Document:

Exhibit 4.47

 

CONFIDENTIAL

 

[*] Represents material that has been omitted and will be filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities and Exchange Act of 1934, as amended.

 

EVALUATION LICENSE

AND

 OPTION AGREEMENT

 

This Agreement dated March 31, 2015 is between the following Parties:

 

	(1)	
Agalimmune Limited, a private limited company incorporated in England and Wales (Company no. 08504603) having its registered office at 1st Floor, Thavies Inn House, 3-4 Holborn Circus, London EC1N 2HA United Kingdom (Agalimmune); and

 

	(2)	
KODE Biotech Limited, a New Zealand Limited Company (company no. 713905) having its registered office at 19 Mount Street, Scott Laboratory Building, Auckland University of Technology, Auckland, New Zealand (KBL).

 

Background

 

	A.	
Agalimmune is developing a method of promoting tumour regression or destruction by the administration of [*].

 

B.          KBL has developed a range of [*] (KODETM Constructs).

 

	C.	
Agalimmune wishes to Evaluate the use of KODETM Constructs in its method of promoting tumour regression or destruction.

 

	D.	
KBL is the owner of Exclusionary Rights in respect of the KODETM Constructs.

 

	E.	
Agalimmune wishes to be granted a license to pursue preclinical assessment of the use of the KODETM Constructs in its method of promoting tumour anticancer therapy.

 

	F.	
Agalimmune wishes to be granted the right to require KBL to enter into a license to pursue clinical development and commercialisation of the use of the KODETM Constructs in its method.

 

	G.	
KBL wishes to grant (i) the license to pursue preclinical assessment and (ii) the option, as referred to in the preceding paragraphs.

 

In pursuit of these mutual objectives the Parties agree as follows:

 

	1	
Definitions

 

In this Agreement, the following words shall have the following meanings:

 

	
Commencement Date

	
March 31, 2015.

	
Control

	
in relation to a body corporate, the power of a person to secure that the affairs of the body corporate are conducted in accordance with the wishes of that person (or persons) (a) by means of the holding of shares, or the possession of voting power, in or in relation to, that or any other body corporate; or (b) by virtue of any powers conferred by the constitutional or corporate documents, or any other document, regulating that or any other body corporate, and a “Change of Control” occurs if a person who controls any body corporate ceases to do so or if another person acquires control of it.

	
Execution Fee

	
[*]

	
Evaluate

	
Pre-clinical assessment (and “Evaluation” has a corresponding meaning).

	
Exclusionary Rights

	
Intellectual property or other proprietary rights (such as registered designs, patents and registered trademarks) that provide the right to exclude others from using the claimed subject matter.

	
Exploitation Licence

	
The licence to use KODETM Technology and KODETM Know-How in the Field, the terms of which are set out in Schedule 2, which licence comes into effect upon exercise of the Option.

	
Dollar or $

	
US Dollar.

	
Field

	
Treatment of cancer in humans including by intratumoral injection or direct application to tumours.

	
KODETM Constructs

	
[*]

 

2

 

	
KODETM Know-How

	
Information owned by KBL relating to KODETM Technology and that is not generally known and is necessary for Agalimmune to enjoy the benefits of the right and licence granted by KBL hereunder.

	
KODETM Technology

	
The KODETM Constructs, their preparation, biological entities (including cells and virions) incorporating or prepared using one or more KODETM Constructs.

	
Licensed Patents

	
All KODETM Technology granted patents and patent applications owned by KBL including those listed in Schedule 1 together with any improvements, continuations, continuations-in-part, divisionals, extensions, reissues, supplementary protection certificates and similar rights that are based on or derive priority from the foregoing.  The Licensed Patents also include any granted patents and patent applications forming part of the New Rights created or acquired by KBL during the Term.

	
Maintenance Fee

	
[*]

	
New Rights

	
Has the meaning given in Clause 5.2.

	
Option Exercise Fee

	
[*]

	
Parties

	
KBL and Agalimmune, and ‘Party’ shall mean either of them.

	
Research Report

	
A written report providing the identity, source and volumes of KODETM Constructs procured since the Commencement Date and providing a description of their use and the results obtained in sufficient detail for the results to be independently reproduced.

	
Term

	
The period defined in Clause 7.1.

	
Third Party

	
Any person other than a Party.

	
Working Day

	
A day (other than a Saturday, Sunday or public holiday) when banks in the City of London are open for business Provided that if the deemed day of receipt is not a working day in the recipient Party’s country or region, such deemed day of receipt shall be the next working day in the recipient Party’s country or region.

 

3

	2	
License and Option

 

	2.1	
Grant of License and Option.  For the Term, and subject to the provisions of this Agreement, KBL hereby grants to Agalimmune:

 

		(a)	
A worldwide, exclusive, non-sublicensable, non-transferable license under the Licensed Patents to Evaluate the use of KODETM Technology and KODETM Know-How in the Field (the Evaluation Licence); and

 

		(b)	
An exclusive right to require KBL to grant the Exploitation License to Agalimmune (the Option).

 

	2.2	
Exercise of Option.  KBL agrees that if during the Term Agalimmune delivers notice in writing exercising the Option referred to in Clause 2.1(b) (Option Exercise Notice) KBL will be deemed to have granted the Exploitation Licence upon, and with immediate effect from, delivery of such notice.  Within [*] days following delivery of the Option Exercise Notice:

 

		(a)	
Agalimmune shall make payment of the Option Exercise Fee; and

 

		(b)	
the Parties shall exchange an executed written form of the Exploitation Licence.

 

	2.3	
Term of Option.  If Agalimmune fails to deliver the Option Exercise Notice referred to in Clause 2.2 during the Term, the Option will lapse.

 

	2.4	
Negotiations with Third Parties.  If the Option lapses in accordance with Clause 2.3, KBL shall not within [*] year after the end of the Term enter into a license agreement with a Third Party on terms equally or more favourable to the Third Party than the terms that KBL had offered to Agalimmune, without first offering the same terms to Agalimmune.  If KBL wishes to enter into such a license agreement with a Third Party, it must first offer the same terms to Agalimmune, which shall have [*] days in which to notify KBL of its acceptance or rejection of the offer in writing.  If Agalimmune accepts the offer, the Parties shall immediately execute a license agreement between them on such terms.

 

	3	
Consideration

 

	3.1	
Execution Fee. Agalimmune shall pay to KBL the Execution Fee within [*] days after the Commencement Date of this Agreement.

 

	3.2	
Maintenance Fees.  Agalimmune shall pay to KBL a Maintenance Fee within [*] days after each anniversary of the Commencement Date occurring during the Term with the final Maintenance Fee being adjusted pro rata temporis to the date of termination if terminated early and to be paid within [*] days after termination.

 

4

	3.3	
Research Reports.  Agalimmune shall provide to KBL a first Research Report within [*] months after the Commencement Date and, during the Term, subsequent Research Reports at least every [*] months thereafter.

 

	3.4	
Amounts payable. The amounts stated as payable under Clauses 3.1 and 3.2 shall be paid exclusive of all transaction fees and taxes.  For the avoidance of doubt, any amount that becomes due for payment under Clause 3.2 during the Term shall remain payable after termination under Clause 7.2.

 

	4	
Supply and Use of KODETM Constructs

 

	4.1	
Authorisation of Supplier. KBL shall no later than within [*] months of the Commencement Date license a Third Party (the Authorised KODETM Construct Manufacturer and Supplier) to manufacture and supply KODETM Constructs to Agalimmune.

 

		(a)	
The license referred to in this Clause 4.1 shall require the Authorised KODETM Construct Manufacturer and Supplier to ensure all KODETM Constructs supplied to Agalimmune are, as a minimum, manufactured in accordance with [*] as certifiable by KBL or an independent Third Party approved by KBL.

 

		(b)	
Any agreement in respect of the supply of KODETM Constructs to Agalimmune shall be solely between the Authorised KODETM Construct Manufacturer and Supplier and Agalimmune.

 

		(c)	
KBL shall be entitled to receive from the Authorised KODETM Construct KODETM Construct Manufacturer and Supplier a margin over cost of goods supplied to Agalimmune of:

 

		(i)	
In 2015 -[*] upon [*] of KODETM Constructs and [*] upon amounts [*]; and

 

		(ii)	
In each subsequent year - [*].

 

	4.2	
No warranty. KBL warrants that its employees and contractors have assigned to KBL their entire right, title, and interest in and to the Licensed Patents and KODETM Know-how, and that it has authority to grant the rights and licenses set forth in this Agreement, and that it has not granted any rights in or to the Licensed Patents and KODETM Know-how to any Third Party that is inconsistent with the grant of rights in this Agreement. Save as provided, KBL makes no other warranty and accepts no liability in connection with the supply and use of KODETM Technology hereunder and specifically gives no warranty that:

 

		(a)	
KODETM Constructs will be supplied by the Authorised KODETM Construct Manufacturer and Supplier;

 

		(b)	
the use of KODETM Technology will not infringe the Exclusionary Rights owned by a Third Party; or

5

 

		(c)	
KODETM Technology will be fit for any particular purpose, safe or non-toxic.

 

	4.3	
Compliance.  Agalimmune shall comply with all applicable laws, regulations and guidelines relevant to the use of KODETM Technology. Agalimmune shall not use KODETM Technology in any experiments involving humans and will not use KODETM Technology in contact with any cells or other materials to be infused into humans.

 

	4.4	
Indemnity.  Agalimmune shall indemnify KBL, its agents and employees against all Claims and Losses arising from Agalimmune’s receipt, use, or keeping of KODETM Technology, provided that Agalimmune shall have no liability to the extent any Claim or Loss is directly attributable to the negligence or intentional misconduct of KBL or its officers, employees, and agents, or for any special incidental, consequential or punitive damages. ‘Claims’ shall mean all demands, claims, proceedings, penalties, fines, and liability (whether criminal or civil, in contract, tort, or otherwise), and ‘Losses’ shall mean all losses including without limitation financial losses, damages, reasonable legal costs, and other reasonable expenses of any nature.

 

	5	
Intellectual Property and Exclusionary Rights

 

	5.1	
Exclusionary Rights.  It is expressly agreed that the license granted by Clause 2.1(a) is for the Term and no further rights to use KODETM Technology and KODETM Know-How are granted under this Agreement.

 

	5.2	
Intellectual Property.  The ownership of any Exclusionary Rights in respect of any discoveries, innovations or inventions made jointly by the Parties during the Term, and capable of being protected under patent law, (“New Rights”) shall be allocated according to the flowchart appended to this Agreement as Schedule 3.  Such New Rights owned by KBL shall for the purposes of this Agreement be deemed to be Licensed Patents and subject to the licence, rights and obligations granted hereunder, and specifically the Evaluation Licence referred to in Clause 2.1(a) and the Option referred to in Clause 2.1(b).

 

	6	
Confidentiality

 

	6.1	
Conditions of disclosure. All information, including the Research Reports, disclosed by either Party (the ‘Disclosing Party’) directly or indirectly to the other Party (the ‘Receiving Party’) under this Agreement is provided subject to the following conditions, namely that the Receiving Party shall:

 

		(a)	
treat all such information as secret and confidential and take all proper and reasonable measures to ensure that the confidentiality of such information is maintained;

 

6

		(b)	
not use the information for any purpose other than for the purposes of the Evaluation License under Clause 2.1(a) and pursuant to the Exploitation Licence referred to in Clause 2.1(b);

 

		(c)	
not disclose the information to any Third Party (except as provided in this Agreement) without written permission;

 

		(d)	
only copy and disclose the information to those of its agents and employees who reasonably require access to the information for the purposes of the Evaluation License under Clause 2.1(a) or pursuant to the Exploitation Licence referred to in Clause 2.1(b), and on condition that all such agents and employees to whom disclosures are made:

 

		(i)	
have been made aware of the confidential nature of the information and the conditions of disclosure defined in this Agreement; and

 

		(ii)	
shall have obligations of confidentiality to the Receiving Party no less onerous than those set out in this Clause 6;

 

		(e)	
acknowledge the Disclosing Party as the source of, and mark as ‘Confidential’ any document incorporating the information; and

 

		(f)	
return to the Disclosing Party or destroy all documents and materials (and any copies) containing, reflecting, incorporating, or based on the Disclosing Party’s information, including the Research Reports, to the Disclosing Party at its request and erase all the Disclosing Party's information from its computer systems or which is stored in electronic form (to the extent reasonably possible and where not possible the Receiving party undertakes not to access the Disclosing Party’s information) and against request certify in writing to the Disclosing Party that it has so complied.

 

	6.2	
Exemptions. The obligations set out in Clause 6.1 will not apply to information which:

 

		(a)	
at the time of disclosure is publicly known or which after disclosure becomes publicly known through no fault of the Receiving Party; or

 

		(b)	
the Receiving Party can show was in its possession at the time of disclosure or which is independently developed by the Receiving Party and was not acquired directly or indirectly from the Disclosing Party; or

 

		(c)	
is made public at any time by the Disclosing Party, or by others with the permission of the Disclosing Party; or

 

		(d)	
is received by the Receiving Party from a Third Party without similar restriction and without breach of any confidentiality obligations to the Disclosing Party.

 

7

	6.3	
No warranty. No warranty or representation is given by either party as to the accuracy or completeness of information provided under this Agreement.  Each party must make its own independent assessment of the information provided and rely on its own judgment in reaching any conclusion.

 

	6.4	
Survival. The obligations set out in this Clause 6 shall survive any termination of this Agreement for a period of [*] years after the Term.

 

	7	
Term

 

	7.1	
Commencement and termination by expiry. This Agreement, and the Evaluation Licence and Option granted under Clause 2.1 shall come into effect on the Commencement Date and, unless terminated earlier in accordance with this Clause 7, shall continue in force for a period of [*] years.

 

	7.2	
Early termination.  Agalimmune may terminate this Agreement at any time on [*] days’ notice in writing to KBL, or on [*] days’ notice if there is a Change of Control of KBL, or KBL sells all or substantially all of the KODETM Technology assets, to an entity that is a competitor of Agalimmune being an entity engaged, directly or indirectly, in any one or more of the development, production, marketing, distribution and/or exploitation of a competing product in the Field..  Either Party may terminate this Agreement at any time by notice in writing to the other Party (the ‘Other Party’), such notice to take effect as specified in the notice:

 

		(a)	
if the Other Party is in persistent breach of this Agreement and, in the case of a breach capable of remedy within [*] days, the breach is not remedied within [*] days of the Other Party’s receiving notice specifying the breach and requiring its remedy; or

 

		(b)	
if (A) the Other Party becomes insolvent or unable to pay its debts as and when they become due, or (B) an order is made or a resolution is passed for the winding up of the Other Party (other than voluntarily for the purpose of solvent amalgamation or reconstruction), or (C) a liquidator, administrator, administrative receiver, receiver, or trustee is appointed in respect of the whole or any part of the Other Party’s assets or business, or (D) the Other Party makes any composition with its creditors, or (E) the Other Party ceases to continue its business, or (F) as a result of debt and/or maladministration the Other Party takes or suffers any similar or analogous action in any jurisdiction.

 

	7.3	
Exercise of option.  Upon exercise of the Option referred to in Clause 2.1(b) during the Term, this Agreement will be deemed to have terminated upon the grant of the Exploitation Licence.

 

	7.4	
Consequences of termination.  Upon termination of this Agreement for any reason (and in the absence of the Exploitation Licence being entered into Agalimmune shall no longer be licensed to use or otherwise exploit in any way, either directly or indirectly, KODETM Technology or KODETM Know-How, in so far and for as long as any of the Licensed Patents remain in force, and except in respect of any accrued rights, neither Party shall be under any further obligation to the other.

 

8

	7.5	
Rights surviving termination. A Party’s right of termination under this Agreement, and the exercise of any such right, shall be without prejudice to any other right or remedy (including any right to claim damages) that such Party may have in the event of a breach of contract or other default by the other Party.  Upon termination of this Agreement for any reason the provisions of Clauses 3.4, 4.4, 5.2, 6, 7.4, this Clause 7.5 and any provision of this Agreement necessary for the interpretation or enforcement of this Agreement, shall remain in force.

 

	8	
General

 

	8.1	
Law and jurisdiction. This Agreement is made under English law and the Parties submit to the exclusive jurisdiction of the English courts in respect of any dispute arising out of or relating to this Agreement and its formation (including non-contractual disputes or claims) except that a Party may bring interim proceedings in any court of competent jurisdiction.

 

	8.2	
Addresses and contact details. Any notice to be given under this Agreement shall be in writing and shall be (i) delivered personally, or (ii) sent by pre-paid first-class post or recorded delivery, or (iii) (if the notice is to be served by post outside the country from which it is sent) sent by airmail; or (iv) sent by fax , in each case to the addresses and fax numbers set out below (or such other address or fax number as the applicable Party may from time to time notify to the other Party in accordance with this Clause 8.2) and marked for the attention of the representatives of the Parties as set out below:

 

		(a)	
KBL’s Address:

 

KODE Biotech Limited

19 Mount Street

Scott Laboratory Building

 Auckland University of Technology, Auckland, New Zealand

 

Fax:  +64 9 921 9719

 

Representative for notices – Prof. Stephen M HENRY

 

9

		(b)	
Agalimmune’s Address:

 

Agalimmune Limited

1st Floor Thavies Inn House

3-4 Holborn Circus

London EC1N 2HA

 United Kingdom

 

Fax: +44 (0) 203 603 6387

 

Representative for notices – Graham Griffiths / The Directors

 

	8.3	
Deemed receipt of notices. Notices sent as above shall be deemed to have been received (i) if delivered personally, at the time of delivery (ii) in the case of pre-paid first class post, recorded delivery, on the sixth Working Day after postage; and (iii) in the case of registered airmail, on the sixth Working Day from the date of posting transmission.

 

	8.4	
Emails. E-mail communications may be used but only if the relevant party has specifically authorised it for such purposes at the time.  Subject to such authorisation, notices sent by email shall be deemed to have been received on the next Working Day after transmission provided that an appropriate non-automated acknowledgement of receipt has been returned to the sender by the e-mail recipient.  The sender shall in any event send a hard copy by post to the address as specified herein.

 

	8.5	
Interpretation. Except where otherwise stated, any reference in this Agreement to a Clause or a Schedule is to a Clause of or a Schedule to this Agreement. The provisions of Schedules 1 to 3 shall form part of this Agreement as if set out herein. The headings and sub-headings in this document are inserted for convenience only and shall not affect the construction or interpretation of this Agreement.

 

	8.6	
Entire agreement. This Agreement sets out the entire agreement between the Parties relating to its subject matter and supersedes all prior oral or written agreements, arrangements or understandings between them relating to such subject matter, including the Mutual Confidentiality Undertakings dated 29 July 2014. The Parties acknowledge that they are not relying on any representation, agreement, term, or condition that is not set out in this Agreement. Nothing in this Agreement excludes liability for fraud.

 

	8.7	
Variation. This Agreement, including this Clause 8.7, may be amended, varied or renewed only by a document in writing signed by a duly authorized representative of each Party.

 

	8.8	
No assignment. Neither Party shall assign, transfer, charge, encumber, or otherwise deal with the whole or any part of this Agreement, or its rights or obligations under this Agreement without the prior written consent of the other Party.

 

10

Agreed by the Parties through their authorized signatories:

 

	
For and on behalf of KODE Biotech Limited:

	 	
For and on behalf of Agalimmune Limited:

	 	 	 
	
/s/ Stephen Henry

	 	
/s/ Graham Griffiths

	
Signed

	 	
Signed

	 	 	 
	
Stephen Henry

	 	
Graham Griffiths

	
Print name

	 	
Print name

	 	 	 
	
CEO

	 	
Director

	
Job title

	 	
Job title

	 	 	 
	
31 March 2015

	 	
31 March 2015

	
Date

	 	
Date

	 	 	 

11

Schedule 1

 

	
KBL ref

	
Title

	
Filing date

	
CC

	
Application no.

(Patent no.)

	
Priority document(s)

	
Status

	
[*]

	
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[*]

 

 

12

	
KBL ref

	
Title

	
Filing date

	
CC

	
Application no.

(Patent no.)

	
Priority document(s)

	
Status

	
[*]

	
[*]

	
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13

Schedule 2

 

FORM OF EXPLOITATION LICENCE

 

 

[*]

14

PATENT & KNOW-HOW

 

LICENSE AGREEMENT

 

THIS AGREEMENT dated ........................................ 20__ is between the following Parties:

 

	(3)	
KODE BIOTECH LIMITED, a New Zealand limited company (company no. 713905) having its registered office at 19 Mount Street, Scott Laboratory Building, Auckland University of Technology, Auckland (the “Licensor”); and

 

	(4)	
AGALIMMUNE LIMITED, a private limited company incorporated in England and Wales (company no. 08504603) having its registered office at 1st Floor, Thavies Inn House, 3-4 Holborn Circus, London EC1N 2HA (the “Licensee”).

 

Background

 

		A.	
The Licensor has developed a range of water dispersible glycan-lipid conjugates and is the owner of Exclusionary Rights in respect of the KODETM Constructs and associated KODETM Know how.

 

		B.	
The Licensee undertakes research into tumour anticancer therapy in humans and is developing a method of promoting tumour regression and destruction by the administration of glycolipids comprising the α-gal epitope.

 

		C.	
On March 31, 2015 the Licensee was granted by the Licensor the right to require the Licensor to enter into a license to pursue clinical development and commercialisation of the use of the KODETM Technology as part of its method (“Option”).

 

		D.	
The Licensee has exercised its Option by delivery of an “Option Exercise Notice” as referred to in the Option, and this Agreement accordingly sets out the terms and conditions of the license granted by the Licensor.

 

IT IS AGREED as follows:

 

	9	
Definitions and Interpretation

 

	9.1	
Definitions. In this Agreement (including the Background), the following words shall have the following meanings:

 

Affiliate: means an entity that controls, is controlled by, or is under common control with a Party to this Agreement.  The term “control” as used in the preceding sentence means possession of the power to direct or call for the direction of the management and policies of an entity, whether through ownership of a majority of the outstanding voting securities, by contract, or otherwise.

 

Agalimmune Patent: means the patent application by the Licensee listed in Part 2 of Schedule 1 together with any and all granted patents, continuations, continuations-in-part, divisionals, extensions, reissues, supplementary protection certificates and similar rights that are based on or derive priority from the foregoing.

 

Confidential Information: means any confidential or proprietary information (including without limitation any trade secrets, Exclusionary Rights, and any inventions, designs, information, know-how, specifications, formulae, data, processes, methods, techniques and other technology) in any form belonging or relating to one Party (the “Disclosing Party”), its Affiliates, its or their business or affairs and directly or indirectly furnished to the other Party (the “Receiving Party”) in connection with this Agreement.

 

15

Control: in relation to a body corporate, the power of a person to secure that the affairs of the body corporate are conducted in accordance with the wishes of that person (or persons):

 

(a) by means of the holding of shares, or the possession of voting power, in or in relation to, that or any other body corporate; or

 

(b) by virtue of any powers conferred by the constitutional or corporate documents, or any other document, regulating that or any other body corporate,

 

and a Change of Control occurs if a person who controls any body corporate ceases to do so or if another person acquires control of it.

 

Dollar or $: US Dollar.

 

Effective Date: The date of delivery of the Option Exercise Notice.

 

Exclusionary Rights: Intellectual property or other proprietary rights (such as registered designs, patents and registered trademarks) that provide the right to exclude others from using the claimed subject matter.

 

Field: Treatment of cancer in humans whether by way of intramural injection or direct application to tumours.

 

KODETM Constructs: [*]

 

KODETM Know-How: all know-how owned by the Licensor relating to KODETM Technology that is not generally known and is useful or necessary for the Licensee to enjoy the benefits of the right and licence granted by the Licensor under Clause 2 including Regulatory Documentation, and all pre-clinical and clinical data owned by the Licensor that is relevant to the Licensed Product.  Examples of the KODETM Know-How include, without limitation, all technical, scientific and other know-how, information and data, trade secrets, knowledge, technology, means, methods, processes, practices, formulas, instructions, skills, techniques, procedures, experiences, ideas, technical assistance, designs, drawings, assembly procedures, computer programs, apparatuses, specifications, data, results and other material, including pre-clinical and clinical trial results (including Regulatory Documentation), manufacturing procedures, test procedures and purification and isolation techniques, whether or not confidential, proprietary, patented or patentable.

 

KODETM Technology: The KODETM Constructs, their preparation, and biological entities (including cells and virions) incorporating or prepared using KODETM Constructs.

 

LCIA: The London Court of International Arbitration.

 

Licensed Patents: All KODE Technology granted patents and applications owned by the Licensor including those listed in Part 1 of Schedule 1 together with any improvements, continuations, continuations-in-part, divisionals, extensions, reissues, supplementary protection certificates and similar rights that are based on or derive priority from the foregoing.  The Licensed Patents also include any granted patents and applications forming part of the New Rights created or acquired by the Licensor during the Term.

 

Licensed Product: A product in the Field that cannot be developed, manufactured, used, or sold without infringing one or more Valid Claims.

 

Net Sales: means the actual invoiced amount on sales of Licensed Products in arm's length transactions by the Licensee (and/or its Affiliates or a Sublicensee as applicable), less the following:

 

(a) customary trade, quantity, or cash discounts to non-affiliated brokers or agents to the extent actually allowed and taken;

 

(b) amounts repaid or credited by reason of rejection or return;

 

(c) to the extent identified on the invoice, any costs of packing, insurance, transport, delivery; and

 

(d) to the extent separately stated on purchase orders, invoices, or other documents of sale, any taxes or other governmental charges levied on the production, sale, transportation, delivery, or use of a Licensed Product which is paid by or on behalf of the Licensee (or the applicable Affiliates or Sublicensee).

 

16

In any transfers of Licensed Products between any of the Licensee and its Affiliates (or a Sublicensee and its Affiliates as applicable), Net Sales are subject to and calculated based on the final sale of the Licensed Product to an independent Third Party.  If non-monetary consideration is received for any Licensed Products, Net Sales are calculated based on the fair market value of that consideration.  If a Licensed Product is used or disposed of by the Licensee (or its Affiliate or the Sublicensee as applicable) in the provision of a commercial service, the Licensed Product is sold and the Net Sales are calculated based on the sales price of the Licensed Product to an independent Third Party during the same Royalty Period or, in the absence of sales, on the fair market value of the Licensed Product as determined by the Parties in good faith.

 

New Rights has the meaning given in Clause 6.2(a).

 

Parties: The Licensor and the Licensee and their respective permitted successors and assigns, and ‘Party’ shall mean each of them.

 

Pound or £: GBP Pound Sterling.

 

Regulatory Approval: Means any and all approvals (including pricing and reimbursement approvals), licenses, registrations or authorizations of any Regulatory Authority, necessary for the marketing and sale of a Licensed Product in a country.

 

Regulatory Authority: Means any applicable government entities regulating or otherwise exercising authority with respect to the manufacturing, marketing, sale, reimbursement and/or pricing of the Licensed Products in the Territory, including, without limitation, in the United States, the United States Food and Drug Administration, and in the European Union, the European Medicines Agency, and any successor governmental authority having substantially the same function.

 

Regulatory Documentation: Means (a) all applications, registrations, licenses, authorizations and approvals submitted to or received from Regulatory Authorities by Licensor, (b) all correspondence submitted to or received from Regulatory Authorities by Licensor, (c) minutes and official contact reports relating to any communications by Licensor with any Regulatory Authority, (d) all supporting documents and all clinical studies and tests by Licensor, relating to any Licensed Product, and (e) all data contained in any of the foregoing, including all advertising and promotion documents, adverse event files and complaint files, but excluding any and all Regulatory Approvals with respect to such Licensed Product.

 

Royalty Period: means the partial calendar quarter commencing on the date on which the first sale of a Licensed Product is entered into (including for clarity by a Sublicensee) and every complete or partial calendar quarter thereafter during which either:

 

(a) this Agreement remains in effect; or

 

(b) the Licensee has the right to complete and sell work-in-progress and inventory of Licensed Products.

 

Sublicensee: means any sublicensee of the rights granted the Licensee under this Agreement, and “Sublicense” shall be construed accordingly.

 

Sublicense Net Sales: means Net Sales by a Sublicensee.

 

Sublicense Royalties: means royalties due to and received by the Licensee under a Sublicense in respect of sales of Licensed Products.

 

Term: The period defined in Clause 8.1.

 

Third Party: Any person other than a Party.

 

Valid Claim: means:

 

(a) a claim of an issued and unexpired patent covering the Licensed Patents which has not been permanently revoked or held unenforceable or invalid by an unappealable or unappealed decision of a court or government agency of competent jurisdiction; or

 

17

(b) a claim of a pending patent application within the Licensed Patents that has not been abandoned or finally disallowed within [*] years of the first filing date without the possibility of appeal or refiling.

 

For the purposes of Clause 8.1 (Commencement and termination by expiry) Valid Claims shall be construed with regard to the Agalimmune Patent mutatis mutandis.

 

	9.2	
Interpretation. Except where otherwise stated, any reference in this Agreement to a Clause or a Schedule is to a Clause of or a Schedule to this Agreement. The provisions of the Schedules shall form part of this Agreement as if set out here. The headings and sub-headings in this document are inserted for convenience only and shall not affect the construction or interpretation of this Agreement.

 

	10	
License

 

	10.1	
Grant of License. For the Term, and subject to the provisions of this Agreement, the Licensor hereby grants to the Licensee a worldwide, exclusive, royalty-bearing, transferable license in the Exclusionary Rights under the Licensed Patents to:

 

		(a)	
use the KODETM Technology and KODETM Know-how in the Field; and

 

		(b)	
develop, have developed, make, have made, use, have used, import, have imported, sell and have sold Licensed Products.

 

The Licensor undertakes not to grant others the right to exploit the Exclusionary Rights under the Licensed Patents in the Field during the Term.

 

	10.2	
Additional Know-how.  The Licensor shall promptly make available to the Licensee such further KODETM Know-how as the Licensor acquires after the date of this Agreement and is at liberty to disclose to the Licensee for commercial use. Such further KODETM Know-how so supplied by the Licensor under this Clause shall, where it has been identified by describing and recording it when provided to the Licensee, be deemed to be part of the KODETM Know-how. Nothing in this Agreement shall constitute any representation or warranty that any such further KODETM Know-how supplied to the Licensee pursuant to this Clause is accurate, up to date, complete, or relevant to the KODETM Technology or the manufacture of the Licensed Products.

 

	10.3	
Sublicenses.  The Licensee may grant Sublicenses of its rights licensed under this Agreement.  All Sublicenses executed by the Licensee pursuant to this Clause shall expressly bind the Sublicensee to the relevant terms of this Agreement. The Licensee shall promptly furnish the Licensor with a fully executed copy of any Sublicense.

 

	10.4	
Retained Rights.  For the avoidance of doubt the Licensor retains the right to use and exploit the Exclusionary Rights under the Licensed Patents outside of the Field.

 

	10.5	
Supply and Use of KODETM Constructs. To enable the Licensee to enjoy the benefits of the right and licence granted by the Licensor hereunder the Licensee will from time to time require a reliable, good quality supply of KODETM Constructs.  The Licensor shall take commercially reasonable steps during the term of this licence to ensure that at all material times one or more suppliers (each an “Authorised KODETM Construct Manufacturer & Supplier”) is granted a license to enable the manufacture and supply of KODETM Constructs to the Licensee. Each such licence shall:

 

		(a)	
require the Authorised KODETM Construct Manufacturer & Supplier to ensure that all KODETM Constructs supplied to the Licensee are, as a minimum, manufactured in accordance with [*] as certified by the Licensor (or an appropriate independent Third Party certifier approved by the Licensor); and

 

		(b)	
provide that the Licensor’s royalties for such licence shall not exceed a margin of [*] over the Authorised KODETM Construct Manufacturer & Supplier’s costs of goods manufactured.

 

18

The Licensor shall give reasonable consideration to (if applicable) a proposal or proposals from time to time by the Licensee for:

 

		(c)	
the Licensee itself to become an Authorised KODETM Construct Manufacturer & Supplier; and/or

 

		(d)	
for a Third Party to become an Authorised KODETM Construct Manufacturer & Supplier,

 

subject always to agreeing commercially reasonable quality and supply terms for the manufacture and supply KODETM Constructs for the Licensee. Such a license is required to be separately negotiated with the Licensor.

 

	11	
Diligence and Commercialisation Requirements

 

	11.1	
Diligence Requirements.  The Licensee shall use reasonable diligent efforts or require its Affiliates and Sublicensees to use reasonable diligent efforts to develop Licensed Products and to introduce Licensed Products into the commercial market.

 

	11.2	
Development Plans & Reports.  The Licensee shall furnish the Licensor with plans and reports as follows:

 

	
Plans & Report

	
Due Date

	
A written business plan under which the Licensee intends as of the Effective Date to develop and commercialize Licensed Products

	
Within [*] days of the Effective Date

	
A written update of the business plan including without limitation:

·          research and development progress during the prior year;

·          efforts to obtain regulatory approval during the prior year;

·          marketing, and sales figures during the prior year;

·          a discussion of its intended development and commercialisation efforts; and

·          sales projections for the current year.

	
Within [*] days after the start of each calendar year, beginning on 1 January 2016

 

	11.3	
Compliance.

 

		(a)	
KODETM Constructs. The Licensee shall comply with all applicable laws, regulations and guidelines relevant to the use of KODETM Constructs.

 

		(b)	
Licensed Products Compliance.  The Licensee shall take all reasonable steps to comply with, and shall require that its Affiliates and Sublicensees comply with, all local, state, federal, and international laws and regulations relating to the development, testing, manufacture, use, and sale of Licensed Products.  The Licensee expressly agrees to comply with the following:

 

		(i)	
The Licensee or its Affiliates or Sublicensees shall obtain all necessary approvals from the United States Food & Drug Administration and any similar foreign governmental authorities in countries or regions in which the Licensee or Affiliate or Sublicensee intends to make, use, or sell Licensed Products.

 

		(ii)	
The Licensee and its Affiliates and Sublicensees shall comply with all United States laws and regulations controlling the export of commodities and technical data, including without limitation all Export Administration Regulations of the United States Department of Commerce.  Among other things, these laws and regulations prohibit or require a license for the export of certain types of commodities and technical data to specified countries and foreign nationals.  The Licensee hereby gives written assurance that it will comply with and will cause its Affiliates and Sublicensees to comply with all United States export control laws and regulations, that it bears sole responsibility for any violation of those laws and regulations by itself or its Affiliates or Sublicensees.

 

19

	11.4	
Use of Licensor Name.  In accordance with Clause 7.2, but subject to Clause 3.5, the Licensee and its Affiliates and Sublicensees may not use the name “KODE Biotech Ltd” or any variation of that name in connection with the marketing or sale of any Licensed Products without prior consent.

 

	11.5	
Use of Trademarks.  The Licensee shall be entitled to use (and to grant the right to Sublicensees to use) the KODETM trademark and other relevant trademarks of Licensor in the form and manner approved by the Licensor (acting reasonably) on or in relation to Licensed Products manufactured and sold, including without limitation use in brochures and marketing materials, provided always that such use is legally permissible.  The Licensee will submit sample copies of the proposed use (including the details of proposed package inserts, packaging or promotional or advertising materials) to the Licensor for approval, such approval not to be unreasonably withheld or delayed.  The Licensor hereby grants to the Licensee the non-exclusive right to use the KODETM trademark and other relevant Licensor trademark(s) as contemplated in accordance with the terms of and for the duration of this agreement.

 

	11.6	
Marking of Licensed Products.  To the extent commercially feasible and consistent with prevailing business practices, the Licensee shall mark and shall cause its Affiliates and Sublicensees to mark all Licensed Products that are manufactured or sold under this Agreement with the number of each issued patent under the Licensed Patents that applies to a Licensed Product.

 

	11.7	
Indemnity.

 

		(a)	
Indemnitees.  The Licensee shall indemnify the Licensor, its agents and employees (“Indemnitees”) against all Claims and Losses arising from the Licensee’s receipt, use, or keeping of KODETM Constructs, provided that the Licensee shall have no liability to the extent any Claim or Loss is directly attributable to the negligence or intentional misconduct of the Licensor or its officers, employees, and agents, or for any special incidental, consequential or punitive damages. ‘Claims’ shall mean all demands, claims, proceedings, penalties, fines, and liability (whether criminal or civil, in contract, tort, or otherwise), and ‘Losses’ shall mean all losses including without limitation financial losses, damages, reasonable legal costs, and other reasonable expenses of any nature.

 

		(b)	
Procedures.  The Indemnitees agree to provide the Licensee with prompt written notice of any claim, suit, action, demand, or judgment for which indemnification is sought under this Agreement.  The Indemnitees shall cooperate fully with the Licensee in the defence and will permit the Licensee to conduct and control the defence and the disposition of the claim, suit, or action (including all decisions relative to litigation, appeal, and settlement).  However, any Indemnitee may (acting reasonably) retain its own counsel, at the expense of the Licensee, if representation of the Indemnitee by the counsel retained by the Licensee would be inappropriate because of actual or potential conflicts in the interests of the Indemnitee and any other party represented by that counsel.  The Licensee agrees to keep the Licensor reasonably informed of the progress in the defence and disposition of the Claim and to consult with the Licensor regarding any proposed settlement.

 

20

		(c)	
Insurance.  The Licensee shall maintain insurance that is reasonably sufficient to fulfil its obligations under this Agreement, including the following:

 

	
Effective Date

	
Insurance

	
Coverage

	
Commencing on the Effective Date

	
Workers’ compensation insurance

	
Statutory limits as required by law

	
Commencing on the Effective Date

	
Commercial general liability insurance

	
[*]

	
Upon commencing testing or sales

	
Clinical trials insurance (upon commencing testing) / product liability insurance (upon sale)

	
[*]

	
In connection with the conduct of any clinical testing

	
Professional liability insurance (errors and omissions)

	
[*]

 

		(i)	
Upon commencement of coverage (as required above) and thereafter annually upon renewal, the Licensee shall provide the Licensor with written evidence of insurance.

 

		(ii)	
Such insurance shall list the Licensor as a named insured and additional insured.  All policies shall be endorsed to indicate that they provide primary coverage without right of contribution by any insurance carrier or self-insured by the Licensor. A waiver of subrogation in favour of the indemnitees shall also be endorsed to the policies.  If such coverage is not written on an “occurrence” basis (i.e., it is written on a “claims made” basis), the Licensee shall maintain such insurance coverage during the term of this Agreement and for five (5) years thereafter.

 

		(iii)	
For purposes of this Clause, references to the “Licensee” shall include any Affiliate of the Licensee to which the Licensee grants a sublicense hereunder or to which it otherwise delegates any of the Licensee’s obligations hereunder, and the Licensee shall ensure that the foregoing insurance obligations shall apply to any such Affiliate.

 

	12	
Consideration

 

	12.1	
Licence Fee.  In partial consideration of the rights granted under this Agreement, the Licensee shall pay to the Licensor the following licence issue fee

 

	
Event

	
Payment

	
Within [*] days after the first anniversary of the Effective Date

	
[*]

 

This license issue fee payment is non-refundable and is not creditable against any other payments due to the Licensor under this Agreement.

 

	12.2	
Maintenance Fees.  The Licensee shall pay to the Licensor the following licence maintenance fees:

 

	
Event

	
Payment

	
Within [*] days after each anniversary of the Effective Date

	
[*]

 

These license maintenance fee payments are non-refundable and are not creditable against any other payments due to the Licensor under this Agreement.

 

21

	12.3	
Milestone Payments.  The Licensee shall pay to the Licensor the following milestone payments:

 

	
Event

	
Payment

	
Within [*] days after initiation of first Phase III Clinical Trial of a Licensed Product (initiation being first dose of first patient)

	
[*]

	
Within [*] days after approval of first Licensed Product for a first indication

	
[*]

	
Within [*] days after first commercial sale of a first Licensed Product following approval for use in humans

	
[*]

	
Within [*] days after the financial year end of the first financial year in which net sales of Licensed Products for use in humans achieve not less than [*]

	
[*]

 

These milestone payments are non-refundable and are not creditable against any other payments due to the Licensor under this Agreement.

 

	12.4	
Net Sales Royalties.  The Licensee shall pay to the Licensor royalties in respect of its sales of Licensed Products as follows:

 

	
Net Sales

	
Payment

	
Net Sales in [*]

	
[*]

	
Net Sales in [*]

	
[*]

 

	12.5	
Sublicense Royalties. The Licensee shall pay to the Licensor royalties in respect of sales of Licensed Products by each Sublicensee as follows:

 

		(a)	
The greater of:

 

		(i)	
[*]

 

		(ii)	
[*]

 

		(b)	
The greater of:

 

		(i)	
[*]

 

		(ii)	
[*]

 

	12.6	
Change of Control. In order that the royalty rates in Clause 4.5 in respect of sales of Licensed Products by each Sublicensee shall not be circumvented, if a Sublicensee or affiliated party acquires Control of the Licensee, and within [*] months the Sublicense previously held by such Sublicensee is terminated, then with effect from the date of termination of the Sublicense the royalty rates payable by the Licensee to the Licensor pursuant to Clause 4.4 in respect of those sales of Licensed Products which would otherwise have been sold pursuant to the applicable Sublicense shall be adjusted to such rate as preserves the effective royalty rate to which the Licensor was entitled immediately prior to termination of the Sublicense.

 

	12.7	
No Multiple Royalties. No multiple royalties shall be payable because any Licensed Product is covered by more than one Licensed Patent.

 

22

	12.8	
Buy Out.  The Licensor shall give reasonable consideration to any proposal by the Licensee (or its assignee or successor) for a one-time lump sum payment in full consideration of all future payment obligations to the Licensor under this Agreement, including, without limitation, royalties, milestone payments, license maintenance fees and manufacturing royalties; provided, however that the Licensor shall have the right in its sole discretion to reject any and all proposals for any reason whatsoever or for no reason at all.

 

	13	
Royalty Reports; Payments; Records

 

	13.1	
First Sale. The Licensee shall report to the Licensor the date of:

 

		(a)	
First manufacture and supply of KODETM Constructs within [*] days after occurrence by the Licensee and by each Authorised Manufacturer & Supplier; and

 

		(b)	
First commercial sale (whether by the Licensee, or its Affiliate or any Sublicensee) of each Licensed Product within [*] days after occurrence in each country.

 

	13.2	
Reports and Payments.

 

		(a)	
Within [*] days after the conclusion of each Royalty Period, the Licensee shall deliver to the Licensor a report containing the following information:

 

		(i)	
With regard to KODETM Constructs acquired, the identity of the Authorised KODETM Construct Manufacturer & Supplier(s) and the volumes of KODETM Construct purchased, and the Licensor will promptly thereafter provide such information as reasonably required to verify its margin royalty in respect of such supplies;

 

		(ii)	
With regard to the royalties payable in respect of Licensed Products:

 

A          the number of Licensed Products sold to independent third parties in each country;

 

		B	
the gross sales price for each Licensed Product by the Licensee and its Affiliates during the applicable Royalty Period in each country;

 

		C	
the calculation of Net Sales for the applicable Royalty Period in each country, including a listing of applicable deductions with specific identification of the Russian Federation; and

 

		D	
total royalties payable on Net Sales in United States dollars, together with the exchange rates used for conversion; and

 

		(iii)	
With regard to royalties due to the Licensor in respect of Sublicenses for the applicable Royalty Period:

 

A          details of the identity of the Sublicensees;

 

		B	
the gross Sublicense Net Sales during the applicable Royalty Period;

 

		C	
the gross Sublicense Royalties during the applicable Royalty Period; and

 

		D	
the calculation of the and total, amount due to the Licensor in respect of the Sublicense for the applicable Royalty Period in United States dollars, together with the exchange rates used for conversion.

 

23

Concurrent with this report, the Licensee shall remit to the Licensor any payment due for the applicable Royalty Period.  If no amounts are due to the Licensor for any Royalty Period, the report shall so state.

 

	13.3	
Payments in United States Dollars.  The Licensee shall make all payments in United States dollars. The Licensee shall convert foreign currency to United States dollars at the conversion rate existing in the United States (as reported in the Wall Street Journal) on the last working day of the calendar quarter preceding the applicable Royalty Period.  The Licensee may not deduct exchange, collection, or other charges.

 

	13.4	
Payments in Other Currencies.  If by law, regulation, or fiscal policy of a particular country, conversion into United States dollars or transfer of funds of a convertible currency to the United States is restricted or forbidden, the Licensee shall give the Licensor prompt written notice of the restriction within the [*] reporting and payment deadline for each Royalty Period.  The Licensee shall pay any amounts due the Licensor through whatever lawful methods the Licensor reasonably designates.  However, if the Licensor fails to designate a payment method within [*] days after the Licensor is notified of the restriction, the Licensee may deposit payment in local currency to the credit of the Licensor in a recognized banking institution selected by the Licensee and identified by written notice to the Licensor, and that deposit fulfils all obligations of the Licensee to the Licensor with respect to that payment.

 

	13.5	
Records.  The Licensee shall maintain and shall cause its Affiliates and require its Sublicensees to maintain complete and accurate records of Licensed Products that are made, used, or sold under this Agreement and any amounts payable to the Licensor in relation to Licensed Products with sufficient information to permit the Licensor to confirm the accuracy of any reports delivered to the Licensor under Clause 5.2.

 

		(a)	
The relevant party shall retain records relating to a given Royalty Period for at least [*] years after the conclusion of that Royalty Period, during which time the Licensor may, at its expense, cause its internal accountants or an independent, certified public accountant to inspect records during normal business hours for the sole purpose of verifying any reports and payments delivered under this Agreement.

 

		(b)	
The accountant may not disclose to the Licensor any information other than information relating to accuracy of reports and payments delivered under this Agreement.

 

		(c)	
The Parties shall reconcile any underpayment or overpayment within [*] days after the accountant delivers the results of the audit.

 

		(d)	
If any audit performed under this Clause 5.5 reveals an underpayment in excess of [*] percent [*] in any Royalty Period, the Licensee shall bear the full cost of the audit; if less than [*] percent [*] the Licensor shall bear its own costs.

 

		(e)	
The Licensor may exercise its rights under this Clause 5.5 only once every year and only with reasonable prior notice to the Licensee (or other relevant party).

 

	13.6	
Late Payments.  Any payments due to the Licensor by the Licensee that are not paid on or before the date payments are due under this Agreement bear interest at [*] per month, calculated on the number of days that payment is delinquent.

 

	13.7	
Method of Payment.  All payments under this Agreement should be made to “KODE Biotech Limited” and sent to the address identified below.  Each payment should reference this Agreement and identify the obligation under this Agreement that the payment satisfies.

 

	13.8	
Withholding and Similar Taxes.  Royalty payments and other payments due to the Licensor under this Agreement may not be reduced by reason of any withholding or similar taxes applicable to payments to the Licensor.  Therefore all amounts owed to the Licensor under this Agreement are net amounts and shall be grossed-up to account for any withholding taxes, value-added taxes or other taxes, levies or charges.  In the event that the Licensor shall receive any repayment of any such tax or of any credit obtained by reference to any such deduction that is attributable to such tax, the Licensor shall pay, or shall procure that there is paid, to the Licensee an amount equivalent to the amount overpaid.

 

24

	14	
Intellectual Property and Exclusionary Rights

 

	14.1	
Existing Exclusionary Rights.  It is expressly agreed that all Exclusionary Rights are and shall [*]. It is further expressly agreed that the license granted by the Licensor hereunder is for the Term and no further rights to use KODETM Technology and KODETM Know-How are granted under this Agreement.

 

	14.2	
New Exclusionary Rights.

 

		(a)	
The ownership of any Exclusionary Rights in respect of any discoveries, innovations or inventions made jointly by the Parties during the Term, and capable of being protected under patent law, shall be allocated according to the flowchart appended to this Agreement as Schedule 2 (“New Rights”).

 

		(b)	
The Licensor acknowledges that the Licensee will be solely responsible for prosecuting, maintaining and defending any New Rights assigned to the Licensee, in addition to any other patent rights owned solely by the Licensee.

 

		(i)	
Where in accordance with the flowchart at Schedule 2 the subject matter defined in a claim provided in the specification of a New Right does not consist of KODETM Technology, and the New Rights claim is not in respect of KODETM Technology, and the Licensee is allocated the rights in respect of the claimed subject matter, the Licensor shall at the Licensee’s reasonable request do all such acts and execute all such documents reasonably required by the Licensee to confirm that title in all such New Rights are assigned, or will be assigned to the Licensee, or at the Licensee’s option that the Licensor grants or will grant to the Licensee a worldwide, exclusive, royalty-free, transferable license in such New Rights, or one or more specific use, with the right to sublicense.  The Licensee shall promptly reimburse all reasonable costs and expenses incurred by the Licensor in connection with providing such assistance. The Licensor acknowledges that no further remuneration or compensation other than that provided for in this Clause is or may become due to the Licensor in respect of the performance of its obligations under this Clause 6.2(b)(i).

 

		(c)	
The Licensor shall promptly notify the Licensee on becoming aware of any improvement of the KODETM Technology, or any new KODETM Technology, that the Licensor believes may have relevance to the Field. The Licensor shall use reasonable endeavours to monitor developments by other KODETM Technology licensees.

 

	14.3	
Responsibility for Licensed Patents.

 

		(a)	
The Licensor has primary responsibility at its expense and under its own control for the preparation, filing, prosecution, and maintenance of all Licensed Patents.  The Licensor shall advise the Licensee as to the preparation, filing, prosecution, and maintenance of all Licensed Patents reasonably prior to any deadline or action with the United States Patent & Trademark Office or any foreign patent office and shall furnish the Licensee with copies of relevant documents reasonably in advance of consultation.  The Licensor shall consider in good faith any comments of the Licensee on any patent filings for the Licensed Patents.

 

		(b)	
If the Licensor desires to abandon any patent or patent application within the Licensed Patents, the Licensor shall provide the Licensee with reasonable prior notice of the intended abandonment, and the Licensee may, at its expense, prepare, file, prosecute, and maintain the relevant Licensed Patents.  If the Licensor elects to abandon any patent or patent application or cease payment of any patent expenses, the Licensor loses all rights under this Agreement with respect to the particular Licensed Patents in those one or more countries.

 

	14.4	
Cooperation.  Each Party shall provide reasonable cooperation in the preparation, filing, prosecution, and maintenance of all Licensed Patents.  Cooperation includes, without limitation, promptly informing the other Party of matters that may affect the preparation, filing, prosecution, or maintenance of Licensed Patents (such as, becoming aware of an additional inventor who is not listed as an inventor in a patent application).

 

25

	14.5	
Licensed Patents Infringement.

 

		(a)	
Notification of Infringement.  Each Party agrees to provide written notice to the other Party promptly after becoming aware of any infringement of the Licensed Patents.

 

		(b)	
Licensor Responsibility for Prosecution in the Field.  The Licensor has primary responsibility at its expense for initiating the prosecuting of any Third Party infringement of the Licensed Patents in the Field and defending the Licensed Patents in any declaratory judgment action brought by a Third Party which alleges invalidity, unenforceability, or infringement of the Licensed Patents in the Field.

 

		(i)	
Prior to commencing any action, the Licensor shall consult with the Licensee and shall in good faith consider the views of the Licensee regarding the advisability and conduct of the proposed action and its effect on this Agreement.

 

		(ii)	
The Licensor shall keep the Licensee reasonably informed of material actions taken by the Licensor pursuant to the infringement or declaratory action.

 

		(iii)	
The Licensor may not enter into any settlement, consent judgment, or other voluntary final disposition of any infringement action under this Clause without the prior written consent of the Licensee, which consent may not be unreasonably withheld or delayed.

 

		(iv)	
Any recovery obtained in an action under this Clause shall be distributed as follows: [*]

 

		(c)	
Licensee as Indispensable Party. If and to the extent required by law, the Licensee shall permit any action under Clause 6.5(b) to be brought in its name, provided that the [*]

 

		(d)	
Licensee Right to Prosecute.  If the Licensor declines or fails to initiate an infringement action within a reasonable time after it first becomes aware of the basis for the action, or to answer a declaratory judgment action within a reasonable time after the action is filed, the Licensee may prosecute the infringement or answer the declaratory judgment action under its [*].  If and to the extent required by law, the Licensor shall permit any such action to be brought in its name, [*].  If the Licensee takes action under this Clause, the Licensee shall keep the Licensor reasonably informed of material actions taken by the Licensee pursuant to the infringement or declaratory action.

 

		(e)	
Prosecution in Other Fields.  If the Licensor or any licensee of the Licensed Patents in a field other than the Field initiates an infringement action the Licensor shall keep the Licensee reasonably informed of material actions taken pursuant to the infringement or declaratory action and shall consider the views of the Licensee regarding the advisability and conduct of the proposed action and its effect on this Agreement.

 

		(f)	
Cooperation.  Both Parties shall cooperate fully in any action under this Clause which is controlled by the other Party, provided that the controlling Party reimburses the cooperating Party promptly for any reasonable costs and expenses incurred by the cooperating Party in connection with providing assistance. Unless it would be unlawful to do so in a particular jurisdiction, the controlling Party may from time to time request the cooperating Party to provide reasonable financial support towards the conduct of an action under this Clause 14.5, and the cooperating Party will give reasonable consideration to such request, having regard (amongst other things) to the advisability and conduct of such action and its effect on this Agreement, the likelihood of the action’s prospects of success, and the impact on the cooperating Party if action is not taken or (as the case may be) is discontinued. For clarity any such financial support shall be in the discretion of the cooperating Party and may be subject to such terms and for such duration, or impose such limits or conditions as the cooperating Party may determine.

 

	15	
Confidentiality & Publicity

 

	15.1	
Confidentiality

 

		(a)	
Obligations.  For [*] years after disclosure of any Confidential Information, the Receiving Party shall:

 

		(i)	
maintain Confidential Information in confidence, except that the Receiving Party may disclose or permit the disclosure of any Confidential Information to its officers or directors, officers, employees, consultants, and advisors, and those of its Affiliates and Sublicensees who are obligated to maintain the confidential nature of Confidential Information and who need to know Confidential Information for the purposes of this Agreement;

 

26

		(ii)	
use Confidential Information solely for the purposes of this Agreement; and

 

		(iii)	
allow its officers or directors, officers, employees, consultants, and advisors to reproduce the Confidential Information only to the extent necessary for the purposes of this Agreement, with all reproductions being Confidential Information.

 

The rights of use and reproduction under (ii) and (iii) above shall extend to the Licensee’s Affiliates with a need for such use and reproduction as well as to Sublicensees.

 

		(b)	
Exceptions.  The confidentiality obligations of the Receiving Party above do not apply to the extent that the Receiving Party can demonstrate that Confidential Information:

 

		(i)	
was in the public domain prior to the time of its disclosure under this Agreement;

 

		(ii)	
entered the public domain after the time of its disclosure under this Agreement through means other than an unauthorized disclosure resulting from an act or omission by the Receiving Party;

 

		(iii)	
was already known or independently developed or discovered by the Receiving Party without use of the Confidential Information;

 

		(iv)	
is or was disclosed to the Receiving Party at any time, whether prior to or after the time of its disclosure under this Agreement, by a Third Party having no fiduciary relationship with the Disclosing Party and having no obligation of confidentiality with respect to the Confidential Information; or

 

		(v)	
is required to be disclosed to comply with applicable laws or regulations or with a court or administrative order, provided that (to the extent permitted by law) the Disclosing Party receives reasonable prior written notice of the disclosure.

 

		(c)	
Ownership and Return. The Receiving Party acknowledges that the Disclosing Party (or a Third Party entrusting its own information to the Disclosing Party) owns the Confidential Information in the possession of the Receiving Party.  Upon expiration or termination of this Agreement, or at the request of the Disclosing Party, the Receiving Party shall return to the Disclosing Party all originals, copies, and summaries of documents, materials, and other tangible manifestations of Confidential Information in the possession or control of the Receiving Party, except that the Receiving Party may retain one copy of the Confidential Information in the possession of its legal counsel solely for the purpose of monitoring its obligations under this Agreement.

 

	15.2	
Publicity Restrictions.  The Licensee may not use the name of the Licensor or any of its officers, employees, or agents, or any adaptation of their names, or any terms of this Agreement in any promotional material or other public announcement or disclosure without the prior written consent of the Licensor.  The foregoing notwithstanding, the Licensee may disclose that information without the consent of the Licensor in any prospectus, offering memorandum, or other document or filing required by applicable securities laws or other applicable law or regulation, provided that the Licensee provides the Licensor at least [*] days (or a shorter period in order to enable the Licensee to make a timely announcement to fulfil applicable securities laws or other applicable law or regulation, while affording the Licensor the maximum feasible time to review the announcement) prior written notice of the proposed text for the purpose of giving the Licensor the opportunity to comment on the text.

 

	15.3	
No information warranty. No warranty or representation is given by either Party as to the accuracy or completeness of information provided under this Agreement.  Each Party must make its own independent assessment of the information provided and rely on its own judgment in reaching any conclusion.

 

27

	16	
Term and Termination

 

	16.1	
Commencement and termination by expiry. This Agreement, and the licence granted under Clause 2.1 shall come into effect on the Effective Date and, unless terminated earlier in accordance with this Clause 8, shall continue in force and remains in effect until the later of expiration or abandonment of all Valid Claims.

 

	16.2	
Voluntary termination.  The Licensee may terminate this Agreement:

 

		(a)	
at any time on [*] days’ notice in writing to the Licensor; or

 

		(b)	
on fourteen [*] days’ notice if there is a Change of Control of the Licensor, or the Licensor sells all or substantially all of the KODETM Technology assets to an entity that is a competitor of the Licensee being an entity engaged, directly or indirectly, in any one or more of the development, production, marketing, distribution and/or exploitation of a competing product in the Field.

 

	16.3	
Termination by Default. Either Party may terminate this Agreement at any time by notice in writing to the other Party (the ‘Other Party’), such notice to take effect as specified in the notice:

 

		(a)	
if the Other Party is in persistent breach of this Agreement other than a failure by the Licensee to pay any amount due to the Licensor under this Agreement, and, in the case of a breach capable of remedy within [*] days, the breach is not remedied within [*] days of the Other Party’s receiving notice specifying the breach and requiring its remedy; or

 

		(b)	
If the alleged breach consists of non-payment of any uncontested amounts due to the Licensor under this Agreement, and the Licensee fails to cure that breach within [*] days after receiving notice of the breach, the Licensor may terminate this Agreement immediately upon written notice to the Licensee;

 

		(c)	
if (A) the Other Party becomes insolvent or unable to pay its debts as and when they become due, or (B) an order is made or a resolution is passed for the winding up of the Other Party (other than voluntarily for the purpose of solvent amalgamation or reconstruction), or (C) a liquidator, administrator, administrative receiver, receiver, or trustee is appointed in respect of the whole or any part of the Other Party’s assets or business, or (D) the Other Party makes any composition with its creditors, or (E) the other Party ceases to continue its business, or (F) as a result of debt and/or maladministration the other Party takes or suffers any similar or analogous action in any jurisdiction.

 

	16.4	
Force Majeure. Neither Party is responsible for delays resulting from causes beyond its reasonable control, including without limitation fire, explosion, flood, war, strike, act of terrorism or riot, provided that the nonperforming Party uses commercially reasonable efforts to avoid or remove those causes of non-performance and continues performance under this Agreement with reasonable dispatch whenever the causes are removed.

 

	16.5	
Consequences of Termination.

 

		(a)	
Upon the early termination of this Agreement, the Licensee and its Affiliates and Sublicensees may complete and sell any work-in-progress and inventory of Licensed Products that exist as of the effective date of termination, provided that:

 

		(i)	
the Licensee is current in payment of all amounts due the Licensor under this Agreement,

 

		(ii)	
the Licensee pays the Licensor the applicable royalty on sales of Licensed Products in accordance with the terms of this Agreement; and

 

		(iii)	
the Licensee and its Affiliates and Sublicensees complete and sell all work-in-progress and inventory of Licensed Products within nine (9) months after the effective date of termination.

 

		(b)	
Upon the expiration or termination of this Agreement, the Licensor may enter into a license agreement directly with each Sublicensee on terms that are reasonably negotiated directly with each Sublicensee. Save as expressly provided, upon termination of this Agreement for any reason the Licensee shall no longer be licensed to use or otherwise exploit in any way, either directly or indirectly, KODETM Technology or KODETM Know-How, in so far and for as long as any of the Licensed Patents remain in force, and except in respect of any accrued rights and those provisions expressed to survive termination, neither Party shall be under any further obligation to the other.

 

28

		(c)	
All rights and obligations of the Parties shall cease to have effect immediately upon termination of this Agreement provided that termination shall not affect the continued existence and validity of the rights and obligations of the parties under those Clauses of this Agreement which are expressed to survive termination and any provision of this Agreement necessary for the interpretation or enforcement of this Agreement.   A Party’s right of termination under this Agreement, and the exercise of any such right, shall be without prejudice to any other right or remedy (including any right to claim damages) that such Party may have in the event of a breach of contract or other default by the other Party.

 

	17	
Dispute Resolution.

 

	17.1	
Procedures Mandatory.  The parties shall resolve any dispute arising out of or relating to this Agreement solely by means of the procedures set forth in this Clause.  These procedures constitute legally binding obligations that are an essential provision of this Agreement.  If either Party fails to observe the procedures of this Clause, as modified by their written agreement, the other Party may bring an action for specific performance in any court of competent jurisdiction.

 

	17.2	
Dispute Resolution Procedures.

 

		(a)	
Negotiation.  In the event of any dispute arising out of or relating to this Agreement, the affected Party shall notify the other Party, and the parties shall attempt in good faith to resolve the matter within [*] days after the date of notice (the “Notice Date”).  Any disputes not resolved by good faith discussions shall be referred to senior executives of each Party, who shall meet and attempt to negotiate a settlement within [*] days after the Notice Date. Subject as provided the representatives of the Parties may participate in meetings, adjourn and otherwise regulate their meetings as they think fit, and in determining whether such representatives are participating in a meeting, it is irrelevant where any representative is or how they communicate with each other.

 

		(b)	
Mediation.  If the matter remains unresolved within [*] days after the Notice Date, or if the senior executives fail to meet within [*] days after the Notice Date, the Parties shall first seek settlement of that dispute by mediation in accordance with the then current LCIA Mediation Rules, which Rules are deemed to be incorporated by reference into this Clause.

 

		(c)	
Arbitration.  If the Parties fail to resolve the dispute through mediation, or if neither Party elects to initiate mediation, each Party may serve notice on the other Party that it wishes to refer the matters in dispute to be finally resolved by arbitration under the then current LCIA Arbitration Rules, which Rules are deemed to be incorporated by reference into this Clause.

 

		(i)	
The number of arbitrators shall be one.

 

		(ii)	
The seat, or legal place, of arbitration shall be London.

 

		(iii)	
The language to be used in the arbitral proceedings shall be English.

 

		(iv)	
The governing law of the contract shall be the substantive law of England.

 

	17.3	
Preservation of Rights Pending Resolution.

 

		(a)	
Performance to Continue.  Each Party shall continue to perform its obligations under this Agreement pending final resolution of any dispute arising out of or relating to this Agreement.  However, a Party may suspend performance of its obligations during any period in which the other Party fails or refuses to perform its obligations.

 

		(b)	
Provisional Remedies.  Although the procedures specified in this Clause are the exclusive procedures for resolution of disputes arising out of or relating to this Agreement, either Party may seek a preliminary injunction or other provisional equitable relief if, in its reasonable judgment, that action is necessary to avoid irreparable harm to itself or to preserve its rights under this Agreement.

 

29

		(c)	
Statute of Limitations.  The Parties agree that all applicable statutes of limitation and time-based defences (such as, estoppel and laches) are tolled while the negotiation, mediation and/or arbitration procedures set forth in Clause 9.2.(a), 9.2(b) or 9.2(c) are pending.  The Parties shall take any actions necessary to effectuate this result.

 

	18	
General

 

	18.1	
Representations and Warranties. The Licensor warrants that its employees and contractors have assigned to the Licensor their entire right, title, and interest in and to the Licensed Patents, the KODETM Technology and KODETM Know-how, and that it has authority to grant the rights and licenses set forth in this Agreement, and that it has not granted any rights in or to the Licensed Patents and/or the KODETM Technology and/or the KODETM Know-how to any Third Party that is inconsistent with the grant of rights in this Agreement.  Save as expressly provided in this agreement, neither Party makes any other warranty or accepts any liability in connection with the supply and use of KODETM Constructs hereunder and specifically does not give any warranty that:

 

		(a)	
[*]

 

		(b)	
[*]

 

		(c)	
[*]

 

	18.2	
Limitation of liability.  Neither Party shall be entitled to recover from the other any special incidental, consequential or punitive damages.

 

	18.3	
No Partnership.  Nothing in this Agreement is intended to, or shall be deemed to, establish any partnership or joint venture between the Parties, constitute either Party the agent of the other Party, nor authorise either Party to make or enter into any commitments for or on behalf of the other Party.

 

	18.4	
Binding Effect.  This Agreement is binding upon and inures to the benefit of the Parties and their respective permitted successors and assigns.

 

	18.5	
Notices.

 

Any notices required or permitted under this Agreement shall be in writing, shall specifically refer to this Agreement, and shall be (a) delivered personally, or (b) sent by recognized national overnight courier; or (c) sent by registered or certified mail, postage prepaid, return receipt requested, to the following addresses:

 

	 	
If to the Licensor:

 

KODE Biotech Limited

19 Mount Street

Scott Laboratory Building

Auckland University of Technology

Auckland, New Zealand

 

Attention:  CEO

	
If to the Licensee:

 

Agalimmune Limited

c/o Wilson Wright LLP

1st Floor Thavies Inn House

London

United Kingdom EC1N 2HA

 

Attention:  CEO/Directors

 

All notices under this Agreement are effective and deemed received (a) if delivered personally, at the time of delivery; (b) if sent by recognized national overnight courier, two business days from the date of dispatch; (c) in the case of pre-paid registered or certified mail, four business days from the date of posting.  If deemed receipt under the previous paragraphs of this Clause is not within business hours (meaning 9.00 am to 5.30 pm Monday to Friday on a day that is not a public holiday in the place of receipt), when business next starts in the place of receipt.  To prove service in the case of post, it is sufficient to prove that the envelope containing the notice was properly addressed and posted. A Party may change its contact information immediately upon written notice to the other Party in the manner provided in this Clause.

 

30

	18.6	
Entire agreement. This Agreement sets out the entire agreement between the Parties relating to its subject matter and supersedes all prior oral or written agreements, arrangements or understandings between them relating to such subject matter, including

 

		(a)	
the Mutual Confidentiality Undertakings dated 29 July 2014.

 

		(b)	
Evaluation License & Option Agreement dated March 31, 2015.

 

The Parties acknowledge that they are not relying on any representation, agreement, term, or condition that is not set out in this Agreement. Nothing in this Agreement excludes liability for fraud.

 

	18.7	
Variation & Waiver. This Agreement, including this Clause, may be amended, varied or renewed only by a document in writing signed by a duly authorized representative of each Party.  The waiver of any rights or failure to act in a specific instance relates only to that instance and is not an agreement to waive any rights or fail to act in any other instance.

 

	18.8	
No assignment. Neither Party shall assign, transfer, charge, encumber, or otherwise deal with the whole or any part of this Agreement, or its rights or obligations under this Agreement without the prior written consent of the other Party which consent may not be unreasonably withheld or delayed.  Notwithstanding the foregoing, this Agreement may be assigned by either Party in connection with a merger, consolidation, sale of all of the equity interests of the Party, or a sale of all or substantially all of the assets of the Party to which this Agreement relates save that the prior written consent of Licensee shall be required for an assignment, transfer, or other disposal by Licensor of the whole or any part of this Agreement to a competitor of Licensee being a person engaged, directly or indirectly, in any one or more of the development, production, marketing, distribution and/or exploitation of a competing product in the Field.

 

	18.9	
Severability.  If any provision of this Agreement is held invalid or unenforceable for any reason, the invalidity or unenforceability does not affect any other provision of this Agreement, and the Parties shall negotiate in good faith to modify the Agreement to preserve (to the extent possible) their original intent.  While the dispute is pending resolution, this Agreement shall be construed as if the provision were deleted by agreement of the Parties.

 

	18.10	
Counterparts.  This Agreement may be executed in one or more counterparts, each of which is an original, and all of which together are one instrument.  Transmission by electronic means of and electronic form of a duly executed counterpart shall be deemed to constitute due and sufficient delivery of such counterpart and will be accepted and will be binding on the Parties whether or not subsequently replaced by originally signed duplicates.

 

	18.11	
Law and jurisdiction. This Agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) is governed by and construed in accordance with the laws of England irrespective of any conflicts of law principles.  The Parties submit to the exclusive jurisdiction of the English courts in respect of any dispute arising out of or relating to this Agreement (including non-contractual disputes or claims) except that a Party may bring urgent or interim proceedings in any court of competent jurisdiction.

 

THIS AGREEMENT has been entered into and executed by the Parties as of the Effective Date.

 

31

 

Agreed by the Parties through their authorized signatories:

 

	
For and on behalf of KODE Biotech Limited:

	 	
For and on behalf of Agalimmune Limited:

	 	 	 
	
Signed

	 	
Signed

	 	 	 
	
Print name

	 	
Print name

	 	 	 
	
Job title

	 	
Job title

	 	 	 
	
Date

	 	
Date

	 	 	 
	 	 	 
	 	 	
Signed

	 	 	 
	 	 	
Print name

	 	 	 
	 	 	
Job title

	 	 	 
	 	 	
Date

32

 

Schedule 1

 

PART 1

 

Licensed Patents

 

	
KBL ref

	
Title

	
Filing date

	
CC

	
Application no.

(Patent no.)

	
Priority document(s)

	
Status

	
[*]

	
[*]

	
[*]

	
[*]

	
[*]

	
[*]

[*]

	
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[*]

	
[*]

[*]

[*]

[*]

[*]

	
[*]

 

 

33

	
KBL ref

	
Title

	
Filing date

	
CC

	
Application no.

(Patent no.)

	
Priority document(s)

	
Status

 

	
[*]

	
[*]

	
[*]

	
[*]

	
[*]

	
[*]

[*]

[*]

[*]

[*]

	
[*]

	
[*]

	
[*]

	
[*]

	
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[*]

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[*]

	
[*]

34

 

Schedule 1

 

PART 2

 

Agalimmune Patent

 

	
AGAL ref

	
Title

	
Filing date

	
CC

	
Application no.

	
Priority document(s)

	
Status

	
[*]

	
[*]

	
[*]

	
[*]

	
[*]

	
[*]

	
[*]

[*]

 

 

35Exhibit 4.1

 

GUARDION HEALTH SCIENCES, INC.

PREFERRED STOCK PURCHASE AGREEMENT

SERIES B

 

This PREFERRED STOCK
PURCHASE AGREEMENT (the “Agreement”) effective as of January ____, 2017 (the “Effective Date”) is entered
into by and between Guardion Health Sciences, Inc., a Delaware corporation (“SELLER”) and                             
(“PURCHASER”).

 

W I T N E S S E T H

  

A. WHEREAS,
SELLER is selling shares of Series B Convertible Preferred Stock, $0.001 par value, with a face value of $1.00 per share convertible
into shares of Common Stock of SELLER at $0.75 per share under certain conditions, with a 6% annual dividend, paid quarterly in
Common Stock at $0.75 per share, and certain other preferential rights as more fully set forth below (the “Preferred Shares”)
and as more fully set forth in SELLER’s term sheet, which is incorporated herein by this reference (the “Term Sheet”),
in a private placement to accredited investors with whom SELLER has a pre-existing relationship (the “Private Placement”
or “Placement”).

 

B. WHEREAS,
PURCHASER is hereby provided the Certificate of Designation of the Rights, Preferences, Privileges and Restrictions of Series
B Convertible Preferred Stock of Guardion Health Sciences, Inc. (the “Certificate of Designation”) which describes
all of the rights and other features of the Preferred Shares, a true and correct copy of which is attached hereto as Exhibit
A and is incorporated herein by this reference.

 

C. WHEREAS,
SELLER desires to issue and PURCHASER desires to purchase shares of Preferred Stock of SELLER on the terms and conditions hereinafter
set forth.

 

A G R E E M E N T

 

NOW THEREFORE, in consideration
of the recitals (each of which is incorporated herein by this reference), covenants, conditions, and promises contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

ARTICLE 1

SALE AND PURCHASE OF THE SHARES

 

1.1Sale of the
Shares. Upon the execution of this Agreement, subject to the terms and conditions herein set forth, and on the basis of the
representations, warranties and agreements herein contained, SELLER hereby sells to PURCHASER, and PURCHASER hereby purchases from
SELLER, the Preferred Shares.

 

    	 	-1-	 

     

    

 

1.2 Number
of Shares, Consideration and Payment. Contemporaneously with the execution of this Agreement, SELLER hereby issues and sells
and PURCHASER hereby purchases                    Thousand
( ,000) Preferred Shares for an aggregate consideration of XX Thousand Dollars ($ ,000) (the “Purchase
Price”) whereupon PURCHASER shall submit payment in accordance with the payment instructions attached hereto as Exhibit B.

 

1.3Instruments
of Conveyance and Transfer. This Agreement shall evidence conveyance and transfer of the Preferred Shares, however, upon request,
PURCHASER may request a certificate or certificates representing the Preferred Shares to PURCHASER as shall be effective to vest
in PURCHASER all right, title and interest in and to all of the securities underlying the Preferred Shares, and PURCHASER shall
acknowledge receipt of such certificate or certificates.

 

ARTICLE 2

REPRESENTATIONS AND COVENANTS OF SELLER

 

2.1 The
SELLER hereby represents and warrants that:

 

(a) It
shall transfer title, in and to the Preferred Shares, to the PURCHASER free and clear of all liens, security interests, pledges,
encumbrances, charges, restrictions, demands and claims, of any kind and nature whatsoever, whether direct or indirect or contingent,
except as set forth in Paragraph 2.2 herein.

 

2.2 Upon
request, or as soon as practicable thereafter, the SELLER shall deliver to the PURCHASER certificates representing the securities
underlying the Preferred Shares subject to no liens, security interests, pledges, encumbrances, charges, restrictions, demands
or claims in any other party whatsoever, except as set forth in the legend on the certificate(s), which legend shall provide, in
substantial form, as follows:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF ANY STATE,
AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF FOR A PERIOD OF ONE YEAR FROM THE ISSUANCE
THEREOF EXCEPT (i) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE LAWS OR (ii) UPON
THE EXPRESS WRITTEN AGREEMENT OF THE COMPANY AND COMPLIANCE, TO THE EXTENT APPLICABLE, WITH RULE 144 UNDER THE ACT (OR ANY SIMILAR
RULE UNDER THE ACT RELATING TO THE DISPOSITION OF SECURITIES.)

 

    	 	-2-	 

     

    

 

2.3 Due
Incorporation. SELLER is a corporation duly incorporated, validly existing and in good standing under the laws of the State
of Delaware and has the requisite corporate power to own its properties and to carry on its business as currently being conducted.
SELLER’s Amended and Restated Bylaws and Amended Certificate of Incorporation are available at the SEC’s website, www.sec.gov.
SELLER, as of the date hereof, has no subsidiaries. SELLER is duly qualified as a foreign corporation to do business and is in
good standing in each jurisdiction where the nature of the business conducted or property owned by it makes such qualification
necessary, unless the failure to be so qualified or in good standing, as the case may be, would not have or would not reasonably
be expected to result in (i) a material adverse effect on the legality, validity or enforceability of this Agreement or any other
document in connection with the Placement, (ii) a material adverse effect on the results of operations, assets, business or financial
condition of SELLER, or (iii) a material adverse effect on SELLER’s ability to perform in any material respect on a timely
basis its obligations under this Agreement (any of (i), (ii) or (iii), constituting a “Material Adverse Effect”).

 

2.4 Capitalization;
Ownership of Shares. The authorized capital stock of SELLER consists of 90,000,000 shares of Common Stock and 10,000,000 shares
of Preferred Stock. As of December 31, 2016, there are approximately 30,762,034 shares of Common Stock issued and/or issuable on
a fully diluted basis, as follows: (i) 24,996,438 shares of Common Stock are issued and outstanding, all of which are duly authorized,
validly issued, fully paid and nonassessable and were not issued in violation of any preemptive rights, (ii) approximately 2,923,666
shares of Common Stock issuable upon exercise of outstanding warrants; and (iii) 2,841,930 shares of Common Stock issuable upon
conversion of the Series A Convertible Preferred Stock (collectively the “Securities”). Except for the transactions
contemplated hereby and as described herein, there are no outstanding options, warrants, convertible securities or other rights,
agreements, arrangements or commitments relating to the Common Stock or obligating SELLER to issue or sell any shares of Common
Stock, or any other interest in, SELLER. All outstanding shares of capital stock of SELLER were issued, sold and delivered in material
compliance with all applicable federal and state securities laws and the similar laws of other foreign jurisdictions as may be
applicable. No person has any right of first refusal, preemptive right, right of participation, or any similar right to participate
in the transactions contemplated by the Placement or otherwise. The issue and sale of the Preferred Shares will not obligate SELLER
to issue shares of Common Stock or other securities to any person (other than PURCHASERS) and will not result in a right of any
holder of SELLER securities to adjust the exercise, conversion, exchange or reset price under such securities.

 

2.5 Authority;
Enforceability. This Agreement and the Securities have been duly authorized, executed and delivered by SELLER and are valid
and binding agreements enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting creditors’ rights generally and to general
principles of equity, and SELLER has full corporate power and authority necessary to enter into this Agreement and to perform its
obligations hereunder. All corporate action on the part of SELLER by its officers, directors and stockholders necessary for the
authorization, execution and delivery of, and the performance by SELLER of its obligations under this Agreement has been taken.

 

    	 	-3-	 

     

    

 

2.6 Consents.
No consent, approval, authorization or order of any court, governmental agency or body or arbitrator having jurisdiction over SELLER,
or over any of its affiliates, FINRA, Nasdaq, the OTC Bulletin Board nor SELLER’s stockholders is required for execution
of this Agreement and all other agreements entered into by SELLER relating thereto, including, without limitation, the issuance
and sale of the Securities, and the performance of SELLER’s obligations hereunder and under all such other Agreements identical
to this one except for the identity of the PURCHASERS and Share amounts.

 

2.7 No
Violation or Conflict. Assuming the representations and warranties of PURCHASER herein are true and correct, neither the execution
and delivery of this Agreement nor the issuance and sale of the Securities nor the performance of SELLER’s obligations under
this Agreement and all other agreements entered into by SELLER relating thereto by SELLER will:

 

(i) violate,
conflict with, result in a material breach of, or constitute a default (or an event which with the giving of notice or the lapse
of time or both would be reasonably likely to constitute a default) or give to others any rights of termination, amendment, acceleration
or cancellation under (A) the Certificate of Incorporation or Bylaws of SELLER, (B) any decree, judgment, order, law, treaty, rule,
regulation or determination applicable to SELLER of any court, governmental agency or body, or arbitrator having jurisdiction over
SELLER or any of its affiliates (including federal and state securities laws and regulations) or over the properties or assets
of SELLER or any of its affiliates, (C) the terms of any bond, debenture, note or any other evidence of indebtedness, or any agreement,
stock option or other similar plan, indenture, lease, mortgage, deed of trust or other instrument to which SELLER or any of its
affiliates is a party, by which SELLER or any of its affiliates is bound or affected, or to which any of the properties or assets
of SELLER or any of its affiliates is subject, or (D) the terms of any “lock-up” or similar provision of any underwriting
or similar agreement to which SELLER, or any of its affiliates is a party except the violation, conflict, breach, or default of
which would not have a Material Adverse Effect on SELLER; or

 

(ii) result
in the creation or imposition of any lien, charge or encumbrance upon the securities or any of the assets of SELLER or any of its
affiliates.

 

2.8 The
Preferred Shares. The Preferred Shares upon issuance:

 

(i) are,
or will be, free and clear of any security interests, liens, claims or other encumbrances, subject to restrictions upon transfer
under the 1933 Act and any applicable state securities laws;

 

(ii) have
been, or will be, duly and validly authorized and on the date of issuance will be duly and validly issued, fully paid and nonassessable
(and if eventually registered pursuant to the Securities Act of 1933, as amended (the “1933 Act”), and resold pursuant
to an effective registration statement will be free trading and unrestricted, provided that each PURCHASER complies with the prospectus
delivery requirements of the 1933 Act and any state securities laws);

 

(iii) will
not have been issued or sold in violation of any preemptive or other similar rights of the holders of any securities of SELLER;
and

 

    	 	-4-	 

     

    

 

(iv) will
not subject the holders thereof to personal liability by reason of being such holders.

 

2.9 Litigation.
There is no pending or, to the knowledge of SELLER, threatened action, suit, proceeding inquiry, notice of violation, or investigation
before any court, governmental or administrative agency or regulatory body (federal, state, county, local or foreign), or arbitrator
having jurisdiction over SELLER, or any of its affiliates that would challenge the legality, validity or enforceability of this
Agreement and/or the Placement, or otherwise affect the execution by SELLER or the performance by SELLER of its obligations under
this Agreement, and all other agreements entered into by SELLER relating hereto. Except as disclosed herein or in the SELLER’s
required public filings with the Securities and Exchange Commission (“SEC”) (“SELLER’S SEC FILINGS”),
there is no pending or, to the knowledge of SELLER, threatened action, suit, proceeding or investigation before any court, governmental
agency or body, or arbitrator having jurisdiction over SELLER, or any of its affiliates which litigation if adversely determined
would have a Material Adverse Effect on SELLER.

 

2.10 Defaults;
Permits. SELLER is not in violation of its Certificate of Incorporation or By-Laws. SELLER is (i) not in default under or in
violation of any other material agreement or instrument to which it is a party or by which it or any of its properties are bound
or affected, which default or violation would have a Material Adverse Effect on SELLER, (ii) not in default with respect to any
order of any court, arbitrator or governmental body or subject to or party to any order of any court or governmental authority
arising out of any action, suit or proceeding under any statute or other law respecting antitrust, monopoly, restraint of trade,
unfair competition or similar matters, or (iii) to its knowledge in violation of any statute, rule or regulation of any governmental
authority which violation would have a Material Adverse Effect on SELLER. SELLER possesses all material certificates, authorizations
and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses
other than where the failure to possess such certificates, authorizations or permits, individually or in the aggregate, has not
had and would not reasonably be expected to have a Material Adverse Effect. SELLER has not received any notice or otherwise become
aware of any proceedings, inquiries or investigations relating to the revocation or modification of any such certificate, authorization
or permit.

 

2.11 No
General Solicitation. Neither SELLER, nor any of its affiliates, nor to SELLER’s knowledge, any person acting on its
or their behalf, has, directly or indirectly made any offers or sales of any security or solicited any offers to buy any security
that would cause the offer of the Preferred Shares pursuant to this Agreement to be integrated with prior offerings or private
placements by SELLER for purposes of the 1933 Act or any applicable stockholder approval provisions. Neither SELLER nor any of
its affiliates will take any action or steps that would cause the offer of the Preferred Shares to be integrated with other offerings
if such integration would eliminate the exemption relied on hereunder. Neither SELLER nor any of its affiliates, nor to SELLER’s
knowledge, any person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within
the meaning of Regulation D) in connection with the offer or sale of the Units.

 

    	 	-5-	 

     

    

 

2.12 Disclosure.
None of the representations and warranties of SELLER appearing in SELLER’S SEC FILINGS or in this Agreement contains, or
on June 30, 2017, the closing date of this Placement (the “Closing” or “Closing Date”) will contain any
untrue statement of a material fact or omits, or on the Closing will omit, to state any material fact required to be stated herein
or therein in order for the statements herein or therein, in light of the circumstances under which they were made, not to be misleading.

 

2.13 No
Undisclosed Liabilities or Events. SELLER has no liabilities or obligations which are material, individually or in the aggregate,
which are not disclosed herein or in SELLER’S SEC FILINGS, other than those incurred in the ordinary course of SELLER’s
businesses since inception. There has been no event or circumstance that has occurred or exists with respect to SELLER or its businesses,
properties, operations or financial condition, that, under applicable law, rule or regulation, requires disclosure but which has
not been so publicly announced or disclosed in SELLER’S SEC FILINGS.

 

2.14 Intellectual
Property. SELLER owns, free and clear of claims or rights of any other person, with full right to use, sell, license, sublicense,
dispose of, and bring actions for infringement of, or has acquired licenses or other rights to use, all intellectual property necessary
for the conduct of its business as presently conducted, other than with respect to “off-the-shelf” software which is
generally commercially available and open source software which may be subject to one or more “general public” licenses.
A complete list of patents, pending patent applications and all other intellectual property can be found in SELLER’S SEC
FILINGS and is available upon request from SELLER. The business of SELLER as presently conducted does not, to SELLER’s knowledge,
infringe or conflict with any patent, trademark, copyright, or trade secret rights of any third parties or any other intellectual
property of any third parties. SELLER has not received written notice from any third party asserting that any intellectual property
owned or licensed by SELLER, or which SELLER otherwise has the right to use, is invalid or unenforceable by SELLER and, to SELLER’s
knowledge, there is no valid basis for any such claim (whether or not pending or threatened). No claim is pending or, to SELLER’s
knowledge, threatened against SELLER nor has SELLER received any written notice or other written claim from any person asserting
that any of SELLER’s present or contemplated activities infringe or may infringe in any material respect any intellectual
property of such person, and SELLER is not aware of any infringement by any other Person of any material rights of SELLER under
any intellectual property rights. SELLER has taken all steps required in accordance with commercially reasonable business practice
to establish and preserve its respective ownership in its intellectual property and to keep confidential all material technical
information developed by or belonging to SELLER which has not been patented or copyrighted.

 

2.15 Investment
Company Status. SELLER is not, and immediately after receipt of the Final Closing will not be, an “investment company”
or an entity “controlled” by an “investment company” within the meaning of the Investment Company Act of
1940, as amended (the “Investment Company Act”), and SELLER shall conduct its business in a manner so that it will
not become subject to the Investment Company Act.

 

    	 	-6-	 

     

    

 

2.16 Taxes.
SELLER (i) has prepared in good faith and duly and timely filed all tax returns required to be filed by it or is on a current extension
and such returns are complete and accurate in all material respects and (ii) has paid all taxes required to have been paid by it,
except for taxes which it reasonably disputes in good faith or the failure of which to pay has not had or would not reasonably
be expected to have a Material Adverse Effect. SELLER has no any liability with respect to accrued taxes in excess of the amounts
that are described as accrued in the most recent financial statements included in SELLER’S SEC FILINGS.

 

2.17 Transactions
with Interested Persons. Except as described in the SELLER’S SEC FILINGS, no officer, director, employee or affiliate
of SELLER is or has taken any steps to become a party to any transaction with SELLER (other than for services as employees, officers
and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing
for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee
or, to the knowledge of SELLER, any entity in which any officer, director, or any such employee has a substantial interest or is
an officer, director, trustee or partner.

 

2.18 No
Other Agreements. SELLER has not, directly or indirectly, entered into any agreement with or granted any right to any PURCHASER
relating to the terms or conditions of the transactions contemplated by this Agreement or the other Offering Documents except as
expressly set forth therein.

 

2.19 Correctness
of Representations. SELLER represents that the foregoing representations and warranties are true and correct as of the date
hereof in all material respects. The foregoing representations and warranties shall survive until one year after the Closing Date.

 

2.20 Reissuance
of Securities. SELLER agrees to reissue certificates representing the Preferred Shares and underlying Common Stock without
the legends set forth above, (a) at such time as the holder thereof is permitted to dispose of the Common Stock without volume
or manner of sale restrictions pursuant to Rule 144 under the 1933 Act in the opinion of counsel reasonably satisfactory to SELLER,
or (b) upon resale subject to an effective registration statement concerning the resale of the shares of Common Stock underlying
the Preferred Shares is registered under the 1933 Act. SELLER agrees to cooperate with each PURCHASER in connection with all resales
pursuant to Rule 144 and to provide legal opinions at SELLER’s expense necessary to allow such resales provided SELLER and
its counsel receive reasonably requested written representations from each PURCHASER and its selling broker, if any.

 

2.21 Registration
Rights. Investors will have unlimited piggyback registration rights. Holders of a majority in interest of the shares of Series
B Preferred Stock (based on the $1.00 stated value) outstanding shall have the right to one demand registration during the three
(3) years following the effective date of SELLER’s registration statement under the Securities Exchange Act of 1934, as amended
(i.e., December 27, 2019), so long as at least $500,000 of Series B Preferred Stock has been sold in this Preferred Stock Private
Placement and $250,000 of Series B Preferred Stock is still outstanding. This demand registration right will terminate when all
shares of common stock underlying the Series B Preferred Stock are saleable under Rule 144 pursuant to the Securities Act without
regard to volume limitations, or when all shares of Series B Preferred Stock have been converted into common stock.

 

    	 	-7-	 

     

    

 

ARTICLE 3

REPRESENTATIONS AND COVENANTS OF PURCHASER

 

3.1. The
PURCHASER hereby represents and warrants that:

 

(a)       PURCHASER
acknowledges that it has been provided with, and has carefully read, the Certificate of Designation attached hereto as Exhibit
A, which describes all of the rights and other features of the Preferred Shares. Although I have been given access to SELLER’S
SEC FILINGS, I had a pre-existing relationship with the SELLER and did not learn of the SELLER through this filing with the SEC.
PURCHASER and its representatives have had the opportunity to meet with or talk with representatives of SELLER and have had the
opportunity to ask questions of, and receive answers from, representatives of SELLER concerning SELLER, and the terms and conditions
of this transaction, as well as to obtain any information requested by PURCHASER. PURCHASER believes that any questions raised
by PURCHASER or its representatives have been answered to the satisfaction of PURCHASER and its representatives. PURCHASER’s
decision to purchase the Preferred Shares is based, in part, on the answers to such questions as PURCHASER and its representatives
have raised concerning the transaction, and is based in part on its own evaluation of the risks and merits of the purchase and
SELLER’s proposed business activities.

 

3.2. PURCHASER
has been advised that the Preferred Shares have not been registered under the 1933 Act, or qualified under the securities law of
any state, on the ground, among others, that no distribution or public offering of the Preferred Shares is to be effected and the
Preferred Shares will be issued by SELLER in connection with a transaction that does not involve any public offering within the
meaning of section 4(a)(2) of the Act and/or Rule 506 of Regulation D as promulgated by the SEC under the 1933 Act, and under any
applicable state blue sky authority. PURCHASER understands that SELLER is relying in part on PURCHASER's representations as set
forth herein for purposes of claiming such exemptions and that the basis for such exemptions may not be present if, notwithstanding
PURCHASER's representations, PURCHASER has in mind merely acquiring Shares for resale on the occurrence or nonoccurrence of some
predetermined event. PURCHASER has no such intention.

 

3.3. PURCHASER
acknowledges that the securities underlying the Preferred Shares will be "restricted securities" (as such term is defined
in Rule 144 promulgated under the 1933 Act ("Rule 144")), that the securities underlying the Preferred Shares will include
the foregoing restrictive legend, and, except as otherwise set forth in this Agreement, that the securities underlying the Preferred
Shares cannot be sold for a period of one year, notwithstanding other restrictions that apply to the Preferred Shares as more fully
set forth in this Agreement, from the date of issuance unless registered with the SEC and qualified by appropriate state securities
regulators, or unless PURCHASER obtains written consent from the SELLER and otherwise complies with an exemption from such registration
and qualification (including, without limitation, compliance with Rule 144).

 

3.4. The
PURCHASER has the full right, power and authority to enter into this Agreement and to carry out and consummate the transaction
contemplated herein. This Agreement constitutes the legal, valid and binding obligation of PURCHASER.

 

    	 	-8-	 

     

    

 

3.5. The
PURCHASER acknowledges that investment in the Preferred Shares involves substantial risks and is suitable only for persons of adequate
financial means who can bear the economic risk of an investment in the Preferred Shares for an indefinite period of time. PURCHASER
further represents that he or she:

 

(1) has
adequate means of providing for his or her current needs and possible personal contingencies, has no need for liquidity in his
or her investment in the Preferred Shares, is able to bear the substantial economic risks of an investment in the Preferred Shares
for an indefinite period, and, at the present time, can afford a complete loss of his investment;

 

(2) does
not have an overall commitment to investments which are not readily marketable that is disproportionate to his or her net worth,
and that his or her investment in the Preferred Shares will not cause such overall commitment to become excessive;

 

(3) is
acquiring the Preferred Shares for his or her own account, for investment purposes only and not with a view toward resale, assignment
or distribution thereof, and no other person has a direct or indirect, beneficial interest, in whole or in part, in such Preferred
Shares;

 

(4) has
such knowledge and experience in financial, tax and business matters that he or she is capable of evaluating the merits and risks
of an investment in the Preferred Shares; and

 

(5) has
been given the opportunity to ask questions of and to receive answers from persons acting on the SELLER’S behalf concerning
the terms and conditions of this transaction and also has been given the opportunity to obtain any additional information which
the SELLER possesses or can acquire without unreasonable effort or expense. As a result, PURCHASER has available sufficient information
concerning the affairs of the SELLER and has been able to evaluate the merits and risks of the investment in the Preferred Shares.

 

ARTICLE 4

AMENDMENT AND WAIVER

 

4.1 Waiver
and Amendment. Any term, provision, covenant, representation, warranty or condition of this Agreement may be waived, but only
by a written instrument signed by the party entitled to the benefits thereof. The failure or delay of any party at any time or
times to require performance of any provision hereof or to exercise its rights with respect to any provision hereof shall in no
manner operate as a waiver of or affect such party's right at a later time to enforce the same. No waiver by any party of any condition,
or of the breach of any term, provision, covenant, representation or warranty contained in this Agreement, in any one or more instances,
shall be deemed to be or construed as a further or continuing waiver of any such condition or breach or waiver of any other condition
or of the breach of any other term, provision, covenant, representation or warranty. No modification or amendment of this Agreement
shall be valid and binding unless it be in writing and signed by all parties hereto.

 

    	 	-9-	 

     

    

 

ARTICLE 5

MISCELLANEOUS

 

5.1 Entire
Agreement. This Agreement sets forth the entire agreement and understanding of the parties hereto with respect to the transactions
contemplated hereby, and supersedes all prior agreements, arrangements and understandings related to the subject matter hereof.
No understanding, promise, inducement, statement of intention, representation, warranty, covenant or condition, written or oral,
express or implied, whether by statute or otherwise, has been made by any party hereto which is not embodied in this Agreement
or the written statements, certificates, or other documents delivered pursuant hereto or in connection with the transactions contemplated
hereby, and no party hereto shall be bound by or liable for any alleged understanding, promise, inducement, statement, representation,
warranty, covenant or condition not so set forth.

 

5.2 Notices.
All notices provided for in this Agreement shall be in writing signed by the party giving such notice, and delivered personally
or sent by overnight courier or sent by registered or certified mail (air mail if overseas), return receipt requested, electronic
mail or facsimile transmission. Notices shall be deemed to have been received on the date of personal delivery, electronic mail,
facsimile transmission, or if sent by overnight courier or messenger, shall be deemed to have been received on the next delivery
day after deposit with the courier, or if sent by certified or registered mail, return receipt requested, shall be deemed to have
been received on the third business day after the date of mailing. Notices shall be sent to the addresses set forth opposite to
each parties’ signature below.

 

5.3 Arbitration.
If a dispute or claim shall arise with respect to any of the terms or provisions of this Agreement, or with respect to the performance
by either of the parties under this Agreement, then either party may, by notice as herein provided, require that the dispute be
submitted under the Commercial Arbitration Rules of the American Arbitration Association to an arbitrator in good standing with
the American Arbitration Association within Thirty (30) days after such notice is given. The written decision of the single arbitrator
ultimately appointed by or for both parties shall be binding and conclusive on the parties. Judgment may be entered on such written
decision by the single arbitrator in any court having jurisdiction and the parties consent to the jurisdiction of the State of
California for this purpose. Any arbitration undertaken pursuant to the terms of this section shall occur in a venue determined
by the SELLER.

 

5.4Choice of Law and Venue.This
Agreement and the rights of the parties hereunder shall be governed by and construed in accordance with the laws of the State of
California including all matters of construction, validity, performance, and enforcement and without giving effect to the principles
of conflict of laws. Any action brought by any party hereto shall be brought in a venue determined by the SELLER.

 

5.5 Jurisdiction.
The parties submit to the jurisdiction of the Courts of the State of California, County of San Diego, or a Federal Court empaneled
in the State of California, Southern District, for the resolution of all legal disputes arising under the terms of this Agreement,
including, but not limited to, enforcement of any arbitration award.

 

    	 	-10-	 

     

    

 

5.6 Counterparts.
This Agreement may be executed electronically or via facsimile and in one or more counterparts, each of which shall be deemed an
original, but all of which shall together constitute one and the same instrument.

 

5.7 Attorneys'
Fees. Except as otherwise provided herein, if a dispute should arise between the parties including, but not limited to arbitration,
the prevailing party shall be reimbursed by the non-prevailing party for all reasonable expenses incurred in resolving such dispute,
including reasonable attorneys' fees exclusive of such amount of attorneys' fees as shall be a premium for result or for risk of
loss under a contingency fee arrangement.

 

5.8 Taxes.
Any income taxes required to be paid in connection with the Closing hereunder, shall be borne by the party required to make such
payment.

  

 

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    	 	-11-	 

     

    

 

 

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

 

	PURCHASER	
        SELLER

         

	 	
        Guardion Health Sciences, Inc.

         

	Signature: ________________________	Signature: ________________________
	Print Name: 	
        Michael Favish

         

	Social Security/Tax ID #: 	Chief Executive Officer
	Date: 	Date:  
	Address for notices:	Address for notices:
	 	
        15150 Avenue of Science, Suite 200

        San Diego, CA 92128

	Phone:  	Phone:  858-605-9055
	Fax:      	Fax:      858-630-5543
	Email:  	 

  

    	 	-12-

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