	 	Statut
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

*

 

 

* Confidential
material redacted and filed separately with the Commission.

 

    	66

    	 

    

 

	Trademark	 	Territory	 	Classes	 	Filing date	 	Filing number	 	Registration

    date	 	Registration

    number	 	Expiration

    date	 	 	 	Statut
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

*

 

 

* Confidential
material redacted and filed separately with the Commission.

 

    	67

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