Document:

EX-10.6

 Exhibit 10.6 

May 2, 2016 
 Scott K. Murcray, CPA 

Dear Scott: 
 I am pleased to offer you a
position with AirXpanders, Inc. (the “Company”), as our Chief Financial Officer and Chief Operating Officer (CFO/COO), reporting to me, the President and CEO. As a CFO/COO, you will be expected to perform the duties typical for such
a position, as assigned by your supervisor. In addition, you will devote your full energies, abilities and productive business time to the performance of your job for the Company and will not engage in any activity that would in any way interfere or
conflict with the full performance of any of your duties for the Company. 
 Salary and Benefits. 

If you decide to join us, you will receive a salary paid at the annual rate of $265,000, less payroll deductions and withholdings, which will
be paid semi-monthly in accordance with the Company’s normal payroll procedures. Your salary will be reviewed annually in accordance with the Company’s normal review process. 

In addition, in the event that the Company adopts and implements a written executive cash bonus plan, you will be eligible to participate in
such plan, subject to the terms and conditions of such plan and any written notice to you. 
 As an employee, you will be eligible to
receive health care benefits (100% employee/ 50% dependents) for medical, dental and vision. Other Company benefits include Life Insurance and a 401k plan for employee-based contributions. You will be entitled to accrue Personal Time Off (PTO) at
the rate of fifteen (20) days per year (1.66 days per month), in accordance with the Company’s PTO policy. You should note that the Company may modify job titles, salaries and benefits from time to time as it deems necessary. 

Equity Compensation. 
 In
addition, if you decide to join the Company, the Company will recommend to its Board of Directors (the “Board”) to grant you an option to purchase 240,000 shares of the Company’s Common Stock at a price per share equal to the
fair market value per share of the Common Stock on the date of grant, as determined by the Board. If granted, 25% of the shares subject to the option shall vest twelve (12) months after the vesting commencement date, subject to your continuing
employment with the Company. No shares shall vest before the vesting commencement date. The remaining shares shall vest monthly thereafter over the next 36 months in equal monthly amounts subject to your continuing employment with the Company on
each such vesting date. This option grant, including its vesting requirements, shall be subject to the terms and conditions of the Company’s Stock Option Plan and Stock Option Agreement. No right to any stock is earned or accrued until such
time that vesting occurs, nor does the grant confer any right to continued vesting or employment. 

  
 1 

 Protection of Third Party Information / Compliance with Confidentiality Agreement and Company
Policies. 
 We ask that, if you have not already done so, you disclose to the Company any and all agreements relating to your prior
employment that may affect your eligibility to be employed by the Company or restrict your activities on behalf of the Company. By signing below, you represent that you have not signed any agreements that will prevent you from performing the duties
of your position. Moreover, you agree that, during the term of your employment with the Company, you will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which the Company is
now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company. 

In your work for the Company, you will be expected not to make any unauthorized use or disclosure of any confidential or proprietary
information, including trade secrets, of any former employer or other third party to whom you have contractual obligations to protect such information. Rather, you will be expected to use only that information which is generally known and used by
persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is provided or developed by the Company. You represent and agree that you are not in
unauthorized possession of, and will not to bring onto Company premises, any former employer or third party confidential information or property. 

As a Company employee, you will be expected to abide by the Company’s rules, policies and standards (including, but not limited to, the
Company’s Employee Handbook), as adopted or modified by the Company from time to time. As a condition of your employment, you are also required to sign and comply with the Employee Confidential Information and Invention Assignment Agreement
which requires, among other provisions, the assignment of patent rights to any invention made during your employment at the Company, and non-disclosure of Company proprietary information (the
“Agreement”). Please note that we must receive your signed Agreement on or before your first day of employment. 
 At-Will Employment; Severance. 
 At-Will Employment.
The Company is excited about your joining and looks forward to a beneficial and productive relationship. Nevertheless, you should be aware that your employment with the Company is for no specified period and constitutes at-will employment. As a result, you are free to resign at any time, for any reason or for no reason. Similarly, the Company is free to terminate its employment relationship with you at any time, with or without
Cause (as defined below), and with or without advance notice. We request that, in the event of your employment resignation, you give the Company at least two weeks’ notice. 

  
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 Termination without Cause. If, at any time, the Company terminates your employment without
Cause (and other than as a result of your death or disability), and provided such termination constitutes a Separation from Service (as defined below) (such termination, a “Qualifying Termination”), then subject to your signing and
delivering to the Company an effective Release and your continued compliance with the terms of the Agreement, the Company will provide you with the following severance benefits: 

(a) Cash Severance. The Company will pay you, as cash severance, six (6) months of your base salary in effect as of your
Separation from Service date, less standard payroll deductions and tax withholdings (the “Cash Severance”). The Severance will be paid in installments in the form of continuation of your base salary payments, paid on the
Company’s ordinary payroll dates, commencing on the Company’s first regular payroll date that is more than sixty (60) days following your Separation from Service date, and shall be for any accrued base salary for the sixty (60)-day period plus the period from the sixtieth (60th) day until the regular payroll date, if applicable, and all salary continuation payments thereafter, if
any, shall be made on the Company’s regular payroll dates. 
 (b) COBRA Severance. The Company will continue to pay the cost of
your health care coverage in effect at the time of your Separation from Service for a maximum of six (6) months, either under the Company’s regular health plan (if permitted), or by paying your COBRA premiums (the “COBRA
Severance”). The Company’s obligation to pay the COBRA Severance on your behalf will cease if you obtain health care coverage from another source (e.g., a new employer or spouse’s benefit plan), unless otherwise prohibited by
applicable law. You must notify the Company within two (2) weeks if you obtain coverage from a new source. This payment of COBRA Severance by the Company would not expand or extend the maximum period of COBRA coverage to which you would
otherwise be entitled under applicable law. Notwithstanding the above, if the Company determines in its sole discretion that it cannot provide the foregoing, COBRA Severance without potentially violating applicable law (including, without
limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide to you a taxable monthly payment in an amount equal to the monthly COBRA premium that you would be required to pay to continue your group
health coverage in effect on the date of your termination (each payment, a “Special Payment”) (which amount shall be based on the premium for the first month of COBRA coverage), which Special Payments shall be made on the last day
of each month regardless of whether you elect COBRA continuation coverage and shall end on the earlier of (x) the date upon which you obtain other coverage or (y) the last day of the sixth
(6th) calendar month following your Separation from Service date. The first installment of any Special Payment, including any installments that you would have otherwise received earlier, will be
made in the month that the Release becomes effective, but, if the Release Period spans two (2) calendar years, you will not be paid any Special Payments until the second calendar year. 

Termination without Cause in Connection with Change of Control. In the event of a Qualifying Termination that occurs in connection with
or within twelve (12) months following the effective closing date of a Change in Control (as defined below), then subject to your signing and delivering to the Company an effective Release (as defined below) and your continued compliance with
the terms of this offer letter agreement and the Agreement (as defined below), as an additional severance benefit the Company shall accelerate the vesting of any then-unvested shares subject to the Option such that one hundred percent (100%) of such
shares shall be deemed immediately vested and exercisable as of your Separation from Service date (the “Accelerated Vesting”). 

  
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 Resignation; Termination for Cause; Death or Disability. If, at any time, you resign your
employment, or the Company terminates your employment for Cause, or if either party terminates your employment as a result of your death or disability, you will receive your base salary accrued through your last day of employment, as well as any
unused vacation (if applicable) accrued through your last day of employment. Under these circumstances, you will not be entitled to any other form of compensation from the Company, including any Cash Severance, COBRA Severance or Accelerated
Vesting, other than your rights to the vested portion of your Option and any other rights to which you are entitled under the Company’s benefit programs. 

Conditions to Receipt of Cash Severance, COBRA Severance and Accelerated Vesting. Prior to and as a condition to your receipt of the
Cash Severance, COBRA Severance or Accelerated Vesting described above, you shall execute and deliver to the Company an effective release of claims in favor of and in a form acceptable to the Company (the “Release”) within the
timeframe set forth therein, but not later than forty-five (45) days following your Separation from Service date, and allow the Release to become effective according to its terms (by not invoking any legal right to revoke it) within any
applicable time period set forth therein (such latest permitted effective date, the “Release Deadline”). 
 Definitions.

 For purposes of this Agreement, the following terms shall have the following meanings: 

“Cause” for termination will mean your: (a) commission or conviction (including a guilty plea or plea of nolo
contendere) of any felony or any other crime involving fraud, dishonesty or moral turpitude; (b) your commission or attempted commission of or participation in a fraud or act of dishonesty or misrepresentation against the Company;
(c) material breach of your duties to the Company; (d) intentional damage to any property of the Company; (e) misconduct, or other violation of Company policy that causes harm; (f) your material violation of any written and fully
executed contract or agreement between you and the Company, including without limitation, material breach of your Confidentiality Agreement, or of any Company policy, or of any statutory duty you owe to the Company; or (g) conduct by you which
in the good faith and reasonable determination of the Company demonstrates gross unfitness to serve. The determination that a termination is for Cause shall be made by the Company in its sole discretion. 

“Change of Control” shall mean: (a) any consolidation or merger of the Company with or into any other corporation or
other entity or person, or any other corporate reorganization, other than any such consolidation, merger or reorganization in which the stockholders of the Company immediately prior to such consolidation, merger or reorganization, continue to hold a
majority of the voting power of the surviving entity (or, if the surviving entity is a wholly owned subsidiary, its parent) immediately after such consolidation, merger or reorganization; (b) any transaction or series of related transactions to
which the Company is a party in which in excess of fifty percent (50%) of the Company’s voting power is transferred; provided that the foregoing shall not include any transaction or series of transactions principally for bona fide equity
financing purposes in which cash is received by the Company or indebtedness of the Company is cancelled or converted or a combination thereof; or (c) a sale, lease, exclusive license or other disposition of all or substantially all of the
assets of the Company. 

  
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 “Separation from Service” shall mean a “separation from service” as
such term is defined in Treasury Regulation Section 1.409A-1(h). 
 Compliance with Section
409A. 
 It is intended that the Cash Severance, COBRA Severance and Accelerated Vesting set forth in this Agreement satisfy, to the
greatest extent possible, the exemptions from the application of Section 409A of the Internal Revenue Code of 1986, as amended, (the “Code”) (Section 409A, together with any state law of similar effect, “Section
409A”) provided under Treasury Regulations 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). For purposes of Section
409A (including, without limitation, for purposes of Treasury Regulations 1.409A-2(b)(2)(iii)), your right to receive any installment payments under this Agreement (whether severance payments, reimbursements
or otherwise) shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment. Notwithstanding any provision to the contrary
in this Agreement, if the Company (or, if applicable, the successor entity thereto) determines that the Cash Severance, COBRA Severance or Accelerated Vesting constitute “deferred compensation” under Section 409A and you are, on the date
of your Separation from Service, a “specified employee” of the Company or any successor entity thereto, as such term is defined in Section 409A(a)(2)(B)(i) of the Code (a “Specified Employee”), then, solely to the extent
necessary to avoid the incurrence of adverse personal tax consequences under Section 409A, the timing of the Cash Severance, COBRA Severance and Accelerated Vesting shall be delayed until the earliest of: (i) the date that is six
(6) months and one (1) day after your Separation from Service date, (ii) the date of your death, or (iii) such earlier date as permitted under Section 409A without the imposition of adverse taxation. Upon the first business day
following the expiration of such applicable Code Section 409A(a)(2)(B)(i) period, all payments or benefits deferred pursuant to this Section 17 shall be paid in a lump sum or provided in full by the Company (or the successor entity thereto, as
applicable), and any remaining payments due shall be paid as otherwise provided herein. No interest shall be due on any amounts so deferred. If the Cash Severance, COBRA Severance and Accelerated Vesting benefits are not covered by one or more
exemptions from the application of Section 409A and the Release could become effective in the calendar year following the calendar year in which you have a Separation from Service, the Release will not be deemed effective any earlier than the
Release Deadline. The Cash Severance, COBRA Severance and Accelerated Vesting benefits are intended to qualify for an exemption from application of Section 409A or comply with its requirements to the extent necessary to avoid adverse personal tax
consequences under Section 409A, and any ambiguities herein shall be interpreted accordingly. 
 Section 280G; Parachute Payments.

 (a) If any payment or benefit you will or may receive from the Company or otherwise (a “280G Payment”) would
(i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then
any such 280G Payment provided pursuant to this Agreement (a “Payment”) shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion
of the Payment (after reduction) being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount (i.e., the amount 

  
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determined by clause (x) or by clause (y)), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest
applicable marginal rate), results in your receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a
reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction shall occur in the manner (the “Reduction Method”) that
results in the greatest economic benefit for you. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”). 

(b) Notwithstanding any provision of subsection (a) above to the contrary, if the Reduction Method or the Pro Rata Reduction
Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A that would not otherwise be subject to taxes pursuant to Section 409A, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may
be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for you as determined on
an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without Cause), shall be reduced (or eliminated) before Payments that are not contingent
on future events; and (C) as a third priority, Payments that are “deferred compensation” within the meaning of Section 409A shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of
Section 409A. 
 (c) Unless you and the Company agree on an alternative accounting firm or law firm, the accounting firm engaged by
the Company for general tax compliance purposes as of the day prior to the effective date of the Change in Control transaction shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or
auditor for the individual, entity or group effecting the change in control transaction, the Company shall appoint a nationally recognized accounting or law firm to make the determinations required by this Section 18. The Company shall bear all
expenses with respect to the determinations by such accounting or law firm required to be made hereunder. The Company shall use commercially reasonable efforts to cause the accounting or law firm engaged to make the determinations hereunder to
provide its calculations, together with detailed supporting documentation, to you and the Company within fifteen (15) calendar days after the date on which your right to a 280G Payment becomes reasonably likely to occur (if requested at that
time by you or the Company) or such other time as requested by you or the Company. 
 (d) If you receive a Payment for which the
Reduced Amount was determined pursuant to clause (x) of Section 18(a) and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, Executive agrees to promptly return to the Company a
sufficient amount of the Payment (after reduction pursuant to clause (x) of Section 18(a)) so that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined pursuant to
clause (y) of Section 18(a), you shall have no obligation to return any portion of the Payment pursuant to the preceding sentence. 

  
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 Dispute Resolution. 

To ensure the timely and economical resolution of disputes that may arise in connection with your employment with the Company, you and the
Company agree that any and all disputes, claims, or causes of action arising from or relating to the enforcement, breach, performance, negotiation, execution, or interpretation of this Agreement, or your employment, or the termination of your
employment, including but not limited to all statutory claims, shall be resolved pursuant to the Federal Arbitration Act, 9 U.S.C. §1-16, and to the fullest extent permitted by law, by final, binding and
confidential arbitration by a single arbitrator conducted in San Francisco, California, by Judicial Arbitration and Mediation Services Inc. (“JAMS”) under the then applicable JAMS rules, which can be found at the following web
address: http://www.jamsadr.com/rulesclauses). A hard copy of the rules will be provided to you upon request. By agreeing to this arbitration procedure, both you and the Company waive the right to resolve any such dispute through a trial
by jury or judge or administrative proceeding. In addition, all claims, disputes, or causes of action under this section, whether by you or the Company, must be brought in an individual capacity, and shall not be brought as a plaintiff (or
claimant) or class member in any purported class or representative proceeding, nor joined or consolidated with the claims of any other person or entity. The Arbitrator may not consolidate the claims of more than one person or entity, and may not
preside over any form of representative or class proceeding. This paragraph shall not apply to an action or claim brought in court pursuant to the California Private Attorneys General Act of 2004, as amended. The Company acknowledges that you will
have the right to be represented by legal counsel at any arbitration proceeding. Questions of whether a claim is subject to arbitration under this agreement) shall be decided by the arbitrator. Likewise, procedural questions which grow out of the
dispute and bear on the final disposition are also matters for the arbitrator. The arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted
by law; (b) issue a written arbitration decision, to include the arbitrator’s essential findings and conclusions and a statement of the award; and (c) be authorized to award any or all remedies that you or the Company would be
entitled to seek in a court of law. The Company shall pay all JAMS’ arbitration fees in excess of the amount of court fees that would be required of you if the dispute were decided in a court of law. Nothing in this Agreement is intended to
prevent either you or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. Any awards or orders in such arbitrations may be entered and enforced as judgments in the federal
and state courts of any competent jurisdiction. 
 Miscellaneous. 

For purposes of federal immigration law, you will be required to provide to the Company documentary evidence of your identity and eligibility
for employment in the United States. Such documentation must be provided to us within three (3) business days of your date of hire, or your employment may be terminated. 

This letter, along with the Agreement, forms the complete and exclusive agreement regarding your employment with the Company. It supersedes
any prior representations or agreements including, but not limited to, any representations made during your recruitment, interviews or pre-employment negotiations, whether written or oral. Except for those
changes expressly reserved to the Company’s discretion, the terms in this letter, including, but not 

  
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limited to, its at-will employment provision, may not be modified or amended except by a written agreement signed by an authorized officer or member of the
Board of the Company and you. If any provision of this offer letter agreement is determined to be invalid or unenforceable, in whole or in part, this determination shall not affect any other provision of this offer letter agreement and the provision
in question shall be modified so as to be rendered enforceable in a manner consistent with the intent of the parties insofar as possible under applicable law. 

To accept the Company’s offer, please sign and date this letter in the space provided below. If you accept our offer, your first day of
employment will be on or around May 16 for the Company’s AGM in Sydney Australia – June 6, 2016. Due to ongoing obligations at employee’s current employer, it may be necessary to work through the end of May at his current
company. AirXpanders will make every effort to allow the needed time for the employee to close out his required work flow. This offer of employment will terminate if it is not accepted, signed and returned by the close of business on May 6,
2016. If you choose to electronically submit your signed offer of employment, please send to my confidential email at sdodson@airxpanders.com or my confidential fax
650-390-9002. 
 [Signature Page to Follow] 

  
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 We look forward to your favorable reply and to working with you at AirXpanders, Inc. 

 

	
	Sincerely,
	
	

	Scott Dodson
	President and CEO
	AirXpanders, Inc.

  

			
	Agreed to and accepted:
		
	Signature:	 	 

  

		
	Date:	 	 2-May-2016

  
 9EX-10.7

 Exhibit 10.7 

License Agreement between Shalon Ventures Inc. and Expanders Inc. 

THIS LICENSE AGREEMENT (the “Agreement”) is effective as of March 9, 2005 (the “Effective Date”) and is
made by and between Shalon Ventures Inc., a California corporation (“SV”) and Expanders Inc., a Delaware corporation (“Licensee”). 

R E C I T A L S 
 WHEREAS,
SV owns or controls certain Patent Rights and Know How (each as defined below) related to the use self inflating tissue expanders for therapeutic purposes as a result of an assignment from the inventors of the Patent Rights; 

WHEREAS, Licensee has expertise in the area of medical product development. 

WHEREAS, SV desires to grant a license to Licensee under certain Patent Rights and Licensee desires to obtain such a license upon the terms
and conditions hereinafter set forth. 
 NOW THEREFORE, in consideration of the premises and of the covenants contained herein, the Parties
mutually agree as follows: 
 ARTICLE 1. DEFINITIONS 

For purposes of this Agreement, the terms defined in this Article shall have the meanings specified below. Certain other capitalized terms are
defined elsewhere in this Agreement. 
 1.1 “Active Program” shall mean an active, funded, relevant and ongoing research
and development or commercial development program as evidenced by the expenditure of a total of at least two-hundred thousand dollars ($200,000) per annum in research and development for an Application Area.

 1.2 “Affiliate” shall mean any corporation or other entity which controls, is controlled by, or is under common control
with a Party. A corporation or other entity shall be regarded as in control of another corporation or entity if it owns or directly or indirectly controls more than fifty percent (50%) of the voting stock or other ownership interest of the other
corporation or entity, or if it possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of the corporation or other entity or the power to elect or appoint more than fifty percent (50%) of the
members of the governing body of the corporation or other entity. 
 1.3 “Application Areas” shall mean all human uses of
self expanding tissue expanders. 

 1.4 “Know How” shall mean trade secrets, developments, inventions, discoveries,
concepts, ideas, formulations, research or other materials, designs equipment, apparatus, processes, methods, techniques and plans, whether or not patentable, as well as related know-how. 

1.5 “Licensed Patent Rights” shall mean the Patent Rights listed on Exhibit A hereto and all extensions, registrations,
confirmations, reissues, divisions, continuations or continuations-in-part, to the extent the claims in such continuations-in-part are directed to subject matter specifically described in the original application or patent, re-examinations or renewals thereof, and any corresponding foreign filings claiming priority
from any of the foregoing and all patents issuing from any of the foregoing, as may be amended from time to time. 
 1.6 “Net
Sales” shall mean the gross amount invoiced by Licensee or its Affiliates for sales of Products, less the following: 

(a) customary trade, quantity, or cash discounts to the extent actually allowed and taken; 

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

(c) 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 Product which is paid by or on behalf of Licensee or its Affiliates; and 

(d) outbound transportation costs prepaid or allowed and costs of insurance in transit. 

(e) Product returns. 
 No
deductions shall be made for commissions paid to individuals whether they be with independent sales agencies or regularly employed by Licensee or its Affiliate and on its payroll, or for cost of collections. Net Sales shall occur on the date of
invoicing for a Product. If a Product is distributed at a discounted price that is substantially lower than the customary price charged by Licensee or its Affiliate, or distributed for non-cash consideration
(whether or not at a discount), Net Sales shall be calculated based on the non-discounted amount of the Product charged to an independent Third Party during the same calendar quarter or, in the absence of such
sales, on the fair market value of the Product. 
 As used herein, “Combination Product” means a product that contains a
Product as one component and at least one other active component. In the case of a Combination Product, Net Sales shall mean the gross amount received by Licensee or its Affiliate, as applicable, on sales of the Combination Product less the
deductions set forth above, multiplied by a proration factor that is determined as follows: (i) if all components of the Combination Product were sold separately during the same or immediately preceding calendar quarter, the proration factor
shall be determined by the formula [A / (A+B)], where A is the aggregate gross sales price of all Product components during such period when sold separately from the other active components, and B is the aggregate gross

  
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sales price of the other active components during such period when sold separately from the Product components; or (ii) if all components of the Combination Product were not sold separately
during the same or immediately preceding calendar quarter, the proration factor shall be determined by the formula [C / (C+D)], where C is the aggregate fully absorbed cost of the Product components during the prior calendar quarter and D is the
aggregate fully absorbed cost of the other active components during the prior calendar quarter, with such costs being determined in accordance with generally accepted accounting principles. 1.7 “Party” shall mean SV or Licensee.
“Parties” shall mean SV and Licensee, collectively. 
 1.7 “Patent Rights” shall mean all United States
patents and patent applications, and all extensions, registrations, confirmations, reissues, divisions, continuations or continuations-in-part, to the extent the claims
in such continuations in-part are directed to subject matter specifically described in the original application or patent, re-examinations or renewals thereof, and any
corresponding foreign filings and all patents issuing from any of the foregoing. 
 1.8 “Products” shall mean products and
methods for use in an Application Area including manufactures, compositions, methods or devices , which but for the license granted hereunder, the manufacture, use or sale of which, would infringe one or more Valid Claims of any of the Licensed
Patent Rights. Where a Product is a method, the royalty shall be based on the fee for carrying out the service where there is no tangible product or on the product that is the result of performing the infringing method. 

1.9 “Sublicensee” shall mean a sublicensee that is granted a sublicense to Licensee’s rights under this Agreement in
accordance with Section 2.2 hereto. 
 1.10 “Sublicense Income” shall mean payments or
non-cash consideration that Licensee receives from a Sublicensee in consideration of a Sublicense, including, without limitation, any royalties based on sales of Products, license fees, milestone payments,
license maintenance fee payments, and other payments, but specifically excluding amounts received by Licensee from a Sublicensee for equity or debt at fair market value, research and development, compensation for other products or services purchased
from Licensee at fair market value, and the license or sublicense of any intellectual property other than the Patent Rights. The fair market value of any non-cash consideration shall be used to calculate
Sublicense Income 
 1.11 “Term” shall have the meaning provided in Section 9.1 hereto. 

1.12 “Territory” shall mean the world. 

1.13 “Third Party” shall mean any entity other than one of the Parties or one of their respective Affiliates. 

1.14 “Valid Claim” means, on a country per country basis, either: (i) a claim of an issued and unexpired patent included
within the Licensed Patent Rights which has not been held permanently revoked, unenforceable or invalid by a decision of a court or other 

  
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governmental agency of competent jurisdiction, unappealable or unappealed within the time allowed for appeal, and which has not been admitted to be invalid or unenforceable through reissue re
examination, disclaimer or otherwise; or (ii) a claim of a pending patent application included within the Licensed Patent Rights, which claim was filed in good faith and has not been abandoned or finally disallowed without the possibility of
appeal or refiling of said application. Notwithstanding the foregoing, if a claim of a pending patent application has not issued as a claim of an issued patent within seven (7) years after the filing date from which such claim takes priority,
such pending claim shall cease to be a Valid Claim for purposes of paying royalties under this Agreement unless and until such claim becomes an issued claim of an issued patent. 

ARTICLE 2. LICENSES 
 2.1
License to Licensee. Subject to the terms and conditions of this Agreement and to any retained government rights, SV hereby grants to Licensee an exclusive right and license, with the right to grant sublicenses pursuant to Section 2.2
below, under the Licensed Rights to develop, make, have made, use, offer for sale, sell, have sold, import and export Products in the Application Areas in the Territory. Notwithstanding the above, other licensees of the Licensed Patent Rights in
fields other than the Application Areas shall not be precluded from practicing their rights in the event of the adventitious employment of the rights licensed herein. 

2.2 Sublicenses. Licensee shall incorporate terms and conditions into its sublicense agreements with Sublicensees sufficient to enable
Licensee to comply with this Agreement. Licensee shall promptly furnish SV with a fully signed photocopy of any such sublicense agreement, deleting economic terms only if necessary. Upon termination of this Agreement for any reason, any Sublicensee
not then in default under its sublicense agreement with Licensee shall have the right to seek a license directly from SV, and SV agrees to negotiate such licenses in good faith under reasonable terms and conditions; provided that, SV’s
and Sublicensee’s obligations under any such negotiated license shall be no greater than the obligations provided hereunder.  

ARTICLE 3. DILIGENCE 
 3.1
Diligence 
 3.1.1 Licensee shall use diligent efforts, and/or shall cause its Affiliates and Sublicensees to use diligent efforts,
to develop Products and to introduce Products into the commercial market, and, thereafter to make Products reasonably available to the public. Licensee or Sublicensee shall provide Licensor a semi-annual progress report detailing its, its Affiliates
or its Sublicensee’s commercial diligence. 
 3.2 Compliance with Laws. Licensee shall comply and shall require its Affiliates
and Sublicensees to comply with all applicable statutes, laws, ordinances, rules and regulations and obtain all appropriate government approvals pertaining to the sale, distribution, export and advertising of Products, including, without limitation,
all Export Administration Regulations of the United States Department of Commerce. Licensee 

  
 4 

 
shall bear sole responsibility for any violation of such laws and regulations by itself or its Affiliates or Sublicensees, and that it will indemnify, defend, and hold SV harmless (in accordance
with Article 8 hereto) for the consequences of any such violation. 
 3.3 Termination Right. If Licensee is in breach of any of its
obligations under this Article 3, SV shall have the right to terminate this Agreement in accordance with the provisions of Section 9.2 below. If an Affiliate or Sublicensee is in breach of any of its obligations under this Article 3, SV shall
have the right to terminate the sublicense Agreement in accordance with the provisions of Section 9.2 below. 
 3.4 Upon termination
for other than expiration of the Licensed Patent Rights, Licensee shall have three (3) months to complete the production of any Products that are works in progress and to sell any inventory of Products on hand as of the effective date of
termination and may fill any bona fide orders accepted prior to the date of termination, provided that Licensee pays to SV the applicable royalties in accordance with Article 4 and provided that no such sale hereunder shall occur as from six
(6) months after such termination. 
 ARTICLE 4. PAYMENTS, REPORTS, RECORDS 

4.1 Royalties. 
 4.1.1
Licensee shall pay to SV a running royalty of three percent (3 %) of Net Sales. 
 4.1.2 Until royalties due and paid to SV in a calendar
year exceed ten thousand dollars ($10,000), Licensee shall pay to SV its documented out of pocket costs for prosecuting and maintaining the patents underlying this license. The payments shall be a credit against future royalties due to SV subject to
the restriction set forth in 4.1.1, 
 4.2 Reports. 

4.2.1 Within six (6) months of the Effective Date, Licensee shall furnish SV with a written research and development plan describing the
major tasks to be achieved in order to bring to market a Product, specifying the number of staff and other resources to be devoted to such commercialization effort (“R&D Plan”). Thereafter, sixty (60) days after the end of a
calendar year until the first commercial sale for each Product, Licensee shall report to SV the amounts expended toward the development and commercialization of each Product and provide sufficient evidence to substantiate the amounts stated. The
written report required shall also include at least the progress of Licensee’s efforts during the immediately preceding calendar year to develop and commercialize Products, including, without limitation, its progress on the tasks detailed in
its R&D Plan, reports of research and development activities, any changes in the R&D Plan, regulatory approvals, strategic alliances, and manufacturing, sublicensing and marketing efforts. The report shall also contain a discussion of
intended efforts and sales projections for the year in which the report is submitted 

  
 5 

 4.2.2 Following the first commercial sale of a Product, Licensee shall provide written reports to
SV within thirty (30) days of the end of each calendar quarter, containing at least the following information: 
 (a) the number
of Products sold during such calendar quarter by Licensee and its Affiliates to independent Third Parties in each country; 
 (b) the gross
price charged by Licensee and its Affiliates for each Product sold in each country during such calendar quarter; 
 (c) calculation of Net
Sales for such calendar quarter in each country, including a listing of applicable deductions; 
 (d) total running royalties due on Net
Sales in U.S. dollars, together with the exchange rates used for conversion, and if no royalties are due for such calendar quarter, the report shall so state; 

(e) the names and addresses of any Sublicensees granted a sublicense during such calendar quarter; 

(f) the amount of Sublicense Income received by Licensee during such calendar quarter from each Sublicensee and the amount due to SV from such
Sublicense Income, including an itemized breakdown of the sources of income comprising the Sublicense Income and any Licensee audit documents of Sublicense; and 

(g) any running royalties or payments based on Sublicense Income due shall be paid in the quarter in which they are received by Licensee with
the report delivered pursuant to this Section 4.3. 
 4.3 Records and Audits. Licensee shall maintain, and shall cause its
Affiliates and Sublicensees to maintain, complete and accurate records, in accordance with generally accepted accounting principles, relating to the development and commercialization of Products and any amounts payable in relation to this Agreement,
which records shall contain sufficient information to permit SV to confirm the accuracy of any reports delivered hereunder and compliance in other respects with this Agreement. Licensee shall, and shall cause its Affiliates and Sublicensees to,
retain such records at Licensee’s, its Affiliates’ or Sublicensees’ place of business, as applicable, for at least three (3) years following the end of the calendar year to which they pertain, during which time SV or its
appointed agents, shall have the right, at SV’s expense (subject to the last sentence of this Section 4.3), to inspect such records during normal business hours at mutually agreeable times to verify any reports and payments made, or
compliance in other respects, under this Agreement. Licensee shall require that its Affiliates and Sublicensees allow such inspections by SV. In the event that any audit performed pursuant to this Section 4.4 reveals an underpayment in excess
of five percent (5%), Licensee shall bear the full cost of such audit and shall remit any amounts due to SV within thirty (30) days of receiving notice thereof from SV. 

  
 6 

 4.4 Payments in U.S. Dollars. All payments due under this Agreement shall be drawn on a
United States bank and shall be payable in United States dollars. Conversion of foreign currency to United States dollars shall be made 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 for which a report under Section 4.3 is due. Such payments shall be without deduction of exchange, collection, or other charges, and, specifically, without deduction of withholding or similar taxes or other
government imposed fees or taxes, except as permitted in the definition of Net Sales. If a foreign government taxes the royalty income due SV, it is Licensee’s duty to pay the tax without an offset from SV. 

4.5 Late Payments. Any payments to be made hereunder that are not paid on or before the date such payments are to be made under this
Agreement shall bear interest from the date payment is to be made at the lower rate of: (a) two percentage points above the Prime Rate of interest as reported in the Wall Street Journal on the date payment is due; and (b) the maximum rate
permitted by law. 
 ARTICLE 5. INTELLECTUAL PROPERTY OWNERSHIP AND PROTECTION 

5.1 Ownership. Licensee hereby acknowledges that, as between Licensee and SV, SV is the owner of all right, title and interest in and
to the Licensed Rights. 
 5.2 Patent Prosecution: SV shall have the primary right, but not the obligation, on its own or through its
designee, to prepare, file, prosecute, and maintain (collectively, “Prosecute”) the Licensed Patent Rights. In the event that SV desires to abandon any Licensed Patent Right that is necessary or useful for developing, making, having
made, using, offering for sale, selling, having sold, importing or exporting Products in an Application Area or to decline responsibility for the Prosecution of any such Licensed Patent Right, SV shall provide Licensee with sufficient prior written
notice of such intended abandonment or declination of responsibility so that Licensee shall have the opportunity to assume responsibility for the preparation, filing, prosecution or maintenance of such Licensed Patent Right without the loss of any
rights therein, and Licensee or its designee shall have the right, at its cost and expense, to Prosecute the relevant Licensed Patent Right in the name of SV, as appropriate, to the extent legally necessary. 

5.3 Enforcement of Patent Rights. 

5.3.1 Notices of Alleged or Threatened Infringement. Each Party shall promptly notify the other in writing (1) of any alleged or
threatened infringement by a Third Party of any Licensed Patent Right, (2) if such Party, or any of its Affiliates or Sublicensees, shall be individually named as a defendant in a legal proceeding brought by a Third Party for infringement of a
patent because of the practice of any Licensed Patent Right, or (3) of any attempts by Third Parties to invalidate any Licensed Patent Right, and shall provide such other Party with all available evidence of any such alleged or threatened
infringement, proceeding or attempt 

  
 7 

 5.3.2 Enforcement of the Licensed Patent Rights. SV or its designee shall have the primary right,
but not the obligation, under its own or its designee’s control and at its own or its designee’s expense, to prosecute any Third Party infringement of the Licensed Patent Rights and/or to defend the Licensed Patent Rights in any
declaratory judgment action brought by a Third Party which alleges invalidity, unenforceability, or non-infringement of the Licensed Patent Rights. If SV or its designee recovers any damages, by way of
settlement or otherwise, in connection with such prosecution or defense, such recovery shall be retained by SV or its designee. Should SV and its designee elect not to prosecute any such infringement or defend any such declaratory judgment action on
its own or through a designee by an entity commercializing products in an Application Area within sixty (60) days of SV becoming aware of or being notified of such infringement or action, then Licensee or its designee shall have the right to do
so under its own control and at its own expense and in the name of SV to the extent legally necessary. If Licensee recovers any damages, by way of settlement or otherwise, in connection with such prosecution or defense, after Licensee recovers twice
its legal fees and expenses, it shall pay to SV running royalties on any amount of such damages based on lost sales. Any additional damages recovered shall be retained by Licensee. 

5.4 Cooperation. Each Party shall take all actions reasonably requested by another Party, and shall require its Affiliates and
Sublicensees to do the same, to assist the requesting Party, at the requesting Party’s expense, in the filing, prosecution, maintenance, and enforcement of any of the Licensed Patent Rights pursuant to this Article 5, including without
limitation making available to the other Party (or to the other Party’s authorized attorneys, agents or representatives) its employees, agents or consultants, and the signing, or causing its employees, agents or consultants to sign, all
documents relating to said patent applications or patents. In addition, each Party consents to being named as a party in any action if such Party is an indispensable party to any action which the other Party is entitled to bring under this Article
5; provided, that the other Party agrees to defend, indemnify and hold harmless such Party against any claims or liabilities arising from such action. 

ARTICLE 6. CONFIDENTIALITY 

6.1 Nondisclosure Obligations. During the Term and for three (3) years thereafter, each Party (a “Receiving
Party”) shall cause all proprietary business information of the other Party (a “Disclosing Party”) and which is obtained by the Receiving Party or its officers, employees and other representatives in connection with the
negotiation or performance of this Agreement and not previously known to such Party (collectively, “Confidential Information”), to be treated as confidential and shall not use any such information other than in the normal course of
its business as and to the extent contemplated hereunder, which use shall be made in such a way as is intended to protect the proprietary nature and confidentiality thereof, consistent with the Party’s practices for the protection of its own
proprietary and confidential information, but in no event less than reasonable care. Each Party represents, warrants and covenants that it has instructed or will instruct its officers, employees and other representatives having access to such
information of such Party’s obligation of confidentiality. 

  
 8 

 6.2 Exceptions. Notwithstanding the foregoing, a Receiving Party may disclose any
information which such Party is obligated under this Agreement to keep confidential as follows: 
 (A) to which the other Disclosing Party
consents in writing; 
 (B) to officers, employees and other representatives and attorneys of the Receiving Party who need to know such
confidential information for the purpose of assisting or advising such Party, provided that the Receiving Party informs each such officer, employee and other representative and attorney of the confidential nature of such information and such person
is obligated to maintain the information in confidence; 
 (C) to Third Parties whose consent or approval is required for consummating and
performing the transactions contemplated herein to the extent necessary to obtain such consent or approval and, if practicable, subject to the agreement of such Third Party to maintain the confidentiality thereof; 

(D) if required under applicable law or in connection with any filings or registrations with any court, arbitration board, administrative
agency or commission, or other governmental or regulatory body, agency, instrumentality or authority, which are required to consummate and perform the transactions contemplated by this Agreement; and 

(E) in order to use such information as evidence in or in connection with any pending or threatened litigation related to this Agreement or
any transaction contemplated hereunder; 
 (F) each party shall have the right to disclose this agreement or portions of it in confidence as
provided in this Article to a party with a need to know; 
 but in each case only to the extent such disclosure is necessary in connection
with the purpose for which disclosure is permitted and, if practicable, subject to the agreement of such Third Party to maintain the confidentiality thereof. The obligations of confidentiality set forth herein shall not apply to information
generally available to the public or in the possession of the Receiving Party prior to its disclosure under this Agreement or that is given to the Receiving Party on a non-confidential basis by another person
other than in breach of obligations of confidentiality owed by such person to the Disclosing Party under this Agreement. 
 6.3
Obligations Upon Termination. In the event of the expiration or termination of this Agreement, each Receiving Party shall return or destroy, and cause any person acting on its behalf in connection with the transactions contemplated by this
Agreement to return or destroy, all such Confidential Information (including copies thereof), except one copy thereof which may be retained to evidence a Party’s legal rights and obligations under this Agreement or in connection with any legal
action related thereto. 

  
 9 

 6.4 Terms of this Agreement. The Parties each agree not to disclose any terms or
conditions of this Agreement to any Third Party without the prior consent of the other Party; provided, that each Party shall be entitled to disclose the terms of this Agreement without such consent to potential investors or other financing
sources or to potential merger or acquisition candidates on the condition that such entities or persons agree to keep such terms confidential for the same time periods and to the same extent as such Party is required to keep such terms confidential.

 ARTICLE 7. REPRESENTATIONS AND WARRANTIES 

7.1 Mutual Representations. Each Party hereby represents, warrants and/or covenants to the other Party that (a) it has the legal
right and power to enter into this Agreement, to extend the rights and licenses granted under this Agreement, and to perform fully its obligations hereunder, (b) this Agreement has been duly executed and delivered and is a valid and binding
agreement of such Party, enforceable in accordance with its terms, (c) it has obtained all necessary consents and approvals to the transactions contemplated hereby, (d) it has not made and will not make any commitments to others in
conflict with or in derogation of such rights or this Agreement, and (e) the execution of this Agreement and the arrangements and transactions contemplated by this Agreement do not conflict with or breach the terms of any agreement that such
Party or its Affiliates may have with any Third Party as of the Effective Date. 
 7.2 Disclaimer of Representations and Warranties.
EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, SV DOES NOT MAKE ANY REPRESENTATIONS OR EXTEND ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, OR THE NON-INFRINGEMENT OF ANY THIRD PARTY PATENTS OR PROPRIETARY RIGHTS, AND ALL UNIFORM COMMERCIAL CODE WARRANTIES, OR SIMILAR WARRANTIES UNDER LAWS OF ANY OTHER COUNTRY, ARE EXPRESSLY DISCLAIMED BY
SV. 
 7.3 Limitation of Liability. No Party accepts any liability under or in relation to this Agreement or its subject matter
(whether such liability arises due to negligence, breach of contract, misrepresentation or for any other reason) for any: loss of profits; loss of sales; loss of turnover; loss of or damage to business; loss of or damage to reputation; loss of
contracts; loss of customers; wasted management or other staff time; losses or liabilities under or in relation to any other contract; indirect, special or consequential loss or damage, and for the purposes of this clause the term “loss”
includes a partial loss or reduction in value as well as a complete or total loss. 
 ARTICLE 8. INDEMNIFICATION 

8.1 By Licensee. Licensee hereby agrees at all times to defend, indemnify and hold SV and its Affiliates, and their respective
assignees, successors, and the officers, agents, employees of each of them (each an “SV Indemnitee”), harmless from and against any and all claims, damages, liabilities, losses, costs and expenses (including, without limitation,
attorneys’ fees) (collectively, “Losses”) arising out of or in connection with any Third Party claim based on: 
 (a)
any material breach of any representation, warranty, covenant, condition or agreement made or to be performed by Licensee under the terms of this Agreement; 

  
 10 

 (b) the commercialization of Products or any other exercise or practice by Licensee, its
Affiliates or Sublicensees (except for those Affiliates and Sublicensees explicitly approved by SV) of the licenses granted hereunder to Licensee, including, without limitation, (i) any claim based on an alleged breach of any warranty, implied
or otherwise, of merchantability or fitness for a particular purpose or intended use, (ii) any claim of infringement of a Third Party’s intellectual property rights; (iii) any claim alleging or based on product liability or false
advertising, and/or (iv) any claim arising on account of any injury or death of persons or damage to property; or 
 (c) the gross
negligence, intentional misconduct or illegal actions of a Licensee Indemnitee (as defined below). 
 Provided, however, that the
foregoing indemnification obligations shall not apply to any Losses to the extent directly attributable to (i) the gross negligence, intentional misconduct or illegal actions of an SV Indemnitee, (ii) the material breach of the
representations and warranties hereunder by SV, or (iii) the settlement of a claim, suit, action, or demand by an SV Indemnitee without the prior written approval of Licensee. 

8.2 By SV. SV hereby agrees at all times to defend, indemnify and hold harmless Licensee and its Affiliates and Sublicensees, and their
respective successors, and the officers, agents, and employees of each of them (each a “Licensee Indemnitee”), from and against any and all Losses arising out of or in connection with any Third Party claim based on: 

(a) any material breach of any representation, warranty, covenant, condition or agreement made or to be performed by SV under the terms of
this Agreement; or 
 (b) the gross negligence, intentional misconduct or illegal actions of an SV Indemnitee. 

Provided, however, that the foregoing indemnification obligations shall not apply to any liability, demands, damage, expense or losses
to the extent directly attributable to (i) the gross negligence, intentional misconduct or illegal actions of a Licensee Indemnitee, (ii) the breach of the representations and warranties hereunder by Licensee, or (iii) the settlement
of a claim, suit, action, or demand by a Licensee Indemnitee without the prior written approval of SV. 
 8.3 Indemnification
Procedure. In the event that an SV Indemnitee or a Licensee Indemnitee (each an “Indemnitee”) intends to claim indemnification hereunder, such Indemnitee shall promptly notify the indemnifying Party of any liability in respect
of which the Indemnitee intends to claim such indemnification, and the indemnifying Party 

  
 11 

 
shall assume and have exclusive control over the defense thereof with counsel selected by the indemnifying Party that is reasonably satisfactory to the Indemnitee; provided, however, that
such Indemnitee shall have the right to fully participate in any such action or proceeding and to retain its own counsel, with the reasonable fees and expenses to be paid by the indemnifying Party, if representation of such Indemnitee by the counsel
retained by the indemnifying Party would be inappropriate under applicable standards of professional conduct due to actual or potential differing interests between such Indemnitee and any other party represented by such counsel in such proceedings.
Neither the indemnifying Party nor the Indemnitee shall enter into any settlement agreement with any Third Party without the consent of the other Party, which consent shall not be unreasonably withheld or delayed. The failure to deliver notice to
the indemnifying Party within a reasonable time after the commencement of such action, to the extent prejudicial to the indemnifying Party’s ability to defend such action, shall relieve the indemnifying Party of its indemnification obligations
hereunder, but the failure to so deliver notice to the indemnifying Party will not relieve it of any liability that it may have to any Indemnitee otherwise than as aforesaid. The Indemnitee shall, at the expense of the indemnifying Party, cooperate
with the indemnifying Party and its legal representatives in the investigation and defense of any liability covered by this Agreement. 

8.4 Insurance. From the date of the first commercial sale of a Product by Licensee, its Affiliates or Sublicensees until three
(3) years from the end of the Term, Licensee shall have and maintain such types and amounts of liability insurance as is normal and customary in the industry generally for parties similarly situated, and shall upon request provide SV with a
copy of its policies of insurance in that regard, along with any amendments and revisions thereto. 
 ARTICLE 9. TERM AND TERMINATION

 9.1 Term. This Agreement shall commence on the Effective Date and shall expire upon the expiration of the last-to-expire Valid Claim or while there is a pending patent application under the Licensee Patent Rights, unless earlier terminated as provided hereunder (the
“Term”). 
 9.2 Termination for Breach. If a Party fails to comply with any of the material terms and conditions of
this Agreement, the other Party may terminate this Agreement upon ninety (90) days’ written notice to the defaulting Party specifying any such breach unless within the period of such notice, all breaches specified therein shall have been
remedied, or unless the breach is one which, by its nature, cannot be fully remedied in ninety (90) days, but the breaching party has undertaken reasonable and continuous, good faith efforts toward remedying the breach within such ninety
(90) days, and continues to use reasonable, good faith, and diligent efforts to promptly remedy the breach. 
 9.3 Termination for
Insolvency. Either Party may terminate this Agreement if the other Party becomes insolvent, has a petition in bankruptcy filed against it, which is consented to, acquiesced in or remains undismissed for ninety (90) days, makes a general
assignment for the benefit of creditors, or has a receiver appointed. In addition to the right to terminate this Agreement under this Section 9.3, the Parties shall have all legal and equitable remedies available to enforce the terms and
conditions of this Agreement. 

  
 12 

 9.4 Effects of Termination and Expiration. 

9.4.1 Upon any termination of this Agreement: 

(a) Licensee, its Affiliates and Sublicensees shall have three (3) months to complete the production of any Products that are works in
progress and to sell any inventory of Products on hand as of the effective date of termination and may fill any bona fide orders accepted prior to the date of termination, provided that Licensee pays the applicable royalties and sublicense
fees in accordance with Article 4 hereto and provided that no such sale hereunder shall occur later than six (6) months after such termination or produced thereafter from works in progress; 

(b) All amounts due but previously unpaid by any terminated Party shall be due and payable as of the time of termination; and 

(c) all rights and licenses granted to Licensee hereunder shall immediately terminate. 

9.4.2 Upon expiration of this Agreement, each Party shall retain a fully paid-up, royalty-free, non-exclusive right and license under any Know How of the other Party licensed hereunder. SV shall have the sole right to negotiate with Licensee for Know-How developed by Licensee in the development and
commercialization of a Product that Licensee no longer intends to sell. 
 9.4.3 Upon expiration or termination of this Agreement: 

(a) The Parties shall abide by their obligations under Section 9.4.1 above; and 

(b) In addition to and in no way limiting the provisions of Section 9.4.1 above, upon expiration or termination of this Agreement,
Articles 1, 4, 5, 6, 7 and 8 and Sections 4.4, 4.5, 4.6, 5.3, 5.5, 10.7 and 10.8 shall survive expiration or termination of this Agreement in accordance with their terms. 

ARTICLE 10. MISCELLANEOUS 

10.1 Further Assurances. Each of the Parties shall execute such documents, further instruments of transfer and assignment and other
papers and take such further actions as may be reasonably required or desirable to carry out the provisions hereof and the transactions contemplated hereby. 

10.2 Assignment. This Agreement may not be assigned or otherwise transferred by either Party without the consent of the other Party;
provided, however, that either Party may, without such consent, assign its rights and obligations under this Agreement (a) to an Affiliate in connection with a corporate reorganization, (b) in connection with a merger, consolidation
or sale of substantially all of such Party’s assets to an unrelated 

  
 13 

 
Third Party, or (c) the sale, transfer or other disposition of all or substantially all of the assets allocated to such Party’s division or business unit to which this Agreement
relates; provided, however, that the assigning Party’s rights and obligations under this Agreement shall be assumed in writing by its successor in interest in any such transaction. Any purported assignment in violation of this
Section 10.2 shall be void. 
 10.3 Force Majeure. If the performance of this Agreement or any obligation hereunder is
prevented, restricted or interfered with by reason of fire or other casualty or accident, strikes or labor disputes, terrorist acts, inability to procure raw materials, power or supplies, or other violence, any law, order, proclamation, regulation,
ordinance, demand or requirement of any government agency, or any other act or condition whatsoever beyond the control of a Party hereto, the Party so affected, upon giving prompt notice to the other Party, shall be excused from such performance to
the extent of such prevention, restriction or interference; provided, however, that the Party so affected shall use its best efforts to avoid or remove such causes of non-performance and shall continue
performance hereunder with the utmost dispatch whenever such causes are removed. 
 10.4 Severability. Each Party hereby agrees that
it does not intend to violate any public policy, statutory or common laws, rules, regulations, treaty or decision of any government agency or executive body thereof of any country or community or association of countries. Should one or more
provisions of this Agreement be or become invalid, the Parties hereto shall substitute, by mutual consent, valid provisions for such invalid provisions which valid provisions in their economic effect are sufficiently similar to the invalid
provisions that it can be reasonably assumed that the Parties would have entered into this Agreement with such valid provisions. In case such valid provisions cannot be agreed upon, the invalidity of one or several provisions of this Agreement shall
not affect the validity of this Agreement as a whole, unless the invalid provisions are of such essential importance to this Agreement that it is to be reasonably assumed that the Parties would not have entered into this Agreement without the
invalid provisions. 
 10.5 Notices. Any consent, notice or report required or permitted to be given or made under this Agreement by
one of the Parties hereto to another Party shall be in writing, delivered personally or by e-mail or facsimile (and promptly confirmed by first class mail), by a next business day delivery service of a
nationally recognized overnight courier service or by courier, postage prepaid (where applicable), addressed to such other Party at its address indicated below, or to such other address as the addressee shall have last furnished in writing to the
addressor in accordance with this Section 9.5 and shall be effective upon sending by the notifying Party in accordance with this Section 10.5. 

  
 14 

			
	If to SV	  	Shalon Ventures Inc.
		  	532 Emerson St.
		  	Palo Alto, CA 94301
		  	USA
		  	Attention: Chairman
		  	Telephone: 650-473-9190x199
		  	E-mail :teddy@shalon.com
	with a copy to:	  	Alan Mendelson
		  	Latham & Watkins
		  	135 Commonwealth Drive
		  	Menlo Park CA 94025
		  	+1 (650) 463-4693
		  	Alan.Mendelson@LW.com
	If to Licensee:	  	Expanders, Inc.
		  	532 Emerson St.
		  	Palo Alto, CA 94301
		  	U.S.A.
		  	Attention: Norm Sokoloff
		  	Telephone: 650-473-9190 x103
		  	E-mail: norm@shalon.com

 10.6 Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of
the State of California without regard to any choice of law principle that would dictate the application of the laws of another jurisdiction. 

10.7 Dispute Resolution. Any disputes, other than a claim for injunctive relief pursuant to Section 10.8 below, arising between
the Parties relating to, arising out of or in any way connected with this Agreement or any term or condition hereof, or the performance by any Party of its obligations hereunder, whether before or after termination of this Agreement, shall be
resolved by binding arbitration. In any such arbitration, SV shall not be represented by any SV Member who owns a substantial amount of equity in Licensee or is otherwise able to significantly influence Licensee’s management and governance
through participation as an officer, director, member, manager, stockholder or principal. 
 10.8 Injunctive Relief. The Parties
hereby acknowledge that certain breaches of this Agreement may cause irreparable harm and that the remedy or remedies at law for any such breach may be inadequate. The Parties hereby agree that, in the event of any such breach, in addition to all
other available remedies hereunder, the non-breaching Party or Parties shall have the right to obtain equitable relief to enforce this Agreement in any court of competent jurisdiction. 

10.9 Entire Agreement. This Agreement, together with the Exhibits hereto contain the entire understanding of the Parties with respect
to the subject matter hereof. All express or implied agreements and understandings, either oral or written, heretofore made are expressly merged in and made a part of this Agreement. This Agreement may be

  
 15 

 
amended, or any term hereof modified, only by a written instrument duly executed by the Parties hereto. Each of the Parties hereby acknowledges that this Agreement is the result of mutual
negotiation and therefore any ambiguity in its terms shall not be construed against the drafting Party. 
 10.10 Headings. The
captions to the several Articles and Sections hereof are not a part of this Agreement, but are merely guides or labels to assist in locating and reading the several Articles and Sections hereof. 

10.11 Independent Contractors. It is expressly agreed the Parties shall be independent contractors and that the relationship between
the Parties contemplated by this Agreement shall not constitute a partnership, joint venture or agency. 
 10.12 Waiver. Except as
expressly provided herein, the waiver by any Party hereto of any right hereunder or of any failure to perform or any breach by the other Party shall not be deemed a waiver of any other right hereunder or of any other failure to perform or breach by
said other Party, whether of a similar nature or otherwise, nor shall any singular or partial exercise of such right preclude any further exercise thereof or the exercise of any other such right. 

10.13 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. Counterparts may be exchanged by facsimile if mutually agreed by the Parties. 

10.14 Expenses. Each of the Parties hereto shall bear their own respective costs and expenses in connection with the negotiation,
execution and delivery of this Agreement and the transactions contemplated hereby and thereby. 
 10.15 Voluntary Act of Parties.
Each of the Parties hereto acknowledges that it is entering into the Agreement voluntarily and without coercion, that it has been represented by counsel of its choice throughout the negotiation of this Agreement, and that it fully understands that
terms and conditions of this Agreement. 
 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

  
 16 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly
authorized officers as of the Effective Date. 
  

			
	SHALON VENTURES Inc
		
	By:	 	 

		 	  

	Name:	 	Tadmor Shalon
	Title:	 	CEO
	
	EXPANDERS, INC.
		
	By:	 	 

		 	  

	Name:	 	Daniel Jacobs MD
	Title:	 	Vice President

  
 17 

 EXHIBIT A 

Licensed Patent Rights 
 U.S. provisional patent
application no. 60/ 612,018, filed September 21, 2004. 

  
 18

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