Document:

Form of Warrant

 Exhibit 4.4 
  

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY OTHER APPLICABLE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED
BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA
FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES 
  
 COMMON STOCK PURCHASE WARRANT 
  
 To Purchase
             Shares of Common Stock of 
  
 IRVINE SENSORS CORPORATION 
  
 THIS COMMON STOCK PURCHASE WARRANT CERTIFIES that, for value received,              (the “Holder”), is entitled, upon the terms and
subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after September     , 2003 (the “Initial Exercise Date”) and on or prior to 6:00 p.m. Pacific Time on the
fifth annual anniversary of the Initial Exercise Date (the “Termination Date”) but not thereafter, to subscribe for and purchase from Irvine Sensors Corporation, a Delaware corporation (the “Company”), up to
             shares (the “Warrant Shares”) of common stock, par value $0.01 per share, of the Company (the “Common Stock”). The purchase price of
one Warrant Share (the “Exercise Price”) under this Warrant shall be $            , subject to adjustment hereunder. The Exercise Price and the number of
Warrant Shares for which the Warrant is exercisable shall be subject to adjustment as provided herein. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement (the
“Purchase Agreement”), dated September     , 2003, between the Company and the investors signatory thereto. 
  

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 1. Title to Warrant. Prior to the Termination Date and subject to compliance with applicable laws
and Section 7 of this Warrant, this Warrant and all rights hereunder are transferable, in whole or in part, at the office or agency of the Company by the Holder in person or by duly authorized attorney, upon surrender of this Warrant together with
the Assignment Form annexed hereto properly endorsed. The transferee shall sign an investment letter in form and substance reasonably satisfactory to the Company. 
  
 2. Authorization of Shares. The Company covenants that all Warrant Shares which may be issued upon the exercise of
the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges in respect of the
issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). 
  
 3. Exercise of Warrant. 
  
 (a) Except as provided in Section 4 herein, exercise of the purchase rights represented by this Warrant may be made at any time or times
on or after the Initial Exercise Date and on or before the Termination Date by the surrender of this Warrant and the Notice of Exercise Form annexed hereto duly executed, at the office of the Company (or such other office or agency of the Company as
it may designate by notice in writing to the registered Holder at the address of such Holder appearing on the books of the Company) and upon payment of the Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn
on a United States bank or by means of a cashless exercise pursuant to Section 3(d), the Holder shall be entitled to receive a certificate for the number of Warrant Shares so purchased. Certificates for shares purchased hereunder shall be delivered
to the Holder within five (5) Trading Days after the date on which this Warrant shall have been exercised as aforesaid. This Warrant shall be deemed to have been exercised and such certificate or certificates shall be deemed to have been issued, and
the Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised by payment to the Company of the Exercise Price and all
taxes required to be paid by the Holder, if any, pursuant to Section 5 prior to the issuance of such shares, have been paid. If the Company fails to deliver to the Holder a certificate or certificates representing the Warrant Shares pursuant to this
Section 3(a) by the close of business on the seventh Trading Day after the date of exercise, then the Holder will have the right to rescind such exercise. In addition to any other rights available to the Holder, if the Company fails to deliver to
the Holder a certificate or certificates representing the Warrant Shares pursuant to an exercise by the close of business on the seventh Trading Day after the date of exercise, and if after such seventh Trading Day the Holder is required by its
broker to purchase (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”),
then the Company shall (1) pay in cash to the Holder the amount by which (x) the Holder’s total 
  

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purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the
number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (B) the price at which the sell order giving rise to such purchase obligation was executed, and (2) at the option of the
Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely
complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an
aggregate sale price giving rise to such purchase obligation of $10,000, under clause (1) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating
the amounts payable to the Holder in respect of the Buy-In, together with applicable confirmations and other evidence reasonably requested by the Company. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it
hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of
the Warrant as required pursuant to the terms hereof. 
  
 (b) If this Warrant shall have been exercised in part, the Company shall, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase
the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. 
  
 (c) The Company shall not effect any exercise of this Warrant, and the Holder shall not have the right to exercise any portion of this
Warrant, pursuant to Section 3(a) or otherwise, to the extent that after giving effect to such issuance after exercise, the Holder (together with the Holder’s affiliates), as set forth on the applicable Notice of Exercise, would beneficially
own in excess of 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to such issuance. For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its
affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude the number of shares of Common Stock which would be
issuable upon (A) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its affiliates and (B) exercise or conversion of the unexercised or nonconverted portion of any other securities of the
Company (including, without limitation, any other Warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its affiliates. Except as set forth in the
preceding sentence, for purposes of this Section 3(c), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act. To the extent that the limitation contained in this 

  

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Section 3(c) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder) and of which a portion
of this Warrant is exercisable shall be in the sole discretion of such Holder, and the submission of a Notice of Exercise shall be deemed to be such Holder’s determination of whether this Warrant is exercisable (in relation to other securities
owned by such Holder) and of which portion of this Warrant is exercisable, in each case subject to such aggregate percentage limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. For purposes
of this Section 3(c), in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the Company’s most recent Form 10-Q or Form 10-K, as the case may
be, (y) a more recent public announcement by the Company or (z) any other more recent notice by the Company or the Company’s Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of the
Holder, the Company shall within three Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving
effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The provisions of this Section 3(c)
may be waived by the Holder upon, at the election of the Holder, not less than 61 days’ prior notice to the Company, and the provisions of this Section 3(c) shall continue to apply until such 61st day (or such later date, as determined by the Holder, as may be specified in such notice of waiver). 
  
 (d) If, but only if, at any time after one year from the
date of issuance of this Warrant there is no effective Registration Statement registering the resale of the Warrant Shares by the Holder, this Warrant may also be exercised at such time by means of a “cashless exercise” in which the Holder
shall be entitled to receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where: 
  
 (A) = the average of the 5 Closing Prices immediately preceding such election; 
  
 (B) = the Exercise Price of the Warrants, as adjusted; and 
  
 (X) = the number of Warrant Shares issuable upon exercise of the
Warrants in accordance with the terms of this Warrant. 
  
 4. No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Company shall pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price. 
  

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 5. Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without
charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the
Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for
exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder; and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.

  
 6. Closing of Books. The Company will not close its
stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof. 
  
 7. Transfer, Division and Combination. 
  
 (a) Subject to compliance with any applicable securities laws and the conditions set forth in Sections 1 and 7(e) hereof and to the
provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company, together with a written assignment of this
Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the
Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the
portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. A Warrant, if properly assigned, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.  
  
 (b) This Warrant may be divided or combined with other
Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to
compliance with Section 7(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice. 
  
 (c) The Company shall
prepare, issue and deliver at its own expense (other than transfer taxes) the new Warrant or Warrants under this Section 7. 
  
 (d) The Company agrees to maintain, at its aforesaid office, books for the registration and the registration of transfer of the Warrants.

  
 (e) If, at the time of the surrender of this
Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be registered pursuant to an effective registration statement under the Securities Act and under 
  

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applicable state securities or blue sky laws, the Company may require, as a condition of allowing such transfer (i) that the Holder or transferee of this
Warrant, as the case may be, furnish to the Company a written opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions and reasonably satisfactory to the Company) to the
effect that such transfer may be made without registration under the Securities Act and under applicable state securities or blue sky laws, (ii) that the holder or transferee execute and deliver to the Company an investment letter in form and
substance acceptable to the Company and (iii) that the transferee be an “accredited investor” as defined in Rule 501(a) promulgated under the Securities Act. 
  
 8. No Rights as Shareholder until Exercise. This Warrant does not entitle the Holder to any voting rights or other
rights as a shareholder of the Company prior to the exercise hereof. Upon the surrender of this Warrant and the payment of the aggregate Exercise Price (or by means of a cashless exercise), the Warrant Shares so purchased shall be and be deemed to
be issued to such Holder as the record owner of such shares as of the close of business on the later of the date of such surrender or payment. 
  
 9. Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to
it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the
Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate. 
  
 10. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a Saturday, Sunday or a legal holiday, then such action may be taken
or such right may be exercised on the next succeeding day not a Saturday, Sunday or legal holiday. 
  
 11. Adjustments of Exercise Price and Number of Warrant Shares. 
  
 (a) Stock Splits, etc. The number and kind of securities purchasable upon the exercise of this
Warrant and the Exercise Price shall be subject to adjustment from time to time upon the happening of any of the following. In case the Company shall (i) pay a dividend in shares of Common Stock or make a distribution in shares of Common Stock to
holders of its outstanding Common Stock, (ii) subdivide its outstanding shares of Common Stock into a greater number of shares, (iii) combine its outstanding shares of Common Stock into a smaller number of shares of Common Stock, or (iv) issue any
shares of its capital stock in a reclassification of the Common Stock, then the number of Warrant Shares purchasable upon exercise of this Warrant immediately prior thereto shall be adjusted so that the Holder shall be entitled to receive the kind
and number of Warrant Shares or other securities of the Company which it would have owned or have been entitled to receive had such Warrant been exercised in 

  

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advance thereof. Upon each such adjustment of the kind and number of Warrant Shares or other securities of the Company which are purchasable hereunder, the
Holder shall thereafter be entitled to purchase the number of Warrant Shares or other securities resulting from such adjustment at an Exercise Price per Warrant Share or other security obtained by multiplying the Exercise Price in effect immediately
prior to such adjustment by the number of Warrant Shares purchasable pursuant hereto immediately prior to such adjustment and dividing by the number of Warrant Shares or other securities of the Company resulting from such adjustment. An adjustment
made pursuant to this paragraph shall become effective immediately after the effective date of such event retroactive to the record date, if any, for such event. 
  
 (b) Anti-Dilution Provisions. During the period commencing on the Initial Exercise Date and ending on
the first anniversary of the Initial Exercise Date, the Exercise Price and the number of Warrant Shares issuable hereunder and for which this Warrant is then exercisable pursuant to Section 1 hereof shall be subject to adjustment from time to time
as provided in this Section 11(b). In the event that any adjustment of the Exercise Price as required herein results in a fraction of a cent, such Exercise Price shall be rounded up or down to the nearest cent. 
  
 (i) Adjustment of Exercise Price. Except as set forth
in Section 11(b)(ii)(E), if and whenever the Company issues or sells, or in accordance with Section 11(b) hereof is deemed to have issued or sold, any shares of Common Stock (other than Excluded Shares) for an effective consideration per share of
less than the then Exercise Price or for no consideration (such lower price, the “Base Share Price” and such issuances collectively, a “Dilutive Issuance”), then, the Exercise Price shall be reduced to equal the
Base Share Price. Such adjustment shall be made whenever such shares of Common Stock or Convertible Securities (as defined below). 
  
 (ii) Effect on Exercise Price of Certain Events. For purposes of determining the adjusted Exercise Price under Section 11(b)
hereof, the following will be applicable: 
  
 (A) Issuance of Rights or Options. If the Company in any manner issues or grants any warrants, rights or options, whether or not immediately exercisable, to subscribe for or to purchase Common Stock or other securities exercisable,
convertible into or exchangeable for Common Stock (“Convertible Securities”) (such warrants, rights and options to purchase Common Stock or Convertible Securities are hereinafter referred to as “Options”) and the
effective price per share for which Common Stock is issuable upon the exercise of such Options is less than the Exercise Price (“Below Base Price Options”), then the maximum total number of shares of Common Stock issuable upon the
exercise of all such Below Base Price Options (assuming full exercise, conversion or exchange of Convertible Securities, if applicable) will, as of the date of 

  

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the issuance or grant of such Below Base Price Options, be deemed to be outstanding and to have been issued and sold by the Company for such price per share
and the maximum consideration payable to the Company upon such exercise (assuming full exercise, conversion or exchange of Convertible Securities, if applicable) will be deemed to have been received by the Company. For purposes of the preceding
sentence, the “effective price per share for which Common Stock is issuable upon the exercise of such Below Base Price Options” is determined by dividing (i) the total amount, if any, received or receivable by the Company as consideration
for the issuance or granting of all such Below Base Price Options, plus the minimum aggregate amount of additional consideration, if any, payable to the Company upon the exercise of all such Below Base Price Options, plus, in the case of Convertible
Securities issuable upon the exercise of such Below Base Price Options, the minimum aggregate amount of additional consideration payable upon the exercise, conversion or exchange thereof at the time such Convertible Securities first become
exercisable, convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the exercise of all such Below Base Price Options (assuming full conversion of Convertible Securities, if applicable). No further
adjustment to the Exercise Price will be made upon the actual issuance of such Common Stock upon the exercise of such Below Base Price Options or upon the exercise, conversion or exchange of Convertible Securities issuable upon exercise of such
Below Base Price Options. 
  
 (B) Issuance of
Convertible Securities. If the Company in any manner issues or sells any Convertible Securities, whether or not immediately convertible (other than where the same are issuable upon the exercise of Options) and the effective price per share for
which Common Stock is issuable upon such exercise, conversion or exchange is less than the Exercise Price, then the maximum total number of shares of Common Stock issuable upon the exercise, conversion or exchange of all such Convertible Securities
will, as of the date of the issuance of such Convertible Securities, be deemed to be outstanding and to have been issued and sold by the Company for such price per share and the maximum consideration payable to the Company upon such exercise
(assuming full exercise, conversion or exchange of Convertible Securities, if applicable) will be deemed to have been received by the Company. For the purposes of the preceding sentence, the “effective price per share for which Common Stock is
issuable upon such exercise, conversion or exchange” is determined by dividing (i) the total amount, if any, received or receivable by the Company as consideration for the issuance or sale of all such Convertible Securities, plus the minimum
aggregate amount of additional consideration, if any, payable to the Company upon the exercise, conversion or exchange thereof at the time such Convertible 
  

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Securities first become exercisable, convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the exercise,
conversion or exchange of all such Convertible Securities. No further adjustment to the Exercise Price will be made upon the actual issuance of such Common Stock upon exercise, conversion or exchange of such Convertible Securities. 
  
 (C) Change in Option Price or Conversion Rate. If
there is a change at any time in (i) the amount of additional consideration payable to the Company upon the exercise of any Options; (ii) the amount of additional consideration, if any, payable to the Company upon the exercise, conversion or
exchange of any Convertible Securities; or (iii) the rate at which any Convertible Securities are convertible into or exchangeable for Common Stock (in each such case, other than under or by reason of provisions designed to protect against
dilution), the Exercise Price in effect at the time of such change will be readjusted to the Exercise Price which would have been in effect at such time had such Options or Convertible Securities still outstanding provided for such changed
additional consideration or changed conversion rate, as the case may be, at the time initially granted, issued or sold. 
  
 (D) Calculation of Consideration Received. If any Common Stock, Options or Convertible Securities are issued, granted or sold for
cash, the consideration received therefor for purposes of this Warrant will be the amount received by the Company therefor, before deduction of reasonable commissions, underwriting discounts or allowances or other reasonable expenses paid or
incurred by the Company in connection with such issuance, grant or sale. In case any Common Stock, Options or Convertible Securities are issued or sold for a consideration part or all of which shall be other than cash, the amount of the
consideration other than cash received by the Company will be the fair market value of such consideration, except where such consideration consists of securities, in which case the amount of consideration received by the Company will be the fair
market value (closing bid price, if traded on any market) thereof as of the date of receipt. In case any Common Stock, Options or Convertible Securities are issued in connection with any merger or consolidation in which the Company is the surviving
corporation, the amount of consideration therefor will be deemed to be the fair market value of such portion of the net assets and business of the non-surviving corporation as is attributable to such Common Stock, Options or Convertible Securities,
as the case may be. The fair market value of any consideration other than cash or securities will be determined in good faith by an investment banker or other appropriate expert of national reputation selected by the Company and reasonably
acceptable to the holder hereof, with the costs of such appraisal to be borne by the Company. 
  

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 (D) Expiration or Termination. Upon the expiration or termination of any such
Options or Convertible Securities and 5 Trading Days’ prior written notice to the Holder, the Exercise Price, to the extent in any way affected by or computed using such Options or Convertible Securities, shall be recomputed to reflect the
issuance of only the number of shares of Common Stock (and convertible or exchangeable securities which remain in effect) actually issued upon the exercise, conversion or exchange of such Options or Convertible Securities. 
  
 (E) Exceptions to Adjustment of Exercise Price.
Notwithstanding anything to the contrary herein, this Section 11(b) shall not apply to the issuance of any Excluded Shares. “Excluded Shares” shall mean any shares of Common Stock, Convertible Securities or Options: 
  
 (1) issuable or issued upon the conversion of the Series E
Preferred Stock outstanding as of the Initial Exercise Date; 
  
 (2) issuable or issued upon the exercise or conversion of exercisable or convertible securities (including options and warrants) outstanding as of the Initial Exercise Date; 
  
 (3) issuable or issued pursuant to a transaction requiring
an adjustment pursuant to Section 11(a) hereof; 
  
 (4) issuable or issued to employees, officers, key consultants or directors of the Company or persons having a professional relationship with or providing services to the Company pursuant to an existing stock option plan or stock issuance
plan or pursuant to another plan, arrangement or agreement approved by the Board of Directors of the Company; 
  
 (5) issued in connection with a bona fide acquisition of technology by the Company or a bona fide business acquisition of or by the
Company, whether by merger, consolidation, sale of assets, sale or exchange of stock, license or otherwise, that have been approved by the Board; 
  
 (6) issued in connection with real or personal property leases, bank credit arrangements or similar transactions or to persons or
entities with whom or with which the Company has business relationships (including strategic investments), provided such issuances are for other than primarily equity financing purposes and are approved by the Board; 
  

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 (7) issued in connection with the cancellation of trade and other payables of the
Company; 
  
 (8) issued or issuable as a result
of an adjustment of the Exercise Price pursuant to this Section 11; and 
  
 (9) issued or issuable in connection with the offer and sale of securities pursuant to the Purchase Agreement. 
  
 (iii) Minimum Adjustment of Exercise Price. No adjustment of the Exercise Price shall be made in an amount of less than 1% of the
Exercise Price in effect at the time such adjustment is otherwise required to be made, but any such lesser adjustment shall be carried forward and shall be made at the time and together with the next subsequent adjustment which, together with any
adjustments so carried forward, shall amount to not less than 1% of such Exercise Price. 
  
 (c) Net Revenue Adjustment. Notwithstanding anything to the contrary herein, the Warrant Price shall be automatically reduced to
$1.20 per share (subject to further adjustment as set forth in Section 11(a) or reductions as set forth in Section 11(b)) if the Company’s net revenues on a consolidated basis are less than $3,500,000 in either of the Company’s fiscal
quarters ended December 28, 2003 or March 28, 2004. Such adjustment, if any, shall be effective as of the date the Company’s Quarterly Report on Form 10-Q related to such fiscal quarter is filed with the Securities and Exchange Commission.

  
 12. Reorganization, Reclassification, Merger, Consolidation
or Disposition of Assets. In case the Company shall reorganize its capital, reclassify its capital stock, consolidate or merge with or into another corporation (where the Company is not the surviving corporation or where there is a change in or
distribution with respect to the Common Stock of the Company), or sell, transfer or otherwise dispose of all or substantially all its property, assets or business to another corporation and, pursuant to the terms of such reorganization,
reclassification, merger, consolidation or disposition of assets, shares of common stock of the successor or acquiring corporation, or any cash, shares of stock or other securities or property of any nature whatsoever (including warrants or other
subscription or purchase rights) in addition to or in lieu of common stock of the successor or acquiring corporation (“Other Property”), are to be received by or distributed to the holders of Common Stock of the Company, then the
Holder shall have the right thereafter to receive, at the option of the Holder, (a) upon exercise of this Warrant, the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation,
and Other Property receivable upon or as a result of such reorganization, reclassification, merger, consolidation or disposition of assets by a Holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to
such event, or (b) cash equal to the value of this Warrant as determined in accordance with the Black-Sholes 
  

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option pricing formula. In case of any such reorganization, reclassification, merger, consolidation or disposition of assets, the successor or acquiring
corporation (if other than the Company) shall expressly assume the due and punctual observance and performance of each and every covenant and condition of this Warrant to be performed and observed by the Company and all the obligations and
liabilities hereunder, subject to such modifications as may be deemed appropriate (as determined in good faith by resolution of the Board of Directors of the Company) in order to provide for adjustments of Warrant Shares for which this Warrant is
exercisable which shall be as nearly equivalent as practicable to the adjustments provided for in this Section 12. For purposes of this Section 12, “common stock of the successor or acquiring corporation” shall include stock of such
corporation of any class which is not preferred as to dividends or assets over any other class of stock of such corporation and which is not subject to redemption and shall also include any evidences of indebtedness, shares of stock or other
securities which are convertible into or exchangeable for any such stock, either immediately or upon the arrival of a specified date or the happening of a specified event and any warrants or other rights to subscribe for or purchase any such stock.
The foregoing provisions of this Section 12 shall similarly apply to successive reorganizations, reclassifications, mergers, consolidations or disposition of assets. 
  
 13. Voluntary Adjustment by the Company. The Company may at any time during the term of this Warrant reduce the then
current Exercise Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company. 
  
 14. Notice of Adjustment. Whenever the number of Warrant Shares or number or kind of securities or other property purchasable upon the exercise of
this Warrant or the Exercise Price is adjusted, as herein provided, the Company shall give notice thereof to the Holder, which notice shall state the number of Warrant Shares (and other securities or property) purchasable upon the exercise of this
Warrant and the Exercise Price of such Warrant Shares (and other securities or property) after such adjustment, setting forth a brief statement of the facts requiring such adjustment and setting forth the computation by which such adjustment was
made. 
  
 15. Notice of Corporate Action. If at any time:

  
 (a) the Company shall take a record of the
holders of its Common Stock for the purpose of entitling them to receive a dividend or other distribution, or any right to subscribe for or purchase any evidences of its indebtedness, any shares of stock of any class or any other securities or
property, or to receive any other right, or 
  
 (b) there shall be any capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company or any consolidation or merger of the Company with, or any sale, transfer or other disposition of all
or substantially all the property, assets or business of the Company to, another corporation or, 
  
 (c) there shall be a voluntary or involuntary dissolution, liquidation or winding up of the Company; 
  

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 then, in any one or more of such cases, the Company shall give to Holder (i) at least 20 days’ prior written notice
of the date on which a record date shall be selected for such dividend, distribution or right or for determining rights to vote in respect of any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, liquidation
or winding up, and (ii) in the case of any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, dissolution, liquidation or winding up, at least 20 days’ prior written notice of the date when the same shall
take place. Such notice in accordance with the foregoing clause also shall specify (i) the date on which any such record is to be taken for the purpose of such dividend, distribution or right, the date on which the holders of Common Stock shall be
entitled to any such dividend, distribution or right, and the amount and character thereof, and (ii) the date on which any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up is to take place and the time, if any such time is to be fixed, as of which the holders of Common Stock shall be entitled to exchange their Warrant Shares for securities or other property deliverable upon such disposition, dissolution,
liquidation or winding up. Each such written notice shall be sufficiently given if addressed to Holder at the last address of Holder appearing on the books of the Company and delivered in accordance with Section 17(d). 
  
 16. Authorized Shares. The Company covenants that during the period
the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company
further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of
any requirements of the Trading Market upon which the Common Stock may be listed. 
  
 Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer
of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company
will (a) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (b) take all such action as may be necessary or appropriate in order that the Company may
validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant, and (c) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having
jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Warrant. 
  

 13 

 Before taking any action which would result in an adjustment in the number of Warrant Shares for which
this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof. 

 
 17. Miscellaneous. 
  
 (a) Jurisdiction. This Warrant shall constitute a
contract under the laws of New York, without regard to its conflict of law, principles or rules. 
  
 (b) Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered,
will have restrictions upon resale imposed by state and federal securities laws. 
  
 (c) Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder
shall operate as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies, notwithstanding all rights hereunder terminate on the Termination Date. If the Company willfully and knowingly fails to comply with any
provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder. 
  
 (d) Notices. Any notice, request or other document required or permitted to be given or delivered to
the Holder by the Company shall be delivered in accordance with the notice provisions of the Purchase Agreement. 
  
 (e) Limitation of Liability. No provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant or
purchase Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability of Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by
the Company or by creditors of the Company. 
  
 (f) Remedies. Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary
damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate.

  
 (g) Successors and Assigns. Subject to
applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors of the Company and the successors and permitted 

  

 14 

 
assigns of Holder. The provisions of this Warrant are intended to be for the benefit of all Holders from time to time of this Warrant and shall be
enforceable by any such Holder or holder of Warrant Shares. 
  
 (h) Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder. 
  
 (i) Severability. Wherever possible, each provision of this Warrant shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of this Warrant. 
  
 (j) Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed
a part of this Warrant. 
  
 ******************** 

 

 15 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly
authorized. 
  
 Dated: September
    , 2003 
  

	IRVINE SENSORS CORPORATION
		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

  

 16 

 NOTICE OF EXERCISE 
  
 To: Irvine Sensors Corporation 
  
 (1) The undersigned hereby elects to purchase              Warrant Shares of Irvine
Sensors Corporation pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any. 
  
 (2) Payment shall take the form of (check applicable box): 
  
 [    ] in lawful money of the United States; or

  
 [    ] the cancellation of such number
of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 3(d), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in
subsection 3(d). 
  
 (3) Please issue a certificate or
certificates representing said Warrant Shares in the name of the undersigned or in such other name as is specified below: 
  
                                       
                                     
  
 The Warrant Shares shall be delivered to the following: 
  
                                       
                                     
  
                                       
                                     
  
                                       
                                     
  
 (4) Accredited Investor. The undersigned is an “accredited
investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended. 
  

	 [PURCHASER]

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

	
	 Dated:______________________________________

 ASSIGNMENT FORM 
  
 (To assign the foregoing warrant, execute 
 this form and supply required information. 
 Do not use this form to exercise the warrant.) 
  
 FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby
are hereby assigned to 
  

	                                       
                                        
                                        
                   whose address is
	  	 
		
	                                       
                                        
                                        
                                        
          .
	  	 
		
	                                       
                                        
                                        
                                        
            
	  	 

  
 Dated:
                    ,              
  

	 Holder’s Signature:
	 	                                       
                                        
            

		
	 Holder’s Address:
	 	                                       
                                        
            

		
	 	 	                                       
                                        
            

  
 Signature Guaranteed:
                                        
                                        
             
  
 NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of
corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.License Agreement, dated as of July 15, 1992

 Exhibit 10.13 
  
 LICENSE AGREEMENT 
  
 This Agreement is made and entered into as of the 15th day of July, 1992, by and among the OKLAHOMA MEDICAL RESEARCH FOUNDATION, an Oklahoma nonprofit
corporation (“OMRF”), 825 N.E. 13th Street, Oklahoma City, Oklahoma 73104; THE UNIVERSITY OF KENTUCKY RESEARCH FOUNDATION, a Kentucky nonprofit corporation (“UKRF”), 120 graham avenue, Lexington, Kentucky 40506-0051
(OMRF and UKRF are hereinafter referred to together as “Licensors”); and CENTAUR PHARMACEUTICALS, INC., a delaware corporation (“Licensee”), having an office at 1250 coast Village Road, Suite K, Santa Barbara,
California 93108. 
  
 RECITALS 
  
 A. Licensors own rights in and to technology relating to compositions of and
methods for using spin-trapping compounds developed or investigated by Dr. John M. Carney of UKRF and/or Dr. Robert A. Floyd of OMRF, including the Licensed Technology further described and defined below. 
  
 B. LICENSEE DESIRES TO OBTAIN THE RIGHT TO UTILIZE LICENSED TECHNOLOGY IN
ORDER TO MAKE, HAVE MADE, USE AND SELL LICENSED PRODUCTS (AS DEFINED BELOW). 
  
 NOW, THEREFORE, for and in consideration of the foregoing and the mutual covenants and agreements contained herein, the parties agree as follows: 
  
 1. DEFINITIONS 
  
 As used herein: 
  
 1.1 “LICENSED PATENTS” means: 
  

	 	(a)	United States Patent No. 5,025,032, titled “Phenyl Butyl Nitrone Compositions and Methods for Treatment of Oxidative Tissue Damage,” issued June 18, 1991;

  

	 	(b)	United States Patent No. 5,036,097, titled “Phenylbutyl Nitrone Compositions and Methods for Prevention of Gastric Ulceration,” issued July 30, 1991;

  

	 	(c)	United States Patent Application No. [*]; and 

  

	 	(d)	United States Patent Application No. [*]; 

	[*]	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED. 

  

 1 

	 	(e)	All patent applications and continuations-in-part presently contemplated by OMRF or UKRF relating to compositions of and methods for using spin-trapping compounds as evidenced by
documented communications between Dr. Carney and/or Dr. Floyd and Kilpatrick and Cody, patent counsel for UKRF and OMRF; 

  
 and all divisionals, continuations, reexaminations, reissues, extensions and foreign counterparts of these applications and patents and all patents and comparable rights
that issue thereon. 
  
 1.2 “LICENSED TECHNOLOGY”
means the Licensed Patents and all designs, technical information, know-how, knowledge, data, specifications, test results and other information (including but not limited to designs, technical information, know-how, knowledge, data, specifications,
test results and other information previously disclosed to Licensee) relating to the subject matter of the Licensed Patents known to Licensors on the date of this Agreement. 
  
 1.3 “LICENSED PROCESS” means any process which is covered in whole or in part by an issued, unexpired claim
or a pending claim contained in the Licensed Patents in the country in which the process is practiced. 
  
 1.4 “LICENSED PRODUCT(S)” means any product or part of a product which: 
  

	 	(a)	is covered in whole or in part by an issued, unexpired claim or a pending claim contained in the Licensed Patents in the country in which the product or part of a product is made,
used or sold, 

  

	 	(b)	is manufactured using a Licensed Process, or 

  

	 	(c)	is used in a Licensed Process and has no substantial use except in a Licensed Process. 

  
 1.5 “LICENSED TERRITORY” means the entire world. 
  
 1.6 “SALE”/”SOLD” means the sale, transfer,
exchange or other disposition of Licensed Products excluding (a) transfers of Licensed Products by Licensee to its Affiliates; (b) transfers of Licensed Products for which Licensee receives no more than nominal payment in connection with
clinical testing in support of efforts to obtain regulatory approvals to sell Licensed Products in the Licensed Territory; and (c) all distribution of Licensed Products for promotional purposes for which Licensee receives no more than nominal
payment. Sales of Licensed Products shall be deemed consummated upon the later of recognition of revenue or receipt of payment, by Licensee or its Sublicensees, as the case may be, for such Sales of Licensed Products from the purchaser. 

 

 2 

 1.7 “NET SELLING PRICE” of Licensed Products means the actual cash receipts of Licensee
or its Sublicensees and, if applicable, the value of all properties and services received in consideration of a Sale (as defined above) of Licensed Products, less only: 
  

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

  

	 	(b)	any freight or other transportation costs, insurance charges, import/export duties, tariffs or other excise taxes separately invoiced to and paid or reimbursed by the purchaser;

  

	 	(c)	returns which are accepted by Licensee or its Sublicensees from unrelated purchasers in accordance with their normal practice and for which Licensee or its Sublicensees give credit
to such purchasers; and 

  

	 	(d)	sales or use taxes which Licensee or its Sublicensees are under a legal obligation to pay; 

  
 provided, however, that where a Sale (as defined above) is deemed consummated by the transfer or other disposition of Licensed
Products for other than a selling price stated in cash, the term “Net Selling Price” shall mean the average Net Selling Price billed by Licensee or its Sublicensee, as the case may be, in consideration of the Sale of comparable Licensed
Products during the three (3) month period immediately preceding such sale, without reduction of any kind. 
  
 1.8 “LICENSEE’S AUDITORS” means the independent certified or chartered accountants regularly employed by Licensee to audit its
accounts and certify its financial statements. 
  
 1.9
“PROPRIETARY INFORMATION” is defined in paragraph 9.1 of this Agreement. 
  
 1.10 “REQUIRED CONSENTS” is defined in paragraph 13.3 of this Agreement. 
  
 1.11 “AGREEMENT” means this agreement including all Exhibits (if any) attached to this Agreement together with any written amendments of
any of the foregoing. 
  
 1.12 “AFFILIATE” means
any person, corporation or business entity that owns or controls Licensee, is under common control with Licensee or which is owned or controlled by Licensee through ownership of a majority interest, directly or indirectly, of the outstanding stock
eligible to vote for the Board of Directors or other similar governing body of the entity. 
  
 1.13 “ANNUAL MINIMUM” is defined in Paragraph 4.1(d) of this Agreement. 
  
 1.14 “FDA” means the U.S. Food and Drug Administration. 
  

 3 

 1.15 “NDA” means a New Drug Application or its equivalent under then applicable FDA
regulations for the marketing of a human pharmaceutical Licensed Product. 
  
 1.16 “SUBLICENSEES” is defined in paragraph 2.3 of this Agreement. 
  
 1.17 “SUBLICENSE INITIATION FEE” means any sublicense fee or nonrefundable advance against royalties paid by a Sublicensee but does not
include any payment for research or other services or reimbursement of Licensee’s expenses. 
  
 2. GRANT OF LICENSEE 
  
 2.1 LICENSE. Subject to the license retained by Licensors in paragraph 2.2 below and the other terms of this Agreement, Licensors hereby grant to Licensee the exclusive right and license to use the Licensed Technology to make, have
made, use, lease and sell Licensed Products and to practice the Licensed Processes in the Licensed Territory during the term of this Agreement unless sooner terminated as provided in this Agreement. 
  
 2.2 RETAINED LICENSE. Licensors retain the perpetual, royalty-free
right and license to practice the Licensed Technology solely for research and educational purposes. 
  
 2.3 SUBLICENSES. Licensee shall have the right to sublicense the rights granted hereunder to third parties as well as to Affiliates of Licensee
(hereinafter collectively referred to as “Sublicenses”), provided that Licensee promptly notifies Licensors of each such sublicense. Any such sublicense will survive termination of this Agreement only if Licensors approve the
identity of the Sublicensee in writing, either before or after Licensee’s grant of the sublicense. Licensee may request Licensors’ approval of a Sublicensee at any time, and Licensors will not unreasonably withhold or delay such approval.

  
 2.4 SUBLICENSE OBLIGATIONS. All sublicenses granted by
Licensee shall provide that the obligations to Licensors of Licensee under sections 5, 9, 11 and 12 of this Agreement shall be binding upon Sublicensee as if it were a party to this Agreement. 
  
 2.5 SUBLICENSES COPIES AND REPORTS. Licensee shall provide to
Licensors (1) a copy of all sublicense agreements promptly after execution, and (2) annually, copies of all reports received by Licensee from its Sublicensees during the preceding twelve (12) month period. 
  
 2.6 NONCASH CONSIDERATION. If Licensee receives from Sublicensees
anything of value in lieu of cash payments in satisfaction of payment of obligations under the sublicense and this Agreement, then Licensee shall determine the cash value of such consideration in good faith and shall pay Licensors based on such cash
value as set forth in Section 4. 
  
 2.7 NO IMPLIED
LICENSE. The license and right granted in this Agreement shall not be construed to confer any rights upon Licensee by implication, estoppel or otherwise as to any technology not specifically identified in this Agreement as “Licensed
Technology,” nor shall it be construed to confer any rights outside the Licensed Territory. 
  

 4 

 2.8 FIRST RIGHT OF NEGOTIATION. Licensee shall have the first right to negotiate with Licensors to
obtain a license to practice any patent Licensors may acquire after the date of this Agreement that is dominated by one or more patents included in the Licensed Patents on such terms and conditions that Licensors and Licensee may agree through
negotiations in good faith. If Licensee declines to exercise its right to negotiate or the parties have not entered into a License within six (6) months after Licensors notify Licensee of the existence of a patent subject to this paragraph,
Licensors may negotiate with and grant a License or other rights in such patent to others on terms substantially no more favorable to such other party than were last offered by Licensors to Licensee. 
  
 3. DUE DILIGENCE 
  
 3.1 DILIGENCE. Licensee shall use its reasonable efforts throughout the term of this Agreement to bring one or more
Licensed Products to market through a program for exploiting the right and license granted in this Agreement and for creating, supplying and servicing a market for Licensed Products in the Licensed Territory. 
  
 4. ROYALTIES, PAYMENTS, STOCK AND REIMBURSEMENT 
  
 4.1 AMOUNT OF PAYMENTS. In partial consideration of the right and
license granted in the Agreement, Licensee shall pay to Licensors (by delivery to OMRF): 
  

	 	(a)	upon execution of this Agreement, a payment in the amount of $4l,062.86 reimbursing expenses incurred by Licensors through May 31, 1992, in preparing, filing, prosecuting and
maintaining the Licensed Patents; plus 

  

	 	(b)	a royalty equal to [*] of the Net Selling Price of Licensed Products Sold by or for Licensee and its Sublicensees; plus 

  

	 	(c)	with respect to each sublicense under this Agreement, [*] of all Sublicense Initiation Fees paid to Licensee pursuant to such sublicense; plus 

  

	 	(d)	 in the event that Licensee’s total annual royalty and sublicense payments to Licensors pursuant to the preceding subparagraphs 4.1(b) and (c) during the
calendar year following the year during which this Agreement becomes effective and each calendar year thereafter is less than the annual minimum set forth opposite such year below (the “Annual Minimum”), a payment to Licensors
together with the annual report required in paragraph 6.3 of this Agreement (or, if no such annual report is required, together with the quarterly report required in paragraph 6.1 of this Agreement 

  

 5 

	 	 
for the three (3) month period ending on December 31 of such calendar year) equal to the difference between such Annual Minimum and the total royalty and
sublicense payments paid to Licensors for the preceding calendar year pursuant to paragraphs 4.1(b) and (c) above: 

  

	 	  	 CALENDAR YEAR

	  	ANNUAL MINIMUM

	 ·
	  	 First year
	  	 	None
	 ·
	  	 Second and each subsequent year through the year the FDA first approves an NDA
	  	$	25,000
	 ·
	  	 Each year after the year the FDA first approves an NDA
	  	$	100,000

  
 4.2 NON-CUMULATIVE
ROYALTIES. Royalties shall be payable by Licensee with respect to all of its or its Sublicensees’ Sales except for Licensees’ resale of any products purchased from Licensors. Royalties shall not become payable at the time of sublicense
or transfer from Licensee to its Sublicensees, but shall become payable only when Licensee receives payment of royalties (after recovery of any prepaid royalties included in any Sublicense Initiation Fee) from its Sublicensee with respect to such
Sublicensee’s Sales. 
  
 4.3 NO MULTIPLE ROYALTIES. No
multiple royalties shall be payable because any Licensed Product is covered by more than one patent within the Licensed Patents. 
  
 4.4 DEDUCTION OF TAXES. Any income or other tax which Licensee is required to withhold and pay on behalf of Licensors with respect to the royalties
payable to Licensors under this Agreement shall be deducted from such royalties prior to remittance to Licensors; provided, however, that in regard to any tax so deducted Licensee shall give Licensors such assistance as may reasonably
be necessary to enable Licensors to claim exemption therefrom. In each case Licensee shall furnish Licensors with proper evidence of the taxes so paid on its behalf. 
  
 4.5 INTEREST. Royalty and other payments required in this Agreement shall, if overdue, bear interest until payment at
a per annum rate of two percent (2%) above the prime rate in effect at the Chase Manhattan Bank, N.A., New York, New York, U.S.A., on the due date, but not more than the highest rate permitted by law. The payment of such interest shall not foreclose
Licensors from exercising any other rights they may have because any payment is late. 
  
 4.6 CURRENCY CONVERSION AND DELIVERY. All payments required in this Agreement shall be paid in United States dollars, delivered in accordance with paragraphs 6.2 and 13.9 of this Agreement or to such other
place as Licensors may reasonably designate consistent with the applicable laws and regulations in any foreign country. If any currency, conversion shall be required in connection with the payment of royalties hereunder, such conversion shall be at

  

 6 

 
the rate in effect at the Chase Manhattan Bank, New York, New York, U.S.A., on the last business day of the calendar quarterly reporting period to which such
payment(s) relate. 
  
 4.7 STOCK. In partial consideration
of the right and license granted in this Agreement, upon execution of this Agreement, Licensee shall procure delivery to each of OMRF and UKRF Two Hundred Thousand (200,000) shares of fully paid and nonassessable Common Stock of the Licensee (the
“Licensors’ Shares”). Before receiving such common stock, OMRF and UKRF shall each execute and deliver to Licensee an Investment Representation Letter in substantially the form of Exhibit A attached hereto. 

 

	 	(a)	Disposition of such Licensors’ Shares by OMRF or UKRF will be subject to the terms of a right of first refusal held by Licensee as set forth in the Investment Representation
Letter. 

  

	 	(b)	In addition, OMRF and UKRF shall have until the later of (i) 30 days after Licensee gives them written notice of a proposed offering or (ii) 20 days after Licensee gives them
written notice of the principal terms of the offering to exercise a first refusal to purchase their respective prorata shares of any new securities offered by Licensee for cash to investors generally prior to Licensee’s initial public offering,
on substantially the same terms as are offered to such investors. The respective pro rata shares of OMRF and UKRF will be determined by dividing the number of shares of common stock of Licensee then owned by each of them by the total number of
shares of common stock of Licensee then outstanding (assuming in each case exercise of all options and warrants then outstanding and conversion to common stock of all convertible securities then outstanding or issuable upon exercise of outstanding
options and warrants). The right of first refusal referred to in this paragraph shall not apply to the issuance by Licensee of new securities of Licensee that are offered (i) as an incentive to any employee, officer, director or consultant of
Licensee in connection with services rendered to or to be rendered to Licensee, (ii) in connection with any transaction in which the consideration to be received by Licensee for its securities is other than cash, (iii) in connection with any
borrowing of funds or leasing of equipment by Licensee from a financial institution, or (iv) in connection with an acquisition of another company or any other property or assets. 

  
 4.8 BOARD OF DIRECTORS. At all times during the period beginning on
the date of this Agreement and ending on the earlier of (a) May 31, 1997 or (b) the closing of Licensee’s initial public offering pursuant to an effective registration statement filed under the Securities Act of 1933, as amended, covering the
offer and sale of Common Stock for the account of Licensee, provided that Licensors continue to hold all of the Licensors’ Shares, Licensors may designate, 

  

 7 

 
by their mutual agreement and with the consent of Licensee’s Board of Directors (such consent not to be unreasonably withheld or delayed), one (1)
member of Licensee’s Board of Directors. 
  
 5. RECORDS

  
 5.1 RECORD OF SALES. Licensee shall at all times
during the term of this Agreement and for a period of-three (3) years after termination of this Agreement keep at its principal place of business true and accurate records of all Sales subject to Section 4 of this Agreement in such form and manner
that all royalties owed hereunder to Licensors may be readily and accurately determined. Such records shall be kept for a period of at least three (3) years after the end of the royalty period to which they pertain and shall include, but not by way
of limitation, all information necessary for Licensee’s Auditors to prepare the reports required by Section 6 of this Agreement. 
  
 5.2 INSPECTION. Licensors shall have the right, from time to time, at reasonable times during normal business hours no later than three (3) years
after expiration or termination of this Agreement and at Licensors’ expense, to examine the records of Licensee through an independent certified public accountant for the purpose of verifying the amounts owed to Licensors hereunder and the
accuracy of the reports furnished by Licensee under Section 6 of this agreement. Licensors and their accountant shall maintain the confidentiality of all confidential information obtained from examination of Licensee’s records and shall use
such information only for the purposes of this Agreement. 
  
 6. REPORTS

  
 6.1 QUARTERLY REPORTS. Licensee shall prepare and
deliver to Licensors within sixty (60) days after March 31, June 30, September 30 and December 31 of each year during the term of this Agreement a true and accurate reports giving such particulars of the business conducted by Licensee and its
sublicensees during the preceding three (3) month period as is required to calculate the royalties due Licensors hereunder. Such report shall include at least the following: 
  

	 	(a)	the total Net Selling Price of all Licensed Products Sold by Licensee and its Sublicensees during the preceding three (3) month period and for the calendar year to date;

  

	 	(b)	all Sublicense Initiation Fees received from Sublicensees during the preceding three (3) month period and for the calendar year to date; and 

  

	 	(c)	the names and address of all new Sublicensees of Licensee since the previous report. 

  
 6.2 PAYMENTS. With each such report delivered, Licensee shall pay to Licensors (by delivery to OMRF) all amounts due
under this Agreement. If no payments are due, Licensee shall so report. 
  

 8 

 6.3 AUDIT REPORT. Within one hundred fifty (150) days after the end of each whole or partial
fiscal year of Licensee in which Licensed Products are Sold during the term of this Agreement, Licensee shall have its books and records audited by Licensee’s Auditors and shall direct them to prepare and submit to Licensors certified financial
statements for the preceding fiscal year including, at a minimum, a balance sheet together with an operating statement together with an audit report thereon. Appropriate disclosure will be made in the footnotes to Licensee’s audited financial
statements of (i) the total Sales of Licensed Products by Licensee and its Sublicensees during the past year and (ii) the amounts owed to Licensors in total at the year end balance sheet date. If such disclosure is not made in the footnotes to
Licensee’s audited financial statements, then Licensees Auditors shall prepare a special report covering items (i) and (ii) above and submit it to Licensors. 
  
 7. PATENT PROSECUTION 
  
 7.1 Licensors shall apply for, seek prompt issuance of, and maintain during the term of this Agreement the patents, patent applications and foreign
counterparts, as the case may be, included within the Licensed Patents that are (a) specifically identified by patent number or application serial number in paragraph 1.1 of this Agreement, or (b) timely identified or specified by Licensee by notice
to Licensors. Except as provided in Section 7.4, the prosecution and maintenance of all patent applications, foreign counterparts and patents within the Licensed Patents shall be the primary responsibility of Licensors; provided,
however, that Licensee shall be afforded reasonable opportunities to advise Licensors and shall cooperate with Licensors in such prosecution and maintenance. 
  
 7.2 Except as provided in Section 7.4. Licensee shall reimburse Licensors for all reasonable out-of-pocket fees, costs and
expenses reasonably paid or incurred by Licensors in filing, prosecuting and maintaining the Licensed Patents during the term of this Agreement. Licensee shall deliver such reimbursement to Licensors (or, if Licensors request, directly to
Licensors’ patent counsel) within thirty (30) days after Licensors (or Licensors’ patent counsel) notify Licensee from time to time of the amount of such fees, costs and expenses which have been paid or incurred by Licensors. 

 
 7.3 Licensors shall promptly advise Licensee of the grant, lapse,
revocation, surrender, any threatened invalidation of or of their intention to abandon any such patent, application or foreign counterparts. If Licensors advise Licensee of their intention not to pursue a patent on any Licensed Technology or to
abandon any such patent, application or foreign counterpart, Licensee shall have the right, at its own expense, to pursue such patent, application or foreign counterpart, and all rights resulting therefrom shall vest in Licensee alone. 

 
 7.4 Licensee shall designate each country if any, in which Licensee
desires that patent applications) corresponding to the Licensed Patents be filed. Licensee shall pay all costs and legal fees associated with the preparation and filing of such designated foreign patent applications and such applications shall be in
Licensors’ name. Licensors may elect to file corresponding patent applications in countries other than those designated by Licensee, but in 

  

 9 

 
that event Licensors shall be responsible for all costs associated with such non-designated filings. Licensors will notify Licensee that it intends to make
such filings. Licensee will then have thirty (30) days to decide to pay for such filings and prosecutions. If it does not decide to pay for such applications within the 30-day period, neither of such applications nor any patents that issue thereon
shall be considered to be Licensed Patents, and Licensee shall forfeit its rights under this Agreement with respect to such applications and patents. 
  
 8. PATENT INFRINGEMENT 
  
 8.1 NOTICE OF INFRINGEMENT. Licensee shall promptly notify Licensors of any alleged infringement of the Licensed Patents and of any available
evidence of such infringement. 
  
 8.2 SUIT BY LICENSEE.
Licensee shall have the right, but shall not be obligated, to commence suit for any infringement of the Licensed Patents, and Licensors agree that Licensee may cause Licensors to join it as a party to any such suit at no expense to Licensors. The
total cost of any such infringement action commenced or defended solely by Licensee shall be borne by Licensee and Licensee shall retain any recovery or damages awarded in such action, but such recovery or damages shall be treated as Sales of
Licensed Products, and Licensee shall pay royalties thereon to Licensors in accordance with paragraph 4.1(b) of this Agreement. No settlement, consent judgment or other voluntary final disposition of the suit may be entered into without the written
consent of Licensors, which consent shall not be unreasonably withheld. Licensee shall indemnify Licensors against any order for costs or award of sanctions that may be made or entered against Licensors in such proceedings. 
  
 8.3 SUIT BY LICENSORS. If within six (6) months after notice by
Licensee to Licensors, or by one of Licensors to Licensee, of any alleged infringement, Licensee has been unsuccessful in persuading the alleged infringer to desist and has not brought an infringement action, or if Licensee notifies Licensors at any
time of its intention not to bring suit against an alleged infringer, then and only then, Licensors shall have the right, but shall not be obligated, to commence suit for such infringement at Licensors’ sole expense, and Licensors may, in such
suit, use the name of Licensee as a nominal party. No settlement, consent judgment or other voluntary final disposition of the suit may be entered into without the written consent of Licensee, which consent shall not be unreasonably withheld.
Licensee shall not be responsible for any order for costs or award of sanctions that may be made or entered against Licensee in such proceedings. 
  
 8.4 DEFENSE. In the event that a declaratory judgment action alleging invalidity, unenforceability or noninfringement of any of the Licensed
Patents shall be brought against Licensee, Licensors or either of them, Licensee shall have the first right to defend such action; provided, however, that if Licensee determines at any time that it does not desire to defend such
action, it shall promptly so advise Licensors, and Licensors shall then have the right to defend such action at Licensors’ sole expense. Licensee shall not be responsible for any order for costs or award of sanctions that may be made or entered
against Licensee in such proceedings. 
  

 10 

 8.5 COOPERATION. In any suit either party may commence or defend pursuant to its rights under this
Agreement in order to enforce or defend the valid or enforceability of the Licensed Patents, the other party shall, at the reasonable request and expense of the party initiating or defending such suit, reasonably cooperate in all respects and, to
the extent possible, have its employees testify when requested and make available relevant records, papers, information, samples, specimens and the like. 
  
 9. CONFIDENTIALITY 
  
 9.1 MAINTENANCE OF CONFIDENTIALITY. No party shall, without the express written consent of the other parties to this Agreement in advance, for any
reason or at any time either during or for a period of three (3) years subsequent to the term of this Agreement except as otherwise provided in this paragraph, use (except in the course of practicing the licenses granted in this Agreement) or
disclose (except as is necessary in the course of sublicensing, marketing or selling Licensed Products or obtaining governmental approval to do so, or as is required to be disclosed pursuant to law (provided that the receiving party uses reasonable
efforts to give the disclosing party reasonable notice of such required disclosure) as contemplated in this Agreement) to any person (including without limitation any director, officer or employee of a party who is not under an obligation of
confidentiality substantially similar to the obligation contained herein) the Licensed Technology or any other information relating to the Licensed Products (hereinafter referred to as the “Proprietary Information”). This obligation
of non-use and non-disclosure shall not extend to Proprietary Information: 
  

	 	(a)	which can be demonstrated by the receiving party to have been within its legitimate possession prior to the time of disclosure by the disclosing party; 

  

	 	(b)	which was in the public domain prior to disclosure by the disclosing party, as evidenced by documents which were generally published prior to such disclosure;

  

	 	(c)	which, after disclosure by the disclosing party comes into the public domain through no fault of the receiving party; or 

  

	 	(d)	which is disclosed, on the receiving party by a third party having legitimate possession thereof and the unrestricted right to make such disclosure. 

  
 9.2 PRIOR AGREEMENTS. The provisions of this Agreement supersede and
shall be substituted for any terms of any prior confidentiality agreement(s) relating to the Proprietary Information between Licensee and either of the Licensors which are not consistent with this Agreement. 
  

 11 

 10. TERM AND TERMINATION 
  
 10.1 DURATION. Unless sooner terminated as otherwise provided in this Agreement, the term of this Agreement shall
commence upon the date hereof and shall continue until the later of fifteen (15) years from the date hereof or the date of expiration of the last to expire of the Licensed Patents, except that upon expiration of this Agreement at the end of
such term, Licensee shall automatically have a perpetual, paid-up, royalty-free license to use and sublicense Licensed Technology without restriction. 
  
 10.2 TERMINATION. Licensors shall have the right to terminate this Agreement on the occurrence of any one or more of the following events:

  

	 	(a)	failure of Licensee to make any payment required pursuant to this Agreement when due; 

  

	 	(b)	failure of Licensee to render reports to Licensors as required by this Agreement; 

  

	 	(c)	the insolvency of Licensee; 

  

	 	(d)	the institution of any proceeding by Licensee under any bankruptcy, insolvency or moratorium law; 

  

	 	(e)	any assignment by Licensee of substantially all of its assets for the benefit of creditors; 

  

	 	(f)	placement of Licensee’s assets in the hands of a trustee or a receiver unless the receivership or trust is dissolved within thirty (30) days thereafter; or

  

	 	(g)	the material and intentional breach by Licensee of any other term of this Agreement. 

  
 10.3 EXERCISE. Licensors may exercise their right of termination by giving Licensee, its trustees or receivers or
assigns, sixty (60) days prior written notice of Licensors’ election to terminate. Upon the expiration of such period, this Agreement shall automatically terminate unless (a) the other party has previously cured the breach or condition
permitting termination under the preceding paragraph or (b) such breach or condition cannot reasonably be cured within sixty (60) days due to causes beyond Licensee’s control, Licensee commences good faith efforts to cure such breach within
such 60-day period and Licensee does cure the breach within one hundred twenty (120) days after the expiration of such 60-day period, in which case this Agreement shall not terminate. Such notice and termination shall not prejudice Licensors’
rights to any royalties and other sums due hereunder and shall not prejudice any cause of action or claim of Licensors accrued or to accrue on account of any breach or default by Licensee. 
  

 12 

 10.4 FAILURE TO ENFORCE. The failure of Licensors at any time, or for any period of time, to
enforce any of the provisions of this Agreement shall not be construed as a waiver of such provisions or the right of Licensors thereafter to enforce each and every such provision. 
  
 10.5 TERMINATION BY LICENSEE. Licensee may terminate this Agreement at any time giving Licensors six (6) months prior
written notice of Licensee’s election to terminate. 
  
 10.6
EFFECT. In the event this Agreement is terminated prior to its expiration for any reason whatsoever, Licensee shall not have any right to return of any payments of any kind theretofore made by it to Licensors pursuant to this Agreement;
Licensee shall return, or at Licensor’s direction destroy, all plans, drawings, papers, notes, writings and other documents, samples, organisms, biological materials and models constituting the Licensed Technology, retaining no copies; and
Licensee shall refrain from using or publishing any portion of the Licensed Technology as provided in Section 9 of this Agreement. Upon such termination of this Agreement, Licensee shall cease manufacturing, processing, producing, using, selling or
distributing Licensed Products; provided, however that Licensee may continue to sell in the ordinary course of business for a period of one hundred eighty (180) days reasonable quantities of Licensed Products which are fully
manufactured and in Licensee’s normal inventory at the date of termination if: 
  

	 	(a)	all monetary obligations of Licensee to Licensors have been satisfied and 

  

	 	(b)	royalties on such sales are paid to Licensors in the amounts and in the manner provided in this Agreement. 

  
 Upon termination of this Agreement, any sublicenses granted by Licensee to
Sublicensees that have been approved by Licensor as contemplated by Section 2.3 and in which the Sublicensees are in full compliance, including without limitation compliance with the obligations under Sections 5, 9, 11 and 12 of this Agreement,
shall continue in full force and effect with Licensors substituted in Licensee’s place. The provisions of Section 9, 11 and 12 of this Agreement shall remain in full force and effect notwithstanding any termination of this Agreement.

  
 11. INDEMNIFICATION AND INSURANCE 
  
 11.1 INDEMNIFICATION. Licensee shall defend, indemnify and hold
harmless Licensors, the University of Kentucky, the University of Oklahoma and their officers, directors, trustees and employees and all of their heirs, executors, administrators and legal representatives (“Indemnitees”) from and
against any and all claims, demands, loss, liability, expense or damage (including investigative costs, court costs and attorneys’ fees) Indemnitees may suffer, pay or incur as a result of claims, demands or actions against any of the
Indemnities arising or alleged to arise by reason of or in connection with any and all personal injury, economic loss and property damage caused or alleged to be caused or contributed to in whole or in part by the manufacture, use, lease, sale or
sublicense of Licensed Products by Licensee, whether asserted under a tort or contractual theory or any other legal theory, including but not limited to any and all claims, 

  

 13 

 
demands and actions in which it is alleged that: (1) an Indemnities negligence or representations about the Licensed Products caused any defect in their
manufacture, design, labeling or performance or (2) any alleged infringement of any patent, trademark or copyright, caused or contributed in whole or in part to the personal injury, economic loss or property damage. Licensee’s obligations under
this paragraph shall survive the expiration or termination of this Agreement for any reason. 
  
 11.2 INSURANCE. Without limiting Licensee’s indemnity obligations under the preceding paragraph, prior to testing any compounds in humans, Licensee shall obtain a liability insurance policy which:

  

	 	(a)	insures Indemnitees for all claims, demands and actions mentioned in the preceding paragraph of this Agreement; 

  

	 	(b)	includes a contractual endorsement providing coverage for all such liability which may be incurred by Indemnitees in connection with this Agreement; 

  

	 	(c)	requires the insurance carrier to provide Licensors with no less than thirty (30) days written notice of any change in the terms of coverage of the policy or its cancellation; and

  

	 	(d)	provides Indemnitees with product liability coverage in the following amounts for the periods indicated below: 

  

	 	(i)	$500,000 in product liability coverage during the period in which one (1) or more Licensed Products are being used in United States FDA clinical trials in human beings but no
Licensed Products are approved by FDA for use in human beings; 

  

	 	(ii)	$2,500,000 in product liability coverage for each Licensed Product approved by FDA for use in human beings; 

  
 provided that the aggregate maximum amount of product liability
coverage for all Licensed Products at any time shall not exceed $10,000,000 combined single limit for bodily injury and property damage liability, subject to a deductible of not more than $100,000 per occurrence. 
  
 Licensee shall maintain such liability insurance policy throughout the term of this Agreement
and for three (3) years thereafter. 
  
 11.3 NOTICE OF
CLAIMS. Licensee will promptly notify Licensors of all claims involving Licensed Products. 
  

 14 

 11.4 EVIDENCE OF INSURANCE. Licensee shall provide Licensors with copies of liability policies
which comply fully with this Agreement during the entire period Licensee is required to maintain such insurance. If Licensee fails at any time to maintain insurance as required in this Agreement, Licensors may (but shall be under no obligation to)
purchase their own policy providing all or any of the coverage and recover from Licensee the cost thereof, which shall be payable on demand. 
  
 11.5 COMPLIANCE WITH SECURITIES LAWS. Licensee shall use its reasonable efforts to ensure that any sales of its securities that shall be effected
subsequent to the date hereof shall only be made, and that any activities to raise funds with which Licensee will satisfy any of its obligations to Licensors hereunder will only be conducted, in compliance with all applicable laws, including without
limitation all applicable federal, state or foreign securities laws. Licensee shall retain independent legal counsel to advise Licensee with respect to the liabilities and obligations arising out of, among other things, the raising of funds by
Licensee to fund its payment obligations to Licensors hereunder and the offers or sales of securities by Licensee. Such counsel shall be experienced and competent in corporate and securities matters such as the foregoing and shall be reasonably
acceptable to Licensors. It is understood and agreed that current counsel to Licensee, Fenwick & West, is acceptable to Licensors. 
  
 11.6 INDEMNIFICATION BY LICENSEE. Licensee shall indemnify and hold harmless Indemnitees against and with respect to all losses, damages, claims,
liabilities or expenses (including reasonable attorneys’ fees and expenses) incurred or sustained by any of them as a result of, or arising out of, any violation breach or nonfulfillment on the part of licensee of any representation, warranty,
covenant or agreement made by Licensee pursuant to this Agreement. Licensors or another indemnified party hereunder shall notify Licensee in writing promptly after it or they acquire actual knowledge of any action or claim against it or them
hereunder which may give rise to liability of Licensee pursuant to this paragraph. Licensee may, at its own expenses, through legal counsel approved by Licensors, defend or settle any such claim or action, provided that Licensee posts security that
is adequate in the reasonable discretion of Licensors to protect Licensor or the other indemnified party or parties and provided Licensors are notified in writing of Licensee’s intent to so defend within ten (10) days after Licensee has been
notified by Licensors or such other indemnified party of such claim or action. 
  
 11.7 CONTRIBUTION BY LICENSEE. If the indemnification provided for in the immediately preceding paragraph is unavailable or insufficient to hold harmless an indemnified party in respect of any of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to above, then Licensee shall contribute to the amount paid or payable by each such indemnified party as a result of such losses, claims, damages or liabilities (or actions in
respect thereof) in such proportion as is appropriate to reflect the relative benefits received by Licensee on the one hand and Licensors and any other indemnified parties on the other from the activities from which such losses, claims, damages or
liabilities arose, as well as the relative fault of Licensee on the one hand and Licensors on the other in connection with the actions or inactions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof) as well
as any other relevant equitable considerations. 
  

 15 

 12. MERCHANTABILITY, EXCLUSION OF WARRANTIES, LIMITATION OF DAMAGES AND WARRANTIES 
  
 12.1 Licensee has made its own evaluation of the potential capabilities,
safety, utility and commercial application of the Licensed Technology, Licensed Products and Licensed Processes. 
  
 ACCORDINGLY, LICENSORS MAKE NO REPRESENTATION OR WARRANTY OF ANY KIND WITH RESPECT TO THE LICENSED TECHNOLOGY, LICENSED PRODUCTS OR LICENSED PROCESSES AND
EXPRESSLY DISCLAIM ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND ANY OTHER IMPLIED WARRANTIES WITH RESPECT TO THE CAPABILITIES, SAFETY, UTILITY OR COMMERCIAL APPLICATION OF LICENSED TECHNOLOGY LICENSED PRODUCTS AND
LICENSED PROCESSES. 
  
 12.2 LIMITATION OF LIABILITY.
LICENSORS SHALL NOT BE LIABLE FOR ANY DIRECT, CONSEQUENTIAL OR OTHER DAMAGES SUFFERED BY LICENSEE OR ANY OTHER RESULTING FROM THE USE OF THE LICENSED TECHNOLOGY, LICENSED PRODUCTS OR LICENSED PROCESSES. 
  
 12.3 REPRESENTATIONS AND WARRANTIES OF LICENSEE. Licensee hereby makes
the following representations and warranties to Licensors, which representations and warranties, together with all other representations and warranties of Licensee in this Agreement, are true and correct on the date hereof; 
  

	 	(a)	Licensee is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to enter
into this Agreement and perform its obligations hereunder. 

  

	 	(b)	 Neither the execution or delivery of this Agreement, nor the consummation of the transactions contemplated herein, will (a) violate or conflict with any provision
of the Certificate of Incorporation or By-laws of Licensee, as each may have been amended; (b) with or without the giving of notice or the lapse of time or both (i) result in a breach of, or violate, or be in conflict with or constitute a default
under or result in the termination or cancellation of, or accelerate the performance required under, any security instrument, mortgage, note, debenture, indenture, loan, lease, contract, agreement or other instrument, to which Licensee is a party or
by which it or any of its properties or assets may be bound or affected, or (ii) result in the loss or adverse modification of any lease, franchise, license or other contractual right or other 

  

 16 

	 	 
authorization granted to or otherwise held by Licensee; (c) require the consent of any party to any such agreement or commitment to which Licensee is a party
or by which any of its properties or assets are bound; (d) result in the creation or imposition of any lien, claim or encumbrance upon any property or assets of Licensee; or (e) require any consent, approval, authorization, order, filing,
registration or qualification of or with any court or governmental authority or arbitrator to which Licensee is subject or by which any of its properties or assets may be bound or affected. 

  

	 	(c)	All actions to authorize the execution and delivery of this Agreement and the consummation of the transactions contemplated herein have been duly taken, and this Agreement
constitutes the valid and binding obligation of Licensee enforceable in accordance with its terms. 

  

	 	(d)	There are no claims (relating to patent infringement or any other matters), actions, suits, proceedings, arbitrations or investigations pending or, to the best of Licensee’s
knowledge, threatened, against Licensee which if adversely determined would adversely affect the Licensed Technology (or the patentability thereof) or other technology practiced by Licensee, or Licensee’s ability to enter into or carry out this
Agreement or use or license Licensed Technology. 

  
 12.4 REPRESENTATIONS AND WARRANTIES OF OMRF. OMRF hereby makes the following representations and warranties to Licensee, which representations and warranties, together with all other representations and warranties of OMRF in this
Agreement, are true and correct on the date hereof; 
  

	 	(a)	OMRF is a nonprofit corporation duly organized, validly existing and in good standing under the laws of the State of Oklahoma and has all requisite corporate power and authority to
enter into this Agreement and perform its obligations hereunder. 

  

	 	(b)	Neither the execution or delivery of this Agreement, nor the consummation of the transactions contemplated herein, will (a) violate or conflict with any provision of the Articles of
Incorporation or By-laws of OMRF, as each may have been amended; (b) require the consent of any party to any agreement or commitment to which OMRF is a party or which affects the Licensed Technology; (c) result in the creation or imposition of any
lien, claim or encumbrance upon the Licensed Technology; or (d) require any consent, approval, authorization, order, filing, registration or qualification of or with any court or governmental authority or arbitrator to which OMRF is subject or by
which the Licensed Technology may be affected. 

  

 17 

	 	(c)	All actions to authorize the execution and delivery of this Agreement and the consummation of the transactions contemplated herein have been duly taken, and this Agreement
constitutes the valid and binding obligation of OMRF enforceable in accordance with its terms. 

  

	 	(d)	There are no claims (relating to patent infringement or any other matters), actions, suits, proceedings, arbitrations or investigations pending or, to the best of OMRF’s
knowledge, threatened, against OMRF which if adversely determined would adversely affect the Licensed Technology (or the patentability thereof) or OMRF’s ability to enter into or carry out this Agreement. 

  
 12.5 REPRESENTATION AND WARRANTIES OF UKRF. UKRF hereby makes the
following representations and warranties to Licensee, which representations and warranties, together with all other representations and warranties of UKRF in this Agreement, are true and correct on the date hereof; 
  

	 	(a)	UKRF is a nonprofit corporation duly organized, validly existing and in good standing under the laws of the State of Kentucky and has all requisite corporate power and authority to
enter into this Agreement and perform its obligations hereunder. 

  

	 	(b)	Neither the execution or delivery of this Agreement, nor the consummation of the transactions contemplated herein, will (a) violate or conflict with any provision of the Articles of
Incorporation or By-laws of UKRF, as each may have been amended; (b) require the consent of any party to any agreement or commitment to which UKRF is a party or which affects the Licensed Technology; (c) result in the creation or imposition of any
lien, claim or encumbrance upon the Licensed Technology; or (d) require any consent, approval, authorization, order, filing, registration or qualification of or with any court or governmental authority or arbitrator to which UKRF is subject or by
which the Licensed Technology may be affected. 

  

	 	(c)	All action to authorize the execution and delivery of this Agreement and the consummation of the transactions contemplated herein have been duly taken, and this Agreement
constitutes the valid and binding obligation of UKRF enforceable in accordance with its terms. 

  

 18 

	 	(d)	There are no claims (relating to patent infringement or any other matters), actions, suits, proceedings, arbitrations or investigations pending or, to the best of UKRF’s
knowledge, threatened, against UKRF which if adversely determined would adversely affect the Licensed Technology (or the patentability thereof) or UKRF’s ability to enter into or carry out this Agreement. 

  
 13. MISCELLANEOUS AND GENERAL 
  
 13.1 EXPORT CONTROLS. Licensee acknowledges that Licensors are subject
to United States laws and regulations controlling the export of technical data, computer software, laboratory prototypes and other commodities and that its obligations hereunder are contingent on compliance with all applicable United States export
and other laws and regulations. The transfer of certain technical data and commodities may require a license from the cognizant agency of the United States Government and/or written assurances by Licensee that Licensee shall not export data or
commodities to certain foreign countries without prior approval of such agency. Licensors neither represent that a license shall not be required nor that, if required, it shall be issued. 
  
 13.2 LEGAL COMPLIANCE. Licensee agrees that will comply with all applicable laws and regulations in relation to its
manufacture, processing, producing, use, selling or distributing of Licensed Products and that it will not at any time take any action which would cause Licensors or Licensee to be in violation of any of such applicable laws and regulations.

  
 13.3 REQUIRED CONSENTS. Licensee shall obtain any and
all licenses, permits, approvals or authorizations (“Required Consents”) required by any governmental entity or agency having jurisdiction over the transactions contemplated by this Agreement. Licensors shall cooperate with, and
provide reasonable assistance to, Licensee in obtaining the Required Consents; provided, however, the Licensee shall reimburse Licensors for all of Licensors’ out-of- pocket expenses incurred in providing such assistance. 
  
 13.4 INDEPENDENT CONTRACTOR. Licensee’s relationship to Licensors
hereunder shall be that of a licensee only. Licensee shall not be the agent of Licensors and shall have no authority to act for or on behalf of Licensors in any matter. Persons retained by Licensee as employees or agents shall not by reason thereof
be deemed to be employees or agents of Licensors. 
  
 13.5
PATENT MARKING. Licensee agrees to mark, to the extent practical, the Licensed Products sold in the United States with all applicable United States patent numbers. All Licensed Products shipped to or sold in other countries shall be marked,
to the extent practical, in such a manner as to conform with the patent laws and practice of the country of manufacture or sale. 
  
 13.6 USE OF NAMES. No name of any party to this Agreement, or of any officer, trustee, director or employee of any party, may be used by any party
in any manner for announcing, advertising, promoting or marketing Licensed Products, Licensed Processes or securities unless the written permission of such party, or the individual, as the case may be, is obtained in advance. 
  

 19 

 13.7 INTERPRETATION. The parties are equally responsible for the preparation of this Agreement,
and in any judicial proceeding the terms hereof shall not be more strictly construed against one party than the other. 
  
 13.8 NOTICES. All notices, statements and reports required or contemplated herein by one party to the other shall be in writing and shall be deemed
to have been given upon delivery in person or upon the expiration of five (5) days after deposit in a lawful mail depository in the country of residence of the party giving the notice, registered or certified airmail postage prepaid, and addressed
as follows: 
  
 If to Licensors: 
  
  
 OMRF: 
  
 Attention: President 
 Oklahoma Medical Research Foundation 
 825 N.E. 13th Street 
 Oklahoma City, Oklahoma 73104 
 Facsimile: (405) 271-3980 
  
 With a copy to: 
  
 John S. Pratt 
 Kilpatrick & Cody 
 1100 Peachtree Street 
 Atlanta, Georgia 30309-4530 
 Facsimile: (404) 815-6555 
  
 UKRF: 
  
 Director 
 Office of Intellectual Property 
 University of Kentucky Research Foundation 
 120 Graham Avenue 
 Lexington, Kentucky 40506-0051 
  
 With
a copy to: 
  
 Office of Legal Counsel

 University of Kentucky 
 2 Administration Building 
 Lexington, KY 40506-0032 
  

 20 

 If to Licensee: 
  
 Attention: President 
 Centaur Pharmaceuticals, Inc. 
 1250 Coast Village Road 
 Suite K 
 Santa Barbara, CA 93108 
 Facsimile: (805) 565-5915 
  
 With a copy to: 
  
 Gordon K. Davidson 
 Fenwick & West 
 Two Palo Alto Square, Suite 800 
 Palo Alto, CA 94306 
 Facsimile: (415) 857-0361 
  
 Any party hereto may change the address to which notices to such party are to
be sent by giving notice to the other parties at the addresses and in the manner provided above. Any notice herein required or permitted to be given may be given, in addition to the manner set forth above, by telex, facsimile or cable, provided that
the party giving such notice obtains acknowledgment by telex, facsimile or cable that such notice has been received by the party or parties to be notified. Notice made in this manner shall be deemed to have been given when such acknowledgment has
been transmitted. 
  
 13.9 ASSIGNMENTS AND INUREMENT.
Except as otherwise provided in this Agreement, Licensee shall not grant, transfer, convey or otherwise assign any of its rights or delegate any of its obligations under this Agreement (except in the course of a merger, consolidation or acquisition
of all or substantially all of Licensee’s business) without the prior written consent of Licensors, which consent shall not be unreasonably withheld or delayed, and any attempt by Licensee to do so shall be of no effect; however, this Agreement
shall be assignable by each of Licensors. This Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the parties hereto. 
  
 13.10 ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between Licensors and Licensee with respect
to the subject matter hereof and shall not be modified, amended or terminated except as herein provided or executed by another agreement in writing executed by the parties hereto. 
  
 13.11 HEADINGS. The section and paragraph headings are for convenience only and are not a part of this Agreement.

  

 21 

 13.12 SEVERABILITY. All rights and restrictions contained herein may be exercised and shall be
applicable and binding only to the extent that they do not violate any applicable laws and are intended to be limited to the extent necessary so that they will not render this Agreement illegal, invalid or unenforceable. If any provision or portion
of any provision of this Agreement not essential to the commercial purpose of this Agreement shall be held to be illegal, invalid or unenforceable by a court of competent jurisdiction, it is the intention of the parties that the remaining provisions
or portions thereof shall constitute their agreement with respect to the subject matter hereof, and all such remaining provisions or portions thereof shall remain in full force and effect. To the extent legally permissible, any illegal, invalid or
unenforceable provision of this Agreement shall be replaced by a valid provision which will implement the commercial purpose of the illegal, invalid or unenforceable provision. In the event that any provision essential to the commercial purpose of
this Agreement is held to be illegal, invalid or unenforceable and cannot be replaced by a valid provision which will implement the commercial purpose of this Agreement, this Agreement and the rights granted herein shall terminate. 
  
 13.13 COUNTERPARTS. This Agreement may be executed in two or more
counterparts each of which shall be deemed an original, but all of which shall constitute one and the same instrument. 
  

 22 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized
representatives as of the day and year first above written. 
  

	 LICENSORS:

	
	 OKLAHOMA MEDICAL RESEARCH FOUNDATION

		
	 By:
	 	 /s/ WILLIAM G. THURMAN

	 	 	 Dr. William G. Thurman

 President

  

	
	 UNIVERSITY OF KENTUCKY RESEARCH
FOUNDATION

		
	 By:
	 	 /s/ LINDA J. MAGID

	 	 	 Dr. Linda J. Magid
 Executive Director

  

	 LICENSEE:

	
	 CENTAUR PHARMACEUTICALS, INC.

		
	 By:
	 	 /s/ JOHN M. CARNEY

	 	 	 John M. Carney, Ph.D.
 President

  
 SIGNATURE PAGE
TO CENTAUR/OMRF/UKRF/LICENSE AGREEMENT 
  
 ATTACHMENT:

  
 Exhibit
A                     Investment Representation Letter 
  

 23

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