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CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

SUBLICENSE
AGREEMENT

 

THIS
SUBLICENSE Agreement (“Agreement”) is entered into on September 26, 2017 (the “Effective
Date”) by and between BIOTIME, INC., a California corporation, having its principal place of business at 1010 Atlantic Avenue,
Suite 102, Alameda, CA 94501 (“BioTime”), and AGEX THERAPEUTICS, INC., a Delaware corporation,
having its principal place of business at 1010 Atlantic Avenue, Suite 102, Alameda, CA 94501 (“AgeX”).

 

WITNESSETH

 

WHEREAS,
pursuant to an exclusive license agreement between ReCyte, Inc., formerly Embryome Sciences, Inc., with the Advanced Cell Technology,
Inc (“ACT”), dated July 10, 2008, as amended and August 15, 2008 (the “ACT Licenses”), BioTime
has obtained rights for Patent Rights and Know-How;

 

WHEREAS,
AgeX is an Affiliate of BioTime; and

 

WHEREAS,
AgeX wishes to obtain from BioTime a license under certain rights for the Patent Rights and Know-How, and BioTime is willing to
grant such a license upon the terms and conditions hereinafter set forth.

 

NOW
THEREFORE, for and in consideration of the covenants, conditions and undertakings hereinafter set forth, the parties hereby agree
as follows:

 

NOW
THEREFORE, for and in consideration of the covenants, conditions and undertakings hereinafter set forth, the parties hereby agree
as follows:

 

ARTICLE
1. DEFINITIONS

 

1.1
“Affiliate” means with respect to any Person (including but not limited to BioTime, AgeX or a Third
Party) any corporation, limited liability company, limited partnership or other entity in control of, controlled by, or under
common control with such Person.

 

1.2
“AgeX Field” means all uses for the treatment, palliation, diagnosis, or prevention of any disease,
disorder or health condition excluding the BioTime Exclusive Field.

 

1.3
“AgeX Non-Exclusive Field” means products, medical devices, and services for the prevention, treatment,
amelioration, diagnosis or monitoring of disorders, degeneration, congenital conditions, or injuries of tendon.

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

    	 	 	 

    	 

    

 

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1.4
“BioTime Exclusive Field” means products, medical devices, and services for the prevention, treatment,
amelioration, diagnosis or monitoring of (a) orthopedic indications, meaning [***]; (b) ophthalmological indications, meaning
[***]; and (c) medical aesthetics meaning [***].

 

1.5
“BioTime Non-Exclusive Field” means products, medical devices, and services for the prevention, treatment,
amelioration, diagnosis or monitoring of disorders, degeneration, congenital conditions, or injuries of tendon. For the avoidance
of doubt, the BioTime Non-Exclusive Field does not include the prevention, treatment, amelioration, diagnosis or monitoring of
disorders, degeneration, congenital conditions, or injuries of an orthopedic indication.

 

1.6
“Cells or Cell Lines” means the cells and cell lines identified in Exhibit A or Exhibit B attached hereto
that are covered by (i.e., made or developed using) the Patent Rights or Know-How and/or are provided to AgeX by BioTime.

 

1.7
“Change of Control” means the occurrence of any of the following: (a) any consolidation or merger of
AgeX with or into any Third Party, or any other corporate reorganization involving a Third Party, in which those persons or entities
that are stockholders of AgeX immediately prior to such consolidation, merger or reorganization own less than fifty percent (50%)
of the surviving entity’s voting power immediately after such consolidation, merger or reorganization; (b) a change in the
legal or beneficial ownership of fifty percent (50%) or more of the voting securities of AgeX (whether in a single transaction
or series of related transactions) where, immediately after giving effect to such change, the legal or beneficial owner of more
than fifty percent (50%) of the voting securities of AgeX is a Third Party; or (c) the sale, transfer, lease, license or other
disposition of all or substantially all of AgeX’s assets or business in one or a series of related transactions to a Third
Party.

 

1.8
“Combination Product” means a product that contains a Licensed Product component and at least one other
component that has independent research, diagnostic or therapeutic utility, could reasonably be sold separately and has economic
value of its own.

 

1.9
“Commercialization” in respect of a particular product, any and all activities (whether before or after
receipt of marketing approval in respect of the product, medical device or service) directed to the marketing, detailing and promotion
of the product or medical device after marketing approval for such product has been obtained, and includes marketing, promoting,
detailing, distributing, offering to commercially sell and commercially selling the product, medical device or service, importing,
exporting or transporting the product or medical device for commercial sale, and regulatory affairs with respect to the foregoing.
When used as a verb, “Commercializing” means engaging in Commercialization and “Commercialize”
and “Commercialized” shall have corresponding meanings.

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

    	 	 	 

    	 

    

 

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1.10
“Commercially Reasonable Efforts” means, with respect to the efforts to be expended by any party and
with respect to any objective, the reasonable, diligent, good faith efforts to accomplish such objective as such party would use
in its ordinary course of business to accomplish a similar objective under similar circumstances. With respect to any objective
relating to the research, development, or exploitation as used herein, “Commercially Reasonable Efforts” means that
level, caliber and quality of efforts and resources reasonably and normally used in the Research, Development and Exploitation
by biopharmaceutical companies for a product that is of similar market potential and at a similar stage in its Development or
product life, taking into account, without limitation, issues of safety, efficacy, product profile, competitiveness in the marketplace,
including efforts used by similarly positioned competitors for competing products, regulatory structure involved, optimal timing
for market entry, proprietary position, and other relevant scientific, technical, business, marketing, return on investment, financial
resources, and other commercial factors. Without limiting the generality of the foregoing, “Commercially Reasonable Efforts,
as it applies to the financial matters herein, means adherence to the budgeting and staffing targets and timelines (to the extent
adherence to such activities and timelines are controllable by the party responsible for performing such activities).

 

1.11
“Confidential Information” means all information and know-how and any tangible embodiments thereof provided
by or on behalf of one party to the other party either in connection with the discussions and negotiations pertaining to this
Agreement or in the course of performing under this Agreement, which may include data, knowledge, practices, processes, ideas,
research plans, formulation or manufacturing processes and techniques, scientific, manufacturing, marketing and business plans,
and financial and personnel matters relating to the disclosing party or to its present or future products, sales, suppliers, customers,
employees, investors or business; provided, that, information or know-how of a party will not be deemed Confidential Information
of such party for purposes of this Agreement if such information or know-how: (a) was already known to the receiving party, other
than under an obligation of confidentiality or non-use, at the time of disclosure to such receiving party, as can be shown by
written records; (b) was generally available or known to parties reasonably skilled in the field to which such information or
know-how pertains, or was otherwise part of the public domain, at the time of its disclosure to such receiving party; (c) became
generally available or known to parties reasonably skilled in the field to which such information or know-how pertains, or otherwise
became part of the public domain, after its disclosure to such receiving party through no fault of the receiving party; (d) was
disclosed to such receiving party, other than under an obligation of confidentiality or non-use, by a Third Party who had no obligation
to the disclosing party not to disclose such information or know-how to others, as can be shown by written records; or (e) was
independently discovered or developed by such receiving party, as can be shown by its written records, without the use or benefit
of, or reliance on, Confidential Information belonging to the disclosing party.

 

1.12
“Control” means, with respect to any Patent(s), possession of the right, whether directly or indirectly,
and whether by ownership, license or otherwise, to grant a license, sublicense or other right to or under such Patent(s) as provided
for herein.

 

1.13
“Cover” means that a product or service, when made, used, or sold, or that a method, procedure, process,
when practiced, would constitute, but for the license granted to Licensee pursuant to this Agreement, an infringement of any claim
or claims included within the Patent Rights.

 

1.14
“Development” means all activities related to stability testing, process development, formulation, manufacturing
scale-up, qualification and validation, quality assurance/quality control, clinical studies, including manufacturing in support
thereof, statistical analysis and report writing, the preparation pre-submission and submission of INDs, premarket approvals,
510(k)s, NDAs, BLAs, and other regulatory applications, filings or submissions, regulatory affairs with respect to the foregoing,
and all other activities necessary or reasonably useful or otherwise requested or required by the United States Food and Drug
Administration, or any successor agency (“FDA”) or a comparable foreign regulatory authority as a condition
or in support of obtaining or maintaining a regulatory marketing approval, or an approval for a clinical trial, anywhere in the
world. When used as a verb, “Develop” means to engage in Development.

 

    	 	 	 

    	 

    

 

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1.15
“Development Costs” means, subject to the other terms of this Agreement and without duplication, (a)
the [***] by or on behalf of AgeX or any of its Affiliates, during the term of and pursuant to this Agreement, that (i) are [***],
and (ii) [***] of the sublicense in which the designation was made.

 

1.16
“Effective Date” has the meaning set forth in the opening paragraph of this Agreement.

 

1.17
“Exploit” means, to Develop, Manufacture, Commercialize, make, have made, use, offer to sell, sell or
import; and “Exploitation” means Developing, Manufacturing, Commercializing, making, having made, using,
offering to sell, selling or importing.

 

1.18
“Know-How” means all compositions of matter, techniques and data and other knowhow and technical information
including inventions (whether or not patentable), improvements and developments, practices, methods, concepts, trade secrets,
documents, computer data, computer slide illustrations, computer code, apparatus, test data, analytical and quality control data,
formulation, manufacturing, patent data or descriptions, development information, drawings, specifications, designs, plans, proposals
and technical data .and manuals and all other Confidential Information that is owned or controlled by BioTime as of the Effective
Date, and that specifically relates to the subject matter (a) described in or claimed by the Patent Rights, (b) described in or
claimed by the abandoned provisional applications including but not limited to: [***] .

 

1.19
“Licensed Process” means any process or method, the development, use, practice, or sale of which (a)
is covered in whole or in part by, or cannot be performed without infringing, a Valid Claim of the Patent Rights in the country
in which such Licensed Process is practiced or sold, (b) uses Cells or Cell Line listed in Exhibit A, or (c) otherwise utilizes
the Know-How.

 

1.20
“Licensed Product” means any product, or part thereof or derived therefrom, the development, manufacture,
sale, lease, or use of which (a) is covered in whole or in part by, or cannot be performed without infringing, a Valid Claim of
the Patent Rights in the country in which any such product or part thereof is developed, made, used, sold or imported by AgeX,
(b) uses Cells or Cell Line listed in Exhibit A, or (c) otherwise utilizes the Know-How.

 

1.21
“Licensed Services” means any service, the development, use, performance, or sale of which is covered
in whole or in part by, or cannot be performed without infringing, a Valid Claim of the Patent Rights in the country in which
any such service is so developed, used, performed, sold, offered for sale, imported or exported by AgeX or otherwise utilizes
the Know-How.

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

    	 	 	 

    	 

    

 

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1.22
“Manufacture” and “Manufacturing” means, in respect of a particular pharmaceutical,
bio-pharmaceutical, diagnostic, or prognostic product, and without limitation, all activities related to the production, manufacture,
processing, formulation, filling, finishing, packaging, labeling, shipping, handling, holding, storage and warehousing of such
product or any intermediate thereof, including process development, process qualification and validation, scale-up, pre-clinical,
clinical and commercial manufacture and analytic development, product characterization, stability testing, quality assurance and
quality control.

 

1.23
“Net Sales” means the invoiced amount on sales by AgeX or its Affiliates or Sublicensees of Licensed
Products, Licensed Services or Licensed Processes less (to the extent applicable and appropriately documented) (i) sales, tariff
and import duties, use and other taxes directly imposed with reference to particular sales, (ii) discounts, rebates, and similar
credits and charge backs actually allowed and taken (regardless of whether taken or paid at the time of sale or paid or credited
to the buyer at a subsequent date), and (iii) amounts allowed or credited on returns; provided, any such allowed deductions shall
be listed on the invoice for the applicable Licensed Product, Licensed Process or Licensed Service or otherwise documented in
the ordinary course of business. In the case of Combination Products, Net Sales means the total invoice amount earned on sales
of Combination Products by AgeX or its Affiliates to any third person or entity, less, to the extent applicable, the deductions
set forth above, multiplied by a proration factor that is determined as follows:

 

a)
If all components of the Combination Product were sold separately during the same or immediately preceding calendar quarter, the
proration factor shall be determined by the formula [***]; or

 

b)
if all components of the Combination Product were not sold separately during the same or immediately preceding calendar quarter,
the proration factor shall be determined by the formula [***].

 

1.24
“Patent Rights” means the patents and patent applications identified on Exhibit C attached hereto, and
any divisional, continuation or continuation-in-part of those applications, but only to the extent the claims in said applications
are directed to subject matter specifically described in the patents and patent applications identified on Exhibit C, as well
as any patents issued on these patent applications, and any reissues, reexaminations, extensions and substitutions (or the equivalent)
thereof and any foreign counterparts to those patents and patent applications. The parties agree that Exhibit C may be revised
from time to time after the Effective Date to reflect changes thereto.

 

1.25
“Person” means any individual, sole proprietorship, partnership, limited partnership, limited liability
partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint
venture or other similar entity or organization, including a government or political subdivision, department or agency of a government.

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

    	 	 	 

    	 

    

 

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1.26
“Research” means performance of scientific experiments to answer questions not answerable or easily
answerable through the published scientific literature, pre-clinical and other non-clinical testing, test method development,
and toxicology, formulation, and process development work.

 

1.27
“Sublicensee” means a Person, other than an Affiliate, that is granted a sublicense by a Party under
the license grants hereunder.

 

1.28
“Sublicensing Consideration” has the means the royalties payable pursuant to Section 2.3(d).

 

1.29
“Territory” means worldwide, where patent coverage applies.

 

1.30
“Third Party” means any Person other than AgeX, BioTime, or their respective Affiliates.

 

1.31
“Valid Claim” means (a) a claim of any issued and unexpired United States or foreign patent included
in the Patent Rights which has not lapsed or become abandoned or been declared invalid or unenforceable by a court of competent
jurisdiction or an administrative agency from which no appeal can be or has been taken within the time allowed from such appeal
and which has not been disclaimed or determined to be invalid or unenforceable through reissue, disclaimer· or otherwise,
or (b) to the extent rights are granted by a governmental patent authority thereunder (i.e., to the extent that the owner would
be able to enforce a right to a patent royalty thereunder under applicable patent law), a claim of a pending patent application
included in the Patent Rights..

 

ARTICLE
2. LICENSE GRANT AND RELATED OBLIGATIONS

 

2.1
License Grant. Subject to the terms and conditions set forth herein, and subject the rights granted by and to ACT, Third
Parties or any Affiliates prior to the Effective Date, BioTime hereby grants to AgeX a royalty-bearing exclusive license, in the
AgeX Field and a nonexclusive license in the AgeX Non-Exclusive Field in the Territory to use the Patent Rights and Know-How to
(a) Research, Develop, Exploit, make, have made, use, sell, have sold, offer for sale, have offered for sale, import, have imported,
export and have exported Licensed Products, (b) Research, Develop, Exploit, use, practice, sell, have sold, offer for sale, have
offered for sale, import, have imported, export and have exported Licensed Processes, (c) develop, use, perform, sell, have sold,
offer for sale, have offered for sale, import, have imported, export and have exported Licensed Services, and (d) Research using
Cells or Cell Lines listed in Exhibit B.

 

2.2
BioTime shall, and hereby does, grant AgeX, subject to the terms and conditions of Section 2.1, and subject the rights granted
to ACT, Third Parties or any Affiliates, a license to any new Licensed Patents created after the Effective Date that cover Licensed
Products, Licensed Processes, and Licensed Services, in the AgeX Field and the AgeX Non-Exclusive Field in the Territory, to (a)
Research, Develop, Exploit, make, have made, use, sell, have sold, offer for sale, have offered for sale, import, have imported,
export and have exported Licensed Products, (b) Research, Develop, Exploit, use, practice, sell, have sold, offer for sale, have
offered for sale, import, have imported, export and have exported Licensed Processes, (c) develop, use, perform, sell, have sold,
offer for sale, have offered for sale, import, have imported, export and have exported Licensed Services, and (d) Research using
Cells or Cell Lines listed in Exhibit B, from the Effective Date for a period of ten (10) years.

 

    	 	 	 

    	 

    

 

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2.3
Sublicensing. The rights and licenses granted by BioTime to AgeX under Sections 2.1 and 2.2 shall include the right to
grant Sublicenses (or further rights of reference) through multiple tiers of Sublicensees, subject to the following:

 

a)
The terms of any such sublicense or further rights of reference shall be in accordance with the terms and conditions of this Agreement
and the ACT Licenses. With regard to all Sublicenses granted by AgeX pursuant to the rights granted to it by BioTime under this
Agreement, (i) AgeX may not grant to any Sublicensee any right to maintain BioTime Licensed Patents, defend claims brought by
Third Parties, or commence any legal action against any Third Party for infringement of BioTime Licensed Patents and (ii) AgeX
shall notify BioTime of AgeX’s intent to enter into a sublicense and shall (1) provide BioTime with a draft of the proposed
sublicense not later than [***] days before such sublicense is executed and BioTime shall have the right to provide a copy of
such draft to ACT, (2) to allow BioTime and ACT to comment on the terms of the sublicense if BioTime or ACT chooses to comment,
and (3) provide BioTime with a fully executed copy of all sublicense agreements within [***] days after execution and BioTime
shall have the right to provide a copy thereof to ACT;;

 

b)
Notwithstanding the grant of any such sublicense or further rights of reference hereunder, AgeX shall remain solely responsible
to BioTime for the performance of its obligations under the terms hereof and for any breach of such obligations, whether such
breach shall be caused by AgeX or any Sublicensee; and

 

c)
For the avoidance of doubt it is hereby acknowledged that the appointment by AgeX of any distributor for a Licensed Product, Licensed
Process or Licensed Service the extent permitted herein, or of any Third Party to assist in the Development of a Licensed Product,
Licensed Process or Licensed Service shall not be deemed to constitute the appointment of a Sublicensee or the sublicense by AgeX
of any rights hereunder.

 

d)
Consideration

 

i.
AgeX will pay to BioTime [***] of all Net Sales of a Licensed Product, Licensed Process or Licensed Service by Sublicensees until
the royalty payments to ACT by BioTime total One Million Two Hundred Thousand Dollars (U.S.) ($1,200,000.00).:After the consideration
in Section 2.2(d)(i) is fully paid, AgeX will pay to BioTime a [***] Royalty on Net Sales of a Licensed Product, Licensed Process
or Licensed Service by Sublicensees. If AgeX is obligated to pay royalties to one or more BioTime Affiliates for the use of other
patent rights with respect to the use, manufacture or sale of a Licensed Product, Licensed Process or Licensed Service and as
a result the royalties payable under this Article plus the royalties payable to BioTime and its Affiliates in the aggregate would
exceed [***]of Net Sales, the royalty due under this Article shall be reduced such that the total amount of royalties payable
to BioTime and its Affiliates is [***], with the allocation of such royalties among BioTime and its Affiliates to be made in accordance
with their instructions.

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

    	 	 	 

    	 

    

 

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ii.
Sublicensing Consideration. AgeX shall pay to BioTime [***] of any Sublicensing Consideration, including, but not limited to,
upfront payments and milestones, and will include non-cash exchanges or considerations. Sublicensing Consideration does not include
[***]. If AgeX is obligated to pay Sublicensing Consideration to one or more BioTime Affiliates for the use of patent rights with
respect to the use, manufacture or sale of a Licensed Product, Licensed Process or Licensed Service and as a result the Sublicensing
Consideration payable under this Section plus the Sublicensing Consideration payable to BioTime and its Affiliates would exceed
[***] of the Sublicensing Consideration, the Sublicensing Consideration due under this Section may be reduced such that the total
amount of Sublicensing Consideration payable to BioTime and its Affiliates is [***], with the allocation of such Sublicensing
Consideration among BioTime and its Affiliates to be made in accordance with their instructions

 

iii.
Development Funding. Consideration received from a Sublicensee of AgeX that is explicitly designated in the sublicense agreement
to cover Development Costs will not be considered Sublicensing Considering subject to Section 2.2(d) (iii). Any Sublicensing Considering
actually received by AgeX that was designated as Development Costs that were not actually incurred by AgeX as Development Costs
in respect to Development of a Licensed Product, Licensed Service or Licensed Process, will become Sublicensing Consideration
if not returned upon completion or termination of the project for which the consideration was so designated.

 

ARTICLE
3. TERM OF AGREEMENT

 

This
Agreement shall be in full force and effect from the Effective Date until the later of (i) July 10, 2028 or (ii) the end of the
term of the last-to-expire of the Patent Rights licensed under this Agreement unless otherwise terminated by operation of law
or pursuant to the terms of this Agreement.

 

ARTICLE
4. OBLIGATIONS, FEES & ROYALTIES

 

As
additional consideration of the license granted to AgeX from BioTime in Article 2 of this Agreement, AgeX shall pay to BioTime
a royalty equal to [***] of the Net Sales received by AgeX and its Affiliates for all Licensed Products, Licensed Process or Licensed
Service sold, performed, or leased by AgeX or any Affiliate. The obligation of AgeX to pay royalties on Net Sales by AgeX and
its Affiliates (but not on Net Sales received by Sublicensees) shall terminate (a) with respect to Net Sales arising in any country
concurrently with the expiration or termination of the last applicable Valid Claim within the Patent Rights in such country in
which the Licensed Product, Licensed Process or Licensed Service is, (as applicable), performed, sold, leased, or manufactured,
or in which the Patent Rights are licensed, and (b) in any and all cases when royalty payments to ACT by BioTime total One Million
Two Hundred Thousand Dollars (U.S.) ($1,200,000.00). If AgeX is obligated to pay royalties to one or more BioTime Affiliates for
the use of other patent rights with respect to the use, manufacture or sale of a Licensed Product, Licensed Process or Licensed
Service and as a result the royalties payable under this Article plus the royalties payable to BioTime and its Affiliates in the
aggregate would exceed [***] of Net Sales, the royalty due under this Article shall be reduced such that the total amount of royalties
payable to BioTime and its Affiliates is [***] with the allocation of such royalties among BioTime and its Affiliates to be made
in accordance with their instructions.

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

    	 	 	 

    	 

    

 

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ARTICLE
5. COMMERCIAL DILIGENCE & MILESTONES

 

5.1
Commercial Diligence. AgeX shall use commercially reasonable and diligent efforts to bring one or more Licensed Products,
Licensed Processes and Licensed Services to market through an active and diligent program for exploitation of the Patent Rights
and Know-How and to continue active, diligent marketing efforts for one or more Licensed Products, Licensed Processes and Licensed
Services throughout the life of this Agreement.

 

ARTICLE
6. CONFIDENTIALITY

 

6.1
During the course of this Agreement, BioTime and AgeX may provide each other with Confidential Information. Confidential Information
may be disclosed in oral, visual or written form, and includes such information that is designated in writing as such by the discloser
at the time of disclosure, orally disclosed information that is designated in writing as confidential within 30 days after such
oral disclosure, or information which, under all of the given circumstances ought reasonably be treated as Confidential Information
of the disclosing party. BioTime and AgeX each intend to maintain the confidential or trade secret status of their Confidential
Information. Each shall exercise reasonable care to protect the Confidential Information of the other from disclosure to third
parties; no such disclosure shall be made without the other’s written permission. Upon termination or expiration of this
Agreement, BioTime and/or AgeX shall comply with the other’s written request to return all Confidential Information that
is in written or tangible form. Except as expressly provided herein, neither BioTime nor AgeX is granted any license to use the
other’s Confidential Information. The obligations of BioTime and AgeX under this Article 6, shall survive any expiration
or termination of this Agreement. Notwithstanding the preceding provisions of this Section 6.1, until such time as this Agreement
is terminated: (a) Know How and the content of any patent application relating to or included in Patent Rights shall be deemed
to be the AgeX’s Confidential Information rather than BioTime’s Confidential Information; (b) AgeX shall have the
right to disclose Know How and the content of patent applications related to or included in Patent Rights to third parties without
restriction under this Agreement; and (c) AgeX shall not have any obligation to BioTime to treat Know How or the content of any
patent application related to or included in Patent Rights as BioTime’s Confidential Information.

 

6.2
The parties agree that the specific terms (but not the overall existence) of this Agreement shall be considered Confidential Information;
provided, however, that the parties may disclose the terms of this Agreement to investors or potential investors, potential business
partners, potential co-developers, manufactures, marketers, or distributors of any Licensed Product, Licensed Process, or Licensed
Service, and in any prospectus, offering, memorandum, or other document or filing required by applicable securities laws or other
applicable law or regulation. The parties may also disclose Confidential Information that is required to be disclosed to comply
with applicable law or court order, provided that the recipient gives reasonable prior written notice of the required disclosure
to the discloser and reasonably cooperates with the discloser’s efforts to prevent such disclosure.

 

    	 	 	 

    	 

    

 

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ARTICLE
7. QUARTERLY & ANNUAL REPORTS

 

7.1
AgeX shall maintain complete and accurate records of Licensed Products, Licensed Services and Licensed Processes that are sold,
performed, or, leased by AgeX or its Affiliate under this Agreement, and all Sublicense Revenue received by AgeX and its Affiliates.
AgeX shall keep, and shall cause its Affiliates to keep, full, true and accurate books of account containing all particulars that
may be necessary for the purpose of showing the amounts payable to BioTime hereunder and AgeX’s compliance with the terms
and conditions of this Agreement. Said books of account shall be kept at AgeX’s principal place of business or at such other
location as may be agreed upon by the parties. Said books and the supporting data shall be open upon reasonable advance notice
(and no more frequently than once per calendar year) for three (3) years following the end of the calendar year to which they
pertain, to the inspection of BioTime or its agents for the purpose of verifying AgeX’s royalty statement or compliance
in other respects with this Agreement. If any such audit determines that the reported payments to BioTime were less than [***]
of the actual amount due to BioTime for the period in question, AgeX shall bear the cost of such audit (without limiting BioTime’s
other remedies with respect thereto).

 

7.2
After the first commercial sale of a Licensed Product, Licensed Service or Licensed Process by AgeX or any Affiliate, within thirty
(30) days after March 31, June 30, September 30 and December 31, of each year, shall deliver to BioTime a true and accurate report
of all Net Sales and License Revenue during the preceding three-month period under this Agreement as shall be pertinent to a royalty
accounting hereunder. Each such report shall include at least the following:

 

a)
number(s) and type(s) of Licensed Products, Licensed Processes and Licensed Services sold, leased, or performed by AgeX and/or
its Affiliates;

 

b)
total billings and payments received for Licensed Products, Licensed Processes and Licensed Services performed, sold, or leased
by AgeX and its Affiliates; and

 

c)
deductions applicable as provided in Section 1.25;

 

7.3
each such report submitted, AgeX shall pay to BioTime the royalties and other payments due and payable under this Agreement. If
no royalties or other payments shall be due, AgeX shall so report.

 

7.4
AgeX’s reporting obligations hereunder shall terminate when AgeX’s obligation to pay royalties and sublicensi

 

ARTICLE
8. PAYMENTS, RECORDS AND AUDITS

 

8.1
Payments. AgeX shall pay all royalties accruing to BioTime in U.S. Dollars, without deduction of exchange, collection,
wiring fees, bank fees, or any other charges, within [***] following the calendar quarter in which Net Sales occur. All payments
to BioTime will be made in United States dollars by wire transfer or check payable to “BioTime, Inc.” and sent to:

BioTime,
Inc.

 

1010
Atlantic Avenue, Suite 102

 

Alameda,
CA 94501

 

Attention:
Accounts Payable

 

Email:
ap@biotimeinc.com

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

    	 	 	 

    	 

    

 

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8.2
Late Payments. In the event any payments or other fees are not received by BioTime
when due hereunder, AgeX shall pay to BioTime interest charges at the rate of [***] on
the amount of such payments or fees that were not paid by the date due for the reporting period.

 

8.3
Foreign Exchange. With respect to Net Sales invoiced in a currency other than U.S. dollars, such Net Sales will
be converted into the U.S. dollar equivalent using the average conversion rate existing in the United States (as reported in The
Wall Street Journal, New York edition) during the applicable calendar quarter. If The Wall Street Journal ceases to be published,
then the rate of exchange to be used shall be that reported in such other business publication of national circulation in the
United States on which the parties reasonably agree.

 

8.4
Blocked Currency. In each country where the local currency is blocked and cannot be removed from the country, payments
under this Agreement arising from activities in that country for which AgeX, or an Affiliate thereof, does not receive payment
in U.S. currency, freely useable outside of such country, shall, notwithstanding anything to the contrary, be paid to BioTime
in U.S. Dollars

 

8.5
Records. AgeX shall keep, and cause its Affiliates, to keep, complete, true and accurate records and books containing all
particulars that may be necessary for the purpose of showing the amounts payable to BioTime hereunder. Records and books shall
be kept at AgeX’s principle place of business or the principal place of business of the appropriate division of AgeX to
which this Agreement relates.

 

8.6
Audit. Said books and the supporting data shall be open at all reasonable times for five (5) years following the end of
the calendar year to which they pertain, to inspection by BioTime, or its agents, upon reasonable prior notice to AgeX, for the
purpose of verifying AgeX’s royalty statement or compliance in other respects with this Agreement. Such access will be available
to BioTime upon not less than ten (10) days written notice to AgeX, not more than once each calendar year of the Term for BioTime,
during normal business hours, and once a year for BioTime for three years after the expiration or termination of this Agreement.
Should such inspection lead to the discovery of a greater than [***], discrepancy in reporting to BioTime’s detriment, AgeX
agrees to pay the full cost of such inspection. Whenever AgeX has its books and records audited by an independent certified public
accountant, AgeX will, within fifteen (15) days of the conclusion of such audit, provide BioTime with a written statement, certified
by said auditor, setting forth the calculation of royalties due to BioTime over the time period audited as determined from the
books and records of AgeX.

 

ARTICLE
9. PATENT PROSECUTION, MAINTENANCE, AND DEFENSE

 

9.1
Prosecution, Maintenance, and Defense. BioTime will, as allowed under the ACT Licenses, (i) use Commercially Reasonable
Efforts to prosecute and maintain the Patent Rights, and (ii) control all prosecution, filing, and defense of the Patent Rights,
provided that BioTime will use Commercially Reasonable Efforts to provide AgeX copies of documents prepared by or received from
patent counsel related to the prosecution and/or maintenance of the Patent Rights to AgeX for review and comment prior to filing
to the extent practicable under the circumstances.

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

    	 	 	 

    	 

    

 

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9.2
Patent Expenses. AgeX will be billed and will pay [***] of all reasonable, documented costs and fees and other charges
incurred by BioTime with respect to the preparation, prosecution, maintenance, and defense of the Patent Rights that are primarily
related to the AgeX Field, within thirty (30) days of receipt of invoice from the selected patent attorney or from BioTime.

 

9.3
Enforcement of the Patent Rights. The Parties agree to notify each other in writing of any actual or threatened infringement
by a third party of the Patent Rights or of any third-party claim of invalidity or unenforceability of the Patent Rights, or of
any interference or other proceeding affecting the Patent Rights. BioTime shall have the first right to prosecute and defend such
claims.

 

9.4
Cooperation. BioTime and AgeX agree to reasonably cooperate in connection with the preparation, filing, prosecution, and
maintenance of the Patent Rights. Cooperation includes, without limitation, (a) promptly executing all papers and instruments
or requiring employees of BioTime or AgeX to execute papers and instruments as reasonably appropriate to enable BioTime to file,
prosecute, and maintain Patent Rights in any country; and (b) promptly informing BioTime of matters that may affect preparation,
filing, prosecution, or maintenance of Patent Rights (such as becoming aware of an additional inventor who is not listed as an
inventor in a patent application).

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

    	 	 	 

    	 

    

 

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9.5
New Patents, Inventions, and Discoveries.

 

a)
AgeX shall have the right to file and prosecute new patent applications (and to obtain new patents) covering Licensed Products,
Licensed Processes, and Licensed Services, and any other subject matter, with respect to any Know How and any other technology,
invention, or discovery made by AgeX or any of its Affiliates using Patent Rights and Know How. AgeX shall, and hereby does, grant
BioTime an exclusive license to the new patents in the BioTime Exclusive Field and a nonexclusive license in the BioTime Non-Exclusive
Field developed from the Effective Date for a period of [***].

 

b)
AgeX and BioTime shall jointly file and prosecute new applications covering Licensed Products, Licensed Processes, and Licensed
Services, and any other subject matter, with respect to any Know-How and any other technology, invention, or discovery made jointly
by AgeX and BioTime using Patent Rights and/or Know-How. The Parties will share in the costs for filing, and prosecuting any jointly
owned inventions relating to Licensed Products, Licensed Processes, and Licensed Services and any other subject matter, with respect
to any Know-How and any other technology, invention, or discovery using Patent Rights and/or Know-How.

 

9.6
Patent Challenge. In the event AgeX, or its Affiliate(s) challenges the validity, enforceability or scope of any of any
Patent Right or claims thereof by legal or administrative action or proceeding or otherwise, or causes or enables any Third Party
to undertake such a challenge (a “Patent Challenge”):

 

(a)
BioTime shall be entitled to terminate this Agreement on written notice to AgeX;

 

(b)
AgeX shall provide [***] prior written notice of such Patent Challenge and provide BioTime all materials, information, opinions,
and analyses to be used to support such challenge;

 

(c)
AgeX shall promptly reimburse all costs and expenses (including attorneys’ fees) incurred by or on behalf of BioTime with
respect to any defense against such Patent Challenge; and

 

(d)
all amounts due or payable under ARTICLE 4 will be doubled with respect to any payments due or triggered during the pendency of
any Patent Challenge. If the outcome of such Patent Challenge is a determination against the party or parties making, causing,
or enabling such Patent Challenge (the “Challenging Party”), such payments shall remain at such doubled
amount for the remainder of the Term. If the outcome of such Patent Challenge is a determination in favor of the Challenging Party,
AgeX will have no right to recoup any amounts paid under this Agreement before or during the pendency of such Patent Challenge.

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

    	 	 	 

    	 

    

 

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ARTICLE
10. PATENT MARKING

 

AgeX
shall permanently and legibly mark all AgeX Products made, used, sold, or otherwise disposed of by AgeX, any Affiliate thereof,
, or their containers, (i) in accordance with patent notice appropriate under Title 35, United States Code or any similar law
in any foreign jurisdiction and (ii) with any other notice of patent rights reasonably necessary, in any country where AgeX Products
are sold, to (a) enable Patent Rights (to the extent, in each case, relating to AgeX Products) to be enforced to their full extent
or (ii) ensure the availability of all potential legal or equitable remedies with respect to any infringement of any Patent Rights
(to the extent, in each case, relating to AgeX Products) by any Third Party.

 

ARTICLE
11. TERMINATION BY BIOTIME

 

11.1
BioTime may terminate this Agreement and the rights, privileges and license granted hereunder by written notice upon a breach
or default of this Agreement by AgeX, as follows:

 

a)
non-payment of any amounts due which is not cured within [***] of receipt of written notice of such non-payment wherein said notice
is delivered by registered mail; or

 

b)
breach of any obligation which is not cured within [***] of a written request to remedy such breach wherein said request is delivered
by registered mail, or if the breach cannot be cured within said [***] period, failure of AgeX within said [***] period to proceed
with reasonable promptness thereafter to cure the breach.

 

11.2
Such termination under 11.1(a) or 11.1(b) shall become automatically effective unless AgeX shall have cured any such material
breach or default prior to the expiration of the applicable cure period.

 

11.3
AgeX shall have the right to terminate this Agreement at any time on [***] prior notice to BioTime, and upon payment of all amounts
due BioTime through the effective date of the termination.

 

11.4
Upon termination of this Agreement for any reason, nothing herein shall be construed to release either party from any obligation
that matured prior to the effective date of such termination; and Article 6, Article 9, Article 12, and any other Sections or
provisions which by their nature are intended to survive termination, shall survive any such termination.

 

11.5
Obligations After Termination. No termination of this Agreement by BioTime shall relieve AgeX of its obligation to pay any monetary
obligation due or owing at the time of such termination and shall not impair any accrued right of BioTime. AgeX shall pay all
attorneys’ fees and costs incurred by BioTime in enforcing any obligation of AgeX or accrued right of BioTime.

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

    	 	 	 

    	 

    

 

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ARTICLE
12. DISPOSITION OF LICENSED PRODUCTS ON HAND

 

Upon
expiration or termination of this Agreement by either party, AgeX shall provide BioTime with a written inventory of all AgeX Products
in process of manufacture, in use or in stock. AgeX may dispose of any such AgeX Products within the [***] period following such
expiration or termination, provided, however, that AgeX shall pay royalties and render reports to BioTime thereon in the manner
specified herein.

 

ARTICLE
13. WARRANTY BY BIOTIME

 

13.1
Right to License. BioTime warrants that it has the lawful right to grant the license set forth in this Agreement.

 

13.2
EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, BIOTIME, ITS DIRECTORS, OFFICERS, AGENTS, SHAREHOLDERS, EMPLOYEES,
AND AFFILIATES MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED
TO WARRANTIES OF MERCHANT ABILITY, FITNESS FOR A PARTICULAR PURPOSE, VALIDITY OF PATENT RIGHTS CLAIMS, ISSUED OR PENDING, AND
THE ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE. NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS A REPRESENTATION
MADE OR WARRANTY GIVEN BY BIOTIME THAT THE PRACTICE BY AGEX OF THE LICENSE GRANTED HEREUNDER SHALL NOT INFRINGE THE PATENT RIGHTS
OF ANY THIRD PARTY. IN NO EVENT SHALL BIOTIME, ITS DIRECTORS, OFFICERS, AGENTS, SHAREHOLDERS, EMPLOYEES AND AFFILIATES BE LIABLE
FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING ECONOMIC DAMAGE OR INJURY TO PROPERTY AND LOST PROFITS, REGARDLESS
OF WHETHER BIOTIME SHALL BE ADVISED, SHALL HAVE OTHER REASON TO KNOW, OR IN FACT SHALL KNOW OF THE POSSIBILITY OF SUCH DAMAGES.

 

13.3
AgeX agrees to maintain insurance or self-insurance that is reasonably adequate to fulfill any potential obligation to the indemnified
parties. AgeX shall continue to maintain such insurance or self-insurance during the term of this Agreement and after the expiration
or termination of this Agreement for a period of five (5) years.

 

13.4
Limitations. Nothing in this Agreement shall be construed as:

 

a)
a warranty or representation by BioTime as to the validity or scope of any Patent Rights.

 

b)
a warranty or representation by BioTime that anything made, used, sold or otherwise disposed of pursuant to any license granted
under this Agreement is or will be free from infringement of intellectual property rights of third parties.

 

c)
an obligation by BioTime to bring or prosecute actions or suits against third parties for patent infringement, except as may expressly
be provided in ARTICLE 14 hereof.

 

d)
conferring by implication, estoppel or otherwise any license or rights under any patents of BioTime other than Patent Rights.

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

    	 	 	 

    	 

    

 

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ARTICLE
14. INFRINGEMENT

 

14.1
Knowledge of Infringement. If either party learns of a claim of infringement of or by any Patent Rights with respect to
the rights licensed to AgeX under this Agreement, that party shall give written notice of such claim to the other party. BioTime
shall, as between the parties, have the sole and exclusive right to prosecute or terminate such infringement or otherwise enforce
the Patent Rights against any such infringer. AgeX may not bring suit for any infringement of the Patent Rights without BioTime’s
prior written consent. No settlement, consent judgment or other voluntary final disposition of any suit with respect to any infringement
of any Patent Right may be entered into without the consent of BioTime.

 

14.2
Expense and Proceeds from Legal Action. Any legal action concerning any infringement of the rights to Patent Rights granted
hereunder shall be at the expense of the party by whom suit is filed, hereinafter referred to as the “Litigating Party”.
Any damages or costs recovered by the Litigating Party in connection with any such legal action filed by it hereunder, and remaining
under the Litigating Party is reimbursed for its costs and expenses reasonably incurred in the lawsuit, and after any royalties
or other payments due to BioTime under ARTICLE 4 are paid, shall be divided as follows: [***] of such damages or recoveries concerning
the infringement of rights granted to AgeX hereunder to AgeX, with BioTime retaining the remainder.

 

14.3
Cooperation in Litigation Proceedings. AgeX and BioTime shall reasonably cooperate with each other in litigation proceedings
instituted hereunder, provided that such cooperation shall be at the expense of the Litigating Party, and such litigation shall
be controlled by the Litigating Party.

 

ARTICLE
15. INSURANCE

 

15.1
Insurance Requirements. Beginning at the time any AgeX Product is being distributed, sold, or administered to humans (including,
in each case, for the purpose of obtaining any required regulatory approvals) by AgeX, or an Affiliate thereof, AgeX will, at
its sole cost and expense, procure and maintain commercial general liability insurance issued by an insurance carrier with an
A.M. Best rating of A or better in amounts not less than [***]. AgeX will have the Indemnitees named as additional insureds under
such insurance. All rights of subrogation will be waived against BioTime and its insurers. Such commercial general liability insurance
will provide (i) product liability coverage; (ii) broad form contractual liability coverage for AgeX’s indemnification under
this Agreement; and (iii) coverage for litigation costs. The specified minimum insurance amounts will not constitute a limitation
on AgeX’s obligation to indemnify the Indemnitees under this Agreement.

 

15.2
Evidence of Insurance and Notice of Changes. AgeX will provide BioTime with written evidence of such insurance upon request
of BioTime. AgeX will provide BioTime with written notice of at least [***] prior to the cancellation, non-renewal, or material
change in such insurance.

 

15.3
Continuing Insurance Obligations. AgeX will maintain such commercial general liability insurance beyond the expiration
or termination of this Agreement during (i) the period that any AgeX Product(s) developed pursuant to this Agreement is being
commercially distributed or sold by AgeX, any Affiliate thereof, or any agent of any of the foregoing; and (ii) for [***] after
such period.

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

    	 	 	 

    	 

    

 

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ARTICLE
16. WAIVER

 

No
waiver by either party hereto of any breach or default of any of the covenants or agreements herein set forth shall be deemed
a waiver as to any subsequent and/or similar breach or default.

 

ARTICLE
17. ASSIGNABILITY

 

Neither
this Agreement, nor any rights or obligations hereunder, are assignable or otherwise transferable, in whole or in part (including
by operation of law, merger, or other business combination), by AgeX without the prior written consent of BioTime. The failure
of AgeX to comply with the terms of this paragraph shall be grounds for termination of the Agreement by BioTime under Section
_. Any permitted assignee of either Party shall, as a condition to such assignment, assume all obligations of its assignor arising
under this Agreement following such assignment. Any purported assignment by a party of this Agreement, or any of such party’s
rights or obligations hereunder, in violation of this Article 17 shall be void. In the event of any assignment of this Agreement
by a party requiring the other party’s consent under this ARTICLE 17, the assigning Party shall pay the other Party [***]
upon the consummation of such assignment. In the event that written consent is provided by BioTime for the assignment of this
Agreement in connection with, (a) assignment of this Agreement by AgeX pursuant to this ARTICLE 17, or (b) any sale by AgeX of
all or substantially all of a portion of its assets or business constituting a particular AgeX Product line or business unit engaged
in the Research, Development or Commercialization of any AgeX Product, AgeX will pay BioTime a non-refundable fee of [***]. A
Change of Control will not be deemed an assignment.

 

ARTICLE
18. INDEMNIFICATION; LIMITATION OF LIABILITY

 

18.1
Indemnity by AgeX. AgeX shall indemnify, defend and hold harmless BioTime, its Affiliates (other than AgeX and AgeX’s
subsidiaries), and their respective officers, directors, employees and agents (each a “BioTime Indemnified Party”),
from and against any and all Claims arising from or occurring as a result of the death or injury of any person caused or resulting
(or allegedly caused or resulting) from the use of any AgeX Product:

 

(a)
any default by AgeX of its obligations under this Agreement;

 

(b)
any breach by AgeX of any of its representations and warranties set forth in this Agreement; and

 

(c)
any negligent act or omission of AgeX in connection with the performance of its obligations under this Agreement;

 

Notwithstanding
the foregoing, AgeX shall not be required to indemnify BioTime, its Affiliates, and their respective officers, directors, employees
and agents for any Claim to the extent such Claim are attributable to any of the matters as to which BioTime has an obligation
to indemnify AgeX or for which the negligence, willful misconduct, or violation of any law by any Person other than AgeX an AgeX
Indemnified Party contributed to the death or injury that is the subject of the Claim.

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

    	 	 	 

    	 

    

 

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18.2
Indemnity by BioTime. BioTime shall indemnify, defend and hold harmless AgeX, its subsidiaries and their respective officers,
directors, employees and agents, from and against any and all costs, claims, damages and expenses (including reasonable attorneys’
fees and other expenses of legal proceedings) (collectively, “Claims”), in connection with any and all
suits, actions, investigations, claims or demands of Third Parties arising from or occurring as a result of death or injury of
any person caused or resulting from the use of any BioTime Product. Notwithstanding the foregoing, BioTime shall not be required
to indemnify AgeX, its Affiliates, and their respective officers, directors, employees and agents for any Claims to the extent
such Claims are attributable to any of the matters as to which AgeX has an obligation to indemnify BioTime or for which AgeX’s
negligence or willful misconduct contributed to the Claim.

 

18.3
Indemnification Procedures.

 

a)
Notice of Claim. In the event of any claim, action or proceeding for which a Person is entitled to indemnity hereunder,
the Person seeking indemnity (“Claimant”) shall promptly notify the relevant Party (“Indemnitor”)
of such matter in writing, but in no event shall the Indemnitor be liable for any Claim that result from any delay in providing
such notice.

 

b)
Control of Defense. As its option, Indemnitor may then assume responsibility for and shall have full control of such matter
by giving notice to Claimant within thirty (30) days after the Indemnitor’s receipt of notice from Claimant. The assumption
of the defense of a Claim by the Indemnitor shall not be construed as an acknowledgment that Indemnitor is liable to indemnify
Claimant in respect of the Third Party claim, nor shall it constitute a waiver by Indemnitor of any defenses it may assert against
Claimant’s claim for indemnification. Upon assuming the defense of a Third Party claim, Indemnitor may appoint as lead counsel
in the defense of the Claim any legal counsel selected by Indemnitor. In the event Indemnitor assumes the defense of a Third Party
claim, Claimant shall immediately deliver to Indemnitor all original notices and documents (including court papers) received by
Claimant in connection with the Third Party claim. Should Indemnitor assume the defense of a Third Party claim, except as provided
below, Indemnitor shall not be liable to Claimant for any legal expenses subsequently incurred by such Claimant in connection
with the analysis, defense or settlement of the Third Party claim. In the event that it is ultimately determined that Indemnitor
is not obligated to indemnify, defend or hold harmless Claimant from and against the Third Party claim, Claimant shall reimburse
Indemnitor for any and all costs and expenses (including attorneys’ fees and costs of suit) and any Third Party claims incurred
by Indemnitor in its defense of the Third Party claim. Without limiting the foregoing, any Claimant shall be entitled to participate
in, but not control, the defense of such Claim and to employ counsel of its choice for such purpose; provided, however,
that such employment shall be at Claimant’s own expense unless (a) the employment thereof has been specifically authorized
by Indemnitor in writing, (b) Indemnitor has failed to assume the defense and employ counsel in accordance with this Section 14.4.2
(in which case Claimant shall control the defense) or (c) the interests of Claimant and Indemnitor with respect to such Claim
are sufficiently adverse to prohibit the representation by the same counsel of both Parties under applicable law, ethical rules
or equitable principles.

 

    	 	 	 

    	 

    

 

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c)
Settlement. With respect to any Claim relating solely to the payment of money damages in connection with a Claim and that
shall not result in Claimant’s becoming subject to injunctive or other relief or otherwise adversely affecting the business
of Claimant in any manner, and as to which Indemnitor shall have acknowledged in writing the obligation to indemnify Claimant
hereunder, Indemnitor shall have the sole right to consent to the entry of any judgment, enter into any settlement or otherwise
dispose of such Claim, on such terms as Indemnitor, in its sole discretion, shall deem appropriate. With respect to all other
Claim, where Indemnitor has assumed the defense of the Claim in accordance with Section 9.4(b), Indemnitor shall have authority
to consent to the entry of any judgment, enter into any settlement or otherwise dispose of such Claim, provided it obtains
the prior written consent of Claimant (which consent shall not be unreasonably withheld or delayed). Indemnitor shall not be liable
for any settlement or other disposition of a Claim by Claimant that is reached without the written consent of Indemnitor. Regardless
of whether Indemnitor chooses to defend or prosecute any Third Party claim, no Claimant shall admit any liability with respect
to or settle, compromise or discharge, any Claim without the prior written consent of Indemnitor, such consent not to be unreasonably
withheld or delayed.

 

d)
Cooperation. Regardless of whether Indemnitor chooses to defend or prosecute any Third Party claim, Claimant shall cooperate
in the defense or prosecution thereof and shall furnish such records, information and testimony, provide such witnesses and attend
such conferences, discovery proceedings, hearings, trials and appeals as may be reasonably requested in connection therewith.
Such cooperation shall include access during normal business hours afforded to Indemnitor to, and reasonable retention by Claimant
of, records and information that are reasonably relevant to such Third Party claim, and making employees and agents available
on a mutually convenient basis to provide additional information and explanation of any material provided hereunder, and Indemnitor
shall reimburse Claimant for all its reasonable out-of-pocket expenses in connection therewith.

 

e)
Expenses. Except as provided above, the costs and expenses, including fees and disbursements of counsel, incurred by Claimant
in connection with any claim shall be reimbursed on a calendar quarter basis by Indemnitor, without prejudice to Indemnitor’s
right to contest Claimant’s right to indemnification and subject to refund in the event Indemnitor is ultimately held not
to be obligated to indemnify Claimant.

 

18.4
Limitation of Liability. UNDER NO CIRCUMSTANCES SHALL A PARTY HERETO BE LIABLE TO THE OTHER PARTY FOR CONSEQUENTIAL, INCIDENTAL,
PUNITIVE OR SPECIAL DAMAGES IN RESPECT OF PERFORMANCE OF THIS AGREEMENT; PROVIDED, HOWEVER, THAT ALL AMOUNTS THAT AN INDEMNIFIED
PERSON IS REQUIRED TO PAY TO ANY THIRD PARTY AS THE RESULT OF A MATTER FOR WHICH SUCH INDEMNIFIED PERSON IS ENTITLED TO BE INDEMNIFIED
UNDER THIS ARTICLE SHALL BE CONSIDERED TO BE DIRECT DAMAGES WHICH ARE INDEMNIFIABLE HEREUNDER.

 

    	 	 	 

    	 

    

 

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ARTICLE
19. NOTICES

 

Any
payment, notice or other communication required or permitted to be given to either party hereto shall be in writing and shall
be deemed to have been properly given and effective: (a) on the date of delivery if delivered in person during recipient’s
normal business hours; or (b) on the date of attempted delivery if delivered by courier, express mail service or first-class mail,
registered or certified. Such notice shall be sent or delivered to the respective addresses given below, or to such other address
as either party shall designate by written notice given to the other party as follows:

 

In
the case of AgeX:

 

AgeX
Therapeutics, Inc.

1010
Atlantic Avenue, Suite 102

Alameda,
CA 94501

Attention: Michael D. West, Ph.D., CEO

Email: mwest@biotimeinc.com

 

In
the case of BioTime:

 

BioTime,
Inc.

1010
Atlantic Avenue, Suite 102

Alameda,
CA 94501

Attention:
Aditya Mohanty, CO-CEO

Email:
amohanty@biotimeinc.com

 

and

 

BioTime,
Inc.

1010
Atlantic Avenue, Suite 102

Alameda,
CA 94501

Attention:
General Counsel

Email:
legal@biotimeinc.com

 

ARTICLE
20. REGULATORY COMPLIANCE

 

20.1
Registration of Agreement. When required by local/national law, AgeX shall register this Agreement, pay all costs and legal
fees connected therewith, and otherwise insure that the local/national laws affecting this Agreement are fully satisfied.

 

20.2
Compliance With Law. AgeX shall comply, and shall ensure that its Affiliates comply, with all applicable laws, rules and
regulations in the exercise of its rights and performance of its obligations hereunder, including but not limited to all laws,
rules, and regulations concerning the export and/or management of technology or information. AgeX understands that the Arms Export
Control Act (“AECA”), including its implementing International Traffic In Arms Regulations (“ITAR”)
and the Export Administration Act (“EAA”), including its Export Administration Regulations (“EAR”),
are some (but not all) of the laws and regulations that comprise the U.S. export laws and regulations. AgeX further understands
that the U.S. export laws and regulations include (but are not limited to): (1) ITAR and EAR product/service/data-specific requirements;
(2) ITAR and EAR ultimate destination-specific requirements; (3) ITAR and EAR end user-specific requirements; (4) ITAR and EAR
end use-specific requirements; (5) Foreign Corrupt Practices Act; and (6) anti-boycott laws and regulations. AgeX will comply
with all then-current applicable export laws and regulations of the U.S. Government (and other applicable U.S. laws and regulations)
pertaining to the AgeX Product(s) (including any associated products, items, articles, computer software, media, services, technical
data, and other information). AgeX certifies that it will not, directly or indirectly, export (including any deemed export), nor
re-export (including any deemed re-export) the AgeX Product(s) (including any associated products, items, articles, computer software,
media, services, technical data, and other information) in violation of U.S. export laws and regulations or other applicable U.S.
laws and regulations.

 

    	 	 	 

    	 

    

 

Execution
Version

 

ARTICLE
21. GOVERNING LAW

 

This
Agreement shall be governed by and construed in accordance with the laws of the State of California, without giving effect to
any conflict of laws principles or rules.

 

ARTICLE
22. RELATIONSHIP OF PARTIES

 

In
assuming and performing the obligations of this Agreement, AgeX and BioTime are each acting as independent parties and neither
shall be considered or represent itself as a joint venture, partner, agent or employee of the other.

 

ARTICLE
23. USE OF NAMES

 

23.1
By AgeX. AgeX may not use the name of BioTime in connection with any name, brand or trademark related to Licensed Products,
Licensed Process or Licensed Services without prior written consent.

 

23.2
By BioTime. BioTime may not use AgeX’s name in connection with BioTime’s publicity related to their respective
intellectual property and commercialization achievements without prior written consent.

 

ARTICLE
24. DISPUTE RESOLUTION

 

24.1
Good Faith Discussions. In the event that any controversy or claim shall arise between the Parties under, out of, in connection
with, or relating to this Agreement or the breach thereof, the Party initiating such controversy or making such claim shall provide
to the other Party written notice containing a brief and concise statement of the initiating Party’s claims, together with
relevant facts supporting them. During a period of sixty (60) days, or such longer period as may be mutually agreed upon in writing
by the Parties, following the date of said notice, the Parties shall make good faith efforts to settle the dispute. Such efforts
may include, but shall not be limited to, full presentation of both Parties’ claims and responses, with or without the assistance
of counsel, before the chief executive officers (or their designees) of the Parties.

 

    	 	 	 

    	 

    

 

Execution
Version

 

24.2
Arbitration. In the event that the Parties have been unable to reach accord using the procedures set forth in Section 13.1
and only if such is the case, either Party may seek final resolution of the matter through binding arbitration, and only through
binding arbitration. The failure of a Party to comply with the provisions of Section 13.2 with respect to any controversy or claim
shall constitute an absolute bar to the institution of any proceedings, by arbitration or otherwise, with respect to such controversy
or claim. Any such arbitration shall be held in San Francisco, California in the English language before a panel of three (3)
arbitrators in accordance with the then existing Rules of Arbitration of the American Arbitration Association (the “AAA”)
and judgment upon the award rendered by the arbitrators may be entered or enforced in any court having jurisdiction thereof. In
any arbitration proceeding hereunder, each Party shall select one arbitrator and the arbitrators selected by the Parties shall
then select a third arbitrator, who shall have at least fifteen (15) years’ experience in pharmaceutical patent licensing.
The arbitrators shall permit the Parties to have discovery to the extent permitted by the rules of the AAA. The decision of the
arbitrators shall be final and binding on the Parties and shall be accompanied by a written opinion of the arbitrators explaining
the arbitrators’ rationale for their decision. The intent of the Parties is that except for the entering of an arbitration
order in a court of competent jurisdiction, disputes shall be resolved finally in arbitration as provided above, without appeal,
and without recourse to litigation in the courts.

 

24.3
Exceptions. Notwithstanding the foregoing provisions of Sections 13.1 and 13.2, either Party may initiate an action before
any court having competent jurisdiction in order to obtain interim or conservatory relief, such as an order to preserve the status
quo and to avoid incurring irreparable harm pending the resolution of any dispute that is submitted to arbitration, to prevent
or enjoin a breach or threatened breach of confidentiality or to enforce provisions of this Agreement relating to ownership rights
in intellectual property without complying with the procedures set forth in Sections 25.1 and 25.2.

 

ARTICLE
25. GENERAL PROVISIONS

 

25.1
The headings of the several sections are inserted for convenience of reference only and are not intended to be a part of or to
affect the meaning or interpretation of this Agreement.

 

25.2
This Agreement shall not be binding upon the parties until it has been signed herein below by or on behalf of each party, and
as of the Effective Date.

 

25.3
No amendment or modification of this Agreement shall be valid or binding upon the parties unless made in writing and signed by
both parties.

 

25.4
This Agreement embodies the entire understanding of the parties, and supersede all previous communications, representations or
understandings, either oral or written, between the parties relating to the subject matter thereof.

 

25.5
The provisions of this Agreement are severable, and in the event that any provision of this Agreement shall be determined to be
invalid or unenforceable under any controlling body of the law, such invalidity or unenforceability shall not in any way affect
the validity or enforceability of the remaining provisions hereof.

 

25.6
This Agreement may be signed in counterparts, each of which when taken together shall constitute one fully executed document.
Each individual executing this Agreement on behalf of a legal Person does hereby represent and warrant to each other person so
signing that he or she has been duly authorized to execute this Agreement on behalf of such Person.

 

25.7
In the event of any litigation, arbitration, judicial reference or other legal proceeding involving the parties to this Agreement
to enforce any provision of this Agreement, to enforce any remedy available upon default under this Agreement, or seeking a declaration
of the rights of either party under this Agreement, the prevailing party shall be entitled to recover from the other such attorneys’
fees and costs as may be reasonably incurred, including the costs of reasonable investigation, preparation and professional or
expert consultation incurred by reason of such litigation, arbitration, judicial reference, or other legal proceeding.

 

[Signature
page follows]

 

    	 	 	 

    	 

    

 

Execution Version

 

IN
WITNESS WHEREOF, BioTime and AgeX have executed this Agreement by their respective officers hereunto duly authorized, on the day
and year hereinafter written.

 

	AGEX
    THERAPEUTICS, INC.	 	BIOTIME,
    INC.
	 	 	 	 	 
	By
    	/s/
    Michael D. West	 	By
    	/s/
    Aditya P. Mohanty
	 	             (Signature)	 	 	             (Signature)
	 	 	 	 	 
	Name:	Michael
    D. West	 	Name:	Aditya
    P. Mohanty
	 	 	 	 	 
	Title:	Chief
    Executive Officer	 	Title:	Co-Chief
    Executive Officer

 

[Signature
page of the ACT Sublicense Agreement]

 

    	 	 	 

    	 

    

 

Execution
Version

 

EXHIBIT
A

 

Cells
or Cell Lines

 

	ACT
    No.	Cell
    Line
	[***]	[***]

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

    	 	 	 

    	 

    

 

Execution
Version

 

EXHIBIT
B 

 

	ACT
    No.	Cell
    Line
	[***]	[***]

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

    	 	 	 

    	 

    

 

Execution
Version

 

EXHIBIT
C

 

Patent
Rights

 

[***]

 

[***]

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY “[***],” HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.inmune_ex101.htm

EXHIBIT 10.1
  
  
  
  
 Subscriber: ________________________________________
  
  
  
  
  
 INMUNE BIO INC.
  
 SUBSCRIPTION AGREEMENT
  
  
  
  
  
  
  	 
	 
	 
 
	 INMUNE BIO INC.

  
  
 SUBSCRIPTION AGREEMENT
  
 This Subscription Agreement (the “Subscription Agreement”) is entered into by and between INmune Bio Inc., a Nevada corporation (the “Company” and/or “INmune”), and the Subscriber(s) whose name appears on the signature page to this Subscription Agreement (the “Subscriber” and, together with other subscribers to the Offering (as hereinafter defined), “Investors”).
  
 This Subscription Agreement is executed and delivered in connection with the offering of up to 500 units (the “Offering” and the “Units,” respectively) at $10,000 per Unit for gross Offering proceeds of up to $5,000,000, each Unit consisting of 6,666 shares of the Company’s common stock, par value $.001 per share (the “Common Stock”). The Units and the Common Stock are referred to herein as the “Securities”. The Offering has a minimum of $500,000 (the “Minimum Offering”) and a maximum of $5,000,000 (the “Maximum Offering”). The Company is offering the Units on a “best efforts-all or none” basis as to the Minimum Offering and on a “best efforts” basis thereafter up to the Maximum Offering. The Company may hold one or more closings at any time after the Minimum Offering is subscribed for (each a “Closing”), in its sole discretion.
  
 The Units are being offered to Investors by the Company and may be offered through selected selling agents as may be engaged by the Company. The terms of the Offering are more fully described in the Confidential Private Placement Memorandum dated November 15, 2016 (the “Memorandum”).
  
 The Offering will commence on the date of the Memorandum and will continue until January 15, 2017 or the earlier sale of all of the Units or the Company’s termination or withdrawal of the Offering (the “Offering Period”). The Company may extend the Offering Period in its sole discretion, without notice to or consent of Investors, for an additional period of 60 days.
  
 The Company will appoint an escrow agent to hold all subscription funds in a non-interest bearing escrow account. In the event a prospective Investor’s subscription is not accepted for any reason, in the sole discretion of the Company, the escrow agent will return the purchase price to the prospective Investor without interest or deduction.
  
 This Subscription Agreement and the Form of Purchaser Questionnaire provided herewith are collectively referred to as the “Transaction Documents”).
  
 A.                   General.
  
 1.        Subscriber hereby subscribes for and agrees to purchase from the Company, and the Company agrees to sell to Subscriber, the dollar amount of Units set forth on the signature page hereof.
  
 2.        Subscriber herewith tenders to the Company the entire amount of the purchase price by check made payable to the order of “INmune Bio Inc. Escrow,” or Subscriber has paid the entire amount of the purchase price by wire transfer of immediately available funds to:
  
 Bank Name:   CitiBank, N.A
 530 Central Avenue
 Cedarhurst, NY 11516
 ABA Number: 021000089
 Swift code: CitiUS33
 Account Number: 4996945212
 Account Name: INmune Bio Inc. Escrow
 Re: Private Placement - (Subscriber’s Name)
  
 3.        Subscriber herewith delivers to the Company a completed and signed Subscription Agreement and completed and signed Purchaser Questionnaire (“Qualified Purchaser Questionnaire”) for the purchase of the Units.
  
  	 
	Page2
	 
 
	 INMUNE BIO INC.

  
 Such funds will be held for the Subscriber’s benefit. Subscriber will not be a stockholder until such time as Subscriber’s subscription is accepted by the Company and a Closing of the purchase and sale of the Units being subscribed for by Subscriber takes place. Until such time as Subscribers subscription is accepted or rejected, as the case may be, this subscription shall be irrevocable and Subscriber will not have access to its subscription funds.
  
 4.        For a period of two years from the final closing date of this Offering, in the event the Company sells shares of Common Stock or the right to receive Common Stock at a price per share which values the Company at less than $10,000,000, then the Company will issue additional shares of Common Stock to each Investor in this Offering such that the Investor will receive the same effective price per share as the investors in any such future offering.
  
 B.                   Securities offered have not been registered under the Securities Act of 1933, as amended; registration rights
  
 Subscriber acknowledges that (i) the Securities have not been registered under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”), or the securities laws of any state; (ii) absent registration, any resale or other transfer of the Securities must be made in compliance with the Securities Act; (iii) the Securities are being offered for sale in reliance upon exemptions from registration contained in the Securities Act and applicable state securities laws; and (iv) the Company's reliance upon such exemption is based in part upon Subscriber's representations, warranties and agreements contained in this Subscription Agreement and in the Qualified Purchaser Questionnaire that Subscriber is also delivering to the Company.
  
 The Company agrees to file a registration statement under the Securities Act of 1933 (the “Registration Statement”), within five months after the final closing of this Offering and will seek to have such Registration Statement declared effective within six months of filing (the “Registration Deadlines”). The Registration Statement will register the resale of the shares of Common Stock offered herby. The Registration Statement will also seek to register additional shares of Common Stock for sale directly by the Company, with an intent to apply for inclusion on the Nasdaq stock market or lesser market if we do not meet Nasdaq requirements. If such listing is achieved, each investor in this Offering agrees not to sell shares of Common Stock purchased in this Offering for a period of at least six months from the effective date of such Registration Statement. If company does not file Registration Statement within five months after the final closing of this Offering, If the Company fails to meet either of the Registration Deadlines, each investor will be entitled to receive a cash payment in the amount of 1% of the amount of the investment for each month that a Registration Deadline is not met, up to a maximum of 12%.
  
 C.                   Representations, Warranties, Acknowledgements and Agreements
  
 1.         In order to induce the Company to accept this Subscription Agreement, Subscriber represents and warrants to, and acknowledges and covenants with, the Company as follows:
  
 a.       Subscriber understands that (i) this Subscription Agreement may be accepted or rejected in whole or in part by the Company in its sole and absolute discretion, and (ii) this Subscription Agreement shall survive Subscriber's death, disability or insolvency, except that Subscriber shall have no obligation in the event that this Subscription Agreement is rejected by the Company. In the event that the Company does not accept Subscriber's subscription, or if the Offering is terminated for any reason, Subscriber's subscription payment (or portion thereof, as the case may be) will be returned to Subscriber without interest or deduction.
  
 b.      Subscriber has carefully read this Subscription Agreement, the Qualified Purchaser Questionnaire, and the Memorandum (including, without limitation, the risks set forth under the heading “Risk Factors”). In making the decision to invest in the Units, Subscriber has relied upon the information provided by the Company herein and in the Memorandum (the “Offering Materials”).
  
  	 
	Page3
	 
 
	 INMUNE BIO INC.

  
 Subscriber has been advised to discuss with his, her, or its counsel the representations, warranties and agreements which Subscriber is making by signing this Subscription Agreement, the applicable limitations upon Subscriber's resale of the Securities, and the investment, tax and legal consequences of this Subscription Agreement. No oral or written representations have been made and no oral or written information has been furnished to the Subscriber or his advisor(s) in connection herewith that were in any way inconsistent with the information set forth in the Offering Materials and Subscriber disclaims reliance on any statements made or information provided by the Company, the Selling Agent(s) or any of their respective employees, counsel or agents or any other person or entity in the course of Subscriber’s consideration of an investment in the Units other than those set forth in the Offering Materials. AN INVESTMENT IN THE UNITS INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE UNDERTAKEN ONLY BY PERSONS WHOSE FINANCIAL RESOURCES ARE SUFFICIENT TO ENABLE THEM TO ASSUME SUCH RISK AND TO BEAR THE TOTAL LOSS OF THEIR INVESTMENT.
  
 c.        Subscriber understands that no federal or state agency has made any finding or determination regarding the fairness of the Offering, or any recommendation or endorsement of the Securities.
  
 d.       Subscriber is purchasing the Units for Subscriber's own account, with the intention of holding the Units for investment purposes, with no present intention of dividing or allowing others to participate in this investment or of reselling or otherwise participating, directly or indirectly, in a distribution of the Securities; and Subscriber agrees not to make any sale, transfer or other disposition of the Securities without registration under the Securities Act and applicable state securities laws unless counsel acceptable to the Company is of the opinion that such registration is not required. Subscriber is not acquiring the Securities, or any interest therein, on behalf of another person and Subscriber, if an entity, was not formed for the purpose of purchasing the Units.
  
 e.        Subscriber's overall commitment to investments which are not readily marketable is not disproportionate to Subscriber's net worth, and Subscriber's investment in the Units will not cause such overall commitment to become excessive.
  
 f.        Subscriber, if an individual, has adequate means of providing for his or her current needs and personal and family contingencies and has no need for liquidity in his or her investment in the Units.
  
 g.        Subscriber is an “Accredited Investor” as that term is defined in Rule 501(a) under Regulation D promulgated by the SEC under the Securities Act. Subscriber is financially able to bear the economic risk of this investment, including the ability to afford holding the Securities for an indefinite period or to afford a complete loss of this investment.
  
 h.       The address shown on the signature page to this Subscription Agreement is Subscriber's principal residence if he or she is an individual, or its principal business address if a corporation or other entity.
  
 i.         Subscriber, together with any offeree representatives of Subscriber (as identified in the Qualified Purchaser Questionnaire) has such knowledge and experience in financial business matters as to be capable of evaluating the merits and risks of an investment in the Securities. Subscriber acknowledges that the Offering Materials may not contain all information that is necessary to make an investment decision with respect to the Company and the Units and that Subscriber must rely on his, her or its own examination of the Company and the terms and conditions of the Offering prior to making any investment decision with respect to the Units.
  
  	 
	Page4
	 
 
	 INMUNE BIO INC.

  
 j.         Subscriber has been given the opportunity to ask questions of and receive answers from the Company and its executive officers concerning the business and operations of the Company and the terms, provisions, and conditions of the Offering and to obtain any such additional information that Subscriber deems necessary or advisable to verify the accuracy of the information contained in the Offering Materials, or such other information as Subscriber desired in order to evaluate an investment in the Company; and Subscriber availed himself, herself or itself of such opportunity to the extent considered appropriate in order to evaluate the merits and risks of the proposed investment. To the extent that any such information has not been publicly disclosed, Subscriber agrees to keep all such information confidential unless required to be disclosed by a court or administrative body of competent jurisdiction or until such information is publicly disclosed by the Company.
  
 k.       Subscriber has made an independent evaluation of the merits of the investment and acknowledges the highly speculative nature of an investment in the Units including, without limitation, the information under “Risk Factors” in the Memorandum.
  
 l.         The information provided by Subscriber in the Qualified Purchaser Questionnaire is true, complete and accurate and Subscriber has duly executed and delivered such Qualified Purchaser Questionnaire and any applicable exhibits thereto.
  
 m.      Subscriber has taken no action that would give rise to any claim by any person for brokerage commissions, finders' fees or the like relating to this Subscription Agreement or the transactions contemplated hereby (other than commissions to be paid by the Company to the Selling Agent(s) or as otherwise described in the Offering Materials and, in turn, to be paid to its selected dealers).
  
 n.       Subscriber understands that the certificate(s) representing the Securities will bear a legend substantially similar to the legend set forth immediately below until (i) such Securities shall have been registered under the Securities Act and effectively disposed of in accordance with a registration statement, or (ii) in the opinion of counsel reasonably satisfactory to the Company such securities may be sold without registration under the Securities Act:
  
 “These securities have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or the "blue sky" or securities laws of any state and may not be offered, sold, pledged, hypothecated, assigned or transferred except (i) pursuant to a registration statement under the Securities Act which has become effective and is current with respect to these securities, or (ii) pursuant to a specific exemption from registration under the Securities Act but only upon a holder thereof first having obtained the written opinion of counsel reasonably satisfactory to the Company, that the proposed disposition is consistent with all applicable provisions of the Securities Act as well as any applicable "blue sky" or similar securities laws."
  
 o.         If at any time prior to issuance of the Securities to Subscriber, any representation or warranty of Subscriber shall no longer be true, Subscriber promptly shall give written notice thereof to the Company specifying which representations and warranties are not true and the reason therefore, whereupon Subscriber's subscription may be rejected by the Company in whole or in part.
  
 p.         The Subscriber represents that the amounts invested by it in the Company in the Offering were not and are not directly or indirectly derived from activities that contravene federal, state or international laws and regulations, including anti-money laundering laws and regulations. Federal regulations and Executive Orders administered by OFAC prohibit, among other things, the engagement in transactions with, and the provision of services to, certain foreign countries, territories, entities and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found on the OFAC website at <http://www.treas.gov/ofac>. In addition, the programs administered by OFAC (the “OFAC Programs”) prohibit dealing with individuals or entities in certain countries regardless of whether such individuals or entities appear on the OFAC lists.
  
  	 
	Page5
	 
 
	 INMUNE BIO INC.

  
 q.         Notwithstanding the place where this Subscription Agreement may be executed by any of the parties hereto, all of the terms, provisions, and conditions hereof shall be construed in accordance with and governed by the laws of the State of New York, without giving effect to its conflict of laws principles. Any dispute arising out of or in connection with this Subscription Agreement or the Offering Materials shall be exclusively adjudicated before a court located in the City and County of New York and the parties hereto exclusively submit to the exclusive jurisdiction and venue of the state and local courts of the State of New York located in the City and County of New York and the U.S. District Court for the Southern District of New York with respect to any action or legal proceeding commenced by any party, and irrevocably waive any objection they now or hereafter may have respecting the venue of any action or proceeding brought in such a court or respecting the fact that such court is an inconvenient forum and Subscriber consents to the service of process in any such action or legal proceeding by means of registered or certified mail, return receipt requested, in care of the address set forth below or such other address as Subscriber shall furnish in writing to the Company.
  
 r.           Subscriber hereby irrevocably waives trial by jury in any action or proceeding involving, directly or indirectly, any matter (whether sounding in tort, contract, fraud or otherwise) in any way arising out of or in connection with this Subscription Agreement or Subscriber's purchase of the Units.
  
 s.          Subscriber acknowledges that he, she or it understands the meaning and legal consequences of the representations, warranties and acknowledgments contained in this Subscription Agreement and in the Qualified Purchaser Questionnaire, and hereby agrees to indemnify and hold harmless the Company, and each of its stockholders, officers, directors, affiliates, controlling persons, agents and representatives, from and against any and all loss, damage, expense, claim, action, suit or proceeding (including the reasonable fees and expenses of legal counsel) as incurred arising out of or in any manner whatsoever connected with (i) a breach of any representation or warranty of Subscriber contained in this Subscription Agreement or in the Qualified Purchaser Questionnaire (ii) any sale or distribution by Subscriber in violation of the Securities Act or any applicable state securities laws or (iii) any untrue statement of a material fact made by Subscriber and contained herein or in the Qualified Purchaser Questionnaire, or omission to state herein or in the Qualified Purchaser Questionnaire, a material fact necessary in order to make the statements contained herein or in the Qualified Purchaser Questionnaire, in light of the circumstances under which they were made, not misleading. Subscriber acknowledges that such damage could be substantial since (a) the Securities are being offered without registration under the Securities Act in reliance upon the exemption pursuant to Section 4(2) and/or Regulation D of the Securities Act for transactions by an issuer not involving a public offering and, in various states, pursuant to exemptions from registration, (b) the availability of such exemptions is, in part, dependent upon the truthfulness and accuracy of the representations made by Subscriber herein and in its Qualified Purchaser Questionnaire, and (c) the Company will rely on such representations in accepting Subscriber's Subscription Agreement.
  
 t.           Subscriber is not subscribing for the Units as a result of or subsequent to any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio, any seminar or meeting, or any solicitation of a subscription by a person not previously known to Subscriber in connection with investments in securities generally.
  
  	 
	Page6
	 
 
	 INMUNE BIO INC.

  
 u.         Unless otherwise indicated on a separate sheet of paper that details any such affiliation submitted by Subscriber to the Company along with this completed Subscription Agreement, Subscriber is not affiliated directly or indirectly with a member broker- dealer firm of the Financial Industry Regulatory Authority (“ FIN R A”) as an employee, officer, director, partner or shareholder or as a relative or member of the same household of an employee, director, partner or shareholder of a FINRA member broker-dealer firm.
  
 v.         Subscriber represents that he, she or it has full power and authority (corporate, statutory or otherwise) to execute and deliver this Subscription Agreement and to purchase the Units. The execution, delivery and performance of this Subscription Agreement and the Qualified Purchaser Questionnaire will not: (i) violate, conflict with or result in a default under any provision of the Certificate or By-Laws (or analogous organizational documents), if any, of Subscriber; or (ii) violate or result in a violation of, or constitute a default (whether after the giving of notice, lapse of time or both) under, any provision of any law, regulation or rule, or any order of, or any restriction imposed by any court or other governmental agency applicable to Subscriber. This Subscription Agreement constitutes the legal, valid and binding obligation of Subscriber, enforceable against Subscriber in accordance with its terms except to the extent that enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and subject to general principles of equity (regardless of whether such enforcement is considered in a proceeding at law or at equity). This Subscription Agreement supersedes all prior arrangements or understandings with respect thereto, whether oral or written. The terms and conditions of this Subscription Agreement shall inure to the benefit of and be binding upon the parties and their respective successors, heirs and assigns.
  
 2.         In order to induce Subscriber to execute and deliver this Subscription Agreement, the Company represents and warrants to, and covenants with, Subscriber as follows:
  
 a.           Each of the Company and its Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and its Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.
  
 b.           The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders in connection herewith or therewith other than in connection with the Required Approvals. 
  
  	 
	Page7
	 
 
	 INMUNE BIO INC.

  
        This Agreement and each other Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.
  
 c.           The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby and thereby to which it is a party do not and will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any lien, charge, pledge, security interest or encumbrance upon any of the properties or assets of the Company or any Subsidiary (a “Lien”), or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses
  
 (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.
  
 d.        The execution, delivery and performance by the Company of this Subscription Agreement and the Offering and sale of the Units to accredited investors contemplated hereby shall, assuming the representations and warranties of Subscriber are true and correct, be in compliance with the exemptions from registration set forth in Regulation D and/or Section 4(a)(2) of the Securities Act and applicable state securities “blue sky” laws.
  
 e.           The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and, if and as applicable, nonassessable, free and clear of all Liens imposed by the Company.
  
 f.            The capitalization of the Company is as set forth in the Offering Materials. The Company has not issued any capital stock and/or common stock equivalents not set forth in the Offering Materials. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as a result of the purchase and sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind (“Person”), any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents.
  
  	 
	Page8
	 
  

	 INMUNE BIO INC.

  
           The issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Subscribers) and will not result in a right of any holder of securities of the Company to adjust the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital stock and other securities of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in material compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities. Except for the Company’s certificate of incorporation, there are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.
  
 g.       Except as described in the Offering Materials, there is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect.
  
 h.       Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.
  
 i.        The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as presently conducted, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit.
  
 j.        The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made in accordance with GAAP, and the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance.
  
  	 
	Page9
	 
 
	 INMUNE BIO INC.

  
 k.           Intellectual Property.
  
 i.       The term “Intellectual Property Rights” includes:
  
 1.        the name of the Company, all fictional business names, trading names, registered and unregistered trademarks, service marks, and applications (collectively, “Marks'');
  
 2.        all patents, patent applications, and inventions and discoveries that may be patentable (collectively, “Patents'');
  
 3.        all copyrights in both published works and published works (collectively, “Copyrights”);
  
 4.        all rights in mask works (collectively, “Rights in Mask Works''); and
  
 5.        all know-how, trade secrets, confidential information, customer lists, software, technical information, data, process technology, plans, drawings, and blue prints (collectively, “Trade Secrets'') owned, used, or licensed by the Company as licensee or licensor.
  
 ii.       The Offering Materials contain a complete and accurate description of all contracts relating to the Intellectual Property Rights to which the Company is a party or by which the Company is bound, except for any license implied by the sale of a product and perpetual, paid-up licenses for commonly available software programs with a value of less than $10,000 under which the Company is the licensee. There are no outstanding and, to the Company’s knowledge, no threatened disputes or disagreements with respect to any such agreement.
  
 iii.       The Intellectual Property Rights are all those necessary for the operation of the Company’s businesses as it is currently conducted or as represented, in writing, to the Subscribers to be conducted. The Company is the owner of all right, title, and interest in and to each of the Intellectual Property Rights, free and clear of all liens, security interests, charges, encumbrances, equities, and other adverse claims, and has the right to use all of the Intellectual Property Rights. To the Company’s knowledge, no employee of the Company has entered into any contract that restricts or limits in any way the scope or type of work in which the employee may be engaged or requires the employee to transfer, assign, or disclose information concerning his work to anyone other than of the Company.
  
 iv.       The Offering Materials contain a complete and accurate list of all Patents. Except as set forth in the Offering Materials, the Company is the owner of all right, title and interest in and to each of the Patents, free and clear of all Liens and other adverse claims. All of the issued Patents are currently in compliance with formal legal requirements (including payment of filing, examination, and maintenance fees and proofs of working or use), are valid and enforceable, and are not subject to any maintenance fees or taxes or actions falling due within ninety days after the initial Closing Date. No Patent has been or is now involved in any interference, reissue, reexamination, or opposition proceeding. To the Company’s knowledge: (1) there is no potentially interfering patent or patent application of any third party, and (2) no Patent is infringed or has been challenged or threatened in any way. To the Company’s knowledge, none of the products manufactured and sold, nor any process or know-how used, by the Company infringes or is alleged to infringe any patent or other proprietary right of any other Person.
  
  	 
	Page10
	 
 
	 INMUNE BIO INC.

  
 v.       The Offering Materials contain a complete and accurate list and summary description of all trademarks. The Company is the owner of all right, title, and interest in and to each of the Marks, free and clear of all Liens and other adverse claims. All trademarks that have been registered with the United States Patent and Trademark Office are currently in compliance with all formal legal requirements (including the timely post-registration filing of affidavits of use and incontestability and renewal applications), are valid and enforceable, and are not subject to any maintenance fees or taxes or actions falling due within ninety days after the Initial Closing Date. No trademark has been or is now involved in any opposition, invalidation, or cancellation and, to the Company’s knowledge, no such action is threatened with respect to any of the trademarks. To the Company’s knowledge: (1) there is no potentially interfering trademark or trademark application of any third party, and (2) no trademark is infringed or has been challenged or threatened in any way. To the Company’s knowledge, none of the trademarks used by the Company infringes or is alleged to infringe any trade name, trademark, or service mark of any third party.
  
 vi.       With respect to each trade secret, the documentation relating to such trade secret is current, accurate, and sufficient in detail and content to identify and explain it and to allow its full and proper use without reliance on the knowledge or memory of any individual. The Company has taken all reasonable precautions to protect the secrecy, confidentiality, and value of its trade secrets. The Company has good title and an absolute (but not necessarily exclusive) right to use the trade secrets. The trade secrets are not part of the public knowledge or literature, and, to the Company’s knowledge, have not been used, divulged, or appropriated either for the benefit of any Person (other than the Company) or to the detriment of the Company. No trade secret is subject to any adverse claim or has been challenged or threatened in any way.
  
 l.               Within six months following the initial Closing Date, the Company and the Subsidiaries will be insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged. In addition, within six months following the initial Closing Date, the Company shall obtain directors and officers insurance coverage at least equal to the aggregate Subscription Amount. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to obtain the foregoing insurance coverage.
  
 m.            Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Securities by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Subscribers and certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.
  
 n.              No Person other than the Subscribers has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.
  
 o.              Assuming the accuracy of the Subscribers’ representations and warranties set forth in Section C.1., no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Subscribers as contemplated hereby.
  
 p.              Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided any of the Subscribers or their agents or counsel with any information that it believes constitutes or might constitute material, non-public information which will not be publicly disclosed in the Registration Statement or within 210 days of the initial Closing Date, whichever occurs first. The Company understands and confirms that the Subscribers will rely on the foregoing representation in effecting transactions in securities of the Company. 
  
  	 
	Page11
	 
 
	 INMUNE BIO INC.

  
            All of the disclosure furnished by or on behalf of the Company to the Subscribers regarding the Company and its Subsidiaries, their respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, when taken together as a whole, is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The Company acknowledges and agrees that no Subscriber makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section C.1. hereof.
  
 q.              Assuming the accuracy of the Subscribers’ representations and warranties set forth in Section C.1., neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of the Securities Act which would require the registration of any such securities under the Securities Act.
  
 r.               Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary know of no basis for any such claim.
  
 s.               The Company acknowledges and agrees that each of the Subscribers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. The Company further acknowledges that no Subscriber is acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by any Subscriber or any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to the Subscribers’ purchase of the Securities. The Company further represents to each Subscriber that the Company’s decision to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.
  
 t.               The operations of the Company and its subsidiaries are and have been conducted at all times in compliance with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any subsidiary, threatened.
  
 u.              With respect to Units to be offered and sold hereunder in reliance on Rule 506(b) under the Securities Act (“Regulation D Securities”), none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating in the offering contemplated hereby, any beneficial owner of 20% or more of the Company's outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person” and, together, “Issuer Covered Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e).
  
  	 
	Page12
	 
 
	 INMUNE BIO INC.

  
 D.                   Notice Provisions
  
 Any and all notices, demands or requests required or permitted to be given under this Subscription Agreement shall be given in writing and sent, by registered or certified U.S. mail, return receipt requested, by facsimile transmission with proof of electronic transmission, by hand, or by overnight courier, addressed to the parties hereto at their addresses set forth above or such other addresses as they may from time-to-time designate by written notice, given in accordance with the terms of this Section D, together with copies thereof as follows:
 In the case of the Company to: INmune Bio Inc.
 1224 Prospect Street
 Suite 150
 La Jolla, CA 92037
  
 In the case of Subscriber, to the address of Subscriber on the signature page to this Agreement.
  
 Notice given as provided in this Section shall be deemed effective: (i) on the business day hand delivered (or, if it is not a business day, then the next succeeding business day thereafter), (ii) on the first business day following the sending thereof by overnight courier, and (iii) on the seventh calendar day (or, if it is not a business day, then the next succeeding business day thereafter) after the depositing thereof into the exclusive custody of the U.S. Postal Service. As used herein, the term business day (other than Saturday or Sunday) shall mean any day when commercial banks are open in the State of New York.
  
 E.                   Miscellaneous.
  
 1.      This Subscription Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective heirs, legal representatives, successors and assigns.
  
 2.      The Offering Documents, together with the Transaction Documents, constitute the entire agreement between the Subscriber and the Company with respect to the subject matter hereof and supersede all prior oral or written agreements and understandings, if any, relating to the subject matter hereof. The terms and provisions of this Subscription Agreement may be waived, or consent for the departure therefrom granted, only by a written document executed by the party to be bound thereby.
  
 3        No term or provision contained herein may be modified, amended or waived except by written agreement or consent signed by the party or parties to be bound thereby. A waiver by either party of a breach of any provision of this Subscription Agreement shall not operate, or be construed, as a waiver of any subsequent breach by that same party.
  
 5.        Subscriber acknowledges that the subscription made hereby is not binding upon the Company until the Company accepts it. The Company has the right to accept or reject this subscription in whole or in part in its sole and absolute discretion. If this subscription is rejected in whole, the Company shall return the purchase price to Subscriber, without interest or deduction, and the Company and Subscriber shall have no further obligation to each other by reason of this Subscription Agreement or the subscription made hereby.
  
  	 
	Page13
	 
 
	 INMUNE BIO INC.

  
 6.        The representations and warranties of the Company and the Subscriber made in this Subscription Agreement shall survive the Closing and the execution and delivery hereof and delivery of the Securities.
  
 7.        Each of the parties hereto shall pay its own fees and expenses (including the fees of any attorneys, accountants, appraisers or others engaged by such party) in connection with this Subscription Agreement and the transactions contemplated hereby whether or not the transactions contemplated hereby are consummated.
  
  
  
 [Offering Information, Legends, and Notices Follow]
  
  
  
  
  
  
  	 
	Page14
	 
 
	 INMUNE BIO INC.

  
 OFFERING INFORMATION, LEGENDS, AND NOTICES
  
 THE SECURITIES OFFERED HEREBY HAVE NOT BEEN APPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (THE “SEC”), OR ANY STATE REGULATORY AUTHORITY. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.
  
 IT IS INTENDED THAT THE SECURITIES OFFERED HEREBY WILL BE OFFERED TO ACCREDITED INVESTORS, AS DEFINED IN RULE 501 OF REGULATION D PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).
  
 THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT AND ARE BEING OFFERED PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS FOR NONPUBLIC OFFERINGS. SUCH EXEMPTIONS LIMIT THE NUMBER AND TYPES OF INVESTORS TO WHICH THE OFFERING WILL BE MADE AND RESTRICT SUBSEQUENT TRANSFERS OF THE SECURITIES SUCH SECURITIES MAY ONLY BE RESOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF IF, IN THE OPINION OF COUNSEL SATISFACTORY TO THE COMPANY, REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.
  
 THE SECURITIES OFFERED HEREBY SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN AFFORD TO SUSTAIN A LOSS OF THEIR ENTIRE INVESTMENT. INVESTORS WILL BE REQUIRED TO REPRESENT THAT THEY ARE FAMILIAR WITH AND UNDERSTAND THE TERMS OF THIS OFFERING.
  
 THE OFFEREE, BY ACCEPTING DELIVERY OF THE OFFERING MATERIALS, AGREES TO RETURN THE OFFERING MATERIALS AND ALL ACCOMPANYING OR RELATED DOCUMENTS TO THE COMPANY UPON REQUEST IF THE OFFEREE DOES NOT AGREE TO PURCHASE ANY OF THE SECURITIES OFFERED HEREBY.
  
 ANY OFFERING MATERIALS SUBMITTED IN CONNECTION WITH THE PRIVATE PLACEMENT OF THE SECURITIES DO NOT CONSTITUTE AN OFFER OR SOLICITATION BY ANYONE IN ANY JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS NOT AUTHORIZED. ANY REPRODUCTION OR DISTRIBUTION OF ANY OFFERING MATERIALS IN WHOLE OR IN PART, OR THE DIVULGENCE OF ANY OF THEIR CONTENTS, WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY, IS PROHIBITED. ANY PERSON ACTING CONTRARY TO THE FOREGOING RESTRICTIONS MAY PLACE HIM/HERSELF AND THE COMPANY IN VIOLATION OF FEDERAL OR STATE SECURITIES LAWS.
  
 NASAA UNIFORM LEGEND
  
 IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT, AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.
  
  	 
	Page15
	 
 
	 INMUNE BIO INC.

  
 FOR RESIDENTS OF FLORIDA
  
 EACH FLORIDA RESIDENT WHO SUBSCRIBES FOR THE PURCHASE OF SECURITIES HEREIN MAY HAVE THE RIGHT, TO THE EXTENT PROVIDED IN SECTION 517.061(11)(A)(5) OF THE FLORIDA SECURITIES ACT, TO WITHDRAW HIS SUBSCRIPTION FOR THE PURCHASE AND RECEIVE A FULL REFUND OF ALL MONIES PAID. SUCH RIGHT OF WITHDRAWAL MAY BE EXERCISED PRIOR TO THE EXPIRATION OF THREE (3) BUSINESS DAYS AFTER THE LATER TO OCCUR OF (A) PAYMENT OF THE PURCHASE HAS BEEN MADE TO THE COMPANY, ITS AGENT, OR AN ESCROW AGENT OR (B) COMMUNICATION OF THE RIGHT OF WITHDRAWAL TO THE FLORIDA RESIDENT. WITHDRAWAL WILL BE WITHOUT ANY FURTHER LIABILITY TO ANY PERSON. TO ACCOMPLISH THIS WITHDRAWAL, A SUBSCRIBER NEED ONLY SEND A LETTER OR TELEGRAM TO THE COMPANY AT THE ADDRESS OF THE COMPANY SET FORTH HEREIN INDICATING HIS INTENTION TO WITHDRAW.
  
 SUCH LETTER OR TELEGRAM SHOULD BE SET AND POSTMARKED PRIOR TO THE END OF THE AFOREMENTIONED THIRD BUSINESS DAY. IT IS ADVISABLE TO SEND SUCH LETTER BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO ENSURE THAT IT IS RECEIVED AND ALSO TO EVIDENCE THE TIME IT WAS MAILED. IF THE REQUEST IS MADE ORALLY, IN PERSON OR BY TELEPHONE TO AN OFFICER OF THE COMPANY, A WRITTEN CONFIRMATION THAT THE REQUEST HAS BEEN RECEIVED SHOULD BE REQUESTED.
  
  
  
  
  
  	 
	Page16
	 
 
	 INMUNE BIO INC.

  
 SIGNATURE PAGE FOR:
  
 INDIVIDUAL INVESTOR
  
 IN WITNESS WHEREOF, this Subscription Agreement has been executed by Subscriber and by the Company on the respective dates set forth below.
  
 Signature                                                                                              Signature (If Purchased Jointly)
  
 _______________________________________                       _______________________________
  
 Print Name ______________________________ Print Name _______________________________
  
 Date: __________________________________ Date: ____________________________________ 
  
 Social Security # _________________________ Social Security # ____________________________
  
 Residential Address ______________________  Residential Address _________________________ 
  
 _______________________________________                                     __________________________
  
  
 Telephone # ____________________________ Telephone # _______________________________
  
 Fax #  _________________________________  Fax # ____________________________________
  
 Email: _________________________________ Email: ____________________________________ 
  
 EXACT Name in which Securities are to be issued: _________________________________________
  
 ________________________________________________________________________________
  
 Purchase Price: $ ______________________________
  
 Form of Joint Ownership (if applicable): o Tenants-in-Common o Joint Tenants with Right of Survivorship
  
 o Other: ___________________________________
  
  	 
	Page17
	 
 
	 INMUNE BIO INC.

  
 SIGNATURE PAGE FOR:
  
 PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY OR TRUST
  
 IN WITNESS WHEREOF, the undersigned has executed this Subscription Agreement on the date set forth below:
  
  
  
 Name of Partnership, Corporation, and Limited Liability Company or Trust
  
  
  
 By: _________________________________  Federal Tax ID Number ____________________________
  
 Name: _______________________________ State of Organization  _____________________________ 
  
 Title: ________________________________
  
 Date: ________________________________
  
 Principal Business Address: ____________________________________________________________
  
 Attn; ________________________________
  
 Telephone: ____________________________
  
 Fax: _________________________________
  
 Email: ________________________________
  
 EXACT Name in which Securities are to be issued: _____________________________________________
  
 ____________________________________________________________________________________
  
 Purchase Price: $ ________________________
  
  
  	 
	Page18
	 
 
	 INMUNE BIO INC.

  
 SIGNATURE PAGE FOR: 
  
 SUBSCRIPTION AGREEMENT ACCEPTANCE
  
 INMUNE BIO INC.
  
  
  
  	 By:
	  

	 Printed Name: 
	  

	 Title:
	  

	 Dated:
	  

	  
	  

	 Subscription Agreement No: 
	  

	 Subscriber: 
	  

	 Amount of Purchase Price: $ 
	  

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 	 
	Page19

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