Document:

EX-10.4

 Exhibit 10.4 

Confidential Treatment Requested. Confidential portions of this document have been redacted and have been separately filed with the Commission. 

INDEX TO PATENT AND KNOW HOW EXCLUSIVE LICENSE AGREEMENT 

BETWEEN 
 NUPOTENTIAL,
INC. 
 AND 

SALARIUS PHARMACEUTICALS, LLC 
  

					
		
	 ARTICLE 1 – DEFINITIONS
	  	 	2	 
		
	 ARTICLE 2 – GRANT OF LICENSE
	  	 	4	 
		
	 ARTICLE 3 – CONSIDERATION
	  	 	5	 
		
	 ARTICLE 4 – REPORTS
	  	 	9	 
		
	 ARTICLE 5 – DILIGENCE
	  	 	9	 
		
	 ARTICLE 6 – SUBLICENSING
	  	 	10	 
		
	 ARTICLE 7 – PATENT PROSECUTION AND MAINTENANCE
	  	 	10	 
		
	 ARTICLE 8 – ENFORCEMENT
	  	 	11	 
		
	 ARTICLE 9 – NO WARRANTIES; LIMITATION ON NUPOTENTIAL’S LIABILITY
	  	 	12	 
		
	 ARTICLE 10 – INDEMNITY; INSURANCE
	  	 	13	 
		
	 ARTICLE 11 – TERM AND TERMINATION
	  	 	14	 
		
	 ARTICLE 12 – REGISTRATION AND RECORDATION
	  	 	16	 
		
	 ARTICLE 13 – NOTICES
	  	 	16	 
		
	 ARTICLE 14 – MISCELLANEOUS PROVISIONS
	  	 	16	 
		
	 APPENDIX A – INTELLECTUAL PROPERTY
	  	 	21	 
		
	 APPENDIX B – EXAMPLE OF OWNERSHIP UNITS
	  	 	22	 
		
	 APPENDIX C – STOCK TRANSFER AGREEMENT
	  	 	23	 

 PATENT AND KNOW HOW EXCLUSIVE LICENSE AGREEMENT 

BETWEEN 
 NUPOTENTIAL,
INC. 
 AND 

SALARIUS PHARMACEUTICALS, LLC 

NUPOTENTIAL FILE NUPOTENTIAL-2018-LIC-010 

This Agreement is effective as of the 18th day of December, 2018 (the EFFECTIVE DATE), between
Salarius Pharmaceuticals, LLC, a Delaware limited liability company, with offices located at 2450 Holcombe Blvd., Ste. J-608, Houston, TX 77021 USA (LICENSEE), and NuPotential, Inc., a Delaware
incorporated company, with offices located at Louisiana Emerging Technology Center, 340 E. Parker Blvd., Baton Rouge, LA 70803 (NUPOTENTIAL). 

ARTICLE 1 – DEFINITIONS 
 1.1
AFFILIATE of LICENSEE shall mean a company or other person controlling, controlled by, or under common control with LICENSEE, where “control” shall mean the direct or indirect control by ownership or otherwise of more than fifty percent
(50%) of the outstanding voting shares or voting rights, or other similar measure of control. 
 1.2 FIELD OF USE means all uses of DNA
methyltransferase 1 (DNMT1) focused on modulating epigenetic targets. 
 1.3 FIRST COMMERCIAL SALE means the first commercial sale of any LICENSED
PRODUCT by LICENSEE, or its AFFILIATES or SUBLICENSEE under this Agreement in the FIELD OF USE in the TERRITORY in such country, after such LICENSED PRODUCT has been granted marketing approval for distribution, marketing and sale. For the avoidance
of doubt, FIRST COMMERCIAL SALE excludes a sale or use of a LICENSED PRODUCT solely for charitable or philanthropic, promotional (including samples), trials, such as field trials or clinical trials (animal or human), or regulator purposes to obtain
U.S. Food and Drug Administration (“FDA”) or other governmental approvals to market LICENSED PRODUCTS. 
 1.4 FUND RAISING SUPPORT
MILESTONE shall mean the milestone set forth in Section 3.12 of this Agreement. 
 1.5 KNOW HOW means any information, data, process,
method, or know how that is not disclosed otherwise publicly known and was developed by Kenneth J. Eilertsen prior to the Effective Date and on or before his full-time employment at Louisiana State University and any information, data,
process, method, or know how that is not otherwise publicly known and was developed by Kenneth J. Eilertsen that is useful or necessary in the commercialization of the LICENSED PRODUCTS in the FIELD OF USE in the TERRITORY up until the later
to occur of the following: a) the last day NUPOTENTIAL’s designee serves on the Board of LICENSEE(or its successor-in-interest); or b) five (5) years from the
EFFECTIVE DATE. 

 1.6 LICENSED PRODUCT(S) means a product or part of a product in the licensed FIELD OF USE: 

 

	 	(a)	 for which, absent this Agreement, the making, using, importing or selling, would infringe, induce infringement,
or contribute to infringement of an issued, unexpired claim or a pending claim contained in the PATENT RIGHTS in the country in which any such product or product part is made, used, imported, offered for sale or sold; or 

 

	 	(b)	 that is otherwise covered by or included in KNOW HOW and where valid enforceable PATENT RIGHTS exist but
expressly excluding know how in the current knowledge of Licensee and know how developed by Licensee without reference to the KNOW HOW. 

  

	 	(c)	 That emanates directly from a compound provided by NUPOTENTIAL. 

1.7 NET SALES means, on a country-by-country bases and LICENSED PRODUCT-by-LICENSED PRODUCT basis, the amount billed or invoiced on sales, rental, lease, or use, however characterized, by LICENSEE and SUBLICENSEES for LICENSED PRODUCTS to
unrelated third parties, less 
  

	 	(a)	 discounts allowed in amounts customary in the trade; 

 

	 	(b)	 sales tax, tariffs, duties and use tax included in bills or invoices with reference to particular sales and
actually paid by LICENSEE to a governmental unit; 

  

	 	(c)	 outbound transportation prepaid or allowed; or 

 

	 	(d)	 amounts refunded or credited on returns. 

No deductions shall be made for the cost of collections or for commissions, whether paid to independent sales agents or employees of LICENSEE.

 Whenever the term LICENSED PRODUCT may apply to a product during various stages of manufacture, use, sale, or other transfer, NET SALES
shall be based on the amount derived from the sale, distribution or use of such LICENSED PRODUCT at the stage of its highest billed or invoiced value to an arms-length third party. 

Subject to the above deductions, NET SALES shall be deemed to occur on, and only on, the FIRST COMMERCIAL SALE to a non-sublicensee third party. 
 1.8 PATENT COUNTRY means any country in which at least one unexpired patent
application or patent within PATENT RIGHTS is currently pending or issued. 

 1.9 PATENT RIGHTS means NUPOTENTIAL’s legal rights under the patent laws of the United States or
relevant foreign countries directly attributable to NUPOTENTIAL’s information for all of the following: 
  

	 	(a)	 the United States and foreign patents and/or patent applications listed in Appendix A; nonprovisional
applications claiming priority under 35 U.S.C. § 119(e) from any provisional applications listed in Appendix A; and divisionals and continuations of any of the above applications; 

 

	 	(b)	 United States and foreign patents issued from the applications described above in part (a);

  

	 	(c)	 claims in all foreign patent applications, and in resulting patents, that are directed to subject matter
specifically described in the United States patents and/or patent applications described in (a) or (b) above; 

  

	 	(d)	 claims in all patent applications, and in the resulting patents, that are directed to subject matter
specifically described as of the EFFECTIVE DATE in the NUPOTENTIAL files listed in Appendix A; and 

  

	 	(e)	 any reissued or reexamined patents based upon the United States patents described in (a), (b) or
(d) above. 

 1.10 ROYALTY PERIOD(S) means the three-month periods ending on the last days of March, June, September, and
December. 
 1.11 LICENSEE ROYALTY or LICENSEE ROYALTIES mean the amount actually received by LICENSEE as a royalty from SUBLICENSEES for LICENSED
PRODUCTS 
 1.12 SUBLICENSEE(S) means any person or entity sublicensed by LICENSEE under this Agreement. 

1.13 TERRITORY means world-wide.  

ARTICLE 2 – GRANT OF LICENSE 

2.1 Subject to the terms and conditions of this Agreement, NUPOTENTIAL hereby grants to LICENSEE an exclusive royalty-bearing license under the PATENT
RIGHTS and KNOW HOW, with the right to grant sublicenses in accordance with Article 6, in the FIELD OF USE in the TERRITORY to make, have made, import, use, offer for sale and sell LICENSED PRODUCTS. In each PATENT COUNTRY, this license is for
PATENT RIGHTS and KNOW HOW. In all countries other than the PATENT COUNTRIES, this license is for KNOW HOW only. 
 2.2 The license granted to
LICENSEE, in Section 2.1 of this Agreement, shall extend to an AFFILIATE of LICENSEE as well, provided that NUPOTENTIAL receives written notice of the identity of the AFFILIATE. The activities of the AFFILIATE under the Agreement shall then be
deemed to be the activities of LICENSEE. The rights of an AFFILIATE under the Agreement shall continue so long as either AFFILIATE or LICENSEE perform the obligations to NUPOTENTIAL hereunder. 

 2.3 NUPOTENTIAL retains the right, on behalf of itself and all other
non-profit academic research institutions to practice the PATENT RIGHTS and KNOW HOW for non-commercial research purposes. 

2.4 In a particular PATENT COUNTRY, in the event that: (1) all issued and unexpired patents have claims held permanently revoked, unenforceable or
invalid by a decision of a court or governmental agency or competent jurisdiction, unappealable or unappealed within the time allowed for appeal within PATENT RIGHTS; or (2) all issued and unexpired patents have claims admitted to be invalid or
unenforceable through reissue, reexamination or disclaimer or otherwise; or (3) no claims within PATENT RIGHTS have issued within five (5) years after the earliest filing date from which such claim takes priority; then thereafter in that
country the license shall be one to KNOW HOW only for which no royalty shall be due. If a claim within PATENT RIGHTS issues after five (5) years after the earliest filing date for which such claim takes priority, from that point forward (but
not retroactively), the royalty rate under Section 3.1(c) in that country shall, from that point forward (but not retroactively), be the PATENT COUNTRY rate, until such patent’s claims are (1) expired; or (2) held permanently
revoked, unenforceable or invalid by a decision of a court or governmental agency or competent jurisdiction, unappealable or unappealed within the time allowed for appeal within PATENT RIGHTS; or (3) admitted to be invalid or unenforceable
through reissue, reexamination or disclaimer or otherwise, then thereafter in that country the license shall be one to KNOW HOW only for which no royalty shall be due. 

2.5 Nothing in the Agreement shall be construed as granting by implication, estoppel, or otherwise any licenses or rights under any patents, patent
applications, or know how other than the express license under the PATENT RIGHTS or under KNOW HOW granted in Section 2.1, regardless of whether such patents, patent applications, or know how are dominant of or subordinate to any rights within
the PATENT RIGHTS. 
 2.6 NUPOTENTIAL further reserves to the United States Government all rights that may be required by research funding agreements
between NUPOTENTIAL and the United States Government pursuant to 35 U.S.C. §200 et seq. and applicable implementing regulations. 

ARTICLE 3 – CONSIDERATION 

3.1 LICENSEE shall pay running royalties and fees to NUPOTENTIAL until the expiration date of the last to expire of PATENT RIGHTS, as long as
LICENSEE is utilizing KNOW HOW that is proprietary to NUPOTENTIAL and where valid enforceable PATENT RIGHTS exist unencumbered by government regulation which prevents exclusivity or until this Agreement is otherwise terminated. Consideration for the
license shall include the following: 

 [ *** ] = Confidential material redacted and filed separately with the Commission.

  

	 	(a)	 A LICENSE ISSUE FEE of half of a percent (0.50%) of fully-diluted OWNERSHIP UNITS of LICENSEE (or the
equivalent security in a successor entity referred to herein as OWNERSHIP UNITS) upon signing this Agreement measured at the close of the Series A Tranche 2 (approximately 18,000 fully diluted units resulting in approximately 90 common
units), issuable within 30 business days of closing of Series A Tranche 2. If requested by LICENSEE, NUPOTENTIAL hereafter will execute a proxy for the voting of any OWNERSHIP UNITS earned by NUPOTENTIAL. 

 

	 	(b)	 INITIAL FUNDRAISING SUPPORT FEE of an additional half of a percent (0.50%) of fully-diluted OWNERSHIP UNITS of
LICENSEE upon signing the license agreement measured at the close of Series A and any contingent/concurrent financing prior to a Form S-4 SEC filing, provided at least $1M in financing attributable to fund
raising support has occurred, issuable within 30 business days of filing of the Form S-4. Fully-diluted OWNERSHIP UNITS will be set at the filing of the Form S-4.

  

	 	(c)	 Payment on LICENSEE ROYALTIES in the following amounts: 

 

	 	i.	 Prior to LICENSEE receiving cumulative LICENSEE ROYALTIES of[ *** ], LICENSEE shall pay NUPOTENTIAL [
*** ] of LICENSEE ROYALTIES (cash or other non-cash payments on LICENSEE ROYALTIES to NUPOTENTIAL) under a sublicense of PATENT RIGHTS and KNOW HOW for the use of DNA methyltransferase (DNMT) focused on
modulating epigenetic targets for the treatment of cancer. 

  

	 	ii.	 After LICENSEE receives cumulative LICENSEE ROYLATIES of more than [ *** ], LICENSEE shall pay
NUPOTENTIAL [ *** ] of LICENSEE ROYALTIES (cash or other non-cash payment on LICENSEE ROYALTIES to NUPOTENTIAL) under a sublicense of PATENT RIGHTS and KNOW HOW for the use of DNA methyltransferase
(DNMT) focused on modulating epigenetic targets for the treatment of cancer. 

  

	 	(d)	 If LICENSEE makes NET SALES directly, then running royalties equal to [ *** ] of NET SALES in each
PATENT COUNTRY. The PATENT COUNTRY rate (i.e.,[ *** ]) shall apply to any LICENSED PRODUCTS that is made, used, sold, offered for sale, or imported in any PATENT COUNTRY, regardless of whether other acts concerning that LICENSED PRODUCTS
occur outside a PATENT COUNTRY. If LICENSEE makes any sales to any party affiliated with LICENSEE, or in any way directly or indirectly related to or under the common control with LICENSEE, at a price less than the regular price charged to
arm’s length third parties, the running royalties payable to NUPOTENTIAL shall be computed on imputed NET SALES equal to the regular price charged to arm’s-length third parties.

  

	 	(e)	 [ *** ] of any consideration that is not based on NET SALES (e.g., milestone payments, sublicense issue
fees, sublicense maintenance fees, etc.) that LICENSEE receives from SUBLICENSEES or assignees in consideration for rights to practice under the PATENT RIGHTS or KNOW HOW, excepting only research and development funding. If LICENSEE is required to
pay additional royalties, damages or other 

  

 [ *** ] = Confidential material redacted and filed separately with the Commission.

  

	 	
amounts for additional licenses from third parties to commercialize LICENSED PRODUCTS, then LICENSEE shall be entitled to deduct from the royalties payable to NUPOTENTIAL under
Section 3.1(c) with respect to NET SALES, [ *** ] of such third-party payments; provided that in no event shall the royalties that would have been payable to NUPOTENTIAL under Section 3.1(c) be reduced by more than [ *** ]
absent such reductions in any ROYALTY PERIOD. 

  

	 	(f)	 There is no annual minimum royalty and annual license fee required under this Agreement. 

 

	 	(g)	 In the event LICENSEE files an Investigational New Drug Application (IND) or the foreign equivalent to an IND
in a PATENT COUNTRY for a LICENSED PRODUCT, NUPOTENTIAL shall receive an additional [ *** ] of fully diluted OWNERSHIP UNITS OF LICENSEE as measured on the filing of a SEC Form S-4 such OWNERSHIP UNITS
issuable within thirty (30) days of the filing of an IND. 

  

	 	(h)	 In the event LICENSEE first receives regulatory approval for the sale of an Investigational New Drug
Application (IND) or the foreign equivalent to an IND in a PATENT COUNTRY for a LICENSED PRODUCT, NUPOTENTIAL shall receive an additional [ *** ] of fully diluted OWNERSHIP UNITS OF LICENSEE as measured on the filing of a SEC Form S-4 such OWNERSHIP UNITS issuable within thirty (30) days of the filing of an IND. 

 3.2
LICENSEE shall be responsible for the payment of all taxes, duties, levies, and other charges, subject to the deduction from NET SALES allowed by Section 1.7(b). 

3.3 NUPOTENTIAL shall cooperate reasonably with LICENSEE and share interests in the event the parties elect to assert, that the LICENSEE and/or
NUPOTENTIAL is exempt from any tax or deduction of any government impacting the LICENSEE. NUPOTENTIAL represents that, as of the EFFECTIVE DATE, NUPOTENTIAL is not aware of any taxes, duties, levies, or other charges imposed by the United States or
by any state of the United States that have been levied upon running royalties payable to NUPOTENTIAL under NUPOTENTIAL’s previously-executed intellectual property licenses. 

3.4 LICENSEE is not obligated to pay multiple running royalties to NUPOTENTIAL if any LICENSED PRODUCT is covered by more than one claim of PATENT
RIGHTS, or by more than one patent application or patent within PATENT RIGHTS. 
 3.5 Payments due to NUPOTENTIAL shall be paid to “NuPotential,
Inc.” in United States dollars in Baton Rouge, Louisiana, sent as provided in Article 13 or at such other place as NUPOTENTIAL may reasonably designate consistent with the laws and regulations controlling in any country. At NUPOTENTIAL’s
request, LICENSEE shall remit payments either by ACH transfer or by check drawn upon a United States bank. 
 3.6 In computing running royalties,
LICENSEE shall convert any revenues it receives in foreign currency into its equivalent in United States dollars at the exchange rate LICENSEE, using its standard accounting procedures, uses to make reports to relevant regulatory and taxing
authorities, as long as such accounting procedures are consistent with fair business practices and generally accepted accounting principles. 

  

 3.7 Running royalty payments shall be made on an annual basis with submission of the reports required
by Article 4. All amounts due under this Agreement, including amounts due for the payment of patent expenses, shall, if overdue, bear interest until payment at a per annum rate five percent (5%) or at the highest allowed rate if a lower rate is
required by law. The payment of such interest shall not foreclose NUPOTENTIAL from exercising any other rights it may have resulting from any late payment. 

3.8 All amounts paid to NUPOTENTIAL by LICENSEE under this Agreement shall be non-refundable. 

3.9 So long as LICENSEE remains an LLC, NUPOTENTIAL shall be issued pre-emptive rights (follow-on investment rights) to purchase additional OWNERSHIP UNITS based on the price of the most current open financing round in order to maintain its equity position in LICENSEE with regard to all equity raised
between $9 million and $25 million in aggregate equity funding of LICENSEE. Such preemptive rights must be exercised or will expire before LICENSEE enters into any transaction in which it ceases to be an LLC. LICENSEE will give NUPOTENTIAL
3 days prior notice of such transaction. 
 3.10 If NUPOTENTIAL and LICENSEE disagree in good faith as to whether certain payments are due to
NUPOTENTIAL, then the procedures of this Sections 3.11.2-3.11.4 shall be followed to place the disputed amounts into escrow. If these procedures are followed, then LICENSEE shall not be deemed to be in default
for failure to make the disputed payments timely. If these procedures are not followed, however, then NUPOTENTIAL shall give LICENSEE notice that NUPOTENTIAL believes LICENSEE to be in default for failure to make payments timely under the Agreement
and LICENSEE shall have 60 days to cure such alleged default. 
 3.11 NUPOTENTIAL will be entitled to FUND RAISING SUPPORT MILESTONES earned prior to
the point the Series A and/or other fund-raising closes prior to the filing of SEC Form S-4 in the following amounts: 
  

	 	(a)	 FUND RAISING SUPPORT MILESTONE equal to .5% of all financing (Series A and other financing that may be offered
by LICENSEE as a private company. FUND RAISING SUPPORT MILESTONES are not applicable to any offerings LICENSEE may engage in as a public company) attributed to NUPOTENTIAL prior to these securities closing. The .5% milestone shall be calculated as
follows: Series A Amount Raised Attributed to NUPOTENTIAL times .5% divided by $1,089 which will equate to the number of OWNERSHIP UNITS that will be issued to NUPOTENTIAL. 

 

	 	(b)	 In the case of other securities, the .5% milestone shall be calculated as follows: other security amount raised
attributed to NUPOTENTIAL times .5% divided by pre-money security unit valuation in dollars which will equate to the number of Units or Shares to be issued to NUPOTENTIAL. 

In the event LICENSEE does not file a Form S-4 SEC as planned, this Agreement will remain in force
until terminated. 

 3.12 Upon execution of this Agreement, NUPOTENTIAL will have the right to designate one observer to
observe all activity of the LICENSEE Board of Managers (currently Joe Lovett) until such time as LICENSEE ceases to be an LLC. Examples of OWNERSHIP UNITS due to NUPOTENTIAL from LICENSEE are outlined in Appendix B attached hereto. 

ARTICLE 4 – REPORTS 
 4.1
After FIRST COMMERCIAL SALE, LICENSEE shall provide to NUPOTENTIAL a written annual report on or before July 31 of each calendar year (including the July 31 following any termination of this Agreement). LICENSEE shall report to NUPOTENTIAL
for all ROYALTY PERIODS in the previous twelve months: 
  

	 	(a)	 number of LICENSED PRODUCTS sold by LICENSEE and all SUBLICENSEES; 

 

	 	(b)	 total billings for LICENSED PRODUCTS sold by LICENSEE and all SUBLICENSEES; 

 

	 	(c)	 deductions applicable as provided in the definition for NET SALES in Section 1.7; 

 

	 	(d)	 any consideration due on additional payments from SUBLICENSEES under Section 3.1(b);

  

	 	(e)	 total running royalties of NET SALES due under Section 3.1(c); and 

 

	 	(f)	 names and addresses of all SUBLICENSEES. 

4.2 LICENSEE shall keep, and shall require all SUBLICENSEES to reasonably keep, true and accurate records containing data reasonably required for the
computation and verification of payments due under this Agreement. 
 The terms of this Article shall survive any termination of this Agreement. NUPOTENTIAL
is responsible for all expenses of such inspection, except that if any inspection reveals an underpayment greater than ten percent (10%) of the amounts due NUPOTENTIAL for any ROYALTY PERIOD, then LICENSEE shall pay all expenses of that inspection
and the amount of the underpayment and interest, at the rate specified in Section 3.8 above, to NUPOTENTIAL within thirty (30) days of written notice thereof. LICENSEE shall also reimburse NUPOTENTIAL for reasonable expenses required to
collect any amount underpaid. If the inspection reveals an overpayment greater than ten percent (10%) of the amounts due NUPOTENTIAL for any ROYALTY PERIOD, then NUPOTENTIAL shall remit such overcompensation and interest, at the rate specified in
Section 3.8 above, to LICENSEE within thirty (30) days of the inspection report received by NUPOTENTIAL. 
 ARTICLE 5 – NO
DILIGENCE 
 5.1 LICENSEE will have no responsibility to develop LICENSED PRODUCTS into marketable products. 

 ARTICLE 6 – SUBLICENSING 

6.1 LICENSEE shall notify NUPOTENTIAL in writing and shall send NUPOTENTIAL a copy of every sublicense agreement and each amendment thereto within
thirty (30) days after execution. 
 6.2 LICENSEE shall contemporaneously send to NUPOTENTIAL copies of any and all sublicense along with a
certification that the sub-license is at least as restrictive as the License. 
 6.3 LICENSEE shall not
receive from a SUBLICENSEE anything of material value other than cash payments in consideration for any sublicense under this Agreement, without the express prior written permission of NUPOTENTIAL. 

6.4 In the event this Agreement is terminated, each sublicense granted hereunder shall continue in full force in effective and sublicensees shall
immediately and automatically step into the shoes of LICENSEE and make payments directly to NUPOTENTIAL as if LICENSEE. All sublicenses granted hereunder shall so provide. 

6.5 LICENSEE shall cause every sublicense to provide LICENSEE the right to assign its rights under the sublicense to NUPOTENTIAL. Any such assignment is
subject to the limitations of Article 14.13 herein and, to be effective. 
 6.6 No SUBLICENSEE shall have the right to grant further sublicenses
without the express written permission of LICENSEE. 
 6.7 In the event that any SUBLICENSEE fails to make payment to LICENSEE for use of the
LICENSED PRODUCTS, LICENSEE shall use all reasonable commercial and legal efforts to collect such payment. However, if such collection efforts are unsuccessful, LICENSEE shall have no obligation to pay any royalty on any uncollected amounts and any
such royalty paid on amounts determined to be uncollected shall be credited against future royalties to be paid to NUPOTENTIAL by LICENSEE. However, NUPOTENTIAL shall have no obligation to refund any such amounts previously paid by LICENSEE to
NUPOTENTIAL. 
 6.8 After notice and the expiration of a sixty (60) day cure period, Failure of LICENSEE to meet any of the obligations in this
Article 6 shall be considered a material breach or default of this Agreement under Section 11.3. 
 ARTICLE 7 – PATENT
PROSECUTION AND MAINTENANCE 
 7.1 NUPOTENTIAL has the right of input on all aspects of drafting, filing, prosecuting, and maintaining all
patents and patent applications within the PATENT RIGHTS, including foreign filings and Patent Cooperation Treaty filings. LICENSEE shall, at its own expense, perform all actions and execute or cause to be executed all documents necessary to support
any filings, prosecutions, or maintenance. Notwithstanding the foregoing, LICENSEE shall retain patent counsel of LICENSEE’s own choosing, at LICENSEE’s expense, to file, prosecute and maintain patent applications and patents on behalf of
NUPOTENTIAL relating to the LICENSED PRODUCTS. 

 7.2 Each party shall notify the other party of all official communications received by the party
relating to the filing, prosecution and maintenance of the patents and patent applications within the PATENT RIGHTS, including any lapse, revocation, surrender, invalidation or abandonment of any of the patents or patent applications which form the
basis for the PATENT RIGHTS, and shall make reasonable efforts to allow the other party to review and comment upon such communications. 
 7.3
LICENSEE shall pay all future legal fees and other costs relating to the filing, prosecution, interference proceedings and maintenance of the PATENT RIGHTS, except as specifically provided in Section 7.4. Such reimbursement shall be made within
thirty (30) days of receipt of NUPOTENTIAL’s invoice and shall bear interest, if overdue, at the rate specified in Section 3.8 above. NUPOTENTIAL shall not retain patent counsel for the filing, prosecution, interference proceedings
and maintenance of the PATENT RIGHTS, so long as LICENSEE has retained patent counsel on behalf of NUPOTENTIAL and NUPOTENTIAL approves the patent counsel that LICENSEE retained, such approval not to be unreasonably withheld. 

7.4 LICENSEE may elect to not reimburse NUPOTENTIAL for fees and costs incurred by NUPOTENTIAL related to a particular patent application or patent
within PATENT RIGHTS in a particular country, subject to the terms of this Section 7.4. If LICENSEE makes such an election, LICENSEE shall provide reasonable notice to NUPOTENTIAL in writing. NUPOTENTIAL may then elect to continue the
prosecution or maintenance of such application or patent at NUPOTENTIAL’s sole expense, provided that such patent applications and issued patents thereafter shall be excluded from the definition of PATENT RIGHTS. 

ARTICLE 8 – ENFORCEMENT 
 8.1
Each party shall promptly advise the other in writing of any known acts of potential infringement of the PATENT RIGHTS by a third party. LICENSEE has the first option to police the PATENT RIGHTS against infringement by third parties within the
TERRITORY in the FIELD OF USE, but LICENSEE shall notify NUPOTENTIAL in writing twenty (20) days before filing any suit or within a shorter period if required to preserve the cause of action under applicable law. This right to police includes
defending any action for declaratory judgment of noninfringement or invalidity; and prosecuting, defending or settling all infringement and declaratory judgment actions at LICENSEE’s expense and through counsel of LICENSEE’s selection,
except that LICENSEE shall make any such settlement only with the advice and consent of NUPOTENTIAL, such consent shall not be unreasonably withheld. NUPOTENTIAL shall provide reasonable assistance to LICENSEE with respect to such actions, but only
if LICENSEE reimburses NUPOTENTIAL for reasonable out-of-pocket expenses incurred in connection with any such assistance rendered at LICENSEE’S request or
reasonably required by NUPOTENTIAL. NUPOTENTIAL retains the right to participate, with counsel of its own choosing and at its own expense, in any action under this Section 8.1. LICENSEE shall defend, indemnify and hold harmless NUPOTENTIAL with
respect to any claims or counterclaims asserted by an alleged infringer reasonably related to the enforcement of the PATENT RIGHTS, under this Section 8.1 or otherwise, including but not limited to antitrust claims or counterclaims. 

 8.2 If LICENSEE undertakes to enforce or defend the PATENT RIGHTS by litigation in any country,
LICENSEE may withhold up to fifty percent (50%) of running royalties (as described in Article 3.1(b)) due to NUPOTENTIAL for sales in such country in which the litigation is pending to reimburse up to fifty percent (50%) of LICENSEE’s out-of-pocket litigation expenses, including reasonable attorneys’ fees, but not including salaries of LICENSEE’s employees. Such pending litigation does not affect
any other payment due to NUPOTENTIAL under this Agreement. If LICENSEE recovers damages in the patent litigation, the award shall be applied first to satisfy LICENSEE’S unreimbursed expenses and legal fees for the litigation, next to reimburse
NUPOTENTIAL for any payments under Article 3 which are past due or were withheld pursuant to this Article 8, and then to reimburse NUPOTENTIAL for any other unreimbursed expenses and legal fees for the litigation. The remaining balance shall be
divided 90% to LICENSEE and 10% to NUPOTENTIAL. 
 8.3 If LICENSEE fails to take action to abate an alleged infringement of a patent within the
PATENT RIGHTS within sixty (60) days of a request by NUPOTENTIAL to do so (or within a shorter period if required to preserve the legal rights of NUPOTENTIAL under applicable law) then NUPOTENTIAL has the right to take such action (including
prosecution of a suit) at NUPOTENTIAL’s expense, and LICENSEE shall use reasonable efforts to cooperate in such action, at LICENSEE’s expense. NUPOTENTIAL has full authority to settle on such terms as NUPOTENTIAL determines, except that
NUPOTENTIAL shall not reach any settlement whereby it provides a license for future activities to a third party under the PATENT RIGHTS in the TERRITORY in the FIELD OF USE without the written consent of LICENSEE, which written consent LICENSEE may
withhold for any reason. NUPOTENTIAL retains one hundred percent (100%) of any recovery or settlement under this Section 8.3 after reimbursement of NUPOTENTIAL’s
out-of-pocket expenses to pursue action. 
 ARTICLE 9
– NO WARRANTIES; LIMITATION ON NUPOTENTIAL’S LIABILITY 
 9.1 NUPOTENTIAL, its board members, officers, employees and agents make no
representations or warranties that PATENT RIGHTS are or will be held valid or enforceable, nor that the manufacture, importation, use, offer for sale, sale or other distribution of any LICENSED PRODUCTS will be free from infringement of third-party
patent rights or other third party rights; nor respecting the scope of any of the PATENT RIGHTS. 
 9.2 NUPOTENTIAL, ITS BOARD MEMBERS, OFFICERS,
EMPLOYEES AND AGENTS MAKE NO REPRESENTATIONS, AND EXTEND NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO; IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND ASSUMES NO RESPONSIBILITIES
WHATSOEVER WITH RESPECT TO THE DESIGN, DEVELOPMENT, MANUFACTURE, USE, SALE OR OTHER DISPOSITION BY LICENSEE OR SUBLICENSEES OF LICENSED PRODUCTS. 
 9.3
LICENSEE AND SUBLICENSEES ASSUME THE ENTIRE RISK AS TO PERFORMANCE OF LICENSED PRODUCTS. In no event shall NUPOTENTIAL, including its board members, officers, employees and agents, be responsible or liable for any direct, indirect, special,
incidental, or consequential damages or lost profits or other economic loss or damage with 

 
respect to LICENSED PRODUCTS, to LICENSEE, SUBLICENSEES or any other person or entity regardless of legal theory. The above limitations on liability apply even though NUPOTENTIAL, its board
members, officers, employees or agents may have been advised of the possibility of such damage. 
 9.4 LICENSEE shall not, and shall require that
its SUBLICENSEES do not, make any statements, representations or warranties whatsoever to any person or entity, or accept any liabilities or responsibilities whatsoever from any person or entity that are inconsistent with this Article 9. 

ARTICLE 10 – INDEMNITY; INSURANCE 

10.1 LICENSEE shall defend, indemnify and hold harmless and shall require all SUBLICENSEES to defend, indemnify and hold harmless NUPOTENTIAL, its
board members, officers, employees and agents, from and against any and all claims of any kind arising out of or related to the exercise of any rights granted LICENSEE under this Agreement or the breach of this Agreement by LICENSEE. 

10.2 NUPOTENTIAL is entitled to participate at its option and expense through counsel of its own selection and may join in any legal actions related to
any such claims, demands, damages, losses and expenses under Section 10.1 above. 
  

	10.3	 (a) Prior to the occurrence of any of the activities specified in subsection (b), LICENSEE shall purchase and
maintain in effect a commercial general liability insurance policy, including product liability coverage, in the amount determined as set forth in subsection (c). Such policy shall provide reasonable coverage for all claims with respect to any
LICENSED PRODUCTS manufactured, used, sold, licensed, or otherwise distributed by LICENSEE. 

 (b) LICENSEE shall obtain
the requisite insurance coverage prior to any manufacture of, use of, distribution of, sale of, offer for sale of, importation of, or commercial activity involving any LICENSED PRODUCT, including use in any clinical trial. 

(c) LICENSEE shall obtain the requisite insurance coverage in amounts consistent with industry practice applicable to the activity to be
undertaken with the LICENSED PRODUCT. LICENSEE shall provide NUPOTENTIAL with written notice of the amount of insurance LICENSEE intends to obtain and which LICENSEE believes to be consistent with industry practice. NUPOTENTIAL shall have the right
to review this amount and shall have the right to require LICENSEE to increase the amount, consistent with current industry practice. 
 (d)
All insurance obtained pursuant to this Section 10.3 shall be with an insurer with a current A.M. best rating of A+8 or better. 
 (e)
All insurance obtained pursuant to this Section 10.3 shall specify as additional insureds the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College, including its board members, officers, agents and
employees. 

 (f) Prior to commencing any of the activities described in subsection (b), LICENSEE shall
furnish to NUPOTENTIAL a certificate of insurance evidencing that it has obtained the amount and type of insurance required pursuant to this Section 10.3. 

(g) LICENSEE shall furnish current certificate(s) of insurance evidencing the required insurance coverage on an annual basis in the annual
report due each July 31 under the provisions of Section 4.1. At any time, NUPOTENTIAL shall have the right to review the amount of insurance and to require LICENSEE to increase the amount, consistent with then-current industry practice.

 (h) The provisions of this Section 10.3 shall apply equally to any SUBLICENSEE (including any other authorized transferee of
LICENSEE’s interest which, for purposes of this Section 10.3(h) only, shall be considered a SUBLICENSEE). Any contract or agreement between LICENSEE and SUBLICENSEE shall require that SUBLICENSEE comply with all insurance requirements
provided for in this Section 10.3 in the same manner required of LICENSEE, including, but not limited to, the requirements for determining the amount, obtaining, and providing evidence of insurance to NUPOTENTIAL. No SUBLICENSEE shall commence
any of the activities described in subsection (b) without complying with the provisions of this Section 10.3 in the same manner required of LICENSEE. 

ARTICLE 11 – TERM AND TERMINATION 

11.1 Consistent with Section 2.4, unless terminated sooner, this LICENSEE terminates as provided in this Article 11, this Agreement shall expire on a country-by-country bases for the longer of (i) the last-to-expire of the licensed PATENT
RIGHTS in such country or (ii) 20 years from the EFFECTIVE DATE for the licensed KNOW HOW. 
 11.2 If LICENSEE ceases to carry on its business (or that part
of its business pertaining to LICENSED PRODUCTS), then this Agreement shall terminate upon written notice by NUPOTENTIAL. 
 11.3 If LICENSEE fails to make
any payment due to NUPOTENTIAL, NUPOTENTIAL shall have the right to terminate this Agreement after detailed written notice of the alleged payment default and the expiration of a sixty (60) days’ cure period after such notice. 

11.4 Upon any material breach or default of this Agreement by LICENSEE other than those occurrences listed in Sections 11.2 and 11.3 (the terms of which shall
take precedence over this Section 11.4, where applicable), NUPOTENTIAL shall have the right to terminate this Agreement upon the expiration of a sixty (60) days cure period. 

11.5 In the event LICENSEE brings a civil action seeking, through ordinary, declaratory or any other form of relief, to invalidate any patent licensed under
this Agreement, NUPOTENTIAL may immediately terminate this Agreement upon written notice to LICENSEE. 

 11.6 LICENSEE has the right to terminate this Agreement at any time on sixty (60) days’ written
notice to NUPOTENTIAL, with or without cause. In such a case, LICENSEE shall: 
  

	 	(a)	 pay all amounts due NUPOTENTIAL through the EFFECTIVE DATE of the termination; 

 

	 	(b)	 submit a final report in compliance with Section 4.2; 

 

	 	(c)	 return any confidential or trade secret materials provided to LICENSEE by NUPOTENTIAL in connection with this
Agreement; or, with prior written approval by NUPOTENTIAL, destroy such materials, and certify in writing that such materials have all been returned or destroyed; 

 

	 	(d)	 suspend its use of the LICENSED PRODUCT(S); 

 

	 	(e)	 provide NUPOTENTIAL with all unpatented data and know-how developed by
LICENSEE in the course of LICENSEE’s efforts to develop LICENSED PRODUCTS. NUPOTENTIAL shall have the right to use such data and know-how for any purpose whatsoever, including the right to transfer same
to future licensees; and 

  

	 	(f)	 provide NUPOTENTIAL with a copy of any regulatory data or information filed with any U.S. or foreign government
agency with respect to LICENSED PRODUCTS. 

 11.7 Upon any termination of this Agreement, and except as expressly provided herein to the
contrary, all rights and obligations of the parties hereunder shall cease, except any previously accrued rights and obligations and further as follows: 
  

	 	(1)	 Obligations to pay running royalties and other sums accruing hereunder through the day of termination, and to
make a final report under Section 4.2; 

  

	 	(2)	 NUPOTENTIAL’s rights to inspect books and records as described in Article 4, and LICENSEE’s
obligations to keep such records for the required time; 

  

	 	(3)	 Obligations to hold harmless, defend and indemnify NUPOTENTIAL and its board members, officers, employees and
agents, and to maintain insurance, and all other obligations under Article 10; 

  

	 	(4)	 Any cause of action or claim of LICENSEE or NUPOTENTIAL accrued or to accrue because of any breach or default
by the other party hereunder; 

  

	 	(5)	 The provisions of Articles 1, 9, 13 and 14; and 

 

	 	(6)	 All other terms, provisions, representations, rights and obligations contained in this Agreement that by their
sense and context are intended to survive until performance thereof by either or both parties. 

 ARTICLE 12 – REGISTRATION AND RECORDATION 

12.1 If the terms of this Agreement, or any assignment or license under this Agreement are or become such as to require that the Agreement or license
or any part thereof be registered with or reported to a national or supranational agency of any area in which LICENSEE or SUBLICENSEES would do business, then LICENSEE will, at its own expense, undertake such registration or report. Prompt notice
and appropriate verification of the act of registration or report or any agency ruling resulting from it will be supplied by LICENSEE to NUPOTENTIAL. 

12.2 LICENSEE shall also carry out, at its expense, any formal recordation of this Agreement or any license herein granted that the law of any country
requires as a prerequisite to enforceability of the Agreement or license in the courts of any such country or for other reasons and shall promptly furnish to NUPOTENTIAL appropriately verified proof of recordation. 

ARTICLE 13 – NOTICES 
 13.1
Any notice, request, report or payment required or permitted under this Agreement shall be effective when deposited in the United States Mail, first class prepaid to the address set forth below, or such other address as such party specifies by
written notice given in conformity herewith. Any notice, request, report or payment given by any other means is not effective until actually received by an authorized representative of a party. 

To NUPOTENTIAL (All correspondence including payments): 

Kenneth J. Eilertsen 
 340 E.
Parker Blvd. 
 Baton Rouge, LA 70803 

To LICENSEE: 

David Arthur 
 2450 Holcombe
Boulevard, Suite J-608, 
 Houston TX 77021 

ARTICLE 14 – MISCELLANEOUS PROVISIONS 

14.1 This Agreement shall be construed, governed, interpreted and applied according to the laws of the United States and of the State of Texas, except
that questions affecting the construction and effect of any patent shall be determined by the law of the country in which the patent was granted. 

14.2 In the event of a controversy or claim arising out of or relating to this Agreement, the PATENT RIGHTS, or the KNOW HOW, or to the breach,
validity, or termination of this Agreement or to the validity, infringement, or enforceability of PATENT RIGHTS, the parties shall first negotiate in good faith for a period of sixty (60) days to try to resolve the controversy or claim. If the
controversy or claim is unresolved after these negotiations, the parties shall then make good-faith efforts for sixty (60) days to mediate the controversy or claim in Houston, Harris County, Texas before a mediator

 
selected by the International Institute for Conflict Prevention and Resolution, (New York, New York) (CPR), under CPR’s Mediation Procedure then in effect. If the controversy or claim is
unresolved after mediation, on the written demand of either party any controversy arising out of or relating to this Agreement or to the breach, termination, or validity of this Agreement shall be settled by binding arbitration in Houston, Harris
County, Texas in accordance with CPR’s Rules for Non-Administered Arbitration of Patent and Trade Secret Disputes then in effect, before a single arbitrator. The arbitration shall be governed by the
United States Arbitration Act, 9 U.S.C. §§ 1-16, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. All applicable statutes of limitation
and defenses based on the passage of time shall be tolled while the procedures described in this Section 14.2 are pending. NUPOTENTIAL and LICENSEE shall each take such action, if any, required to effectuate this tolling. Each party is required
to continue to perform its obligations under this Agreement pending final resolution of any dispute arising out of or relating to this Agreement. Otherwise, any controversy arising under or relating to this Agreement, or the breach, termination, or
validity of this Agreement, may be adjudicated only in a court, state or federal, having jurisdiction over the subject matter and including Houston, Harris County, Texas within its territorial district. Both parties consent to the jurisdiction and
venue of such a court. A party’s right to demand arbitration of a particular dispute arising under or related to this Agreement, or the breach, termination, or validity of this Agreement, shall be waived if that party either: (1) brings a
lawsuit over that controversy or claim against the other party in any state or federal court; or (2) does not make a written demand for mediation, arbitration, or both within 60 days of service of process on that party of a summons or complaint
from the other party instituting such a lawsuit in a state or federal court of competent jurisdiction. As a condition precedent to any mediation, arbitration or lawsuit brought by LICENSEE, an AFFILIATE, or any SUBLICENSEE challenging the validity
of a United States patent within Licensed Patents, where that validity is challenged in whole or in part on the basis of prior art consisting of patents or printed publications, the challenger of that validity must first request reexamination of the
challenged patent in the United States Patent and Trademark Office based on that prior art, and must await either the denial of the reexamination request, or if the request is granted, the conclusion of reexamination proceedings, before filing any
such lawsuit or bringing any such mediation or arbitration. 
 14.3 NUPOTENTIAL and LICENSEE agree that this Agreement sets forth their entire
understanding concerning the subject matter of this Agreement, and that no modification of the Agreement will be effective unless both NUPOTENTIAL and LICENSEE agree to it in writing. LICENSEE shall reimburse NUPOTENTIAL for any legal expenses
incurred in connection with negotiating any amendments to this Agreement that may be requested by LICENSEE, regardless of whether the amendment is ultimately executed by the parties. 

14.4 This Agreement constitutes the terms under which NUPOTENTIAL will disclose to LICENSEE proprietary and confidential information and materials of
NUPOTENTIAL (CONFIDENTIAL INFORMATION). The sole purpose of these disclosures is to allow LICENSEE the ability to make, have made, import, use, offer for sale and sell any LICENSED PRODUCT associated with any PATENT RIGHTS or KNOW HOW. LICENSEE
agrees that neither it nor its officers, directors, or employees, except to the extent authorized by NUPOTENTIAL in writing, will use such CONFIDENTIAL INFORMATION for any other purpose. 

 14.4.1 LICENSEE shall limit disclosure of the CONFIDENTIAL INFORMATION to those of its officers,
directors, or employees whom LICENSEE considers necessary to complete the work associated with this Agreement. All such individuals to whom LICENSEE will disclose any CONFIDENTIAL INFORMATION shall be bound to the
non-disclosure terms and scope of use as described herein. 
 14.4.3 No obligation of confidentiality shall
exist as to such proprietary and confidential information and material that: 
  

	 	(a)	 at the time of receipt is public knowledge, or after receipt becomes public knowledge through no act or
omission of LICENSEE; 

  

	 	(b)	 was known to LICENSEE as evidenced by written records prior to the disclosure by NUPOTENTIAL;

  

	 	(c)	 is received from a third party who did not, directly or indirectly, obtain the information or material from
NUPOTENTIAL; or 

  

	 	(d)	 is required to be disclosed by a court or government agency, provided that NUPOTENTIAL is given reasonable
notice and opportunity to contest the required disclosure. 

 14.4.4 Any and all proprietary written materials or other information
in tangible form, including all copies thereof, received by LICENSEE from NUPOTENTIAL shall, upon request, be immediately returned. 
 14.4.5 In the
event that LICENSEE or any of its officers, directors, or employees breach the obligation of confidentiality contained herein, they will be liable to NUPOTENTIAL, not only for damages to NUPOTENTIAL arising out of such breach, but also for
reasonable attorney’s fees and reasonable costs incurred by NUPOTENTIAL in enforcing the obligations of this Agreement. 
 14.5 If a court of
competent jurisdiction or an arbitrator finds any term of this Agreement invalid, illegal or unenforceable, that term will be curtailed, limited or deleted, but only to the extent necessary to remove the invalidity, illegality or unenforceability,
and without in any way affecting or impairing the remaining terms. 
 14.6 LICENSEE agrees to mark all LICENSED PRODUCTS sold in the United States
with all applicable United States patent numbers. All LICENSED PRODUCTS shipped to or sold in other countries shall be marked to comply with the patent laws and practices of the countries of manufacture, use and sale. To the extent that a LICENSED
PRODUCT may be oil, gas, or other similar commodity that is placed into a pipeline and cannot easily be thus marked, this Section 14.6 shall not apply. 

14.7 No waiver by either party of any breach of this Agreement, no matter how long continuing nor how often repeated, is a waiver of any subsequent
breach thereof, nor is any delay or omission on the part of either party to exercise or insist on any right, power, or privilege hereunder a waiver of such right, power or privilege. 

 14.8 LICENSEE agrees to refrain from using and to require SUBLICENSEES to refrain from using the name
of NUPOTENTIAL in publicity or advertising without the prior written approval of NUPOTENTIAL. Reports in scientific literature and presentations of joint research and development work are not considered to be “publicity” for this purpose.
Notwithstanding this provision, without prior written approval of NUPOTENTIAL, LICENSEE and SUBLICENSEES may use NUPOTENTIAL’s name in any submission to a government agency as required by law. 

14.9 Both parties shall comply with all applicable laws and regulations, including as regards NUPOTENTIAL all securities, laws and regulations of the
SEC or any state. By way of example, the parties understand and acknowledge that the transfer of certain commodities and technical data is subject to United States laws and regulations controlling the export of such commodities and technical data,
including the Export Administration Regulations of the United States Department of Commerce and The International Traffic in Arms Regulations (22 CFR 120-130). These laws and regulations prohibit or require a
license for the export of certain types of technical data to specified countries. Both parties shall comply with all United States laws and regulations controlling the export of commodities and technical data and shall be solely responsible for any
violation of such laws and regulations on their part, and shall defend, indemnify and hold harmless and its board members, officers, employees and agents if any legal action of any nature results from the violation. Both parties further agree to
comply with the Health Insurance Portability and Accountability Act (Public Law 104-191, 110 Stat. 1936 (1996)), and to defend and hold harmless the other party and its board members, officers, employees and
agents if any legal action of any nature results from any violation thereof. 
 14.10 The relationship between the parties is that of independent
contractors. Neither party is an agent or employee of the other in connection with the exercise of any rights hereunder, and neither has any right or authority to assume or create any obligation or responsibility on behalf of the other. 

14.11 Inventorship for any future inventions, whether resulting from access to NUPOTENTIAL’s know-how and
inventions or otherwise, will be determined by the U.S. Patent laws, 35 U.S.C. §1 et seq. If LICENSEE should invoke the CREATE Act (pursuant to 35 U.S.C. §103(c)) to overcome any prior art rejections during the prosecution of
LICENSEE-owned patent applications, then all patents obtained by LICENSEE by asserting that this license is a joint research agreement under the CREATE Act will be jointly owned by NUPOTENTIAL and LICENSEE, and NUPOTENTIAL’s rights in such
patents will automatically become part of the PATENT RIGHTS licensed under this Agreement. 
 14.12 Neither party hereto is in default of any
provision of this Agreement for any failure in performance resulting from acts or events beyond the reasonable control of such party, such as Acts of God, acts of civil or military authority, civil disturbance, war, strikes, fires, natural
catastrophes or other “force majeure” events. 
 14.13 LICENSEE may not assign this Agreement without the prior written consent of
NUPOTENTIAL and shall not pledge any of the license rights granted in this Agreement as security for any creditor. Any attempted pledge of any of the rights under this Agreement or any attempted assignment of this Agreement without the prior written
consent of NUPOTENTIAL will be void from the beginning. No assignment by LICENSEE will be effective until the intended assignee agrees in writing to accept all of the terms and conditions of this Agreement. 

 14.14 LICENSEE shall notify NUPOTENTIAL, if during the term of this Agreement, LICENSEE makes
assignment for the benefit of creditors, or if proceedings in voluntary or involuntary bankruptcy or insolvency are instituted on behalf of or against LICENSEE, or if a receiver or trustee is appointed for the property of LICENSEE. NUPOTENTIAL may
then exercise its rights at its election in bankruptcy. 
 14.15 If it becomes necessary for one party to employ the services of an attorney for the
protection and enforcement of its rights under the Agreement, or to compel performance of the other party’s obligations under the Agreement, upon final judgment or award by a court of competent jurisdiction or by an arbitrator, the court or
arbitrator in its discretion may order the defaulting party to pay the other party’s reasonable attorney’s fees at both trial and appellate levels. 

14.16 NUPOTENTIAL will entertain requests by LICENSEE to allow NUPOTENTIAL employees, acting independently of their employment at NUPOTENTIAL, to serve
as consultants to LICENSEE. The terms and conditions of such a consulting agreement shall be negotiated between LICENSEE and the prospective consultant and shall be consistent with the laws of the State of Louisiana and the rules, regulations, and
policies of NUPOTENTIAL, including without limitation, Permanent Memorandum 11. It is understood that NUPOTENTIAL employees who act as consultants may not ordinarily grant rights in intellectual property to an outside employer. 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate originals by their duly authorized officers or representatives. 

 

					
	NUPOTENTIAL, INC.	 		 	SALARIUS PHARMACEUTICALS, LLC
			
	s/ Kenneth J. Eilertsen	 		 	/s/ David Arthur
	Signature	 		 	Signature
	Kenneth J. Eilertsen	 		 	David Arthur
	CEO	 		 	CEO
			
	12/17/2018	 		 	12/18/2018
	Date	 		 	Date
		 		 	

 [ *** ] = Confidential material redacted and filed separately with the Commission.

 APPENDIX A – INTELLECTUAL PROPERTY 

TO THE PATENT AND KNOW HOW NON-EXCLUSIVE LICENSE AGREEMENT 

BETWEEN 
 NUPOTENTIAL,
INC. 
 AND 

SALARIUS PHARMACEUTICALS, LLC 

EFFECTIVE THE <<20th>> DAY OF DECEMBER 2018 

U.S. Patent 7,601,699 
 U.S. Patent 8,357,666 

U.S. Patent 8,987,220 
 Any application claiming priority to
PCT/US2006/029944 
 Any application claiming priority to PCT/US2009/0269763 

Any application claiming priority to PCT/US2010/0159459 
 KNOW
HOW based on two document presentations to LICENSEE as outlined below: 
 [ *** ] 

[ *** ] 

 APPENDIX B – EXAMPLES OF OWNERSHIP UNITS 

 

	(a)	 Example 1: NUPOTENTIAL assists in the raise of $999,999 in Series A financing with no contingent financing

  

	 	i.	 Under 3.1 (a), NUPOTENTIAL will receive ~90
OWNERSHIP UNITS 

  

	 	ii.	 Under 3.12 (a) NUPOTENTIAL will receive ~46 OWNERSHIP UNITS 

 

	 	iii.	 Under these two provisions, NUPOTENTIAL receives a total of ~ 136 OWNERSHIP UNITS valued at ~$148,000
representing ~0.8% of LICENSEE fully-diluted stock at the close of Series A Tranche 2 (estimated at ~18,000 fully-diluted outstanding units) 

  

	(b)	 Example 2: NUPOTENTIAL assists in the raise of $1,500,000 in Series A financing with no contingent financing

  

	 	i.	 Under 3.1 (a), NUPOTENTIAL will receive ~90
OWNERSHIP UNITS 

  

	 	ii.	 Under 3.1 (b), NUPOTENTIAL will receive ~90
OWNERSHIP UNITS 

  

	 	iii.	 Under 3.12 (a), NUPOTENTIAL will receive ~69 OWNERSHIP UNITS 

 

	 	iv.	 Under these three provisions, NUPOTENTIAL receives a total of ~249 OWNERSHIP UNITS valued at ~$270,000
representing ~1.4% of LICENSEE fully-diluted stock at the close of Series A Tranche 2 

  

	(c)	 Example 3: NUPOTENTIAL assists in the raise of $1,00,000 in Series A financing and $1,000,000 in contingent
financing (valued at $1,600 per unit, inclusive of any discounts) 

  

	 	i.	 Under 3.1 (a), NUPOTENTIAL will receive ~90
OWNERSHIP UNITS 

  

	 	ii.	 Under 3.1 (b), NUPOTENTIAL will receive ~90
OWNERSHIP UNITS 

  

	 	iii.	 Under 3.12 (a) NUPOTENTIAL will receive ~46 OWNERSHIP UNITS 

 

	 	iv.	 Under 3.12 (b), NUPOTENTIAL will receive ~31 OWNERSHIP UNITS 

 

	 	v.	 Under these four provisions, NUPOTENTIAL receives a total of ~260 OWNERSHIP UNITS valued at ~$416,000
representing ~1.4% of LICENSEE fully-diluted stock at the close of Contingent Financing. Note: this value reflects a step up in value for Series A and licensing fee OWNERSHIP UNITS. 

 APPENDIX C – STOCK TRANSFER AGREEMENT 

THIS UNIT TRANSFER AGREEMENT is effective as of the ____ day of __________, 2018 (the EFFECTIVE DATE), between Salarius Pharmaceuticals, LLC., a
Delaware limited liability company, with offices located at 2450 Holcombe Blvd., Ste. J-608, Houston, TX 77021 USA (SALARIUS), and NuPotential, Inc., a Delaware incorporated company, with offices
located at Louisiana Emerging Technology Center, 340 E. Parker Blvd., Baton Rouge, LA 70803 (NUPOTENTIAL). 
 This STOCK TRANSFER AGREEMENT implements the
terms of Section 3.11, including subparts, of that certain LICENSE AGREEMENT by and between the SALARIUS and NUPOTENTIAL effective as of ____ ____________, 2018 (LICENSE AGREEMENT). Capitalized terms in this STOCK TRANSFER AGREEMENT shall have
the meanings ascribed to such terms in the LICENSE AGREEMENT unless provided otherwise herein. 
 In accordance with Section 3.11 of the LICENSE
AGREEMENT and in further consideration of the mutual promises, covenants and terms hereinafter set forth, the LICENSEE and NUPOTENTIAL hereby agree as follows: 

1.0 Issuance of Common Units to NUPOTENTIAL. Subject to the terms set forth in this Agreement, the SALARIUS hereby issues and transfers to
NUPOTENTIAL the number of Common Units set forth on Schedule A (the “NUPOTENTIAL Common Units”), which as of the date hereof represents the APPLICABLE PERCENTAGE of all the current issued and outstanding Units of the
SALARIUS on a fully diluted basis. “Fully diluted” for purposes of this Agreement shall have the meaning set forth in Section 3.9.1 of the License Agreement. All Units of the NUPOTENTIAL Common Units are evidenced by
certificates duly issued and executed by the SALARIUS in the name of NUPOTENTIAL and shall be delivered to NUPOTENTIAL simultaneous with its execution of this Agreement. 

2.0 NUPOTENTIAL Common Unit Rights. The NUPOTENTIAL Common Units shall possess all rights and privileges granted to holders of Common Units as
provided in the SALARIUS’s Third Amended and Restated LLC Agreement filed October ____, ________ (“LLC Agreement”). 
 3.0
Representations and Warranties of SALARIUS. SALARIUS hereby represents and warrants to NUPOTENTIAL as follows as of the date hereof: 
  

	 	(a)	 Organization; Good Standing; Qualification. SALARIUS is a duly organized and validly existing under, and by
virtue of, the laws of the State of Delaware and is in good standing under such laws. SALARIUS has the requisite power to own and operate its properties and assets, and to carry on its business as presently conducted and as proposed to be conducted.
SALARIUS is in good standing and qualified to do business as a foreign corporation in every other jurisdiction where required by law. 

  

	 	(b)	 <<Corporate>> Power. SALARIUS has all requisite legal and <<corporate>> power
and authority to enter into this Agreement, to issue and transfer the shares to NUPOTENTIAL Common Stock hereunder and to carry out and perform its obligations under the terms of this Agreement. 

	 	(c)	 Authorization. Issuance of all Units of the NUPOTENTIAL Common Units has been duly authorized, and all
such Units are validly issued, fully paid and nonassessable, and free of any liens, encumbrances, or security interests whatsoever; provided, however, that the NUPOTENTIAL Common Units may be subject to restrictions on transfer under
state and/or federal securities laws and as set forth in the LLC Agreement. 

  

	 	(d)	 Certificate; Bylaws. A true and complete copy of the Certificate, including all amendments thereto, is attached
hereto as Exhibit 1. A true and complete copy of the Bylaws of the SALARIUS, including all amendments thereto, is attached hereto as Exhibit 2. 

  

	 	(e)	 SALARIUS has the full right, power and authority to enter into this Agreement and to make the representations
and warranties contained herein, and this Agreement constitutes the valid and binding obligation of the SALARIUS enforceable in accordance with its terms. 

  

	 	(f)	 No consent, approval or authorization of, or designation, declaration or filing with, any governmental
authority or other person, firm or entity on the part of the SALARIUS is required in connection with the valid execution, delivery or performance of this Agreement by the SALARIUS. 

4.0 Representations and Warranties of NUPOTENTIAL. NUPOTENTIAL hereby represents and warrants to SALARIUS as follows: 

 

	 	(a)	 (i) Except for the transfer of a portion of the NUPOTENTIAL Common Stock as permitted by
Section 4(a)(iii), the NUPOTENTIAL Common Stock is being (and with respect to any additional NUPOTENTIAL Common Stock issued to NUPOTENTIAL in the future pursuant to Section 3.11 of the LICENSE AGREEMENT, will be) acquired for
NUPOTENTIAL’s own account, for investment and not with a view to, or for the purpose of resale in connection with, any distribution or public offering thereof within the meaning of the Securities Act of 1933 as amended (SECURITIES ACT) or
applicable state securities law. 

 (ii) NUPOTENTIAL does not have any contract, undertaking, agreement or arrangement with
any person or entity to sell, transfer or otherwise dispose of the NUPOTENTIAL Common Stock except for transfers to inventor(s) pursuant to Section 4(a)(iii). 

(iii) At the request of NUPOTENTIAL, a portion of the NUPOTENTIAL Common Stock may be transferred to and registered in the name of the
inventor(s) as permitted by the Regulations of NUPOTENTIAL. 
  

	 	(b)	 NUPOTENTIAL understands that the Units NUPOTENTIAL Common Units have not been registered under the
Securities Act by reason of their issuance in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act. 

  

	 	(c)	 NUPOTENTIAL has the full right, power and authority to enter into this Agreement and to make the
representations and warranties contained herein, and this Agreement constitutes valid and binding obligations of NUPOTENTIAL enforceable in accordance with its terms. 

	 	(d)	 No consent, approval or authorization of, or designation, declaration or filing with, any governmental
authority on the part of NUPOTENTIAL is required in connection with the valid execution, delivery or performance of this Agreement by NUPOTENTIAL. 

  

	 	(e)	 NUPOTENTIAL is an “accredited investor” as defined in Rule 501(a) of Regulation D promulgated under
the Securities Act. 

 5.0 Legend. NUPOTENTIAL understands and acknowledges that the certificates representing the
NUPOTENTIAL Common Units will be endorsed with the following legend: 
 THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND EXCEPT FOR THE TRANSFER OF A PORTION OF THE NUPOTENTIAL COMMON STOCK AS PERMITTED BY SECTION 4(a)(iii) OF THE STOCK TRANSFER AGREEMENT BETWEEN SALARIUS AND NUPOTENTIAL DATED AS OF ______________ ____, 2018,
MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE TRANSFER IS MADE IN COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT OR SUCH SALE, TRANSFER,
ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT. 
 SALARIUS need not register a transfer of
any shares of NUPOTENTIAL Common Units and may also instruct its transfer agent not to register the transfer of any Units of NUPOTENTIAL Common Units, unless the conditions specified in the foregoing legend are satisfied. 

6.0 Miscellaneous. 
  

	 	(a)	 Governing Law. This Agreement shall be governed in all respects by the laws of the State of Texas. The
parties agree that any action brought by any party under or in relation to this Agreement, including without limitation to interpret or enforce any provision of this Agreement, shall be brought in, and each party agrees to and does hereby submit to
the jurisdiction and venue of, any state or federal court located in Harris County, Texas. 

  

	 	(b)	 Survival. The representations, warranties, covenants and agreements made herein shall survive the
execution of this Agreement and shall in no way be affected by any investigation of the subject matter thereof made by or on behalf of SALARIUS or NUPOTENTIAL. 

 

	 	(c)	 Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure
to the benefit of, and be binding upon, the successors and assigns of the parties hereto. SALARIUS may not assign this Agreement. 

  

	 	(d)	 Entire Agreement. This Agreement, including the Exhibits to this Agreement and the License Agreement,
constitute the full and entire understanding and agreement between the parties with regard to the subject matter hereof and thereof. Any prior agreements, understandings or representations with respect to the subject matter hereof and thereof, is
superseded by this Agreement and the License Agreement and shall have no further force or effect. 

	 	(e)	 Notices. All notices and other communications required or permitted hereunder shall be in writing, shall
be sent via facsimile, overnight courier service or mailed by certified or registered mail, postage prepaid, return receipt requested, addressed or sent to the parties at their respective addresses set forth on the signature page to this Agreement
and shall be effective upon receipt. 

  

	 	(f)	 Severability. In case any provision of this Agreement shall be declared invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

  

	 	(g)	 Expenses. Each party shall bear its respective expenses and legal fees incurred with respect to this
Agreement and the transactions contemplated herein. 

  

	 	(h)	 Counterpart Execution. This Agreement may be executed in any number of counterparts, each of which shall
be an original, but all of which shall together constitute one and the same instrument. For purposes hereof, facsimile and electronically scanned copies hereof and facsimile and electronically scanned signatures hereof shall be authorized and deemed
effective. 

 IN WITNESS WHEREOF, the parties hereto have executed this Stock Transfer Agreement by their duly authorized officers or
representatives. 
  

					
	 NUPOTENTIAL, INC.
	 		 	 SALARIUS PHARMACEUTICALS, LLC

			
	 /s/ Kenneth J. Eilersten
	 		 	 /s/ David Arthur

	Signature	 		 	Signature
	 Kenneth J. Eilertsen
	 		 	 David Arthur

	 CEO
	 		 	 CEO

			
	 12/17/2018
	 		 	 12/18/2018

	Date	 		 	DateEX-10.5

 Exhibit 10.5 

AMENDED AND RESTATED 

EXECUTIVE EMPLOYMENT AGREEMENT 

THIS AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”), is entered into as of February 05, 2019 and
effective as of December 15, 2018 (the “Effective Date”), by and between Salarius Pharmaceuticals, LLC, a Delaware limited liability company (the “Company”), and David J. Arthur (the
“Executive”), an individual residing at the address set forth on the signature page below. 
 W I T N E S S E T H: 

WHEREAS, the Company and the Executive previously entered into an Executive Employment Agreement with the effective date of November 1,
2015, which was subsequently amended on March 13, 2017 and May 15, 2017 (as amended, the “Prior Agreement”); 

WHEREAS, the Company’s Board of Managers has approved an increase of Executive’s annual base salary from $225,120 to $315,000,
effective December 15, 2018; and 
 WHEREAS, the parties intend for this Agreement to amend and restate, replace and supersede the
Prior Agreement in its entirety, and to provide for the continued employment of the Executive pursuant to the terms and conditions set forth in this Agreement. 

NOW, THEREFORE, in consideration of the foregoing, of the mutual promises herein, and of other good and valuable consideration, including the
employment of the Executive by the Company and the compensation to be received by the Executive from the Company from time to time, and specifically the compensation to be received by the Executive pursuant to Section 4 hereof, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending legally to be bound, hereby agree as follows: 

1.    Employment. The Company hereby employs the Executive and the Executive hereby accepts employment as the Chief
Executive Officer and as a member of the Board of Managers of the Company upon the terms and conditions of this Agreement. The Executive shall report to the Board of Managers of the Company. The Executive shall be subject to an annual performance
review during his employment by the Company, which shall occur in January following the applicable calendar year. 

2.    Duties. The Executive shall faithfully perform all duties of the Company related to the position or positions
held by the Executive, including, but not limited to, strategic planning, financial planning, preparation of business and marketing plans, raising funds, operational oversight of consultants and employees, and have such other duties as are typical
of the Chief Executive Officer of a similarly situated company and those prescribed from time to time by the Board of Managers of the Company. During the Term (defined below) of employment, Executive shall devote substantially all of his time,
during normal business hours, to the business and affairs of the Company in furtherance of its best interests. Additionally, the Company has agreed that the Executive, subject to the Executive’s obligations hereunder, shall also be permitted to
make personal investments, perform reasonable volunteer services, and with the prior consent of the Company, serve on outside boards of directors for noncompeting non-profit and for profit corporations. The
Executive shall comply with all Company policies, standards, rules and regulations (the “Company Policies”) and all applicable government laws, rules and regulations that are now or hereafter in effect. The Executive acknowledges
receipt of copies of all written Company Policies that are in effect as of the date of this Agreement. 

 3.    Term. Unless earlier terminated as provided herein, the
term of this Agreement (the “Term”) shall commence on the Effective Date and shall continue until (a) earlier terminated or amended as provided herein or (b) either party gives 30 days prior written notice. 

4.    Compensation. During the Term, as compensation for the services rendered by the Executive under this
Agreement, the Executive shall be entitled to receive the following (all payments are subject to applicable withholdings). 

(a)    Base Salary. Beginning as of the Effective Date, the Executive shall receive a monthly salary of $26,250
(equal to an annual salary of $315,000) payable on the 15th day of each month (the “Base Salary”), less applicable deductions and withholding taxes, while providing services under the terms of this Agreement, and Executive shall
continue to receive a W-2 and be taxed as a W-2 employee of the Company. 

(b)    Restricted Units(c) . The Executive shall be eligible for the grant of Restricted Units or other equity
during the Term based upon the Executive’s performance, which shall be awarded at the Board of Managers’ discretion. 

(d)    Benefits. The Executive shall be entitled to receive benefits substantially similar to those set forth on
the Executive Summary attached hereto as Exhibit A and incorporated herein by reference, in accordance with the terms and conditions of the applicable plan documents provided that the Executive meets the eligibility requirements
thereof. All such benefits are subject to amendment or termination from time to time by the Company without the consent of the Executive or any other employee of the Company. 

(e)    Vacation and Holidays. The Executive shall be entitled to four weeks (20 days) paid vacation per calendar
year (with the vacation for any partial year being prorated) to be taken at such times as may be approved by the Board of Managers. Vacation days earned in one calendar year may not be used in any subsequent calendar year. The Executive will also be
eligible for Company paid holidays (currently nine per year plus three floating holidays). The Executive shall also be entitled to take time off for illness or personal emergencies, which shall not be counted as vacation days. 

(f)    Relocation Expenses. If the Executive is required to move during the Term because of the Company’s
relocation, the Company shall pay for certain relocation expenses, including but limited to expenses related to the sale of the Executive’s home, packing and relocation of belongings, temporary thing expenses, and reasonable travel expenses to
effectuate the move (Executive and spouse), up to the amount of $100,000 (exclusive of any gross-up amount required for tax purposes because of the taxable nature of some of the relocation expenses). All
moving related expenses must be documented and requests for reimbursement be made in accordance with the Company’s standard reimbursement policy. The Company and Executive shall enter into a relocation expense agreement if and when it becomes
necessary to do so. 

  
 2 

 (g)    Business Expenses. The Company shall pay, or reimburse the
Executive for, all reasonable expenses incurred by the Executive directly related to conduct of the business of the Company; provided that, the Executive complies with the Company’s policies for the reimbursement or advancement of business
expenses that are now or hereafter in effect and provides the Board of Managers or the Executive Chairman reasonable advance notice prior to decisions to incur significant expenses in the amount of $50,000 or more. 

5.    Termination. This Agreement and the Executive’s employment by the Company shall or may be terminated, as
the case may be, as follows: 
 (a)    Termination by the Executive. The Executive may terminate this Agreement
and Executive’s employment by the Company 30 days after providing written notice to the Company. 

(b)    Termination by the Company. The Company may terminate this Agreement and the Executive’s employment by
the Company upon notice to the Executive (or Executive’s personal representative): 
 (i)    at any time and for
any reason; 
 (ii)    upon the death of the Executive, in which case this Agreement shall terminate immediately;
provided that, such termination shall not prejudice any benefits payable to the Executive’s spouse or beneficiaries which are fully vested as of the date of death; 

(iii)    if the Executive is “permanently disabled” (as defined herein), in which case this Agreement
shall terminate immediately; provided that, such termination shall not prejudice any benefits payable to the Executive, the Executive’s spouse or beneficiaries which are fully vested as of the date of the termination of this Agreement. For
purposes of this Agreement, the Executive shall be considered “permanently disabled” when a qualified medical doctor mutually acceptable to the Company and the Executive or the Executive’s personal representative shall have certified
in writing that: (A) the Executive is unable, because of a medically determinable physical or mental disability, to perform substantially all of the Executive’s duties, with or without a reasonable accommodation, for more than 180 calendar
days measured from the last full day of work; or (B) by reason of mental or physical disability, it is unlikely that the Executive will be able, within 180 calendar days, to resume substantially all business duties and responsibilities in which
the Executive was previously engaged and otherwise discharge the Executive’s duties under this Agreement; 

(iv)    upon the liquidation, dissolution or discontinuance of business by the Company in any manner or the filing of any
petition by or against the Company under any federal or state bankruptcy or insolvency laws, which petition shall not be dismissed within 60 days after filing; provided that, such termination shall not prejudice the Executive’s rights as a
member or a creditor of the Company; or 

  
 3 

 (v)    “for cause” (as defined herein). “For
cause” shall be determined by the Board of Managers by a majority vote without the participation of the Executive in such vote and shall mean: 

(A)    any material breach of the terms of this Agreement by the Executive, or the failure of the Executive to diligently
and properly perform the Executive’s duties for the Company or the Executive’s failure to achieve the objectives specified by the Board of Managers, which breach or failure is not cured within 30 days after written notice thereof; 

(B)    the Executive’s misappropriation or unauthorized use of the Company’s tangible or intangible property,
or any other similar agreement regarding confidentiality, intellectual property rights, non-competition or non-solicitation; 

(C)    any material failure to comply with the Company Policies or any other policies and/or directives of the Board of
Managers, which failure is not cured within 30 days after written notice thereof; provided, however, in the case of failure to comply with Company Policies related to harassment, unlawful discrimination, retaliation or workplace violence a 30 day
cure period and written notice thereof is not required; 
 (D)    the Executive’s use of illegal drugs or any
illegal substance, or the Executive’s use of alcohol in any manner that materially interferes with the performance of the Executive’s duties under this Agreement; 

(E)    any dishonest or illegal action (including, without limitation, embezzlement) or any other action whether or not
dishonest or illegal by the Executive which is materially detrimental to the interest and well-being of the Company, including, without limitation, harm to its reputation; 

(F)    the Executive’s failure to fully disclose any material conflict of interest that the Executive may have with
the Company in a transaction between the Company and any third party which is materially detrimental to the interest and well-being of the Company; or 

(G)    any adverse action or omission by the Executive which would be required to be disclosed pursuant to public
securities laws or which would limit the ability of the Company or any entity affiliated with the Company to sell securities under any Federal or state law or which would disqualify the Company or any affiliated entity from any exemption otherwise
available to it. 
 (c)    Obligations of the Company Upon Termination. 

(i)    Upon the termination of this Agreement by the Company pursuant to paragraph 5(b)(ii), (iii), (iv) or (v), the
Company shall have no further obligations other than the payment of all compensation and other benefits payable to the Executive through the date of such termination, which shall be paid on or before the Company’s next regularly scheduled
payday following the termination date, unless such amount is not then-calculable, in which case payment shall be made on the first regularly scheduled payday after the amount is calculable. 

  
 4 

 (ii)    Upon termination of this Agreement by the Company or its
successor in interest pursuant to paragraph 5(b)(i) and provided that the Executive executes and does not revoke a release and settlement agreement in the form acceptable to the Company within the time period then-specified by the Company but in any
event no later than 90 days after the date of termination (the “Release”), the Company shall: (a) pay the Executive an amount that is equal to 12 months of Executive’s then-current Base Salary, less applicable tax
withholdings and deductions, with such payments to be made in equal semi-monthly installments in accordance with the Company’s standard payroll practices beginning on the first regularly scheduled pay date of the Company processed after
Executive has executed, delivered to the Company and not revoked the Release and continuing until such time as the amount has been paid in full; (b) as it applies to the health and welfare benefits Executive was enrolled in as of his last day
of employment, subject to the Executive’s timely election of continuation of coverage under COBRA or state law equivalent or enrollment in individual marketplace benefits, pay the Executive an amount that is equal to the aggregate total of the
premium payments for the period of 12 months or until the date the Executive secures reasonably comparable coverage with another employer, if sooner, less applicable taxes and withholdings, with such payments to be made to the Executive in equal
monthly or semi-monthly installments in accordance with the Company’s standard payroll practices beginning on the first regularly scheduled pay date processed after Executive has executed, delivered to the Company and not revoked the Release
(if applicable); provided, however, that in all cases, Executive shall be responsible for payment of the COBRA or other applicable premium after the expiration of the 12 month period specified above; and 

(iii)    Upon termination of this Agreement by the Company or a successor or interest pursuant to paragraph 5(b)(i) or by
the Executive for Good Reason (as defined below) within the eighteen (18) month period following a Change in Control and provided that the Executive executes and does not revoke a release and settlement agreement in the form acceptable to the
Company within the time period then-specified by the Company but in any event no later than 90 days after the date of termination (the “Release”), the Company shall: (a) pay the Executive an amount equal to 12 months of
Executive’s then-current Base Salary (less all applicable withholdings and deductions), with such payments to be made in equal semi-monthly installments in accordance with the Company’s standard payroll practices beginning on the first
regularly scheduled pay date of the Company processed after Executive has executed, delivered to the Company and not revoked the Release and continuing until such time as the amount has been paid in full; (b) as it applies to the health and
welfare benefits Executive was enrolled in as of his last day of employment, subject to the Executive’s timely election of continuation of coverage under COBRA or state law equivalent or enrollment in individual marketplace benefits, pay the
Executive an amount that is equal to the aggregate total of the monthly premium payments for the period of 12 months or until the date the Executive secures reasonably comparable coverage with another employer, if sooner, less applicable taxes and
withholdings, with such payments to be made to the Executive in equal monthly or semi-monthly installments in accordance with the Company’s standard payroll practices beginning on the first regularly scheduled pay date processed after Executive
has executed, delivered to the Company and not revoked the Release (if applicable); provided, however, that in all cases, Executive shall be responsible for payment of the COBRA or other applicable premium after the expiration of the 12 month
period specified above. 

  
 5 

 For the purposes herein, “Change in Control” for the purposes hereof
shall mean (A) a financing transaction or any transaction designed by the Company to raise money for the continuing operations of the Company or any sale, exchange, transfer, or issuance, or related series of sales, exchanges, transfers, or
issuances, of the Company’s equity units by the Company or any holder or holders thereof, in which the holders of the Company’s equity units immediately prior to such financing transaction or transaction designed by the Company to raise
money for the continuing operations of the Company or such sale, exchange, transfer, or issuance, or related series of sales, exchanges, transfers, or issuances, no longer hold as of record or retain beneficial ownership of at least fifty percent
(50%) of the Company’s outstanding equity units immediately after any such financing transaction or transaction designed by the Company to raise money for the continuing operations of the Company or such sale, exchange, transfer, or issuance,
or related series of sales, exchanges, transfers or issuances; or (B) a significant transaction involving the out-licensing of the Company’s lead clinical asset, a sale of substantially all of the
assets of the Company, or a liquidation or dissolution of the Company. 
 For the purposes herein, “Good Reason” shall mean
the occurrence of any of the following actions that have been taken by the Company without the Executive’s consent: 

(A)    for a period of twelve (12) months immediately following a Change of Control (the “Post-COC Period”), Executive’s salary, bonus or equity are reduced or diminished, or the Executive’s duties and responsibilities or position are reduced or diminished to less than an executive
“C” level position (Chief Officer of the company in some significant policy making or implementing capacity); 

(B)    any time after the Post-COC Period, the Executive’s salary, bonus or
equity are reduced or diminished, or Executive’s duties and responsibilities or position are reduced when compared to Executive’s duties and responsibilities as the Chief Executive Officer immediately prior to Change of Control; 

(C)    the Company materially breaches its obligations under this Agreement; or 

(D)    the Executive is required to relocate by more than 50 miles outside the extraterritorial jurisdiction of Houston,
Texas. 
 In addition to any requirements set forth above, in order for any of the conditions or events set forth in clauses
(A) through (D) above to constitute “Good Reason,” the Executive must inform the Company of the existence of the event within 90 days of the initial existence of the event, after which date the Company fails to cure the event
which otherwise would constitute “Good Reason” hereunder within 90 days of the receipt of notice from the Executive and the Executive must terminate employment with the Company for such “Good Reason” no later than six
(6) months after the initial existence of the event which prompted the Executive’s termination. 

  
 6 

 (d)    Resignation as Officer and Director. Upon termination of
this Agreement and the Executive’s employment hereunder for any reason by either party, the Executive shall be deemed to have resigned from all offices and positions the Executive may hold with the Company at such time including, as a Manager
or from any other positions as an officer of the Company. 
 6.    Representations and Warranties. 

(a)    The Executive represents and warrants to the Company that the Executive’s performance of this Agreement and as
an employee of the Company does not and will not breach any noncompetition agreement or any agreement to keep in confidence proprietary information acquired by the Executive in confidence or in trust prior to the Executive’s employment by the
Company. The Executive represents and warrants to the Company that the Executive has not entered into, and agrees not to enter into, any agreement that conflicts with or violates this Agreement. 

(b)    The Executive represents and warrants to the Company that the Executive has not brought and shall not bring with
the Executive to the Company, or use in the performance of the Executive’s responsibilities for the Company, any materials or documents of a former employer, partnership or those with a proprietary form of ownership which are not generally
available to the public or which did not belong to the Executive prior to the Executive’s employment with the Company, unless the Executive has obtained written authorization from the former employer, partner(s) or other owner for their
possession and use and provided the Company with a copy thereof. 
 7.    Confidentiality and Nondisclosure. The
Executive shall not, either during or after the term of this Agreement, disclose to any third party any confidential or proprietary material or information relative to the Company or any of its business relationships without the written consent of
the Company expect as necessary to perform his duties hereunder. The Executive shall not disclose to the Company, or make any use in the performance of Consulting Services hereunder of any trade secrets or confidential or proprietary item of any
other party. 
 8.    Non-Compete. During the period commencing on the
Effective Date and ending one (1) year after the termination of this Agreement, the Executive shall not: 

(a)    perform services as a consultant, employee, officer, director or as any other type of adviser, in the specific area
of the Company’s business (i.e., discovery and development of oncology focused, epigenetic, cancer drugs to treat and cure life-threatening diseases), for any other entity using the same or a similar business model which competes with the
Company; nor 
 (b)    directly or indirectly recruit or otherwise solicit or induce any employees, other consultants,
suppliers or contractors of the Company to terminate their relationships with the Company. 
 The restrictions against competition set forth
in this Section 8 are considered by the parties to be reasonable for the purposes of protecting the business of the Company. However, if any such restriction is found by any court of competent jurisdiction to be unenforceable because it extends
for too long a period of time or over too great a range of activities, it shall be interpreted to extend only over the maximum period of time or range of activities as to which it may be enforceable. 

  
 7 

 9.    Assignment of Inventions10. . All inventions, discoveries,
improvements and patentable or copyrightable works relating to the Company’s compounds, product candidates and products (“Inventions”) initiated, conceived or made by the Executive, either alone or in conjunction with others,
made while working in his capacity as an employee of the Company as described herein, shall be the sole property of the Company to the maximum extent permitted by applicable law and, to the extent permitted by law, shall be “works made for
hire” as that term is defined in the United States Copyright Act (17 U.S.C.A., Section 101). The Company shall be the sole owner of all patents, copyrights, trade secret rights, and other intellectual property or other rights in connection
therewith. Executive hereby assigns to the Company all right, title and interest he may have or acquire in all such Inventions. Executive shall assist the Company in every proper way (but at the Company’s expense) to obtain and from time to
time enforce patents, copyrights or other rights on such Inventions in any and all countries, and to that end Executive shall execute all documents necessary: (a) to apply for, obtain and vest in the name of the Company alone (unless the
Company otherwise directs) letters patent, copyrights or other analogous protection in any country throughout the world and when so obtained or vested to renew and restore the same; and (b) to defend any opposition proceedings in respect of
such applications and any opposition proceedings or petitions or applications for revocation of such letters patent, copyright or other analogous protection. The provisions of this Section 9 shall survive any termination of this Agreement. 

10.    Non-disparagement. In consideration of the foregoing provisions of
this Agreement, the parties agree to not, directly or indirectly, make or cause others to make any statement or take any action that could reasonably be construed to be a false or misleading statement of fact or a libelous, slanderous or disparaging
statement of or concerning, the other Party. 
 11.    Indemnification. 

(a)    In the event that the Executive is made a party or threatened to be made a party to any action, suit, or
proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), other than any Proceeding initiated by the Executive or the Company related to any contest or dispute between the Executive and the Company or
any of its affiliates with respect to this Agreement or the Executive’s employment hereunder, by reason of the fact that the Executive is or was a director or officer of the Company, or any affiliate of the Company, or is or was serving at the
request of the Company as a director, officer, member, employee or agent of another corporation or a partnership, joint venture, trust or other enterprise, the Executive shall be indemnified and held harmless by the Company to the maximum extent
permitted under applicable law and the LLC Agreement from and against any liabilities, costs, claims and expenses, including all costs and expenses incurred in defense of any Proceeding (including attorneys’ fees). Costs and expenses incurred
by the Executive in defense of such Proceeding (including attorneys’ fees) shall be paid by the Company in advance of the final disposition of such litigation upon receipt by the Company of: (i) a written request for payment;
(ii) appropriate documentation evidencing the incurrence, amount and nature of the costs and expenses for which payment is being sought; and (iii) an undertaking adequate under applicable law made by or on behalf of the Executive to repay
the amounts so paid if it shall ultimately be determined that the Executive is not entitled to be indemnified by the Company under this Agreement. 

  
 8 

 (b)    Within 30 days after the occurrence of the Minimum Financial
Milestone Event, the Company shall purchase and maintain at its own expense during the Term and for a reasonable time thereafter, directors’ and officers’ liability insurance providing coverage to officers and the Board of Managers of the
Company, including the Executive, with coverage limits of at least $1,000,000 per occurrence and terms that are no less favorable than the coverage provided to other managers and similarly situated executives of the Company. For the purposes of this
Agreement, the “Minimum Financial Milestone Event” shall mean the sale by the Company of its Equity Securities in one or more bona fide equity financings following the Effective Date in which the Company receives aggregate gross
proceeds of at least $500,000.00, including proceeds received in connection with any transaction in which the Company’s securities (or the securities of any successor to the Company) become publicly tradeable. “Equity
Securities” means the Company’s common stock or preferred stock issued to one or more third parties for bona fide equity financing purposes. 

12.    Debarment. Executive represents and warrants that he has not been debarred pursuant to the Federal Food,
Drug and Cosmetic Act (“Act”) or excluded from any Federal Health Care Program, including but not limited to, Medicare or Medicaid (“Federal Health Care Program”). In addition, Executive agrees to notify the Company
immediately if the Executive is debarred under the Act or excluded under a Federal Health Care Program during the Term. Executive understands that such debarment or exclusion may result in immediate termination of this Agreement. 

13.    Notices. All notices, requests, consents, approvals, and other communications to, upon, and between the
parties shall be in writing and shall be deemed to have been given, delivered, made, and received when: (a) personally delivered; (b) deposited for next day delivery by Federal Express, or other similar overnight courier services;
(c) transmitted via telefacsimile or other similar device to the attention of the Company Executive Chairman or the Executive, as appropriate, with receipt aclolowledged; or (d) three days after being sent or mailed by certified mail,
postage prepaid and return receipt requested, addressed to the Company and Executive at the addresses set forth below. 

14.    Effect. This Agreement shall be binding on and inure to the respective benefit of the Company and its
successors and assigns and the Executive and the Executive’s personal representatives. 
 15.    Entire
Agreement. This Agreement and the Restricted Unit Award Agreement constitute the entire agreement between the parties with respect to the matters set forth herein and supersede all prior agreements and understandings between the parties with
respect to the same, including the Prior Agreement. 
 16.    Severability. The invalidity or unenforceability of
any provision of this Agreement shall not affect the validity or enforceability of any other provision. 

  
 9 

 17.    Amendment and Waiver. No provision of this Agreement,
including the provisions of this Section, may be amended, modified, deleted, or waived in any manner except by a written agreement executed by the parties. 

18.    Section 409A Matters. This Agreement is intended to comply with the requirements of Section 409A of the
Internal Revenue Code of 1986, as amended and the Treasury Regulations and other applicable guidance thereunder (“Section 409A”). To the extent that there is any ambiguity as to whether this Agreement (or any of
its provisions) contravenes one or more requirements of Section 409A, such provision shall be interpreted and applied in a matter that does not result in a Section 409A violation. Without limiting the generality of the above: 

(a)    For clarity, the severance benefits specified in this Agreement (the “Severance Benefits”) are
only payable upon a “separation from service” as defined in Section 409A. The Severance Benefits shall be deemed to be series of separate payments, with each installment being treated as a separate payment. The time and form of
payment of any compensation may not be deferred or accelerated to the extent it would result in an impermissible acceleration or deferral under Section 409A. 

(b)    To the extent this Agreement contains payments which are subject to Section 409A (as opposed to exempt from
Section 409A), the Executive’s rights to such payments are not subject to anticipation, alienation, sale, transfer, pledge, encumbrance, attachment or garnishment and, where applicable, may only be transferred by will or the laws of
descent and distribution. 
 (c)    To the extent the Severance Benefits are intended to be exempt from
Section 409A as a result of an “involuntary separation from service” under Section 409A, if all conditions necessary to establish the Executive’s entitlement to such Severance Benefits have been satisfied, all Severance
Benefits shall be paid or provided in full no later than December 31st of the second calendar year following the calendar year in which the Executive’s employment terminated unless another
time period is applicable. 
 (d)    If the Employee is a “specified employee” (as defined in
Section 409A) on the termination date and a delayed payment is required by Section 409A to avoid a prohibited distribution under Section 409A, then no Severance Benefits that constitute
“non-qualified deferred compensation” under Section 409A shall be paid until the earlier of (i) the first day of the seventh month following the date of the Executive’s
“separation from service” as defined in Section 409A, or (ii) the date of the Executive’s death. Upon the expiration of the applicable deferral period, all payments deferred under this clause shall be paid in a lump sum and
any remaining severance benefits shall be paid per the schedule specified in this Agreement. 
 (e)    The Company makes
no representation that this Agreement will be exempt from or compliant with Section 409A and makes no affirmative undertaking to preclude Section 409A from applying, but does reserve the right to unilaterally amend this Agreement as may be
necessary or advisable to permit this Agreement to be in documentary and operational compliance with Section 409A which determination will be made in the sole discretion of the Company. 

  
 10 

 19.    Governing Law. This Agreement will be governed by and
construed according to the laws of the State of Delaware as such laws are applied to agreements entered into and to be performed entirely within Delaware between Delaware residents. 

20.    Counterparts. This Agreement may be executed in more than one counterpart, each of which shall be deemed an
original, and all of which shall be deemed a single agreement. This Agreement may be signed and delivered to the other Party by facsimile signature and or email; such transmission will be deemed a valid signature. 

21.    Headings. The headings herein are for convenience only and shall not affect the interpretation of this
Agreement. 
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 11 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
above written. 
  

			
	COMPANY:
	
	SALARIUS PHARMACEUTICALS, LLC
		
	By:	 	/s/ Jonathan P. Northrup
		 	Jonathan P. Northrup
		 	Executive Chairman & Manager
		
		 	Company Address:
		
		 	 2450 Holcombe Blvd. Suite J-608

		 	Houston, TX 77021
		
		 	EXECUTIVE:
		
		 	 /s/ David Arthur

		 	David Arthur
		
		 	Address:

 EXHIBIT A 

Executive Summary 
 Insurance
Benefits Summary Explanation 
 The Company currently has a health and dental insurance plan (dental insurance is available for children only under the
medical plan). The health insurance plan is a Preferred Provider Plan where there is an extensive list of doctors, specialists, hospitals, etc. that are part of the plan’s provider network. There are no referrals necessary and you are free to
choose which service providers you select In-Network. 
 There is a cost and reimbursement difference between In-Network providers and Out-of-Network providers that is very important to pay attention to because it is significant. 

In-Network the plan has a $2,000 per person/$4,000 per family deductible per year. The company pays 80% of the premium
and contributes 80% of the deductible to a Health Savings Account in quarterly payments for you to use to pay any health-related expenses not covered by the insurance plan. 

Out-of-Network providers and services are considerably more expensive due to
the more limited nature of the benefit reimbursements provided under the plan. 
 The Company offers a Dental Plan for adults that contains a tiered
reimbursement structure with basic care reimbursed at 100%, preventative care at 80% and restorative care at 50% of reasonable and customary expenses. There is a $1,000 annual maximum benefit available and the deductible must be met before any
reimbursements can be paid. 
 The Company also has a Vision Care Plan through VSP that is a provider network-based plan. The company pays 80% of the
premium for regular full-time employees. 
 With all Company benefits you must consult the Plan Document to confirm benefit eligibility, reimbursement rates
and other important matters. The Company may change providers and coverage at the discretion of the Company.

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