Document:

Exhibit
10.1

 

MEMORANDUM
OF UNDERSTANDING (MOU)

 

Memorandum
of Understanding

 

Between

 

Windlas
Biotech Private Limited

Dehradun,
Uttarakhand, India

 

And

 

Mateon
Therapeutics, Inc.

 

Agoura
Hills, California, USA

 

    	 

    	 

    

 

RECITALS

 

This
Memorandum of Understanding (MOU) sets forth our mutual understanding regarding an intended co-development agreement between Mateon
Therapeutics, Inc. (“Mateon”), having a place of business at 29397 Agoura Road, Suite 107, Agoura Hills, CA 91301,
USA and Windlas Biotech Private Limited (“Windlas”) with place of business at 705-706 Vatika Professional Point,
Golf Course Extension Road, Gurgaon, HR 122001, India. (collectively “The Parties”).

 

	 	○

	Windlas
    Biotech Private Limited is a 20-year-old company with a strong track record of research, development, manufacturing and distribution
    of pharmaceutical products in India, USA and several other emerging markets. It has four large scale manufacturing facilities
    employing more than 1500 employees and is the 5th largest Contract Development and Manufacturing Organization (CDMO) serving
    top innovator as well as generic pharma companies across the world. It has developed more than 500 different formulations
    (> 2Billion doses annually) of anti-viral, cardiovascular, anti-diabetic, anti-infective, CNS and dermatology products.
    Besides large volume manufacturing it offers research capabilities in chemical synthesis, analytical methods development,
    process optimization and formulation development that are dedicated to accelerating the pharmaceutical development projects
    of its research partners.
	 	 	 
	 	○

	Mateon
    Therapeutics is an immuno-oncology company (OTC: MATN) dedicated to the development of first in class RNA therapeutics as
    well as small molecule drugs against cancer and COVID-19.

 

AREAS
OF COLLABORATION

 

The
said Memorandum of Understanding lists the responsibilities of each party and any sub-contractors for either. It is understood
that any such agreement is subject to our mutual consensus on terms and entering into by Mateon and Windlas of a definitive agreement
(DA). The subject of this collaboration is limited to Artemisinin based products (herbal supplements and or future medicinal products).

 

    	 

    	 

    

 

OVERVIEW

 

Mateon
and Windlas wish to collaborate on formulation development, manufacturing, clinical research, commercialization and distribution
of Artemisinin as a herbal supplement (or medicinal drug in future) for use as an anti-viral (including for COVID-19 patients)
in a humanitarian effort for India. The collaboration is driven by the parties’ desire to expedite the treatment and prevention
of COVID-19. Mateon demonstrated potent anti-viral activity of the supplement versus SARS-CoV-2 based on in-vitro testing of medical
grade Artemisinin. Windlas has the required experience in developing cGMP compliant dosage forms of herbal supplements, nutraceuticals,
AYUSH products and allopathic medicines. Mateon will provide technical support Windlas to seek government approval of the herbal
supplement in India with a clinical trial to demonstrate the efficacy of Artemisinin as a therapy. Mateon recognizes Windlas’s
formulation development, manufacturing and distribution capabilities India which will be required for getting this Ayurvedic herb
to as broad a population as possible.

 

MATEON
OBLIGATIONS AND RESPONSIBILITIES

 

Mateon
will:

 

	 	●	Engage
    Windlas to sponsor and conduct the study in India.
	 	●	Will
    pay a management & services Fee to Windlas at enclosed schedule (Exhibit A) for the work in exchange for access to the
    formulation development data of Windlas and the clinical trial data for the trial conducted in India.
	 	●	Collaborate
    with Windlas and its CRO on final protocol submission to the Ethical Committees.

 

    	 

    	 

    

 

	 	●	Review
    submission dossier to the EC’s for completion.
	 	●	Provide
    scientific and operational oversight for the study.
	 	●	Provide
    in-vitro testing protocol to Windlas for the product.
	 	●	Work
    with Windlas on a joint press release upon EC approval for international publication.
	 	●	Collaborate
    with Windlas on publishing study in reputable scientific journals.

 

Windlas
OBLIGATIONS AND RESPONSIBILITIES

 

Windlas
will (at its own cost):

 

	 	●	Sponsor
    and conduct the study in India by engaging a local CRO.
	 	●	Develop
    the formulation as per the applicable GMP guidelines.
	 	●	Manufacture
    the Clinical Trial Material (CTM) batches.
	 	●	Secure
    the necessary approvals from Indian government for the clinical study including regulatory documents, dossiers for Ethical
    Committees, manufacturing licenses etc.
	 	●	Supervise
    the CRO to ensure timelines and audit CRO to ensure data quality.
	 	●	Advise
    Mateon on all aspects of the clinical trial in the course of the study.
	 	●	Provide
    Mateon any data required on the GMP manufacturing process for the product.
	 	●	Provide
    Mateon with relevant data from the study.
	 	●	Provide
    Mateon with GMP manufactured product for distribution worldwide.
	 	●	Collaborate
    with Mateon on publishing study in reputable scientific journals.
	 	●	Work
    with Mateon for a joint press release upon EC approval for international publication

 

RIGHTS
and OBLIGATIONS FOR BOTH COMPANIES

 

	 	●	Mateon
    shall retain exclusive rights to market Artemisinin worldwide on its own or its sublicensees except for India wherein Windlas
    shall have the exclusive marketing rights.
	 	●	Windlas
    shall retain exclusive right to manufacture Artemisinin product (or its future herbal or allopathic variants) at its own or
    subcontracted sites and supply to Mateon’s (or its other marketing partners’) worldwide market excluding North
    America and China (and its territories including Hong Kong, Macaw, and Taiwan). The pricing of supply shall be negotiated
    under good faith at arms-length based on CMO industry standards.
	 	●	Both
    companies will collaborate on an expanded trial in India.
	 	●	Both
    companies will collaborate on a humanitarian effort for distribution to address the pandemic

 

    	 

    	 

    

 

CONFIDENTIALITY

 

Each
Party undertakes to observe the confidentiality and secrecy of documents, information and other data received from, or supplied
to, the other Party during the period of the implementation of this Memorandum of Understanding or any other agreements made pursuant
to this Memorandum of Understanding;

 

Both
Parties agree that the provisions of this Article shall continue to be binding between the Parties notwithstanding the termination
of this Memorandum of Understanding.

 

SUSPENSION

 

Each
Party reserves the right for reasons of national security, national interest, public order or public health to suspend temporarily,
either in whole or in part, the implementation of this Memorandum of Understanding. The suspension shall take effect immediately
after notification has been given to the other Party through written communication.

 

REVISION,
MODIFICATION AND AMENDMENT

 

Either
Party may request in writing a revision, modification or amendment of all or any part of this Memorandum of Understanding;

 

Any
revision, modification or amendment agreed to by the Parties shall be in writing and shall form part of this Memorandum of Understanding.

 

Such
revision, modification or amendment shall come into force on such date as may be determined by the Parties; and

 

    	 

    	 

    

 

Any
revision, modification or amendment shall not prejudice the rights and obligations arising from or based on this Memorandum of
Understanding prior or up to the date of such revision, modification or amendment.

 

ENTRY
INTO FORCE, DURATION AND TERMINATION

 

This
Memorandum of Understanding shall come into force on the date of signing and shall remain in force until the execution of a definitive
agreement.

 

Notwithstanding
anything in this Article, either Party may terminate this Memorandum of Understanding by notifying the other Party of its intention
to terminate this Memorandum of Understanding by a notice in writing, at least 1 month prior to its intention to do so; and

 

The
suspension or termination of this Memorandum of Understanding shall not affect the implementation of on-going activities and/or
programmes which have been agreed upon before the date of the termination of this Memorandum of Understanding.

 

ARRANGEMENT
BETWEEN THE PARTIES

 

For
the avoidance of doubt, the relationship of the parties under this Memorandum is not one of legal partnership, joint venture or
agency.

 

The
parties do not intend this Memorandum to be legally binding. However, the parties may enter into such legally binding agreements
which will be separately negotiated and agreed in the future by both the parties in writing.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF the undersigned, being duly authorized thereto by their respective Organisations, have signed this Memorandum
of Understanding.

 

	Mateon
    Therapeutics Inc.	 	Windlas
    Biotech Private Limited
	 	 	 
	/s/
    Vuong Trieu/	 	/s/
    Hitesh Windlass/
	Date:
    Sept 1, 2020	 	Date:
    Sep 1, 2020
	Name:
    Vuong Trieu	 	Name:
    Hitesh Windlass
	Representative	 	Representative
    
	Position:
    Chief Executive Officer	 	Position:
    Managing Director
	Address:
                                         29397 Agoura Rd Ste 107

        Agoura
        Hills, CA, 91301-2542, USA
	 	Address:
                                         Windlas Biotech Private Limited.

        705-706
        Vatika Professional Point, Gurgaon, HR 122001, India

	Telephone:
    +1 (858) 204-7407	 	Telephone:
    +91 124 282 1030
	E-mail:
    vtrieu@oncotelic.com	 	E-mail:
    hitesh@windlasbiotech.com
	Website:
    www.mateon.com	 	Website:
    www.windlas.com

 

    	 

    	 

    

 

EXHIBIT
A FEE SCHEDULE

 

FINANCIAL
DETAILS (to be finalized in the CTA between Windlas and CRO)

 

	Professional
    Fee Charges	 	Amount
    in INR	 
	Technical
    and advisory services	 	 	68,31,000	 
	Insurance
    costs	 	 	5,50,000	 
	Local
    taxes @ 18%	 	 	13,28,580	 
	Any
    incidental costs approved by both parties (to be added in relevant milestone)	 	 	 	 
	Total
    Amount:	 	 	87,09,850	 

 

STUDY
TIMELINES AND PAYMENT MILESTONE

 

	Sr.
    No.	 	Milestone
    Payment for Professional Fee	 	Amount
    in INR	 
	1.	 	On
    Signing Contract	 	 	22,61,116	 
	2.	 	After
    1st EC approval 	 	 	16,12,116	 
	3.	 	After
    2 sites initiated for clinical trial	 	 	8,06,058	 
	4.	 	50
    % of Recruitment Over in Clinical trial	 	 	12,09,087	 
	5.	 	100 % of Recruitment
    Over	 	 	8,06,058	 
	6.	 	Database
    Lock	 	 	8,06,058	 
	7.	 	Clinical
    Study Report + any incidental amount	 	 	12,09,087	 
	 	 	Total	 	 	87,09,850	*

 

	●	Incidental
    amount if any approved by both parties to be added in relevant milestone.live-ex108_14.htm

Exhibit 10.8

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

THIS FIRST AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”) is made and entered into this 9th day of September, 2020 (the “Effective Date”), by and between PRECISION INDUSTRIES, INC., a Pennsylvania corporation (the “Company”), and THOMAS SEDLAK (the  “Executive”).  

WHEREAS, the Company and the Executive are parties to the certain Employment Agreement dated July 14, 2020 (the “Employment Agreement”); and

WHEREAS, the Parties desire to amend the Employment Agreement on the terms and conditions as hereinafter set forth.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby severally acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

1.Definitions.  Capitalized terms used in this Amendment, unless otherwise defined herein, shall have the meaning ascribed to such terms in the Employment Agreement.

 

2.Amendments to Employment Agreement.  The Employment Agreement is hereby amended as follows:

 

a.The first sentence of Section 1 shall be amended and restated in its entirety to read as follows:

 

“The Executive’s employment hereunder shall be effective as of the date hereof (the “Effective Date”) and shall continue until December 31, 2025 (the “Termination Date”), unless terminated earlier pursuant to Section 5 of this Agreement.”

 

- 1 -

 

 

b.In Section 4.2, the defined term “Base EBITDA” shall be amended and restated in its entirety to read as follows:

“Base EBITDA” means, for the particular period described below:

 

	
Time Period
	
 
	
Base EBITDA

	
January 1, 2021 through December 31, 2021
	
 
	
$4,500,000

	
 
	
 
	
 

	
January 1, 2022 through December 31, 2022
	
 
	
*

	
 
	
 
	
 

	
January 1, 2023 through December 31, 2023
	
 
	
$7,400,000

	
 
	
 
	
 

	
January 1, 2024 through December 31, 2024
	
 
	
$8,200,000

	
 
	
 
	
 

	
January 1, 2025 through December 31, 2025
	
 
	
$8,800,000

	
 
	
 
	
 

____________________

* During the fourth calendar quarter of 2021, the Executive and the Live Ventures CEO shall meet and discuss in good faith and agree to the Base EBITDA for the period January 1, 2022 through December 31, 2022.

 

Any Annual Bonus is calculated incrementally and shall be payable on or before March 31 in the year immediately following the prior fiscal year.  For example purposes only, assume that during the 2024 calendar year, the Company generates $11.0 million of EBITDA. As a result, there is $2.8 million of EBITDA Excess.  The Executive would be entitled to an Annual Bonus equal to $345,000 ($100,000 plus $125,000 plus $120,000).  In the event that the Agreement is extended by mutual agreement pursuant to Section 1, each time the Agreement is extended, the Executive and the Live Ventures CEO shall meet any discuss in good faith any changes to the Base EBITDA for purposes of calculating Executive’s Annual Bonus.  If the Employment Term does not exceed 90 days after the Fifth Anniversary, Executive shall receive a pro-rated portion of the Annual Bonus.

3.Reference to Employment Agreement.  Upon the effectiveness of this Amendment, each reference in the Employment Agreement to “this Agreement,” “hereunder,” or words of like import shall mean and be a reference to the Employment Agreement, as amended by this Amendment  

4.Effect of Amendment.  Except as otherwise expressly provided in this Amendment, nothing herein shall be deemed to amend or modify any provision of the Employment Agreement, which shall remain in full force and effect.  

 

5.Governing Law.  This Amendment, for all purposes, shall be construed in accordance with the laws of the State of Nevada without regard to conflicts of law principles.

- 2 - 

 

 

6.Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

7.Miscellaneous.  This Amendment expresses the entire understanding of the parties with respect to the subject matter hereof and may not be amended except in a writing signed by the parties.

 

8.Further Assurances.  Each Party agrees to take such further actions as the other shall reasonably request from time to time in connection herewith to evidence or give effect to the amendments set forth herein or any of the transactions contemplated hereby.

 

9.Electronic Execution and Delivery. A reproduction of this Amendment may be executed by one or more Parties hereto, and an executed copy of this Amendment may be delivered by one or more Parties hereto by electronic transmission pursuant to which the signature of or on behalf of such Party can be seen, and such execution and delivery shall be considered valid, binding and effective for all purposes. At the request of any Party hereto, all Parties hereto agree to execute an original of this Amendment as well as any electronic or other reproduction hereof.

 

10.Representations. Executive hereby represents and warrants to the Company that the execution and delivery of this Amendment, and the performance of his obligations hereunder, are not in violation of, and do not and will not conflict with or constitute a default under, any of the terms and provisions of any agreement or instrument to which Executive is subject; and that this Amendment has been duly executed and delivered by Executive and is a valid and binding obligation in accordance with its terms. It is important that Executive completely understands the terms and conditions in this Amendment. Executive expressly acknowledges and represents that: (i) Executive is competent to execute this Amendment; (ii) the Company has advised Executive to consult with an attorney before signing this Amendment; and (iii) Executive is executing this Amendment voluntarily.

 

11.Counterparts. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

(Remainder of this page intentionally left blank; signatures begin on the next page.)

- 3 - 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed under seal and delivered by their respective duly authorized officers on the date first written above.

	
	
 

PRECISION INDUSTRIES, INC.

 

 

By: ___/s/ Jon Isaac________________________

Name:  Jon Isaac

Title:  President

 

 

	
 

EXECUTIVE

 

Signature:_____/s/ Thomas Sedlak____________

Print Name:  Thomas Sedlak

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