Document:

Exhibit 10.16

 

 

 

Amendment
Agreement

to

Assignment
and transfer agreement

 

 

 

(“Amendment Agreement”)

 

dated

 

April
10, 2017

 

between

 

NEUROLIFESCIENCES
SAS, 1, rue de Stockholm, 75008 Paris, France

(“Assignor” or “NLS
FRANCE”)

 

and

 

nls-1
pharma ag, Breitenweg 10, 6370 Stans, Switzerland

(“Assignee” or “NLS-1”)

 

(together, the “Parties”)

 

relating to

 

the assignment and transfer of rights
and obligations under a licence agreement

 

     

     

    

 

WHEREAS:

 

		(1)	The Parties entered into an assignment and transfer agreement, dated August 31, 2015 (“Assignment
and Transfer Agreement” or “ATA”), according to which Assignor assigned and transferred to the Assignee
all of its rights, titles, interest and obligations (in particular all rights related to the licence of patents and the purchase
option right) under or in connection with a licence agreement with Assistance Publique Hôpitaux de Paris, Paris, France,
dated February 12, 2015 (“Contractual Rights”);

 

		(2)	As stipulated in the ATA, the Parties agreed to a consideration of EUR 125’000, which the
Parties mutually understand to reflect an execution payment (“Execution Payment”) for the assignment and transfer
of the Contractual Rights;

 

		(3)	The Parties then engaged in the determination of an arm’s length remuneration for the transfer
of the Contractual Rights based on the information available at the date of transfer and in accordance with the OECD Transfer Pricing
Guidelines;

 

		(4)	Based on an independent valuation of the Contractual Rights by Baker & McKenzie SCP, Paris
the parties defined additional, conditional considerations upon achievement of certain events (“Milestone Payments”)
that reflect the value of the Contractual Rights at the time of transfer, taking into account the timing and probability of each
predefined event (“Milestone”);

 

		(5)	The Parties mutually agree on the validity of the valuation approach and on the appropriateness
of the additional consideration in the form of Milestone Payments, and further accept that the agreed consideration is exhaustive
and final, whether or not one or all of the Milestones as defined in this agreement are actually achieved at a later point in time;

 

NOW, THEREFORE,
IN CONSIDERATION OF THE PREMISES ABOVE, THE PARTIES HERETO AGREE AS FOLLOWS:

 

		1.	Confirmation regarding Sections 1 and 2 of the Assignment and Transfer Agreement

 

The Parties
herewith confirm that (i) the Execution Payment has been made and received, (ii) all the conditions laid down in the Assignment
and Transfer Agreement were fulfilled and (iii) the assignment and transfer set forth in art. 1 of the ATA has become fully effective.

 

    2

     

    

 

		2.	Amendement of Section 1 of THE ASSIGNMENT AND TRANSFER AGREEMENT: Milestone Payments

 

		2.1	In addition to the Execution Payment as set forth in Section 1 of the ATA, Assignor shall be entitled
to certain Milestone Payments to be paid by Assignee to Assignor in recognition of the assignment and transfer of the rights as
set forth in the ATA.

 

		2.2	The following Milestones and respective Milestone Payments are agreed between the Parties:

 

		(a)	A first Milestone Payment contingent upon successful completion of phase 3, amounting to EUR 6’000’000.00
(six million euros);

 

		(b)	A second Milestone Payment contingent upon successful filing of a complete registration application
with the first relevant regulatory authority of a country of choice by the Assignee, amounting to EUR 6’000’000.00
(six million euros); and

 

		(c)	A third Milestone Payment contingent upon the first successful granting of marketing authorization
in any given country, amounting to EUR 28’000’000.00 (twenty-eight million euros).

 

		2.3	The Parties mutually agree on the validity of the valuation approach and on the appropriateness
of the additional consideration in the form of Milestone Payments, and further accept that the agreed consideration is exhaustive
and final, whether or not one or all of the Milestones as defined in this agreement are actually achieved at a later point in time.

 

		2.4	In this context, “successful completion of phase 3” means the confirmation of reaching
the goals defined in the development plan of NLS-1; “registration application” means the complete set of information
to be submitted to the relevant regulatory authority and “marketing authorization” means all applicable licenses and
governmental approvals that may be necessary to permit the commercialization of the products.

 

		2.5	The Assignee shall notify the Assignor within thirty (30) days of reaching a Milestone and shall
make the respective Milestone Payment to the Assignor within ninety (90) days after such notification to an account to be indicated
by Assignor.

 

		2.6	The Assignee may elect at any time and in its own discretion to fully or partially advance the
settlement of all remaining of the aforesaid Milestone Payments.

 

		3.	No further Changes

 

Other than
as set forth herein, no further amendments shall be made to the ATA and the ATA shall remain in full force and effect. NLS FRANCE
herewith repeats for the benefit of the Assignee the representation and warranties set forth in the ATA.

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		4.	governing law and jurisdiction

 

		4.1	This Amendment Agreement shall, in all respects be governed by and construed in accordance with
Swiss law.

 

		4.2	All disputes arising out of or in connection with this Amendment Agreement, including disputes
regarding its conclusion, validity, binding effect, amendment, breach, termination or rescission shall be subject to the exclusive
jurisdiction of the ordinary courts of Zurich, canton of Zurich, Switzerland, venue being Zurich 1.

 

IN WITNESS WHEREOF, the Parties have
signed this Agreement on the date first written above

 

	NeuroLifeSciences SAS	 
	 	 
	/s/ Eric-Jean Desbois	 
	Eric-Jean Desbois	 
	 	 
	NLS-1 Pharma AG	 
	 	 
	/s/ Ronald Hafner	 
	Ronald Hafner	 
	 	 
	/s/ Alexander Zwyer	 
	Alexander Zwyer	 

 

 

4Exhibit 10.17

 

Execution Version

 

 

 

Second Amendment
Agreement

to

Assignment
and transfer agreement

 

 

 

(“Second Amendment Agreement”)

 

dated

 

September
20, 2019

 

between

 

Pegasus
Advanced Research SAS (formerly: Neurolifesciences SAS), 1, rue de Stockholm, 75008 Paris, France

(“Assignor” or “PEGASUS”)

 

and

 

NLS
Pharmaceutics AG (formerly: NLS-1 Pharma AG), Alter Postplatz 2, 6370 Stans, Switzerland

(“Assignee” or “NLS
AG”)

 

(together, the “Parties”)

 

relating to

 

the assignment and transfer of rights
and obligations under a licence agreement

 

    1

     

    

 

WHEREAS:

 

	(1)	PEGASUS changed its legal name from Neurolifesciences SAS to Pegasus Advanced Research SAS on August 5, 2019;
	 	 
	(2)	NLS AG changed its legal name from NLS-1 Pharma AG to NLS Pharmaceutics AG on March 12, 2019;
	 	 
	(3)	The Parties entered into an assignment and transfer agreement, dated August 31, 2015 (“Assignment and Transfer Agreement” or “ATA”), according to which Assignor assigned and transferred to the Assignee all of its rights, titles, interest and obligations (in particular all rights related to the licence of patents and the purchase option right) under or in connection with a licence agreement with Assistance Publique Hôpitaux de Paris, Paris, France, dated February 12, 2015 (“Contractual Rights”);
	 	 
	(4)	The Parties amended the ATA by an Amendment Agreement to Assignment and Transfer Agreement, dated April, 10, 2017 (“Amendment Agreement”) in order to specify the execution agreement and as well as the arm’s length remuneration for the transfer of the Contractual Rights based on an independent valuation by Baker & McKenzie SCP, Paris;
	 	 
	(5)	The parties, in their Amendment Agreement, defined additional, conditional considerations upon achievement of certain events (“Milestone Payments”) that reflected the anticipated value of the Contractual Rights at the time of transfer, taking into account the timing and probability of each predefined event (“Milestone”);
	 	 
	(6)	The parties note, that no Milestone has been reached so far due to external circumstances leading to a significant delay in the possible launch of the products covered by the Contractual Rights (not foreseen before 2024-2025).
	 	 
	(7)	In view of the delays, the parties now mutually agree in this Second Amendment Agreement to Assignment and Transfer Agreement (“Second Amendment Agreement”), to revise the arm’s length remuneration to a royalty fee on sales (“Royalty”) in order to reflect the changed circumstances;

 

    2

     

    

 

NOW, THEREFORE,
IN CONSIDERATION OF THE PREMISES ABOVE, THE PARTIES HERETO AGREE AS FOLLOWS:

 

	1.	AMENDMENT of Section 1 of THE ASSIGNMENT AND TRANSFER AGREEMENT As Amended by the Amendment agreement: Royalty

 

	1.1	In addition to the Execution Payment as set forth in Section 1 of the ATA, Assignor shall only be entitled to a Royalty to be paid by Assignee to Assignor in recognition of the assignment and transfer of the rights as set forth in the ATA.
	 	 
	1.2	The Parties agree on a Royalty of 1.8% of annual net sales (including sublicensee sales) realized upon the commercialization of products developed on the basis of the Contractual Rights during their use patent lifetime.

 

“Net
Sales” means the aggregate amount collected by NLS AG in respect of the sale of the products developed on the basis of the
Contractual Rights over the life time of its use patent after making reasonable deductions therefrom for discounts (including cash
discounts and quantity discounts), cash and non-cash coupons, credit-notes, charge-back payments, free of charge products and rebates,
as well as credits or allowances actually granted upon claims, damaged goods, rejections or returns
of such products, including any such products returned in connection with recalls or withdrawals included in any invoice
price, provided that in any case where the products are (a) directly or indirectly by NLS AG to any member of the NLS Group or
(b) are sold other than on arm’s length terms, then the Net Sales value shall be calculated by reference to the higher of
the (i) highest price at which any such sale of the products took place under (a) or (b) above and (ii) the price at which such
products are ultimately disposed of in an arm’s length transaction to an unconnected third party.

 

“NLS
Group” means a member of the group consisting in NLS AG and any other entity owned by NLS AG, or owned by NLS AG, or having
a common shareholder than NLS AG, in each case at more than 50% in terms of voting and economic rights, and any other entity considered
as a related party under Article 57 of the French tax code.

 

		1.3	The Parties further agree to reduce the agreed Royalty by half to 0.9% of annual net sales in the
case of an issuance of a revised Notice of Allowance by the United States Patent and Trademark Office or any other measure limiting
a valid patent claim with regard to the Contractual Rights during their use patent lifetime.

 

		1.4	Finally, the parties agree that no Royalty should be due upon the launch of a competing generic
product during the use patent lifetime with regard to the Contractual Rights, effectively reducing the Royalty to nil.

 

“Competing
Generic Product” means, with respect to the Contractual Rights, any product containing mazindol as active ingredient indicated
for the treatment of Attention Deficit Hyperactivity Disorders, or ADHD, commercialized in any of the territories covered by the
use patent of mazindol for ADHD included in the Contractual Rights

 

For the avoidance
of doubt, the sole proprietorship in the Contractual Right shall still have transferred from Assignee to Assignor in their entirety.

 

		2.	No further Changes

 

Other than
as set forth herein, no further amendments shall be made to the ATA (as revised by the Amendment Agreement) and the ATA shall remain
in full force and effect (with the exception of the amendment of Section 1 as set out above).

 

    3

     

    

 

		3.	governing law and jurisdiction

 

		3.1	This Second Amendment Agreement shall in all respects be governed by and construed in accordance
with Swiss law.

 

		3.2	All disputes arising out of or in connection with this Second Amendment Agreement, including disputes
regarding its conclusion, validity, binding effect, amendment, breach, termination or rescission shall be subject to the exclusive
jurisdiction of the ordinary courts of Zurich, Canton of Zurich, Switzerland, venue being Zurich 1.

 

IN WITNESS WHEREOF, the Parties have
signed this Agreement on the date first written above

 

	Pegasus Advanced Research SAS	 
	 	 
	/s/ Eric-Jean Desbois	 
	Eric-Jean Desbois – Président	 
	 	 
	NLS Pharmaceutics AG	 
	 	 
	/s/ Ronald Hafner	 
	Ronald Hafner—Chairman of the Board	 
	 	 
	/s/ Alexander Zwyer	 
	Alexander Zwyer – CEO	 

 

 

4

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