Document:

FS Credit Real Estate Income Trust, Inc. 8-K

 

Exhibit 10.1

 

 

AMENDMENT NO. 5 TO MASTER REPURCHASE
AND SECURITIES CONTRACT

AMENDMENT NO. 5
TO MASTER REPURCHASE AND SECURITIES CONTRACT, dated as of August 29, 2019 (this “Amendment”), between and among
FS CREIT FINANCE WF-1 LLC, a Delaware limited liability company (“Seller”), FS CREDIT REAL ESTATE
INCOME TRUST, INC., a Maryland corporation (“Guarantor”) and WELLS FARGO BANK, NATIONAL ASSOCIATION,
a national banking association (“Buyer”). Capitalized terms used but not otherwise defined herein shall have
the meanings given to them in the Repurchase Agreement (as defined below).

RECITALS

WHEREAS, Seller and
Buyer are parties to that certain Master Repurchase and Securities Contract, dated as of August 30, 2017 (as amended by (i) Amendment
No. 1 to Master Repurchase and Securities Contract, dated as of April 26, 2018, between and among Seller, Buyer and Guarantor,
(ii) Amendment No. 2 to Master Repurchase and Securities Contract, dated as of July 24, 2018, between and among Seller,
Buyer and Guarantor, (ii) Amendment No. 3 to Master Repurchase and Securities Contract, dated as of November 30, 2018,
between and among Seller, Buyer and Guarantor, (iv) Amendment No. 4 to Master Repurchase and Securities Contract, dated as
of August 1, 2019, between and among Seller, Buyer and Guarantor, and (v) this Amendment, and as further amended, restated, supplemented
or otherwise modified and in effect from time to time, the “Repurchase Agreement”);

WHEREAS, in connection
with the Repurchase Agreement, Guarantor executed and delivered to Buyer that certain Guarantee Agreement, dated as of August 30,
2017 (as amended pursuant to the terms of Amendment No. 1 to Guarantee Agreement, dated as of April 26, 2018, by and between
Guarantor and Buyer (the “Guarantee Amendment”) and as further amended, restated, supplemented or otherwise
modified and in effect from time to time, the “Guarantee Agreement”); and

WHEREAS, Seller and
Buyer have agreed to further amend certain provisions of the Repurchase Agreement in the manner set forth herein, and Guarantor
hereby agrees to make the acknowledgements set forth herein.

Therefore, in consideration
of the premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller,
Buyer and Guarantor hereby agree as follows:

SECTION 1.

Repurchase Agreement
Amendments.

(a)       

The defined terms
“Fee Letter”, “Initial Funding Expiration Date”, “Initial Maturity Date”
and “Senior Interest”, each as set forth in Section 2.01 of the Repurchase Agreement, are each hereby
amended and restated in their entirety to read as follows:

“Fee
Letter”: The Second Amended and Restated Fee and Pricing Letter, dated as of August 29, 2019, between Buyer and Seller,
as amended, modified, waived, supplemented, extended, restated or replaced from time to time.

“Initial
Funding Expiration Date”: August 30, 2020.

“Initial
Maturity Date”: August 30, 2020.

    			 

    	

    

“Senior
Interest”: (a) A senior or a controlling pari passu participation interest in a Whole Loan or a Non-Controlling
Participation (i) that is evidenced by a Senior Interest Note, (ii) that represents an undivided participation interest in part
of the underlying Whole Loan and its proceeds, (iii) that represents a pass through of a portion of the payments made on the underlying
Whole Loan which lasts for the same length of time as such Whole Loan, (iv) as to which there is no guaranty of payments to the
holder of the Senior Interest Note or other form of credit support for such payments, and (v) as to which, except with respect
to Non-Controlling Participations, the holder thereof maintains full control over all decisions with respect to the related
Whole Loan (other than decision rights customarily granted to holders of junior interests), or (b) an “A note”
in an “A/B structure” in a Whole Loan, in each case for which the Mortgaged Property has fully stabilized, as determined
by Buyer.

(b)       

Article 2
of the Repurchase Agreement is hereby amended by inserting the following new defined terms in correct alphabetical order:

“Delaware
LLC Act”: means Chapter 18 of the Delaware Limited Liability Company Act, 6 Del. C. §§ 18-101 et seq., as amended.

“Dividing
LLC”: means a Delaware limited liability company that is effecting a Division pursuant to and in accordance with Section
18-217 of the Delaware LLC Act.

“Division”:
means the division of a Dividing LLC into two or more domestic limited liability companies pursuant to and in accordance with Section
18-217 of the Delaware LLC Act.

“Division
LLC”: means a surviving company, if any, and each resulting company, in each case that is the result of a Division.

“Non-Controlling
Participation”: The meaning set forth in the Fee Letter, which definition is incorporated by reference herein.

(c)       

Section 3.02
of the Repurchase Agreement is hereby amended by inserting the following additional sentence at the end thereof:

To the extent
any additional limited liability company is formed by a Division of Seller (and without prejudice to Sections 8.01, 8.03
and 9.01 hereof), Seller shall cause each such Division LLC to sell, transfer, convey and assign to Buyer on a servicing
released basis and for no additional consideration all of each such Division LLC’s right, title and interest in and to each
Purchased Asset, together with all related Servicing Rights in the same manner and to the same extent as the sale, transfer, conveyance
and assignment by Seller on each related Purchase Date of all of Seller’s right, title and interest in and to each Purchased
Asset, together with all related Servicing Rights.

(d)       

Clause (d) of the
proviso to the first sentence of the first paragraph of Section 3.04 of the Repurchase Agreement is hereby amended to change
the phrase “in accordance with Section 3.08” to “in accordance with Section 3.07”.

(e)       

The second paragraph
of Section 3.04 of the Repurchase Agreement is hereby amended and restated in its entirety to read as follows

In addition to
other rights and remedies of Buyer under any Repurchase Document, Seller shall, in accordance with the procedures set forth in
Section 3.05, within two (2) Business Days, repurchase any Purchased Asset (A) that no longer qualifies as an Eligible Asset,
as determined by Buyer, or (B) with respect to which, in the case of any Non-Controlling Participation, any material consent, waiver,
forbearance, modification, supplement or amendment has been made to the related Whole Loan.

    		-1-	 

    	

    

(f)       

The first sentence
of Section 8.03 of the Repurchase Agreement is hereby amended and restated in its entirety to read as follows

Seller shall
not enter into any merger or consolidation or adopt, file, or effect a Division, or liquidate, wind up or dissolve, or sell all
or substantially all of its assets or properties, or permit any changes in the ownership of the Equity Interests of Seller, without
the consent of Buyer.

(g)       

The third sentence
of Section 8.04 of the Repurchase Agreement is hereby amended and restated in its entirety to read as follows:

Notwithstanding
the foregoing, (i) if Seller grants a Lien on any Purchased Asset in violation of this Section 8.04 or any other Repurchase
Document, Seller shall be deemed to have simultaneously granted an equal and ratable Lien on such Purchased Asset in favor of Buyer
to the extent such Lien has not already been granted to Buyer; provided, that such equal and ratable Lien shall not cure any resulting
Event of Default, and (ii) to the extent any additional limited liability company is formed by a Division of Seller (and without
prejudice to Sections 8.01, 8.03 and 9.01 hereof), Seller shall cause any such Division LLC to assign, pledge
and grant to Buyer, for no additional consideration, all of its assets, and shall cause any owner of each such Division LLC to
pledge all of the Equity Interests and any rights in connection therewith of each such Division LLC to Buyer, for no additional
consideration, in support of all Repurchase Obligations in the same manner and to the same extent as the assignment, pledge and
grant by Seller of all of Seller’s assets hereunder, and in the same manner and to the same extent as the pledge by Pledgor
of all of Pledgor’s right, title and interest in all of the Equity Interests of Seller and any rights in connection therewith,
in each case pursuant to the Pledge Agreement.

(h)       

Clause (l) of Section
9.01 of the Repurchase Agreement is hereby amended by inserting the following text “nor shall Seller adopt, file, or
effect a Division” at the end thereof immediately preceding the semicolon.

(i)       

Section 10.01
of the Repurchase Agreement is hereby amended by (I) deleting “and” and the end of clause (r) thereof, (II) deleting
the period at the end of clause (s) thereof and inserting the text “; and” in lieu thereof and (III) inserting the
following new clause (t) at the end thereof:

(t)       

Seller adopts, files,
or effects a Division.

SECTION 2.

Conditions Precedent.
This Amendment and its provisions shall become effective on the first date (the “Amendment Effective Date”)
on which (a) this Amendment is executed and delivered by a duly authorized officer of each of Seller, Buyer and Guarantor,
along with such other documents as Buyer or counsel to Buyer may reasonably request, (b) Seller has paid to Buyer an extension
fee in an amount equal to $187,500, and (c) Seller and Guarantor shall deliver to Buyer opinions of counsel to Seller, in
favor of Buyer, in form and substance acceptable to Buyer and its counsel, with respect to the enforceability of this Amendment
and the Second Amended and Restated Fee and Pricing Letter by and between Seller and Buyer dated of even date herewith, together
with a currently-dated version (or a bring-down thereof) of the bankruptcy safe harbor opinion that was delivered to Buyer by counsel
to Seller on the Closing Date.

SECTION 3.

Representations,
Warranties and Covenants. Each of Seller and Guarantor hereby represents and warrants to Buyer, as of the date hereof and as
of the Amendment Effective Date, that (i) it is in full compliance with all of the terms and provisions set forth in each
Repurchase Document to which it is a party on its part to be observed or performed, and (ii) no Default or Event of Default
has occurred or is continuing. Each of Seller and Guarantor hereby confirms and reaffirms its representations, warranties and covenants
contained in each Repurchase Document to which it is a party.

    		-2-	 

    	

    

SECTION 4.

Acknowledgements
of Seller. Seller hereby acknowledges that (a) Buyer is in compliance with its undertakings and obligations under the Repurchase
Agreement and the other Repurchase Documents, and (b) Seller has no defenses, counterclaims or set-offs with respect to any of
its obligations under any of the Repurchase Documents.

SECTION 5.

Acknowledgments
of Guarantor. Guarantor hereby acknowledges (a) the execution and delivery of this Amendment and agrees that it continues to
be bound by the Guarantee Agreement to the extent of the Guaranteed Obligations (as defined therein), and (b) that Buyer is in
compliance with its undertakings and obligations under the Repurchase Agreement, the Guarantee Agreement and each of the other
Repurchase Documents.

SECTION 6.

Limited Effect.
Except as expressly amended and modified by this Amendment, the Repurchase Agreement and each of the other Repurchase Documents
shall continue to be, and shall remain, in full force and effect in accordance with their respective terms; provided, however,
that upon the Amendment Effective Date, each (x) reference therein and herein to the “Repurchase Documents” shall
be deemed to include, in any event, this Amendment, (y) each reference to the “Repurchase Agreement” in any of
the Repurchase Documents shall be deemed to be a reference to the Repurchase Agreement, as amended hereby, and (z) each reference
in the Repurchase Agreement to “this Agreement”, this “Repurchase Agreement”, “hereof”, “herein”
or words of similar effect in referring to the Repurchase Agreement shall be deemed to be references to the Repurchase Agreement,
as amended by this Amendment.

SECTION 7.

No Novation, Effect
of Agreement.  The parties hereto have entered into this Amendment solely to amend the terms of the Repurchase Agreement
and do not intend this Amendment or the transactions contemplated hereby to be, and this Amendment and the transactions contemplated
hereby shall not be construed to be, a novation of any of the obligations owning by Seller, Guarantor or any of their respective
Affiliates (the “Repurchase Parties”) under or in connection with the Repurchase Agreement or any of the other
Repurchase Documents.  It is the intention of each of the parties hereto that (i) the perfection and priority of all
security interests securing the payment of the Repurchase Obligations of the Repurchase Parties under the Repurchase Agreement
are preserved, (ii) the liens and security interests granted under the Repurchase Agreement continue in full force and effect,
and (iii) any reference to the Repurchase Agreement in any such Repurchase Document shall be deemed to also reference this Amendment.

SECTION 8.

Counterparts.
This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an
original and all of which taken together shall constitute one and the same instrument. Delivery of an executed counterpart of a
signature page to this Amendment in Portable Document Format (PDF) or by facsimile transmission shall be effective as delivery
of a manually executed original counterpart thereof.

SECTION 9.

Expenses.
Seller and Guarantor agree to pay and reimburse Buyer for all out-of-pocket costs and expenses incurred by Buyer in connection
with the preparation, execution and delivery of this Amendment, including, without limitation, the fees and disbursements of Cadwalader,
Wickersham & Taft LLP, counsel to Buyer.

SECTION 10.

GOVERNING LAW.
THIS AMENDMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO OR IN CONNECTION WITH THIS AMENDMENT, THE RELATIONSHIP
OF THE PARTIES, AND/OR THE INTERPRETATION AND ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES WILL BE GOVERNED BY THE LAWS
OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CONFLICTS OF LAW PRINCIPLES OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE
NEW YORK GENERAL OBLIGATIONS LAW.

[SIGNATURES FOLLOW]

    		-3-	 

    	

    

IN WITNESS WHEREOF, the parties
hereto have caused this Amendment to be duly executed and delivered as of the day and year first above written.

 

 

	 	SELLER:
	 	 
	 	 
	 	FS CREIT FINANCE WF-1, LLC, a Delaware limited liability company
	 	 
	 	 
	 	By:	/s/ Edward T. Gallivan, Jr.
	 	 	Name:  Edward T. Gallivan, Jr.
	 	 	Title:  Chief Financial Officer
	 	 
	 	 
	 	GUARANTOR:
	 	 
	 	 
	 	FS CREDIT REAL ESTATE INCOME TRUST INC., a Maryland corporation
	 	 
	 	 
	 	By:	/s/ Edward T. Gallivan, Jr.
	 	 	Name:  Edward T. Gallivan, Jr.
	 	 	Title:  Chief Financial Officer

 

    	 

    	 

    

 

	 	BUYER:
	 	 
	 	 
	 	WELLS
    FARGO BANK, NATIONAL ASSOCIATION, a national banking association
	 	 
	 	 
	 	By:	/s/ Michael P. Duncan
	 	 	Name: Michael P. Duncan
	 	 	Title: DirectorExhibit
10.1 Employment Agreement dated August 23, 2019 between the Company and Dr. Vuong Trieu

 

EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (“Agreement”) is entered into as of August 23, 2019, between Mateon Therapeutics, Inc., a Delaware
corporation (“Mateon” or the “Company”), and Vuong Trieu, Ph.D. (“Executive”).

 

W
I T N E S S E T H:

 

WHEREAS,
Mateon and Executive desire to enter into an employment agreement relating to the position of Mateon’s Chief Executive Officer & President (“CEO”), pursuant to which position Executive shall report to the Board of Directors of Mateon (“Board”).
The Executive’s initial responsibilities include providing leadership and direction for Mateon and Oncotelic’s operations,
working on financing for the Company, any strategic transactions and any other responsibilities that Mateon and CEO mutually agree
to.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, Mateon
and Executive hereby agree as follows:

 

1.
Employment

 

1.1
Executive shall serve in the capacity of CEO, and shall have the duties, responsibilities and authority assigned to Executive
by the Board consistent with such position. Executive shall report directly to Mateon’s Board.

 

1.2
Executive, so long as he is employed hereunder, (i) shall devote his full professional time and attention to the services required
of him as an employee of Mateon, except as otherwise agreed and except as permitted in accordance with paid vacation time subject
to Mateon’s existing vacation policy, and subject to Mateon’s existing policies pertaining to reasonable periods of
absence due to sickness, personal injury or other disability, (ii) shall use his best efforts to promote the interests of Mateon,
and (iii) shall discharge his responsibilities in a diligent and faithful manner, consistent with sound business practices.

 

2.
Term

 

The
term of Executive’s employment under this Agreement shall commence as of August 1st, 2019 and shall continue
until terminated by either party in accordance with Section 6 hereof (the “Employment Term”).

 

3.
Base Salary; Stock Options

 

3.1
During the Employment Term, Executive shall receive an annual base salary in the amount of $450,000 (such amount as adjusted,
from time to time, the “Base Salary”), payable in accordance with Mateon’s payroll schedule from time to time
in effect. Executive’s salary shall be reviewed annually by the Board. Executive shall be paid only 50% of the Base Salary
with the Company’s normal payroll policies until the occurrence of a Financing Event. For purposes of this Amendment to
this Agreement, the term “Financing Event” means: (a) the closing of an equity or debt financing with gross proceeds
equal to or greater than $4,000,000, (b) the execution of a licensing or collaboration agreement with an up-front payment equal
to or greater than $4,000,000, or (c) any combination of (a) and (b) whereby the gross proceeds are equal to or greater than $4,000,000.
Immediately upon the closing of a Financing Event, provided Executive remains employed with the Company as of the date of the
closing of the Financing Event, Executive’s salary shall be increased to 100% of Base Salary. The Compensation Committee
of the Board (“Compensation Committee”) will consider whether any additional compensation shall be paid to Executive
related to the period of Reduced Salary. Executive understands and agrees that Executive has already been paid all wages due and
owing as of the date of this Agreement.

 

3.2
Mateon shall grant to Executive, subject to approval by the either the Board or the Compensation Committee of the Board, pursuant
to the Mateon Inc.’s 2015 and/or 2017 Equity Incentive Plans (the “Stock Plan”), 209,302 restricted shares of
common stock of Mateon, $.01 par value per share. The Company will compensate the Executive for the taxes incurred on the restricted
shares upon receipt of documentation as to the amount of taxes incurred. Such grant shall be made at a price equal to the Fair
Market Value (as defined in the Stock Plan) on the date of the grant, and shall fully vest at the one year anniversary of employment.
Thereafter, Executive will be a participant of the Stock Plan, and will be eligible to receive an annual grant of restricted stock
as approved by the Board or Compensation Committee and which shall contain the customary terms and provisions of such grants generally
to key executives under the Stock Plan.

 

    	 	-1-	 

    	 

    

 

3.3
Mateon shall grant to Executive, subject to approval by the Board or the Compensation Committee, pursuant to the Stock Plan, an
incentive stock option to purchase 313,953 shares of Mateon common stock, $.01 par value per share. Such option shall have an
exercise price equal to the Fair Market Value (as defined in the Stock Plan) on the date of grant of such option, and shall vest
and become exercisable after one year of employment. Thereafter, Executive will be a participant of the Stock Plan, and will be
eligible to receive an annual grant of an equivalent number of options, which shall contain the customary terms and provisions
of options granted generally to key executives under the Stock Plan.

 

3.4
Executive shall be entitled to a 50% Annual Bonus based upon roles and objectives predetermined by, and at the discretion of,
the Board or Compensation Committee.

 

3.5.
These restricted shares of common stock of Mateon granted under Section 3.2 and the incentive stock option granted under Section
3.3 are not in place of, but rather are in addition to the shares of Mateon stock already owned by the Executive. The vesting
of the restricted shares of common stock of Mateon under Section 3.2 and the incentive stock option under Section 3.3 will accelerate
and be fully vested upon a Change of Control (as defined in the Stock Plan).

 

4.
Benefits

 

Executive
shall be entitled to participate in or receive benefits under any employee benefit plan, arrangement or perquisite generally made
available by Mateon during the Employment Term to its executives and key management employees. These benefits shall consist of
a minimum paid family health insurance, including dental and vision insurance and any other benefits granted by Mateon and four
(4) weeks of Personal Time Off (“PTO”) per year, subject to a maximum accrual of eight (8) weeks.

 

5.
Business Expenses

 

Executive
shall be entitled to receive prompt reimbursement for all reasonable and customary expenses incurred by him in performing services
hereunder during the Employment term; provided that such expenses are incurred and accounted for in accordance with the policies
and procedures established by Mateon.

 

6.
Termination

 

6.1
Mateon may terminate Executive’s employment by giving Executive thirty (30) days’ written notice, subject to all provisions
of this Agreement. Notwithstanding the foregoing, Mateon may terminate Executive’s employment for Cause (as defined in section
6.7 thereof) without prior notice.

 

6.2
(a) Executive may voluntarily resign from employment with the Company upon written notice to the Company specifying the effective
date of such resignation, which effective date shall not be less than thirty (30) days from the date of such notice. Upon effective
date of Executive’s resignation, the Company shall have no further obligations to perform duties as specified in Section
1 of this Agreement.

 

(b)
If Executive terminates his employment following material breach of the Agreement by Mateon, which breach remains uncured thirty
(30) days after written notice thereof is received by Mateon (a “Termination with Good Reason”), Executive shall be
treated as if his employment was terminated by Mateon other than for Cause.

 

6.3
If Mateon terminates Executive for Cause or the Executive resigns his employment other than in a Termination with Good Reason,
Executive shall be entitled to receive in a lump sum payment as soon as practicable after the Termination Date an amount equal
to all accrued and unpaid Base Salary (the “Unpaid Salary”), a lump sum payment for all accrued and unused PTO (the
“Unpaid PTO”), and reimbursement of any unreimbursed business expenses in accordance with the Company’s reimbursement
policies.

 

    	 	-2-	 

    	 

    

 

6.4
If Executive’s employment is terminated by Mateon other than for Cause (as defined below) or in the event of a Termination
with Good Reason, then Mateon shall provide to Executive as soon as practicable after the date of notice of Executive’s
termination of employment:

 

	 	(a)	The
    Unpaid Salary and Unpaid PTO, as soon as practicable after the Termination Date; plus
	 	(b)	a
    lump sum cash payment equal to eighteen (18) months of Executive’s then-current Base Salary; and 
	 	(c)	All
    stock options, stock appreciation rights, restricted stock, and other incentive compensation granted to the Executive by Mateon
    shall, to the extent vested, remain exercisable in accordance with the terms of the Stock Plan (or prior applicable plan)
    and the agreement entered pursuant thereto, and the Executive may exercise all such vested options and rights, and shall receive
    payments and distributions accordingly. 
	 	(d)	All
    insurance benefits or COBRA coverage, fully paid by Mateon, for a period of eighteen (18) months following the Executive’s
    termination of employment.

 

6.5
If, following any Change in Control (as such term will be defined in the Stock Plan) and prior to expiration of one (1) year from
the date of such Change in Control, (1) Executive’s employment is terminated by Mateon (other than for Cause) or (2) in
the event of a Termination with Good Reason, then

 

	 	(a)	Mateon
    shall provide to the Executive: 

 

	 	a.	The
    Unpaid Salary and accrued unpaid PTO, as soon as practicable after the Termination Date; plus 
	 	 	 
	 	b.	An
    amount equal to eighteen (18) months of Executive’s then current Base Salary; and 

 

	 	(b)	all
    stock options, stock appreciation rights, restricted stock, and other incentive compensation granted to the Executive by Mateon
    shall, to the extent vested, remain exercisable in accordance with the terms of the stock Plan (or prior applicable plan)
    and the agreement entered pursuant thereto, and the Executive may exercise all such vested options and rights, and shall receive
    payments and distributions accordingly. The absence of a stock plan will not be a reason not to allow Executive to exercise
    all such vested options and rights, and shall receive payments and distributions. 
	 	(c)	All
                                         insurance benefits or COBRA coverage, fully paid by Mateon, for a period of eighteen
                                         (18) months following the Executive’s termination of employment.

         

 

6.6
The foregoing payments upon Executive’s termination shall constitute the exclusive payments due Executive upon termination
from his employment with Mateon under this Agreement or otherwise, provided, however that except as stated above, such payments
shall have no effect on any benefits which may be payable to Executive under any plan of Mateon which provides benefits after
termination of employment.

 

6.7
For the purposes of this Agreement, the term “Cause” shall mean any of the following:

 

	 	(a)	the
    (i) continued failure by Executive to perform his duties on behalf of Mateon’s if Executive fails to remedy that breach
    within ten (10) days of Mateon’s written notice to Executive of such breach; or (ii) material breach of any other provision
    of this Agreement by the executive, if the Executive fails to remedy that breach within ten (10) days of Mateon’s written
    notice to Executive of such breach; or
	 	(b)	any
    act of fraud, material misrepresentation or material omission, misappropriation, dishonesty, embezzlement or similar conduct
    against Mateon or any affiliate, or conviction of Executive for a felony or any crime involving moral turpitude.

 

    	 	-3-	 

    	 

    

 

7.
No Solicitation; Confidentiality; Work for Hire

 

7.1
For a period of eighteen (18) months after the Termination Date, neither the Executive nor any Executive-Controlled Person (as
defined below) will, without the prior written consent of the Board, directly or indirectly solicit for employment, or make an
unsolicited recommendation to any other person that it employ or solicit for employment any person who is or was, at any time
during the nine (9) month period prior to the Termination date, an officer, executive or key employee of Mateon or any affiliate
of Mateon. As used in this Agreement, the term “Executive-Controlled Person” shall mean any company, partnership,
firm or other entity as to which Executive possesses, directly or indirectly, the power to direct or cause the direction of the
management and policies of such entity, whether through the ownership of voting securities, by contract or otherwise.

 

7.2
(a) Executive acknowledges that, through his status as CEO of Mateon, he has, and will have, possession of important, confidential
information and knowledge as to the business of Mateon and its affiliates, including, but not limited to, information and knowledge
as to the business of Mateon and its affiliates, including, but not limited to, information related to drugs and compounds developed
or under development by the Company, financial results and projections, future plans, the provisions of other important contracts
entered into by Mateon and its affiliates, possible acquisitions and similar information proprietary to Mateon and its affiliates
(collectively, “Confidential Information”). Executive agrees that he shall not, so long as the Company remains in
existence, divulge, communicate, furnish or make accessible (whether orally or in writing or in books, articles or any other medium)
to any individual, firm, partnership or corporation, any knowledge or information with respect to Confidential Information directly
or indirectly useful in any aspect of the business of Mateon or any of its affiliates. As used in the preceding sentence, “Confidential
Information” shall not include any knowledge of information that: (i) is or becomes available to others, other than as a
result of breach by Executive of this Section 7.2; (ii) was available to Executive on a nonconfidential basis prior to its disclosure
to executive through his status as an officer or employee of Mateon or any affiliate; (iii) becomes available to Executive on
a nonconfidential basis from a third party (other than Mateon, any affiliate or any of its of their representatives) who is not
bound by any confidentiality obligation to Mateon or any affiliate; (iv) was known by the Executive prior to his employment by
Mateon as evidenced by Executive’s pre-existing written records; (v) was not maintained as confidential information by Mateon;
(vi) is otherwise information known or available within Mateon’s industry; or (vii) is information that is legally compelled,
by applicable law, to be disclosed by Executive, provided, however, that in such an event Executive shall give prompt notice to
Mateon of such requirement so that Mateon may seek a protective order or other appropriate remedy.

 

(b)
All memoranda, notes, lists, records and other documents or papers (and all copies thereof), including such items stored in computer
memories, on microfiche or by any other means, made or complied by or on behalf of Executive or made available to him relating
to the business of Mateon or any of its affiliates are and shall be and remain Mateon’s property and shall be delivered
to Mateon promptly upon the termination of Executive’s employment with Mateon or at any other time on request and such information
shall be held confidential by Executive after the termination of his employment with Mateon.

 

7.3
Executive grants the Company and each affiliate of the Company, as appropriate, all rights in and to the contribution made by
Executive to any projects or matters on which Executive worked during the Employment Term. Executive acknowledges that each such
matter and the contribution made by Executive thereto shall constitute a work made for hire within the meaning of the United States
copyright law and other applicable laws. The Company reserves all rights with respect to information relating to the Company’s
products, including, but not limited to, the right to apply for patents.

 

7.4
The provisions contained in this Section 7 as to the time periods, scope of activities, persons or entities affected, and territories
restricted shall be deemed divisible so that, if any provision contained in this Section 7 is determined to be invalid or unenforceable,
such provisions shall be deemed modified so as to be valid and enforceable to the full extent lawfully permitted.

 

7.5
Executive agrees that the provisions of this Section 8 are reasonable and necessary for the protection of Mateon and that they
may not be adequately enforced by an action for damages and that, in the event of a breach thereof by Executive or any Executive-Controlled
Person, Mateon shall be entitled to apply for and obtain injunctive relief in any court of competent jurisdiction to restrain
the breach or threatened breach of such violation or otherwise to enforce specifically such provisions against such violation,
without the necessity of the posting of any bond by Mateon. Executive further covenants under this Section 8, Mateon shall be
entitled to an accounting and repayment of all profits, compensation, commissions, remuneration or other benefits that Executive
directly or indirectly has realized and/or may realize as a result of, growing out of or in connection with any such violation.
Such a remedy shall, however, be cumulative and not exclusive and shall be in addition to any injunctive relief or other legal
equitable remedy to which Mateon is or may be entitled.

 

    	 	-4-	 

    	 

    

 

8.
Taxes

 

Any
amounts payable to the Executive hereunder shall be paid to the Executive subject to all applicable taxes required to be withheld
by Mateon pursuant to federal, state or local law. Except as provided herein, Executive shall be solely responsible for all taxes
imposed on the Executive by reason of his receipt of any amounts of compensation or benefits payable hereunder.

 

9.
Indemnification

 

Mateon
has entered into a separate Indemnification Agreement with Executive which shall survive the execution and delivery of this Agreement
and remain in full force and effect.

 

10.
Attorney’s Fees and Expenses

 

Mateon
and the Executive agree that in the event of litigation arising out of or relating to this Agreement, the prevailing party shall
be entitled to reimbursement from the other party to the prevailing party’s reasonable attorney fees and expenses.

 

11.
Amendments

 

This
Agreement may not be altered, modified or amended except by a written instrument signed by each of the parties hereto.

 

12.
Assignments

 

Neither
this Agreement not any of the rights or obligations hereunder shall be assigned or delegated by any party hereto without the prior
written consent of the other party; provided, however, that any payments and benefits owed to Executive under this Agreement shall
insure to the benefit of his heirs and personal representatives.

 

13.
Waiver

 

Waiver
by any party hereto of any breach or default by any other party of any of the terms of this Agreement shall not operate as a waiver
of any other breach or default, whether similar to or different from the breach or default waived.

 

14.
Severability

 

In
the event that any one or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby.

 

15.
Notices

 

All
notices and other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given
when personally delivered or when mailed by registered mail, return receipt requested, postage prepaid, addressed as follows:

 

If
to Executive, as follows:

 

	 	Name:
    	Vuong
    Trieu, Ph. D.
	 	Address:
    	[***]
	 	 	[***],
    CA

 

If
to Mateon, as follows:

 

	 	Name:	Board
    of Directors
	 	Address:
    	Mateon
    Therapeutics, Inc.
	 	 	29397
    Agoura Road, Suite 107
	 	 	Agoura
    Hills, CA 91301

 

    	 	-5-	 

    	 

    

 

Or
to such other address or such other person as Executive or Mateon shall designate in writing in accordance with this Section 15,
except that notices regarding changes in notices shall be effective only upon receipt.

 

16.
Headings

 

Headings
to Sections in this Agreement are for the convenience of the parties only and are not intended to be a part of, or to affect the
meaning or interpretation of, this Agreement.

 

17.
Governing Law

 

This
Agreement shall be governed by the laws of the California without reference to the principles of conflict of laws. Each of the
parties hereto consents to the jurisdiction of the federal and state courts of the California in connection with any claim or
controversy arising out of or connected with this Agreement, and said courts shall be the exclusive forum for the resolution of
any such claim or controversy. Service of process in any such proceeding may be made upon each of the parties hereto at the address
of such party as determined in accordance with Section 15 of this Agreement, subject to the applicable rules of the court in which
such action is brought.

 

18.
Entire Agreement

 

This
Agreement contains the entire agreement between Executive and Mateon with respect to all matters relating to Executive’s
employment with Mateon and, as of the date hereof, will supersede and replace any other agreements, written or oral, between the
parties relating to the terms or conditions of Executive’s employment with Mateon, provided, however, that nothing in this
Agreement shall amend or affect any shares of capital stock or stock options previously granted to Executive.

 

IN
WITNESS WHEREOF, Mateon and Executive have caused this Agreement to be executed as of the date first above written.

 

	 	 	/s/
    Vuong     Trieu
	 	Name:
    	Vuong
    Trieu, Ph. D
	 	 	 
	 	MATEON
    THERAPEUTICS, INC.
	 	 	 
	 	 	/s/
    William Schwieterman
	 	Name:	William
    Schwieterman 
	 	Title:	Member
    of the Board of Directors

 

    	 	-6-

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