Document:

Exhibit
10.14

 

Redactions
with respect to certain portions hereof denoted with “***”

 

EXCLUSIVE
LICENSE AGREEMENT

 

between

 

THE
CLEVELAND CLINIC FOUNDATION

 

and

 

ANIXA
BIOSCIENCES, INC.

 

dated
as of 

 

October
20, 2020

 

    	 

    	Redactions with respect to certain portions hereof denoted with “***”

    

 

EXCLUSIVE
LICENSE AGREEMENT

 

This
Exclusive License Agreement (this “Agreement”) is made and entered into effective as of October 20, 2020 (the
“Effective Date”), by and between The Cleveland Clinic Foundation, a nonprofit Ohio corporation (“Licensor”),
and Anixa Biosciences, Inc., a Delaware corporation (“Licensee”).

 

RECITALS:

 

WHEREAS,
Licensor owns certain patents and/or patent applications pertaining to the use of vaccines for the treatment or prevention of
Ovarian Cancer and other types of cancers, which express the Anti-Mullerian Hormone Receptor 2 (AMHR2) protein, including an Anti-Mullerian
Hormone Receptor 2 containing an Extracellular Domain (AMHR2-ED) developed by Vincent K. Tuohy, Justin Johnson and Suparna Mazumder
(who are “Inventors” as defined below) that it believes should be developed and commercialized for the greater public
good; and

 

WHEREAS,
Licensor desires to grant to Licensee an exclusive license under such patents and/or patent applications in order to develop and
commercialize such technology, and Licensee desires such license and agrees to use commercially reasonable efforts to develop
and commercialize such technology, in each case subject to the terms, conditions and other provisions contained herein.

 

NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

Article
1

DEFINITIONS

 

1.1
Defined Terms. In addition to such terms as are defined elsewhere in this Agreement, the capitalized terms in this Agreement
shall have the following meanings:

 

“Action”
has the meaning set forth in Section 10.1.1.

 

“Affiliate”
as to any Person, means any other Person that, directly or indirectly through one or more intermediaries, is in control of, is
controlled by, or is under common control with, such Person. For purposes of this definition, “control” of a Person
means the power, directly or indirectly, either to (a) vote 50% or more of the securities having ordinary voting power for the
election of directors (or persons performing similar functions) of such Person or (b) direct or cause the direction of the management
and policies of such Person, whether by contract or otherwise.

 

“Agent”
has the meaning set forth in Section 23.3.

 

“Agreement”
has the meaning set forth in the Preamble.

 

“Annual
Update” has the meaning set forth in Section 4.2(b).

 

“Bankruptcy
Code” means Title 11 of the United States Code, as amended from time to time, or any similar federal or state law for
the relief of debtors.

 

“Change
in Control” of any Person means (a) a merger or consolidation of such Person, (b) a transaction or series of related
transactions in which any Person or group of persons within the meaning of § 13(d)(3) of the Securities Exchange Act of 1934,
becomes the beneficial owner, directly or indirectly, of fifty percent (50%) or more of the combined voting power of the outstanding
securities of such Person, or (c) the sale or other transfer to a third party of all or substantially all of such Person’s
assets related to the subject matter of this Agreement.

 

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“Confidential
Information” means all non-public, confidential or proprietary information of a party, or its Affiliates or Representatives,
that is disclosed directly or indirectly from or on behalf of the Disclosing Party to the Receiving Party, whether in oral, written,
electronic or other form or media, whether or not such information is marked, designated or otherwise identified as “confidential”
and that, due to the nature of its subject matter or circumstances surrounding its disclosure, would reasonably be understood
to be confidential or proprietary, including, without limitation, the Licensed Know-how and the terms and existence of this Agreement.

 

Confidential
Information does not include information that the Receiving Party can demonstrate by documentation or other evidence (i) was already
known to the Receiving Party without restriction on use or disclosure prior to the receipt of such information directly or indirectly
from or on behalf of the Disclosing Party; (ii) was independently developed by the Receiving Party without use of or reference
to the Disclosing Party’s Confidential Information; (iii) is or becomes generally known to the public or otherwise becomes
publicly available, other than through a breach of this Agreement by the Receiving Party; or (iv) is or was made available to
the Receiving Party on a non-confidential basis by a third party having the lawful right to do so without breaching any obligation
of confidentiality to the Disclosing Party.

 

“Cure
Period” has the meaning set forth in Section 4.1(b).

 

“Debarred”
has the meaning set forth in Section 23.3.

 

“Debtor
Relief Law” means the Bankruptcy Code and all other liquidation, bankruptcy, assignment for the benefit of creditors,
conservatorship, moratorium, receivership, insolvency, rearrangement, reorganization or similar debtor relief laws of the US or
other applicable jurisdictions in effect from time to time.

 

“Declaring
Party” has the meaning set forth in Section 9.2.2.

 

“Default”
means any of the events specified in Section 7.2, Section 7.4, or anywhere else in this Agreement, which results
in (a) Licensor having the right to terminate this Agreement or (b) automatic termination of this Agreement.

 

“Development
Plan” means the initial plan to be attached hereto as Exhibit A pursuant to Section 5.7, setting forth
the strategy and schedule for Licensee’s research, development and testing of Licensed Products, including the estimated
dates of initiation and completion of material development activities (to be performed by or on behalf of Licensee or Licensor)
leading to Regulatory Approval and commercial sale of Licensed Products, and thereafter any updates to the development plan as
provided by Licensee pursuant to Section 4.2.

 

“Development
Report” means a written account of Licensee’s progress under the Development Plan including the information specified
in Exhibit C to this Agreement.

 

“Disclosing
Party” has the meaning set forth in Section 8.1.

 

“Dispute”
has the meaning set forth in Section 9.2.1.

 

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“Earned
Know-how Royalty” has the meaning set forth in Section 3.2(b).

 

“Earned
Patent Royalty” has the meaning set forth in Section 3.2(a).

 

“Earned
Royalties” means, collectively, the Earned Patent Royalty and the Earned Know-how Royalty.

 

“Effective
Date” has the meaning set forth in the Preamble.

 

The
expression “expiration” and “expire”, when referring to a claim in a Licensed Patent means
any expiration, revocation, invalidation or other termination of a Licensed Patent incorporating the pending, issued or enforceable
claim.

 

“FDA”
has the meaning set forth in the definition of Regulatory Authority.

 

“Field
1” means vaccines for the prevention of Ovarian Cancer and other cancers, which express the Anti-Mullerian Hormone Receptor
2 (AMHR2) protein, including an Anti-Mullerian Hormone Receptor 2 protein with an extracellular domain (AMHR2-ED).

 

“Field
2” means vaccines for the therapeutic treatment of Ovarian Cancer and other cancers, which express the Anti-Mullerian
Hormone Receptor 2 (AMHR2) protein, including an Anti-Mullerian Hormone Receptor 2 protein with an extracellular domain (AMHR2-ED).

 

“Fields”
means, collectively, Field 1 and Field 2.

 

“First
Commercial Sale” means the first arms-length, non-clinical trial-related sale of a Licensed Product.

 

“Force
Majeure Event” has the meaning set forth in Section 4.1(b).

 

“GAAP”
means generally accepted accounting principles in the United States of America as in effect from time to time.

 

“Governmental
Authority” means the government of any nation or any political subdivision thereof, whether at the national, state,
territorial, provincial, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central
bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of,
or pertaining to, government.

 

“Indemnitee”
has the meaning set forth in Section 10.1.1.

 

“Infringement
Notice” has the meaning set forth in Section 6.4.1.

 

“Inventors”
means each person listed as an inventor on any Licensed Patent.

 

“Issue
Fee” has the meaning set forth in Section 3.1.

 

“Law”
means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement
or rule of law of any Governmental Authority or Regulatory Authority.

 

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“Licensed
Know-how” means any unpatentable or unpatented developments, proprietary knowledge, ideas, specifications, prototypes,
drawings, know-how, formulas, information, data, methods, processes, tools, designs, testing programs, expertise, concepts or
techniques, and similar knowledge not known by Licensee prior to Licensor disclosing such knowledge to Licensee, solely to the
extent that they are (a) pertinent to the Licensed Patents, (b) not subject to the exclusive rights of any third parties or research
sponsor restrictions, (c) (i) in existence, and known to the Inventor or members of his laboratory(ies), as of the Effective Date
or (ii) generated by or on behalf Licensor (solely or jointly with others) during the Term through the exercise of Licensor’s
retained rights under Section 2.4.1, including non-clinical and clinical data, and (d) applicable primarily within the
Fields, further described in Appendix A.

 

“Licensed
Know-how Product” means a product or part of a product in the Fields that is sold, transferred, or otherwise disposed
of in a jurisdiction where (i) a Licensed Patent has expired; (ii) patent protection is not pursued, but the product or part of
a product sold, transferred, or otherwise disposed of would be expected to infringe (with respect to Valid Claims of patent applications)
any Valid Claim; or (iii) that was derived from, utilizes, uses, is used, or made through use of, embodies, contains, incorporates
(in each case, in whole or in part), or uses any element of any of the Licensed Know-how.

 

“Licensed
Know-how Royalty Term” means, with respect to a particular Licensed Product in a particular country, the period of time
commencing on the First Commercial Sale of such Licensed Product in such country and ending on the *** of such First Commercial
Sale.

 

“Licensed
Patents” means the patents and patent applications listed on Appendix A, together with (a) all patents that issue
therefrom, and (b) and all corresponding foreign patents and patent applications thereof, together with all divisionals, continuations
(but excluding continuations-in-part), reissues, reexaminations, extensions or renewals of any of the foregoing having the same
priority date as the parent and listing at least one of the Inventors as inventors.

 

“Licensed
Patent Challenge” has the meaning set forth in Section 6.5(a).

 

“Licensed
Patent Royalty Term” means, with respect to a particular Licensed Product in a particular country, the period of time
commencing on the First Commercial Sale of such Licensed Product in such country and continuing through the date of expiration
of the last to expire Valid Claim of the Licensed Patents covering the sale of such Licensed Product in such country.

 

“Licensed
Patent Product” means any product or part of a product in the Fields the making, use, sale, offer to sell, or import
of which infringes or would be expected to infringe (with respect to Valid Claims of patent applications) a Valid Claim, but for
the license granted in this Agreement.

 

“Licensed
Product” means (i) a Licensed Patent Product; or (ii) a Licensed Know-how Product.

 

“Licensed
Technology” means, collectively, the Licensed Patents and the Licensed Know-How.

 

“Licensee”
has the meaning set forth in the Preamble.

 

“Licensor”
has the meaning set forth in the Preamble.

 

“Losses”
means all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines,
costs or expenses of whatever kind, including reasonable attorneys’ fees and the cost of enforcing any right to indemnification
hereunder and the cost of pursuing any insurance providers.

 

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“Major
Market” has the meaning set forth in Section 4.1(a).

 

“Net
Sales” means the total gross amount of monies or cash equivalent or other consideration paid or payable to Licensee
or any Sublicensee for sales of Licensed Products less the sum of the following amounts, without duplication: ***.

 

For
non-cash and partial-cash sales, the applicable Licensed Product shall be considered sold at the fair market value of the consideration
received. For sales not at arms-length, Net Sales shall be equal to the fair market price of such Licensed Products as when transferred
in comparable arms-length transactions.

 

In
the event that Licensed Products are used by Licensee or Sublicensees for demonstration or marketing purposes rather than sold,
the Parties shall agree upon an appropriate Net Sales price, if at all applicable based upon the nature and circumstance regarding
the demonstration or marketing purposes, for each such use. Further, any transfer or use of a Licensed Product for clinical trials
or compassionate use will not be deemed a sale for purposes of calculating Net Sales.

 

For
the purposes of calculating Net Sales, all calculations of Net Sales shall be in accordance with GAAP and based on, or valued
as if based on, bona fide arms’ length transactions and not on any bundled, loss-leading or other blended or artificial
selling or transfer price.

 

Net
Sales shall not include Sublicensing Revenue.

 

Where
Licensed Products are not sold, but are otherwise transferred or disposed of, the Net Sales amount of such Licensed Product for
the purposes of computing the Earned Royalty shall be the average Net Sales price at which Licensed Products, sold in similar
quantities and similar locations, are then currently being offered for sale by Licensee or its Sublicensees. Where such products
are not then currently being offered for sale by Licensee or a Sublicensee, the Net Sales price of products otherwise disposed
of, for the purpose of computing the Earned Patent Royalty and the Earned Know-how Royalty, shall be the average selling price
at which products of similar kind and quality, sold in similar quantities and similar locations, are then currently being offered
for sale by other manufacturers.

 

In
the event that a Licensed Product is sold together with one or more products or services that are not Licensed Products for a
single price (a “Combination”), the gross amount invoiced for such Licensed Product for purposes of calculating
Net Sales shall be calculated by multiplying the gross amount invoiced for such Combination by the fraction A/(A+B), where “A”
is the gross amount invoiced for such Licensed Product sold separately and “B” is the gross amount invoiced for such
other product(s) or service(s) sold separately. In the event that such Licensed Product or such other product(s) or service(s)
are not sold separately, the portion of the gross amount invoiced for such Combination that is attributable to Net Sales for purposes
of royalty determination shall be mutually agreed by the Parties in good faith based upon the relative value of the Licensed Product
and the other product(s) or service(s) included in the Combination.

 

The
expression “transferred or otherwise disposed of” means (y) not sold but delivered, directly or indirectly,
by Licensee or Sublicensees to others (including deliveries for export), regardless of any return or exchange consideration; or
(z) exploited or otherwise used by Licensee or Sublicensees for any purpose other than routine testing of such Licensed Products.

 

“Notice”
has the meaning set forth in Section 9.2.2.

 

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“Patenting
Costs” means any and all reasonable, documented, out-of-pocket costs and expenses, including without limitation government
fees and attorneys’ fees and costs, of preparing, filing, prosecuting, issuing and maintaining any of the Licensed Patents,
including continuations, extensions, re-examinations, reissues and appeals.

 

“Patent
Reimbursement Amount” has the meaning set forth in Section 6.2.1.

 

“Person”
means any individual, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company,
or other legal entity of any kind, foreign or domestic.

 

“Phase
I Clinical Trial” means an FDA (or other foreign regulatory authority) approved dose escalating safety study with respect
to a Licensed Product.

 

“Phase
II Clinical Trial” means a human clinical study of a Licensed Product, the principal purpose of which is a determination
of safety and efficacy in the target patient population, as described in 21 C.F.R. 312.21(b), or a similar human clinical study
prescribed by the Regulatory Authority in a country other than the United States. Phase II Clinical Trial also includes the portion
of any human clinical study that meets the foregoing definition, as in the case of a study designated as a “Phase I/II”
clinical trial.

 

“Phase
III Clinical Trial” means a human clinical study of a Licensed Product, the design of which is acknowledged by the FDA
to be sufficient for such clinical study to satisfy the requirements of 21 C.F.R. 312.21(c), or a similar human clinical study
prescribed by the Regulatory Authority in a country other than the United States. Phase III Clinical Trial also includes (a) the
portion of any human clinical study that meets the foregoing definition, as in the case of a study designated as a “Phase
II/III” clinical trial, and (b) any other human clinical study serving as a pivotal study from which the data are actually
submitted to the applicable Regulatory Authority in connection with an application for Regulatory Approval, whether or not such
study is expressly designated as a “Phase III” clinical trial.

 

“Product
Report” has the meaning set forth in Section 5.3.

 

“Quarterly
Period” means each three-month period commencing on January 1, April 1, July 1 and October 1.

 

“Receiving
Party” has the meaning set forth in Section 8.1.

 

“Regulatory
Approval” means any approvals (including supplements, amendments, pre- and post-approvals and price approvals), licenses,
registrations or authorizations, howsoever called, of any Regulatory Authority, which are necessary for the distribution, importation,
exportation, manufacture, production, use, storage, transport or clinical testing and/or sale of a Licensed Product in a regulatory
jurisdiction.

 

“Regulatory
Authority” means the United States Food and Drug Administration (“FDA”) or any counterpart of the
FDA outside the United States, or other national, supra-national, regional, state or local regulatory agency, department, bureau,
commission, council, ethics committee, review board or other entity with authority over the distribution, importation, exportation,
manufacture, production, use, storage, transport or clinical testing and/or sale of a Licensed Product.

 

“Regulatory
Filings” means any filings, and all data contained therein, as may be required by the FDA or equivalent foreign Regulatory
Authorities for the development, manufacture or commercialization of a Licensed Product hereunder.

 

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“Representatives”
means a party’s employees, officers, directors, consultants and legal advisors.

 

“Reserved
Interests” has the meaning set forth in Section 2.7.

 

“Responsible
Officer” with respect to any Person, means the chief executive officer, president or chief financial officer of such
Person.

 

“Review
Period” has the meaning set forth in Section 2.4.2.

 

The
terms “sale”, “sold” and “sell” as used in this Agreement include without
limitation sales, leases, licenses, rentals and other modes of distribution or transfer of a product or its beneficial use. Licensed
Products will be considered sold when delivered or invoiced, whichever occurs first.

 

“Sublicense”
shall mean an agreement in which Licensee (a) sublicenses any of the rights licensed to Licensee hereunder, (b) agrees not to
assert such rights or to sue, prevent or seek a legal remedy for the practice of same, or (c) is under an obligation to grant,
assign or transfer any such rights or non-assertion, or to forebear from granting or transferring such rights to any other entity.
Agreements expressly considered Sublicenses includes without limitation licenses, option agreements, or similar agreements, to
the extent that the rights granted therein relate to the rights licensed to Licensee hereunder.

 

“Sublicense
Fees” has the meaning set forth in Section 3.4.

 

“Sublicensee”
shall mean any non-Affiliate third party to whom Licensee has granted a Sublicense.

 

“Sublicensing
Revenue” shall mean any and all consideration received by Licensee from sublicensing any of the rights granted to it
under Section 2.1 of this Agreement, including without limitation cash and cash equivalents, license issue fees and other
licensing fees, option fees, milestone payments, or other payments of any kind, but excluding royalties on sales of Licensed Products
and minimum annual royalties.

 

“Taxes”
means any and all present or future income, stamp or other taxes, levies, imposts, duties, deductions, charges, fees or withholdings
imposed, levied, withheld or assessed by any Governmental Authority, together with any interest, additions to tax or penalties
imposed thereon and with respect thereto.

 

“Term”
has the meaning set forth in Section 7.1.

 

“Territory”
means worldwide.

 

“Valid
Claim” means any pending or issued claim of any Licensed Patent that has not been admitted by Licensor or otherwise
caused to be invalid or unenforceable through reissue, disclaimer or otherwise, or held invalid or unenforceable by a Governmental
Authority of competent jurisdiction from whose judgment no appeal is allowed or timely taken.

 

1.2
Interpretation.

 

(a)
For purposes of this Agreement: (i) the words “include,” “includes” and “including” shall
be deemed to be followed by the words “without limitation”; (ii) the word “or” is not exclusive; and (iii)
the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer
to this Agreement as a whole.

 

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(b)
In the computation of periods of time from a specified date to a later specified date, the word “from” means “from
and including;” the words “to” and “until” each mean “to but excluding;” and the word
“through” means “to and including.”

 

(c)
The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Unless the context
otherwise requires, references herein: (i) to Sections, Appendices and Exhibits refer to the Sections, Appendices and Exhibits
attached to, this Agreement; (ii) to an agreement, instrument or other document means such agreement, instrument or other document
as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof; and (iii) to a statute
means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated
thereunder. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation
against the party drafting an instrument or causing any instrument to be drafted. Any Appendices and Exhibits referred to herein
shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.

 

(d)
All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data
required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP as in effect from time to time.

 

Article
2

GRANT;
SUBLICENSING

 

2.1
License Grant.

 

(a)
Subject to the terms and conditions of this Agreement, Licensor hereby grants to Licensee (i) the exclusive worldwide (as to the
countries for which patent protection is sought) license, with the right to grant and authorize Sublicenses as set forth below,
under the Licensed Patents to make, have made, use, offer to sell, sell and import Licensed Products in the Fields in the Territory,
and (ii) a non-exclusive worldwide license, with the right to grant and authorize Sublicenses as set forth below, to use or practice
the Licensed Know-How to make, have made, use, offer to sell, sell and import Licensed Products in the Fields in the Territory.

 

(b)
Licensor shall, within *** after the Effective Date, disclose the Licensed Know-how to Licensee in accordance with Article
12. Licensee acknowledges and agrees that the Licensed Know-how is considered Confidential Information and has independent
value and will provide Licensee with a competitive advantage and/or commercial value. Licensed Know-how includes *** and other
information as described in Appendix A. In addition, Licensor shall (i) disclose to Licensee all Licensed Know-how generated during
the Term, including non-clinical and clinical data, within *** after such Licensed Know-how is generated, in an electronic format
reasonably acceptable to Licensee, and (ii) obtain such consents from third parties as may be necessary to make such disclosures
to Licensee, including informed consents from subjects participating in clinical trials, as applicable. For clarity, clinical
data delivered in accordance with the preceding sentence shall include raw data and case report forms.

 

2.2
Sublicensing.

 

(a)
Licensee may sublicense the rights granted to it under Section 2.1, ***, so long as, ***, (w) ***, (x) this Agreement has
not been terminated, (y) Licensee is not in breach of its obligations hereunder (or there is not otherwise a continuing Default),
and (z) the following criteria are satisfied:

 

(i)
the Sublicense is in writing;

 

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(ii)
***;

 

(iii)
***; and

 

(iv)
***.

 

(b)
***.

 

(c)
***.

 

(d)
***.

 

(e)
Licensee will provide Licensor with (i) a fully signed, copy of each Sublicense granted by Licensee under this Agreement and any
amendments thereto, including all exhibits, attachments and related documents, within *** of executing the same, (ii) a copy of
all reports provided to Licensee by Sublicensees during the term of the Sublicense on a quarterly basis; and (iii) notification
of the termination of any Sublicense, in each case, which information will be Licensee’s Confidential Information. Notwithstanding
any Sublicense, Licensee shall remain primarily liable to Licensor for all of Licensee’s duties and obligations contained
in this Agreement, including, without limitation, the payment of all Earned Royalties due hereunder. Any act or omission of a
Sublicensee that would be a breach of this Agreement if committed or omitted by Licensee will be a breach by Licensee.

 

2.3
Government Rights. Notwithstanding anything herein to the contrary, any and all provisions contained herein, (including
without limitation, the licenses and other rights granted hereunder and all representations and warranties of Licensor) are limited
by and subject to the rights and requirements of the United States Government that may attach as a result of U.S. Government sponsorship,
in any way, of research at Licensor in which one or more invention covered by the Licensed Patents was conceived or first actually
reduced to practice, as set forth in 35 U.S.C. §§200-206, 37 C.F.R. Part 401 and in the relevant Government research
contracts with Licensor, and as such rights and requirements may be amended or modified by Law. To the extent applicable, such
rights and requirements include without limitation (i) the grant of a nonexclusive, nontransferable, irrevocable, paid-up license
to practice or have practiced for or on behalf of the U.S. Government any of the Licensed Patents throughout the world (as set
forth in 35 U.S.C. §202(c)(4)), and (ii) the requirement that Licensed Products used or sold in the United States will be
manufactured substantially in the United States (as set forth in 35 U.S.C. §204) (provided that if Licensee seeks a waiver
to manufacture Licensed Products outside of the United States, Licensor will reasonably cooperate at Licensee’s cost and
expense, where applicable).

 

2.4
Retained Rights; Requirements.

 

2.4.1
Research Use Right. Any and all licenses granted hereunder are subject to the right of Licensor, on behalf of itself and
its investigators, to practice and use the Licensed Patents and the subject matter described and/or claimed therein, and to permit
others at academic, government, and not-for-profit institutions to practice and use the Licensed Patents and the subject matter
described and/or claimed therein, for its and their own research (including without limitation, pre-clinical, non-clinical and
clinical research), testing, educational, internal or patient-care purposes. For avoidance of any doubt, any research previously
performed, currently being performed, or performed in the future by Licensor, at Licensor’s facilities or using Licensor’s
resources, or that Licensor or Inventor is in any way related to (whether as Principal Investigator, sponsor or otherwise) is
subject to the retained rights in this Section 2.4.1 (the “Permitted Research”). Permitted Research
includes, without limitation, any research activities of Licensor or Inventors (while an employee of Licensor) that are funded
in whole or in part by any Governmental Authorities or any philanthropic or similar sources. For clarity, Licensor agrees and
acknowledges that this Section 2.4.1 does not give Licensor the right to practice or use the Licensed Technology in connection
with the commercial sale of any product or service.

 

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2.4.2
Right to Publish. Licensee recognizes and accepts the importance of communicating medical study and scientific data and
the necessity of conveying such information in a timely manner, and, therefore, encourages their publication in reputable scientific
journals and at seminars or conferences, even if such publication includes Licensed Know-how. Licensee further recognizes and
accepts that under Licensor’s mission as an academic medical center, Licensor and its investigators must have a meaningful
right to publish without Licensee’s approval or editorial control. Licensor shall submit to Licensee for its review a copy
of any proposed manuscript *** prior to the estimated date of submission for publication. Within *** of receiving such manuscript
(the “Review Period”), if Licensee reasonably determines that the proposed publication contains patentable
subject matter which requires protection for Licensee, Licensee may require the delay of publication for a period of time not
to exceed *** for the purpose of filing patent applications. Further, Licensor and its investigators agree to remove from the
proposed publication anything that Licensee identifies within the Review Period as Licensee’s Confidential Information.
If no written response is received from Licensee within the Review Period, it may be conclusively presumed that publication may
proceed without delay. For avoidance of any doubt, Licensor and Inventor (while an employee of Licensor) retain the right to publish
any medical study or scientific data arising from the Permitted Research, subject to compliance with this Section 2.4.2.

 

2.5
Regulatory Affairs.

 

(a)
Licensor hereby grants Licensee, and its Affiliates and Sublicensees, a “right of reference,” as that term is defined
in 21 C.F.R. § 314.3(b), or a comparable right existing under the Laws of any other jurisdiction, to any Regulatory Filings
owned or otherwise controlled by Licensor or its Affiliates to the extent relating to the research, development, manufacture or
commercialization of a Licensed Product in the Fields in the Territory, and, upon request, shall promptly provide a signed statement
to such effect in accordance with 21 C.F.R. §314.50(g)(3) or the Laws of any other jurisdiction.

 

(b)
Licensee shall have the right to audit any clinical data included in the Licensed Know-how (“Licensed Clinical Data”)
for accuracy and completeness, upon at least *** prior written notice, at Licensee’s sole expense, including but not limited
to any incidental costs incurred by Licensor as a result of any such audit. If a Regulatory Authority requests that Licensee provide
additional information regarding any Licensed Clinical Data, then the parties shall discuss the scope of such request and, if
the requested information is owned or otherwise controlled by Licensor, Licensor shall provide such information to Licensee in
a reasonable amount of time and cooperate with Licensee in responding to such request.

 

(c)
Licensor shall provide Licensee with prompt written notice of an impending inspection by a Regulatory Authority relating to the
Licensed Clinical Data and the results of such inspection, including any FDA Form 483 notices (or similar notices of other Regulatory
Authorities). Further, if a Regulatory Authority makes any finding that impacts or could reasonably be expected to impact the
Licensed Clinical Data, then Licensor shall provide Licensee with prompt written notice thereof and solicit (and reasonably consider)
Licensee’s feedback regarding any plan for remedial action.

 

(d)
Licensor does not represent or warrant that any Licensed Clinical Data was created in accordance with or pursuant to any requirements
under the C.F.R, or any comparable Laws of any jurisdiction. Furthermore, Licensor does not represent or warrant that any Licensed
Clinical Data was created for submission to any Governmental Authority.

 

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2.6
No Grant of Other Technology or Patent Rights. Except as otherwise expressly provided in this Agreement, under no circumstances
shall Licensee, as a result of this Agreement obtain any ownership interest or license in or other right to any technology, know-how,
patents, patent applications, products, or materials of Licensor, including items owned, controlled or developed by Licensor,
at any time pursuant to this Agreement. This Agreement does not create, and shall under no circumstances be construed or interpreted
as creating, an obligation on the part of Licensor to grant any license to Licensee other than as expressly set forth herein.
Any further contract or license agreement between the parties shall be in writing.

 

2.7
Reserved Rights. All rights and interests of Licensor not expressly granted to Licensee are reserved by Licensor (the “Reserved
Interests”) for itself, its Affiliates and partners (other than Licensee) and other licensees and Sublicensees, including
the rights to use and grant licenses under the Licensed Patents or any other technology owned or controlled by Licensor to make,
have made, use, offer to sell, sell, have sold and import products (other than Licensed Products within the Fields for so long
as Licensee has an exclusive license to Licensed Products within the Fields under this Agreement). It shall not be a breach of
this Agreement for Licensor, acting directly or indirectly, to exploit its Reserved Interests in any manner anywhere in the Territory,
whether or not such activity is competitive with the activities of Licensee, including the research, development and commercialization
or licensing of others to research, develop and commercialize products (other than Licensed Products within the Fields for so
long as Licensee has an exclusive license under the Licensed Patents to develop and commercialize products within the Fields under
this Agreement), including products that potentially compete in the same product market as a Licensed Product); provided that
the foregoing shall not be construed to be a grant of any license, implied or otherwise, by Licensee to Licensor or to permit
Licensor to breach the confidentiality provisions of this Agreement.

 

Article
3

FINANCIAL
CONSIDERATION

 

3.1
Issue Fee. In consideration of its license to the Licensed Technology hereunder, Licensee shall pay to Licensor a non-refundable,
non-creditable license fee in an amount equal to *** dollars ($***) (the “Issue Fee”), payable to Licensor
***.

 

3.2
Earned Royalties.

 

(a)
In consideration of its license to the Licensed Patents hereunder, Licensee shall pay to Licensor a quarterly royalty equal to
*** of the Net Sales (the “Earned Patent Royalty”) of a particular Licensed Product sold, transferred or otherwise
disposed of in a particular country where a Valid Claim exists covering the sale of such Licensed Product in such Country during
the Licensed Patent Royalty Term for such Licensed Product in such country.

 

(b)
In consideration of its license to the Licensed Know-how hereunder, Licensee shall pay to Licensor a quarterly royalty equal to
*** of the Net Sales (the “Earned Know-how Royalty”) of a particular Licensed Product sold, transferred or
otherwise disposed of in a particular country where no Valid Claim exists covering the sale of such Licensed Product in such country
during the Licensed Know-how Royalty Term for such Licensed Product in such country. For avoidance of doubt, during the Licensed
Know-how Royalty Term for a particular Licensed Product in a particular country, Earned Know-how Royalties shall be payable in
respect of sales of such Licensed Product in such country if there are no Valid Claims covering the sale of such Licensed Product
in such country.

 

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(c)
The Earned Patent Royalty and the Earned Know-how Royalty shall not be cumulative, such that only one Earned Royalty (i.e.,
the Earned Patent Royalty or the Earned Know-how Royalty, as applicable) will be payable with respect to any Licensed Product
sold during the Term. For avoidance of doubt, all sales, transfers or other dispositions of Licensed Products during the Term
(other than any transfer or use of a Licensed Product for clinical trials or compassionate use) shall result in an Earned Royalty
being due and payable hereunder. Accordingly, (i) if the sale, transfer or other disposition of a Licensed Product occurs during
the Term and in a country in which a Valid Claim exists at the time of such sale, transfer or other disposition, then such sale,
transfer or other disposition shall result in an Earned Patent Royalty payment obligation, and (ii) if the sale, transfer or other
disposition of a Licensed Product occurs during the Term and in a country in which no Valid Claim exists at the time of such sale,
transfer or other disposition (whether because patent protection was not sought or because all Valid Claims in such country have
expired or otherwise), then such sale, transfer or other disposition shall result in an Earned Know-how Royalty payment obligation.

 

3.3
Annual Maintenance Fee. In consideration of its license to the Licensed Technology hereunder, for the first calendar year
beginning after the Effective Date and each subsequent calendar year thereafter, but before the year of the First Commercial Sale,
Licensee shall pay to Licensor an “Annual Maintenance Fee” in the amount of $***. The first Annual Maintenance
Fee shall be due and payable on or before January 15, 2025, and thereafter Licensee shall pay the Annual Maintenance Fee to Licensor
within *** of the end of each calendar year for which an Annual Maintenance Fee is required. The Annual Maintenance Fee shall
be fully creditable against any Milestone Payment received for such calendar year.

 

3.4
Sublicense Fees. In consideration of its license to the Licensed Technology hereunder, Licensee shall pay to Licensor sublicense
fees (“Sublicense Fees”) for any Sublicense executed by the milestone and in an amount equal to a percent of
Sublicensing Revenue, in each case identified in the table below. Consideration received by Licensee as Sublicensing Revenue in
the form of equity or other securities shall be paid to Licensor in kind, and consideration received as Sublicensing Revenue in
the form of goods shall be paid to Licensor in cash based upon the fair market value of such goods received.

 

 

	Milestone	 	Sublicense
    Rate
	***	 	***
	***	 	***
	***	 	***
	***	 	***

 

For
purposes of this Section 3.4, ***.

 

3.5
Minimum Annual Royalty.

 

(a)
In consideration of its license to the Licensed Technology hereunder, Licensee shall pay to Licensor a minimum annual royalty
(each, a “MAR”) with respect to all Licensed Products, as set forth in the table below:

 

	Year	 	MAR
	***	 	***
	***	 	***
	***	 	***
	***	 	***

 

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(b)
Each year’s MAR payment shall be due and payable within *** following the end of the calendar year to which it applies (e.g.,
***). If the total amount of Earned Royalties paid during any calendar year exceeds the MAR for such calendar year, then Licensee
shall have no MAR payment obligation for such calendar year. In no event will the MAR be pro-rated for any partial calendar year.
The MAR shall be fully creditable against any Milestone Payment received for such calendar year.

 

3.6
Product Development Milestone Payments. In consideration of its license to the Licensed Technology hereunder, Licensee
shall pay to Licensor the following payments (each, a “Milestone Payment”) within *** of the completion or
occurrence of each Milestone Activity with respect to a Licensed Product:

 

	Amount	 	Milestone
    Activity
	***	 	***
	***	 	***
	***	 	***

 

For
purposes of this Agreement, ***.

 

3.7
Payment Terms.

 

(a)
Licensee shall pay all Earned Royalties and Sublicense Fees for each Quarterly Period within *** of the end of such Quarterly
Period. Licensee shall make all payments under this Agreement in US dollars. If any payments required hereunder are not received
by Licensor on the date the same has become due and payable, Licensee shall pay to Licensor interest on the overdue undisputed
payment from the date such payment was due to the date of actual payment at a rate of ***, or if lower, the maximum amount permitted
under applicable Law.

 

(b)
Earned Royalties, MAR payments, Milestone Payments, Sublicense Fees and all other sums payable by Licensee under this Agreement
shall be made free and clear of and without deduction or withholding for any Taxes except as required by applicable Law. If Licensee
is required by applicable Law to deduct or withhold any Taxes from such payments, then: (i) the amount payable by Licensee shall
be increased so that after all such required deductions or withholdings are made (including deductions or withholdings applicable
to additional amounts payable under this Section), Licensor receives an amount equal to the amount it would have received had
no such deduction or withholding been made; and (ii) Licensee shall make such deductions or withholdings and timely pay the full
amount deducted or withheld to the relevant Governmental Authority in accordance with applicable Law. As soon as practicable after
any payment of Taxes by Licensee to a Governmental Authority pursuant to this Section, Licensee shall deliver to Licensor the
original or certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the relevant
return reporting such payment or other evidence of such payment reasonably satisfactory to Licensor.

 

(c)
For the purpose of converting the local currency in which any royalties or other payments arise into US dollars, the rate of exchange
to be applied shall be the rate of exchange in effect on the last business day of the calendar quarter to which the payment relates
as reported in the Wall Street Journal.

 

(d)
If at any time any payment made by Licensee under this Agreement is rescinded or must otherwise be restored or returned upon the
insolvency, bankruptcy or reorganization of Licensee or otherwise, Licensee’s obligation to make such payment shall be reinstated
as though such payment had not been made.

 

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3.8
Royalty Stacking. If Licensee determines that it is necessary that Licensee obtain a license from any third party (“Third
Party License”) in order to avoid infringing that third party’s intellectual property rights in the manufacture,
use, sale and/or importation of the Licensed Products, the royalty rate paid to Licensor shall be reduced by *** of the royalty
rate paid for such additional patent or intellectual property rights (i.e. ***); provided, however, that in no event
shall the royalty rate paid to Licensor be less than *** for Licensed Patent Products or *** for Licensed Know-how Products. Upon
request, Licensee will promptly provide to Licensor reasonable documentation supporting the determination contemplated by this
Section, provided that Licensee will not be required to disclose information subject to the attorney-client privilege.

 

This
Section applies only to any prospective earned royalty payable to third parties for rights required to permit Licensee to make,
use, offer to sell, sell and import the Licensed Product as provided in this Agreement, and no deduction of any Earned Royalty
is allowed for payments to any third party of lump sum license fees, milestone payments, minimum annual royalties in excess of
accrued royalties, any amounts paid for past infringement of any third-party’s rights or any amount not paid for rights
required to permit Licensee to make, use, offer to sell, sell and import the Licensed Product as provided in this Agreement.

 

Article
4

COMMERCIALIZATION
AND DEVELOPMENT COVENANTS

 

4.1
Commercialization and Development Milestones.

 

(a)
Licensee agrees to use commercially reasonable efforts to ***. In furtherance of, and without limiting, the foregoing, Licensee
agrees to cause the occurrence of each of the following milestones (each, a “Milestone”) by the corresponding
milestone date (each, a “Milestone Date”):

 

	Milestone	 	Milestone
    Date
	***	 	***
	***	 	***
	***	 	***
	***	 	***
	***	 	***
	***	 	***
	***	 	***

 

When
Licensee completes a Milestone by the applicable Milestone Date, it will provide Licensor with written notice of the achievement
of the Milestone within *** of such completion, together with documentation evidencing such achievement. Any efforts of Licensee
or its Affiliates and Sublicensees, or of Licensor or its Affiliates, will be deemed to be the efforts of Licensee for purposes
of satisfying the obligations of this Section 4.1.

 

For
purposes of this Section 4.1, ***.

 

(b)
***.

 

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(c)
***.

 

4.2
Updates.

 

(a)
Not later than July 31 of each year prior to the First Commercial Sale, Licensee shall deliver a Development Report to Licensor.

 

(b)
Not later than July 31 of each year prior to the First Commercial Sale, Licensee will provide to Licensor an update on the activities
described in the Development Plan, in form and substance reasonably acceptable to Licensor in its reasonable discretion, describing
in reasonable detail the material activities to be undertaken during the next *** and the estimated timing of such activities,
including the estimated dates of the initiation and completion of such activities and a summary of Licensee’s material product
development activities since the prior Annual Update (the “Annual Update”). Licensee’s obligation to
provide Licensor with Annual Updates will continue for a Licensed Product until the First Commercial Sale of such Licensed Product.
All such Development Reports and Annual Updates under this Section 4.2 shall be deemed Licensee’s Confidential Information.

 

(c)
During the Term, Licensor shall promptly deliver to Licensee copies of such periodic reports that Licensor provides to the Department
of Defense or other source of grant funding in connection with the development of Licensed Products (including progress reports
and financial reports) and shall promptly provide Licensee with copies of all material correspondence with any such source of
grant funding relating to the development of Licensed Products.

 

4.3
Regulatory Approval. Licensee and its Affiliates and Sublicensees will be solely responsible, at their sole cost and expense,
for making all Regulatory Filings and securing all Regulatory Approvals, except to the extent performed by Licensor in accordance
with Section 2.4.1. Licensee will provide notice to Licensor of the submission of all Regulatory Filings (including amendments
to prior filings and correspondence related to any such filings) to Licensor within *** following the submission thereof. Licensee
will provide copies of all Regulatory Approvals to Licensor within *** following the receipt thereof. Licensor will provide reasonable
cooperation through providing Licensee, upon Licensee’s written request and in a timely fashion, with all documentation
and information reasonably necessary to secure such Regulatory Approval, to the extent such documentation and information is in
Licensor’s possession and not subject to any confidentiality or non-disclosure obligations.

 

Article
5

ADDITIONAL
COVENANTS; CLOSING CONDITIONS

 

5.1
Books and Records. Licensee will maintain documentation detailing Licensee’s efforts to develop Licensed Products
for commercial sale in the Fields in the Territory, and thereafter will maintain accurate records detailing all commercial sales
of Licensed Products. Such documentation may include invoices for studies advancing development of Licensed Products, laboratory
notebooks, internal job cost records, filings made to the Internal Revenue Service to obtain tax credit, if available, for research
and development of Licensed Products, records relating to obtaining Regulatory Approval, and sales records of Licensee or Sublicensees.
Such books and records will be preserved for a period not less than *** after they are created during and after the Term.

 

5.2
Financial Audit. Upon reasonable notice and during regular business hours, Licensee will allow Licensor or its designee,
at Licensor’s sole expense, to review (and audit) all books and records, including financial records, and inspect Licensee’s
research and development facilities, in each case solely to verify the accuracy of Licensee’s Development Reports and Product
Reports and Licensee’s compliance with its obligations, covenants and agreements under this Agreement; provided that Licensor
will conduct such audit no more than ***, upon reasonable notice, in a manner that does not interrupt Licensee’s operations,
and not later than *** following the rendering of any such records pursuant to Section 5.1. Licensee shall also use commercially
reasonable efforts to obtain a comparable right for Licensee to audit any Sublicensees, and, in the event Licensee obtains such
right, shall perform a comparable audit of a Sublicensee and provide Licensor a summary of such audit upon Licensor’s written
request. Should any of the foregoing examinations reveal an underpayment, then Licensee shall immediately pay to Licensor the
underpaid amount, plus interest in the amount provided for in Section 3.6 (Payment Terms). Further, if such underpayment
exceeds *** of the amount paid by Licensee to Licensor in the previous calendar year under this Agreement, then Licensee shall
bear the reasonable out-of-pocket cost of such audit, including accountants’ and attorneys’ fees and expenses, and
shall immediately reimburse Licensor for all such costs incurred by Licensor.

 

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5.3
Product Reports. Commencing in the Quarterly Period in which the First Commercial Sale occurs, within *** of the end of
each Quarterly Period, Licensee shall deliver to Licensor a complete and accurate product report (each, a “Product Report”),
giving such particulars of the business conducted by Licensee and Sublicensees during the preceding Quarterly Period under this
Agreement as shall be pertinent to a royalty accounting hereunder. Without limiting the generality of the foregoing, the Product
Reports shall be in substantially the form of Exhibit B attached hereto and include at least the following on a Licensed
Product-by-Licensed Product basis: ***

 

Upon
termination of this Agreement, Product Reports accompanied by any applicable Earned Royalties and Sublicense Fees shall continue
to be due until a final Product Report is submitted, which shall be due within *** following the termination of this Agreement.
All Product Reports shall be deemed Licensee’s Confidential Information.

 

5.4
Compliance Certificate. Together with each Product Report, Licensee shall deliver a duly executed compliance certificate
from a Responsible Officer stating that (a) all such reports are true, accurate and correct in all material respects, (b) Licensee
during such period has observed and performed all of the covenants and other agreements, and satisfied every condition contained
in this Agreement to be observed, performed or satisfied by it, and that there has not occurred any Default except as specified
in such certificate.

 

5.5
Affirmative and Negative Covenants. During the Term, Licensee shall:

 

(a)
not take any action, or omit to take any action, if in the reasonable judgment of Licensor such act or omission has had, or could
reasonably be expected to have, an adverse impact upon or to the brand, name, goodwill or image of Licensor;

 

(b)
not use, practice, commercialize or otherwise exploit the Licensed Technology outside the Fields, excluding Licensed Know-how
that becomes generally known to the public or otherwise becomes publicly available, other than through a breach of this Agreement
by Licensee;

 

(c)
comply with all Laws applicable to the conduct of Licensee’s business and activities related to developing, manufacturing,
marketing, offering for sale, selling, importing and exporting Licensed Products.

 

5.6
Notices. Licensee shall promptly give notice to Licensor of:

 

(a)
the occurrence of the First Commercial Sale; and

 

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(b)
the occurrence of any Default.

 

5.7
Development Plan. Licensee shall provide to Licensor a copy of a Development Plan within *** of execution of this Agreement,
with an update prior to initiation of formal preclinical IND (as defined in Section 4.1) enabling toxicology studies, which
shall be attached hereto as Exhibit A, which Development Plan shall be deemed to be Licensee’s Confidential Information.

 

Article
6

PATENT
PROSECUTION; INFRINGEMENT

 

6.1
Patent Prosecution. Licensor shall have exclusive responsibility for the preparation, filing, prosecution, issuance and
maintenance of the Licensed Patents, using counsel reasonably acceptable to Licensee. Licensor shall keep Licensee informed
of patent prosecution, shall keep Licensee reasonably informed and copied on all correspondence, shall provide Licensee with copies
of all prosecution documentation (including office actions and draft patent applications) reasonably in advance of applicable
deadlines such that Licensee has a reasonable opportunity to review and comment, will consider Licensee’s comments and suggestions
prior to taking material actions for the same, and will take all prosecution actions reasonably recommended by Licensee that would
expand the scope of rights sought. The parties shall reasonably cooperate with each other to insure that each Licensed Patent
reflects and will reflect, to the extent practicable and to the best of Licensee’s knowledge, all items of commercial interest
to Licensee. Licensor shall notify Licensee at least *** prior to any deadline if it intends to abandon, or otherwise elect to
forego its rights in, any Licensed Patents and Licensee shall have the right (but not the obligation) to assume control of the
preparation, filing, prosecution, issuance and maintenance of such Licensed Patents in the name of Licensor and at Licensee’s
expense.

 

6.2
Patent Reimbursements.

 

6.2.1
Licensee shall reimburse Licensor for all Patenting Costs incurred by Licensor as of the Effective Date (the “Patent
Reimbursement Amount”) in an amount equal to $***. Payment by Licensee of the Patent Reimbursement Amount shall be due
***.

 

6.2.2
Licensee will be responsible for the payment of all Patenting Costs incurred or to be incurred by Licensor after the Effective
Date.

 

6.2.3
With respect to any action necessary to protect a particular Licensed Patent in a particular country in the Territory, if Licensee
instructs Licensor in writing not to take such action, the rights protected by such Licensed Patent shall be excluded from the
license granted herein and Licensee shall be relieved from its obligation to pay for future Patenting Costs relating to such Licensed
Patent in such country. Thereafter, Licensor shall have the right to (i) abandon some or all of such rights at Licensor’s
sole discretion, or (ii) incur those costs at its own expense; in either case, Licensor shall be free to license such rights to
third parties without any further obligation to Licensee.

 

6.3
[Reserved]

 

6.4
Enforcement of Licensed Patents.

 

6.4.1
Notice. If either party becomes aware of any infringement, anywhere in the Territory, of any issued patent within the Licensed
Patents, such party will notify the other party of such infringement in writing as soon as reasonably practical thereafter (the
“Infringement Notice”).

 

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6.4.2
Infringement of Licensed Patents by Third Parties

 

(a)
In the case of any infringement within the Fields of any Licensed Patent by any third party during the Term, Licensee will have
the first right, but not the obligation, at Licensee’s expense, to cause such third party to cease infringement and to otherwise
enforce such Licensed Patent, or to defend the Licensed Patent, or to defend the Licensed Patent in any declaratory judgment action
brought by third parties that alleges the invalidity, unenforceability or non-infringement of the rights associated with the Licensed
Patent in the Fields; provided, however, that Licensee will (i) use counsel reasonably acceptable to Licensor, (ii)
keep Licensor reasonably informed regarding the progress of any litigation and settlement discussions with any alleged infringer,
and (iii) copy Licensor on, or provide Licensor with copies of, all external documents and correspondence (i.e., documents and
correspondence sent by Licensee to a third party or received by Licensee from a third party). Licensee will have control of the
conduct of any such action that it brings, provided that Licensor will have the right to provide ongoing comments on documents
prior to submission and advice regarding its position and interests in such action, which advice and comments will be considered
in good faith by Licensee and incorporated or adopted by Licensee to the extent they are reasonable or support the validity, enforceability
or scope of claims of a Licensed Patent, and (y) Licensee will not enter into any settlement, consent judgment or other voluntary
disposition of any such action without the prior written consent of Licensor, which consent will not be unreasonably withheld,
delayed or conditioned. For the purposes of this Section 6.4.2 (and without limiting generality of the foregoing) it will
be reasonable to Licensor to withhold consent to a settlement if the settlement would admit the invalidity or unenforceability
of or limit in any way any patent owned by Licensor. Licensor will, at the request and expense of Licensee, provide reasonable
cooperation and assistance in any action described in this Section 6.4.2. Except for providing such reasonable assistance,
Licensor will have no obligation regarding the legal actions described herein; provided, however, that Licensor
will join such action at Licensee’s request and expense if such joinder is, in the opinion of Licensee’s counsel,
required to enable Licensee to initiate or continue such action. Licensor, however, will have the right to participate in any
such action through its own counsel and, except as provided in this Section 6.4.2(a), at its own expense.

 

(b)
If Licensee does not, within a reasonable period after becoming aware of such infringement but no less than *** from the date
of the Infringement Notice, (i) initiate legal proceedings against such threatened or actual infringement, or defend legal proceedings
brought by a third party, as provided in Section 6.4.2(a), or (ii) cause such infringement to terminate, Licensor may thereafter
take such action as it deems necessary to enforce its rights in the Licensed Patent, including the right, but not the obligation,
to bring, at its own expense, an infringement action or file any other appropriate action or claim related to such infringement
against any third party; provided, however, that Licensor shall have no obligation to bring any suit, action or
other proceeding against any alleged infringer of any Licensed Patent. Licensee shall and hereby does irrevocably and unconditionally
waive any objection to Licensor’s joinder of Licensee to any proceeding described in Section 6.4.2(a) on any grounds
whatsoever, including on the grounds of personal jurisdiction, venue or forum non conveniens. If Licensor brings or defends
any such proceeding, Licensee shall reasonably cooperate in all respects with Licensor in the conduct thereof, and assist in all
reasonable ways, including having its employees testify when requested and make available for discovery or trial exhibit relevant
records, papers, information, samples, specimens, and the like at Licensee’s own cost.

 

6.4.3
Infringement of Third Party Rights. In the event that any action, suit or proceedings brought against, or written notice
of threat thereof is provided to Licensee alleging infringement of any patent or unauthorized use or misappropriation of technology
arising out of or in connection with Licensee’s exercise to Licensed Patents, Licensee shall have the right to defend at
its own expense such action, suit or proceeding. Licensee shall hold harmless and indemnify Licensor from and against any order
to pay costs arising without fault of Licensor that may be made against Licensee or Licensor in such proceedings. Licensor agrees
to cooperate with Licensee at Licensee’s expense (excluding salaries, rent, utilities and other expenses typically treated
as overhead) in connection with Licensee’s response to or defense of such action, suit or proceeding, or notice of threat
thereof.

 

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6.4.4
Recovery. If either party shall undertake the enforcement and/or defense of the Licensed Patents by litigation pursuant
to Sections 6.4.2 and Section 6.4.3, any recovery or damages (whether by way of settlement or otherwise) received
as a result of any such suit shall be applied first in satisfaction of any unreimbursed expenses and legal fees of either party,
and then the remainder (related to the Licensed Patents) shall be divided between the Parties as follows: ***.

 

6.4.5
March-in Rights. If any suit, action or other proceeding alleging invalidity or non-infringement of any Licensed Patent
is brought against Licensee, Licensor, at its option, shall have the right, within *** after commencement of such suit, action
or other proceeding, to intervene and take over the sole defense of the suit, action or other proceeding at its own expense.

 

6.5
Licensed Patent Challenges.

 

(a)
In the event that Licensee directly or indirectly disputes, challenges, or assists in the challenge of the validity, scope, construction,
enforceability or Licensor’s ownership of any issued patent comprising the Licensed Patents or any claims thereof, or opposes
or assists in the opposition of the grant of any Letters Patent comprising the Licensed Patents, either in a court of law, before
the U.S. Patent and Trademark Office, or other agency or tribunal (“Licensed Patent Challenge”), then (i) Licensor
has the right to immediately terminate this Agreement upon written notice to Licensee and with no opportunity for Licensee to
cure, and (ii) Licensee shall pay all of Licensor’s costs, fees and expenses associated with its defense of such challenge
or opposition.

 

(b)
Licensee shall include provisions in all Sublicenses permitted under Section 2.2 providing that if the Sublicensee brings
or participates in a Licensed Patent Challenge, the Sublicense will immediately terminate effective as of the first date of the
Sublicensee’s first filing or participation in the Licensed Patent Challenge. The failure to include such automatic termination
provision in a Sublicense hereunder shall constitute a material breach of this Agreement. If a Sublicensee undertakes a Licensed
Patent Challenge, Licensee, shall immediately terminate the applicable Sublicense upon becoming aware of such Licensed Patent
Challenge. Any failure to immediately terminate the Sublicense as required by this Section 6.5(b) shall constitute a material
breach of this Agreement.

 

(c)
If Licensee directly or indirectly institutes or participates in a Licensed Patent Challenge and Licensor elects not to terminate
this Agreement in accordance with Section 6.5(a), then ***.

 

6.6
Patent Extensions. Licensee and Licensor shall use reasonable efforts in its good faith determination to extend the Licensed
Patents, which may include extensions provided under U.S. law at 35 U.S.C. §154(b), 155A, and 156, provided that Licensee
shall have final decision-making authority with respect to any patent term extension with respect to Licensed Products. Licensee
hereby agrees to provide Licensor with all necessary assistance in securing such extensions, including without limitation, providing
all information regarding applications for Regulatory Approval, approvals granted, and the timing of same. To the extent applicable,
Licensee acknowledges that extensions under 35 U.S.C. §156 must be applied for within *** of the date that a Licensed Product
receives permission under the provision of law under which the applicable regulatory review period occurred for commercial marketing
or use and that Licensee’s failure to promptly provide the necessary information or assistance to Licensor during such ***
period (with respect to a Licensed Patent for which Licensee has elected to pursue a patent term extension) will cause serious
injury to Licensor, for which Licensee will be liable.

 

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Article
7

TERM
AND TERMINATION

 

7.1
Contract Term. This Agreement shall commence on the Effective Date and, unless terminated earlier in accordance with this
Article 7 or any other applicable provisions herein (including, without limitation, Section 6.5, Section 7.2,
Section 7.3, Section 7.4 or Section 7.5) shall continue until the later to occur of (i) the five (5) year
anniversary of the expiration of the last to expire Valid Claim of the Licensed Patents or (ii) the ten (10) year anniversary
of the First Commercial Sale in each jurisdiction. The period set forth in this Section 7.1, or such shorter periods as
may result from the earlier termination of this Agreement in accordance with this Article 7 or any other provision of this Agreement,
shall collectively be referred to as the “Term”.

 

7.2
Licensor Termination due to Licensee Insolvency.

 

(a)
Licensor shall have the right to immediately terminate this Agreement upon written notice if Licensee:

 

(i)
becomes subject, voluntarily or involuntarily, to any proceeding under any Debtor Relief Law, which is not fully stayed within
*** or is not dismissed or vacated within ***;

 

(ii)
is dissolved or liquidated;

 

(iii)
makes a general assignment for the benefit of creditors; or

 

(iv)
has a receiver, trustee, custodian or similar agent appointed by order of any court of competent jurisdiction to take charge of
or sell any material portion of its property or business.

 

7.3
Licensor Termination due to Breach of Contract Claim

 

(a)
Licensor shall have the right to immediately terminate this Agreement upon written notice if Licensee claims that Licensor breached
this Agreement through the exercise by Licensor or an academic, government, or not-for-profit institution of any of the retained
rights provided in Section 2.4 of this Agreement to:

 

(i)
perform research regarding the Licensed Technology;

 

(ii)
publish any results of the research described in Section 7.3(a)(i), provided such publication is made in compliance with Section
2.4.2; or

 

(iii)
disclose any results of the research described in Section 7.3(a)(i) to any Governmental Authorities, provide such disclosure is
made in compliance with Section 2.4.2.

 

7.4
Licensor Termination for Cause.

 

(a)
In addition to any rights of Licensor to terminate this Agreement as provided elsewhere in this Agreement, Licensor shall have
the right, in its sole discretion, to terminate this Agreement upon written notice to Licensee for any of the following events:

 

(i)
if Licensee fails to pay any undisputed amount under this Agreement when due and such failure remains unremedied for a period
of *** after written notice to Licensee from Licensor;

 

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(ii)
if any representation, warranty, certification or other statement of fact made by or on behalf of Licensee herein, or in any certificate,
document, report, financial statement or other document furnished by or on behalf of Licensee under or in connection with this
Agreement or any other agreement between Licensee and Licensor, proves to have been false or misleading in any material respect
on or as of the date made and remains unremedied for a period of *** after written notice to Licensee from Licensor;

 

(iii)
if Licensee fails to perform or observe any other material covenant, term, condition or agreement contained in this Agreement
and, if such failure is curable, such failure continues unremedied for a period of *** after written notice to Licensee from Licensor;
or

 

(iv)
Licensee institutes a Licensed Patent Challenge as set forth in Section 6.5(a).

 

(b)
Notwithstanding the foregoing, if Licensee disputes the grounds for such termination in accordance with Section 7.4(a),
Licensee shall provide written notice of the dispute to Licensor, and Licensor’s right to terminate this Agreement for cause
in accordance with Section 7.4(a) shall be tolled, pending final resolution of such dispute pursuant to Section 9.2.

 

(c)
Notwithstanding the foregoing, non-payment of the Issue Fee pursuant to Section 3.1 or non-payment of the Patent Reimbursement
Amount pursuant to Section 6.2.1, in each case within *** of the applicable payment date shall result in Licensor having
the right to terminate this Agreement immediately upon written notice to Licensee.

 

7.5
Licensee Termination. Licensee may, at its option, terminate this Agreement upon any material breach by Licensor under
this Agreement, which Licensor fails to remedy within *** after notice thereof by Licensee. In addition, Licensee may terminate
this Agreement at any time, for any business reason based on Licensee’s reasonable business judgment, upon at least ***
prior written notice to Licensor.

 

7.6
Disposition of Licensee Developments. In the event of termination of this Agreement pursuant to Section 7.2, Section
7.3, or Section 7.4, Licensee shall ***.

 

7.7
Accrued Obligations. Expiration or termination of the Agreement will not release either party from any obligation that
matured prior to the effective date of such expiration or termination. Nothing herein shall be construed to release Licensee from
any obligations (including, without limitation and by way of example only, obligations (a) in respect of Earned Royalties for
sales of Licensed Products that occurred on or before the termination date and (b) to pay or reimburse Licensor for Patenting
Costs that relate to any period before the termination date).

 

7.8
Effects of Termination.

 

7.8.1
Termination of License. Upon a termination of this Agreement in its entirety under Section 7.4 or Section 7.5,
Licensee’s rights to the Licensed Technology granted hereunder and all use thereof will terminate and any and all rights
in the Licensed Technology will revert back to Licensor. Upon Licensor’s request and at Licensor’s sole option, Licensee
will destroy or return all copies, except for the copies to be retained by Licensee’s legal counsel, of any media or materials
that are the property of and previously received from Licensor, including all documentation, notes, plans, drawings, copies, samples
and computer code.

 

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7.8.2
Effect on Sublicenses. Any Sublicense granted by Licensee under this Agreement shall, subject to the prior written consent
of Licensor (which consent shall not be unreasonably withheld, conditioned or delayed and which consent shall not be required
if the applicable Sublicensee is a Sublicensee approved by Licensor in accordance with Section 2.2 and is not then in breach
of this Agreement), survive termination of this Agreement, in which case such Sublicense shall be considered a direct license
from Licensor to the applicable Sublicensee granting such Sublicensee a license to the Licensed Technology that was sublicensed
to such Sublicensee in the sublicensed field, and such direct license will otherwise be on the terms and conditions of the Sublicense
(to the extent applicable to the Licensed Technology); provided, however, that in the event of any inconsistencies
between this Agreement and the Sublicense, this Agreement shall control; provided, further, that if this Agreement
is terminated pursuant to Section 4.1 as a result of any Milestone not being achieved by the applicable Milestone Date
(after giving effect to the *** cure period), then all Sublicenses shall automatically terminate effective immediately upon the
termination of this Agreement.

 

7.8.3
***.

 

7.8.4
Survival. Upon expiration or termination of this Agreement, Section 2.5 (Regulatory Affairs), Article 3 (Financial
Consideration), Section 5.1 (Books and Records), Section 5.2 (Financial Audits), Section 5.3 (Product Reports),
Section 6.2 (Patent Reimbursements), this Article 7 (Term and Termination), Article 8 (Confidential Information),
Article 9 (Governing Law; Dispute Resolution), Article 10 (Indemnification and Insurance), Section 11.3 (Disclaimers)
and 11.4 (Exclusion of Consequential and Other Indirect Damages), Article 12 (Notices), Article 13 (Assignment)
, Article 14 (Use of Name) and Article 23 (Miscellaneous Provisions) will, along with all defined terms used herein
(whether defined in Article 1 (Definitions) or elsewhere in this Agreement) and any right, obligation or required performance
of the parties in this Agreement which, by its express terms or nature and context is intended to survive termination or expiration
of this Agreement, survive and remain in full force and effect.

 

Article
8

CONFIDENTIALITY

 

8.1
Confidentiality Obligations. Each party (the “Receiving Party”) acknowledges that in connection with
this Agreement it will gain access to Confidential Information of the other party (the “Disclosing Party”).
As a condition to being provided with Confidential Information, the Receiving Party shall:

 

(a)
not use the Disclosing Party’s Confidential Information other than as necessary to exercise its rights and perform its obligations
under this Agreement; and

 

(b)
maintain the Disclosing Party’s Confidential Information in strict confidence and, subject to Section 8.2, not disclose
the Disclosing Party’s Confidential Information without the Disclosing Party’s prior written consent, provided, however,
the Receiving Party may disclose the Confidential Information to its Representatives who:

 

(i)
have a need to know the Confidential Information for purposes of the Receiving Party’s performance, or exercise of its rights
concerning the Confidential Information, under this Agreement;

 

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(ii)
have been apprised of this restriction; and

 

(iii)
are themselves bound by written non-disclosure and non-use agreements at least as restrictive as those set forth in this Section
8.1, provided further that the Receiving Party shall be responsible for ensuring its Representatives’ compliance with,
and shall be liable for any breach by its Representatives of, this Section 8.1.

 

The
Receiving Party shall use reasonable care, at least as protective as the efforts it uses for its own confidential information,
to safeguard the Disclosing Party’s Confidential Information from use or disclosure other than as permitted hereby.

 

8.2
Exceptions. If the Receiving Party becomes legally compelled to disclose any Confidential Information, the Receiving Party
shall:

 

(a)
provide prompt written notice to the Disclosing Party so that the Disclosing Party may seek a protective order or other appropriate
remedy or waive its rights pursuant to Article 12; and

 

(b)
disclose only the portion of Confidential Information that it is legally required to furnish.

 

If
a protective order or other remedy is not obtained, or the Disclosing Party waives compliance in accordance with Article 12
and Article 21, the Receiving Party shall, at the Disclosing Party’s expense, use reasonable efforts to obtain
assurance that confidential treatment will be afforded the Confidential Information.

 

8.3
Confidential Terms. Notwithstanding anything to the contrary herein, the parties may disclose the terms and existence of
this Agreement to potential or actual investors, acquirers, Sublicensees, collaboration partners, consultants, advisors and others
on a reasonable need to know basis subject to customary confidentiality restrictions, or as required by securities or other applicable
Laws.

 

Article
9

GOVERNING
LAW; DISPUTE RESOLUTION

 

9.1
Governing Law. This Agreement and all related documents, and all matters arising out of or relating to this Agreement,
are governed by, and construed in accordance with, the laws of the State of Ohio, United States of America, without regard to
the conflict of laws’ provisions thereof to the extent such principles or rules would require or permit the application
of the laws of any jurisdiction other than those of the State of Ohio.

 

9.2
Dispute Resolution.

 

9.2.1
Exclusive Dispute Resolution Mechanism. The parties shall resolve any dispute, controversy or claim arising out of or relating
to this Agreement, or the breach, termination or invalidity hereof (each, a “Dispute”), under the provisions
of this Section 9.2. The procedures set forth in this Section 9.2 shall be the exclusive mechanism for resolving
any Dispute that may arise from time to time, subject to Section 23.7.

 

9.2.2
Good Faith Negotiations. If a party believes that a Dispute exists, then such party (the “Declaring Party”)
shall provide notice of such Dispute to the other party (the “Notice”), which Notice shall specify the nature
and cause of the Dispute and the action that the Declaring Party deems necessary to resolve such Dispute. Following receipt of
the Notice, the parties shall use good faith efforts to resolve the Dispute, including making personnel with appropriate decision-making
authority available to the other party to discuss resolution of the Dispute. If a Dispute is not resolved within *** of the date
of the non-Declaring Party’s receipt of the Notice, then the Dispute shall be submitted to mandatory, final and binding
arbitration before the American Arbitration Association, in accordance with the then-current rules of the American Arbitration
Association, as modified herein.

 

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9.2.3
Arbitration. The parties shall use a panel of three arbitrators. The Declaring Party shall select one arbitrator, and the
other party shall select a second arbitrator, and the two arbitrators so selected shall select a third arbitrator. The three arbitrators
shall hear the Dispute. Such arbitrators shall be knowledgeable in intellectual property law and related matters. The arbitrators
shall make each determination in a manner that is consistent with this Agreement, including the parties’ intent as expressed
herein. Without limiting the foregoing, the parties agree that the arbitrators are empowered to make determinations regarding
the reasonableness of a party’s acts or omissions. All decisions of the arbitrators shall be binding upon the parties. Each
party shall be solely responsible for its own attorneys’ fees and expenses, legal expenses and witness fees and expenses.
Any other usual and customary expenses incurred by the arbitrators or the expense of such arbitration proceeding shall be equally
divided between the parties, irrespective of the outcome of such proceeding. The arbitration will be conducted in Cleveland, Ohio.
The arbitrators are to apply the laws of the State of Ohio, without regard to its conflict of laws’ provisions. The parties
agree that any award, order, or judgment pursuant to the arbitration is final and may be entered and enforced in any court of
competent jurisdiction. The parties agree that all aspects of the dispute resolution process, including the arbitration, shall
be conducted in confidence. The parties agree that all statements made in connection with informal dispute resolution efforts
shall not be considered admissions or statements against interest by any party. The parties further agree that they will not attempt
to introduce such statements at any later trial, arbitration or mediation between the parties.

 

9.3
Waiver of Jury Trial. Each party irrevocably and unconditionally waives any right it may have to a trial by jury for any
legal action arising out of or relating to this Agreement or the transactions contemplated hereby.

 

Article
10

INDEMNIFICATION
AND INSURANCE

 

10.1
Indemnification

 

10.1.1
Licensee Indemnification. Subject to Section 10.1.3, Licensee will indemnify, defend and hold harmless Licensor
and its respective trustees, directors, officers, medical and professional staff, employees, students, and agents and their respective
successors, heirs, and assigns (each a “Licensor Indemnitee”), against all Losses arising from any third party
claim, suit, action or other proceeding (each, an “Action”) which may be made or instituted against any Licensor
Indemnitee related to, arising out of or resulting from (a) Licensee’s material breach of any representation, warranty,
covenant or obligation under this Agreement, (b) use by Licensee or its Sublicensee or any of the foregoing Persons’ respective
transferees of Licensed Technology, (c) any use, sale, transfer or other disposition by Licensee or its Sublicensee or any of
the foregoing Persons’ respective transferees of Licensed Products or any other products made by use of Licensed Technology,
or (d) (i) Licensee’s enforcement or defense of the Licensed Patents or (ii) prosecution actions in respect of the Licensed
Patents, to the extent such prosecution actions were taken at the request of or under the direction or guidance of Licensee, except
to the extent any such Action arises from any matter for which Licensor is obligated to provide indemnification pursuant to Section
10.1.2.

 

10.1.2
Licensor Indemnification. Subject to Section 10.1.3, to the extent allowed under applicable Laws, Licensor will
indemnify, defend and hold harmless Licensee and its respective directors, officers, employees, consultants, and agents and their
respective successors, heirs, and assigns (each a “Licensee Indemnitee”), against all Losses arising from any
Action which may be made or instituted against any Licensee Indemnitee related to, arising out of or resulting from (a) Licensor’s
material breach of any representation, warranty, covenant or obligation under this Agreement, or (b) a Licensor Indemnitee’s
negligence, willful misconduct, or breach of any applicable Law, except to the extent any such Action arises from any matter for
which Licensee is obligated to provide indemnification pursuant to Section 10.1.1.

 

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10.1.3
Indemnification Procedure. An Indemnitee (whether a Licensor Indemnitee or a Licensee Indemnitee) that intends to claim
indemnification under this Section 10.1 will give notice to the indemnifying party of any Action which might be covered
by this Section 10.1. The indemnifying party shall immediately take control of the defense and investigation of the Action,
including selection of counsel reasonably acceptable to the Indemnitee, at the indemnifying party’s sole cost and expense;
provided, however, that the indemnifying party will not, without the prior written consent of the Indemnitee, settle
or consent to the entry of any judgment with respect to such Action (a) that does not release the Indemnitee from all liability
with respect to such Action, or (b) that may adversely affect the Indemnitee or under which the Indemnitee would incur any obligation
or liability, other than one as to which the indemnifying party has an indemnity obligation hereunder. The Indemnitee agrees to
cooperate and provide reasonable assistance to such defense at the indemnifying party’s expense. The Indemnitee at all times
reserves the right to select and retain counsel of its own at its own expense to defend its interests, provided that the indemnifying
party will remain in control of the defense. The Indemnitee’s failure to perform any obligations under this Section 10.1.3
shall not relieve the indemnifying party of its obligation under Section 10.1 except to the extent that the indemnifying
party can demonstrate that it has been materially prejudiced as a result of the failure.

 

10.2
Insurance.

 

(a)
Prior to using, selling, transferring or otherwise disposing of any Licensed Product (including for the purpose of obtaining regulatory
approvals), Licensee shall, at its sole cost and expense, obtain, pay for and maintain commercial general liability and professional
liability (Errors and Omissions) insurance in commercially reasonable and appropriate amounts that provides product liability
coverage concerning the Licensed Products , including without limitation coverage for human trials, and contractual liability
coverage for Licensee’s defense and indemnification obligations under this Agreement. To the extent any insurance coverage
required under this Section 10.2 is purchased on a “claims-made” basis, such insurance shall cover all prior
acts of Licensee during the Term, and be continuously maintained until at least *** beyond the expiration or termination of the
Term, or Licensee shall purchase “tail” coverage, effective upon termination of any such policy or upon termination
or expiration of the Term, to provide coverage for at least *** from the occurrence of either such event. Promptly upon Licensor’s
request, Licensee will present evidence to Licensor that the coverage is being maintained. In addition, Licensee will provide
Licensor with at least *** prior written notice of any material change in or cancellation of the insurance coverage.

 

(b)
Licensee shall insert this Section 10.2 in any Sublicense, with the name of the Sublicensee substituted for the name of
Licensee therein.

 

10.3
Lapse of Coverage. If Licensor elects to terminate this Agreement pursuant to (and subject to the cure period set forth
in) Section 7.4 for any breach of Section 10.2, then such termination shall occur and become effective pursuant
to Section 7.4. Nothing herein shall be construed to release either party from any obligation that matured prior to the
effective date of such termination. Notwithstanding the foregoing, in the *** period subsequent to the date of such a termination
of this Agreement pursuant to Section 7.4, to the extent that such rights are still available for licensing, Licensee shall
have the right to reinstate the effectiveness of this Agreement by obtaining the required insurance, whereupon this Agreement
shall automatically become effective as of the date of reinstatement of said insurance and shall remain in full force and effect
without any further action of the parties.

 

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Article
11

REPRESENTATIONS
AND WARRANTIES

 

11.1
Representations and Warranties of Licensee. Licensee represents and warrants to Licensor as follows:

 

(a)
to the Licensee’s knowledge, Licensee has not received any notice or threat of any claim, suit, action or proceeding, and
has no knowledge or reason to know of any information, that could: (i) invalidate or render unenforceable any claim of any Licensed
Patent; (ii) prove that the Licensed Products are not covered by any claim of any Licensed Patent; or (iii) cause any claim of
any Licensed Patent to fail to issue or be materially limited or restricted as compared with its currently pending scope;

 

(b)
to the Licensee’s knowledge, the execution and performance of Licensee’s obligations under this Agreement does not
conflict with, cause a default under, or violate any existing contractual obligation that may be owed by Licensee to any third
party;

 

(c)
all Licensed Products will be manufactured in all material respects in accordance with applicable Laws, including, without limitation,
all applicable Laws of the FDA and any other applicable Regulatory Authority;

 

(d)
Licensee is a corporation duly organized, validly existing and in good standing under the laws of the state of its jurisdiction
of organization;

 

(e)
to the Licensee’s knowledge, Licensee has all requisite corporate power and authority, and the legal right, to execute and
deliver this Agreement and to perform its obligations hereunder;

 

(f)
to the Licensee’s knowledge, the execution and delivery of this Agreement by Licensee and the performance of its obligations
hereunder have been duly authorized by all necessary corporate action in accordance with all applicable Laws. Licensee has duly
executed and delivered this Agreement; and

 

(g)
this Agreement is a valid, legal and binding obligation of Licensee, enforceable against Licensee in accordance with its terms.

 

11.2
Representations and Warranties of Licensor. Licensor represents and warrants to Licensee as follows:

 

(a)
to Licensor’s knowledge, it is the exclusive owner of all rights, title and interests in the Licensed Patents and has the
right, power and authority to grant Licensee the licenses in Section 2.1 and it does not own any patents or patent applications
other than the Licensed Patents the claims of which would dominate any practice of the Licensed Technology in the Fields.

 

(b)
to Licensor’s knowledge, the execution and performance of Licensor’s obligations under this Agreement do not conflict
with, cause a default under, or violate any existing contractual obligation that may be owed by Licensor to any third party.

 

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(c)
Licensor is a nonprofit corporation duly organized, validly existing and in good standing and has all requisite power and authority
to execute and deliver, and perform its obligations under, this Agreement;

 

(d)
to Licensor’s knowledge, the execution and performance of Licensor’s obligations under this Agreement do not conflict
with, cause a default under, or violate any existing contractual obligation that may be owed by Licensor to any third party;

 

(e)
this Agreement is a valid, legal and binding obligation of Licensor, enforceable against Licensor in accordance with its terms;
and

 

(f)
as of the Effective Date, to Licensor’s knowledge, there is no infringement claim pending or threated in writing against
Licensor related to any of the Licensed Patents.

 

For
purposes of this Section 11.2, “knowledge” means the actual knowledge of Vincent K. Tuohy and individuals employed
by Licensor in the group known as “Cleveland Clinic Innovations” as of the Effective Date. For purposes of this Agreement,
“Cleveland Clinic Innovations” means Tony Giordano and Greg Frykman.

 

11.3
Disclaimer of Representations and Warranties.

 

(a)
Except as expressly provided herein, Licensee acknowledges and agrees that all rights licensed by Licensor hereunder are licensed
“as is” and without any representation, indemnification or warranty with respect to possible infringement of third
party rights. Except as expressly provided herein, nothing in this Agreement shall be construed as (i) a warranty or representation
by Licensor as to the validity or scope of any Licensed Patents, (ii) a warranty or representation that anything made, used, imported,
developed, promoted, offered for sale, sold, or otherwise disposed of under any license granted in this Agreement does not or
will not infringe patents, trade secrets, copyrights or other intellectual or proprietary rights of third parties; (iii) a representation
or warranty of operability or that development of a commercial products is possible; (iv) an obligation to bring or prosecute
actions or suits against third parties for infringement; (v) conferring the right to use in advertising, publicity or otherwise
any trademark, trade name, or names, or any contraction, abbreviation, simulation or adaptation thereof of Licensee or Licensor;
(vi) conferring by implication, estoppel or otherwise any license or rights under any patents of Licensor other than the Licensed
Patents; and (vii) any other representations or warranties, either express or implied, unless specified in this Agreement. Except
as expressly provided herein, the furnishing of Confidential Information by either party shall not be interpreted to convey any
grant of rights, titles, interests, options or licenses to the receiving party under any intellectual property rights owned or
controlled by such party, other than the license under the Licensed Technology.

 

(b)
EXCEPT AS EXPRESSLY PROVIDED HEREIN, EACH PARTY EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES, WHETHER WRITTEN, ORAL,
EXPRESS, IMPLIED STATUTORY OR OTHERWISE, CONCERNING THE VALIDITY, ENFORCEABILITY AND SCOPE OF THE LICENSED PATENTS, THE ACCURACY,
COMPLETENESS, SAFETY, USEFULNESS FOR ANY PURPOSE OR, LIKELIHOOD OF SUCCESS (COMMERCIAL, REGULATORY OR OTHER) OF THE LICENSED PRODUCTS,
LICENSED KNOW-HOW AND ANY OTHER TECHNICAL INFORMATION, TECHNIQUES, MATERIALS, METHODS, PRODUCTS, PROCESSES OR PRACTICES AT ANY
TIME MADE AVAILABLE BY LICENSOR INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY, QUALITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT AND WARRANTIES ARISING FROM A COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OR TRADE PRACTICE. WITHOUT LIMITATION
TO THE FOREGOING, LICENSOR SHALL HAVE NO LIABILITY WHATSOEVER TO LICENSEE OR ANY OTHER PERSON FOR OR ON ACCOUNT OF ANY INJURY,
LOSS, OR DAMAGE, OF ANY KIND OR NATURE, SUSTAINED BY, OR ANY DAMAGE ASSESSED OR ASSERTED AGAINST, OR ANY OTHER LIABILITY INCURRED
BY OR IMPOSED ON LICENSEE OR ANY OTHER PERSON, ARISING OUT OF OR IN CONNECTION WITH OR RESULTING FROM: (X) THE MANUFACTURE, USE,
OFFER FOR SALE, SALE, OR IMPORT OF A LICENSED PRODUCT, OR THE PRACTICE OF THE LICENSED PATENTS; (Y) THE USE OF OR ANY ERRORS OF
OMISSIONS IN ANY KNOW-HOW, TECHNICAL INFORMATION, TECHNIQUES, OR PRACTICES DISCLOSED BY LICENSOR; OR (Z) ANY ADVERTISING OR OTHER
PROMOTIONAL ACTIVITIES CONCERNING ANY OF THE FOREGOING.

 

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11.4
Exclusion of Consequential and Other Indirect Damages. EXCEPT FOR DAMAGES ARISING FROM A BREACH OF ARTICLE 8, FRAUD, WILLFUL
MISCONDUCT, OR GROSS NEGLIGENCE, OR AS MAY BE PAYABLE PURSUANT TO A PARTY’S INDEMNIFICATION OBLIGATIONS UNDER ARTICLE 10,
IN NO EVENT WILL EITHER PARTY, OR THE LICENSOR INDEMNITEES OR THE LICENSEE INDEMNITEES, BE LIABLE TO THE OTHER PARTY FOR ANY INJURY
TO OR LOSS OF GOODWILL, REPUTATION, BUSINESS, PRODUCTION, REVENUES, PROFITS, ANTICIPATED PROFITS, CONTRACTS OR OPPORTUNITIES (REGARDLESS
OF HOW THESE ARE CLASSIFIED AS DAMAGES), OR FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, PUNITIVE OR ENHANCED
DAMAGES WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, PRODUCT LIABILITY OR OTHERWISE
(INCLUDING THE ENTRY INTO, PERFORMANCE OR BREACH OF THIS AGREEMENT), REGARDLESS OF WHETHER SUCH LOSS OR DAMAGE WAS FORESEEABLE
OR THE PARTY AGAINST WHOM SUCH LIABILITY IS CLAIMED HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE, AND NOTWITHSTANDING
THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE.

 

Article
12

NOTICES

 

Any
payment, notice or other communication to be given pursuant to the provisions of this Agreement shall be in writing by means of
a letter or electronic mail directed:

 

If
to Licensor:

 

General
correspondence to:

 

The
Cleveland Clinic Foundation

9500
Euclid Avenue, Mailstop GCIC10

Cleveland,
OH 44195

Attn:
CCF Innovations – Executive Director

Email: giordat@ccf.org

With
a copy to: ccilicense@ccf.org

 

Payments
to:

 

***

 

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With
copies to:

 

Law
Department

The
Cleveland Clinic Foundation

3050
Science Park Drive, AC321

Beachwood,
OH 44122

Attn:
Chief Legal Counsel, CC Innovations

Email:
legalcontracts@ccf.org

With
a copy to: cicarej@ccf.org

 

If
to Licensee:

 

General
correspondence to:

 

Anixa
Biosciences, Inc.

3150 Almaden Expressway, Suite 250

San Jose, CA 95118

Attn: Amit Kumar, CEO

Email: ak@anixa.com

 

Notices
sent in accordance with this Section 12 shall be deemed effectively given: (a) when received, if sent by a nationally or
internationally recognized courier (receipt requested); or (b) on the date sent by e-mail (with confirmation of transmission),
if sent during normal business hours of the recipient, and on the next business day if sent after normal business hours of the
recipient.

 

Article
13

ASSIGNMENT

 

This
Agreement will be binding upon and will inure to the benefit of each party and each party’s respective transferees, successors
and assigns. Notwithstanding the foregoing, Licensee may not transfer, delegate or assign this Agreement or any rights or obligations
hereunder (for clarity, excluding the grant of Sublicenses approved by Licensor in accordance with Section 2.2) without
the prior written consent of Licensor (not to be unreasonably withheld, conditioned or delayed). For purposes of this Article
13, transfer or assignment that will require such prior written consent will include any express assignment, Change in Control
of Licensee, or other transfer or assignment by operation of law; provided that such consent will not be required in the case
of transfer or assignment in connection with a Change in Control in which the successor entity is a Sublicensee approved by Licensor
in accordance with Section 2.2. Upon written request, Licensee may obtain Licensor’s prior written consent to the
transfer or assignment of this Agreement to a particular entity in connection with a Change in Control in advance of the negotiation
of such Change in Control. Any such request shall identify the potential successor entity(ies), but shall not be required to contain
any terms or conditions of the potential Change in Control. Licensor shall respond to any such request within *** of receipt.
Any failure by Licensor to respond to any such request within such period shall be deemed to constitute Licensor’s prior
written consent to the transfer or assignment of this Agreement to the entity(ies) identified in such request. In addition, any
such consent given (or deemed to have been given) by Licensor shall remain in effect with respect to each potential successor
entity for *** after the effective date of such consent and shall apply to the applicable entity(ies) identified in such request
and any Affiliates thereof.

 

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Article
14

USE
OF NAME

 

Licensee
shall not use the name, logo, likeness, trademarks, or image of Licensor for advertising, marketing, endorsement or any other
purposes without the specific prior written consent of an authorized representative of Licensor as to each such use. Licensee
shall not make any public announcements, make any public statements, issue any press releases or otherwise communicate with any
news media in respect of this Agreement or the transactions contemplated hereby without the specific prior written consent of
an authorized representative of Licensor. Licensee shall not be required to attain consent under this Article 14 for use that,
based on the written legal opinion of Licensee’s legal counsel, is required pursuant to applicable law or regulation, including
Licensee’s obligations under disclosure rules of the Securities and Exchange Commission (SEC). Licensor’s specific
prior written consent to one use shall apply only to other uses of substantially similar form and content (e.g. various iterations
of investor presentations) but not to any other uses. Notwithstanding anything to the contrary contained herein, Licensor shall
have the right to withdraw any consent previously provided (e.g., if Licensor has previously consented to Licensee’s use
of Licensor’s name and logo on Licensee’s website or in investor presentations). For clarity, this Article 14 shall
not restrict Licensee (or its Affiliates or Sublicensees) from publicly disclosing information regarding the status of the development,
or manufacture or commercialization of any Licensed Product, provided that any such disclosure does not use the name, logo, likeness,
trademark or image of Licensor.

 

Article
15

EXPORT
CONTROLS; REGULATORY CLEARANCE

 

15.1
Export Controls. Neither Licensee nor any of its Sublicensees shall, directly or indirectly, export (including any “deemed
export”), nor re-export (including any “deemed re-export”) the Licensed Products (including any associated products,
items, articles, computer software, media, services, technical data, and other information) in violation of any applicable U.S.
Laws. Licensee and each Sublicensee shall include a provision identical in substance to this Section 15.1 in its agreements
with its Sublicensees, third party wholesalers, distributors, customers and end-users requiring that these Persons comply with
all applicable U.S. Laws, including all applicable U.S. export Laws. For the purposes of this Section 15.1, the terms “deemed
export” and “deemed re-export” have the meanings set forth in Section 734.2(b)(2)(ii) and Section 734.2(b)(4),
respectively, of the Export Administration Regulations (EAR) (15 CFR §§ 734.2(b)(2)(ii) and 734.2(b)(4)).

 

15.2
Regulatory Clearances. Licensee shall, at Licensee’s expense, comply with all regulations and safety standards concerning
Licensed Products developed and commercialized by or under the authority of Licensee and obtain all necessary governmental approvals
for the development, production, distribution, sale and use of Licensed Products developed and commercialized by or under the
authority of Licensee, including any safety or clinical studies. Licensee shall have responsibility for and provide suitable warning
labels, packaging and instructions as to the use for such Licensed Products.

 

Article
16

MARKING

 

Licensee
shall and shall require any Sublicensee to comply with any applicable patent marking provisions of 35 USC § 287(a) by marking
all Licensed Products with the word “patent” or the abbreviation “pat.” and either the numbers of the
relevant Licensed Patents or a web address that is freely accessible to the public and that associates the Licensed Products with
the relevant Licensed Patents. Licensee shall include in all Sublicenses a patent marking requirement substantially identical
to this Article 16. Licensee shall and shall require any Sublicensee to also comply with the patent marking laws of the relevant
countries in the Territory.

 

    	30

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Article
17

SEVERABILITY

 

If
any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such
term or provision in any other jurisdiction. Upon a determination that any term or other provision is invalid, illegal or unenforceable,
the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as
closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally
contemplated to the greatest extent possible.

 

Article
18

ANTI-KICKBACK
AND STARK LAW

 

Licensee
agrees to comply with all applicable Laws. Without limiting the foregoing, by entering into this Agreement, the Licensee will
comply with all applicable laws, rules and regulations including (i) the federal anti-kickback statute (42 U.S.C. §1320a-7b)
and the related safe harbor regulations; and (ii) the Limitation on Certain Physician Referrals, also referred to as the “Stark
Law” (42 U.S.C. 1395nn). Accordingly, no part of any consideration paid hereunder is a prohibited payment for the recommendation
of or arranging for the referral of business or the ordering of items or services; nor are the payments intended to induce illegal
referrals of business. In the event that any part of this Agreement is determined to violate federal, state, or local laws, rules
or regulations, the Parties agree to negotiate in good faith revisions to the provision or provisions that are in violation.

 

Article
19

CONFLICT
OF INTEREST

 

Licensor
maintains and adheres to a Conflict of Interest Policy. In that connection Licensee represents that no Licensor employees, officers,
trustees or directors are consultants, employees, officers or directors or, to the best of Licensee’s knowledge, owners
of Licensee or any of its Affiliates or serve on any boards or committees of or in any advisory capacity with Licensee or any
of its Affiliates, except as disclosed in Exhibit D attached hereto. Any payments made to such parties listed on Exhibit
D are at fair market value for services rendered

 

Article
20

HEADERS

 

The
descriptive headings of this Agreement are for convenience only and will be of no force or effect in construing or interpreting
any of the provisions of this Agreement.

 

Article
21

BENEFIT
AND WAIVER

 

The
failure of either party to comply with any obligation, covenant, agreement or condition under this Agreement may be waived by
the party entitled to the benefit thereof only by a written instrument signed by the party on granting such waiver, but such waiver
or failure to insist upon strict compliance with such obligation, covenant, agreement or condition will not operate as a waiver
of, or estoppel with respect to, any subsequent or other failure. The failure of any party to enforce at any time any of the provisions
of this Agreement will in no way be construed to be a waiver of any such provision, nor in any way to affect the validity of the
Agreement or any part thereof or the right of any party thereafter to enforce each and every such provision. No waiver of any
breach of such provisions will be held to be waiver of any other or subsequent breach.

 

    	31

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Article
22

ENTIRE
AGREEMENT

 

This
Agreement (together with any exhibits, schedules or appendices attached hereto) constitutes the entire agreement between the Parties
hereto with respect to the subject matter hereof and supersedes all previous or contemporaneous negotiations, commitments, and
writings with respect to such subject matter. Neither party shall be obligated by any undertaking nor representation regarding
the subject matter hereof other than those expressly stated herein or as may be subsequently agreed to by the parties hereto in
writing.

 

Article
23

MISCELLANEOUS
PROVISIONS

 

23.1
Amendment. No amendment, modification or supplement of any provision of this Agreement will be valid or effective unless
made in writing and signed by a duly authorized officer of each party.

 

23.2
Further Assurances. Each party shall, upon the request of the other party, promptly execute such documents and take such
further actions as may be necessary to give full effect to the terms of this Agreement.

 

23.3
Debarment. Licensee hereby represents and warrants that it has not been debarred, suspended, excluded or otherwise determined
to be ineligible to participate in federal healthcare programs or federal procurement and non-procurement programs (collectively,
“Debarred”) and Licensee agrees not to engage or assign any employee, agent or contractor (“Agent”)
to perform services under this Agreement who has been Debarred. Licensee acknowledges that Licensor shall have the right to terminate
this Agreement in accordance with Section 7.4 in the event that Licensee or an Agent is Debarred and not promptly removed.
Accordingly, Licensee shall provide Licensor with immediate notice if during the Term of this Agreement Licensee (a) receives
notice of action or threat of action with respect to its Debarment or (b) becomes Debarred.

 

23.4
Independent Contractors. Both parties are independent contractors under this Agreement. Nothing contained in this Agreement
will be deemed to create an employment, agency, joint venture or partnership relationship between the Parties hereto or any of
their agents or employees, or any other legal arrangement that would impose liability upon one Party for the act or failure to
act of the other Party. Neither Party will have any express or implied power to enter into any contracts or commitments or to
incur any liabilities in the name of, or on behalf of, the other Party, or to bind the other Party in any respect whatsoever.

 

23.5
Tax Exempt Status. The parties recognize that Licensor is a non-profit, tax-exempt organization and agree that this Agreement
will take into account and be consistent with Licensor’s tax-exempt status. If any part or all of this Agreement is determined
to jeopardize the overall tax-exempt status of Licensor and/or any of its exempt Affiliates, the parties will negotiate in good
faith an amendment of this Agreement pursuant to Article 17 so as to address such tax consideration while effecting the original
intent of the parties as closely as possible in a mutually acceptable manner.

 

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23.6
Waiver of Automatic Stay. In the event Licensee is the subject of any voluntary or involuntary proceeding under the Bankruptcy
Code, Licensee hereby unconditionally and irrevocably agrees that Licensor is immediately entitled, without notice, demand or
any other action, to relief from the automatic stay so as to allow Licensor to enforce its rights and remedies under this Agreement,
or at law and in equity under applicable state law. Licensee hereby consents to the immediate lifting, without notice, demand
or any other action, of any such automatic stay and agrees that it shall not, in any manner, contest or otherwise delay any motion
filed by Licensor for relief from the automatic stay. Licensor’s enforcement of this stay waiver is subject to the approval
of the bankruptcy court in which the case is then pending.

 

23.7
Equitable Relief. Each party acknowledges that a breach by the other party of this Agreement may cause the non-breaching
party irreparable harm, for which an award of damages would not be adequate compensation and, in the event of such a breach or
threatened breach, the non-breaching party shall be entitled to seek equitable relief, including in the form of a restraining
order, orders for preliminary or permanent injunction, specific performance and any other relief that may be available from any
court, and the parties hereby waive any requirement for the securing or posting of any bond or the showing of actual monetary
damages in connection with such relief. These remedies shall not be deemed to be exclusive but shall be in addition to all other
remedies available under this Agreement at law or in equity, subject to any express exclusions or limitations in this Agreement
to the contrary.

 

23.8
Counterparts. This Agreement may be executed in any number of counterparts, each of which need not contain the signature
of more than one party but all such counterparts taken together will constitute one and the same agreement. A signed copy of this
Agreement delivered by e-mail to which a PDF copy is attached shall be deemed to have the same legal effect as delivery of an
original signed copy of this Agreement.

 

[SIGNATURE
PAGE FOLLOWS]

 

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IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized representatives
effective as of the Effective Date.

 

	 	The
    Cleveland Clinic Foundation
	 	 	 
	 	By	/s/
    Steven C. Glass
	 	Name	Steven
    C. Glass
	 	Title	Chief
    Financial Officer
	 	 	 
	 	Anixa
    Biosciences, Inc.
	 	 	 
	 	By	/s/
    Amit Kumar
	 	Name	Dr.
    Amit Kumar
	 	Title	Chief
    Executive Officer

 

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Appendix
A

 

LICENSED
TECHNOLOGY

 

Licensed
Patents:

 

***

 

Licensed
Know-how:

 

***

 

    	Appendix A -1

    	Redactions with respect to certain portions hereof denoted with “***”

    

 

Exhibit
A

DEVELOPMENT
PLAN

 

To
be provided pursuant to Section 5.7.

 

    	A -1

    	Redactions with respect to certain portions hereof denoted with “***”

    

 

Exhibit
B

FORM
OF ROYALTY REPORT

 

	 	Licensee/Sublicensee:	 	 	 	Agreement Effective Date:	 	 	 	 	 
	 	Period Reported:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Product name or Catalog number	Description	Activity Type (External Sales / Internal Sales)	Country	Sold to:	Number of units sold	Total Quarterly Gross Sales	Less Allowable Deductions	Net Sales	Royalty Rate	Other Income (including Sublicensing Revenue)	Total Due
	 	 	 	(US, Canada, Japan, etc.)	(Note CCF Sales)	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Total:	Total:	 	 	 	 	 	 	 	 	 	 $            -   
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Total Royalties Due	 	 	 $                 -   
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Prior Quarterly Payments:	 	 $                 -   
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Minimum Annual	$            -   	 	 	 $                 -   
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Cumulative Net Sales:	 	 	 	 

 

    	B -1

    	Redactions with respect to certain portions hereof denoted with “***”

    

 

Exhibit
C

FORM
OF DEVELOPMENT REPORT

 

Date
development plan initiated and time period covered by this report.

 

Development
Report.

 

	 	●	Activities completed
    since last report including the object and parameters of the development, when initiated, when completed, a summary of the
    data collected, and the results.

 

	 	●	Activities currently
    under investigation, i.e., ongoing activities including object and parameters of such activities when initiated, and
    projected date of completion.

 

Future
Development Activities.

 

	 	●	Activities to be
    undertaken before next report including the type and object of any studies conducted and their projected starting and completion
    dates.

 

		●	Estimated total
    development time remaining before a product will be commercialized.

 

Changes
to initial Development Plan.

 

	 	●	Reasons for change.

 

	 	●	Variables that may
    cause additional changes.

 

Items
to be provided if applicable:

 

	 	●	Information relating
    to Licensed Product that has become publicly available, e.g., published Sections, competing products, patents, etc.

 

	 	●	Development work
    being performed by third parties other than Licensee to include name of third party, reasons for use of third party, planned
    future uses of third parties including reasons why and type of work.

 

	 	●	Update of competitive
    information trends in industry, government compliance (if applicable) and market plan.

 

	 	●	*** estimate of
    Net Sales

 

    	C -1

    	Redactions with respect to certain portions hereof denoted with “***”

    

 

Exhibit
D

 

CONFLICT
OF INTEREST

 

None.Exhibit 10.1

 

MUTUAL RELEASE AND SETTLEMENT AGREEMENT

 

This Mutual
Release and Resolution Agreement (“Agreement”) is entered into and effective as of the date the last
party hereto executes this Agreement (the “Effective Date”), by and among Stanley Hills, LLC, a Nevada
limited liability company (“Stanley”), together with AltCorp Trading, LLC, a Costa Rica limited liability
company (“AltCorp”) and Surge Holdings, Inc., a Nevada corporation n/k/a SurgePays, Inc. (“Surge”),
with Stanley and AltCorp each referred to herein as a “Plaintiff” and collectively as the “Plaintiffs,”
and each above-identified entity referenced herein individually as a “Party” and collectively as the
“Parties,” with respect to the litigation styled as AltCorp Trading, LLC, et al. v. Surge Holdings,
Inc., Case No. A-20-823039-B (the “Action”), pending in Department 13 of the Eighth Judicial District
Court for Clark County, Nevada (the “Court”). This Agreement is made pursuant to that certain Interim
Agreement entered between and among the Parties on December 4, 2020 (the “Interim Agreement”).

 

I. RECITALS

 

This Agreement is made with reference to
the following facts:

 

A. WHEREAS, Surge is
a fully reporting publicly traded company traded on the Over the Counter exchange under the symbol SURG and is registered with
the Securities and Exchange Commission as an issuer of publicly traded securities.

 

B. WHEREAS, VStock
Transfer, LLC, a California limited liability company (“VStock”), is Surge’s sole stock transfer
agent.

 

C. WHEREAS on June
23, 2020, AltCorp, Surge and additional parties entered into an Exchange Agreement (the “Exchange Agreement”),
whereby Surge issued AltCorp five million five hundred thousand (5,500,000) shares of common stock in partial satisfaction of an
outstanding obligation equal to two million seven hundred fifty thousand dollars ($2,750,000) (the “Principal Amount”),
and further reserved twenty-two million (22,000,000) shares (the “Reserve Shares”) for Surge to transfer
to AltCorp, subject to a true-up mechanism, which would guaranty the quantity of Surge common stock shares it received as of June
of 2021 had a value equal to at not less than the Principal Amount.

 

D. Due to alleged material
changes in Surge’s risk profile, alleged defaults under the Exchange Agreement, and decreasing stock prices, in September
of 2020, AltCorp demanded that Surge increase the quantity of Reserve Shares to fifty million (50,000,000) shares of Surge common
stock to assure AltCorp that the shares held in reserve would be sufficient to satisfy the Principal Amount; Surge declined AltCorp’s
requests to increase the number of Reserve Shares without notice.

 

E. WHEREAS, on October
14, 2020, Plaintiffs filed the Complaint against Surge and VStock, commencing the Action.

 

F. WHEREAS, within
the Complaint, Plaintiffs jointly or individually alleged claims for declaratory relief; failure to issue securities pursuant to
NRS Chapter 104, Article 8 et seq.; concert of action; civil conspiracy; tortious interference of contractual relations; tortious
interference of prospective economic advantage; breach of contract; breach of the implied covenant of good faith and fair dealing;
unjust enrichment; fraudulent concealment; and appointment of receiver and injunction, (collectively, the “Plaintiffs’
Claims”) against Surge; Surge denied and continues to deny such allegations.

 

    1

     

    

 

G. WHEREAS, On November
4, 2020, AltCorp filed an Ex Parte Motion to Appoint Receiver and Issue a Temporary Restraining Order on an Order Shortening
Time (the “Receivership Motion”).

 

H. The Court heard
from AltCorp and Surge at the Receivership Motion’s November 12, 2020 hearing on shortened time, and set a briefing schedule
wherein Surge’s opposition to the Receivership Motion would be filed by November 17, 2020, and AltCorp’s reply filed
by November 20, 2020; and the Court would resume its hearing on the Receivership Motion on November 23, 2020.

 

I. WHEREAS, Surge and
AltCorp timely filed their respective opposition and reply briefs, with Surge answering the Complaint on November 17, 2020, and
the Court heard further argument on the Receivership Motion on November 23, 2020

 

J. WHEREAS, On November
25, 2020, the Court entered a minute order (the “Minute Order”) granting in part AltCorp’s Receivership
Motion, approving the appointment of a Receiver, and denying in part the Receivership Motion’s request for injunctive relief.
The Minute Order instructed AltCorp and Surge to submit up to three proposed receivers to the Court by 5:00 p.m. on December 4,
2020, and to submit objections to such suggestions by 5:00 p.m. on December 9, 2020.

 

K. WHEREAS, On December
4, 2020, the Parties entered the Interim Agreement, which set forth the material terms of this Agreement, and the Parties further
notified the Court through a joint letter submitted by their respective counsel that they were pursuing settlement of his matter,
thus requesting that the deadlines set forth in the Minute Order be temporarily suspended.

 

L. WHEREAS, the Parties
without admission of liability desire to compromise and resolve fully and finally all disputes and controversies among them arising
out of, or in any way relating to the Plaintiffs’ Claims in the Action against Surge on the terms and conditions set forth
herein. Surge denies any and all liability under the Plaintiffs’ Claims and asserts that it has viable grounds to appeal
the Court’s determination expressed within its Minute Order. Plaintiffs assert that they have valid claims against Surge
and are entitled to legal damages as well as injunctive and other equitable relief, including the installation of a receiver over
Surge’s business. Nonetheless, in order to avoid the costs of litigation, the Parties have agreed and determined that it
is in each of their best interests to settle and resolve the claims and contentions at issue within the Action as set forth in
this Litigation.

 

M. WHEREAS, the Parties
now enter this Agreement, based on the material terms expressed within the Interim Agreement, to resolve their disputes as follows.

 

    2

     

    

 

II. AGREEMENT

 

For good and valuable consideration, receipt
of which is mutually acknowledged, the Parties, intending to be legally bound by this Agreement, agree as follows:

 

1. Adoption of Recitals.
The recitals set forth above are adopted as part of the agreement of the Parties, and the facts set forth therein are acknowledged
and agreed to be true and correct.

 

2. Surge’s
Payment to Plaintiffs.

 

2.1 As of the Effective
Date, Surge agrees to issue and/or pay to AltCorp and/or its designee shares of its common stock in an amount equal to three million
three hundred thousand dollars ($3,300,000) (the “Payment”) in resolution of the claims against Surge
in this Action which are released hereunder arising from the Exchange Agreement and other agreements with Plaintiffs to which Surge
is a party and are identified within the Complaint. Surge shall treat the Payment in accordance with generally accepted accounting
principles (“GAAP”). The Payment shall be satisfied through the series of issuances of shares of Surge’s
common stock to AltCorp and/or its designee as set forth within this Agreement. The shares shall be issued as unrestricted and
free-trading upon delivery of a legal opinion to Surge. Any legal opinion required in order to remove any restrictive legends from
the shares shall be provided by Surge at its own cost.

 

2.2 Surge may, in its
sole and exclusive discretion, pay in cash to AltCorp and/or its designee the amount necessary to realize the outstanding amount
due of the Payment after subtracting (a) all realized amounts from the prior sales of shares of Monthly Transferred Shares (as
defined below) by AltCorp and/or its designee, and (b) the value of all unsold Monthly Transferred Shares held by AltCorp and/or
its designee, at the time of Surge’s payment to AltCorp. Surge may make this prepayment of the outstanding balance due on
the Payment at any time and without penalty. Prior to Surge’s delivery of any cash amounts to AltCorp pursuant to this Section
2, AltCorp will deliver statements or proofs (in the case of any sales outside the market) to Surge evidencing the aggregate trading
or selling activity, realized amounts from sales of Monthly Transferred Shares, and Monthly Transferred Shares held by AltCorp
and/or its designee.

 

3. Increase of Reserved
Shares. As of the Effective Date and as a condition precedent to the effectiveness hereof, Surge increased the quantity of
the Reserved Shares to thirty-three million (33,000,000) (the “Increased Reserved Shares Quantity”).
For the thirty-three (33) months following the Effective Date, Surge shall not decrease the Increased Reserved Shares Quantity
except as permitted by this Agreement in satisfaction of the obligations created hereunder.

 

4. Surge’s
Transfer of Shares to AltCorp.

 

4.1 Within three (3)
Trading Days of the first (1st) Trading Day of each calendar month after January 8, 2021, (the “Monthly Transfer Deadline”),
for a period of thirty-two (32) months after January 8, 2021, Surge shall irrevocably instruct its transfer agent to transfer to
AltCorp and/or its designee an amount of Surge’s common stock from the Increased Reserved Shares Quantity (the “Monthly
Transferred Shares”) equal in value to one hundred thousand dollars ($100,000) (the “Value Amount”)
per month for the thirty-two (32) months following January 8, 2021.

 

    3

     

    

 

4.2 The Value Amount
of the Monthly Transferred Shares by Surge’s transfer agent to AltCorp and/or its designee shall be equal to the quotient:
(i) one hundred thousand dollars ($100,000) divided by (ii) the volume weighted average price of Surge’s common stock during
the ten (10) trading days immediately preceding the Monthly Transfer Deadline (“VWAP”) (the “Monthly
Valuation”).

 

4.3 The VWAP shall be
as provided by the OTCQB, OTCQX, OTC Pink electronic quotation system or applicable trading market (the “OTC”)
as reported by a reliable reporting service (i.e. Bloomberg) or, if the OTC is not the principal trading market for such security,
the VWAP of such security on the principal securities exchange or trading market where such security is listed or traded. If the
VWAP cannot be calculated for such security in the manner provided herein, Surge shall provide a calculation of the amount of shares
of common stock to be issued to AltCorp and/or its designee as part of the Monthly Transferred Shares. In the event AltCorp and/or
its designee disagrees with Surge’s calculations of any Monthly Valuation or the amount of shares to be transferred as part
of Surge’s Monthly Transferred Shares for particular month, AltCorp and/or its designee shall have two (2) Trading Days to
contest Surge’s calculation of the Monthly Valuation and/or Monthly Transferred Shares upon delivery of written notice to
Surge, which shall include AltCorp and/or its designee’s proposed calculation of the Monthly Valuation and/or the quantity
of Monthly Transferred Shares to be transmitted by Surge to AltCorp and/or its designee. If the Parties cannot thereafter agree
upon the Monthly Valuation and/or quantity of Monthly Transferred Shares for that month, AltCorp and/or its designee and Surge
each agree to allow Surge’s transfer agent to determine the appropriate Monthly Valuation and/or quantity of Monthly Transferred
Shares to be issued to AltCorp and/or its designee as required hereunder.

 

4.4 On or prior to January
8, 2021, Surge shall provide this Agreement to VStock and furnish irrevocable transfer agent instructions to VStock and instruct
VStock to issue shares to AltCorp and/or its designee on a monthly basis consistent with the terms set forth herein. In the event
Surge should use any other transfer agent during the time it owes any obligations hereunder, Surge shall immediately notify such
successor transfer agent(s) of the terms of the Interim Agreement and this Agreement, and furnish irrevocable instructions to such
successor transfer agent(s) to increase the number of Reserve Shares to the Increased Reserved Share Quantity and to issue shares
to AltCorp and/or its designee on a monthly basis consistent with the terms set forth herein.

 

5. Final Reconciliation
of Monthly Transferred Shares and Payment. AltCorp and/or its designee shall deliver monthly brokerage records, trading statements
and/or contracts of other proofs evidencing the trading and sale records of AltCorp (“AltCorp Monthly Statements”)
to Surge via electronic mail within five (5) Trading Days of the date of receipt of Monthly Transferred Shares. At the end of the
thirty-third (33rd) full month after the Effective Date, if AltCorp has not realized gross, pre-tax proceeds at least equal to
the amount of the Payment, Surge shall transfer to AltCorp and/or its designee additional shares of Surge’s common stock
necessary to satisfy the total Payment amount after subtracting (a) all realized amounts from the prior sales of shares of Monthly
Transferred Shares by AltCorp and/or its designee, and (b) the value of all unsold Monthly Transferred Shares held by AltCorp and/or
its designee based on the VWAP methodology and process for contesting the same expressed in Sections 4.2 and 4.3. Any shares Surge
must issue to AltCorp under this Section 5 shall be promptly issued as unrestricted free trading shares of common stock upon Surge’s
receipt of a timely legal opinion indicating the same. Prior to making a demand for additional shares of common stock from Surge
under this Section 5, AltCorp shall deliver any remaining final AltCorp Monthly Statements to Surge which have not previously been
delivered to Surge evidencing AltCorp’s aggregate trading or selling activities of the Monthly Transferred Shares, including
all gross, pre-tax realized amounts derived from AltCorp’s trading of the Monthly Transferred Shares obtained from Surge.
For the avoidance of doubt, if the balance of Increased Reserved Shares Quantity is not sufficient to meet the requirements of
this Section 5, then Surge shall issue additional unrestricted free trading shares (upon Surge’s receipt of a timely legal
opinion indicating the same at its own expense) to AltCorp and/or its designee as needed to effect the purposes of this Section
5.

 

    4

     

    

 

6. Amendment of
Underlying Exchange Agreement. The Exchange Agreement between Surge and AltCorp is deemed to be amended to incorporate the
terms of this Agreement to the extent they amend or alter the terms of the Exchange Agreement. In the event of any conflict between
the terms of the Exchange Agreement and the terms of this Agreement that amend or modify it, the provisions contained within this
Agreement shall govern and prevail.

 

7. Resolution of
the Action. Immediately upon the Effective Date, counsel for the Parties shall notify the Court that the Parties have resolved
Plaintiffs’ Claims in the Action against Surge and that a stipulation and order for dismissal of Surge is forthcoming from
the Parties. Within two (2) Trading Days of the Effective Date, the Parties shall enter a stipulation and order to dismiss only
Plaintiffs’ Claims in the Action against Surge with prejudice, with each party to bear its own attorney’s fees and
costs. Further, the Parties’ stipulation and order shall provide that no receiver shall be appointed in the Action and seek
for the Court to vacate its Minute Order.

 

8. Material Reliance.
Surge acknowledges that Plaintiffs are relying upon the terms of this Agreement and shall be structuring and planning their ongoing
business in reliance upon the issuances of shares contemplated herein, as such, the Parties agree that any default of this Agreement
by Surge or delay in the issuance of shares and contemplated herein will cause Plaintiffs to incur substantial economic damages
and losses of types and in amounts which are impossible to compute and ascertain with certainty as a basis for recovery of actual
damages, and that liquidated damages represent a fair, reasonable and appropriate estimate thereof. Accordingly, in lieu of actual
damages for any such default or delay, Surge agrees that liquidated damages may be assessed and recovered against Surge in the
event of delay or default hereunder, and without Plaintiffs being required to present any evidence of the amount or character of
the actual damages sustained by reason thereof, in the amount of Twenty Thousand Dollars ($20,000) for each calendar day Surge
is delayed in its performance of its obligations hereunder or is in default of this Agreement. Notwithstanding anything contained
herein, the Plaintiffs shall provide Surge with written notice and four (4) business days opportunity to cure prior to imposing
any liquidated damages provided in this Section 8.

 

9. Releases.

 

9.1 Plaintiffs’
Releases. As consideration for this Agreement and as of the Effective Date, Plaintiffs, their successors, heirs, and assigns,
and all representatives, agents, and attorneys of the foregoing, do hereby release, waive, relinquish, disavow and forever discharges
Surge and all of its respective successors, heirs, and assigns, and all employees, representatives, agents, vendors, and attorneys
of the foregoing (collectively, the “Surge Released Parties”), of and from any and all claims, actions,
or causes of action (including, without limitation, any claims for contract or tort damages, punitive damages, misrepresentation,
violation of any law, statute, or administrative regulation, contribution, apportionment, equitable indemnity, express and/or contractual
indemnity, unasserted claims, counter claims, or cross claims, and any other damages or loss or other form of relief), debts, demands,
payments, rights, obligations, loss, judgments, awards, attorneys’ fees, costs, interests, damages, lawsuits, liabilities,
claims for reimbursement for costs or expenses, offsets, counterclaims, and defenses to collection or enforcement, benefits and
causes of action of whatever kind, nature or character, known or unknown, suspected, fixed or contingent, past, present, or future,
in law or in equity, related only to Plaintiffs’ Claims in the Action against Surge. Notwithstanding the foregoing, this
release will not be applicable to the obligations contained in this Agreement.

 

    5

     

    

 

9.2 Surge’s
Releases. As further consideration for this Agreement and as of the Effective Date, Surge, on behalf of its and its successors,
heirs, and assigns, and all employees, representatives, agents, and attorneys of the foregoing, do hereby release, waive, relinquish,
disavow and forever discharge Plaintiffs and all of their successors, heirs, and assigns, and all employees, representatives, agents,
vendors, and attorneys of the foregoing (collectively, the “Plaintiffs’ Released Parties”), of
and from any and all claims, actions, or causes of action (including, without limitation, any claims for contract or tort damages,
punitive damages, misrepresentation, violation of any law, statute, or administrative regulation, contribution, apportionment,
equitable indemnity, express and/or contractual indemnity, unasserted claims, counter claims, or cross claims, and any other damages
or loss or other form of relief), debts, demands, payments, rights, obligations, loss, judgments, awards, attorneys’ fees,
costs, interests, damages, lawsuits, liabilities, claims for reimbursement for costs or expenses, offsets, counterclaims, and defenses
to collection or enforcement, benefits and causes of action of whatever kind, nature or character, known or unknown, suspected,
fixed or contingent, past, present, or future, in law or in equity, related to Plaintiffs’ Claims in the Action against Surge.
Notwithstanding the foregoing, this release will not be applicable to the obligations contained in this Agreement.

 

10. Unknown Claims.
The releases by each Party set forth in Section 9 of this Agreement and its subparts are executed with the full knowledge and understanding
by the Parties that there may be more serious consequences or damages as a result of Plaintiffs’ Claims in the Action against
Surge, which are now not known, and that more serious and permanent consequences may result from Plaintiffs’ Claims in the
Action against Surge. The Parties knowingly, voluntarily, and expressly waive, to the fullest extent permitted by law, any and
all rights they may have under any statute or any common law principle that would limit the effect of the foregoing releases based
upon their knowledge at the time they execute this Agreement. The Parties understand the provisions of this Section 10 and knowingly
and voluntarily enter into this waiver with the intention of executing this Agreement to discharge the Plaintiffs’ Released
Parties and Surge Released Parties, and each other, from Plaintiffs’ Claims in the Action against Surge.

 

11. No Admission
of Liability. This Agreement is intended as a compromise of claims and shall be privileged as such a compromise to the maximum
extent permitted by law. The Parties execute this Agreement with the express intention that this Agreement is not intended and
shall not be construed as an admission of liability by any such Party.

 

    6

     

    

 

12. Mutual Representations
and Warranties. The Parties, and each of them, represent, warrant to, and agree with each other as follows:

 

12.1 Each Party has received
or have had the opportunity to receive independent legal advice from attorneys of his or her choice with respect to the advisability
of making the settlement and release provided herein, and with respect to the advisability of executing this Agreement.

 

12.2 Except as expressly
stated in this Agreement, no Party has made any statement or representation to any other Party regarding any fact relied upon by
any other Party in entering into this Agreement, and each Party specifically does not rely upon any statement, representation,
or promise of any other Party in executing this Agreement, or in making the settlement provided for herein, except as expressly
stated in this Agreement.

 

12.3 Each Party has made
such investigation of the facts pertaining to this settlement and this Agreement, and all the matters pertaining thereto, as each
Party deems necessary.

 

12.4 The terms of this
Agreement are contractual, not a mere recital, and are the result of negotiation among all the Parties.

 

12.5 This Agreement has
been carefully read by, the contents hereof are known and understood by, and it is signed freely by, each Person executing this
Agreement on behalf of a Party; and each Person executing this Agreement on behalf of a Party in a representative capacity is empowered
to do so.

 

12.6 This Agreement has
been drafted by both Parties and is to be construed neutrally and not for or against any Party.

 

12.7 Each Party agrees
that such Party will not take any action which would interfere with the performance of this Agreement by any of the Parties or
which would adversely affect any of the rights provided for herein.

 

13. Individual Representations
and Warranties. One or more Parties to this Agreement make further and specific representations and warranties that are true
and correct as of the Effective Date and shall remain true and correct until the time of performance contemplated under this Agreement
is completed, unless otherwise specified below:

 

13.1 Surge’s
Representations and Warranties.

 

13.1.1 As of the Effective
Date and pursuant to the Interim Agreement, Surge has increased the Reserved Shares held by its transfer agent for the benefit
of AltCorp and/or its designee to the Increased Reserved Share Quantity.

 

13.1.2 Surge’s
Reserved Shares shall be used for the purposes of transferring Monthly Transferred Shares to AltCorp and/or its designee as contemplated
within Section 4 and its subparts hereof.

 

    7

     

    

 

13.1.3 Surge is a corporation
duly organized, validly existing and in good standing under the laws of the State of Nevada, with the requisite power and authority
to own and use its properties and assets and to carry on its business as currently conducted. Surge is not in violation nor default
of any of the provisions of its certificate of incorporation, bylaws or other organizational or charter documents. Surge is duly
qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the
nature of the business conducted or property owned by it makes such qualification necessary, and no claim, action or proceeding
of any kind has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail
such power and authority or qualification.

 

13.1.4 Surge has the
requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and to
otherwise to carry out its obligations hereunder and thereunder. This Agreement have been duly and validly authorized, executed
and delivered on behalf of Surge and shall constitute the legal, valid and binding obligations of Surge enforceable against Surge
in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the
enforcement of applicable creditors’ rights and remedies. The execution, delivery and performance by Surge of this Agreement
and the consummation by Surge of the transactions contemplated hereby and thereby will not: (a) conflict with or violate any provision
of Surge’s or any Subsidiary’s certificate of incorporation, bylaws or other organizational or charter documents; (b)
conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, result
in the creation of any options, contracts, agreements, liens, security interests, or other encumbrances (“Liens”)
upon any of the properties or assets of Surge or any of its Subsidiaries, or give to others any rights of termination, amendment,
acceleration or cancellation of (with or without notice, lapse of time or both), any agreement, credit facility, debt, indenture
or other instrument to which Surge or any of its Subsidiaries is a party or by which any property or asset of Surge or any of its
Subsidiaries is bound or affected; or (c) result in a violation of any law, rule, regulation, order, judgment, decree or other
restriction of any court or governmental authority (including federal and state securities or “blue sky” laws) applicable
to Surge or any of its Subsidiaries or by which any property or asset of Surge or any of its Subsidiaries is bound or affected.

 

13.1.5 The Monthly
Transferred Shares when issued and delivered in accordance with the terms of this Agreement, for the consideration expressed herein,
upon receipt of a legal opinion indicating the same, will be free trading without encumbrances and duly and validly issued, fully
paid and non-assessable.

 

13.1.6 Surge has filed
all reports, schedules, forms, statements and other documents required to be filed by Surge under the Securities Act and the Exchange
Act, including pursuant to Section 13(a) or 15(d) of the Exchange Act, for the two (2) years preceding the date hereof (the foregoing
materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein
as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any
such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material
respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed,
contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The financial
statements of Surge included in the SEC Reports comply in all material respects with applicable accounting requirements and the
rules and regulations of the SEC with respect thereto as in effect at the time of filing. Such financial statements have been prepared
in accordance with GAAP applied on a consistent basis during the periods involved, except as may be otherwise specified in such
financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required
by GAAP, and fairly present in all material respects the financial position of Surge and its consolidated Subsidiaries as of and
for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, immaterial, year-end audit adjustments.

 

    8

     

    

 

13.1.7 Neither Surge,
nor any of its Affiliates, nor any Person acting on its or their behalf, has engaged in any form of general solicitation or general
advertising (within the meaning of Regulation D under the Securities Act) in connection with the offer or sale of any of the shares
of Surge common stock referenced within this Agreement.

 

13.2 AltCorp’s
Representations and Warranties and Covenants.

 

13.2.1 AltCorp has
the power and authority to bind its designee as necessary to make the representations and warranties contemplated under this Section
13.2 for and on behalf of its designee

 

13.2.2 AltCorp and/or
its designee shall limit its trading of Monthly Transferred Shares to seven thousand five hundred dollars ($7,500) per day.

 

13.2.3 AltCorp and/or
its designee shall trade or sell Monthly Transferred Shares using prudent trading strategies, as determined in the sole and exclusive
discretion of AltCorp and/or its designee, so as to minimize any adverse effect on Surge’s share price; these trading strategies
may include, but are not limited to, the use of variable methods for trading Surge’s common stock shares so that any such
trading is not predictable by competitors and trading algorithms.

 

13.2.4 AltCorp and/or
its designee covenants that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with him will execute
any Short Sales of Surge’s shares of common stock or hedging transaction, which establishes a net short position with respect
to Surge’s common stock during the period commencing with the execution of this Agreement and ending upon the end of the
thirty-fourth (34th) month following the Effective Date.

 

13.2.5 This Agreement
has been duly and validly authorized, executed and delivered on behalf of AltCorp and/or its designee and shall constitute the
legal, valid and binding obligation of AltCorp and/or its designee enforceable against AltCorp and/or its designee in accordance
with its terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable
creditors’ rights and remedies. The execution, delivery and performance by AltCorp and/or its designee of this Agreement
and the consummation by AltCorp and/or its designee of the transactions contemplated hereby and thereby will not: (a) conflict
with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to
others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which AltCorp
and/or its designee is a party or by which it is bound; or (b) result in a violation of any law, rule, regulation, order, judgment
or decree (including federal and state securities or “blue sky” laws) applicable to AltCorp and/or its designee.

 

    9

     

    

 

13.2.6 AltCorp and/or
its designee is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D under the Securities
Act. AltCorp and/or its designee can bear the economic risk of its investment in the Shares and has such knowledge and experience
in financial and business matters that he is capable of evaluating the merits and risks of an investment in the shares of Surge
common stock referenced herein.

 

13.2.7 AltCorp and/or
its designee understands that no United States federal or state agency or any other government or governmental agency has passed
on or made any recommendation or endorsement of the Shares or the fairness or suitability of the investment in the Shares nor have
such authorities passed upon or endorsed the merits of the offering of the Shares.

 

14. Modification
and Counterpart Copies. This Agreement may only be changed or modified by a written instrument executed by all the Parties,
and any oral modification hereof shall be ineffective until reduced to such a writing. No covenants, agreements, representations,
or warranties of any kind whatsoever have been made by any Party, except as specifically set forth in this Agreement. All prior
discussion and negotiations have been and are merged and integrated into, and are superseded by, this Agreement. So long as both
Parties execute this Agreement, a copy of this Agreement, whether signed by one Party or both parties, shall have the same force,
effect, and validity as an original Agreement executed by both Parties.

 

15. Attorneys’
Fees. Each Party shall bear its own attorney’s fees and costs related to the resolution of the Action, the negotiation
and drafting of the Interim Agreement and this Agreement, and any other matters related to the settlement contemplated within and
memorialized by this Agreement. Notwithstanding the foregoing, in the event suit is brought or an attorney is retained by any Party
to this Agreement to enforce its terms, or to collect any damages due for breach hereof, each Party shall be solely and exclusively
responsible for its own attorneys’ fees, court costs, costs of investigation, and other related expenses incurred in connection
therewith. The Parties acknowledge and agree that each Party shall bear their own attorney fees, court costs, and other expenses
that pertain in any way to the Dispute, the matters released above, and/or the negotiations for and the drafting of this Agreement.

 

16. Caption and
Titles. The captions and titles contained in this Agreement are inserted herein only as a matter of convenience and for reference
and in no way define, limit, extend, or describe the scope of this Agreement or the intent of any provision hereof.

 

17. Construction
of Agreement. Each of the Parties has read and agreed to the terms of the Agreement after consulting with counsel, and the
language of this Agreement shall, therefore, not be presumptively construed either in favor of or against any of the Parties.

 

    10

     

    

 

18. Governing Law
and Forum. This Agreement shall be construed under, governed, and enforced in all respects, including interpretation, by the
substantive laws of the State of Nevada without regard to Nevada’s choice-of-law provisions. In the event any Party seeks
to enforce this Agreement or assert a claim for breach, each of the Parties hereby expressly consents to the exclusive jurisdiction
of federal and state courts sitting in Clark County, Nevada to enforce the terms of this Agreement and to remedy any violation
thereof, and the Parties consent to personal jurisdiction in such courts and waive any objection based on personal jurisdiction
grounds or the doctrine of forum non conveniens.

 

19. Parties Bound.
This Agreement shall be binding upon and inure to the benefit of the Parties, their respective agents, attorneys, executors, guardians,
companies and Affiliates, partners, members, managers, officers, employees, heirs, successors, and assigns.

 

20. Assignment.
Upon written notice to Surge, AltCorp may assign its rights to receive Monthly Transferred Shares hereunder without Surge’s
consent, provided that such assignee shall sign consent to limit its trading consistent with the terms of this Agreement and be
an “accredited investor” as that term is defined in Rule 501(a) of Regulation D under the Securities Act, in which
event such assignee shall be deemed to stand in the place of AltCorp with respect to such specific assigned rights and have made
and affirmed the representations contained within Sections 12 and 13.2 hereof to Surge.

 

21. Relationship
of Parties. Nothing in this Agreement shall be deemed or construed to constitute or create any agency, partnership, or affiliation
agreement among or between any of the Parties; no Party shall have any power to obligate or bind the other Party in any manner
whatsoever.

 

22. Purpose and
Effect of Agreement. This Agreement is being entered into in compromise and resolution of claims, and nothing contained herein
shall be deemed or construed to be an admission or acknowledgment of liability.

 

23. Waiver.
No waiver by either Party of a breach or a default hereunder shall be deemed a waiver of a subsequent breach or default of a like
or similar nature.

 

24. Currency.
All statements of monetary value expressed within this Agreement shall be in United States Dollars unless otherwise specified.

 

25. Severability.
If any term, clause, or provision hereof is held invalid or unenforceable by a court of competent jurisdiction, such invalidity
shall not affect the validity or operation of any other term, clause, or provision and such invalid term, clause, or provision
shall be deemed to be severed from the Agreement.

 

26. Definitions.
For the purposes of this Agreement, the capitalized terms uses herein not previously defined shall have the following meanings:

 

26.1 “Affiliate”
means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common
control with, such Person, it being understood for purposes of this definition that “control” of a Person means the
power directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the election of directors
of such Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

 

26.2 “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity or a government or any department or agency thereof.

 

    11

     

    

 

26.3 “Securities
Act” means the Securities Act of 1933, as amended.

 

26.4 “Short
Sale” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act.

 

26.5 “Trading
Day” means, as applicable, (a) with respect to all price or trading volume determinations relating to Surge’s
common stock, any day on which such stock is traded on the OTC market or such other market where Surge’s shares of common
stock may be traded, or, if the OTC market is not the principal trading market for the Common Stock, then on the principal securities
exchange or securities market on which Surge’s shares of common stock are then traded, provided that “Trading Day”
shall not include any day on which Surge’s common stock is scheduled to trade on such exchange or market for less than 4.5
hours or any day that Surge’s common stock is suspended from trading during the final hour of trading on such exchange or
market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then
during the hour ending at 4:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in writing by the
Investor or (b) with respect to all determinations other than price determinations relating to the Common Stock, any day on which
The New York Stock Exchange (or any successor thereto) is open for trading of securities.

 

Signature page follows.

 

    12

     

    

 

IN WITNESS WHEREOF,
the undersigned have duly executed this Agreement to be effective as of the Effective Date.

 

	STANLEY HILLS, LLC	 	 	 
	 	 	 	 
	 	 	 	 
	By: Yossi Attia, Manager	 	Date	 
	 	 	 	 
	 	 	 	 
	ALTCORP TRADING, LLC	 	 	 
	 	 	 	 
	 	 	 	 
	By: Mauricio Lara, Manager	 	Date	 
	 	 	 	 
	 	 	 	 
	SURGE HOLDINGS, INC. n/k/a SURGEPAYS, INC.	 	 	 
	 	 	 	 
	 	 	 	 
	By: Brian Cox, Chief Executive Officer	 	Date	 

 

    13

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