Document:

Exhibit
10.33

 

CONFIDENTIAL
TREATMENT

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED
WITH AN ASTERISK [*], HAS BEEN FILED SEPERATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

Execution
Copy

 

CYSTIC
FIBROSIS PROGRAM RELATED INVESTMENT AGREEMENT

 

by
and between

 

Corbus
Pharmaceuticals, Inc.

 

and

 

Cystic
Fibrosis Foundation

 

    	 

     

    

 

Cystic
Fibrosis Program Related Investment Agreement

 

	ARTICLE I – DEFINITIONS	2
	 	 
	ARTICLE II – DEVELOPMENT PLAN	10
	 	 
	2.1	Commencement; Objective	10
	2.2	Duration of the Development Plan	10
	2.3	Development Diligence	10
	2.4	Project Advisory Group	11
	2.5	Delivery of Information to the PAG	12
	 	 	 
	ARTICLE III – AWARD PAYMENTS; RECORDS	13
	 	 
	3.2	Records; Reporting Obligations; Audits	15
	 	 	 
	ARTICLE IV – COMMERCIALIZATION; ROYALTIES	17
	 	 
	4.1	Development and Commercialization of a Product	17
	4.2	Royalties	17
	4.3	Warrants	19
	4.4	Sales Reports	19
	4.5	Transferee Liability	20
	 	 	 
	ARTICLE V – CONFIDENTIALITY	21
	 	 
	5.1	Confidentiality	21
	5.2	Publicity; Use of Name	23
	 	 	 
	ARTICLE VI – PUBLICATION	24
	 	 
	ARTICLE VII – INDEMNIFICATION AND INSURANCE	25
	 	 
	7.1	Indemnification by Corbus	25
	7.2	Claims Procedures	25
	7.3	Participation; Assuming Control of the Defense	26
	7.4	Insurance	26
	7.5	Limitation of Liability	27
	 	 	 
	ARTICLE VIII – PATENTABLE INVENTIONS	27
	 	 
	8.1	Ownership	27
	8.2	Exclusive License Grant	27
	8.3	Preparation	28
	8.4	Costs	28
	8.5	Abandonment	28
	8.6	No License	28
	 	 	 
	ARTICLE IX – TERM AND TERMINATION	29
	 	 
	9.1	Term	29
	9.2	Termination by CFF For Cause	29
	9.3	Termination for CFF Breach	30
	9.4	General Effect of Termination; Survival	30
	9.5	Prior Agreement	30

 

    	 	 - i -	 

     

    

 

	ARTICLE X – REPRESENTATIONS AND WARRANTIES	31
	 	 
	10.1	Representations and Warranties of Corbus	31
	10.2	Representations and Warranties of CFF	31
	 	 	 
	ARTICLE XI – MISCELLANEOUS PROVISIONS	31
	 	 
	11.1	Governing Law	31
	11.2	Dispute Resolution	32
	11.3	Waiver	32
	11.4	Force Majeure	32
	11.5	Severability	33
	11.6	Assignment	33
	11.7	Counterparts	34
	11.8	No Agency	34
	11.9	Notice	34
	11.10	Headings	36
	11.11	Entire Agreement	36
	11.12	No Impairment	36

 

Exhibits

Exhibit
A – Development Plan

 

Exhibit
B – Budget and Milestone Payments

 

Exhibit
C - CFF Patents

 

Exhibit
D – Warrants to CFF

 

    	 	 - ii -	 

     

    

 

PROGRAM
RELATED INVESTMENT AGREEMENT

 

This
Agreement (this “Agreement”) is made on this 26th day of January, 2018 (the “Effective Date”)
by and between Corbus Pharmaceuticals, Inc. (“Corbus”), a Delaware corporation, with its principal office at 100 River
Ridge Drive, Norwood, MA 02062, and Cystic Fibrosis Foundation (“CFF”), a nonprofit corporation with its principal
offices at 4550 Montgomery Ave, Bethesda, Maryland, 20814. Corbus and CFF are each a “Party,” and, collectively,
the “Parties.”

 

WHEREAS,
CFF’s principal charitable mission is the discovery and development of drugs to cure or mitigate Cystic Fibrosis, to which
CFF brings significant scientific, human resources and financial support; and

 

WHEREAS,
Corbus is developing Lenabasum for the treatment of rare, chronic and serious inflammatory and fibrotic diseases including (i)
systemic sclerosis (ii) Cystic Fibrosis (iii) dermatomyositis and (iv) systemic lupus erythematosus; and

 

WHEREAS,
Corbus desires to prepare for and conduct a Phase 2 Clinical Trial for Lenabasum in cystic fibrosis patients; and

 

WHEREAS,
CFF desires to provide an Award to fund the Phase 2 Clinical Trial on the terms and conditions set forth in this Agreement
and Corbus desires to accept the Award;

 

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

 

    	 

     

    

 

ARTICLE
I – DEFINITIONS

 

For
purposes of this Agreement, the terms defined in this Article 1 shall have the following meanings whether used in their singular
or plural forms. Use of the singular shall include the plural and vice versa, unless the context requires otherwise:

 

1.1
“Affiliate” shall mean, with respect to any Person, any other Person which directly or indirectly, by itself or
through one or more intermediaries, controls, or is controlled by, or is under direct or indirect common control with, such Person.
The term “control” as used in this Section 1.1 means the possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract
or otherwise. Control will be presumed if one Person owns, either of record or beneficially, more than fifty percent (50%) of
the voting stock of any other Person.

 

1.2
“Agreement” means this agreement, together with all appendices, exhibits and schedules hereto, and as the same
may be amended or supplemented from time to time hereafter by a written agreement duly executed by authorized representatives
of each Party hereto.

 

1.3
“Applicable Laws” shall mean the applicable laws of any jurisdiction which are applicable to any of the Parties
or their respective Affiliates in carrying out activities hereunder or to which any of the Parties or their respective Affiliates
in carrying out the activities hereunder is subject, and shall include all statutes, enactments, acts of legislature, laws, ordinances,
rules, regulations, notifications, guidelines, policies, directions, directives and orders of any statutory authority, tribunal,
board, or court or any central or state government or local authority or other governmental entity in such jurisdictions.

 

1.4
“Approval” shall mean all approvals from the relevant Regulatory Authority in a given country necessary to market
and sell a pharmaceutical product in such country, including pricing and reimbursement approvals if required for marketing or
sale of such product in such country.

 

1.5
“Approval Date” shall mean the date on which an Approval is granted by a relevant Regulatory Authority for the
Product.

 

    	 	 -2-	 

     

    

 

1.6
“Award” shall mean the total amount of funding CFF provides to Corbus pursuant to this Agreement, provided that
the Award shall not exceed Twenty-Five Million Dollars ($25 million).

 

1.7
“Budget” shall mean the total amount of monies estimated and agreed to by the Parties for the costs and expenses
of the Phase 2 Clinical Trial as set forth in the Development Plan as shown on Exhibit B, which (a) may be amended from
time to time solely upon the mutual written agreement of the Parties, and (b) shall detail the projected allocation and use of:
the funds to be paid by CFF to Corbus with respect of the Award.

 

1.8
“CFF” shall have the meaning set forth in the preamble of this Agreement.

 

1.9
“CFF Designees” shall have the meaning set forth in Section 2.4.1.

 

1.10
“CFF Indemnitee” shall have the meaning set forth in Section 7.1.

 

1.11
“CFF Patents” shall mean any Patents Controlled by CFF or its Affiliates relating to the Phase 2 Clinical Trial
and directed to a CFF Sole Invention which CFF Patents are set forth on Exhibit C.

 

1.12
“CFF Sole Invention” shall have the meaning set forth in Section 8.1.

 

1.13
“Change of Control” shall mean the consummation of a transaction, whether in a single transaction or in a series
of related and substantially contemporaneous transactions, constituting (i) a merger, share exchange or other reorganization,
(ii) the sale by one or more stockholders of a majority of the voting power of Corbus, or (iii) a sale of all or substantially
all of the assets of Corbus (or that portion of its assets related to the subject matter of this Agreement), in which the stockholders
of Corbus immediately prior to such transaction do not own a majority of the voting power of the acquiring, surviving or successor
entity, as the case may be, provided that a Change of Control shall not include a bona fide financing transaction for the benefit
of Corbus (i.e. in which Corbus raises capital for general working or business purposes) in which voting control of Corbus transfers
to one or more persons who acquire shares of Corbus and the existing Corbus shareholders receive no consideration directly or
indirectly in connection with the transaction.

 

    	 	 -3-	 

     

    

 

1.14
“Commercially Reasonable Efforts” shall mean the level of effort, expertise and resources that is substantially
and materially consistent with industry standards for companies of similar size and financial resources to develop and commercialize
the Product, provided such effort is technically and commercially feasible, devoting the degree of attention and diligence to
such efforts that are substantially and materially consistent with industry standards for a product at a comparable stage of development
with similar market potential, and taking into account, with limitation issues of safety and efficacy, proprietary position, the
regulatory environment, and other relevant scientific and commercial factors for companies of similar size and financial resources.

 

1.15
“Confidential Information” shall have the meaning set forth in Section 5.1.1.

 

1.16
“Controlled” (except in the context of Section 1.1) shall mean the legal authority or right of a Party hereto
to grant a license or sublicense of intellectual property rights to another party, without breaching the terms of any agreement
with a Third Party.

 

1.17
“Corbus Designees” shall have the meaning set forth in Section 2.4.1.

 

1.18
“Corbus Patents” shall mean any Patents Controlled by Corbus or its Affiliates claiming Corbus Development Plan
Technology and directed to a Corbus Sole Invention.

 

1.19
“Corbus Sole Invention” shall have the meaning set forth in Section 8.1.

 

1.20
“Cystic Fibrosis” or “CF” shall mean any one and/or all of the human diseases commonly known
as cystic fibrosis.

 

1.21
“Default” shall have the meaning set forth in Section 9.2.

 

1.22
“Development Plan” shall mean the Development Plan attached hereto in Exhibit A, which shall cover the
work performed under the Agreement until the Development Plan Completion Date.

 

    	 	 -4-	 

     

    

 

1.23
“Development Plan Technology” shall mean all intellectual property, data, technical information, know-how, inventions
(whether or not patented), trade secrets, laboratory notebooks, processes and methods at any time discovered or developed in the
performance of the Development Plan under this Agreement.

 

1.24
“Development Plan Completion Date” shall mean the date on which the last milestone specified in Exhibit B has
been completed.

 

1.25
“Discloser” shall have the meaning set forth in Section 5.1.2.

 

1.26
“Disposition Royalty” shall have the meaning set forth in Section 4.2.3.

 

1.27
“Disposition Transaction” shall have the meaning set forth in Section 4.2.3.

 

1.28
“Dispute” shall have the meaning set forth in Section 11.2.1.

 

1.29
“Dollars” shall have the meaning set forth in Section 3.1.1.

 

1.30
“Effective Date” shall mean the date set forth in the first paragraph of this Agreement.

 

1.31
“FDA” shall mean the United States Food and Drug Administration, or any successor agency having regulatory jurisdiction
over the manufacture, distribution and sale of drugs in the United States, and its territories and possessions.

 

1.32
“Field” shall mean the use of the Product for the treatment or prevention of Cystic Fibrosis, asbestosis, bronchiectasis,
byssinosis, chronic bronchitis/COPD hypersensitivity pneumonitis, pneumoconiosis, primary ciliary dyskinesia, sarcoidosis and
silicosis.

 

1.33
“First Commercial Sale” shall mean the first sale of a Product by Corbus or an Affiliate, licensee, sublicensee,
transferee or successor of Corbus in a country in the Territory following Approval of the Product in that country or, if no such
Approval or similar marketing approval is required, the date upon which a Product is first commercially sold in that country in
an arms-length transaction. For clarity, the supply of a Product as part of a compassionate use or sampling program shall not
constitute a First Commercial Sale.

 

    	 	 -5-	 

     

    

 

1.34
“GAAP” shall mean generally accepted accounting principles consistently applied.

 

1.35
“IND” shall mean the investigational new drug application filed with respect to a Product with the FDA pursuant
to Part 312 of Title 21 of the U.S. Code of Federal Regulations, including any amendments thereto.

 

1.36
“Interest” shall mean the Prime Rate plus five (5) percentage points.

 

1.37
“Joint Invention” shall have the meaning set forth in Section 8.1.

 

1.38
“Joint Patents” shall mean any Patents Controlled by Corbus and CFF or their respective Affiliates claiming Development
Plan Technology and directed to a Joint Invention.

 

1.39
“Losses” shall have the meaning set forth in Section 7.1.

 

1.40
“Major Market” shall mean Canada, Israel, any member country of the European Union, and the United Kingdom (if
it ceases to be a member of the European Union).

 

1.41
“Net Sales” shall mean the gross amounts invoiced for sales or other dispositions of the Product to Third Parties
(excluding, for the avoidance of doubt, any sales to Related Parties for resale), less the following deductions actually incurred,
allowed, paid, accrued or otherwise specifically allocated to sales of Product in the Field and for Non-Field Indications (as
applicable) less: (a) customary trade discounts, including trade, cash and quantity discounts or rebates credits or refunds, actually
allowed or taken; (b) credits or allowances actually granted or made for rejection of or return of previously sold Products in
the Field or Non-Field Products (as applicable), including recalls, or for retroactive price reductions and billing errors or
for stocking allowances; (c) governmental and other rebates (or credits or other equivalents thereof) actually granted to managed
health care organizations, commercial insurance companies, pharmacy benefit managers (or equivalents thereof), distributors, national,
state/provincial, local, and other governments, their agencies and purchasers, and reimbursers, or to trade customers; (d) reasonable
fees paid to wholesalers, distributors, selling agents (excluding sales representatives of the Selling Party), group purchasing
organizations, Third Party payors, other contractees and managed care entities, in each case with respect to the Product in the
Field or Non-Field Indications (as applicable); (e) charges separately invoiced for freight, insurance, transportation, postage
and handling; (f) taxes, custom duties or other governmental charges (including any tax such as a value added or similar tax or
government charge but excluding what is commonly known as income tax) levied on or measured by the billing amount for Products
in the Field or Non-Field Indications (as applicable), as adjusted for rebates and refunds; (g) bad debts or provision for bad
debts deductions actually written off during the applicable accounting period; and (h) any other specifically identifiable amounts
included in the Product’s gross invoice price that should be credited for reasons substantially equivalent to those listed
above; all as determined in accordance with the selling Party’s usual and customary accounting methods, which are in accordance
with GAAP. In no event shall any particular amount identified above be deducted more than once in calculating Net Sales (i.e.,
no “double counting” of deductions).

 

    	 	 -6-	 

     

    

 

In
the case of any sale or other disposal for value, such as barter or counter-trade, of any Product, or part thereof, other than
in an arm’s length transaction exclusively for money, Net Sales shall be calculated as above on the value of the consideration
received.

 

1.42
“Non-Field Product” shall mean any pharmaceutical composition or preparation (in any and all dosage forms) in
final form containing Lenabasum or any derivative thereof that is approved or being developed for a Non-Field Indication. For
clarity, different formulations or dosage strengths of a given Non-Field Product shall be considered the same Non-Field Product
for purposes of this Agreement. In addition, the Parties acknowledge that the same product may be both a Product for use in the
Field and a Non-Field Product (i.e., where such product has more than one indication such that it is for use in the Field and
for Non-Field Indications).

 

    	 	 -7-	 

     

    

 

1.43
“Non-Field Indication” shall mean the treatment or prevention of any disease in humans other than those in the
Field.

 

1.44
“Non-Publishing Party” shall have the meaning set forth in Section 6.

 

1.45
“Party(ies)” shall have the meaning set forth in the preamble of this Agreement.

 

1.46
“Patents” means all existing patents and patent applications and all patent applications hereafter filed, including
any continuation, continuation-in-part, division, provisional, priority, or any substitute applications, any patent issued with
respect to any such patent applications, any reissue, reexamination, renewal or extension (including any supplementary protection
certificate) of any such patent, and any confirmation patent or registration patent or patent of addition based on any such patent,
and all foreign counterparts of any of the foregoing.

 

1.47
“Person” means any individual, corporation, partnership, association, joint-stock company, trust, unincorporated
organization or government or political subdivision thereof.

 

1.48
“Phase 2 Clinical Trial” shall mean a multicenter, randomized, double blind, placebo-controlled Phase 2
clinical trial to evaluate the efficacy and safety of Lenabasum in the treatment of cystic fibrosis which shall be conducted pursuant
to the Development Plan.

 

1.49
“Prime Rate” shall mean the average prime rate published in the Wall Street Journal during the relevant
period (calculated by dividing (a) the sum of the prime rates for each of the days during the relevant period, by (b) the number
of days in the relevant period).

 

1.50
“Prior Agreement” shall mean the agreement of April 9, 2015 entered into by the Parties.

 

1.51
“Product” means Lenabasum in any form, dosage or preparation in finished form, and any derivative thereof.

 

    	 	 -8-	 

     

    

 

1.52
“Project Advisory Group” or “PAG” shall have the meaning set forth in Section 2.4.1.

 

1.53
“Publishing Party” shall have the meaning set forth in Article VI.

 

1.54
“Recipient” shall have the meaning set forth in Section 5.1.2.

 

1.55
“Recipient Notice Requirement” shall have the meaning set forth in Section 5.1.3.

 

1.56
“Regulatory Authority” shall mean any country, federal, supranational, state or local regulatory agency, department,
bureau or other governmental or regulatory authority having the administrative authority to regulate the development or marketing
of pharmaceutical products in any country or other jurisdiction.

 

1.57
“Results” shall have the meaning set forth in Article VI.

 

1.58
“Securities Regulatory Authority” shall have the meaning set forth in Section 5.1.3.

 

1.59
“Share Election” shall have the meaning set forth in Section 4.2.1.

 

1.60
“Territory” shall mean worldwide.

 

1.61
“Third Party” shall mean any Person which is not a Party or an Affiliate of any Party to this Agreement.

 

1.62
“Trading Day” shall mean any day in which the stock exchange on which Corbus shares are regularly traded is open.

 

    	 	 -9-	 

     

    

 

ARTICLE
II – DEVELOPMENT PLAN

 

2.1
Commencement; Objective. The objective of the Phase 2 Clinical Trial will be to establish clinical proof of principal and
to obtain sufficient information of the Product’s safety and efficacy in the Field to permit the design of further clinical
studies and that would satisfy the requirements of 21 CFR 312.21(b). Corbus shall be solely responsible for the conduct of the
Phase 2 Clinical Trial as set forth in the Development Plan. CFF shall provide the financial support hereinafter specified, consultation
and advice as provided herein through its participation on the PAG as provided below.

 

2.2
Duration of the Development Plan. The Development Plan shall commence on the Effective Date and shall conclude on the Development
Plan Completion Date, unless extended by mutual agreement of the Parties, or unless earlier terminated in accordance with the
provisions of Article IX hereof.

 

2.3
Development Diligence.

 

2.3.1
Generally. Corbus shall use Commercially Reasonable Efforts to conduct the Phase 2 Clinical Trial pursuant to the Development
Plan. In furtherance of the foregoing, and in accordance with the terms and conditions of this Agreement (including, without limitation,
Section 2.3.2 below), Corbus shall commit (i) the level of staffing required by the Development Plan, with such staff that possess
the necessary experience, training and scientific expertise in order for Corbus to fulfill its obligations hereunder, and (ii)
the infrastructure (e.g., laboratories, offices, equipment and facilities) required by the Development Plan.

 

2.3.2
Obligations of Corbus. Subject to the terms and conditions of this Agreement, and without limiting the generality of Section
2.3.1 above, Corbus shall be solely responsible for the sponsorship, conduct and oversight of the Phase 2 Clinical Trial as set
forth in the Development Plan, which such responsibilities shall include, without limitation, utilizing Commercially Reasonable
Efforts to perform its obligations hereunder and complete the Phase 2 Clinical Trial in a timely fashion so as to enable the possibility
of further development and commercialization of the Product in the Field in accordance with Section 4.1; and responding to all
reasonable requests and inquiries of CFF for information in possession of Corbus regarding any of the subject matter hereof.

 

    	 	 -10-	 

     

    

 

2.4
Project Advisory Group.

 

2.4.1
Composition and Purposes. During the term of the Development Plan, a Program Advisory Group (“PAG”)
shall facilitate communication between the Parties, and make recommendations, with respect to the Development Plan. The PAG shall
consist of four (4) members, two (2) of whom shall be designated by Corbus (the “Corbus Designees”), and two
(2) of whom shall be designated by CFF (the “CFF Designees”). Each Party (i) shall select a Program Coordinator
from among its designees to the PAG (who may be changed at any time or from time to time by such Party), and (ii) may change any
of its designees to the PAG at any time or from time to time. The Program Coordinator of Corbus shall serve as the Chairperson
of the PAG.

 

Without
limiting the generality of the foregoing, the PAG shall:

 

(a)
consider, review, reevaluate and discuss the Development Plan, evaluate any proposed revisions or modifications by either Party
to the Development Plan, and give its recommendations regarding any proposed amendments to the Development Plan;

 

(b)
monitor the progress of the Development Plan, and make recommendations to Corbus’s team as needed on next steps to implement
the Development Plan; and

 

(c)
determine that the Award has been used as set forth in the Development Plan.

 

The
PAG shall terminate on the First Commercial Sale of a Product in the Field or in the event Corbus determines to discontinue development
of the Product for use in the Field.

 

    	 	 -11-	 

     

    

 

2.4.2
Meetings. The PAG shall meet no less frequently than once in each three (3) month period; provided, however,
that the PAG may meet more or less frequently upon mutual agreement of the Program Coordinators. The first meeting of the PAG
shall be held within ninety (90) days of the Effective Date. Meetings of the PAG shall be held at such times and locations as
may be mutually agreed by the Program Coordinators, which times and locations shall be communicated in writing (including, without
limitation, by email) to the other members of the PAG with reasonable advance notice of the meeting. At least one (1) Corbus Designee
and one (1) CFF Designee shall be required to participate in a meeting for such meeting to be deemed a quorum. So long as a quorum
is present at a meeting, the PAG may make, or decide to make, recommendations to Corbus, or take, or decide to take, such actions
as are within the scope of the PAG’s authority hereunder. Members of the PAG may attend each meeting either in person or
by means of telephone or other telecommunications device that allows all participants to hear and speak at such meeting simultaneously.
At least ten (10) business days prior to each meeting, Corbus shall deliver (including by email) to CFF a written report detailing
the progress made on the Development Plan since the last meeting of the PAG. Within twenty (20) days after the date of each meeting,
the Corbus Designees shall prepare and deliver (including by email) to the CFF Designees written minutes of such meeting setting
forth in detail all discussions and/or recommendations of the PAG made at such meeting, which such minutes shall be subject to
the prior approval of CFF’s Program Coordinator.

 

2.4.3
Discussions/Recommendations. As a general matter, and except as otherwise provided for herein, the PAG shall discuss the
items set forth in Section 2.4.1, make unanimous, non-binding recommendations to Corbus as a result of such discussions, and facilitate
communication between the Parties with respect to the Development Plan.

 

2.4.4
Expenses. Each Party shall pay its own expenses (including travel and lodging expenses) incurred in connection with its
participation on the PAG.

 

2.5
Delivery of Information to the PAG. Corbus shall deliver to each PAG member such information and other data as soon as practicable
following its availability as is necessary to facilitate mutual understanding of the status of, and developments relating to,
the Development Plan.

 

    	 	 -12-	 

     

    

 

ARTICLE
III – AWARD PAYMENTS; RECORDS

 

3.1.1
Award Grant and Payments. In accordance with the terms, and subject to the conditions, set forth in this Agreement, CFF
hereby grants the Award to Corbus and Corbus accepts such Award. Corbus shall send invoices in United States Dollars (“Dollars”)
to CFF for payment of the Award in accordance with the milestones set forth in Exhibit B. CFF shall pay amounts invoiced
by Corbus within [*] days of the receipt of the invoice for amounts expended in accordance with the Budget and milestone schedule.
Except as expressly provided in Sections 4.2.1 (a) and (b), all payments to be made hereunder (including, without limitation,
pursuant to Article IV) shall be made in Dollars and, at the option and direction of the receiving party, shall be made by cashier’s
or certified check or by wire transfer of immediately available funds.

 

3.1.2
Limitations. Notwithstanding Section 3.1.1 above or any contrary provision contained herein, CFF shall not be required
to make any payment or additional payment in respect of the Award:

 

(a)
To the extent amounts paid hereunder would exceed of Twenty-Five Million Dollars ($25 million);

 

(b)
unless at the time such payment is due, the Development Plan is in material compliance with all Applicable Laws;

 

(c)
upon the occurrence and/or during the continuance of any uncured default and/or any material breach by Corbus of any of its covenants
or obligations under this Agreement (including, without limitation, Corbus’s obligations under Sections 3.1.3 and 3.1.4
below);

 

    	 	 -13-	 

     

    

 

(d)
if a case or proceeding (i) under the bankruptcy laws of the United States, or relevant non-U.S. law, now or hereafter in effect
is filed against Corbus or all or substantially all of its assets and such petition or application is not dismissed within sixty
(60) days after the date of its filing or Corbus shall file any answer admitting and not contesting such petition, or (ii) under
the bankruptcy laws of the United States, or relevant non-U.S. law, now or hereafter in effect or under any insolvency, reorganization,
receivership, dissolution or liquidation law or statute of any jurisdiction now or hereafter in effect (whether at law or equity)
is filed by Corbus for all or substantially all of its assets; and/or

 

(e)
if this Agreement is terminated by either Party in accordance with Article IX.

 

3.1.3
Budget. Corbus hereby covenants and agrees to use the Award funds provided by CFF to Corbus hereunder to fund the Phase
2 Clinical Trial in accordance with the Budget (including, without limitation, making applicable payments to subcontractors and
vendors) and Development.

 

3.1.4
Competition. Corbus hereby agrees and acknowledges that nothing contained herein shall restrict or prevent CFF’s
ability to provide funding to, or take any other action with respect to, any Person that competes with a Product, the business,
operations, and/or Development Plan of Corbus; and Corbus hereby waives any claim against CFF with respect to any such competing
activities; provided, however, that CFF shall use Corbus Confidential Information only in accordance with the provisions of this
Agreement, and Corbus does not waive any claims relating to use or misuse of Corbus Confidential Information not in accordance
with this Agreement.

 

    	 	 -14-	 

     

    

 

3.2
Records; Reporting Obligations; Audits.

 

3.2.1
Records. Corbus shall prepare and maintain complete and accurate books and records in connection with the Development Plan
in accordance with GAAP (including financial records of expenditures under the Award) and the development and commercialization
of any Product, and shall keep all such books and records in a manner that is consistent with its document retention policy. CFF
shall have the right to inspect such books and records at the offices of Corbus during normal business hours.

 

3.2.2
Response to Inquiries. Corbus personnel (including, without limitation, licensees, sublicensees, transferees, successors
and subcontractors) shall be available to discuss (whether in person or via telephone) with CFF the books and records and/or reports
delivered by Corbus to CFF at such time or times as CFF may reasonably request.

 

3.2.3
Audit. At the request of CFF, from time to time prior to the first anniversary of the Development Plan Completion Date,
Corbus shall permit agents of an independent, certified public accounting firm appointed by CFF, upon reasonable notice, but not
more often than once a year, to audit and examine such books and records of Corbus as may be necessary for verifying Corbus’s
compliance with the terms and conditions hereunder. Any and all records audited and examined by agents of such accounting firm
shall be deemed Corbus’s Confidential Information. CFF shall pay the costs of such audit and examination of the books and
records of Corbus, provided, however, that, if such audit and examination reveal a material breach
of this Agreement or a material discrepancy with respect to other information previously provided by Corbus to CFF, then the costs
of such audit and examination shall be borne by Corbus and Corbus shall reimburse CFF for all of the costs and expenses incurred
by CFF in connection with such audit and examination.

 

    	 	 -15-	 

     

    

 

3.2.4
Reports; Notices. Corbus shall furnish to CFF the following reports and/or notices:

 

(a)
As soon as practicable, and in any event within sixty (60) days after the end of each calendar quarter (including the calendar
quarter ending December 31), financial reports which describe the use of the Award funds (including, without limitation, a detailed
breakdown of the actual costs of the Development Plan and how such Award funds have been allocated and in fact used in respect
of the Development Plan), the progress made toward achieving the purposes of the Development Plan, and the development of any
Product, and any other information in possession of Corbus that CFF reasonably requests.

 

(b)
As soon as practicable after the Development Plan Completion Date, a closing report customary for a Development Plan at such stage
of development which shall (i) be prepared by Corbus or a Corbus-approved Third Party, (ii) be reasonably satisfactory to CFF,
and (iii) set forth Corbus’s final analysis, summary tables, data listings, results and conclusions from the Development
Plan and such other information and materials as CFF may reasonably request.

 

(c)
As soon as practicable, and in any event within sixty (60) days after January 1 and June 1 of each fiscal year following the Development
Plan Completion Date, progress reports and status updates on Corbus’s activities with respect to the Development Plan Technology
and/or a Product including, without limitation, the development and/or commercialization of any Products, Corbus’s compliance
with the terms of this Agreement, and any other information that CFF reasonably requests. Corbus shall include the requirements
of this Section 3.2.4(c) in any agreements with sublicensees relating to the development and/or commercialization of any Products.

 

    	 	 -16-	 

     

    

 

ARTICLE
IV – COMMERCIALIZATION; ROYALTIES

 

4.1
Development and Commercialization of a Product

 

4.1.1
Development and Commercialization of a Product. Corbus shall use Commercially Reasonable Efforts to develop and commercialize
the Product in the United States and in one of the other Major Markets; provided however that nothing contained herein shall require
Corbus to initiate any other clinical trials (other than the Phase 2 Clinical Trial described herein) for the Product in the Field.

 

4.1.2
Commercialization of Product. Corbus and/or its Affiliates, licensees, sublicensees, transferees and successors shall have
the exclusive rights to develop, commercialize, market, sell and distribute any or all Products throughout the Territory.

 

4.2
Royalties. Corbus shall make the following payments to CFF:

 

4.2.1
Approval Royalties. Corbus shall make the following royalty payments to CFF in the event of the following Approvals:

 

(a)
A royalty payment equal to one and one-half (1.5) times the amount of the Award, such royalty to be paid by Corbus to CFF within
sixty (60) days of the first Approval of the Product in the United States; and

 

(b)
A royalty payment equal to one and one-half (1.5) times the amount of the Award such royalty to be paid by Corbus to CFF within
sixty (60) days of the first Approval of the Product in a Major Market.

 

    	 	 -17-	 

     

    

 

The
first milestone payment due under Section 4.2.1(a) or (b), as the case may be, may be made in cash or, at Corbus’s election,
made by notice to CFF within ten (10) days after such Approval, in Corbus shares (the “Share Election”), provided,
however, that the Share Election shall no longer be applicable after a Change of Control. If Corbus makes the Share Election:
(i) such payment shall be made to the extent available in registered Corbus common shares that can be sold by CFF on the stock
exchange on which Corbus is customarily traded immediately following such transfer of shares to CFF or (ii) if such registered
shares are not available, Corbus shall register such shares within sixty (60) days of the Share Election. The Corbus shares transferred
to CFF as a result of the Share Election shall be determined in accordance with the following sentence to be of equal value to
the cash payment otherwise due. If Corbus makes the Share Election, the number of shares transferred to CFF shall be determined
by (A) dividing an amount equal to 1.5 times the Award by (B) the average share price of Corbus shares determined by adding the
closing prices of Corbus shares on each of the five (5) Trading Days prior to the relevant Approval plus the closing prices of
Corbus shares on the Approval date and each of the four (4) Trading Days thereafter, and dividing such sum by ten 10; provided
that, if the Approval date is not a Trading Day, the fifth (5th) Trading Day after the Approval date shall be used
for purposes of the foregoing calculation; and further provided, if Corbus must register the Shares after the Share Election,
and if the shares on the effective date of their registration have a lower market value on the date such shares are registered
than the average price calculated in accordance with (B) above, Corbus shall transfer such additional registered shares to CFF
on the effective date of such registration as are necessary to provide CFF with a payment equal to such average.

 

4.2.2
Royalty on Net Sales. Corbus shall pay to CFF:

 

(a)
A royalty equal to two and one-half percent (2.5%) of Net Sales of the Product in the Field within sixty (60) days after any quarter
in which such Net Sales occur; and

 

(b)
A royalty equal to one percent (1.0%) of the Net Sales of Non-Field Products within sixty (60) days after any quarter in which
such Net Sales occur.

 

    	 	 -18-	 

     

    

 

4.2.3
Disposition Payment. A royalty equal to ten percent (10%) of any amount Corbus and its shareholders receive in connection
with the license, sale, or other transfer to a Third Party of the Product and/or Development Plan Technology (a “Disposition
Royalty”) and a Change of Control (collectively, a “Disposition Transaction”), whether such amounts
are received by Corbus upfront, in subsequent milestone payments, or other payment prior to the First Commercial Sale, provided,
however, that the Disposition Royalty shall not exceed five (5) times the amount of the Award, and shall be credited against
the royalties on Net Sales otherwise due under Section 4.2.2 until the full amount of the Disposition Payment has been offset
against such royalties . The Disposition Payment[s] shall be made to CFF with sixty (60) days after Corbus receives any amount
attributable to a Disposition Transaction. Corbus shall notify CFF promptly of any Disposition Transaction.

 

4.3
Warrants. In addition to the royalties specified in Section 4.2, Corbus Pharmaceuticals Holdings, Inc. hereby awards to CFF
warrants entitling CFF upon exercise to one-million (1,000,000) Corbus common shares. Such warrants shall be subject to the terms
specified in Exhibit D to this Agreement.

 

4.4
Sales Reports.

 

4.4.1
Reports. Commencing upon Approval of a Product and ending upon the last payment of all royalties under Section 4.2.2, within
sixty (60) days after the end of each quarter, Corbus shall furnish or cause to be furnished to CFF a written sales report or
reports covering the relevant period setting forth in detail the Net Sales of Product during such period divided into sales inside
the Field and for Non-Field Indications. With respect to sales of Products invoiced in Dollars, the Net Sales amounts and the
amounts due to CFF hereunder shall be expressed in Dollars. With respect to sales of Products invoiced in a currency other than
Dollars, the Net Sales and amounts due to CFF hereunder shall be expressed in the domestic currency of the party making the sale,
together with the Dollar equivalent of the amount payable to CFF, calculated by translating foreign currency sales into Dollars
in accordance with Corbus’s accounting policies. If any licensee or sublicensee makes any sales invoiced in a currency other
than its domestic currency, the Net Sales shall be converted to its domestic currency in accordance with the licensee’s
or sublicensee’s normal accounting principles. Corbus shall keep accurate records in sufficient detail to enable the amounts
due hereunder to be determined and to be verified by CFF.

 

    	 	 -19-	 

     

    

 

4.4.2
Independent Accountant. Upon the written request of CFF, at CFF’s expense and not more than one time in the twelve
(12) month period following the receipt by CFF of the report required under Section 4.4.1, Corbus shall permit an independent
accountant selected by CFF to have access during normal business hours to those records of Corbus as may be reasonably necessary
to verify the accuracy of the report furnished by Corbus pursuant to this Section 4.4. CFF shall pay the cost of any such examination,
provided, however, that if such examination determines that actual Net Sales were five percent (5%) or greater than
the amount reported by Corbus to CFF, in addition to promptly paying CFF for any additional royalty then due, Corbus shall reimburse
CFF for its reasonable and documented expenses associated with such examination.

 

4.4.3
Interest. In case of any delay in payment by Corbus to CFF not occasioned by force majeure in accordance with Section 11.4,
Interest shall be calculated from the tenth (10th) day after the date upon which the applicable payment first becomes
due from Corbus.

 

4.5
Transferee Liability. In the event of a license, sale or other transfer of the Product and/or Development Plan Technology,
Corbus shall cause the licensee, buyer or other transferee to agree to be jointly and severally liable with Corbus for the royalties
specified in Section 4.1 and 4.2, and failing that, such license, sale or other transfer shall be null and void.

 

    	 	 -20-	 

     

    

 

ARTICLE
V – CONFIDENTIALITY

 

5.1
Confidentiality.

 

5.1.1
Definition of Confidential Information. For purposes of this Agreement, “Confidential Information” shall
mean all information Recipient received from the Discloser in connection with this Agreement, including (a) the financial terms
of this Agreement and any other terms of this Agreement that a Party believes disclosure of which would be harmful to it, and
(b) any other trade secrets, confidential or proprietary information, or any other knowledge, information, data, reports, documents
or materials, owned, developed or possessed by Discloser(as defined below) whether in tangible or intangible form, the confidentiality
of which Discloser takes reasonable measures to protect. “Confidential Information” shall not, however, include
any information of Discloser that: (a) is already known to Recipient (as defined below) at the time of its disclosure; (b) becomes
publicly known through no wrongful act of Recipient; (c) is received from a Third Party free to disclose it to Recipient and without
any obligations to Discloser to keep confidential; (d) is independently developed by Recipient without use of the Confidential
Information; or (e) is communicated to a Third Party without confidentiality requirements with express written consent of Discloser.

 

5.1.2
Non-Disclosure. During the term of this Agreement and for a period of five (5) years thereafter, each Party (“Recipient”)
shall hold all Confidential Information it receives or received from the other Party (“Discloser”) in strict
confidence, and, other than as provided herein or without first obtaining the prior written consent of Discloser, Recipient shall
not disclose any Confidential Information of Discloser to any Person, except to directors, officers, employees, consultants, committee
members, volunteers, contractors, subcontractors, licensees, sublicensees, accountants or counsel of Recipient who have a need
to know, who are subject to terms of confidentiality that are no less stringent than such confidentiality terms under this Agreement
and who have been informed of the confidential nature of the information. Recipient shall use not less than a reasonable degree
of care to protect such Confidential Information of Discloser.

 

    	 	 -21-	 

     

    

 

5.1.3
Required Disclosure. Notwithstanding Section 5.1.2 above, Recipient’s disclosure of Confidential Information shall
not be prohibited if such disclosure is required by a legally binding requirement; provided, however, that, Recipient
shall have first given prompt notice to Discloser of any possible requirement and Discloser shall have been afforded a reasonable
opportunity to prevent or limit such disclosure (the “Recipient Notice Requirement”); provided, further,
that the Recipient Notice Requirement shall not apply to proceedings which, by applicable law, are of a nature that the existence
of such proceedings may not be disclosed or made public in which case Recipient shall take all legally available measures to minimize
or avoid the public disclosure of Discloser Confidential Information. In the event that Recipient discloses any Discloser Confidential
Information pursuant to the immediately preceding sentence, Recipient shall cooperate with Discloser, at Discloser’s sole
cost and expense, in the prosecution of any appeal that Discloser decides to pursue. For any disclosures of this Agreement required
by the Securities and Exchange Commission or other body regulating Corbus’s or its Affiliates’ securities (“Securities
Regulatory Authority”), Corbus shall exercise good faith efforts to give confidential treatment of the information described
in Section 5.1.1, and Corbus shall provide CFF with contemporaneous copies of the requests for confidential treatment filed with
such Securities Regulatory Authority.

 

5.1.4
No Use of Confidential Information. Recipient hereby agrees and acknowledges that, other than as provided herein or without
first obtaining Discloser’s prior written consent, Recipient shall not use any of Discloser’s Confidential Information.

 

    	 	 -22-	 

     

    

 

5.2
Publicity; Use of Name.

 

5.2.1
Mutual Agreement. The Parties shall mutually agree upon the timing and content of any initial press release or other public
announcement relating to this Agreement and the transactions contemplated herein.

 

5.2.2
Prior Written Consent. Except to the extent already disclosed in the initial press release or other public announcement
referenced in Section 5.2.1 above, and except as may be otherwise provided herein, neither Party shall issue any press release
or make any public announcement concerning the terms of this Agreement or the transactions described herein without the prior
written consent of the other Party, which such consent shall not be unreasonably withheld, conditioned or delayed; provided,
however, that it shall not be unreasonable for any Party to withhold consent with respect to any press release or public
announcement containing any of such Party’s Confidential Information; and, provided, further, that this Section
5.2.2 shall not preclude any Party from issuing any such press release or making any such public announcement if such Party reasonably
believes that any such release or announcement is (a) legally required by Applicable Laws, or (b) required by the rules of any
stock exchange on which such Party’s (or such Party’s Affiliates’) securities are listed.

 

5.2.3
Advanced Written Copy. In each instance, the Party desiring to issue any press release or to make any public announcement
shall provide the other Party with a written copy of the proposed release or announcement in sufficient time prior to public release
to allow such other Party to comment upon such release or announcement prior to its public release. In addition, each press release
and/or public announcement issued or made pursuant to this Section 5.2 shall include CFF-approved language acknowledging CFF’s
funding of the Development Plan.

 

5.2.4
Trademark and Logos. Except as may be otherwise provided herein, neither Party shall have any right, express or implied,
to use in any manner the name or other designation of the other Party or any other trade name, trademark or logos of the other
Party for any purpose.

 

    	 	 -23-	 

     

    

 

5.2.5
Permitted Use of Name and Logo. Notwithstanding the foregoing or any contrary provision contained herein, in connection
with: (a) any description by CFF of its portfolio and of its industry discovery and Development Plan, and/or (b) CFF’s fundraising
activities, marketing materials and/or reporting requirements, CFF shall be entitled to use and/or disclose, and Corbus hereby
pre-approves CFF’s use and/or disclosure of: (i) the mark “Corbus,” Corbus’s logo and a general description
of Corbus, (ii) the existence and a general description of the nature of this Agreement (excluding financial terms), and (iii)
a general description of the nature of the Development Plan consistent with the confidentiality terms herein; provided, however,
CFF shall properly use any and all Corbus trademarks in a manner so as to not diminish its goodwill. Notwithstanding the foregoing
or any contrary provision contained herein, in connection with: any description by Corbus or its Affiliates of its portfolio and
of its industry discovery and Development Plan, Corbus shall be entitled to use and/or disclose, and CFF hereby pre-approves Corbus’s
use and/or disclosure of: (i) a general description of CFF, (ii) the existence and a general description of the nature of this
Agreement (excluding financial terms), and (iii) a general description of the nature of the Development Plan consistent with the
confidentiality terms herein.

 

ARTICLE
VI – PUBLICATION

 

The
Parties shall publish the Results of the Phase 2 Clinical Trial at the earliest opportunity that is consistent with the protection
of the confidentiality of Development Plan Technology. Corbus reserves the first right to publish or publicly present the data
generated during the performance of, or as a result of, the Development Plan (the “Results”), subject to the
following terms and conditions. To the extent Corbus decides not to publish or publicly present the Results, Corbus shall in its
sole discretion allow CFF to publish or publicly present such Results in accordance with this Article VI, and such consent will
be binding if, and only if, provided in writing in accordance with the notice provisions contained herein. The Party proposing
to publish or publicly present the Results (the “Publishing Party”) will submit a draft of any proposed manuscript,
speech, poster or other disclosure to the other Party (the “Non-Publishing Party”) for comments at least sixty
(60) days prior to submission for publication or oral presentation. The Non-Publishing Party shall notify the Publishing Party
in writing within thirty (30) days of receipt of such draft with its comments, which shall be reasonably incorporated by the Publishing
Party. The comments of the Non-Publishing Party shall include but not be limited to whether such draft contains (a) information
of the Non-Publishing Party which it considers to be Confidential Information under the provisions of Article V hereof, (b) information
that if published would have an adverse effect on a Patent which the Non-Publishing Party intends to file or has filed, or (c)
information, including but not limited to chemical structures of a Product, which the Non-Publishing Party reasonably believes
would be likely to have a material adverse impact on the development or commercialization of a Product. In any such notification,
the Non-Publishing Party shall indicate with specificity its suggestions regarding the manner and degree to which the Publishing
Party may disclose such information. In the case of item (a) above, no Party shall publish the Confidential Information of the
other Party without the prior written consent of such other Party in violation of Article V of this Agreement. In the case of
item (b) above, the Non-Publishing Party may request a delay and the Publishing Party shall delay such publication, for a period
not exceeding an additional ninety (90) days, to permit the timely preparation and filing of a patent application or an application
for a certificate of invention on the information involved. In the case of item (c) above, if the Publishing Party shall disagree
with the Non-Publishing Party’s assessment of the impact of the publication, then the issue shall be referred to the Program
Coordinator of each Party who shall attempt in good faith to reach a fair and equitable resolution of this disagreement. If the
disagreement is not resolved in this manner within fourteen (14) days of referral to the respective Program Coordinators, then
the decision of publication shall be subject to the Dispute Resolution provisions at Section 11.2, subject always to the confidentiality
provisions of Article V hereof. The Parties agree that authorship of any publication will be determined based on the customary
standards then being applied in the relevant scientific journal.

 

Corbus
shall acknowledge the financial support of CFF in all Development Plan publications.

 

    	 	 -24-	 

     

    

 

ARTICLE
VII – INDEMNIFICATION AND INSURANCE

 

7.1
Indemnification by Corbus. Corbus shall indemnify, defend and hold harmless CFF, its Affiliates, and their respective directors,
officers, employees and agents (including, without limitation, the CFF Designees) (each, a “CFF Indemnitee”),
from and against any and all claims, suits and demands of Third Parties and losses, liabilities, damages for personal injury,
property damage or otherwise, costs, penalties, fines and expenses (including reasonable fees of attorneys) (collectively, “Losses”)
arising out of or resulting from: (a) the conduct of the Development Plan by Corbus and any breach of, or inaccuracy in, any of
representations or warranties made by Corbus in this Agreement, or any breach or violation of any covenant or agreement of Corbus
in or pursuant to this Agreement; and (b) any claim of infringement or misappropriation of intellectual property with respect
to the Development Plan or any Product. Corbus will have no obligation to indemnify CFF to the extent that the Losses arise out
of or result from, directly or indirectly, any breach of, or inaccuracy in, any representation or warranty made by CFF in this
Agreement, or any breach or violation of any covenant or agreement of CFF in or pursuant to this Agreement, or the negligence
or willful misconduct by or of any of the CFF Indemnitees.

 

7.2
Claims Procedures. Each CFF Indemnitee shall give notice Corbus promptly after receipt by a CFF Indemnitee of notice of the
commencement of any action, suit or proceeding. Subject to Section 7.3, Corbus shall have the right to assume and manage the defense
thereof (with counsel reasonably satisfactory to the CFF Indemnitee), including the right to settle, compromise and/or litigate
with respect to any such claim (but only after obtaining Corbus’s prior written consent with respect to any proposed settlement,
compromise or litigation; provided, however, that Corbus shall not be required to obtain the CFF Indemnitee’s prior written
consent in connection with any proposed settlement, compromise or litigation if, in connection with and following any such settlement,
compromise or litigation, the CFF Indemnitee (a) has no liability (monetary or otherwise), (b) has not waived any of its rights
and has not admitted to any wrongdoing or guilt, (c) is not subject to any injunction or other equitable or non-monetary relief,
and (d) receives a full and unconditional release of all applicable claims and liability).

 

    	 	 -25-	 

     

    

 

7.3
Participation; Assuming Control of the Defense. Notwithstanding Section 7.2 above, CFF may participate in the defense of any
claim at its sole expense, with counsel reasonably acceptable to Corbus; provided, however, if (a) there is a conflict of interest
that would prevent Corbus, on the one hand, and CFF, on the other hand, from being represented by a single law firm in the defense
of such action; in each such instance, or (b) there shall be one or more additional or other defenses available to CFF that are
not available to Corbus, then in each such instance Corbus shall pay the reasonable fees and expenses of one law firm serving
as counsel for CFF, which law firm shall be subject to the prior consent of Corbus, which consent shall not be unreasonably withheld,
conditioned or delayed.

 

7.4
Insurance. Corbus shall maintain at its own expense, with a reputable insurance carrier, coverage for Corbus, its Affiliates,
and their respective employees written on a per occurrence basis commensurate with a reasonable assessment of the risks associated
with the conduct of the Development Plans. Maintenance of such insurance coverage will not relieve Corbus of any responsibility
under this agreement for damages in excess of insurance limits or otherwise. Corbus shall provide CFF with an insurance certificate
from the insurers, brokers or agents evidencing the applicable insurance coverage. At its request, CFF may review Corbus’
insurance coverages no more than one time per year.

 

    	 	 -26-	 

     

    

 

7.5
Limitation of Liability. Neither Party shall be liable to the other Party for any special, indirect, incidental, consequential,
punitive or exemplary damages, including, but not limited to, lost profits, in connection with such Party’s breach of this
Agreement.

 

ARTICLE
VIII – PATENTABLE INVENTIONS

 

8.1
Ownership. All inventions relating to the Development Plan invented, conceived or made and all data and know-how generated
with respect thereto exclusively by Corbus or its Affiliates (directly or through others acting on its behalf) during the term
of this Agreement (a “Corbus Sole Invention”) and all inventions relating to the Development Plan invented,
conceived or made and all data and know-how generated with respect thereto exclusively by CFF or its Affiliates (directly or through
others acting on its behalf) during the term of this Agreement (a “CFF Sole Invention”) shall be solely owned
by the Party conceiving or making the invention or generating the data or know-how claimed. All inventions relating to the Development
Plan invented, conceived or made and all data and know-how generated with respect thereto by both Parties or their respective
Affiliates (directly or through others acting on its behalf) during the term of this Agreement (a “Joint Invention”)
shall be jointly owned by the CFF and Corbus. Inventorship shall be determined in accordance with United States laws of inventorship.

 

8.2
Exclusive License Grant. CFF hereby grants, and agrees to grant to Corbus, the consideration of which is acknowledged, an
exclusive (even as to CFF) fully paid up worldwide license with the right to grant sublicenses to all its rights under the CFF
Patents and Joint Patents for all purposes and to CFF Sole Inventions, Joint Inventions, and all information, methods, data and
know-how that CFF controls and is useful to the Development Plan. CFF acknowledges and agrees that it does not retain any rights
to any Sole Invention or any Joint Invention or any Patents claiming such Inventions for any purpose whatsoever.

 

    	 	 -27-	 

     

    

 

8.3
Preparation. Corbus will control in its sole discretion the preparation, filing, prosecution, maintenance and enforcement
of all Corbus Patents, CFF Sole Inventions, CFF Patents and Joint Patents. CFF will have the right to review, and Corbus will
deliver to CFF, all patent applications related to CFF Sole Inventions and Joint Inventions prior to their filing. Notwithstanding
the foregoing, nothing herein shall obligate Corbus to prepare or file a patent application directed to any Sole Invention or
Joint Invention. CFF agrees to execute any documents of assignment, declaration, or otherwise reasonably necessary for Corbus
to file, prosecute, maintain and enforce the Corbus Patents, CFF Patents and Joint Patents.

 

8.4
Costs. Corbus shall be responsible for all costs incurred in the preparation, prosecution, maintenance and enforcement of
Corbus Patents, CFF Patents, and Joint Patents.

 

8.5
Abandonment. Notwithstanding any contrary provision contained herein, prior to Corbus (or any Affiliate, licensee, sublicensee,
transferee or successor of Corbus) abandoning any Patent or patent application related to any Product (including abandonment for
failure to pay any required fees) for any reason, Corbus shall promptly notify CFF, or cause CFF to be notified, of such pending
abandonment, whereupon CFF shall have the right and opportunity to prosecute or maintain the applicable Patent at CFF’s
own expense. Corbus hereby agrees to exercise its good faith efforts to obtain such consents, on CFF’s behalf, as may be
necessary, advisable and/or appropriate for CFF to exercise its rights under this Section 8.5.

 

8.6
No License. Nothing herein shall be construed as a grant or obligation of grant of any license of any kind or a change of
title from Corbus to CFF or any Third Party under any Patent owned or controlled by Corbus unless explicitly stated herein.

 

    	 	 -28-	 

     

    

 

ARTICLE
IX – TERM AND TERMINATION

 

9.1
Term. This Agreement shall become effective as of the Effective Date and, unless earlier terminated pursuant to the other
provisions of this Article IX, shall terminate at such time as when there are no longer any payment obligations owing from Corbus
to CFF under Article IV hereto.

 

9.2
Termination by CFF For Cause. Notwithstanding any provision contained herein or in any other document to the contrary, CFF
may, without prejudice to any other remedies available to it at law or in equity, terminate this Agreement upon the occurrence
of any of the following events (each, a “Default”) (provided, however, that, in each instance (other than pursuant
to Section 9.2(c)), Corbus shall have thirty (30) days following the earlier of Corbus’s receipt of written notice from
CFF to Corbus of the occurrence of a Default or Corbus becoming aware of such Default to cure such Default):

 

9.2.1
Any material breach or default by Corbus in the performance of any of its material covenants or obligations hereunder;

 

9.2.2
Any representation or warranty made by Corbus in this Agreement is not true in any material respects as of the date made; and/or

 

9.2.3
A case or proceeding (i) under the bankruptcy laws of the United States now or hereafter in effect is filed against Corbus or
all or substantially all of its assets and such petition or application is not dismissed within sixty (60) days after the date
of its filing or Corbus shall file any answer admitting and not contesting such petition, or (ii) under the bankruptcy laws of
the United States now or hereafter in effect or under any insolvency, reorganization, receivership, dissolution or liquidation
law or statute of any jurisdiction now or hereafter in effect (whether at law or equity) is filed by Corbus for all or substantially
all of its assets.

 

    	 	 -29-	 

     

    

 

9.3
Termination for CFF Breach. Corbus may, without prejudice to any other remedies available to it at law or in equity, terminate
this Agreement in the event CFF shall have (a) materially breached or defaulted in the performance of any of its material covenants
or obligations hereunder or (b) any representation or warranty made by CFF in this Agreement is not true in any material respects
as of the date made, and such breach or default shall have continued for thirty (30) days after written notice thereof was provided
to CFF by Corbus.

 

9.4
General Effect of Termination; Survival.

 

9.4.1
Termination or expiration of this Agreement for any reason shall be without prejudice to any rights that shall have accrued to
the benefit of any Party prior to such termination or expiration. Such termination or expiration shall not relieve any Party from
obligations which are expressly indicated to survive termination of this Agreement.

 

9.4.2
If this Agreement is terminated for any reason, all of the Parties’ rights and obligations under, and/or the provisions
contained in Sections 3.2 and 9.4 and Articles IV, V, VI, VII, VIII, X and XI shall survive termination or expiration of this
Agreement.

 

9.4.3
Subject to Section 8.4, upon termination or expiration of this Agreement, Corbus will retain ownership or exclusive rights to
the Corbus Development Plan Technology and the inventions licensed to it by CFF pursuant to Article VIII of this Agreement (including
intellectual property rights).

 

9.5
Prior Agreement. The Parties previously entered into the Prior Agreement. The terms of the Prior Agreement are not intended
to be affected by this Agreement, and whether or not this Agreement is terminated, the Prior Agreement shall remain in full force
and effect.

 

    	 	 -30-	 

     

    

 

ARTICLE
X – REPRESENTATIONS AND WARRANTIES

 

10.1
Representations and Warranties of Corbus. Corbus represents and warrants to CFF that: (i) this Agreement has been duly executed
and delivered by Corbus and constitutes the valid and binding obligation of Corbus, enforceable against Corbus in accordance with
its terms, except as enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium
and other laws relating to or affecting creditors’ rights generally and by general equitable principles; (ii) the execution,
delivery and performance of this Agreement have been duly authorized by all necessary action on the part of Corbus and its directors
and stockholders; (iii) the individual executing this Agreement on behalf of Corbus is duly authorized to do so; and (iv) no provision
contained in this Agreement violates any other agreement to which Corbus is bound or otherwise subject; and (v) without the Award
provided for in this Agreement, the development of the Product for use in the Field either would not be conducted by Corbus or
would be substantially delayed.

 

10.2
Representations and Warranties of CFF. CFF represents and warrants to Corbus that: (a) this Agreement has been duly executed
and delivered by CFF and constitutes the valid and binding obligation of CFF, enforceable against CFF in accordance with its terms,
except as enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium and other
laws relating to or affecting creditors’ rights generally and by general equitable principles; (b) the execution, delivery
and performance of this Agreement have been duly authorized by all necessary action on the part of CFF and its directors; (c)
the individual executing this Agreement on behalf of CFF is duly authorized to do so; and (d) no provision contained in this Agreement
violates any other agreement to which CFF is bound or otherwise subject.

 

ARTICLE
XI – MISCELLANEOUS PROVISIONS

 

11.1
Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Maryland.

 

    	 	 -31-	 

     

    

 

11.2
Dispute Resolution.

 

11.2.1
In the event of any dispute, claim or controversy arising out of, relating to or in any way connected to the interpretation of
any provision of this Agreement, the performance of either Party under this Agreement or any other matter under this Agreement,
including any action in tort, contract or otherwise, at equity or law (a “Dispute”), either Party may at any
time provide the other Party with written notice specifying the nature and terms of such Dispute in reasonable detail. As soon
as practicable after receipt of such notice, the chief executive officers of each of the Parties or their designees shall meet
at a mutually agreed upon time and location for the purpose of resolving such Dispute. Each Party shall engage in good faith discussions
and/or negotiations for a period of up to thirty (30) days to attempt to resolve the Dispute or negotiate an interpretation or
revision of the applicable portion of this Agreement which is mutually agreeable to both Parties without the necessity of formal
dispute resolution procedures relating thereto.

 

11.2.2
In the event that such Dispute is not resolved by the Parties in accordance with subparagraph (a), either Party may pursue the
resolution of such Dispute in a court of competent jurisdiction.

 

11.3
Waiver. No provision of this Agreement may be waived except in writing by both Parties hereto. No failure or delay by either
Party hereto in exercising any right or remedy hereunder or under applicable law will operate as a waiver thereof, or a waiver
of any right or remedy on any subsequent occasion.

 

11.4
Force Majeure. Neither Party will be in breach hereof by reason of its delay in the performance of or failure to perform any
of its obligations hereunder, if that delay or failure is caused by strikes, acts of God or the public enemy, riots, incendiaries,
interference by civil or military authorities, compliance with governmental priorities for materials, or any fault beyond its
reasonable control. In such event Corbus or CFF, as the case may be, shall immediately notify the other Party of such inability
and of the period for which such inability is expected to continue. The Party giving such notice shall thereupon be excused from
such of its obligations under this Agreement as it is thereby disabled from performing for so long as it is so disabled. To the
extent possible, each Party shall use reasonable efforts to minimize the duration of any force majeure.

 

    	 	 -32-	 

     

    

 

11.5
Severability. Should one or more provisions of this Agreement be or become invalid, then the Parties hereto shall attempt
to agree upon valid provisions in substitution for the invalid provisions, which in their economic effect come so close to the
invalid provisions that it can be reasonably assumed that the Parties would have accepted this Agreement with those new provisions.
If the Parties are unable to agree on such valid provisions, the invalidity of such one or more provisions of this Agreement shall
nevertheless not affect the validity of the Agreement as a whole, unless the invalid provisions are of such essential importance
for this Agreement that it may be reasonably presumed that the Parties would not have entered into this Agreement without the
invalid provisions.

 

11.6
Assignment. This Agreement may not be assigned or otherwise transferred by either Party without the prior written consent
of the other Party; provided, however, that either Party may assign this Agreement, without the consent of the other Party, (i)
to any of its Affiliates, if the assigning Party unconditionally guarantees the full performance of its Affiliate’s obligations
hereunder, or (ii) in connection with such Party’s merger, consolidation or transfer, license or sale of all or substantially
all of the assets of such Party to which this Agreement relates, provided, that the successor, surviving entity, purchaser of
assets, transferee, or other similar party, as applicable, expressly assumes in full in writing such Party’s obligations
under this Agreement. Any purported assignment in contravention of this Section 11.6 shall, at the option of the non-assigning
Party, be null and void and of no effect. No assignment shall release either Party from responsibility for the performance of
any accrued obligation of such Party hereunder. This Agreement shall be binding upon and enforceable against the successor to,
or any permitted assignees from, either of the Parties hereto.

 

    	 	 -33-	 

     

    

 

11.7
Counterparts. This Agreement may be executed in duplicate, each of which shall be deemed to be original and both of which
shall constitute one and the same Agreement.

 

11.8
No Agency. Nothing herein contained shall be deemed to create an agency, joint venture, partnership or similar relationship
between CFF and Corbus. Notwithstanding any of the provisions of this Agreement, neither Party to this Agreement shall at any
time enter into, incur, or hold itself out to Third Parties as having authority to enter into or incur, on behalf of the other
Party, any commitment, expense, or liability whatsoever, and all contracts, expenses and liabilities in connection with or relating
to the obligations of each Party under this Agreement shall be made, paid, and undertaken exclusively by such Party on its own
behalf and not as an agent or representative of the other.

 

11.9
Notice. All communications between the Parties with respect to any of the provisions of this Agreement will be sent to the
addresses set out below, or to such other addresses as may be designated by one party to the other by notice pursuant hereto,
by prepaid, certified air mail (which shall be deemed received by the other Party on the seventh (7th) business day
following deposit in the mails), or by facsimile transmission, or other electronic means of communication (which shall be deemed
received when transmitted), with confirmation by first class letter, postage pre-paid, given by the close of business on or before
the next following business day, or by a nationally recognized overnight courier (which shall be deemed received on the date of
delivery):

 

    	 	 -34-	 

     

    

 

	 	if
    to CFF:	 
	 	 	 
	 	Dr.
    Preston Campbell, III	 
	 	President
    and CEO	 
	 	4550
    Montgomery Ave.	 
	 	Suite
    1100N	 
	 	Bethesda,
    Maryland 20814	 
	 	Phone:	 
	 	Fax:	 
	 	E-mail:
    Pcampbell@cff.org	 
	 	 	 
	 	with
    a copy to:	 
	 	 	 
	 	Kenneth
    I. Schaner, Esq.	 
	 	Schaner
    & Lubitz, PLLC	 
	 	4550
    Montgomery Ave.	 
	 	Suite
    1100N	 
	 	Bethesda,
    Maryland 20814	 
	 	Phone:
    240-482-2848	 
	 	Fax:
    202-470-2241	 
	 	E-mail:
    ken@schanerlaw.com	 
	 	 	 
	 	if
    to Corbus:	 
	 	 	 
	 	Yuval
    Cohen, CEO	 
	 	Corbus
    Pharmaceuticals, Inc	 
	 	100
    River Ridge Drive	 
	 	Norwood,
    MA 02062	 
	 	Phone:
    617-963-0100	 
	 	Fax:
    617-663-6085	 
	 	E-mail:
    ycohen@CorbusPharma.com	 
	 	 	 
	 	with
    a copy to:	 
	 	 	 
	 	Lowenstein
    Sandler LLP	 
	 	65
    Livingston Avenue	 
	 	Roseland,
    New Jersey 07068	 
	 	Attn:
    Michael J. Lerner, Esq.	 
	 	Phone:
    973-597-6395	 
	 	E-mail:
    mlerner@lowenstein.com	 

 

    	 	-35-	 

     

    

 

11.10
Headings. The paragraph headings are for convenience only and will not be deemed to affect in any way the language of the
provisions to which they refer.

 

11.11
Entire Agreement. This Agreement contains the entire understanding of the Parties relating to the matters referred to herein,
and may only be amended by a written document, duly executed on behalf of the respective Parties.

 

11.12
No Impairment. Corbus will not, by amendment of its organizational or governing documents, or through reorganization, recapitalization,
consolidation, merger, dissolution, sale, transfer or assignment of assets, issuance of securities, or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms, provisions, covenants or agreements of this Agreement,
but rather will at all times in good faith assist in the carrying out of all such terms, provisions, covenants and agreements
and in the taking of all such actions as may be necessary, advisable or appropriate in order to protect the rights of CFF against
impairment.

 

[Remainder
of page intentionally left blank]

 

    	 	-36-	 

     

    

 

IN
WITNESS WHEREOF, the undersigned have executed this Research, Development and Commercialization Agreement as of the date first
written above.

 

	CYSTIC
    FIBROSIS FOUNDATION	 	CORBUS
    PHARMACEUTICALS, INC.
	 	 	 	 	                            
	By:	/s/
    Preston Campbell	 	By:	/s/
    Yuval Cohen
	 	 	 	 	 
	Name:	Preston
    Campbell	 	Name:	Yuval
    Cohen
	 	 	 	 	 
	Title:	President
    and CEO	 	Title:	CEO

 

    	 	[Signature Page]
	 

     

    

 

Exhibit
A

 

Development
Plan

 

A
Multicenter, Randomized, Double-blind, Placebo-controlled Phase 2

Trial
to Evaluate Efficacy and Safety of Lenabasum in Cystic Fibrosis

 

INVESTIGATIONAL
PRODUCT: Lenabasum

 

INDICATION:
Cystic fibrosis

 

INVESTIGATIONAL
SITES/LOCATIONS: Up to 100 sites in North America, Europe, Israel and Australia are planned

 

OBJECTIVES
AND ENDPOINTS:

 

	 Primary
efficacy
objective
	 	 Primary
endpoint

	 

        To
        evaluate the efficacy
        of lenabasum
        20 mg twice per day
        (BID) compared
        to placebo in the treatment
        of cystic
        fibrosis (CF) by
        assessing
        the rate of pulmonary
        exacerbations
        (PEx)
        using primary definition
        of PEx
	 	 

        Rate
        of PEx using primary
        definition of PEx
        with lenabasum
        20 mg BID, compared
        to placebo, during
        the treatment
        period

 

	 Secondary
efficacy objective
	 	 Secondary
endpoints

	 

        1.
        To evaluate the efficacy of lenabasum 20 mg BID compared to placebo in the treatment of CF by assessing other efficacy
        endpoints
	 	a.
                                         Event rate of PEx using secondary definition of PEx with lenabasum 20 mg BID compared
                                         to placebo

        b.
        Time to first new PEx using primary definition of PEx with lenabasum 20 mg BID compared to placebo

        c.
        Time to first PEx using secondary definition of PEx with lenabasum 20 mg BID compared to placebo

        d.
        Change from baseline in CFQ-R respiratory symptom domain with lenabasum 20 mg BID compared to placebo

        e.
        Change from baseline in FEV1 %

        predicted
        with lenabasum 20 mg BID

        compared
        to placebo

 

    	 	 	 

     

    

 

	2.
                                         To evaluate the efficacy of lenabasum 5 mg BID compared to placebo in the treatment of
                                         CF

         
	 	a.
                                         Rate of pulmonary exacerbations (PEx) using primary definition of PEx with lenabasum
                                         5 mg BID compared to placebo, during the treatment period

        

	 	 	b.
                                         Event rate of PEx using secondary definition of PEx with lenabasum 5 mg BID compared
                                         to placebo

        c.
        Time to first new PEx using primary definition of PEx with lenabasum 5 mg BID compared to placebo

        d.
        Time to first PEx using secondary definition of PEx with lenabasum 5 mg BID compared to placebo

        e.
        Change from baseline in CFQ-R respiratory symptom domain with lenabasum 5 mg BID compared to placebo

        f.
        Change from baseline in FEV1 % predicted with lenabasum 5 mg BID compared to placebo

        

        

 

	Tertiary
                                         efficacy objective
	 	Tertiary
                                         endpoints

	 

        [*]
	 	 

        a.     [*]

        b.     [*]

        c.     [*]

        d.     [*]

        e.     [*]

        f.      [*]

        g.     [*]

 

    	 	 	 

     

    

 

	Pharmacokinetic
    (PK) objectives 	 	PK
    endpoints
	 

        [*]
	 	 

        [*]

	 

        [*]
	 	 

        [*]

	 

        [*]
	 	 

        [*]

	 

        [*]

         
	 	 

        [*]

 

    	 	 	 

     

    

 

	Safety
                                         objectives 

        
	 	Safety
                                         endpoints 

        

	To
                                         evaluate safety of lenabasum 20 mg BID and lenabasum 5 mg BID treatment and placebo treatment

        
	 	●
                                         TEAEs

         

        ●
        Changes in vital signs, physical examination, blood and urine laboratory safety tests and electrocardiograms

        

	 	 	 
	To
                                         evaluate tolerability of lenabasum 20 mg BID and lenabasum 5 mg BID treatment
	 	Treatment
                                         discontinuations with lenabasum treatments compared to placebo

        

 

    	 	 	 

     

    

 

STUDY
DESIGN:

 

This
is a multicenter, double-blind, randomized, placebo-controlled, parallel group trial of efficacy and safety of treatment of CF
subjects with lenabasum 20 mg BID and lenabasum 5 mg BID.

 

This
trial includes analyses of event rate of and time to PEx. In this study, primary definition of PEx is based on the physician decision
to treat with oral, intravenous or inhaled antibiotic(s) in the presence of at least 4/12 Fuch’s criteria. [*].

 

The
target population is males and females with CF ≥ 12 years of age with FEV1 ≥ 40% predicted and < 100% predicted in
12 months before screening. The target population will be enriched for subjects with increased risk of a new PEx [*].
Subjects must have 2 or 3 new PEx treated with intravenous (IV) antibiotics in the 12 months before screening. Alternatively,
if the subject had only 1 new PEx treated with IV antibiotics in the last 12 months, then that subject must have ≥ 1 other
new PEx treated with oral antibiotics in the last 12 months before screening; [*].

 

See
Table 1 below for the eligibility criterion by number of new PEx in the 12 months before screening.

 

Table
1 Eligibility by Number of New PEx in 12 Months before Screening

 

	New
                                         PEx treated with

                                                                                intravenous
                                         antibiotics, N
	 	New
                                         PEx treated with oral

                                                                                antibiotics,
                                         N
	 	 

        Eligible
        by PEx criteria

	2
    or 3	 	No
    requirement	 	Yes
	1	 	≥
    1	 	Yes
	0,
    > 3	 	Not
    applicable	 	No

 

[*]
subjects will be screened to identify a target of 415 eligible subjects. [*].

 

Subjects
will be randomized centrally to treatment assignment before dosing in a 2:1:2 ratio to 1 of 3 treatment cohorts:

 

1.
Cohort 1: Lenabasum 20 mg BID, n = 166

 

2.
Cohort 2: Lenabasum 5 mg BID, n = 83

 

3.
Cohort 3: Placebo BID, n = 166.

 

[*].

 

    	 	 	 

     

    

 

Duration
and Visits

 

[*].
Active dosing with study drug is 28 weeks. [*].

 

[*]
they will return 4 weeks after the last dose of study drug [*].

 

[*].

 

[*].

 

Efficacy
Assessments

 

	●	[*]
	 	 
	●	[*]
	 	 
	●	[*]
	 	
	●	[*]
	 	
	●	CFQ-R
    questionnaire at screening, [*]
	 	 
	●	[*]
	 	 
	●	[*]

 

Safety
Assessments

 

	●	[*]
	 	 
	●	[*]
	 	 
	●	[*]
	 	
	●	[*]
	 	 
	●	[*]

 

    	 	 	 

     

    

 

STUDY
SCHEMATIC

 

[*]

 

SUBJECTS
(PLANNED): 415 subjects

 

PATIENT
POPULATION:

 

Target
population for this study is subjects ≥ 12 years of age with known diagnosis of CF, with history of prior PEx in the last 12
months, [*].

 

STUDY
PRODUCTS, DOSE AND MODE OF ADMINISTRATION

 

Study
drugs are [*] of lenabasum 20 mg, lenabasum 5 mg and placebo.

 

	●	Lenabasum:
    The preparation of lenabasum that will be used in this study is [*]
	 	 
	●	Placebo:
    [*]

 

Lenabasum
and placebo capsules are identical in terms of appearance. Both are packaged in the same type container closures with the same
number of capsules.

 

[*].

 

DURATION
OF TREATMENT: 28 weeks

 

DISCONTINUATION
FROM TREATMENT: 

 

Removal
of Subjects from Therapy or Assessments:

 

An
individual subject will have study drug permanently discontinued if any of the following occur in the subject in question:

 

	●	Withdrawal
    of consent
	 	 
	●	Pregnancy

 

    	 	 	 

     

    

 

	●	Any
    serious TEAE probably or definitely-related to lenabasum
	 	 
	●	Any
    life-threatening AE.

 

[*].

 

Premature
Termination or Suspension of the Study:

 

This
study may be suspended or prematurely terminated if there is sufficient reasonable cause. If any of the following events occur
in a subject during enrollment, study entry and randomization of new subjects into the study will be suspended until review of
the event in question occurs by the Data Monitoring Committee (DMC):

 

	●	[*]
	 	 
	●	[*]
	 	 
	●	[*]
	 	 
	●	[*]

 

Administration
of study drug may continue during the time of review in subjects who are already receiving study drug, based on the judgment of
the Chief Medical Officer of Corbus.

 

An
expedited and cumulative review of safety data and the circumstances of the event(s) in question will be conducted by the DMC,
with additional external expertise as needed, to make recommendations to Corbus whether screening, randomization, and/or dosing
can resume or should be discontinued, whether the protocol should be modified, or whether the study should be discontinued permanently.
Upon consideration of a cumulative review of safety and other data, the study can be discontinued permanently by Corbus.

 

Written
notification, documenting the reason for study suspension or termination, will be provided by Corbus to the investigators and
the respective country regulatory authorities. If the study is suspended or prematurely terminated, the investigators will promptly
inform the reviewing Independent Ethics Committee/Institutional Review Board (hereafter referred to as the Ethics Committee or
EC) at each site and will provide the reason(s) for the suspension or termination. Review and approval by the reviewing EC at
each site is required for resumption of the study in the event the study is interrupted.

 

STATISTICAL
ANALYSES:

 

The
Statistical Analysis Plan will be completed before database locking and unblinding.

 

The
study is expected to enroll approximately 415 subjects, with ~166 subjects each in the lenabasum 20 mg BID and placebo BID cohorts
and ~83 subjects in the lenabasum 5 mg BID cohort [*].

 

[*]

 

[*]

 

[*]

 

[*]

 

Efficacy
comparisons will be made between each dose of lenabasum and placebo. The event rate of new PEx will be compared between the lenabasum
and placebo groups [*].

 

For
time to first PEx, [*] will be used for comparing the [*] between the active and placebo groups. [*].

 

[*]
endpoints such as [*], change in CFQ-R domain scores, change in FEV1 % predicted, [*],[*],[*], and [*] will be analyzed using
[*].

 

[*]

 

[*]

 

[*]

 

[*]

 

    	 	 	 

     

    

 

Exhibit
B

 

Milestone
Payments and Budget

 

Milestone
Payments

 

	 Milestone
	 	Milestone
    Payment	 	Expected
    Milestone Completion Date
	 	 	 	 	 
	Upon
    Contract Execution	 	10%
    ($2,500,000)	 	[*]
	 	 	 	 	 
	[*]	 	15%
    ($3,750,000)	 	[*]
	 	 	 	 	 
	[*]	 	[*]	 	[*]
	 	 	 	 	 
	[*]	 	[*]	 	[*]
	 	 	 	 	 
	[*]	 	[*]	 	[*]
	 	 	 	 	 
	[*]	 	[*]	 	[*]

 

    	 	 	 

     

    

 

BUDGET

 

[*][NOTE:
Approximately seven pages of this Exhibit B for which confidential treatment has been requested have been omitted and filed separately
with the Securities and Exchange Commission.]

 

    	 	 	 

     

    

 

EXHIBIT
C

 

CFF
Patents

 

None.

 

    	 	 	 

     

    

 

Exhibit
D

 

Warrants
Awarded to CFF

 

Warrant
Certificate No. F-1

 

NEITHER
THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES
NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT
THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS
AND THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE SATISFACTORY TO
THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS.

 

	Effective
    Date: January 26, 2018	 	Void
    After: January 26, 2025

 

CORBUS
PHARMACEUTICALS HOLDINGS, INC. 

 

WARRANT
TO PURCHASE COMMON STOCK

 

Corbus
Pharmaceuticals Holdings, Inc., a Delaware corporation (the “Company”), for value received on January 26,
2018 (the “Effective Date”), hereby issues to The Cystic Fibrosis Foundation (the “Holder”)
this warrant (the “Warrant”) to purchase, 1,000,000 shares (each such share as from time to time adjusted as
hereinafter provided being a “Warrant Share” and all such shares being the “Warrant Shares”)
of the Company’s Common Stock (as defined below), at the Exercise Price (as defined below), as adjusted from time to time
as provided herein, on or before January 26, 2025 (the “Expiration Date”), all subject to the following terms
and conditions.

 

As
used in this Warrant, (i) “Business Day” means any day other than Saturday, Sunday or any other day on which
commercial banks in the City of New York, New York, are authorized or required by law or executive order to close; (ii) “Common
Stock” means the common stock of the Company, par value $0.0001 per share, including any securities issued or issuable
with respect thereto or into which or for which such shares may be exchanged for, or converted into, pursuant to any stock dividend,
stock split, stock combination, recapitalization, reclassification, reorganization or other similar event; (iii) “Exercise
Price” means $13.20 per share of Common Stock, subject to adjustment as provided herein; (iv) “Trading Day”
means any day on which the Common Stock is traded (or available for trading) on its principal Trading Market (as defined below);
and (v) “Affiliate” means any person that, directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with, a person, as such terms are used and construed in Rule 144 promulgated under
the Securities Act of 1933, as amended (the “Securities Act”). For purposes hereof, “Trading Market”
means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question:
the New York Stock Exchange, the NYSE MKT, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market,
or any other national securities exchange, as well as the OTC Bulletin Board or any tier of the OTC Markets.

 

	1.	DURATION
    AND EXERCISE OF WARRANTS 

 

(a)
Exercise Period. Commencing on the Effective Date of this Warrant, the Holder may exercise this Warrant for up to 500,000
shares of Common Stock (the “Initial Exercise Amount”). Upon the Completion of the CF Trial (as defined below),
the Holder may exercise this Warrant for the remaining 500,000 shares of Common Stock (the “Additional Exercise Amount”)
issuable pursuant to the terms of this Warrant. At no point in time, may the Holder exercise this Warrant for more than 1,000,000
shares of Common Stock in the aggregate. The Holder may exercise this Warrant, in whole or in part (in accordance with the limitations
set forth in this Section 1(a)), on any Business Day on or before 5:00 P.M., Eastern Time, on the Expiration Date, at which time
this Warrant shall become void and of no value. For purposes of this Warrant, the term “Completion of the CF Trial”
shall mean completion of the final Milestone by the Company and receipt of the final Milestone Payment by the Company from
Cystic Fibrosis Foundation as set forth in Exhibit B to the Cystic Fibrosis Program Related Investment Agreement by and between
Corbus Pharmaceuticals, Inc. and Cystic Fibrosis Foundation dated January 26, 2018.

 

    	 	 	 

     

    

 

(b)
Exercise Procedures.

 

(i)
While this Warrant remains outstanding and exercisable in accordance with Section 1(a) , the Holder may exercise this Warrant
in whole or in part at any time and from time to time by:

 

(A)
delivery to the Company of a duly executed copy of the Notice of Exercise attached as Exhibit A;

 

(B)
surrender of this Warrant to the Secretary of the Company at its principal offices or at such other office or agency as the Company
may specify in writing to the Holder; and

 

(C)
payment of the then-applicable Exercise Price per share multiplied by the number of Warrant Shares being purchased upon exercise
of the Warrant (such amount, the “Aggregate Exercise Price”) made in the form of cash, or by certified check,
bank draft or money order payable in lawful money of the United States of America.

 

(ii)
Upon the exercise of this Warrant in compliance with the provisions of Section 1(a) and this Section 1(b), the Company shall promptly
issue and cause to be delivered to the Holder a certificate for the Warrant Shares purchased by the Holder. Each exercise of this
Warrant shall be effective immediately prior to the close of business on the date (the “Date of Exercise”)
that the conditions set forth in this Section 1(b) have been satisfied, as the case may be. On the first Business Day following
the date on which the Company has received each of the Notice of Exercise and the Aggregate Exercise Price (the “Exercise
Delivery Documents”), the Company shall transmit an acknowledgment of receipt of the Exercise Delivery Documents to
the Company’s transfer agent (the “Transfer Agent”). On or before the second Business Day following the
date on which the Company has received all of the Exercise Delivery Documents (the “Share Delivery Date”),
the Company shall (X) provided that the Transfer Agent is participating in The Depository Trust Company (“DTC”)
Fast Automated Securities Transfer Program, upon the request of the Holder, credit such aggregate number of shares of Common Stock
to which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with DTC
through its Deposit Withdrawal Agent Commission system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated
Securities Transfer Program, issue and dispatch by overnight courier to the address as specified in the Notice of Exercise, a
certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of shares
of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of the Exercise Delivery Documents, the
Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which
this Warrant has been exercised, irrespective of the date of delivery of the certificates evidencing such Warrant Shares.

 

(c)
Partial Exercise. This Warrant shall be exercisable, either in its entirety or, from time to time, for part only of the
number of Warrant Shares referenced by this Warrant for which the Warrant is then currently exercisable. If this Warrant is submitted
in connection with any exercise pursuant to Section 1 and the number of Warrant Shares represented by this Warrant submitted for
exercise is greater than the actual number of Warrant Shares being acquired upon such an exercise, then the Company shall as soon
as practicable after any exercise and at its own expense, issue a new Warrant of like tenor representing the right to purchase
the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares
with respect to which this Warrant is exercised.

 

(d)
Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant
Shares, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute
in accordance with Section 16.

 

    	 	 	 

     

    

 

	2.	ISSUANCE
    OF WARRANT SHARES 

 

(a)
The Company covenants that all Warrant Shares will, upon issuance in accordance with the terms of this Warrant, be (i) duly authorized,
fully paid and non-assessable, and (ii) free from all liens, charges and security interests, with the exception of claims arising
through the acts or omissions of any Holder and except as arising from applicable Federal and state securities laws.

 

(b)
The Company shall register this Warrant upon records to be maintained by the Company for that purpose in the name of the record
holder of such Warrant from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute
owner thereof for the purpose of any exercise thereof, any distribution to the Holder thereof and for all other purposes.

 

(c)
The Company will not, by amendment of its certificate of incorporation, by-laws or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist
in the carrying out of all the provisions of this Warrant and in the taking of all action necessary or appropriate in order to
protect the rights of the Holder to exercise this Warrant, or against impairment of such rights.

 

	3.	ADJUSTMENTS
    OF EXERCISE PRICE, NUMBER AND TYPE OF WARRANT SHARES 

 

(a)
The Exercise Price and the number of shares purchasable upon the exercise of this Warrant shall be subject to adjustment from
time to time upon the occurrence of certain events described in this Section 3; provided, that notwithstanding the provisions
of this Section 3, the Company shall not be required to make any adjustment if and to the extent that such adjustment would require
the Company to issue a number of shares of Common Stock in excess of its authorized but unissued shares of Common Stock, less
all amounts of Common Stock that have been reserved for issue upon the conversion of all outstanding securities convertible into
shares of Common Stock and the exercise of all outstanding options, warrants and other rights exercisable for shares of Common
Stock. If the Company does not have the requisite number of authorized but unissued shares of Common Stock to make any adjustment,
the Company shall use its commercially reasonable efforts to obtain the necessary stockholder consent to increase the authorized
number of shares of Common Stock to make such an adjustment pursuant to this Section 3.

 

(i)
Subdivision or Combination of Stock. In case the Company shall at any time subdivide (whether by way of stock dividend,
stock split or otherwise) its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect
immediately prior to such subdivision shall be proportionately reduced and the number of Warrant Shares, the Initial Exercise
Amount and the Additional Exercise Amount shall be proportionately increased, and conversely, in case the outstanding shares of
Common Stock of the Company shall be combined (whether by way of stock combination, reverse stock split or otherwise) into a smaller
number of shares, the Exercise Price in effect immediately prior to such combination shall be proportionately increased and the
number of Warrant Shares, the Initial Exercise Amount and the Additional Exercise Amount shall be proportionately decreased. The
Exercise Price, the Warrant Shares, the Initial Exercise Amount and the Additional Exercise Amount, as so adjusted, shall be readjusted
in the same manner upon the happening of any successive event or events described in this Section 3(a)(i).

 

(ii)
Dividends in Stock, Property, Reclassification. If at any time, or from time to time, all of the holders of Common Stock
(or any shares of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received or become
entitled to receive, without payment therefore:

(A)
any shares of stock or other securities that are at any time directly or indirectly convertible into or exchangeable for Common
Stock, or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or other
distribution, or

 

(B)
additional stock or other securities or property (including cash) by way of spin-off, split-up, reclassification, combination
of shares or similar corporate rearrangement (other than shares of Common Stock issued as a stock split or adjustments in respect
of which shall be covered by the terms of Section 3(a)(i) above), then and in each such case, the Exercise Price and the number
of Warrant Shares to be obtained upon exercise of this Warrant shall be adjusted proportionately, and the Holder hereof shall,
upon the exercise of this Warrant, be entitled to receive, in addition to the number of shares of Common Stock receivable thereupon,
and without payment of any additional consideration therefor, the amount of stock and other securities and property (including
cash in the cases referred to above) that such Holder would hold on the date of such exercise had such Holder been the holder
of record of such Common Stock as of the date on which holders of Common Stock received or became entitled to receive such shares
or all other additional stock and other securities and property. The Exercise Price and the Warrant Shares, as so adjusted, shall
be readjusted in the same manner upon the happening of any successive event or events described in this Section 3(a)(ii).

 

    	 	 	 

     

    

 

(iii)
Reorganization, Reclassification, Consolidation, Merger or Sale. If any recapitalization, reclassification or reorganization
of the capital stock of the Company, or any consolidation or merger of the Company with another corporation, or the sale of all
or substantially all of its assets or other transaction shall be effected in such a way that holders of Common Stock shall be
entitled to receive stock, securities, or other assets or property (an “Organic Change”), then, as a condition
of such Organic Change, lawful and adequate provisions shall be made by the Company whereby the Holder hereof shall thereafter
have the right to purchase and receive (in lieu of the shares of the Common Stock of the Company immediately theretofore purchasable
and receivable upon the exercise of the rights represented by this Warrant) such shares of stock, securities or other assets or
property as may be issued or payable with respect to or in exchange for a number of outstanding shares of such Common Stock equal
to the number of shares of such stock immediately theretofore purchasable and receivable assuming the full exercise of the rights
represented by this Warrant. In the event of any Organic Change, appropriate provision shall be made by the Company with respect
to the rights and interests of the Holder to the end that the provisions hereof (including, without limitation, provisions for
adjustments of the Exercise Price and of the number of shares purchasable and receivable upon the exercise of this Warrant) shall
thereafter be applicable, in relation to any shares of stock, securities or assets thereafter deliverable upon the exercise hereof.
The Company will not affect any such consolidation, merger or sale unless, prior to the consummation thereof, the successor corporation
(if other than the Company) resulting from such consolidation or merger or the corporation purchasing such assets shall assume
by written instrument reasonably satisfactory in form and substance to the Holder executed and mailed or delivered to the registered
Holder hereof at the last address of such Holder appearing on the books of the Company, the obligation to deliver to such Holder
such shares of stock, securities or assets as, in accordance with the foregoing provisions, such Holder may be entitled to purchase.
If there is an Organic Change, then the Company shall cause to be mailed to the Holder at its last address as it shall appear
on the books and records of the Company, at least 10 calendar days before the effective date of the Organic Change, a notice stating
the date on which such Organic Change is expected to become effective or close, and the date as of which it is expected that holders
of the Common Stock of record shall be entitled to exchange their shares for securities, cash, or other property delivered upon
such Organic Change; provided, that the failure to mail such notice or any defect therein or in the mailing thereof shall not
affect the validity of the corporate action required to be specified in such notice. The Holder is entitled to exercise this Warrant
during the 10-day period for the amount of shares of Common Stock for which this Warrant is then currently exercisable commencing
on the date of such notice to the effective date of the event triggering such notice. In any event, the successor corporation
(if other than the Company) resulting from such consolidation or merger or the corporation purchasing such assets shall be deemed
to assume such obligation to deliver to such Holder such shares of stock, securities or assets even in the absence of a written
instrument assuming such obligation to the extent such assumption occurs by operation of law.

 

(b)
Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment pursuant to this Section 3, the Company
at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each
Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment
or readjustment is based. The Company shall promptly furnish or cause to be furnished to such Holder a like certificate setting
forth: (i) such adjustments and readjustments; and (ii) the number of shares and the amount, if any, of other property which at
the time would be received upon the exercise of the Warrant.

 

(c)
Certain Events. If any event occurs as to which the other provisions of this Section 3 are not strictly applicable but
the lack of any adjustment would not fairly protect the purchase rights of the Holder under this Warrant in accordance with the
basic intent and principles of such provisions, or if strictly applicable would not fairly protect the purchase rights of the
Holder under this Warrant in accordance with the basic intent and principles of such provisions, then the Company’s Board
of Directors will, in good faith, make an appropriate adjustment to protect the rights of the Holder; provided, that no
such adjustment pursuant to this Section 3(c) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise
determined pursuant to this Section 3.

 

    	 	 	 

     

    

 

	4.	RESERVED

 

	5.	TRANSFERS
    AND EXCHANGES OF WARRANT AND WARRANT SHARES 

 

(a)
Registration of Transfers and Exchanges. Subject to Section 5(c), upon the Holder’s surrender of this Warrant, with
a duly executed copy of the Form of Assignment attached as Exhibit B, to the Secretary of the Company at its principal
offices or at such other office or agency as the Company may specify in writing to the Holder, the Company shall register the
transfer of all or any portion of this Warrant. Upon such registration of transfer, the Company shall issue a new Warrant, in
substantially the form of this Warrant, evidencing the acquisition rights transferred to the transferee and a new Warrant, in
similar form, evidencing the remaining acquisition rights not transferred, to the Holder requesting the transfer. 

 

(b)
Warrant Exchangeable for Different Denominations. The Holder may exchange this Warrant for a new Warrant or Warrants, in
substantially the form of this Warrant, evidencing in the aggregate the right to purchase the number of Warrant Shares which may
then be purchased hereunder, each of such new Warrants to be dated the date of such exchange and to represent the right to purchase
such number of Warrant Shares as shall be designated by the Holder. The Holder shall surrender this Warrant with duly executed
instructions regarding such re-certification of this Warrant to the Secretary of the Company at its principal offices or at such
other office or agency as the Company may specify in writing to the Holder.

 

(c)
Restrictions on Transfers. This Warrant may not be transferred at any time without: (i) registration under the Securities
Act; or (ii) an exemption from such registration and a written opinion of legal counsel addressed to the Company that the proposed
transfer of the Warrant may be effected without registration under the Securities Act, which opinion will be in form and from
counsel reasonably satisfactory to the Company.

 

(d)
Permitted Transfers and Assignments. Notwithstanding any provision to the contrary in this Section 5, the Holder may transfer,
with or without consideration, this Warrant or any of the Warrant Shares (or a portion thereof) to the Holder’s Affiliates
without obtaining the opinion from counsel that may be required by Section 5(c)(ii), provided, that the Holder delivers
to the Company and its counsel certification, documentation, and other assurances reasonably required by the Company’s counsel
to enable the Company’s counsel to render an opinion to the Company’s Transfer Agent that such transfer does not violate
applicable securities laws.

 

	6.	MUTILATED
    OR MISSING WARRANT CERTIFICATE 

 

If
this Warrant is mutilated, lost, stolen or destroyed, upon request by the Holder, the Company will, at its expense, issue, in
exchange for and upon cancellation of the mutilated Warrant, or in substitution for the lost, stolen or destroyed Warrant, a new
Warrant, in substantially the form of this Warrant, representing the right to acquire the equivalent number of Warrant Shares;
provided, that, as a prerequisite to the issuance of a substitute Warrant, the Company may require satisfactory evidence
of loss, theft or destruction as well as an indemnity from the Holder of a lost, stolen or destroyed Warrant.

 

	7.	PAYMENT
    OF TAXES 

 

The
Company will pay all transfer and stock issuance taxes attributable to the preparation, issuance and delivery of this Warrant
and the Warrant Shares (and replacement Warrants) including, without limitation, all documentary and stamp taxes; provided,
however, that the Company shall not be required to pay any tax in respect of the transfer of this Warrant, or the issuance
or delivery of certificates for Warrant Shares or other securities in respect of the Warrant Shares to any person or entity other
than to the Holder.

 

	8.	FRACTIONAL
    WARRANT SHARES 

 

No
fractional Warrant Shares shall be issued upon exercise of this Warrant. The Company, in lieu of issuing any fractional Warrant
Share, shall round up the number of Warrant Shares issuable to nearest whole share.

 

    	 	 	 

     

    

 

	9.	NO
    STOCK RIGHTS AND LEGEND 

 

No
holder of this Warrant, as such, shall be entitled to vote or be deemed the holder of any other securities of the Company that
may at any time be issuable on the exercise hereof, nor shall anything contained herein be construed to confer upon the holder
of this Warrant, as such, the rights of a stockholder of the Company or the right to vote for the election of directors or upon
any matter submitted to stockholders at any meeting thereof, or give or withhold consent to any corporate action or to receive
notice of meetings or other actions affecting stockholders (except as provided herein), or to receive dividends or subscription
rights or otherwise (except as provide herein).

 

Each
certificate for Warrant Shares initially issued upon the exercise of this Warrant, and each certificate for Warrant Shares issued
to any subsequent transferee of any such certificate, shall be stamped or otherwise imprinted with a legend in substantially the
following form:

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR
OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER
OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED,
SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR
APPLICABLE STATE SECURITIES LAWS.”

 

	10.	LOCK-UP
    

 

Any
Warrant Shares acquired pursuant to an exercise of this Warrant must not be transferred, sold, hypothecated or otherwise disposed
for a period of one year from the date on which the Share Delivery Date .

 

	11.	NOTICES
    

 

All
notices, consents, waivers, and other communications under this Warrant must be in writing and will be deemed given to a party
when (a) delivered to the appropriate address by hand or by nationally recognized overnight courier service (costs prepaid); (b)
sent by facsimile or e-mail with confirmation of transmission by the transmitting equipment; (c) received or rejected by the addressee,
if sent by certified mail, return receipt requested, if to the registered Holder hereof; or (d) seven (7) days after the placement
of the notice into the mails (first class postage prepaid), to the Holder at the address, facsimile number, or e-mail address
furnished by the registered Holder to the Company in accordance with the Subscription Agreement by and between the Company and
the Holder, or if to the Company, to it at One Kendall Square, Bldg 200, Cambridge, MA 02139, Attn: Yuval Cohen, CEO (or to such
other address, facsimile number, or e-mail address as the Holder or the Company as a party may designate by notice the other party).

 

	12.	SEVERABILITY
    

 

If
a court of competent jurisdiction holds any provision of this Warrant invalid or unenforceable, the other provisions of this Warrant
will remain in full force and effect. Any provision of this Warrant held invalid or unenforceable only in part or degree will
remain in full force and effect to the extent not held invalid or unenforceable.

 

	13.	BINDING
    EFFECT 

 

This
Warrant shall be binding upon and inure to the sole and exclusive benefit of the Company, its successors and assigns, the registered
Holder or Holders from time to time of this Warrant and the Warrant Shares.

 

	14.	SURVIVAL
    OF RIGHTS AND DUTIES 

 

This
Warrant shall terminate and be of no further force and effect on the earlier of 5:00 P.M., Eastern Time, on the Expiration Date
or the date on which this Warrant has been exercised in full.

 

	15.	GOVERNING
    LAW 

 

This
Warrant will be governed by and construed under the laws of the State of New York without regard to conflicts of laws principles
that would require the application of any other law.

 

    	 	 	 

     

    

 

	16.	DISPUTE
    RESOLUTION 

 

In
the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company
shall submit the disputed determinations or arithmetic calculations via facsimile within two (2) Business Days of receipt of the
Notice of Exercise giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are unable to
agree upon such determination or calculation of the Exercise Price or the Warrant Shares within three Business Days of such disputed
determination or arithmetic calculation being submitted to the Holder, then the Company shall, within two Business Days, submit
via facsimile (a) the disputed determination of the Exercise Price to an independent, reputable investment bank selected by the
Company and approved by the Holder or (b) the disputed arithmetic calculation of the Warrant Shares to the Company’s independent,
outside accountant. The Company shall cause at its expense the investment bank or the accountant, as the case may be, to perform
the determinations or calculations and notify the Company and the Holder of the results no later than ten (10) Business Days from
the time it receives the disputed determinations or calculations. Such investment bank’s or accountant’s determination
or calculation, as the case may be, shall be binding upon all parties absent demonstrable error.

 

	17.	NOTICES
    OF RECORD DATE 

 

Upon
(a) any establishment by the Company of a record date of the holders of any class of securities for the purpose of determining
the holders thereof who are entitled to receive any dividend or other distribution, or right or option to acquire securities of
the Company, or any other right; or (b) any capital reorganization, reclassification, recapitalization, merger or consolidation
of the Company with or into any other corporation, any transfer of all or substantially all the assets of the Company, or any
voluntary or involuntary dissolution, liquidation or winding up of the Company, or the sale, in a single transaction, of a majority
of the Company’s voting stock (whether newly issued, or from treasury, or previously issued and then outstanding, or any
combination thereof), the Company shall mail to the Holder at least ten (10) Business Days, or such longer period as may be required
by law, prior to the record date specified therein, a notice specifying; (i) the date established as the record date for the purpose
of such dividend, distribution, option or right and a description of such dividend, option or right; (ii) the date on which any
such reorganization, reclassification, transfer, consolidation, merger, dissolution, liquidation or winding up, or sale is expected
to become effective;and (iii) the date, if any, fixed as to when the holders of record of Common Stock shall be entitled to exchange
their shares of Common Stock for securities or other property deliverable upon such reorganization, reclassification, transfer,
consolation, merger, dissolution, liquidation or winding up.

 

	18.	RESERVATION
    OF SHARES 

 

The
Company shall reserve and keep available out of its authorized but unissued shares of Common Stock for issuance upon the exercise
of this Warrant, free from pre-emptive rights, such number of shares of Common Stock for which this Warrant shall from time to
time be exercisable. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may
be issued as provided herein without violation of any applicable law or regulation. Without limiting the generality of the foregoing,
the Company covenants that it will use commercially reasonable efforts to take all such action as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this
Warrant and use commercially reasonable efforts to obtain all such authorizations, exemptions or consents, including but not limited
to consents from the Company’s stockholders or Board of Directors or any public regulatory body, as may be necessary to
enable the Company to perform its obligations under this Warrant.

 

	19.	NO
    THIRD PARTY RIGHTS 

 

This
Warrant is not intended, and will not be construed, to create any rights in any parties other than the Company and the Holder,
and no person or entity may assert any rights as third-party beneficiary hereunder.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	 	 

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of the date first set forth above.

 

	 	CORBUS
    PHARMACEUTICALS HOLDINGS, INC.
	 	 	                             
	 	By:
     	 

	 	Name:	Yuval
    Cohen
	 	Title:	Chief
    Executive Officer

 

    	 	 	 

     

    

 

EXHIBIT
A

 

NOTICE
OF EXERCISE

 

(To
be executed by the Holder of Warrant if such Holder desires to exercise Warrant)

 

To
Corbus Pharmaceuticals Holdings, Inc.:

 

The
undersigned hereby irrevocably elects to exercise this Warrant and to purchase thereunder, [ ] full shares of Corbus Pharmaceuticals
Holdings, Inc. Common Stock issuable upon exercise of the Warrant and delivery of:

 

$[
] (in cash as provided for in the foregoing Warrant) and any applicable taxes payable by the undersigned pursuant to such Warrant.

 

The
undersigned requests that certificates for such shares be issued in the name of:

 

	 	 	 
	 	(Please
                                         print name, address and social security or federal employer identification number (if
                                         applicable))
	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

If
the shares issuable upon this exercise of the Warrant are not all of the Warrant Shares which the Holder is entitled to acquire
upon the exercise of the Warrant, the undersigned requests that a new Warrant evidencing the rights not so exercised be issued
in the name of and delivered to:

 

	 	 	 
	 	(Please
    print name, address and social security or federal employer identification number (if applicable))	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

	 	Name
    of Holder (print): 	 
	 	(Signature):
    	 
	 	(By:)
    	 
	 	(Title:)
    	 
	 	Dated:
    	 

 

    	 	 	 

     

    

 

EXHIBIT
B

 

FORM
OF ASSIGNMENT

 

FOR
VALUE RECEIVED, [ ] hereby sells, assigns and transfers to each assignee set forth below all of the rights of the undersigned
under the Warrant (as defined in and evidenced by the attached Warrant) to acquire the number of Warrant Shares set opposite the
name of such assignee below and in and to the foregoing Warrant with respect to said acquisition rights and the shares issuable
upon exercise of the Warrant:

 

	Name
                                         of Assignee
	 	Address
	 	Number
                                         of Shares

 

 

 

 

 

If
the total of the Warrant Shares are not all of the Warrant Shares evidenced by the foregoing Warrant, the undersigned requests
that a new Warrant evidencing the right to acquire the Warrant Shares not so assigned be issued in the name of and delivered to
the undersigned.

 

	 	Name
    of Holder (print): 	 
	 	(Signature):
    	 
	 	(By:)
    	 
	 	(Title:)
    	 
	 	Dated:Exhibit 10.1

 

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is hereby entered into on March 9, 2018 (the “Effective Date”), between Surgery Partners, Inc. (the “Company”) and Thomas F. Cowhey (“Executive” or “you”).

 

1.                                      Employment.  The Company shall employ Executive, and Executive hereby accepts employment with the Company, upon the terms and conditions set forth in this Agreement for the period beginning on April 2, 2018 (the “Commencement Date”) and ending on the Termination Date, as provided for in Section 4 (the “Employment Period”).

 

2.                                      Position and Duties.

 

(a)                                 During the Employment Period, Executive shall serve as the Executive Vice President and Chief Financial Officer, reporting to the Chief Executive Officer.  Executive shall have such responsibilities, duties and authorities, and will render such services for the Company and its Subsidiaries or Affiliates as the Board of Directors of the Company (the “Board”) may from time to time direct that are reasonably consistent with Executive’s position.  Executive will devote his best efforts, energies and abilities and his full business time, skill and attention to the business and affairs of the Company and its Subsidiaries, and shall perform his duties and responsibilities to the best of his ability, in a diligent, trustworthy, businesslike and efficient manner for the purpose of advancing the businesses of Company and its Subsidiaries.  Executive acknowledges that his duties and responsibilities will require his full time business efforts and agrees that during the Employment Period he will not engage in any other business activity or have any business pursuits that interfere with Executive’s duties and responsibilities under this Agreement or are competitive with the businesses of the Company.  Notwithstanding the foregoing, Executive shall be permitted to devote a reasonable amount of time and effort to (i) providing service to, or serving on governing boards of, civic and charitable organizations, and (ii) personally investing and managing personal and family investments in real estate and in any corporation, partnership or other entity; but in each case, only to the extent that any of the activities described in clauses (i) or (ii), individually or as a whole, do not (A) require or involve the active participation of Executive in the management of any corporation, partnership or other entity or interfere with the execution of Executive’s duties hereunder, or (B) otherwise violate any provision of this Agreement.

 

(b)                                 For purposes of this Agreement, (i) “Subsidiaries” means any corporation or other entity (A) of which the securities or other ownership interests having the voting power to elect a majority of the board of directors or other governing body are, at the time of determination, owned by the Company, directly or through one or more subsidiaries or (B) to which the Company or any of its Affiliates provide management services, and (ii) “Affiliate” of an entity means any other person or entity, directly or indirectly controlling, controlled by or under common control with an entity.

 

3.                                      Compensation and Benefits.

 

(a)                                 During the Employment Period, Executive’s base salary shall be $450,000 per annum, payable by the Company in regular installments in accordance with the Company’s general payroll practices, less taxes and other applicable withholdings, and subject to review and adjustment from time to time by the Board or the Compensation Committee thereof (the “Committee”), in either case, in its discretion (as modified from time to time, the “Base Salary”).

 

(b)                                 Executive will be entitled to participate in all employee benefit plans from time to time in effect for senior executives generally, except to the extent such plans are duplicative of benefits otherwise

 

 

 

provided to Executive under this Agreement, subject to the eligibility and participation requirements thereof, including, but not limited to, the following:

 

(i)                                     medical, dental, vision, life and disability insurance, as is generally provided to other employees of the Company; and

 

(ii)                                  eligibility for vacation time and other paid time off, in addition to holidays observed by the Company, in accordance with the policies of the Company as from time to time in effect; provided, however, that Executive shall not have less than 20 days of vacation time per calendar year.  Vacation may be taken at such times and intervals as Executive shall determine, subject to the business needs of the Company.

 

(c)                                  During the Employment Period, the Company shall reimburse Executive for all reasonable out-of-pocket expenses incurred by him in the course of performing his duties and responsibilities under this Agreement which are consistent with the Company’s policies in effect from time to time with respect to travel, entertainment and other business expenses, including, without limitation, travel to and from Nashville Tennessee and actual temporary living expenses during the period of time prior to Executive’s family’s relocation to the area, all subject to the Company’s requirements with respect to reporting and documentation of such expenses. Executive’s right to payment or reimbursement for business expenses hereunder will be subject to the following additional rules: (i) no reimbursement of any expense shall affect Executive’s right to reimbursement of any other expense in any other taxable year; (ii) the amount of expenses eligible for payment or reimbursement during any calendar year will not affect the expenses eligible for payment or reimbursement in any other taxable year; (iii) payment or reimbursement will be made not later than December 31 of the calendar year following the calendar year in which the expense was incurred or paid, and (iv) the right to payment or reimbursement is not subject to liquidation or exchange for any other benefit.

 

(d)                                 In addition to the Base Salary, Executive will be eligible to receive an annual bonus (the “Annual Bonus”).  The target Annual Bonus will be seventy-five percent (75%) of the Base Salary, with the actual amount of any such bonus being determined by the Board or the Committee, in either case, in its discretion, based on the achievement of performance goals previously established annually by the Board or the Committee, as applicable.  Any Annual Bonus payable under this Section 3(d) will be paid no later than March 15th following the close of the year for which the bonus is earned.

 

(e)                                  Executive shall be eligible to participate in the Surgery Partners, Inc. 2015 Omnibus Incentive Plan (as amended from time to time) (“Plan”) on terms and conditions set forth therein and in the relevant award agreement unless specifically stated otherwise in this Agreement, and will, starting in 2019, be eligible for annual equity grants under the Plan, in an annual target amount of $500,000 (subject to approval of the Board (or an authorized committee thereof), in such forms as determined by the Board or its designee in its discretion.  In addition, subject to approval by the Board (or an authorized committee thereof), as soon as reasonably practicable following the Commencement Date, the Company shall grant to Executive equity in an amount representing $500,000 as follows: (i) a restricted stock award, with the number of shares subject to the award determined by dividing $250,000 by the closing price of a share of Company common stock on the date of grant and with such shares vesting in three equal annual installments on each of the first, second, and third anniversaries of the grant date on the terms and conditions set forth in the Plan and the applicable award agreement, the execution of which shall be a condition to the award, and (ii) a performance stock unit (“PSU”) award, with the number of shares subject to the award determined by dividing $250,000 by the closing price of a share of Company common stock on the date of grant and such units shall be earned and vest on the terms and conditions set forth in the Plan and the applicable award agreement, the execution of which shall be a condition to the award.  In addition, on or as soon as reasonably practicable following the Commencement Date, and subject to approval by the Board (or an authorized

 

2

 

 

committee thereof), the Company shall grant to Executive a leveraged performance unit (“LPU”) award, with a target number of units equal to 29,603 shares of Company common stock under the Plan, which shall be earned and vest on the terms and conditions set forth in the Plan and the applicable award agreement, the execution of which shall be a condition to the award.

 

(f)                                   The Company will pay or reimburse Executive for his reasonable expenses of relocating from Hartford, Connecticut to a location that is a reasonable commuting distance from the Company’s principal executive officers in Brentwood, Tennessee, subject to reasonable substantiation and documentation as may be necessary from time to time.  The Company will provide Executive with a tax gross-up for applicable federal, state and local taxes paid by him in connection with the relocation expenses described in this Section 3(f), to the extend such expenses are taxable to him.

 

(g)                                  All amounts payable to Executive hereunder shall be subject to all required withholdings by the Company.  If additional guidance is issued under, or modifications are made to, Section 409A of the Internal Revenue Code of the Internal Revenue Code and the regulations and other interpretive guidance issued thereunder (collectively, “Section 409A”), or any other law affecting payments to be made under this Agreement, Executive agrees that the Company may take such reasonable actions and adopt such reasonable amendments as the Company believes are necessary to ensure continued compliance with the Internal Revenue Code, including Section 409A.  However, the Company does not hereby or otherwise represent or warrant that any payments hereunder are or will be in compliance with Section 409A, and Executive shall be responsible for obtaining his own tax advice with regard to such matters.

 

4.                                      Termination.

 

(a)                                 Termination by Executive or the Company.  The Employment Period (i) shall terminate upon Executive’s resignation with Good Reason (as defined below) or without Good Reason, death or Disability (as defined below) or (ii) may be terminated by the Company at any time for Cause (as defined below) or without Cause.

 

(b)                                 “Good Reason” shall mean without the written consent of Executive:

 

(i)                                     without the express written consent of Executive, a material diminution of his position, duties, responsibilities, and status or a material reduction of Executive’s resources;

 

(ii)                                  a material reduction in Executive’s Base Salary or annual bonus target percentage;

 

(iii)                               a material reduction in the level of benefits available or awarded to Executive, other than any reduction in connection with a Company-wide reduction applicable generally to similarly situated senior executive officers of the Company;

 

(iv)                              within twelve months of a Change in Control (as defined herein), a material increase in Executive’s core functional responsibilities with a corresponding material change in Executive’s core functional role without a corresponding increase in compensation, provided, however, the addition of additional facilities or territories to Executive’s oversight responsibilities or other ordinary course growth of the Company or any of its Subsidiaries or Affiliates shall not be a material increase in Executive’s core functional responsibilities;

 

(v)                                 a relocation by the Company of Executive’s primary employment location to a location that is not the Company’s headquarters, or which is more than 50 miles from Executive’s primary employment location on the date hereof; or

 

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(vi)                              a material breach by the Company of the terms of this Agreement;

 

but only if (x) Executive notifies the Company in writing within 90 days after the initial existence or occurrence of any of these conditions which notice describes in reasonable detail the basis for Executive’s belief that Good Reason exists and that Executive intends to resign for Good Reason and the Company, within 30 days after receipt of such notice, either fails to cure the condition or delivers a written notice to Executive that the Company intends not to cure such condition and (y) Executive actually resigns prior to 15 days after the earlier to occur of either the end of such 30-day cure period or delivery of such written notice by the Company.  This definition of “Good Reason” shall govern all agreements and awards between the Company and Executive throughout Executive’s employment.

 

(c)                                  “Disability” as used herein shall mean that for 12 consecutive weeks Executive is unable to perform, with or without reasonable accommodation, by reason of physical or mental incapacity, the essential duties, responsibilities and functions of his position.  A medical examination by a physician selected by the Company to whom Executive or his duly appointed guardian, if any, has no reasonable objection shall determine, according to the facts then available, whether and when Disability has occurred.  Such determination shall not be arbitrary or unreasonable, and shall be final and binding on the parties hereto.  This definition of “Disability” shall govern all agreements and awards between the Company and Executive throughout Executive’s employment.

 

(d)                                 “Cause” as used herein means the occurrence of any of the following events:

 

(i)                                     a material breach by Executive of any of the terms and conditions of this Agreement; provided that, if curable, Executive shall have a reasonable period of time (which in no event shall exceed 45 days) during which to cure such material breach following the date on which Executive receives the Company’s written notice of such material breach;

 

(ii)                                  Executive’s reporting to work (A) intoxicated (other than Executive’s reasonable use of alcohol in connection with business entertainment, provided, that such use of alcohol does not cause the Company or any of its Subsidiaries or Affiliates substantial public disgrace or disrepute or economic harm) or (B) under the influence of illegal drugs;

 

(iii)                               Executive’s use of illegal drugs (whether or not at the workplace) or other conduct causing the Company or any of its Subsidiaries or Affiliates substantial public disgrace or disrepute or economic harm;

 

(iv)                              breach of fiduciary duty, gross negligence or willful misconduct with respect to the Company or any of its Subsidiaries or Affiliates;

 

(v)                                 chronic absenteeism, which shall be deemed to have occurred if Executive has at least ten absences unrelated to paid time off, disability or illness in any ten week period;

 

(vi)                              Executive’s material failure or willful refusal to substantially perform his duties, responsibilities and functions; provided that, if curable, Executive shall have a reasonable period of time (which in no event shall exceed 45 days) during which to cure such failure following the date on which Executive receives the Company’s written notice of such failure;

 

(vii)                           Executive’s willful failure to comply with any of the Company’s or any of its Subsidiaries’ material written guidelines or procedures promulgated by the Company or any such Subsidiary and furnished to Executive; provided that, if curable, Executive shall have a reasonable

 

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period of time (which in no event shall exceed 45 days) during which to cure such failure following the date on which Executive receives the Company’s written notice of such failure; or

 

(viii)                        Executive has committed an act or acts constituting a felony or any other act or omission involving theft, dishonesty or fraud against the Company or any of its Subsidiaries or any of their respective customers or suppliers or other business relationships.

 

This definition of “Cause” shall govern with respect to all agreements and awards between the Company and Executive throughout Executive’s employment.

 

(e)                                  A “Change in Control” shall be deemed to have occurred upon any of the following events, provided that, to the extent required by Section 409A, such events would also qualify as a “change in control event” under Treas. Reg. §1.409A-3(i)(5): the consummation, following the date of this Agreement, of (i) a sale or transfer (other than by way of merger or consolidation), of all or substantially all of the Company’s assets to any person or entity, (ii) any merger, consolidation or other business combination transaction of the Company with or into another corporation, entity or person, other than a transaction in which the holders of at least a majority of the shares of voting capital stock of the Company outstanding immediately prior to such transaction continue to hold (either by such shares remaining outstanding or by their being converted into shares of voting capital stock of the surviving entity) a majority of the total voting power represented by the shares of voting capital stock of the Company (or the surviving entity) outstanding immediately after such transaction, or (iii) the direct or indirect acquisition (including by way of a tender or exchange offer) by any person or entity (or persons and/or entities acting as a group), of beneficial ownership or a right to acquire beneficial ownership of shares representing more than 50% of the total voting power of the then-outstanding shares of capital stock of the Company.  This definition of “Change in Control” shall govern with respect to all agreements and awards between the Company and Executive throughout Executive’s employment.

 

(f)                                   Termination by Executive.  Executive has the right to terminate his employment under this Agreement at any time, for any or no reason, but only after giving the Company (i) 30 days prior written notice with respect to any termination without Good Reason or (ii) the number of days prior written notice set forth in the last sentence of Section 4(b) with respect to any termination with Good Reason.

 

(g)                                  Compensation after Termination.

 

(i)                                     If the Employment Period is terminated pursuant to Executive’s resignation without Good Reason, death or Disability, Executive shall only be entitled to receive his Base Salary through the date of termination and shall not be entitled to any other salary, bonus, compensation or benefits from the Company or its Subsidiaries, except as may be required by applicable law; provided, that Executive or his estate shall remain entitled to receive any Annual Bonus that has already been awarded but not yet paid; and provided further, that in the event of death or Disability, Executive’s equity-related awards shall be governed by the terms and conditions of the applicable award agreements and the Plan.

 

(ii)                                  If the Employment Period is terminated by the Company for Cause, Executive shall only be entitled to his Base Salary through the date of termination and shall not be entitled to any other salary, bonus, compensation or benefits from the Company or its Subsidiaries, except as may be required by applicable law.  In addition, in such event, Executive shall automatically forfeit any rights to any unvested equity owned by Executive in the Company or any Subsidiary.

 

(iii)                               If the Employment Period is terminated by the Company without Cause or by Executive for Good Reason, then subject to the conditions described in Section 4(g)(v)

 

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below, Executive shall be entitled to receive as severance compensation the following: (A) an amount equal to twelve (12) months of Executive’s then-current annual Base Salary, payable in regular installments beginning within 30 days following the Termination Date in accordance with the Company’s general payroll practices for salaried employees; (B) continuation of the welfare benefits described in Section 3(b) for twelve (12) months to the extent permissible under the terms of the relevant benefit plans at the same cost to Executive as if Executive were an active employee of the Company (or if health insurance coverage is not continuable under the terms of the relevant plan, the Company will pay (or reimburse Executive) for the cost of COBRA health insurance coverage less the cost to Executive for health insurance as if Executive were an active employee of the Company); (C) the Bonus payable to Executive within 2 and 1/2 months after the end of the applicable year (to the extent not previously paid), paid in a lump sum at the time that bonuses are regularly paid to employees; and (D) any awarded but unpaid Annual Bonus for the prior year (collectively, “Severance Pay”).  In addition: (E) with respect to the portion of each restricted stock award held by Executive as of date on which the Employment Period is terminated that is subject to time-based vesting (the “Time-Based RSA”), accelerated vesting of the Time-Based RSA to the vesting event next following the date on which the Employment Period is terminated; and (F) notwithstanding any terms and conditions of the applicable award agreements, with respect to the portion of each PSU award or LPU award held by the Executive as of the date on which the Employment Period is terminated that has been converted into “Earned Shares” as defined in the applicable award agreement (the “Earned PSUs” and the “Earned LPUs”), accelerated vesting of the Earned PSUs and the Earned LPUs to the vesting event next following the date on which the Employment Period is terminated.  For purposes of this Section 4(g), “Bonus” shall mean an amount equal to Executive’s then-current annual Base Salary, multiplied by the percentage contained in Section 3(d) hereof.  For the avoidance of doubt, the unvested portion of any restricted stock awards, PSU awards, and LPU held by Executive as of the date on which the Employment Period ends (after giving effect to the acceleration provisions set forth in subsections (D) and (E) herein), and the terms and conditions of the applicable award agreements and the Plan) shall be forfeited and of no further force and effect.  With respect to any PSU award, it is further agreed that if Executive’s employment is terminated without Cause or Executive terminates his employment for Good Reason before the Performance Period End Date (as defined in such PSU award agreement), and a Change in Control occurs within 90 days following such termination, then notwithstanding such termination the terms of Section 3(b) of the award agreement shall apply to determine Earned Shares as if the Executive were still employed by the Company, and Section 6(a) of the award agreement shall apply to such Earned Shares.  With respect to any LPU award, if Executive’s employment is terminated without Cause or Executive terminates his employment for Good Reason before the Performance Period End Date, and a Change in Control occurs within 90 days following such termination, then notwithstanding such termination, the LPUs shall remain outstanding and Section 3(c) of the award agreement shall apply to determine Earned Shares as if the Executive were still employed by the Company, and Section 6(b) of the award agreement shall apply to such Earned Shares.

 

(iv)                              If, within 90 days prior to or 18 months following a Change in Control, either (A) the Company terminates the employment of Executive hereunder without Cause under Section 4(a) above, or (B) Executive terminates his employment for Good Reason under Section 4(b) above, then, in lieu of any other compensation that may be specified in this Agreement (but with respect

 

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to any equity-related award held by Executive, in addition to accelerated vesting provided above, and/or the effects of relevant terms of any applicable award agreement or the Plan), the Company will pay Executive the Severance Pay in a single lump-sum payment not later than 30 days after termination.

 

(v)           Notwithstanding Sections 4(g)(iii) or (iv), Executive’s right to receive Severance Pay hereunder is conditioned upon: (A) Executive executing, and not revoking, a written separation agreement and general release of all claims against the Company, its Subsidiaries and Affiliates and their respective managers, directors, officers, shareholders, members, representatives, agents, attorneys, predecessors, successors and assigns (other than a claim for the severance payments described in Section 4(g)(iii) or (iv) and Executive’s rights to future distributions and payments related to the continued ownership of any equity securities in the Company that Executive will continue to own after such termination), in form and substance acceptable to the Company, which shall among other things, contain a general release by Executive of all claims arising out of his employment and termination of employment by the Company (a “Release Agreement”) within 30 days of Executive’s Termination Date; and (B) Executive’s material compliance with all of his obligations which survive termination of this Agreement.  The Severance Pay is intended to be in lieu of all other payments to which Executive might otherwise be entitled in respect of his termination without Cause or resignation with Good Reason.  The Company and its Subsidiaries and Affiliates shall have no further obligations hereunder or otherwise with respect to Executive’s employment from and after the date of termination of employment with the Company (the “Termination Date”), and the Company and its Subsidiaries and Affiliates shall continue to have all other rights available hereunder (including without limitation, all rights hereunder at law or in equity).  Notwithstanding the foregoing, the Release Agreement (x) shall not require the release of Executive’s rights arising from the express terms of this Agreement or any applicable award agreement that are associated with a termination of employment; (y) shall not impose any post-employment restrictions other than those set forth in this Agreement, and (z) shall take into account and preserve Executive’s rights in the event that a Change in Control occurs within 90 days after termination of employment (or such longer tail period as may be provided by any agreement between Executive and the Company).

 

(vi)          Except as otherwise expressly provided herein and/or in any applicable award agreement or the Plan, all of Executive’s rights to salary, bonuses, benefits and other compensation hereunder which might otherwise accrue or become payable after the termination of the Employment Period shall cease upon such termination, other than those expressly required under applicable law (such as COBRA).  All amounts payable to Executive as severance hereunder shall be subject to all required withholdings by the Company.  If any payment obligation under this Section 4(g) arises, no compensation received from other employment (or otherwise) will reduce the Company’s obligation to make the payment(s) described in this paragraph, and in the event of any breach of such payment obligation, Executive shall not have an obligation to mitigate damages.

 

(h)           The Company may offset any amount Executive owes the Company or its Subsidiaries or Affiliates against any amount they or their Subsidiaries or Affiliates owe Executive hereunder.

 

(i)            Notwithstanding the foregoing, if Executive’s employment terminates, and the terms (in whole or in part) of any applicable award agreement as applied to the facts and circumstances surrounding such termination are more favorable to Executive than the terms of this Agreement, the terms of the applicable award agreement shall govern to the extent (but only to the extent) they are more favorable to Executive.

 

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5.             Confidential Information.  Other than in the performance of his duties hereunder, during the Restrictive Period (as defined below) and thereafter, Executive shall keep secret and retain in strictest confidence, and shall not, without the prior written consent of the Company, furnish, make available or disclose to any third party or use for the benefit of herself or any third party, any Confidential Information.  As used in this Agreement, “Confidential Information” shall mean any information relating to the business or affairs of the Company or any of its Subsidiaries or Affiliates or the Business, including but not limited to any technical or non-technical data, formulae, compilations, programs, devices, methods, techniques, designs, processes, procedures, improvements, models, manuals, financial data, acquisition strategies and information, information relating to operating procedures and marketing strategies, and any other proprietary information used by the Company or any of its Subsidiaries or Affiliates in connection with the Business, irrespective of its form; provided, however, that Confidential Information shall not include any information which is in the public domain or becomes known in the industry, in each case through no wrongful act on the part of Executive.  Executive acknowledges that the Confidential Information is vital, sensitive, confidential and proprietary to the Company and its Subsidiaries and Affiliates.  Executive will immediately notify the Company of any unauthorized possession, use, disclosure, copying, removal or destruction, or attempt thereof, of any Confidential Information by anyone of which Executive becomes aware and of all details thereof.  Executive shall take all reasonably appropriate steps to safeguard Confidential Information and to protect it against disclosure, misuse, espionage, loss and theft.  Executive shall deliver to the Company at the termination or expiration of the Employment Period, or at any other time the Company may request, all memoranda, notes, plans, records, reports, computer tapes, computers, printouts and software and other documents and data (and copies thereof) embodying or relating to the Confidential Information, Inventions and Discoveries (as defined below) or the business of the Company or any of its Subsidiaries or Affiliates which Executive may then possess or have under his control.  Nothing in this Agreement limits, restricts or in any other way affects Executive’s communicating with any governmental agency or entity, or communicating with any official or staff person of a governmental agency or entity, concerning matters relevant to the governmental agency or entity, or requires Executive to provide notice to the Company of the same.  Executive cannot be held criminally or civilly liable under any federal or state trade secret law for disclosing a trade secret (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspended violation of law, or (2) in a compliant or other document filed under seal in a lawsuit or other proceeding.  Notwithstanding this immunity from liability, Executive may be held liable if Executive unlawfully accesses trade secrets by unauthorized means.

 

“Business” as used herein means the business of owning, operating, developing and/or managing, or providing management or administrative services to, (a) ambulatory surgery centers anywhere in the United States or (b) physician-owned surgical hospitals within a 50 mile radius of any hospital that is owned, operated, developed or managed by the Company or any Affiliate.

 

6.             Inventions and Discoveries.

 

(a)           Executive understands and agrees that all inventions, discoveries, ideas, improvements, whether patentable, copyrightable or not, pertaining to the Business or relating to Company’s or any of its Subsidiaries’ or Affiliates’ actual or demonstrably anticipated research, development or inventions (collectively, “Inventions and Discoveries”) that result from any work performed by Executive solely or jointly with others for the Company or any of its Subsidiaries or Affiliates which Executive, solely or jointly with others, conceives, develops, or reduces to practice during the course of Executive’s employment with the Company or any of its Subsidiaries, are the sole and exclusive property of the Company.  Executive will promptly disclose all such matters to the Company and will assist the Company in obtaining legal protection for Inventions and Discoveries.  Executive hereby agrees on behalf of herself, his executors, legal representatives and assignees that he will assign, transfer and convey to the Company, its successors and assigns the Inventions and Discoveries.

 

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(b)           THE COMPANY AND EXECUTIVE ACKNOWLEDGE AND AGREE THAT SECTION 7(a) SHALL NOT APPLY TO AN INVENTION OF EXECUTIVE FOR WHICH NO EQUIPMENT, SUPPLIES, FACILITY OR TRADE SECRET INFORMATION OF THE COMPANY OR ANY OF ITS SUBSIDIARIES WAS USED AND WHICH WAS DEVELOPED ENTIRELY ON EXECUTIVE’S OWN TIME, UNLESS (A) THE INVENTION RELATED (I) TO THE BUSINESS OF THE COMPANY OR ANY OF ITS SUBSIDIARIES OR AFFILIATES OR (II) TO THE COMPANY’S OR ANY OF ITS SUBSIDIARIES’ OR AFFILIATES’ ACTUAL OR DEMONSTRABLY ANTICIPATED RESEARCH OR DEVELOPMENT, OR (B) THE INVENTION RESULTS FROM ANY WORK PERFORMED BY EXECUTIVE FOR THE COMPANY OR ANY OF ITS SUBSIDIARIES OR AFFILIATES.

 

(c)           EXECUTIVE ACKNOWLEDGES THAT HE HAS READ THIS SECTION 7 AND FULLY UNDERSTANDS THE LIMITATIONS WHICH IT IMPOSES UPON HIS AND HAS RECEIVED A DUPLICATE COPY OF THIS AGREEMENT FOR HIS RECORDS.

 

7.             Restrictive Covenants.  Executive acknowledges that in the course of his employment with the Company or any of its Subsidiaries or Affiliates, or their predecessors or successors, he has been and will be given access to and has and will become familiar with their trade secrets and with other Confidential Information and that his services have been and shall be of special, unique and extraordinary value to the Company and its Subsidiaries or Affiliates.  Therefore, and in further consideration of the compensation to be paid to Executive hereunder and in connection with his employment, and to protect the Company’s and its Subsidiaries’ and Affiliates’ Confidential Information, business interests and goodwill:

 

(a)           Non-compete.  Executive hereby agrees that for a period commencing on the date hereof and ending on the Termination Date, and thereafter, through the period ending twelve (12) months after the Termination Date (collectively, the “Restrictive Period”), he shall not, directly or indirectly, as employee, agent, consultant, stockholder, director, co-partner or in any other individual or representative capacity, own, operate, manage, control, engage in, invest in or participate in any manner in, act as a consultant or advisor to, render services for (alone or in association with any person, firm, corporation or entity), or otherwise assist any person or entity (other than the Company and its Subsidiaries) that engages in or owns, invests in, operates, manages or controls any venture or enterprise that directly or indirectly engages or is actively developing or attempting to develop in any element of the Business anywhere within a 50-mile radius of the Nashville, Tennessee metropolitan area or within a 50-mile radius of any area (or in the event such area is a major city, the metropolitan area relating to such city) in which the Company or any of its Subsidiaries on the Termination Date actively engages or is actively developing or attempting to develop in any element of the Business (the “Territory”); provided, however, that nothing contained herein shall be construed to prevent Executive from investing in the stock of any competing corporation listed on a national securities exchange or traded in the over-the-counter market, but only if Executive is not involved in the business of said corporation and if Executive and his associates (as such term is defined in Regulation 14(A) promulgated under the Securities Exchange Act of 1934, as in effect on the date hereof), collectively, do not own more than an aggregate of 3% of the stock of such corporation.  With respect to the Territory, Executive specifically acknowledges that the Company and its Subsidiaries intend to expand the Business into and throughout the United States.  Notwithstanding the foregoing, the activity proscribed by this Section 8(a) shall not constitute a violation of this Section 8(a) where performed for (x) an entity where no more than a de minimis amount of revenue is derived from a business that is competitive with the business of the Company or any of its Affiliates; or (y) an entity that derives no more than $100 million in revenue from one or more divisions, departments or segments, in the aggregate, that are engaged in any business competitive with the business of the Company or any of its Affiliates; provided, that in either case, you are not responsible for (and do not engage or participate in) the day-to-day management, oversight or supervision of such business and provided you do not have direct supervision over the individual or individuals who are so responsible for such day-to-day management, oversight or supervision.

 

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(b)           Interference with Relationships.  Other than in the performance of his duties hereunder, during the Restrictive Period, Executive will not directly or indirectly (i) solicit or encourage any customer, vendor, supplier or other business partner of the Company or any of its Affiliates to terminate or diminish its relationship with them; or (ii) seek to persuade any such customer, vendor, supplier or other business partner or prospective customer, vendor, supplier or other business partner of the Company or any of its Affiliates to conduct with anyone else any business or activity which such customer, vendor, supplier or other business partner or such prospective customer, vendor, supplier or other business partner conducts or could conduct with the Company or any of its Affiliates; provided, however, that these restrictions shall apply (x) only with respect to those persons who are or have been a business partner of the Company or any of its Affiliates at any time within the immediately preceding two (2)-year period or whose business has been solicited on behalf of the Company or any of the Affiliates by any of their officers, employees or agents within such two (2)-year period, other than by form letter, blanket mailing or published advertisement, and (y) only if Executive has performed work for such person during his employment with the Company or one of its Affiliates or been introduced to, or otherwise had contact with, such person as a result of his employment or other associations with the Company or one of its Affiliates or have had access to Confidential Information which would assist in his solicitation of such person.

 

(c)           Non-solicitation.  Other than in the performance of his duties hereunder, during the Non-Solicit Restrictive Period, Executive shall not, directly or indirectly, as employee, agent, consultant, stockholder, director, co partner or in any other individual or representative capacity, employ, recruit or solicit for employment or engagement, any person who is employed or engaged by the Company or any of its Subsidiaries or any of its Affiliated Practices during the Non- Solicit Restrictive Period, or otherwise seek to influence or alter any such person’s relationship with any of the Affiliated Practices, the Company or any of its Subsidiaries; provided, however that responses to a general solicitation (such as an internet or newspaper solicitation) that are not targeted towards any particular person shall not be deemed to be a violation of the restrictions set forth in this Section 8(c).

 

(d)           Affiliated Practice.  For purposes of this Agreement, an “Affiliated Practice” shall include any practice or facility (i) in which the Company or any of its Subsidiaries has an ownership interest or (ii) that is managed by or receives other services from the Company or any of its Subsidiaries in connection with any element of the Business.

 

(e)           Blue Pencil.  If any court of competent jurisdiction shall at any time deem the term of this Agreement or any particular Restrictive Covenant (as defined below) too lengthy or the Territory too extensive, the other provisions of this Section 8 shall nevertheless stand, the Restrictive Period herein shall be deemed to be the longest period permissible by law under the circumstances and the Territory herein shall be deemed to comprise the largest territory permissible by law under the circumstances.  The court in each case shall reduce the time period and/or Territory to permissible duration or size.

 

(f)            Covenant Not to Disparage.  During the Restrictive Period and thereafter, Executive shall not disparage, denigrate or derogate in any way, directly or indirectly, the Company, any of its Subsidiaries or Affiliates, or any of its or their respective agents, officers, directors, employees, parent, subsidiaries, affiliates, Affiliated Practices, affiliated doctors (including any physicians who utilize or have invested in any Affiliated Practice), representatives, attorneys, executors, administrators, successors and assigns (collectively, the “Protected Parties”), nor shall Executive disparage, denigrate or derogate in any way, directly or indirectly, his experience with any Protected Party, or any actions or decisions made by any Protected Party.

 

(g)           Remedies.  Executive acknowledges and agrees that the covenants set forth in this Section 8 and the preceding Sections 6 and 7 (collectively, the “Restrictive Covenants”) are reasonable and necessary for the protection of the business interests of the Company and its Subsidiaries and Affiliates,

 

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that irreparable injury may result to the Company and its Subsidiaries and Affiliates if Executive breaches any of the terms of said Restrictive Covenants, and that in the event of Executive’s actual or threatened breach of any such Restrictive Covenants, the Company and its Subsidiaries and Affiliates will have no adequate remedy at law.  Executive accordingly agrees that in the event of any actual or threatened breach by his of any of the Restrictive Covenants, the Company and its Subsidiaries and Affiliates shall be entitled to immediate temporary injunctive and other equitable relief subject to hearing as soon thereafter as possible.  Nothing contained herein shall be construed as prohibiting the Company or any of its Subsidiaries or Affiliates from pursuing any other remedies available to it for such breach or threatened breach, including the recovery of any damages which it is able to prove.  In addition, in the event of an alleged breach or violation by Executive of this Section 8, the restricted periods set forth in this Section 8 shall be tolled until such breach or violation has been duly cured.

 

(h)           Executive understands that the foregoing restrictions may limit his ability to earn a livelihood in a business similar to the business of the Company and its Subsidiaries or Affiliates, but he nevertheless believes that he has received and will receive sufficient consideration and other benefits as an executive of the Company and as otherwise provided hereunder to clearly justify such restrictions which, in any event (given his education, skills and ability), Executive does not believe would prevent his from otherwise earning a living.  Executive acknowledges that the Restrictive Covenants are reasonable and that he has reviewed the provisions of this Agreement with his legal counsel.  Executive shall inform any prospective or future employer of any and all restrictions contained in this Agreement and provide such employer with a copy of such restrictions, prior to the commencement of that employment.

 

8.             Executive’s Representations and Covenants.

 

(a)           Executive hereby represents and warrants to the Company that (i) the execution, delivery and performance of this Agreement by Executive do not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which Executive is a party or by which he is bound, (ii) except as previously disclosed to the Company, to the best of Executive’s knowledge, information, and belief formed after diligent inquiry, Executive is not a party to or bound by any employment agreement, non-compete agreement or confidentiality agreement with any other person or entity and (iii) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid and binding obligation of Executive, enforceable in accordance with its terms.  Executive hereby acknowledges and represents that he has consulted with independent legal counsel regarding his rights and obligations under this Agreement and that he fully understands the terms and conditions contained herein.

 

(b)           During the Employment Period and thereafter, Executive shall cooperate with the Company and its Subsidiaries and Affiliates in any internal investigation or administrative, regulatory or judicial proceeding as reasonably requested by the Company (including, without limitation, Executive being available to the Company upon reasonable notice for interviews and factual investigations, appearing at the Company’s request to give testimony without requiring service of a subpoena or other legal process, volunteering to the Company all pertinent information and turning over to the Company all relevant documents which are in or may come into Executive’s possession, all at times and on schedules that are reasonably consistent with Executive’s other permitted activities and commitments).  In the event the Company requires Executive’s cooperation in accordance with this Section 9(b), the Company shall reimburse Executive for reasonable travel expenses (including, without limitation, travel expenses, lodging and meals, and reasonable attorneys’ fees upon submission of receipts).

 

9.             Survival.  Sections 4 through 23 shall survive and continue in full force in accordance with their terms notwithstanding the expiration or termination of the Employment Period.

 

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10.          Notices.  Any notices provided for in this Agreement shall be in writing and shall be effective when delivered in person or deposited in the United States mail, postage prepaid, and addressed to Executive at his last known address on the books of the Company or, in the case of the Company, to it at its principal place of business, attention of the Chief Executive Officer, or to such other address as either party may specify by notice to the other actually received.

 

11.          Severability.  Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

12.          Complete Agreement.  This Agreement, those documents expressly referred to herein and other documents of even date herewith, embody the complete agreement and understanding among Executive and the Company and its Subsidiaries and, as of the Effective Date, shall supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way, including, for the avoidance of doubt, the Former Employment Agreement.

 

13.          No Strict Construction.  The language used in this Agreement will be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction will be applied against any party hereto.

 

14.          Counterparts.  This Agreement may be executed in separate counterparts (including by facsimile or PDF signature pages), each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

 

15.          Successors and Assigns.  This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive and the Company and its successors and permitted assigns.  Executive may not assign any of his rights or obligations hereunder without the prior written consent of the Company.  The Company may (a) assign any or all of its respective rights and interests hereunder to one or more Subsidiaries or Affiliates of the Company, (b) designate one or more Subsidiaries or Affiliates of the Company to perform its obligations hereunder (in any or all of which cases the Company nonetheless shall remain responsible for the performance of all of its obligations hereunder), (c) assign its rights hereunder in connection with the sale of all or a substantial part of the business or assets of the Company or one of its Subsidiaries (whether by merger, sale of stock or assets, recapitalization or otherwise) and (d) merge any of the Subsidiaries or Affiliates with or into the Company (or vice versa).  The rights of the Company hereunder are enforceable by the Company or its Subsidiaries or Affiliates, which are the intended third party beneficiaries hereof and no other third party beneficiary is so otherwise intended.

 

16.          Delivery by Facsimile or PDF.  This Agreement and any amendments hereto, to the extent signed and delivered by means of a facsimile machine or PDF, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.  At the request of any party hereto, each other party hereto shall re-execute original forms thereof and deliver them to the other party.  No party hereto shall raise the use of a facsimile machine or PDF to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine or PDF as a defense to the formation or enforceability of a contract and each such party forever waives any such defense.

 

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17.                               Income Tax Treatment.  Executive and the Company acknowledge that it is the intention of the Company to deduct all cash amounts paid under this Agreement as ordinary and necessary business expenses for income tax purposes.  Executive agrees and represents that he will treat all such non-reimbursable amounts as ordinary income for income tax purposes, and should he report such amounts as other than ordinary income for income tax purposes, he will indemnify and hold the Company harmless from and against any and all taxes, penalties, interest, costs and expenses, including reasonable attorneys’ and accounting fees and costs, which are incurred by Company directly or indirectly as a result thereof.

 

18.                               Governing Law.  This Agreement shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Agreement shall be governed by, the laws of the state in which Executive resides, without giving effect to provisions thereof regarding conflict of laws.

 

19.                               Waiver of Jury Trial.  THE PARTIES HERETO HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT.  THE PARTIES HERETO ALSO WAIVE ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF THE OTHER PARTY.  THE PARTIES HERETO ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS.  THE COMPANY AND EXECUTIVE FURTHER WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS WAIVER WITH THEIR RESPECTIVE LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES THEIR RESPECTIVE JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE TRANSACTION CONTEMPLATED HEREBY.  IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

20.                               Consent to Jurisdiction.

 

(a)                                 THE COMPANY AND EXECUTIVE HEREBY CONSENT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE STATE IN WHICH EXECUTIVE RESIDES AND IRREVOCABLY AGREE THAT SUBJECT TO THE COMPANY’S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE LITIGATED IN SUCH COURTS.  EXECUTIVE ACCEPTS FOR HIMSELF AND IN CONNECTION WITH HIS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT.

 

(b)                                 Notwithstanding Section 21(a), the parties intend to and hereby confer jurisdiction to enforce the covenants contained in Sections 6 through 8 upon the courts of any jurisdiction within the geographical scope of such covenants.  If the courts of any one or more of such jurisdictions hold such covenants wholly or partially invalid or unenforceable by reason of the breadth of such scope or otherwise, it is the intention of the parties that such determination not bar or in any way affect the Company’s right to the relief provided above in the courts of any other jurisdiction within the geographical scope of such

 

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covenants, as to breaches of such covenants in such other respective jurisdictions, such covenants as they relate to each jurisdiction being, for this purpose, severable into diverse and independent covenants.

 

21.                               Amendment and Waiver.  Any provision of this Agreement may be amended or waived only with the prior written consent of the Company and Executive, and no course of conduct or course of dealing or failure or delay by any party hereto in enforcing or exercising any of the provisions of this Agreement shall affect the validity, binding effect or enforceability of this Agreement or be deemed to be an implied waiver of any provision of this Agreement.

 

22.                               Section 409A.  To the maximum extent permitted by law, this Agreement shall be interpreted in such a manner that the payments to Executive under this Agreement are either exempt from, or comply with, Section 409A, including without limitation any such regulations or other guidance that may be issued after the date hereof.  For purposes of Section 409A, each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments under this Agreement is to be treated as a right to a series of separate payments.  Notwithstanding anything to the contrary in this Agreement, if Executive is a “specified employee” as defined below, as of Executive’s termination of employment, then, to the extent any payment under this Agreement resulting from Executive’s termination of employment constitutes deferred compensation (after taking into account any applicable exemptions from Section 409A) and to the extent required by Section 409A, no payments due under this Agreement as a result of Executive’s termination of employment may be made until the earlier of (a) the first day following the six-month anniversary of Executive’s date of termination and (b) Executive’s date of death; provided, however, that any payments delayed during this six-month period shall be paid in the aggregate in a lump sum as soon as reasonably practicable following the sixth month anniversary of Executive’s date of termination.  For purposes of this Agreement, all references to “termination of employment” and correlative phrases shall be construed to require a “separation from service” (as defined in Treas. Reg. §1.409A-1(h) after giving effect to the presumptions contained therein), and the term “specified employee” means an individual determined by the Company to be a specified employee under Treas. Reg. §409A-1(i).

 

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IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the date first written above.

 

	
 
    	
SURGERY   PARTNERS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Jennifer Baldock
    
	
 
    	
Jennifer   Baldock
    
	
 
    	
Senior   Vice President and General Counsel
    

 

	
Accepted and Agreed:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Thomas F. Cowhey
    	
 
    	
 
    
	
Thomas F. Cowhey
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:   
    	
March 9,   2018

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