Document:

EX-10.2

 Exhibit 10.2 

Confidential Treatment Requested. Confidential portions of this document have been redacted and have been separately filed with the Commission. 

Pharmaceutical License Agreement 

SP-2577 

Salarius Pharmaceuticals, LLC 

and 
 HLB LifeScience
Co., LTD 
 November 25, 2016 

 EXCLUSIVE PHARMACEUTICAL SUBLICENSE AGREEMENT 

This AGREEMENT dated as of November 25, 2016 (“Effective Date”) is made by and between Salarius Pharmaceuticals, LLC, a
Delaware limited liability company, having its principal place of business at JLABS at Texas Medical Center, 2450 Holcombe Blvd., Suite J, Houston, Texas, 77021, United States of America (“SALARIUS”) and HLB LifeScience Co., LTD.,
having offices at A-602, JNK Digital Tower, 111, Digital-ro 26-gil, Guro-gu, Seoul, the
Republic of Korea (“HLBLS”). 
 Introduction 

Certain inventions, generally characterized as “(E/Z)-N’-substituted-benzylidene-3-(substituted-sulfonyl) benzohydrazides as inhibitors of histone demethylases” comprising compounds that
inhibit Lysine-specific demethylase 1 (LSD1), and assigned University of Utah case number U-5083, hereinafter collectively referred to as the “Invention”, have been made in the course of research at
the University of Utah and are Covered By Patent Rights (as defined below). 
 SALARIUS has obtained from the UURF (as defined below) the
exclusive license under the Patent Rights (as defined below) for the commercial development, production, manufacture, use and sale of Licensed Products (as defined below) to certain Drug Technology (as defined below). 

HLBLS desires to sublicense from SALARIUS the right to develop, produce, manufacture, use, and sell certain drug formulations that are applied
to humans through the use of the Drug Technology in the Licensed Territory (as defined below) and SALARIUS is willing to grant such a sublicense to HLBLS upon the terms and conditions hereinafter set forth. 

In consideration of the mutual covenants and promises contained in this Agreement and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, HLBLS and SALARIUS agree as follows: 
  

	I.	 Definitions 

As used in this Agreement, the following terms, whether used in the singular or plural, shall have the following meanings: 

1.1 “Affiliate” means any company or other business entity that, directly or indirectly, controls, or is controlled by, or is under
common control with a Party. Solely for purposes of this definition, the term “control” means the entity owns, either of record or beneficially, at least fifty percent (50%) of the voting stock of the other entity. An entity will be deemed
an Affiliate only while such ownership relationship continues. “Affiliates” is more than one Affiliate. 
 1.2 “Claim of
Infringement” is defined in Section 10.5.1. 
 1.3 “Covered By” means a claim or claims within any pending or issued
patent included in the SALARIUS Patent Rights claiming all, a portion, or a component or step of a Licensed Product. 

  
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 1.4 “Collaborator” means any Entity with which HLBLS or one or more of its
Affiliates actively conducts significant joint research, and/or co-development, and/or co-promotion, and/or co-marketing
activities for the purpose of commercializing Licensed Product(s). 
 1.5 “Combination Product” means a Licensed Product(s) which
is sold in combination with another product or products which themselves are not Licensed Product(s) 
 1.6 “Commercially Diligent
Efforts” means, with respect to a Licensed Product, the reasonably diligent exercise, dedication and expenditure of efforts, money, personnel, and resources as reasonably needed to develop, manufacture, market and sell the Licensed Product that
a prudent chief executive officer would devote given then current competitive factors, market conditions, the ability to obtain financing, the availability of development resources, the interest shown by pharmaceutical companies and other likely
Collaborators, Sublicensee(s), or assignees. 
 1.7 “Confidential Information” means all materials, trade secrets, or other
information, including, without limitation, proprietary information and materials (whether or not patentable) regarding a Party’s technology, products, business information, or objectives, which is designated as confidential in writing by the
disclosing Party, whether by letter or by the use of an appropriate stamp or legend, prior to or at the time any such material, trade secret, or other information is disclosed by the disclosing Party to the other Party. Notwithstanding the foregoing
to the contrary, materials, trade secrets, or other information which (i) is orally or visually disclosed by a Party, or (ii) is disclosed in writing without an appropriate letter, stamp, or legend and within thirty (30) days after
such disclosure, the disclosing Party delivers to the other Party a written document or documents describing the materials, trade secrets, or other information and referencing the place and date of such oral, visual, or written disclosure and the
names of the persons to whom such disclosure was made, or (iii) is disclosed under circumstances that a reasonable person would consider such information to be confidential, shall constitute Confidential Information. 

1.8 “Drug Technology” means any technology licensed, owned or licensable by SALARIUS that relates to compound, devices or
compositions for the formulation/compound known as SP-2577 comprising the Invention (product profile attached as Attachment 1) in the Field of Use Covered By the Patent Rights. 

1.9 “Effective Date” is defined in the first paragraph above. 

1.10 “Entity” means a corporation, an association, a joint venture, a partnership, a trust, a business, an institution, an
individual, a government or political subdivision thereof, including an agency, or any other organization that can exercise independent legal standing. 

1.11 “Fair Market Value” means the cash consideration which HLBLS or its Sublicensees would realize from an unaffiliated, unrelated
buyer in an arm’s length sale of an identical item sold in the same quantity, under the same terms, and at the same time and place. 

1.12 “Field of Use” means all human uses. 

  
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 1.13 “First Commercial Sale” means with respect to any Licensed Product,
the first sale of such Licensed Product for human use after the MFDS has approved a New Drug Application (“NDA”) or Premarket Approval (“PMA”) or accepted a 510(k), or an equivalent Marketing Authorization for such Licensed
Product, excluding, however, any sale or other distribution for use in a clinical trial or for a compassionate use (i.e., under a “single patient IND” study, a “treatment IND” or “treatment protocol” under an existing
commercial IND or their equivalents) invoiced to a Third Party other than to an Affiliate or Collaborator. 
 1.14 “K-IFRS” means generally accepted accounting principles in the Republic of Korea consistently applied by HLBLS, its Affiliates, its Sublicensees or its distributors in their respective financial
statements, audited if applicable. 
 1.15 “HLBLS Improvement(s)” means any intellectual or tangible property that constitute
improvements or enhancements in the Field of Use to, or modifications of, the SALARIUS Patent Rights in the Field of Use that are conceived, originated, acquired or reduced to practice by HLBLS, its Collaborators and their respective Affiliates, but
does not include new chemical entities as defined by the US Food and Drug Administration in 21 CFR 314.108(a). 
 1.16 “Insolvent”
means being unable to meet one’s debt obligations to another Entity as such debt obligations become due and not being able to provide reasonable financial assurances of becoming able to meet such obligations. 

1.17 ”Invention” is defined in the Introduction to this Agreement. 

1.18 “IND” is defined in Section 6.4. 

1.19 “JRC” is defined in Section 5.1. 

1.20 “MFDS” means the Korean Ministry of Food and Drug Safety, or any successor agency thereto. 

1.21 “Licensed Products” means any product, apparatus, or any other subject matter, the manufacture, design, creation, use,
importation, distribution, or sale of which is Covered By a Valid Claim included within the SALARIUS Patent Rights. 
 1.22 “Licensed
Territory” means the Republic of Korea. 
 1.23 “Losses” is defined in Section 10.5.2. 

1.24 “Marketing Authorization” means all necessary and appropriate regulatory approvals to allow the marketing and sale of a
Licensed Product(s), including but not limited to new drug/device submissions and reimbursement and pricing approvals, in the Field of Use in the Territory. 

1.25 “Net Sales” means the gross revenue and other consideration billed or invoiced by HLBLS, its Collaborators and their respective
Affiliates for Licensed Products which are sold, leased or otherwise commercialized by or for HLBLS, its Collaborators or any of their respective Affiliates; however, sales or other transfers of Licensed Products between HLBLS and its Collaborators
and their respective Affiliates shall be excluded from the computation of Net Sales, and no payments will be payable to SALARIUS on such sales or transfers except where such Affiliates are end users or consumers; less the following
deductions, directly attributable to the sale of such Licensed Product and specifically identified on the invoice, and borne by the seller to the extent they are included in such gross revenue or other consideration: 

(i) trade, cash and quantity discounts; 

  
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 (ii) price reductions or rebates, retroactive or otherwise, imposed by,
negotiated with or otherwise paid to governmental authorities; 
 (iii) taxes on sales (such as sales, value added or use
taxes) to the extent added to the sale price; 
 (iv) freight, insurance and other transportation charges to the extent added
to the sale price; 
 (v) amounts repaid or credited by reason of rejections, defects, return goods allowance, recalls or
returns, or because of retroactive price reductions, including, but not limited to, rebates or wholesaler charge backs. 
 Any deduction listed in
subsections (i) – (v) shall not be taken with respect to a particular unit of Licensed Product until HLBLS or the applicable selling Entity bills or invoices amounts from the sale of such unit of Licensed Product (thereby resulting in such
amounts being included in Net Sales), and no deduction shall be taken in a manner that counts a particular charge, payment, discount, tax, or other deductible item more than once. Net Sales shall not include upfront, lump sum, milestone or debt or
equity contributions not made in payment for Licensed Products. 
 1.26 “Party” means HLBLS or SALARIUS; “Parties” means
HLBLS and SALARIUS. 
 1.27 “Regulatory Authorities” means the principal governmental organization(s) or agency(ies) that has/have
the right to approve the sale and, if applicable price, of Licensed Products in the Licensed Territory, including, without limitation, the MFDS. 

1.28 “Royalty Term” means, on a Licensed Product by Licensed Product basis, the period of time for which HLBLS’s royalty
obligations are due to SALARIUS and commence on the First Commercial Sale for each such Licensed Product and shall terminate on the expiration, invalidation or abandonment of the last Valid Claim in the SALARIUS Patent Rights. 

1.29 “SALARIUS Improvement(s)” means any intellectual or tangible property that constitute improvements or enhancements in the Field
of Use to, or modifications of, the SALARIUS Patent Rights in the Field of Use that are conceived, originated, acquired or reduced to practice by SALARIUS or its Affiliates, but does not include new chemical entities as defined by the US Food and
Drug Administration in 21 CFR 314.108(a). 
 1.30 “SALARIUS Know-how” means SALARIUS’
methods, processes, techniques and data that relate to the SALARIUS Patent Rights which are necessary or useful for developing, manufacturing, using or selling a Licensed Product (including but not limited to preclinical study, reports, protocols,
and data), now or in the future owned or Controlled by SALARIUS, whether or not: (i) the same is eligible for protection under the patent laws in the Territory; (ii) enforceable as a trade secret; or (iii) the copying of which would
be enjoined or restrained by a court as constituting unfair competition. 

  
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 1.31 “SALARIUS Patent Rights” means and includes all of the patentable
intellectual property in the Licensed Territory (i) owned by SALARIUS, and (ii) licensed to SALARIUS under the UURF License and, including but not limited to the patents and/or patent applications listed in Attachment 2 and from
divisionals and continuations (other than continuations-in-part) of these applications and any reissues of such patents; continuation-in-part applications and patents directed to subject matter specifically described in the patent(s) and/or patent application(s) listed in Attachment 2 reissues, renewals, registrations,
confirmations, reexaminations, extensions, of any such patents. 
 1.32 “SALARIUS Technology Rights” means the SALARIUS Know-how and the SALARIUS Patent Rights. 
 1.33 “Step Down Royalty” is defined in
Section 4.2. 
 1.34 “Step Down Royalty Term” means, on a Licensed Product by Licensed Product basis, a period of time for
which HLBLS’s step down royalty obligations are due and shall commence after the Royalty Term where there are SALARIUS Patent Rights and with the First Commercial Sale where there are no SALARIUS Patent Rights, but in no event shall exceed
twenty (20) years from the date of the First Commercial Sale of the Licensed Product. 
 1.35 “Sublicense” is defined in
Section 3.1. 
 1.36 “Sublicensee(s)” means any Third Party which enters into a Sublicense. 

1.37 “Third Party” means any company other than HLBLS, SALARIUS, and Parties’ Affiliates. 

1.38 “University” means the University of Utah. 

1.39 “UURF” is the University of Utah Research Foundation which has licensed SALARIUS Patent Rights and SALARIUS Technology Rights
to SALARIUS. 
 1.40 “University License Agreement” means the License Agreement entered into on the 3rd day of August, 2011 by and
between UURF as “Licensor,” and SALARIUS as “Licensee”, as it may be amended from time to time. 
 1.41 “Valid
Claim” means a claim of any unexpired United States or foreign patent or patent application that shall not have been withdrawn, canceled, or disclaimed, nor held invalid by a court of competent jurisdiction in an unappealed or unappealable
decision. 
  

	II.	 License 

2.1 License. Subject to the terms and conditions of this Agreement, SALARIUS hereby grants to HLBLS, in the Licensed Territory, a
royalty-bearing, exclusive sublicense under the SALARIUS Technology Rights to make, have made, use, offer to sell and sell Licensed Products, including the right under Article III Sublicenses to sublicense any or all of such rights, in the Field of
Use. 

  
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 2.2 SALARIUS Improvements - License Grant to HLBLS. SALARIUS hereby grants to HLBLS a
license with the right to sublicense to SALARIUS Improvements to the extent it has the rights to do so and to the extent necessary to make, have made, use, offer to sell and sell Licensed Products in the Licensed Territory in the Field of Use where,
but for this grant of SALARIUS Improvements, the exercise of such rights would constitute an infringement of a Valid Claim of the SALARIUS Improvements. With effect from the date of SALARIUS’s notice to HLBLS under Section 2.4 below the
SALARIUS Improvement reported in such notice shall be deemed to be part of the SALARIUS Patent Rights and subject to the terms and conditions of this Agreement. 

2.3 HLBLS Improvements - License Grant to SALARIUS. HLBLS hereby grants to SALARIUS a
non-exclusive, irrevocable, paid-up, royalty free, worldwide license with the right to sublicense through multiple tiers to HLBLS Improvements to the extent it has the
rights to do so where, but for this grant of HLBLS Improvements, the exercise of such rights would constitute an infringement of a Valid Claim of the HLBLS Improvements. Such license grant shall take effect from the date of HLBLS’s notice to
SALARIUS under Section 2.4 below. 
 2.4 Report of Improvements. SALARIUS shall report to HLBLS all SALARIUS Improvements and
HLBLS shall report to SALARIUS all HLBLS Improvements in each case along with a written description and sample thereof. Any such reports shall be made contemporaneously with the filing of the first patent application for the improvement. 

2.5 Assistance. SALARIUS shall provide HLBLS with the SALARIUS Know-how, which includes but is
not limited to structures and related biological data for the Invention, that is, as of the Effective Date, (1) under its control, and (2) in written or electronic form. Such SALARIUS Know-How shall
include the documents and materials listed in the attached Exhibit A. SALARIUS will grant HLBLS the right of reference and use of all prior data related directly to the Invention. SALARIUS shall provide later date SALARIUS Know-how as may be known and possessed by SALARIUS and as may be reasonably necessary for HLBLS to exploit the licenses granted in Section 2.1, including any materials related to the acquisition of Marketing
Authorizations for the Licensed Products. SALARIUS shall provide HLBLS with reasonable technical assistance at HLBLS’s cost in connection with such transfer of the information related to the SALARIUS
Know-how. 
 2.6 No Implied License: This Agreement shall not be construed to confer any
rights upon HLBLS by assumption, implication, estoppel, or otherwise as to any technology, patents, patent applications or other intellectual or tangible property rights of SALARIUS other than the SALARIUS Patents Rights and SALARIUS Improvements,
regardless of whether such patent rights or improvements shall be dominant or subordinate to any SALARIUS Patents Rights or SALARIUS Improvements. Notwithstanding any other provisions of this Agreement, SALARIUS retains the rights in the Territory
to use and license SALARIUS Technology Rights and SALARIUS Improvements outside the Field of Use. 

  
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 [ *** ] = Confidential material redacted and filed separately with the Commission.

 2.7 Government Rights. The Invention covered by SALARIUS Patents Rights was developed with partial United States Federal
sponsorship and is a “subject invention” as that term is defined under Title 35 United States Code Sections 200 through 204. This Agreement, including the rights granted hereunder, is subject to all of the terms and conditions of Title 35
United States Code Sections 200 through 204. HLBLS agrees to take all reasonable action necessary on its part as sublicensee to enable SALARIUS to satisfy its obligation thereunder. The United States Government has been granted a non-exclusive, nontransferable, irrevocable, paid-up license to practice or have practiced for on behalf of the United States the subject invention throughout the world. 

 

	III.	 Sublicenses 

3.1 Sublicensing Rights: HLBLS shall have the right, but not the obligation, to grant sublicenses (one a “Sublicense; more than one
“Sublicenses”) to SALARIUS Technology under this Agreement to its Affiliates and Third Parties, provided, however, that any such sublicense shall be subject to and in all material respects consistent with the material terms and conditions
of this Agreement, including but not limited to the following: 
 3.1.1 Binding Terms From University License Agreement. HLBLS shall
be bound by the obligations of SALARIUS under Sections 2.4(a) through (c), 8.1(a), (f) and (g), 8.2, 8.4, 17.1 and 25.1, and Articles 11 and 20 of the University License Agreement as if it were a party to the University License Agreement and shall
have the rights granted to a Sublicensee under Section 2.4(d) of the University License Agreement. HLBLS acknowledges that SALARIUS has provided it with a true copy of such sections and articles of the University License Agreement. Further any
Sublicenses granted by HLBLS shall provide that the obligations to SALARIUS under such sections and articles shall be binding upon the Sublicensee as if it were a party to the University License Agreement. HLBLS shall attach copies of such sections
and articles to all Sublicenses or faithfully reproduce such sections and articles within such Sublicenses. 
 3.2 Copy of
Sublicenses. HLBLS shall forward to UURF and SALARIUS a copy of any and all fully executed Sublicenses, and shall forward to SALARIUS annually a copy of such reports received by HLBLS from its Sublicensees during the preceding twelve
(12) month period under the Sublicenses as shall be pertinent to a royalty accounting under said Sublicenses. 
 3.3 University
License Agreement. HLBLS acknowledges that under Section 2.1(a) and (b) of the University License Agreement, UURF retained the right to (a) publish the general scientific findings from research conducted in whole or in part at the
University related to the Patent Rights (as defined in the University License Agreement); and (b) manufacture, have manufactured, use, practice, or license the Patent Rights for research, teaching and other educationally-related not for profit
purposes where “not for profit purposes” is limited to academic research or other not-for-profit scholarly purposes which are undertaken at a non-profit or government institution. 
  

	IV.	 License Fees and Royalties. 

4.1 Signing Milestone: HLBLS shall pay to SALARIUS a milestone of [ *** ] ([ *** ] US dollars) within 15 business days of
the Effective Date. 

  
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 [ *** ] = Confidential material redacted and filed separately with the Commission.

 4.2 Annual Net Royalties: HLBLS shall pay to SALARIUS a percentage of all Net Sales by HLBLS and its Affiliates of Licensed
Products covered by a Valid Claim of a patent or patent application of the SALARIUS Patent Rights according to the following schedule: 
  

			
	 Annual Net Sales
	  	Royalty on Net Sales
	 Annual Net Sales of less than [ *** ]
	  	[***]
	 Annual Net Sales of [ *** ] but less than [ *** ]
	  	[***]
	 Annual Sales of [ *** ] and above
	  	[***]

 4.3 Step Down Royalty: HLBLS shall pay to SALARIUS a step down royalty (the “Step Down
Royalty”) on Net Sales of each Licensed Product that is [ *** ] of the applicable rate under Section 4.1 above during the Step Down Royalty Term for the applicable Licensed Product where such Licensed Product utilizes SALARIUS Know-how. 
 4.4 Combination Patent Royalty: In the event that a Licensed Product(s) is sold in
combination with another product or products which themselves are not Licensed Product(s) (“Combination Products”), the royalty rate payable on such Combination Products will be the royalty rate set forth in Section 4.1 or 4.2, as
applicable, applied to a pro rata portion (i.e., “X”) of Net Sales of Combination Products according to the following formula: 
 X
= A/B, where 
 X = the pro rata portion of Net Sales attributable to the Licensed Products (expressed as a percentage), and 

A = the average invoice price of the component in the Combination Product utilizing the Licensed Products sold separately, and 

B = the average invoice price of the Combination Product. 

In the event a substantial number of separate sales are not made of one or more component(s) of the Combination Product during the relevant royalty period so
as to enable a reasonable calculation of average invoice prices of components, then Net Sales will be determined using the same formula shown above, where 

A = the total inventory cost of the component in the Combination Product utilizing Licensed Product, and 

B = the total inventory cost of all of the products and components in the Combination Product. 

Inventory cost would be determined in accordance with HLBLS’s regular accounting methods consistently applied. 

  
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 [ *** ] = Confidential material redacted and filed separately with the Commission.

 4.5 Sublicense Income: In the event that HLBLS grants Sublicenses under Section 3.1 above, HLBLS shall pay to SALARIUS
[ *** ] of all revenues in cash or in kind HLBLS and its Affiliates receive from the Sublicensees as consideration for the grant of rights under a Sublicense to make, have made, use, offer to sell and sell Licensed Products, including but not
limited to earned royalties and any lump sum fee that is not an earned royalty, including but not limited to any fixed fee, license fee, milestone payment, unearned portion of any minimum royalty payment, equity, joint marketing fee,
intellectual property cross license, research and development funding of more than [ *** ] over HLBLS’s cost of performing such research and development, and any other property, consideration
or thing of value given or exchanged for a Sublicense regardless of how HLBLS and Sublicensee characterize such payments or consideration. HLBLS shall only be required to pay SALARIUS once for Section 4.1 milestones. 

4.6 One Royalty: In no event shall more than one royalty be due SALARIUS for any Licensed Product sold by HLBLS or its Affiliates.
Payments under Section 4.5 above shall not be deemed to be royalties due SALARIUS. 
 4.7 Reports and Payments. HLBLS shall
deliver to SALARIUS within forty five (45) days after the calendar year in which the First Commercial Sale occurs, and within forty five (45) days after the end of each calendar quarter thereafter a written report detailing all royalty
bearing sales, if any, made of Licensed Products during the preceding calendar half year period, and detailing the amount of Net Sales made during such period and calculating the royalties due to Licensor pursuant to this Article 4. Each report
shall include at least the following: 
  

	 	(a)	 number or volume of Licensed Products manufactured, leased and sold by and/or for HLBLS, its Affiliates and
reported to HLBLS by all Sublicensees; 

  

	 	(b)	 accounting for Net Sales, noting the deductions applicable as provided in Section 1.25;

  

	 	(c)	 royalties, earned royalties, royalties due on other payments from Sublicensees, Affiliates, and assignees due
under this Article 4; 

  

	 	(d)	 total royalties then due to SALARIUS; 

 

	 	(e)	 names and addresses of all Sublicensees; 

 

	 	(f)	 the amount spent on product development; and 

 

	 	(g)	 an approximation of the number of full-time equivalent employees working on the Licensed Products.

 Each report shall be in substantially similar form as Exhibit “4.7” attached hereto. Each such report shall
be signed by an officer of HLBLS or Sublicensee (or the officer’s designee). Simultaneously with the delivery of each such report, HLBLS shall tender payment of all amounts shown to be due thereon and not then paid. If no royalties were due
during the reporting period, HLBLS shall so report. HLBLS will continue to deliver royalty reports to SALARIUS after the termination or expiration of this Agreement until such time as no royalties are due to SALARIUS. Payments to SALARIUS under
Sections 4.1 through 4.4 shall be due within forty five (45) days of HLBLS receiving the revenue from the Sublicensee with respect to which such payments are due. 

  
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 4.8 Foreign Exchange. The rate of exchange to be used in computing the amount of
currency equivalent in US Dollars shall be made at the rates of exchange utilized by HLBLS in its accounting system under K-IFRS to translate Korean Won into US Dollars and shall be calculated using the
appropriate exchange rate for such currency quoted by the Wells Fargo Bank foreign exchange desk on the close of business on the business day immediately preceding the date of such report. All amounts due under this Agreement shall be paid to
SALARIUS in United States Dollars (U.S.$) by wire transfer to an account in a United States bank designated by SALARIUS, or in such other form and/or manner as SALARIUS may reasonably request. 

4.9 Income Tax Withholding. If laws, rules or regulations require withholding of income taxes or other rates imposed upon payments set
forth in this Article 4, HLBLS may make such withholding payments as required and subtract such withholding payments from the payments set forth in this Article 4. HLBLS shall submit appropriate proof of payment of the withholding rates to SALARIUS
within a reasonable period of time. HLBLS shall use efforts consistent with its usual business practices to ensure that any withholding taxes imposed are reduced as far as possible under the provisions of the current or any future double taxation
treaties or agreements between foreign countries, and the Parties shall cooperate with each other with respect thereto, with the appropriate Party under the circumstances providing the documentation required under such treaty or agreement to claim
benefits thereunder. 
 4.10 Records: HLBLS shall keep full, complete and proper records and accounts of all sales of Licensed
Products by HLBLS, its Affiliates, and to the extent it acquires rights to do so, its Sublicensees and distributors, in accordance with K-IFRS, in sufficient detail and in the currencies in which the sale was
made to enable the royalties payable on each Licensed Product to be determined. All such records, statements, reports and accounts referred to in this Section 4.11 shall be retained for a period of three (3) years after the end of the
period to which they apply. 
 4.11 Audit Rights. During the term of this Agreement, SALARIUS shall have the right from time to time
(not to exceed once during each calendar year) to have a firm of independent certified public accountants inspect and copy, during normal business hours, and upon reasonable advance notice (not less than seventy two (72) hours), such books,
records and other supporting data of HLBLS as may be necessary to verify HLBLS’s computation of royalties and sublicense fees due under this Agreement. HLBLS shall cooperate and cause its Affiliates, to cooperate with such certified public
accountants. HLBLS shall audit the books and accounts of its Sublicensees and/or distributors, if any, using its independent auditor or a comparable reputable auditor. HLBLS shall share the results of its audit with SALARIUS. 

4.12 Incorrect Payment. If any such audit establishes that HLBLS has underpaid or overpaid the amount due, HLBLS shall promptly pay any
remaining amounts due as established by such audit or SALARIUS shall promptly refund any over payment. If the underpayment is by five percent (5%) or more during any calendar year, HLBLS shall reimburse SALARIUS for its out-of-pocket expense of such audit. with interest at the rate specified in Section 4.14 below for late payments on any such overdue payment from the date due until paid.

 4.13 Late Payments. Any payments or reimbursements due SALARIUS under this
Agreement that are not paid on the due date shall accrue interest at the lower of the rate of eighteen percent (18%) per annum, or the maximum rate allowed by law, from the due date until paid in full. 

 

	V.	 Joint Research Committee 

5.1 Joint Research Committee. The Parties shall establish a Joint Research Committee (the “JRC”) to ensure open and frequent
exchange between the Parties, monitor and review the progress of development of Licensed Products and the status of related activities before the Regulatory Authorities. 

5.2 Membership. The JRC shall include one (1) representative of each Party, each Party’s representative selected by that
Party. SALARIUS and HLBLS may each replace its JRC representative at any time, upon written notice to the other Party. 
 5.3
Meetings. The JRC shall meet at such times and locations as the Parties shall mutually agree, and shall meet or otherwise communicate regularly (at least once per quarter) by telephone, electronic mail, facsimile or videoconference. The JRC
shall also meet in person, by telephone, or by videoconference one (1) time per calendar year for the purpose of conducting a detailed technical review of all aspects of HLBLS and SALARIUS, its’ Affiliates’ and Sublicensees’
development and commercialization activities with respect to Licensed Products. Matters raised by such reviews may be referred by either Party for discussion and decision under Section 5.4 below. Additional representatives of the Parties may
attend JRC meetings as nonvoting participants. Each Party shall be responsible for all of its own expenses associated with the attendance of its representatives at such meetings. The first meeting of the JRC shall occur within forty-five
(45) business days after the Effective Date. 
 5.4 Decisions by the JRC: Decisions by the JRC will be made by consensus. If the
JRC is unable to reach agreement with respect to a particular matter within its purview within thirty (30) days, the matter will be submitted in writing to the Chief Executives of HLBLS and SALARIUS for discussion and resolution. In the event
that the Chief Executives of each Party cannot reach agreement within ten (10) business days after receiving the written submission from the JRC, which period may be extended by mutual agreement of the Parties, if the issue relates to
preclinical or clinical studies for a Licensed Product and SALARIUS reasonably believes the matter may have consequences outside the Licensed Territory such as but not limited publication of clinical trial results or regulatory filings, the Chief
Executive of SALARIUS shall have the right to make the decision. On all matters with consequences limited to the Licensed Territory, HLBLS shall have the right to make the decision. 

 

	VI.	 Obligations Related to Development, Costs, Marketing and Commercialization. 

6.1 HLBLS’s Diligence Obligations: Upon execution of this Agreement, HLBLS shall proceed with Commercially Diligent
Efforts itself or through the efforts of its Affiliates, Collaborators, Sublicensees, and their respective Affiliates to develop, make, have made, use, offer to sell and sell the Licensed Products in order to make them readily available to the
general public as soon as possible on commercially reasonable terms. Until such time as the first Marketing 

  
 -12- 

 
Authorization is approved for a Licensed Product, HLBLS shall document its efforts, which shall be consistent with those utilized by companies of similar size and type that have successfully
developed products similar to the Licensed Product(s). At a minimum, Commercially Diligent Efforts shall be based upon the commercialization plan submitted to SALARIUS by HLBLS as required under Section 6.2. 

6.2 Commercialization Plan: HLBLS shall deliver to SALARIUS, on or before six (6) calendar months after the Effective Date a
commercialization plan detailing each phase of development, the target markets and time frames toward First Commercial Sale of one or more Licensed Products. 

6.3 Preclinical Studies: SALARIUS shall use its reasonable commercial efforts to complete preclinical development and file an IND under
the US FDA. SALARIUS shall provide the preclinical study reports, data, and copy of the IND to HLBLS. HLBLS shall use its reasonable commercial efforts to file an Investigational New Drug (“IND”) application to initiate clinical studies of
Licensed Products under the MFDS within two (2) years after receiving the US FDA IND and preclinical study data. 
 6.4 Preclinical
Development Costs: Salarius shall provide its preclinical reports and data to HLBLS at no cost. HLBLS shall be responsible for costs associated with preclinical development and formulation development of Licensed Products where such development
is required by MFDS and was not submitted under US FDA. 
 6.5 Clinical Development Costs: HLBLS shall be responsible for all costs
associated with clinical development of Licensed Products undertaken solely in the Licensed Territory. The Parties may agree to collaborate on clinical development under MFDS and other Regulatory Authorities, and costs of such clinical development
will be shared on a pro-rata basis calculated by future market share projections. 
 6.6
Governmental Approvals: HLBLS shall be solely responsible for obtaining all necessary approvals from Regulatory Authorities in the Licensed Territory for the use, development, production, distribution, sale and import or export of any
Licensed Products, including but not limited to Marketing Authorizations, all at HLBLS’ expense, including, without limitation, preclinical and clinical trials and regulatory filings. HLBLS shall have sole responsibility for any warning labels,
packaging and instructions as to the use of Licensed Products and for the quality control for any Licensed Product. HLBLS, its Affiliates or Sublicensees shall own all regulatory filings and documents filed with the applicable Regulatory Authorities
with respect to the Licensed Products and all Marketing Authorizations in the Territory. 
 6.7 Salarius Assistance: SALARIUS shall
provide HLBLS with all information related to the Drug Technology, SALARIUS Patent Rights, and SALARIUS Know How, as may be known or possessed by SALARIUS in tangible form and as may be reasonably necessary for HLBLS to exploit the licenses granted
in this Agreement, including any materials related to the acquisition of any government approvals for the Licensed Products. SALARIUS shall provide HLBLS with reasonable technical assistance in connection with transfer of such information. 

  
 -13- 

 6.8 HLBLS Assistance: HLBLS shall provide SALARIUS with all information related to
the Drug Technology and HLBLS Improvements, as may be known or possessed by HLBLS and as may be reasonably necessary or convenient to assist for SALARIUS to exploit the Drug Technology, including any materials related to the acquisition of any
government approvals for the Licensed Products during the Agreement. HLBLS shall provide SALARIUS with reasonable technical assistance in connection with transfer of such information and English translations of such materials during the Agreement.

  

	VII.	 Data Sharing 

7.1 Additional Information: The Parties agree that from time to time as additional information and data become available that they will
promptly, but no later than thirty (30) days after requested by the other Party, share such information and data with the other Party. Such information and data shall include, without limitation,
pre-clinical data, clinical data, data from any toxicology studies, information related to the manufacturing of the Licensed Product, information relating to the patent protection surrounding the products as
well as regulatory status and correspondence with Regulatory Authorities, and marketing data. All data furnished by one Party to the other Party under this Agreement shall be deemed Confidential Information of the Party furnishing such data.
Notwithstanding the immediately preceding sentence, each Party may use such data in their INDs, and/or NDAs or similar documents used for regulatory development and product approval purposes, and for marketing purposes. 

7.2 Translations: HLBLS, its Affiliates and Sublicensees shall provide SALARIUS, at no cost to SALARIUS, with English translations of
all primary data, compilations, reports, JSC meeting proceedings, and studies which they generate relating to their preclinical, clinical and formulation development for Licensed Products and JSC proceedings. 

 

	VIII.	 Representations, Warranties, and Disclaimer 

8.1 Representations and Warranties of SALARIUS: SALARIUS hereby represents and warrants that: (i) SALARIUS has the authority,
including through agreement with the UURF, to grant to HLBLS all of the rights granted hereunder; (ii) SALARIUS has licensed, owns or controls all rights to the SALARIUS Technology Rights; and (iii) SALARIUS is unaware of any rights
superior to SALARIUS’s in the Drug Technology which would prevent HLBLS from fully exercising the rights licensed to it herein. 
 8.2
SALARIUS Disclaimer: SALARIUS specifically disclaims any guarantee that HLBLS will be successful in developing and commercializing a Licensed Product, in whole or in part. The failure of HLBLS to successfully develop or commercialize a
Licensed Product will not, of itself, constitute a breach of any representation or warranty or other obligation under this Agreement. SALARIUS does not make any representation or warranty or guaranty that the Drug Technology together with the
SALARIUS Technology will be sufficient for the successful development and commercialization of a Licensed Product. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, SALARIUS MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OR CONDITIONS
OF ANY KIND, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO THE DRUG TECHNOLOGY OR THE SALARIUS TECHNOLOGY, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, VALIDITY OF THE SALARIUS TECHNOLOGY, PATENTED OR
UNPATENTED, OR NON-INFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES. 

  
 -14- 

 8.3 Representations and Warranties of SALARIUS: HLBLS represents and warrants to
SALARIUS as follows: 
 8.3.1 Organization: It is a corporation duly organized, validly existing and in good standing under the laws
of the Republic of Korea. 
 8.3.2 Authority: It has full corporate power and authority to execute and deliver this Agreement and to
consummate the transactions contemplated hereby. All corporate acts and other proceedings required to be taken to authorize such execution, delivery, and consummation have been duly and properly taken and obtained. 

8.3.3 Enforceability: This Agreement has been duly executed and delivered by HLBLS and constitutes legal, valid, and binding
obligations of HLBLS enforceable against HLBLS in accordance with its terms. 
 8.3.4 Approvals and Consents: No approval,
authorization, consent, or other order or action of or filing with any court, administrative agency or other governmental authority is required for the execution and delivery by HLBLS of this Agreement or the consummation by HLBLS of the transaction
contemplated hereby. 
 8.3.5 No Conflicts: None of the execution, delivery, or performance of this Agreement by HLBLS
(i) conflicts with or results in a breach under the charter documents or any material contractual undertaking of HLBLS or its Affiliates or (ii) conflicts with or results in a violation of any of the laws of the jurisdiction of
incorporation of HLBLS. HLBLS has not, to the best of its knowledge entered into, nor will HLBLS, after the Effective Date, knowingly enter into any written or oral agreement that is or would be inconsistent with its obligations under this Agreement
or deprives or would deprive SALARIUS of the benefits of this Agreement. 
 8.4 Covenant of HLBLS: HLBLS hereby covenants and agrees
to use reasonable efforts to develop, and obtain all necessary regulatory approvals for, and commercialize Licensed Products in the Licensed Territory. 
  

	IX.	 Intellectual Property Rights 

9.1 Ownership: Between them SALARIUS and the UURF, shall own the entire right and title to all SALARIUS Technology Rights. 

9.2 Patent Maintenance Cost: With effect from the Effective Date HLBLS shall bear all costs of prosecuting, filing and maintaining
SALARIUS Patent Rights in the Licensed Territory, including without limitation, any taxes on such SALARIUS Patent Rights, including all reasonable future expenses for filing, prosecuting, enforcing, and maintaining the SALARIUS Patent Rights that
are licensed to Licensee, hereunder, including any such costs incurred by SALARIUS, within sixty (60) days. 

  
 -15- 

 9.3 Patent Prosecution and Maintenance: Subject to HLBLS’s compliance with
Section 9.2, SALARIUS shall be responsible, and use best efforts to prosecute the SALARIUS Patent Rights in the Licensed Territory and ensure that commercially reasonable efforts are made to file and prosecute (including conducting
interferences, re-examinations, reissues and oppositions, if any) the SALARIUS Patent Rights in the Licensed Territory and once issued to maintain such patent rights in force and in good standing. 

9.4 Patent Counsel: HLBLS will select a patent attorney who will have the responsibility to prosecute and maintain the SALARIUS Patent
Rights in the Licensed Territory. The selected patent attorney will agree to keep both SALARIUS and HLBLS informed as to all material information, material communications with governmental patent offices, material issues and decisions, and related
matters applicable to prosecuting the patent applications for the SALARIUS Patent Rights and for maintaining the SALARIUS Patent Rights in good standing. HLBLS shall and/or shall cause its selected patent attorney to provide SALARIUS with a copy of
material communications from the Korean Intellectual Property Office, all with English translations or in English, shall provide SALARIUS reasonable opportunity to review and comment on such prosecution efforts, and shall receive and reasonably
consider SALARIUS’s timely and commercially practicable comments and requests for changes. 
 9.5 Notification: If HLBLS decides
to discontinue its support of a specific patent or patent application in the SALARIUS Patent Rights, HLBLS will notify SALARIUS in writing ninety (90) days prior to any such discontinuation. HLBLS will be responsible for any reasonable patent
costs associated with such patent rights that are incurred up to ninety (90) days after the date of the notice. Upon such notification of HLBLS desire to discontinue, SALARIUS may in its sole discretion do whatever it wishes with the patent
without HLBLS having any further or future rights to it, as stated elsewhere in this agreement or otherwise. 
  

	X.	 Infringement: 

10.1 Notice of Infringement: Each Party shall promptly report in writing to the other Party during the term of this Agreement any:
(i) known infringement or suspected infringement of any of the SALARIUS Patent Rights in the Field of Use; or (ii) unauthorized use or misappropriation of the SALARIUS Technology Rights in the Field of Use by a third party of which it
becomes aware, and shall provide the other Party with all available evidence supporting said infringement, suspected infringement or unauthorized use or misappropriation. Within ninety (90) days after SALARIUS becomes, or is made, aware of any
of the foregoing, it shall decide whether or not to initiate an infringement or other appropriate suit and shall advise HLBLS of its decision in writing. The inability of SALARIUS to decide on a course of action within such ninety (90) day
period shall for purposes of this Agreement be deemed a decision not to initiate an infringement or other appropriate suit. 
 10.2
SALARIUS Option: Within ninety (90) days after SALARIUS becomes, or is made, aware of any infringement, suspected infringement or unauthorized use or misappropriation by a third party in the Field of Use in the Licensed Territory, as
provided in Section 10.1 above, and provided that SALARIUS shall have advised HLBLS of its decision to file suit within the ninety (90) day period provided in paragraph (a) above, SALARIUS shall have the right to initiate an
infringement or other appropriate suit anywhere in the world against such third party. 

  
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SALARIUS shall provide HLBLS with an opportunity to make suggestions and comments regarding such suit and shall promptly notify HLBLS of the commencement of such suit. SALARIUS shall keep HLBLS
promptly informed of, and shall from time to time consult with HLBLS regarding, the status of any such suit and shall provide HLBLS with copies of all documents filed in, and all written communications relating to, such suit. 

10.3 Conduct of Litigation: SALARIUS shall select counsel for any suit referred to in Section 10.2 above who shall be reasonably
acceptable to HLBLS. HLBLS shall pay eighty percent (80%) and SALARIUS shall pay twenty percent (20%) of the costs of such suit, including, without limitation, attorneys’ fees and court costs. Any damages, settlement fees or other consideration
for past infringement received as a result of such litigation shall be shared by SALARIUS and HLBLS pro rata based on their respective sharing of the costs of such litigation. If necessary HLBLS shall join as a party to the suit but shall be under
no obligation to participate beyond its above obligation to pay eighty percent (80%) of the costs of such suit, except to the extent that such participation is required as the result of being a named party to the suit. HLBLS shall have the right to
participate and be represented in any suit by its own counsel at its own expense. SALARIUS shall not settle any such suit involving rights of HLBLS without obtaining the prior written consent of HLBLS, which consent shall not be unreasonably
withheld. 
 10.4 HLBLS Rights to Sue: In the event that SALARIUS does not inform HLBLS of its intent to initiate an infringement or
other appropriate suit within the ninety (90)-day period provided in Section 10.1 above, or does not initiate such an infringement other appropriate action within the ninety
(90)-day period provided in Section 10.2 above, HLBLS shall have the right to exercise its rights under Korean law, at its expense, to initiate an infringement or other appropriate suit. In exercising its
rights pursuant to this Section 10.4, HLBLS shall have the sole and exclusive right to select counsel and shall pay all expenses of the suit including without limitation attorneys’ fees and court costs. If necessary, SALARIUS shall join as
a party to the suit and shall participate only to the extent that such participation is required as a result of its being a named party to the suit or being the holder of any patent at issue or being the owner of any SALARIUS Technology Rights at
issue. At HLBLS’s request, SALARIUS shall offer reasonable assistance to HLBLS in connection therewith at no charge to HLBLS except for reimbursement of reasonable
out-of-pocket expenses incurred in rendering such assistance. Without limiting the generality of the preceding sentence, SALARIUS shall cooperate fully in order to
enable HLBLS to institute any action hereunder. SALARIUS shall have the right to be represented in any such suit by its own counsel at its own expense. Any settlement or other consideration for past infringement received as a result of litigation
shall be applied to reimburse HLBLS for its costs of prosecuting the action. The remainder shall be reported as Net Sales during the reporting period in which the suit is settled or determined. No settlement shall be agreed to by HLBLS without the
consent of SALARIUS, which consent shall not be unreasonably withheld. 
 10.5 Claimed Infringement: 

10.5.1 Notice of Third Party Claim: In the event that a Third Party at any time provides written notice of a claim to, or brings an
action, suit or proceeding against, any Party or any of their respective Affiliates or Sublicensees, claiming infringement of its patent rights or copyrights or unauthorized use or misappropriation of its technology, based upon an assertion or claim
arising out of the development, manufacture, use or sale of Licensed Products in the Licensed Territory (“Claim of Infringement”), such Party shall promptly notify the other Party of the Claim of Infringement enclosing a copy of the claim
and/or all papers served. At the request of HLBLS, SALARIUS shall provide to HLBLS advice regarding the technical merits of any such claim. 

  
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 10.5.2 HLBLS Indemnity: SALARIUS shall defend HLBLS at SALARIUS’ cost and
expense, and will indemnify and hold harmless HLBLS, from and against any and all claims, losses, costs, damages, fees and expenses arising out of or in connection with the infringement or alleged infringement by a Licensed Product of any patent,
copyright, trade secret or other intellectual property right in the Licensed Territory of any Third Party and any settlements relating thereto {“Losses”), provided that SALARIUS shall have sole control and authority with respect to the
defense or settlement of any such claim or action and HLBLS shall cooperate fully with SALARIUS in the defense or settlement of any such claim or action. In the event that any Licensed Product becomes, or in SALARIUS’s opinion is likely to
become, the subject of a claim of infringement of any such patent, copyright, trade secret or other intellectual property right of any Third Party, SALARIUS may at its option either secure for HLBLS the right to continue using the SALARIUS
Technology, replace or modify the infringing or allegedly infringing Licensed Product to make it non-infringing without impairment of function or if neither of the foregoing alternatives is reasonably
available to SALARIUS, or terminate HLBLS’s rights and licenses to the Licensed Product under this Agreement. 
 10.5.3 SALARIUS
Indemnity: HLBLS shall indemnify, hold harmless and defend SALARIUS, UURF, the University, and their respective Affiliates, officers, employees and agents (the “SALARIUS Indemnitees”), against any and all Losses (including reasonable
fees of attorneys) resulting from or arising out of exercise of: (a) any license granted under this Agreement limited to Losses resulting from causes that are reasonably within HLBLS’s control, including but not limited to defects in
testing, labeling, manufacture or other application of the Licensed Products, or (b) any breach by HLBLS of any provision, representation, warranty or covenant given by HLBLS under this Agreement, or (c) any negligent or willful act,
error, or omission of HLBLS, its agents, employees, Affiliates, or Sublicensees, except to the extent that where such claims, suits, losses, damages, costs, liabilities, fees, or expenses result solely from the negligent acts or omissions, or
misconduct of the SALARIUS Indemnitees. HLBLS shall give SALARIUS timely notice of any claim or suit instituted of which HLBLS has knowledge that in any way, directly or indirectly, affects or might affect SALARIUS, and SALARIUS shall have the right
at its own expense to participate in the defense of the same. 
 10.5.4 No Liability: The provisions of Section 10.5.2
notwithstanding, SALARIUS shall not have any liability under Section 10.5 to the extent that any infringement or claim results from: (i) use of the Licensed Product in combination with some other product or pharmaceutical formulation not
supplied by SALARIUS where the Licensed Product itself would not be infringing; or (ii) modifications of the Licensed Product where the Licensed Product, if not modified by or for HLBLS, would not be infringing or (iii) Losses that result
from the negligent or willful act, error, or omission of HLBLS, its agents, employees, Affiliates, or Sublicensees or their respective its officers, employees or agents. 

  
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 [ *** ] = Confidential material redacted and filed separately with the Commission.

  

 10.5.5 Third Party Payments: Except as otherwise provided in this Section 10.5.5,
if HLBLS or any of its sublicensees, in order to operate under or exploit the license granted under Article 2 of this Agreement in the Licensed Territory, must, in HLBLS’s or its Sublicensee’s reasonable judgment, make payments to one or
more Third Parties to obtain a license or similar right under a patent in the absence of which Licensed Products could not legally be developed, manufactured, registered, used, marketed or sold in the Licensed Territory, such Third Party payments
shall reduce and be offset against the royalty payments otherwise due to SALARIUS in the Licensed Territory under Sections 4.1 through 4.4, provided that such offset does not reduce the royalty payments otherwise due by more than [ *** ] and
does not reduce the applicable royalty rate by more than [ *** ]. Any payments by HLBLS or any of its Sublicensees to one or more Third Parties to obtain a license or similar right under a patent pertaining to a pharmaceutical formulation
being delivered by Licensed Products shall not reduce or be offset against the payments due to SALARIUS or UURF under Article 4. During the course of negotiations between HLBLS or any of its sublicensees and such third party, SALARIUS shall render
to HLBLS and Agent’s sublicensees reasonable assistance as necessary for HLBLS or any of its sublicensees to secure such license or similar right. The negotiation and final terms of such license or similar right shall be in the sole discretion
of HLBLS and its sublicensees. 
 10.5.6 SALARIUS Responsibility: This Section 10.5 states the entire responsibility of SALARIUS
under this Agreement in the case of any claimed infringement or violation of any Third Party’s rights or unauthorized use or misappropriation of any Third Party’s technology. 

 

	XI.	 Insurance; Limitation of Liability 

11.1 Insurance: HLBLS shall maintain throughout the term of this Agreement, and shall use its best efforts to maintain for a reasonable
period of time thereafter, a commercial, general liability insurance policy, written by a reputable insurance carrier with an A.M. Best rating of “A” or better authorized to do business in the Licensed Territory, which will provide: 

 

	 	(a)	 the SALARIUS Indemnitees product liability coverage; 

 

	 	(b)	 includes a contractual endorsement providing coverage for all liability arising out of bodily injury and
property damage, or other damage alleged to relate to Licensed Products or activities undertaken in connection with this Agreement and Licensed Products, including the development, manufacture, use, sale or other disposition of Licensed Products and
all activities associated therewith; and 

  

	 	(c)	 provides the SALARIUS Indemnitees with product liability coverage in an amount no less than One Million United
States Dollars ($1,000,000) per occurrence for bodily injury and United States One Million Dollars ($1,000,000) per occurrence for property damage, subject to a reasonable aggregate amount of not less than Two Million United States Dollars
(US$2,000,000). 

  
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 HLBLS will use reasonable efforts to have the SALARIUS Indemnitees named as additional insureds. All rights
of subrogation will be waived against them and their insurers. The nature and extent of such insurance shall be commensurate with usual and customary industry practices for similarly situated companies. The specified minimum insurance amounts will
not constitute a limitation on HLBLS’s obligation to indemnify SALARIUS Indemnities under this Agreement. HLBLS shall provide SALARIUS with certificates of insurance evidencing the above insurance coverage upon request by SALARIUS. HLBLS will
provide SALARIUS with written notice of at least thirty (30) days prior to the cancellation, non-renewal, or material change in such insurance. 

11.2 Continuing Insurance Obligations: Licensee will maintain such commercial general liability insurance beyond the expiration or
termination of this Agreement during (i) the period that any Licensed Product(s) and/or Licensed Method(s) developed pursuant to this Agreement is being commercially distributed or sold by Licensee, any Affiliate, or any Sublicensee or agent of
Licensee; and (ii) for five (5) years after such period. 
 11.3 Limitation of Liability: Neither SALARIUS nor the UURF
shall be liable to HLBLS or, HLBLS’s Affiliates, sublicensees or any of its or their customers for any special, incidental, punitive, indirect or consequential damages arising from or relating to any breach of this Agreement regardless of any
notice of the possibility of such damages.. 
  

	XII.	 Patent Marking; Use of Name 

12.1 Patent Marking: HLBLS shall permanently and legibly mark all Licensed Products made, used or sold under the terms of this
Agreement, or their containers, in accordance with all applicable patent-marking and notice provisions as appropriate for the practice in the Licensed Territory. 

12.2 Use of Name: 
 12.2.1
By HLBLS: HLBLS may use the name “The University of Utah Research Foundation” and/or “Salarius Pharmaceuticals” in factually based materials related to the Licensed Products and the business of HLBLS; provided, however,
that HLBLS may not use the name of SALARIUS, UURF, the University, nor their respective officers, employees and agents, in connection with any name, brand or trademark related to Licensed Products without the prior express written consent of the
named party. For example, HLBLS may include a statement in promotional materials that refers to the fact that a product is based on technology developed at The University of Utah, but HLBLS may not include the name of SALARIUS, UURF, the University,
or like designation in a product or service name. 
 12.2.2 By SALARIUS: SALARIUS may use HLBLS’s name in connection with
SALARIUS’ publicity related to SALARIUS’ intellectual property and commercialization achievements following approval by HLBLS. 

  
 -20- 

	XIII.	 Confidential Information; Publications and Publicity 

13.1 Treatment of Confidential Information: Each Party shall maintain the Confidential Information of the other Party in confidence, and
shall not disclose, divulge or otherwise communicate such Confidential Information to others, or use it for any purpose, except pursuant to, and in order to carry out, the terms and objectives of this Agreement, and hereby agrees to exercise every
reasonable precaution to prevent and restrain the unauthorized disclosure (except to the extent in HLBLS’s case required to exercise the licenses granted under Article 2 and except in SALARIUS’s case SALARIUS shall have the right to
disclose such Confidential Information to potential investors, investors, advisors, consultants and for SALARIUS’s internal purposes) of such Confidential Information by any of its directors, officers, employees, consultants, subcontractors,
sublicensees, or agents. 
 13.2 Release from Restrictions: The provisions of Section 13.1 shall not apply to any Confidential
Information disclosed hereunder which: 
  

	 	(a)	 was known or used by the receiving Party prior to its date of disclosure to the receiving Party, as evidenced
by the prior written records of the receiving Party; or 

  

	 	(b)	 either before or after the date of the disclosure to the receiving Party is lawfully disclosed to the receiving
Party by sources other than the disclosing Party rightfully in possession of the Confidential Information; or 

  

	 	(c)	 either before or after the date of the disclosure to the receiving Party becomes published or generally known
to the public, other than through the sale of Licensed Products in the ordinary course, through no fault or omission on the part of the receiving Party or an Affiliate; or 

 

	 	(d)	 is independently developed by or for the receiving Party without reference to or reliance upon the Confidential
Information; or 

  

	 	(e)	 is required to be disclosed by the receiving Party to comply with applicable laws, to defend or prosecute
litigation or to comply with governmental regulations, provided that the receiving Party provides prior written notice of such disclosure to the other Party and takes reasonable and lawful actions to avoid and/or minimize the degree of such
disclosure. 

 13.3 Publications: The Parties will treat matters of authorship of scientific abstracts, manuscripts
or other publications (or presentations) in a proper collaborative spirit, giving credit where it is due. With respect to HLBLS’s publications and presentations, HLBLS shall not submit or present any written or oral publication, any manuscript,
abstract or the like which includes data or other information related to the SALARIUS Technology or Confidential Information without first obtaining the prior written consent of SALARIUS. 

13.4 Publicity: No public announcement concerning the existence or the terms of this Agreement shall be made, either directly or
indirectly, by either Party, except as may be legally required by applicable laws, regulations, or judicial order, without first obtaining the approval of the other Party and agreement upon the nature, text, and timing of such announcement, which
approval and agreement shall not be unreasonably withheld. The Party desiring to make any such public announcement shall provide the other Party with a written copy of the proposed announcement in sufficient time prior to public release to allow
such other Party to comment upon such announcement, prior to public release. Except as may be legally required by applicable laws, regulations or judicial order, neither Party shall issue any press release or make any public announcement which
includes or otherwise uses the name of the other Party in any public statement or document except with the prior written consent of such Party. 

  
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	XIV.	 Termination 

14.1 Term: Unless earlier terminated in accordance with the provisions of this Agreement, this Agreement commences on the Effective Date
and shall continue in full force until there are no remaining royalty payment obligations, at which time the Agreement shall expire. 
 14.2
Termination of University Agreement: The Parties shall use their best efforts, upon the termination of the University License Agreement, to execute a license between HLBLS and UURF which continues the royalty rates contained in
this Agreement and such other terms substantially similar to those under this Agreement. 
 14.3 Termination by SALARIUS: Should
HLBLS at any time prior to the First Commercial Sale of the first Licensed Product cease Commercially Diligent Efforts towards the First Commercial Sale of a Licensed Product, SALARIUS may terminate this Agreement on notice to HLBLS. 

14.4 Termination for Breach: 

14.4.1 SALARIUS Breach: HLBLS shall be entitled to terminate this Agreement by written notice to SALARIUS in the event that SALARIUS
shall be in default of any of its obligations hereunder and shall fail to remedy any such default within one hundred twenty (120) days after notice thereof by HLBLS. 

14.4.2 Nonpayment: In the event HLBLS fails to pay any amounts due and payable to SALARIUS hereunder, and fails to make such payments
within thirty (30) days after receiving written notice of such failure, SALARIUS may (in addition to such other remedies as SALARIUS may have in law or in equity) terminate this Agreement immediately upon notice to HLBLS. 

14.4.3 HLBLS Breach: SALARIUS shall be entitled to terminate this Agreement by written notice to HLBLS in the event that HLBLS shall be
in default of any of its obligations hereunder and shall fail to remedy any such default within one hundred twenty (120) days after notice thereof by SALARIUS. 

14.5 Cessation of Business or Insolvency: To the extent permitted by law, if either Party shall become Insolvent, or shall make or seek
to make or arrange an assignment for the benefit of creditors, or if proceedings in voluntary or involuntary bankruptcy shall be initiated by, on behalf of or against such Party (and, in the case of any such involuntary proceeding, not dismissed
within one hundred and twenty (120) days), or if a receiver or trustee of such Party property shall be appointed and not discharged within one hundred and twenty (120) days, the other Party shall have the right to terminate this Agreement.

  
 -22- 

 14.6 Consequences of Expiration or Termination: 

14.6.1 Rights Upon termination by SALARIUS: Upon termination of this Agreement under Section 14.2 or by SALARIUS under
Section 14.3, 14.4 or 14.5, (i) all rights and licenses granted by SALARIUS to HLBLS shall terminate and revert to SALARIUS and (ii) HLBLS shall return to SALARIUS or destroy at SALARIUS’ option the SALARIUS Know-how. In addition HLBLS shall at no cost to SALARIUS transfer to SALARIUS the benefit of all development work and Market Authorizations that it has obtained or under its control. At the same time, HLBLS shall
provide to SALARIUS at no cost to SALARIUS all CMC data, preclinical testing and stability data and results and clinical trial data and results relating to the development of Licensed Products and a technology transfer package for all processes,
formulations, and protocols for the manufacture of Licensed Products. If HLBLS has licensed any technology from Third Parties relating to the SALARIUS Technology or any Licensed Product, HLBLS shall use commercially reasonable efforts to obtain the
rights to transfer and to transfer such rights to SALARIUS at no cost to SALARIUS. 
 14.6.2 Payments: Not later than ninety
(90) days after the expiration or termination date of this Agreement, each Party shall pay to the other Party any amounts that are then due and payable, including but not limited to any final period royalty report and payment. 

14.7 Survival of Obligations; Return of Confidential Information: Termination or expiration of this Agreement for any reason shall be
without prejudice to any rights which shall have accrued to the benefit of either Party prior to such termination or expiration, including but not limited to the obligations of the Parties with respect to the protection and nondisclosure of
Confidential Information and product liability indemnification, and shall not relieve either Party from its obligations which are expressly indicated to survive expiration or termination of this Agreement, including, without limitation, those under
Sections 8.2, 9.1, 11.2, 11.3, 12.2, 14.6 and 14.7, and Articles I, IV, XIII, XV and XVI. 
  

	XV.	 Dispute Resolution 

15.1 Settlement of Disputes; Arbitration: All disputes under this Agreement shall be submitted to the chief executive officer of each
Party. If the chief executive officers are unable to resolve the matter within thirty (30) days after the written submittal of a dispute, either Party may submit the matter for resolution by binding arbitration. Any such arbitration shall be
held in accordance with the Rules of Arbitration of the International Chamber of Commerce (“ICC”). Each such arbitration shall be conducted by a panel of three arbitrators with experience in the international pharmaceutical industry. One
arbitrator shall be appointed by each of SALARIUS and HLBLS and the third shall be appointed by the party appointed arbitrators. In the event the party appointed arbitrators are unable to agree on the third arbitrator within ten (10) days of
the first party appointed arbitrator being notified by the appointing party to the other party, the third arbitrator shall be appointed by the ICC as Appointing Authority in accordance with its rules. Any such arbitration shall be held in New York,
New York or such other forum to which the Parties may agree, and shall be held in the English language. Either Party may, notwithstanding this Agreement, seek from any judicial authority pre-award interim,
provisional or conservatory relief that may be necessary to protect the rights of that party pending the arbitral tribunal’s determination of the merits of the controversy. The arbitrators shall determine the proportion in which the Parties
shall pay the costs and fees of the arbitration and, if the arbitrators determine appropriate, each Party’s reasonable costs (including, without limitation, attorneys’ fees) and expenses incurred in connection with such arbitration.
Judgment upon an award rendered by the arbitrators may be entered in any court having jurisdiction at the option of the prevailing party. 

  
 -23- 

 15.2 Non-Arbitrable Disputes:
Section 15.1 shall not apply to any dispute, controversy or claim that concerns (i) the validity, enforceability or infringement of a SALARIUS Patent Right, trademark or copyright; or (ii) any antitrust, anti-monopoly or competition
law or regulation, whether or not statutory. All such disputes, controversies or claims, and all judicial actions brought in order to enforce the instituting Party’s rights hereunder through specific performance, injunction or similar equitable
relief, shall be brought only in the state or federal courts sitting in Wilmington, Delaware. The Parties hereby submit to the exclusive jurisdiction of such courts. 
  

	XVI.	 Miscellaneous 

16.1 Governing Law: This Agreement shall be governed by, subject to and interpreted in accordance with the laws of the State of
Delaware, United States of America excluding any choice of law rules, which may direct the application of the laws of another jurisdiction. The application of the UN Convention on Contracts for the International Sale of Goods (1980) is
excluded. 
 16.2 Waiver: The waiver by either Party of a breach or a default of any provision of this Agreement by the other Party
shall not be construed as a waiver of any succeeding breach of the same or any other provision, nor shall any delay or omission on the part of a Party to exercise or avail itself of any right, power or privilege that it has or may have hereunder
operate as a waiver of any right, power or privilege by such Party. 
 16.3 Notices: Any consents, approvals, notices, payments,
reports, requests and other communications made under this Agreement shall be in writing, shall specifically refer to this Agreement, and shall be addressed to the appropriate Party at the address specified below, or such other address as may be
specified by such Party in writing in accordance with this Section 16.3, and shall be deemed to have been given for all purposes (a) when received, if hand-delivered or sent by confirmed facsimile or a reputable courier service, or
(b) five (5) business days after mailing, if mailed by first class certified or registered airmail, postage prepaid, return receipt requested 
  

			
	 To HLBLS:
	  	HLB LifeScience Co., LTD
A-602, JNK Digital Tower,
111, Digital-ro 26-gil,
Guro-gu
Seoul, Korea
		
	 To SALARIUS:
	  	 Salarius Pharmaceuticals, Inc.
2450 Holcombe Blvd., Suite J
Houston, TX 77021 USA

 16.4 No Agency: Nothing herein shall be deemed to constitute HLBLS, on the one hand, or SALARIUS, on
the other hand, as the agent or representative of the other, or as joint venturers or partners for any purpose. Neither HLBLS, on the one hand, nor SALARIUS, on the other hand, shall be responsible for the acts or omissions of the other. No Party
will have authority to speak for, represent or obligate the other Party in any way without prior written authority from such other Party. 

  
 -24- 

 16.5 Entire Agreement: This Agreement and the Attachment and Exhibits (which
Attachment and Exhibits are deemed to be a part of this Agreement for all purposes) contain the full understanding of the Parties with respect to the subject matter hereof and supersede all prior understandings and writings relating thereto. No
waiver, alteration or modification of any of the provisions hereof shall be binding unless made in writing and signed by the Parties. 

16.6 Interpretation: Each definition in this Agreement includes the singular and the plural, and reference to the neuter gender
includes the masculine and feminine where appropriate. References to any statutes or regulations mean such statutes or regulations as amended at the time of interpretation and include any successor legislation or regulations. The headings to the
Articles and Sections of this Agreement are for convenience of reference and shall not affect the meaning or interpretation of this Sublicense Agreement. Except as otherwise stated, reference to Articles, Sections, Parties and Exhibits mean the
Article of, Sections of, Parties to and Exhibits to this Agreement. The Exhibits are hereby incorporated by reference into and shall be deemed a part of this Agreement. Unless the context clearly indicates otherwise, the word “including”
means “including but not limited to.” 
 16.7 Severability: If and to the extent that any court or tribunal of competent
jurisdiction holds any of the terms, provisions or conditions or parts thereof of this Agreement, or the application hereof to any circumstances, to be illegal, invalid or to be unenforceable in a final
non-appealable order, (i) such provision shall be fully severable, (ii) this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a
part hereof, (iii) the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom and (iv) in lieu of such illegal,
invalid or unenforceable provision, there shall be added automatically as a part of this Agreement, a legal, valid and enforceable provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible. 

16.8 Assignment: Neither Party to this Agreement may assign its rights or obligations hereunder without the prior written consent of
the other Party; except that a Party may make such an assignment without the other Party’s consent to Affiliates or to a successor to substantially all of the business of such Party to which this Agreement relates (whether by merger, sale of
stock, sale of assets or other transaction). Any permitted successor or assignee of rights and/or obligations hereunder shall, in writing to the other Party, expressly assume performance of such rights and/or obligations. Any permitted assignment
shall be binding on the successors of the assigning Party. Any assignment or attempted assignment by either Party in violation of the terms of this Section 16.8 shall be null, void and of no legal effect.. 

16.9 Successors and Assigns: This Agreement shall be binding upon and inure to the benefit of the Parties and their successors and
permitted assigns. 
 16.10 English Language: This Agreement has been executed and delivered in a text using the English language and
the English language text shall prevail in the interpretation, application, and construction of this Agreement. 

  
 -25- 

 16.11 Counterparts: This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original but all of such together shall constitute one and the same instrument. This Agreement may be signed and delivered to the other Party by facsimile signature; such transmission will be deemed a valid
signature. 
 16.12 Force Majeure: No Party to this Agreement shall be responsible to the other Party for nonperformance or delay in
performance of the terms or conditions of this Agreement to the extent due to acts of God, acts of governments, war, riots, strikes, accidents in transportation, or other causes beyond the reasonable control of such Party. In the event of the
occurrence of such an event, the Party so affected shall give prompt written notice to the other Party, stating the period of time the occurrence is expected to continue and shall use best efforts to end the failure or delay and ensure that the
effects of such Force Majeure are minimized. 
 16.13 Affiliates: Each Party may discharge any obligations and exercise any right
hereunder through any of its Affiliates. Each Party hereby guarantees the performance by its Affiliates of such Party’s obligations under this Agreement, and shall cause its Affiliates to comply with the provisions of this Agreement in
connection with such performance. Any breach by a Party’s Affiliate of any of such Party’s obligations under this Agreement shall be deemed a breach by such Party, and the other Party may proceed directly against such Party without any
obligation to first proceed against such Party’s Affiliate. 
 16.14 Further Assurances: Each Party agrees to execute,
acknowledge and deliver such further instruments, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement. 

16.15 Binding Nature and Inurnment: This Agreement will not be binding upon the Parties until it has been signed below on behalf of
each Party, in which event, it shall be effective as of the Effective Date. 
 16.16 Compliance with Laws: Nothing contained in this
Agreement shall require or permit SALARIUS or HLBLS to do any act inconsistent with the requirements of any Republic of Korea, United States or other applicable jurisdiction’s law, regulation or executive order as the same may be in effect from
time to time. 
 16.17 Government Approvals: Each Party shall be responsible for obtaining all necessary approvals required from its
respective home government to enter into and perform its respective obligations under this Agreement and hereby represents and warrants that it has or will obtain all such approvals. To the extent that a Party is unable to perform one or more of its
obligations due to a reasonable delay in obtaining any such necessary approval, such party shall be excused from performing such one or more of its obligations until it obtains such necessary approval, provided that no such delay shall exceed six
(6) months without the consent of the other Party. In the event that such home government issues the necessary approvals, but with unacceptable conditions to either Party, or any change in either Party’s home government’s policy,
regulation, administrative practice or law requires any material adverse change in the terms and conditions of this Agreement, the Parties shall renegotiate such terms and conditions in good faith to restructure or modify such terms and conditions
in order to give effect to the spirit and intent of this Agreement. Should the Parties be unable to come to terms within six (6) months of the first notice from either Party to the other of such requirement, either Party may terminate the
applicable agreement or agreements on notice to the other. 

  
 -26- 

 16.18 Not Binding until Signed: This Agreement shall not be binding
upon the Parties until it has been signed below by or on behalf of each Party. 
 [ signature page follows ] 

  
 -27- 

 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed in their names by their
properly and duly authorized officers or representatives as of the date first above written. 
  

									
	 Salarius Pharmaceuticals, LLC
	 		 	HLB LifeScience Co., LTD.
					
	 By:
	 	/s/ Jonathan P. Northrup	 		 	By:	 	 /s/ Ha Young Kim

	Name: Jonathan P. Northrup	 		 	 Name: Ha Young Kim

	Title: Executive Chair	 		 	 Title: CEO

			
	Date: 11/17/2016	 		 	 Date: 11/25/2016

  
 -28- 

 ATTACHMENT 1 

Product Profile 
 SP-2577 Product Profile 
 Drug Name: SP-2577mesylate salt 

Chemical Name: (E)-N’-(1-(5-chloro-2-hydroxyphenyl)ethylidene)-3-((4-methylpiperazin-1-yl)sulfonyl)benzohydrazide
 methanesulfonate salt 
 Chemical Formula: C20H23CIN4O4S.CH3SO3H 

  
 -29- 

 Attachment 2 

SALARIUS Patent Rights 
 Patents:
WO20l3025805A1; Substituted (E)-N’-(1-phenylethylidene) benzohydrazide analogs as histone demethylase inhibitors 

Patent Applications: US2015/0065495A1; Substituted-1H-Benzimidazole series
compounds as Lysine-specific Demethylase 1 (LSD1) inhibitors 
 EXHIBIT A 

SALARIUS Know-how 

  
 -30-EX-10.3

 Exhibit 10.3 

Confidential Treatment Requested. Confidential portions of this document have been redacted and have been separately filed with the Commission. 

DP160014 
 David Arthur 

 
 

 
 STATE OF TEXAS 
 COUNTY OF
TRAVIS 
 This CANCER RESEARCH GRANT CONTRACT (“Contract”) is by and between the Cancer Prevention and Research Institute of Texas
(“CPRIT”), hereinafter referred to as the “INSTITUTE”, acting through its Chief Executive Officer, and Salarius Pharmaceuticals LLC, hereinafter referred to as the “RECIPIENT”, acting through its authorized signing
official. 
 RECITALS 
 WHEREAS,
pursuant to TEX. HEALTH & SAFETY CODE, Ch. 102, the INSTITUTE may make grants to public and private persons in this state for research into the causes and cures for all types of cancer in humans; facilities for use in research into the
causes and cures for cancer; research to develop therapies, protocols, medical pharmaceuticals, or procedures for the cure or substantial mitigation of all types of cancer; and cancer prevention and control programs. 

WHEREAS, Article III, Section 67 of the Texas Constitution expressly authorizes the State of Texas to sell general obligation bonds on behalf of the
INSTITUTE and for the INSTITUTE to use the proceeds from the sale of the bonds for the purposes of cancer research and prevention programs in this state. 

WHEREAS, the INSTITUTE issued a request for applications for RFA P-16-NEWCO-1: New Company Product Development Awards on or about August 2015. 
 WHEREAS, pursuant to TEX.
HEALTH & SAFETY CODE § 102.251, and after a review by the INSTITUTE’S scientific research and prevention program committees, the INSTITUTE has approved a Grant (defined below) to be awarded to the RECIPIENT. 

WHEREAS, to ensure that the Grant provided to the RECIPIENT pursuant to this Contract is utilized in a manner consistent with Tex. Const. Article Ill,
Section 67 and other laws, and in exchange for receiving such Grant, the RECIPIENT agrees to comply with certain conditions and deliver certain performance. 

WHEREAS, the RECIPIENT and the INSTITUTE desire to set forth herein the provisions relating to the awarding of such monies and the disbursement thereof to the
RECIPIENT. 
 IN CONSIDERATION of the Grant and the premises, covenants, agreements, and provisions contained in this Contract, the parties agree to the
following terms and conditions: 

 DP160014 

David Arthur 
  

 Article I 

DEFINITIONS 
 The following terms shall
have the following meaning throughout this Contract and any Attachments and amendments. Other terms may be defined elsewhere in this Contract. 

(1) Collaborator - any entity other than the RECIPIENT having one or more personnel participating in the Project and
(a) designated as a collaborator in the application submitted by the RECIPIENT requesting the Grant funds awarded by the INSTITUTE, or (b) otherwise approved in writing as a collaborator by the INSTITUTE. 

(2) Contractor - any person or entity, other than a Collaborator or the RECIPIENT (or their respective personnel), who is
contracted by the RECIPIENT to perform activities for the Project. 
 (3) Equipment - an article of tangible, nonexpendable
personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. 
 (4) Grant
- the funding assistance authorized by TEX. HEALTH & SAFETY CODE, Ch. 102 in the amount specified in Section 2.01 and awarded by the INSTITUTE to the RECIPIENT to carry out the Project pursuant to the terms and conditions of this
Contract. 
 (5) Indirect Costs - the expenses of doing business that are not readily identified with a particular grant,
contract, project, function or activity, but are necessary for the general operation of the organization or the performance of the organization’s activities. 

(6) Institute-Funded Activity- all aspects of work conducted on or as part of the Project. 

(7) Non-Profit Organization - a university or other institution of higher education or
an organization of the type described in 501(c)(3) of the Internal Revenue Code of 1986, as amended (26 U.S.C. 501 (c)(3)) and exempt from taxation under 501 (a) of the Internal Revenue Code (26 U.S.C. 501 (a)) or any nonprofit scientific or
educational organization qualified under a state nonprofit organization statute. 
 (8) Principal Investigator/Program
Director - the individual designated by the RECIPIENT to direct the Project who is principally responsible and accountable to the RECIPIENT and the INSTITUTE for the proper conduct of the Project. References herein to “Principal
Investigator/Program Director” include Co-Principal Investigators or Co-Program Directors as well. The Principal Investigator/Program Director and Co-Principal Investigators or Co-Program Directors are set forth on Attachment A. 

(9) Project - the activities specified or generally described in the Scope of Work or otherwise in this Contract (including
without limitation any of the Attachments to the Contract) that are approved by the INSTITUTE for funding, regardless of whether the INSTITUTE funding constitutes all or only a portion of the financial support necessary to carry them out. 

(10) Recipient Personnel - The RECIPIENT’s Principal Investigator/Program Director and RECIPIENT’s employees and
consultants working on the Project. 

  
 2 

 DP160014 

David Arthur 
  

 Article II 

GRANT AWARD 

Section 2.01 Award of Monies. In accordance with the provisions of this Contract and any applicable agency administrative
rules, the INSTITUTE shall disburse the proceeds of the Grant to the RECIPIENT in an amount not to exceed $ 18,668,717 to be used solely for the Project. This award is subject to compliance with the Scope of Work and demonstration of progress
towards achievement of the milestones set forth in Section 2.02. This Grant is not intended to be a loan of money. 

Section 2.02 Scope of Work and Milestones. The RECIPIENT shall perform the Project in accordance with this Agreement and as
outlined in Application DP160014 submitted by the RECIPIENT and approved by the INSTITUTE. The RECIPIENT shall conduct the Project within the State of Texas with Texas-based employees, Contractors and/or Collaborators unless otherwise specified in
the Scope of Work or the Approved Budget. The INSTITUTE and the RECIPIENT hereby adapt the terms of Attachment A in their entirety, incorporate them as if fully set forth herein, and agree that the Project description, goals, timeline and milestones
included as Attachment A accurately reflect the Scope of Work of the Project to be undertaken by the RECIPIENT (the “Scope of Work”) and the milestones expected to be achieved. RECIPIENT and the INSTITUTE mutually agree that the outcome of
scientific research is unpredictable and cannot be guaranteed. The RECIPIENT shall use commercially reasonable efforts to complete the goals of the Project pursuant to the timeline reflected in Attachment A and shall timely notify the INSTITUTE if
circumstances occur that materially and adversely affect completion thereof. Modifications, if any, to the Scope of Work must be agreed to in writing by both parties as set forth in Section 2.06 “Amendments and Modifications” herein.
Material changes to the Scope of Work include, but are not limited to, changes in key personnel involved with the Project, the site of the Project, and the milestones expected to be achieved. 

Section 2.03 Contract Term. The Contract shall be effective as of June 01, 2016 (the “Effective Date”) and
terminate on May 31, 2019 or in accordance with the Contract termination provisions set forth in Article VIII herein, whichever shall occur first (the “Termination Date”). Unless otherwise approved by the INSTITUTE as evidenced by
written communication from the INSTITUTE to the RECIPIENT and appended to the Contract, Grant funds distributed pursuant to the Contract shall be expended no earlier than the Effective Date or subsequent to the Termination Date. If, as of the
Termination Date, the RECIPIENT has not used Grant money awarded by the INSTITUTE for permissible services, expenses, or costs related to the Project and has not received approval from the INSTITUTE for a no cost extension to the contract term
pursuant to Section 3.11 “Carry Forward of Unspent Funds and No Cost Extension” herein, then the RECIPIENT shall not be entitled to retain such unused Grant funds from the INSTITUTE. Certain obligations as set forth in
Section 9.09 of this Contract shall extend beyond the Termination Date. 
 Section 2.04 Contract Documentation. The
Contract between the INSTITUTE and the RECIPIENT shall consist of this final, executed Contract, including the following Attachments to the Contract, all of which are hereby incorporated by reference: 

 

	 	(a)	 Attachment A — Project Description, Goals and Timeline 

  
 3 

 DP160014 

David Arthur 
  

	 	(b)	 Attachment B — Approved Budget, including changes approved by the INSTITUTE subsequent to execution of the
Contract. 

  

	 	(c)	 Attachment C —Assurances and Certifications 

 

	 	(d)	 Attachment D — Intellectual Property and Revenue Sharing 

 

	 	(e)	 Attachment E — Reporting Requirements 

 

	 	(f)	 Attachment F — Approved Amendments to Contract, excluding budget amendments reflected in Attachment B.

 Section 2.05 Entire Agreement. All agreements, covenants, representations, certifications and
understandings between the parties hereto concerning this Contract have been merged into this written Contract. No prior contemporaneous representation, agreement or understanding, express or implied, oral or otherwise, of the parties or their
agents that may have related to the subject matter hereof in any way shall be valid or enforceable unless embodied in this Contract. 

Section 2.06 Amendments and Modifications. Requested amendments and modifications to the Contract must be submitted in
writing to the INSTITUTE for review and approval (such approval shall not be unreasonably withheld.) Amendments and modifications (including alterations, additions, deletions, assignments and extensions) to the terms of this Contract shall be made
solely in writing and shall be executed by both parties. The approved amendment shall be reflected in Attachment A if it is change to the Scope of Work, or as part of Attachment B if it is a budget amendment, or as part of Attachment F for all other
changes. 
 Section 2.07 Relationship of the Parties. The RECIPIENT shall be responsible for the conduct of the Project
that is the subject of this Contract and shall direct the activities and at all times be responsible for the performance of Recipient Personnel, Collaborators, Contractors and other agents. The INSTITUTE does not assume responsibility for the
conduct of the Project or any Institute-Funded Activity that is the subject of this Contract. The INSTITUTE and the RECIPIENT shall perform their respective obligations under this Contract as independent contractors and not as agents, employees,
partners, joint venturers, or representatives of the other party. Neither party is permitted to make representations or commitments that bind the other party. 

Section 2.08 Subcontracting. Any and all subcontracts entered into by the RECIPIENT in relation to the performance of
activities under the Project shall be in writing and shall be subject to the requirements of this Contract. Without in any way limiting the foregoing, the RECIPIENT shall enter into and maintain a written agreement with each such permitted
Contractor with terms and conditions sufficient to ensure the RECIPIENT fully complies with the terms of this Contract, including without limitation the terms set forth in Attachments C, 0, and E. The RECIPIENT agrees that it shall be responsible to
the INSTITUTE for the .performance of and payment to any Contractor. Any reimbursements made by the RECIPIENT to a Contractor shall be made in accordance with the applicable provisions of TEX. GOVT. CODE, Ch. 2251. 

Section 2.09 Transfer or Assignment by the Recipient. This Contract is not transferable or otherwise assignable by the
RECIPIENT, whether by operation of law or otherwise, without the prior written consent of the INSTITUTE, except as provided in this Section 2.09. Any such attempted transfer or assignment without the prior written consent of the INSTITUTE
(except as 

  
 4 

 DP160014 

David Arthur 
  

 
provided in this Section 2.09) shall be null, void and of no effect. For purposes of this section, an assignment or transfer of this Contract by the RECIPIENT in connection with a merger,
transfer or sale of all or substantially all of the RECIPIENT’s assets or business related to this Contract or a consolidation, change of control or similar transaction involving the RECIPIENT shall not be deemed to constitute a transfer or
assignment, so long as such action does not impair or otherwise negatively impact the revenue sharing terms in Attachment D. Nothing herein shall be interpreted as superseding the requirement that the Project be undertaken in Texas with Texas-based
employees. 
 If the Principal Investigator leaves the employment of the RECIPIENT or is replaced by the RECIPIENT for any reason during the course of the
Grant with someone who is not already designated a co-Principal Investigator in the Application, the RECIPIENT shall notify the INSTITUTE prior to replacing the Principal Investigator. Written approval by the
INSTITUTE is required for the replacement of the Principal Investigator with someone who is not already a co-Principal Investigator in the Application, which approval shall not be unreasonably withheld,
conditioned or delayed. 
 Section 2.10 Representations and Certifications. The RECIPIENT represents and certifies to the
best of its knowledge and belief to the INSTITUTE as follows: 
  

	 	(a)	 It has legal authority to enter into, execute, and deliver this Contract, and all documents referred to herein,
and it has taken all actions necessary to its execution and delivery of such documents; 

  

	 	(b)	 It will comply with all of the terms, conditions, provisions, covenants, requirements, and certifications in
this Contract, applicable statutory provisions, agency administrative rules, and all other documents incorporated herein by reference; 

  

	 	(c)	 It has made no material false statement or misstatement of fact in connection with this Contract and its
receipt of the Grant, and all of the information it previously submitted to the INSTITUTE or that it is required under this Contract to submit to the INSTITUTE relating to the Grant or the disbursement of any of the Grant is and will be true and
correct at the time such statement is made; 

  

	 	(d)	 It is in compliance in all material respects with provisions of its charter and of the laws of the State of
Texas, and of the laws of the jurisdiction in which it was formed, and (i) there are no actions, suits, or proceedings pending, or threatened, before any judicial body or governmental authority against or affecting its ability to enter into
this Contract, or any document referred to herein, or to perform any of the material acts required of it in such documents and (ii) it is not in default with respect to any order, writ, injunction, decree, or demand of any court or any
governmental authority which would impair its ability to enter into this Contract, or any document referred to herein, or to perform any of the material acts required of it in such documents; 

 

	 	(e)	 Neither the execution and delivery of this Contract or any document referred to herein, nor compliance with any
of the terms, conditions, requirements, or provisions contained in this Contract or any documents referred to herein, is prevented by, is a breach of, or will result in a breach of, any term, condition, or provision of any agreement or document to
which it is now a party or by which it is bound; and 

  
 5 

 DP160014 

David Arthur 
  

	 	(f)	 It shall furnish such satisfactory evidence regarding the representations and certifications described herein
as may be required and requested by the INSTITUTE from time to time. 

 Section 2.11 Reliance upon
Representations. By awarding the Grant and executing this Contract, the INSTITUTE is relying, and will continue to rely throughout the term of this Contract, upon the truthfulness, accuracy, and completeness of the RECIP1ENT’s written
assurances, certifications and representations. Moreover, the INSTITUTE would not have entered into this Contract with the RECIPIENT but for such written assurances, certifications and representations, The RECIPIENT acknowledges that the INSTITUTE
is relying upon such assurances, certifications and representations and acknowledges their materiality and significance. 

Section 2.12 Contingent upon Availability of Grant Funds. This Contract is contingent upon funding being available for the
term of the Contract and the RECIPIENT shall have no right of action against the INSTITUTE in the event that the INSTITUTE is unable to perform its obligations under this Contract as a result of the suspension, termination, withdrawal, or failure of
funding to the INSTITUTE or lack of sufficient funding of the INSTITUTE for this Contract. If funds become unavailable to the INSTITUTE during the term of the Contract, Section 8.01(c) shall apply. For the sake of clarity, and except as
otherwise provided by this Contract, if this Contract is not funded, then both parties are relieved of all of their obligations under this Contract. The INSTITUTE acknowledges and agrees that the Project is a multiyear project subject to Tex.
Health & Safety Code, Ch. 102, Section 102.257. 
 Section 2.13 Confidentiality of Documents and Information.
In connection with work contemplated for the Project or pursuant to complying with various provisions of this Contract, the RECIPIENT may disclose its confidential business, financial, technical, scientific information and other information to the
INSTITUTE (“Confidential Information”). To assist the INSTITUTE in identifying such information, the RECIPIENT shall mark or designate the information as “confidential,” provided however that the failure to so designate does not
operate as a waiver to protections provided by applicable law or this Contract. The INSTITUTE shall use no less than reasonable care to protect the confidentiality of the Confidential Information to the fullest extent permissible under the Texas
Public Information Act, Texas Government Code, Chapter 552 (the “TPIA”), and, except as otherwise provided in the TPIA to prevent the disclosure of the Confidential Information to third parties for a period of time equal to three
(3) years from the termination of the contract, unless the INSTITUTE and the RECIPIENT agree in writing to extend such time period, provided that this obligation shall not apply to information that: 

 

	 	(a)	 was in the public domain at the time of disclosure or later became part of the public domain through no act or
omission of the INSTITUTE in breach of this Contract; 

  

	 	(b)	 was lawfully disclosed to the INSTITUTE by a third party having the right to disclose it without an obligation
of confidentiality; 

  

	 	(c)	 was already lawfully known to the INSTITUTE without an obligation of confidentiality at the time of disclosure;

  

	 	(d)	 was independently developed by the INSTITUTE without using or referring to the RECIPIENT’s Confidential
Information; or 

  

	 	(e)	 is required by law or regulation to be disclosed. 

  
 6 

 DP160014 

David Arthur 
  

 The INSTITUTE shall hold the Confidential Information in confidence, shall not use such Confidential
Information except as provided by the terms of this Contract, and shall not disclose such Confidential Information to third parties without the prior written approval of the RECIPIENT or as otherwise allowed by the terms of the Contract. Subject in
all respects to the terms of this Contract and the TPIA, the INSTITUTE has the right to use and disclose the Confidential Information reasonably in connection with the exercise of its rights under the Contract. 

In the event that the INSTITUTE is requested or required (by oral questions, interrogatories, requests for information or documents in legal proceedings,
subpoena, civil investigative demand or other similar process by a court of competent jurisdiction or by any administrative, legislative, regulatory or self-regulatory authority or entity) to disclose any Confidential Information, the INSTITUTE
shall provide the RECIPIENT with prompt written notice of any such request or requirement so that the RECIPIENT may seek a protective order or other appropriate remedy. lf, in the absence of a protective order or other remedy, the INSTITUTE is
nonetheless legally compelled to make any such disclosure of Confidential Information to any person, the INSTITUTE may, without liability hereunder, disclose only that portion of the Confidential Information that is legally required to be disclosed,
provided that the INSTITUTE will use reasonable efforts to assist the RECIPIENT, at the RECIPIENT’s expense, in obtaining an appropriate protective order or other reliable assurance that confidential treatment will be accorded the Confidential
Information. To the extent that such Confidential Information does not become part of the public domain by virtue of such disclosure, it shall remain Confidential Information hereunder. 

Article III 

DISBURSEMENT OF GRANT AWARD PROCEEDS 

Section 3.01 Payment of Grant Award Proceeds. The INSTITUTE will advance Grant award proceeds upon request by the RECIPIENT,
consistent with the amounts and schedule as provided in Attachment B. If the RECIPIENT does not request or the Oversight Committee does not authorize advancement of funds for some or the entire Grant award proceeds, disbursement of Grant award
proceeds for services performed and allowable expenses and costs incurred pursuant to the Scope of Work will be on a reimbursement basis. To the extent that completion of certain milestones is associated with a specific tranche of funding as
reflected in the Scope of Work, those milestones shall be accomplished before funding may be provided for next tranche of funding. The INSTITUTE reserves the right to terminate the Contract should a key milestone not be met. 

Section 3.02 Requests for Reimbursement and Quarterly Financial Status Reports. If the RECIPIENT does not receive an advance
disbursement of Grant proceeds, the RECIPIENT’s requests for reimbursement shall be made on INSTITUTE Form 269a (Financial Status Report). If the RECIPIENT has elected to receive an advance disbursement of Grant proceeds, RECIPIENT shall submit
INSTITUTE Form 269a (Financial Status Report) to document all costs and allowable expenses paid with Grant proceeds. The RECIPIENT shall submit the INSTITUTE Form 269a quarterly to the INSTITUTE within 90 days following the end of the quarter
covered by the bill. A final INSTITUTE Form 269a shall be submitted by RECIPIENT not later than 90 days after the Termination Date. An extension of time for submission deadlines specified herein must be expressly authorized in writing by the
INSTITUTE. 

  
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 Section 3.03 Actual Costs and Allowable Expenses. Because the Approved
budget for the Project(s) as set forth in Attachment B is only an estimate, the parties agree that the RECIPIENT’s billings under this Contract will reflect the actual costs and expenses incurred in performing the Project(s), regardless of the
Approved Budget, up to the total contracted amount specified in Section 2.01 “Award of Monies.” The RECIPIENT shall use Grant proceeds only for allowable expenses consistent with state law and agency administrative rules. Allowable
expenses for the Project(s) shall be only as outlined in the Approved Budget and any modifications to same. 
 Section 3.04
Travel Expenses. Reimbursement for travel expenditures shall be in accordance with the Approved Budget. Prior written approval from the INSTITUTE must be obtained before travel that exceeds the amount included in the Approved Budget
commences. Failure to obtain such prior written approval shall result in such excess travel costs constituting expenses that may not be taken into account for the purposes of calculating expenditure of Grant funds under this Contract. 

Section 3.05 Budget Modifications. The total Approved Budget and the assignment of costs may be adjusted based on
implementation of the Scope of Work, spending patterns, and unexpended funds, but only by an amendment to the Approved Budget. In no event shall an amendment to the Approved Budget result in payments in excess of the aggregate amount specified in
Section 2.01 “Award of Monies” or in approved supplemental funding for the Project, if any. The RECIPIENT may make transfers between or among lines within budget categories without prior written approval provided that: 

 

	 	(a)	 The total dollar amount of all changes of any single Line item within budget categories (individually and in
the aggregate) is less than 10% of the total Approved Budget; 

  

	 	(b)	 The transfer will not increase or decrease the total Approved Budget 

 

	 	(c)	 The transfer will not materially change the nature, performance level, or Scope of Work of the Project and

  

	 	(d)	 The RECIPIENT submits a revised copy of the Approved Budget including a narrative justification of the changes
prior to incurring costs in the new category. 

 All other budget changes or transfers require the INSTITUTE’s express prior written
approval. Transfer of funds between categories in the Project’s Approved Budget may be allowed if requests are in writing, fit within the Scope of Work and the total Approved Budget, are beneficial to the achievement of the objectives of the
Project, and appear to be an efficient, effective use of the INSTITUTE’s funds. 
 Section 3.06 Withholding Payment.
The INSTITUTE may withhold Grant award proceeds from RECIPIENT if required Financial Status Reports (Form 269a) are not on file for previous quarters or for the final period, if material program requirements are not met and remain uncured after a
reasonable time period to cure, if the RECIPIENT is in breach of any material term of this Contract, or in accordance with provisions of this Contract as well as applicable state or federal laws, regulations or administrative rules, and the breach
remains uncured after a reasonable time period to cure. The INSTITUTE shall have the right to withhold all or part of any future payments to the RECIPIENT to offset any prior advance payments made to the RECIPIENT for ineligible expenditures that
have not been refunded to the INSTITUTE by the RECIPIENT. 

  
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 Section 3.07 Grant Funds as Supplement to Budget. The RECIPIENT shall use
the Grant proceeds awarded pursuant to this Contract to supplement its overall budget. These funds will in no event supplant existing funds currently available to the RECIPIENT that have been previously budgeted and set aside for the Project. The
RECIPIENT will not bill the INSTITUTE for any costs under this Contract that also have been billed or should have been billed to any other funding source. 

Section 3.08 Buy Texas. The RECIPIENT shall apply good faith efforts to purchase goods and services from suppliers in Texas
to the extent reasonably possible, to achieve a goal of more than 50 percent of such purchases from suppliers in Texas. 

Section 3.09 Historically Underutilized Businesses. The RECIPIENT shall use reasonable efforts to purchase materials,
supplies or services from a Historically Underutilized Business (HUB), The Texas Procurement and Support Services website will assist in finding HUB vendors (http://www.window.state.tx.us/procurement.) The RECIPIENT shall complete a HUB report with
each annual report submitted to the INSTITUTE in accordance with Attachment E. 
 Section 3.10 Limitation on Use of Grant Award
Proceeds to Pay Indirect Costs. The RECIPIENT shall not spend more than five percent of the Grant award proceeds for Indirect Costs. 

Section 3.11 Carry Forward of Unspent Funds and No Cost Extension. RECIPIENT may request to carry forward unspent funds into
the budget for the next year. Carryover of unspent funds must be specifically approved by the INSTITUTE. The INSTITUTE may approve a no cost extension for the Contract for a period not to exceed six (6) months after the Termination Date if
additional time beyond the Termination date is required to ensure adequate completion of the approved project. The Contract must be in good fiscal and programmatic standing. All terms and conditions of the Contract shall continue during any
extension period and if such extension is approved, notwithstanding Section 2.03, all references to the “Termination Date” shall be deemed to mean the date of expiration of such extension period. 

Article IV 
 AUDITS AND
INSPECTIONS 
 Section 4.01 Record Keeping. The RECIPIENT, each Collaborator whose costs are funded in all or in part
by the Grant shall maintain or cause to be maintained books, records, documents and other evidence (electronic or otherwise) pertaining in any way to its performance under and compliance with the terms and conditions of this Contract
(“Records”). The RECIPIENT, each Collaborator and each Contractor shall use, or shall cause the entity which is maintaining such Records to use generally accepted accounting principles in the maintenance of such Records, and shall retain
or require to be retained all of such Records for a period of three (3) years from the Termination Date of the Contract. 

Section 4.02 Audits. Upon request and with reasonable notice, the RECIPIENT, each Collaborator and each Contractor whose
costs are charged to the Project shall allow, or shall cause the entity which is maintaining such items to allow, the INSTITUTE, or auditors working on behalf of the INSTITUTE, including the State Auditor and/or the Comptroller of Public Accounts
for the State of Texas, to review, inspect, audit, copy or abstract all of its Records during regular working hours. Acceptance of funds directly under the Contract or indirectly through a subcontract

  
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under the Contract constitutes acceptance of the authority of the INSTITUTE, or auditors working on behalf of the INSTITUTE, including the State Auditor and/or the Comptroller of Public Accounts,
to conduct an audit or investigation in connection with those funds for a period of three (3) years from the Termination Date of the Contract. 

Notwithstanding the foregoing, any RECIPIENT expending $500,000 or more in federal or state awards during its fiscal year shall obtain either an annual single
audit or a program specific audit. A RECIPIENT expending funds from only one state program may elect to obtain a program specific audit in accordance with Office of Management and Budget (OMB) Circular A-133
or with the State of Texas Uniform Grant Management Standards (UGMS). A single audit is required if funds from more than one federal or state program are spent by the RECIPIENT. The audited time period is the RECIPIENT’s fiscal year, not the
INSTITUTE funding period. 
 Section 4.03 Inspections. In addition to the audit rights specified in Section 4.02
“Audits”, the INSTITUTE shall have the right to conduct periodic onsite inspections within normal working hours and on a day and a time mutually agreed to by the parties, to evaluate the Institute-Funded Activity. The RECIPIENT shall fully
participate and cooperate in any such evaluation efforts. 
 Section 4.04 On-going
Obligation to Submit Requested Information. The RECIPIENT shall, submit other information related to the Grant to the INSTITUTE as may be reasonably requested from
time-to-time by the INSTITUTE, by the Legislature or by any other funding or regulatory bodies covering the RECIPIENT’s activities under this Contract. 

Section 4.05 Duty to Resolve Deficiencies. If an audit and/or inspection under this Article IV finds there are deficiencies
that should be remedied, then the RECIPIENT shall resolve and/or cure such deficiencies within a reasonable time frame specified by the INSTITUTE. Failure to do so shall constitute an Event of Default pursuant to Section 8.03 “Event of
Default.” Upon the RECIPIENT’S request, the parties agree to negotiate in good faith, specific extensions so that the RECIPIENT can cure such deficiencies. 

Section 4.06 Repayment of Grant Proceeds for Improper Use. In no event shall RECIPIENT retain Grant funds that have not been
used by the RECIPIENT for purposes for which the Grant was intended or in violation of the terms of this Contract. The RECIPIENT shall repay any portion of Grant proceeds used by the RECIPIENT for purposes for which the Grant was not intended. as
determined by the final results of an audit conducted pursuant to the provisions of this Contract. Unless otherwise expressly provided for in writing and appended to this Contract, the repayment shall be made to the INSTITUTE no later than
forty-five (45) days upon a written request by the INSTITUTE specifying the amount to be repaid and detailing the basis upon which such request is being made and the amount shall include interest calculated at an amount not to exceed five
percent (5%) annually. The RECIPIENT may request that the INSTITUTE waive the interest, subject in all cases to the INSTITUTE’S sole discretion. 

Section 4.07 Repayment of Grant Proceeds for Relocation Outside of Texas. Unless waived by a vote of the Oversight Committee,
the RECIPIENT shall repay the INSTITUTE all Grant proceeds disbursed to RECIPIENT in the event that RECIPIENT relocates its principal place of business outside of the State during the Contract term or within 3 years after the final payment of the
Grant funds is made by the INSTITUTE. 

  
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 Article V 

ASSURANCES AND CERTIFICATIONS 
 Adoption of
Attachment C. The INSTITUTE and the RECIPIENT hereby adopt the terms of Attachment C in their entirety, incorporate them as if fully set forth herein, and agree to perform and be bound by all such terms. 

Article VI 
 INTELLECTUAL
PROPERTY AND REVENUE SHARING 
 Adoption of Attachment D. The INSTITUTE and the RECIPIENT hereby adopt the terms of Attachment D in their entirety,
incorporate them as if fully set forth herein, and agree to perform and be bound by all such terms. 
 Article VII 

REPORTING 
 Adoption of Attachment E. The
INSTITUTE and the RECIPIENT hereby adopt the terms of Attachment E in their entirety, incorporate them as if fully set forth herein, and agree to perform and be bound by all such terms. 

Article VIII 
 EARLY
TERMINATION AND EVENT OF DEFAULT 
 Section 8.01 Early Termination of Contract. This Contract may be terminated prior
to the Termination Date specified in Section 2.03 “Contract Term” by: 
  

	 	(a)	 Mutual written consent of all parties to this Contract; or 

 

	 	(b)	 The INSTITUTE for an Event of Default (defined in Section 8.03) by the RECIPIENT; or

  

	 	(c)	 The INSTITUTE if allocated funds should become legally unavailable during the Contract period and the INSTITUTE
is unable to obtain additional funds for such purposes; or 

  

	 	(d)	 The RECIPIENT for convenience. 

Section 8.02 Repayment of Grant Proceeds upon Early Termination. The INSTITUTE may require the RECIPIENT to repay some or all
of the disbursed Grant proceeds in the event of early termination under 8.01 (d) above or under Section 8.01(b) above, to the extent such Event of Default resulted from Grant funds being expended in violation of this Contract. To the
extent that the INSTITUTE exercises this option, the INSTITUTE shall provide written notice to the RECIPIENT stating the amount to be repaid, applicable interest calculated not to exceed five percent (5%) annually, and the schedule for such
repayment. The RECIPIENT may request that the INSTITUTE waive the interest, subject in all cases to the INSTITUTE’S sole discretion. In no event shall the RECIPIENT retain Grant funds that have not been used by the RECIPIENT for purposes for
which the Grant was intended. 

  
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 Section 8.03 Event of Default. The following events shall, unless expressly
waived in writing by the INSTITUTE or fully cured by the RECIPIENT pursuant to the provisions herein, constitute an event of default (each, an “Event of Default”): 
  

	 	(a)	 The RECIPIENT’s failure, in any material respect, to conduct the Project in accordance with the approved
Scope of Work and to demonstrate progress towards achieving the milestones set forth in Section 2.02; 

  

	 	(b)	 The RECIPIENT’s failure to conduct the Project within the State of Texas to the extent required under this
Contract unless as otherwise specified in the application, Scope of Work or Approved Budget; 

  

	 	(c)	 The RECIPIENT’s failure to fully comply, in any material respect, with any provision, term, condition,
covenant, representation, certification, or warranty contained in this Contract or any other document incorporated herein by reference; 

  

	 	(d)	 The RECIPIENT’s failure to comply with any applicable federal or state law, administrative rule,
regulation or policy with regard to the conduct of the Project; 

  

	 	(e)	 The RECIPIENT’s material misrepresentation or false covenant, representation, certification, or warranty
made by RECIPIENT herein, in the Grant application, or in any other document furnished by RECIPIENT pursuant to this Contract that was misleading at the time that it was made; or 

 

	 	(f)	 The RECIPIENT ceases its business operations, has a receiver appointed for all or substantially all of its
assets, makes a general assignment for the benefit of creditors, is declared insolvent by a court of competent jurisdiction or becomes the subject, as a debtor, of a proceeding under the federal bankruptcy code, which such proceedings are not
dismissed within ninety (90) days after filing. 

 Section 8.04 Notice Required. If the RECIPIENT
intends to terminate pursuant to Section 8.01(d) “Early Termination of Contract”, it shall provide written notice to the INSTITUTE pursuant to the notice provisions of Section 9.21 “Notices” no later than thirty
(30) days prior to the intended date of termination. 
 If the INSTITUTE intends to terminate for an Event of Default under Section 8.01(b) by the
RECIPIENT, as described in Section 8.03 “Event of Default”, the INSTITUTE shall provide written notice to the RECIPIENT pursuant to Section 9.21 “Notices” and shall include a reasonable description of the Event of
Default and, if applicable, the steps necessary to cure such Event of Default. Upon receiving notice from the INSTITUTE, the RECIPIENT shall have thirty (30) days beginning on the day following the receipt of notice to cure the Event of
Default. Upon request, the INSTITUTE may provide an extension of time to cure the Event of Default(s) beyond the thirty (30) day period specified herein so long as the RECIPIENT is using reasonable efforts to cure and is making reasonable
progress in curing such Event(s) of Default. The extension shall be in writing and appended to the Contract. If the RECIPIENT is unable or fails to timely cure an Event of Default, unless expressly waived in writing by the INSTITUTE, this Contract
shall immediately terminate as of the close of business on the final day of the allotted cure period without any further notice or action by the INSTITUTE required. In addition, and notwithstanding the foregoing, the INSTITUTE and the RECIPIENT
agree that certain events that cannot be cured shall, unless expressly waived in writing by the INSTITUTE, constitute a final Event of Default under this Contract and this Contract shall terminate immediately upon the INSTITUTE giving the RECIPIENT
written “Notice of Event of Default and FINAL TERMINATION.” 

  
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 In the event that the INSTITUTE terminates the Contract under Section 8.01(c) above because allocated
funds become legally unavailable during the Contract period, the INSTITUTE shall immediately provide written notification to the RECIPIENT of such fact pursuant to Section 9.21 “Notices.” The Contract is terminated upon the
RECIPIENT’s receipt of that notification, subject to Section 9.09 “Survival of Terms.” 
 Section 8.05 Duty
to Report Event of Default. The RECIPIENT shall notify the INSTITUTE in writing pursuant to Section 9.21 “Notices”, promptly and in no event more than (30) days after it obtains knowledge of the occurrence of any Event of
Default. The RECIPIENT shall include a statement setting forth reasonable details of each Event of Default and the action which the RECIPIENT proposes to take with respect thereto. 

Section 8.06 Obligations/Liabilities Affected by Early Termination. The RECIPIENT shall not incur new obligations that
otherwise would have been paid for using Grant funds after the receipt of notice as provided by Section 8.04 “Notice Required”, unless expressly permitted by the INSTITUTE in writing, and shall cancel as many outstanding obligations
as possible. The INSTITUTE shall not owe any fee, penalty or other amount for exercising its right to terminate the Contract in accordance with Section 8.01. In no event shall the INSTITUTE be liable for any services performed, or costs or
expenses incurred, after the Termination Date of the Contract. Early termination by either party shall not nullify obligations already incurred, including the RECIPIENT’s revenue sharing obligations as set forth in Attachment D, or the
performance or failure to perform obligations prior to the Termination Date. 
 Section 8.07 Interim Remedies. Upon receipt
by the RECIPIENT of a notice of Event of Default, and at any time thereafter until such Event of Default is cured to the satisfaction of the INSTITUTE or this Contract is terminated, the INSTITUTE may enforce any or all of the following remedies
(such rights and remedies being in addition to and not in lieu of any rights or remedies set forth herein): 
  

	 	(a)	 The INSTITUTE may refrain from disbursing any amount of the Grant funds not previously disbursed: provided,
however, the INSTITUTE may make such a disbursement after the occurrence of an Event of Default without thereby waiving its rights and remedies hereunder; 

  

	 	(b)	 The INSTITUTE may enforce any additional remedies it has in law or equity. 

The rights and remedies herein specified are cumulative and not exclusive of any rights or remedies that the INSTITUTE would otherwise possess. 

Article IX 

MISCELLANEOUS 

Section 9.01 Uniform Grant Management Standards. Unless otherwise provided herein, the RECIPIENT agrees that the Uniform
Grant Management Standards (UGMS), developed by the Governor’s Budget and Planning Office as directed under the Uniform Grant Management Act of 1981, TEX. GOVT. CODE, Ch. 783, apply as additional terms and conditions of this Contract and that
the standards are adopted by reference in their entirety. If there is a conflict between the provisions of this Contract and UGMS, the provisions of this Contract will prevail unless expressly stated otherwise. 

  
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 Section 9.02 Management and Disposition of Equipment. During the term of
this Contract, the RECIPIENT may use Grant funds to purchase Equipment to be used for the authorized purpose of the Project, subject to the conditions set forth below. Unless otherwise provided herein, title to Equipment shall vest in the RECIPIENT
upon termination of the Contract. 
  

	 	(a)	 The INSTITUTE must authorize the acquisition in advance and in writing but an acquisition is deemed authorized
if included in the Approved Budget for the Project; 

  

	 	(b)	 Equipment purchased with Grant funds must stay within the State of Texas; 

 

	 	(c)	 Equipment purchased with Grant funds must be materially deployed to the uses and purposes related to the
Project; 

  

	 	(d)	 In the event the RECIPIENT is indemnified, reimbursed or otherwise compensated for any loss of, destruction of,
or damage to the Equipment purchased using Grant funds, it shall use the proceeds to repair or replace said Equipment; 

  

	 	(e)	 Equipment may be exchanged (trade-in) or sold without the prior written
approval of the INSTITUTE if the proceeds thereof shall be applied to the acquisition cost of replacement Equipment; 

  

	 	(f)	 The RECIPIENT may use its own property management standards and procedures provided that it observes the terms
of UGMS, A-102, in all material respects; 

  

	 	(g)	 The title or ownership of the Equipment shall not be encumbered for purposes other than the Project nor or
transferred other than to a permitted assignee of this Contract, without the prior written approval of the INSTITUTE; 

  

	 	(h)	 If the original or replacement Equipment is no longer needed for the originally authorized purpose or for other
activities supported by the INSTITUTE, the RECIPIENT shall request disposition instructions from the INSTITUTE and, upon receipt, shall fully comply therewith; and 

 

	 	(i)	 If this Contract is terminated early pursuant to Section 8.01(b), (d), (e), or (f) above, the
INSTITUTE shall determine the final disposition of Equipment purchased with Grant award money. 

 Section 9.03
Supplies and Other Expendable Property. The RECIPIENT shall classify as materials, supplies and other expendable property the allowable unit acquisition cost of such property under $5,000 necessary to carry out the Project. Title to supplies
and other expendable property shall vest in the RECIPIENT upon acquisition. 

  
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 Section 9.04 Acknowledgement of Grant Funding and Publicity. The parties
agree to the following terms and conditions regarding acknowledging Grant funding and publicity: 
  

	 	(a)	 The parties agree to fully cooperate and coordinate with each other in connection with all press releases and
publications regarding the award of the Grant, the execution of the Contract and the Institute-Funded Activities. 

  

	 	(b)	 The RECIPIENT shall notify the INSTITUTE’s Information Specialist or similar personnel at least three
business days prior to any press releases, advertising, publicity, use of CPRIT logo, or other promotional activities that pertain to the Project or any Institute-Funded Activity. In the event that the INSTITUTE wishes to participate in a joint
press release, the RECIPIENT shall coordinate and cooperate with the INSTITUTE’s Information Specialist or similar personnel to develop a mutually agreeable joint press release. 

 

	 	(c)	 Consistent with the goal of encouraging development of scientific breakthroughs and dissemination of knowledge,
publication or presentation of scholarly materials is expected and encouraged. The RECIPIENT may publish in scholarly journals or other peer-reviewed journals (including graduate theses and dissertations) and may make presentations at scientific
meetings without prior notice to or consent of the INSTITUTE, except as may otherwise be set forth in this Contract. The RECIPIENT shall promptly notify the INSTITUTE when any scholarly presentations or publications have been accepted for public
disclosure and shall provide the INSTITUTE with final copies of all such accepted presentations and publications. The RECIPIENT shall acknowledge receipt of the INSTITUTE funding in all publications, presentations, press releases and other materials
regarding the work associated with the Institute-Funded Activities. The RECIPIENT shall promptly submit an electronic version of all published manuscripts to PubMed Central in accordance with Section 9.05 “Public Access to Research
Results.” 

  

	 	(d)	 When grant funds are used to prepare print or visual materials for educational or promotional purposes for the
general public (e.g., patients), and excluding presentations and publications discussed above in subsection (c), the RECIPIENT shall provide a copy of such materials to the INSTITUTE at least ten (10) days prior to printing. The RECIPIENT shall
also acknowledge receipt of the INSTITUTE funding on all such materials including, but not limited to, brochures, pamphlets, booklets, training fliers, project websites, videos and DVDs, manuals and reports, as well as on the labels and cases for
audiovisual or videotape/DVD presentations. 

 Section 9.05 Public Access to Results of Institute-Funded
Activities. The RECIPIENT shall submit an electronic version of its final peer-reviewed journal manuscripts that arise from Grant funds to the digital archive National Library of Medicine’s PubMed Central upon acceptance for publication.
These papers must be accessible to the public on PubMed no later than 12 months after publication. This policy is subject to the terms of Attachment D and does not supplant applicable copyright law. For clarity, this policy is not intended to
require the RECIPIENT to make a disclosure at a time or in any manner that would cause the RECIPIENT to abandon, waive or disclaim any intellectual property rights that it is obligated to protect pursuant to the terms of Attachment D. 

  
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 Section 9.06 Work to be Conducted in State. The RECIPIENT agrees that it
will use reasonable efforts to direct that any new or expanded preclinical testing, clinical trials, commercialization or manufacturing that is part of or relating to any Institute-Funded Activities take place in the State of Texas, including the
establishment of facilities to meet this purpose. If the RECIPIENT decides not to conduct such work in the State of Texas, the RECIPIENT shall provide a prior written explanation to the INSTITUTE detailing the RECIPIENT’s reasons for conducting
the work outside of the State of Texas and the RECIPIENT’s efforts made to conduct the work in the State of Texas. 

Section 9.07 Duty to Notify. During the term of this Contract and for a period of five (5) years thereafter, the
RECIPIENT is under a continuing obligation to notify the INSTITUTE’s Chief Executive Officer at the same time it is required to notify any Federal or State entity of any unexpected adverse event or condition that materially impacts the
performance or general public perception of the conduct or results of the Project and Institute-Funded Activities, including any impact to the Scope of Work included in the Contract and events or results that have a serious adverse impact on human
health, safety or welfare. By way of example only, if clinical testing of the results of Institute-Funded Activities reveal an unexpected risk of developing serious health conditions or death, then the RECIPIENT shall, at the same time it notifies
any Federal or State entity, promptly so notify the INSTITUTE’s Chief Executive Officer even if such results are not available until after the term of this Contract. Notice required under this section shall be made as promptly as reasonably
possible and shall follow the procedures set forth in Section 9.21 “Notices.” 
 Section 9.08 Severability.
If any provision of this Contract is construed to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or enforceability shall not affect any other provisions hereof. The invalid, illegal or unenforceable provision shall
be deemed stricken and deleted to the same extent and effect as if never incorporated herein. All other provisions shall continue as provided in this Contract. 

Section 9.09 Survival of Terms. Termination or expiration of this Contract for any reason will not release either party from
any liabilities or obligations set forth in this Contract that: (1) the Parties have expressly agreed shall survive any such termination or expiration: or (2) remain to be performed or by their nature would be intended to be applicable
following any such termination or expiration. Such surviving terms include, but are not limited to, Sections 2.13, 4.01, 4.02, 4.05, 4.06, 8.02, 8.06, 9.04, 9.05, 9.06, 9.07, 9.09, 9.14, 9.15, 9.16, 9.17, 9.18, and Attachment D. 

Section 9.10 Binding Effect and Assignment or Modification. This Contract and all terms, provisions and obligations set forth
herein shall be binding upon and shall inure to the benefit of the parties and their successors and permitted assigns, including all other state agencies and any other agencies, departments, divisions, governmental entities, public corporations or
other entities which shall be successors to either of the parties or which shall succeed to or become obligated to perform or become bound by any of the covenants, agreements or obligations hereunder of either of the parties hereto . Upon a
permitted assignment of this Contract by RECIPIENT, all references to the RECIPIENT” herein shall be deemed to refer to such permitted assignee. 

Section 9.11 No Waiver of Contract Terms. Neither the failure by the RECIPIENT or the INSTITUTE, in any one or more
instances, to insist upon the complete and total observance or performance of any term or provision hereof, nor the failure of the RECIPIENT or the INSTITUTE to exercise any right, privilege or remedy conferred hereunder or afforded by law, shall be
construed as waiving any breach of such term or provision or the right to exercise such right, privilege or remedy thereafter. In addition, no delay on the part of either the RECIPIENT or the INSTITUTE, in exercising any right or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy preclude other or further exercise thereof or the exercise of any other right or remedy. 

  
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 Section 9.12 No Waiver of Sovereign Immunity. No provision of this Contract
is in any way intended to constitute a waiver by the INSTITUTE, the RECIPIENT (if applicable), or the State of Texas of any immunities from suit or from liability that the INSTITUTE, the RECIPIENT, or the State of Texas may have by operation of law.

 Section 9.13 Force Majeure. Neither the INSTITUTE nor the RECIPIENT will be liable for any failure or delay in
performing its obligations under the Contract if such failure or delay is due to any cause beyond the reasonable control of such party, including, but not limited to, unusually severe weather, strikes, natural disasters, fire, civil disturbance,
epidemic, war, court order or acts of God. The existence of such causes of delay or failure will extend the period of performance in the exercise of reasonable diligence until after the causes of delay or failure have been removed. Each party must
inform the other in accordance with Section 9.21 “Notices” within five (5) business days, or as soon as it is practical, of the existence of a force majeure event or otherwise waive this right as a defense. 

Section 9.14 Disclaimer of Damages. IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, SPECIAL,
PUNITIVE, EXEMPLARY, INCIDENTAL OR CONSEQUENTIAL DAMAGES. THIS LIMITATION WILL APPLY REGARDLESS OF WHETHER OR NOT THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 

Section 9.15 Indemnification and Hold Harmless. Except as provided herein, the RECIPIENT agrees to fully indemnify and hold
the INSTITUTE and the State of Texas harmless from and against any and all claims, demands, costs, expenses, liabilities, causes of action and damages of every kind and character (including reasonable attorneys fees) which may be asserted by any
third party in any way related or incident to, arising out of, or in connection with (1) the RECIPIENT’s negligent, intentional or wrongful performance or failure to perform under this Contract, (2) the RECIPIENT’s receipt or use
of Grant funds, or (3) any negligent, intentional or wrongful act or omission committed by the RECIPIENT as part of an Institute-Funded Activity or during the Project . In addition, the RECIPIENT agrees to fully indemnify and hold the INSTITUTE
and the State of Texas harmless from and against any and all costs and expenses of every kind and character (including reasonable attorneys fees, costs of court and expert fees) that are incurred by the INSTITUTE or the State of Texas arising out of
or related to a third party claim of the type specified in the preceding sentence. Notwithstanding the preceding, such indemnification shall not apply in the event of the sole or gross negligence of the INSTITUTE. If the RECIPIENT is a State of
Texas agency or institution of higher education, then this Section 9.15 is subject to the extent authorized by the Texas Constitution and the laws of the State of Texas. 

The RECIPIENT acknowledges and agrees that this indemnification shall apply to, but is not limited to, employment matters, taxes, personal injury, and
negligence. 
 It is understood and agreed that it is not the intent of the parties to expand or increase the liability of the State of Texas under this
Article. This provision is intended to prevent the RECIPIENT, the INSTITUTE and the State of Texas from attempting or appearing to assume liability it does not have the statutory or legal power to assume. 

  
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 Section 9.16 Alternative Dispute Resolution. If applicable, the dispute
resolution process provided for in TEX. GOVT. CODE, Ch. 2260 shall be used, as further described herein, to resolve any claim for breach of contract made against the INSTITUTE (excluding any uncured Event of Default) . The submission, processing and
resolution of a party’s claim are governed by the published rules adopted by the Attorney General pursuant to TEX. GOVT. CODE, Ch. 2260, as currently effective, hereafter enacted or subsequently amended. 

Section 9.17 Applicable Law and Venue. This Contract shall be construed and all disputes shall be considered in accordance
with the laws of the State of Texas, without regard to its principles governing the conflict of laws. Provided that the RECIPIENT first complies with procedures set forth in Section 9.16 “Alternative Dispute Resolution,” exclusive
venue and jurisdiction for the resolution of claims arising from or related to this Contract shall be in the federal and state courts in Travis County, Texas. 

Section 9.18 Attorneys’ Fees. In the event of any litigation, appeal or other legal action to enforce any
provision of the Contract, the RECIPIENT shall pay all expenses of such action, including attorneys’ fees and costs, if the INSTITUTE is the prevailing party. If the RECIPIENT is a State of Texas agency or institution of higher education, then
this Section 9.18 is subject to the extent authorized by the Texas Constitution and the laws of the State of Texas. 

Section 9.19 Counterparts. This Contract may be executed in any number of counterparts, each of which when so executed and
delivered shall be an original, but such counterparts shall together constitute one and the same instrument. 
 Section 9.20
Construction of Terms. The headings used in this Contract are inserted only as a matter of convenience and for reference and shall not affect the construction or interpretation of this Contract . Where context so indicates, a word in the
singular form shall include the plural, a word in the masculine form the feminine, and vice-versa. The word “including” and similar constructions (such as “includes’, “included”, “for example”, “such
as”, and “e.g.”) shall mean “including, without limitation” throughout this Contract. The words “and” and “or” are not intended to convey exclusivity or nonexclusivity except where expressly indicated or
where the context so indicates in order to give effect to the intent of the parties. 
 Section 9.21 Notices. All notices,
requests, demands and other communications will be in writing and will be deemed given on the date received as demonstrated by (i) a courier’s receipt or registered or certified mail return receipt signed by the party to whom such notice
was sent, provided that such notice was sent to the Authorized Signing Official (ASO) at the address provided in the CPRIT Grants Management System, (ii) a fax confirmation page showing that such fax was successfully transmitted to the fax
number provided in the CPRIT Grants Management System, or (iii) via correspondence in the CPRIT Grants Management System. 

  
 18 

 

 
 DP160014/ Contract Attachment A 

Abstract and Significance 
 Ewing’s sarcoma is a rare
malignancy of children, adolescents and young adults that is characterized by an aberrant overexpression of the transcription factor EWS/FLI, necessary and sufficient for oncogenic transformation. Deep gene sequencing has shown no other consistent
mutation. Ewing’s sarcoma is a systemic disease that is fatal in about 50% of diagnosed cases and is curable in others with prolonged chemotherapies that have various long-term morbidities. Similarly, castration resistant prostate cancers are
also an important public health priority and an area of unmet medical need and is a virtual certainty in all patients diagnosed with advanced prostate cancers. Salarius Pharmaceuticals has developed a novel approach to develop targeted therapy that
is applicable to these situations allowing the potential for—BREAKTHROUGH DESIGNATION IN AN ORPHAN DISEASE and favorable economics (Ewing’s’s) and WIDE PATIENT IMPACT with highly favorable economics in prostate. 

The epigenome consists of myriad covalent modifications of chromatin. A major class of epigenetic modifications involves histones, which can undergo
methylation, acetylation, phosphorylation, ubiquitination and sumoylation. Lysine-specific histone demethylase 1 (LSD I), the first identified histone demethylase, catalyzes the removal of mono- and dimethylated lysines. LSDI is overexpressed in
cancer tissues compared to normal cells (prostate, breast, small cell lung cancer, bladder, neuroblastoma, GI cancers as well as in sarcomas like chondrosarcoma, osteosarcoma and Ewing’s sarcoma) and high levels of LSD1 correlate with tumor
relapse after therapy. LSD1 serves as a key epigenetic regulator in Ewing’s sarcoma. Our published work clearly demonstrates that LSDI is REQUIRED for EWS/FLI mediated oncogenesis and inhibition of LSD1 affords a unique opportunity to target
the immediate molecular machinery the transcription factor (EWS/FLI) relies on. Similarly our work also shows that LSD1 expression is upregulated in castration sensitive and castration resistant prostate cancers and targeting LSD1 can offer a unique
way to control this disease when androgen ablation strategies fail. 
 Salarius Pharmaceuticals has developed first-in-class selective and reversible LSD1 inhibitor, with low nanomolar activity against LSD1 but no Monoamine Oxidase (MAO) activity. These inhibitors were developed utilizing in-silica design and fragment based screening approaches, and validated using enzymatic and cellular assays. These inhibitors are quite distinct from competitive inhibitors and are designed to bind and Interrupt the
ATP binding site for the substrate on LSD1. This is in contrast to irreversible inhibitors like tranylcypromine analogs that are very myelosuppressive and covalently bind to the cofactor Flavin Adenine Dinucleotide (FAD) and are likely unable to
disrupt critical LSD1 functions in many tumor types. 
 The clinical candidate (SP-2577) displays good
pharmaceutical properties and is active in vitro and in vivo in Ewing’s Sarcoma and prostate cancer models. It displays complete cures in Ewing’s sarcoma xenografts and is orally bioavailable. Salarius has advanced the program through Good
Manufacturing Practice (GMP) production of SP-2577 mesylate active pharmaceutical ingredient (API), spray-dried, enteric coated drug product, and pilot toxicology. At the time of writing this application,
Salarius is close to finalizing the Good Laboratory Practice (GLP) toxicology protocol and within months of the Investigational New Drug (IND) filing. The CPRIT application is requesting support for two Phase 1/2 trials in Ewing’s sarcoma as
well as a Phase1/2 trial in advanced prostate cancers. In addition, the application is requesting modest support for pursuing a second-generation program for LSD1 inhibition. 

  
 [ *** ] =
Confidential material redacted and filed separately with the Commission. 
  

 There are two main goals for the requested support: 

 

	1.	 [ *** ] 

  

	2.	 [ *** ] 

Salarius Pharmaceuticals, in partnership with CPRIT, has the opportunity to have a significant and immediate impact to demonstrate clinical proof-of concept in an Orphan Indication (Ewing’s sarcoma) and a wider public health problem (castration resistant prostate cancer) and develop SP-2577 as a highly
successful product (medically and commercially). This may allow for both a dramatic impact on a devastating childhood and adolescent disease, as well as a broad impact and wide ranging commercial success in a debilitating later in life cancer. 

  

 Layperson’s Summary 

Salarius specializes in developing novel drugs for rare pediatric cancers and other cancers by focusing on treatments that interrupt the final steps of the
signaling cascade. 
 Our first drug, SP-2577, targets the Lysine Specific Histone Demethylase 1 pathway (LSD1), a
cellular control protein that’s overactive in a range of cancers. Here Salarius has developed a first in class highly specific LSD1 inhibitor that we will test in Ewing’s Sarcoma and other undifferentiated sarcomas, in addition • to
late stage prostate cancer. We plan to file an IND in early 2016 and initiate phase 1 clinical studies in Ewing’s and prostate cancer in June 2016. 

Ewing’s is a rare devastating pediatric, adolescent and young adult bone cancer with no approved treatment. Roughly 50% of Ewing’s patients fail to
respond to chemotherapy, radiation and surgical treatment and face 70%-80% mortality. If successful, a treatment for Ewing’s Sarcoma represents hope for thousands of patients and their families where
current treatments are often woefully inadequate. Successful phase 1/2 studies could support an accelerated regulatory process with a Ewing’s orphan drug indication approved by Q3’19. 

Salarius plans to relocate to Texas and set up a collaborative research effort to discover new drugs in its quest to become an integrated pharmaceutical
company. Our business model is based on tight integration with academia and creating win-win environments between Salarius and academic cancer centers. 

  
 [ *** ] =
Confidential material redacted and filed separately with the Commission. 
  

 Timelines: EDITED project_timelinc.pdf 

 

					
	 Goal 1:

ADDED
	  	Year 1 June 1st 2016-May 31st 2017 [***]	  	
			
	 Objective 1:

ADDED
	  	[***]	  	
			
	 Objective 2:

ADDED
	  	[***]	  	
			
	 Objective 3:

ADDED
	  	[***]	  	
			
	 Objective 4:

ADDED
	  	[***]	  	
			
	 Objective 5:

ADDED
	  	[***]	  	
			
	 Objective 6:

ADDED
	  	[***]	  	
			
	 Objective 7:

ADDED
	  	[***]	  	
			
	 Objective 8:

ADDED
	  	[***]	  	
			
	 Objective 9:

ADDED
	  	[***]	  	
			
	 Objective 10:

ADDED
	  	[***]	  	
			
	 Objective 11:

ADDED
	  	[***]	  	
			
	 Goal 2:

ADDED
	  	Year 2 June 1st 2017-May 31st 2018 [***]	  	
			
	 Objective 1:

ADDED
	  	[***]	  	
			
	 Objective 2:

ADDED
	  	[***]	  	
			
	 Objective 3:

ADDED
	  	[***]	  	

  
 22 

  
 [ *** ] =
Confidential material redacted and filed separately with the Commission. 
  

					
			
	 Objective 4:

ADDED
	  	[***]	  	
			
	 Objective 5:

ADDED
	  	[***]	  	
			
	 Objective 6:

ADDED
	  	[***]	  	
			
	 Goal 3:

ADDED
	  	Year 3 June 1st 2018-May 31st 2019 [***]	  	
			
	 Objective 1:

ADDED
	  	[***]	  	
			
	 Objective 2:

ADDED
	  	[***]	  	
			
	 Objective 3:

ADDED
	  	[***]	  	
			
	 Objective 4:

ADDED
	  	[***]	  	

  
 23 

  
 [ *** ] =
Confidential material redacted and filed separately with the Commission. 
  

 

 
 Grant ID: DP160014 

Principal Investigator/Program Director: David Arthur 

ATTACHMENT B—Detailed Budget Form 
  

																	
	 Budget
	  	Budget Year 1	 	  	I Budget Year 2	 	  	Budget Year 3	 	  	Total Budget	 
	 a. Personnel
	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 
	 b. Fringe Benefits
	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 
	 c. Travel
	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 
	 d. Equipment
	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 
	 e. Supplies
	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 
	 f. Contractual
	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 
	 g. Other
	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 
	 h. Total Direct Charges
	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 
	 i. Indirect Charges (doesn’t apply to prevention grants awarded prior to 01 Sep
2016)
	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 
	 j. Total Charges
	  	 	[ *** ]	 	  	 	[ *** ]	 	  	 	[ *** ]	 	  	$	18,668,717.00	 

  

	*	 Note: 

For purposes of contract initiation only: 

			
	Federal ID#:	  	
	Vendor ID#:	  	[ *** ]
	ASO Contact:	  	Arthur, David
	Address:	  	[ *** ]
	Address 2:	  	
	City, State, ZIP	  	[ *** ]
	Phone:	  	[ *** ]
	Fax:	  	[ *** ]
	Email:	  	

  

 

 
 ATTACHMENT C 

ASSURANCES AND CERTIFICATIONS 
 This
Attachment C is hereby incorporated into and made a part of that certain CANCER RESEARCH GRANT CONTRACT (“Contract”) by and between the Cancer Prevention and Research Institute of Texas (“CPRIT”
or the “INSTITUTE”) and the RECIPIENT. A capitalized term used in this Attachment shall have the meaning given to term in the Contract or in the Attachments to the Contract, unless otherwise defined herein. In the event of a
conflict between the provisions of this Attachment and the provisions of the Contract, this Attachment shall control. 
 By signing this Contract.
RECIPIENT certifies compliance with the following assurances and certifications required by the INSTITUTE (listed below). RECIPIENT further acknowledges that its obligations pursuant to the following assurances and certifications are ongoing. 

 Section C1.01 Demonstration of Matching Funds. Pursuant to TEX. HEALTH & SAFETY CODE § 102.255(d) and T.A.C. 25 § 703.11,
RECIPIENT has an amount of funds equal to one-half of the amount of the Grant to be disbursed each fiscal year of the Contract term dedicated to the research that is the subject of the Grant as demonstrated by
the form incorporated herein to Attachment C. The RECIPIENT shall update the matching funds certification and verficiation annually for each fiscal year that Grant funds are disbursed. 

Section C1.02 Payment of Taxes. RECIPIENT’s payment of franchise taxes is current or, if the RECIPIENT is exempt from payment of franchise taxes,
that it is not subject to the State of Texas franchise tax. If franchise tax payments become delinquent during the Contract term, payments under this Contract will be withheld until the RECIPIENT’s delinquent franchise tax is paid in full. The
RECIPIENT also acknowledges that it is not otherwise exempt from state sales or occupancy tax as a result of this Contract. 
 Section C1.03 Compliance
with Confidentiality Guidelines Relating to Personal and Medical Information. RECIPIENT complies with all applicable laws, rules and regulations relating to personal and medical information. Without in any way limiting the foregoing, RECIPIENT
maintains and enforces appropriate facility and information technology access rules and procedures to protect against inappropriate disclosure of patient records and all other documents deemed confidential by law, which are maintained in connection
with the Project and Institute-Funded Activities, including provisions that comply with the requirements of the INSTITUTE’s rules, 25 T.A.C. Section 703.14. Upon request from the INSTITUTE, RECIPIENT will timely furnish a copy of the
RECIPIENT’s facility and information technology access rules and procedures, as well as any other applicable confidentiality guidelines. 
 If
RECIPIENT, including any Collaborators or Contractors, works directly with patients or otherwise has access to or maintains patient personal and medical information, RECIPIENT specifically addresses Health Insurance Portability and Accountability
Act of 1996 regulations concerning confidentiality of personal and medical information. Any disclosure of confidential information in any way related to the Project (including information that may be required by reports and inspections) must be in
accordance with all applicable laws. 

  
 Page C1 

 Section C1.04 Conduct of Research or Service Provided. RECIPIENT understands that the Project must be
conducted with full consideration for the ethical and medical implications of the research performed or services delivered and comply with all federal and state laws regarding the conduct of the research or service. 

Section C1.05 Regulatory Certificates, Licenses and Permits. All personnel, facilities and equipment involved or to be involved in the Project are
certified, licensed, permitted, registered or approved by the appropriate regulating agency, where applicable. Any revocation, surrender, expiration, non-renewal, inactivation or suspension of any such
certification, license, permit, registration or approval shall constitute grounds for Contract termination. 
 Section C1.06 Assurances and
Certifications in Accordance with the NIH Grants Policy Statement: 
 (a) Civil Rights. Compliance with Title VI of the Civil
Rights Act of 1964. 
 (b) Handicapped Individuals. Compliance with Section 504 of the Rehabilitation Act of 1973 as amended.

 (c) Sex Discrimination. Compliance with Section 901 of Title IX of the Education Amendments of 1972 as amended. 

(d) Age Discrimination. Compliance with the Age Discrimination Act of 1975, as amended. 

(e) Patents, Licenses and Inventions. Compliance with the Standard Patent Rights clauses as specified in 37 CFR, Part 401 or 35 U.S.C.
203, if appropriate and applicable, in a manner that adequately protects the INSTITUTE’S rights in the Project Results. 
 (f) Human
Subjects. Compliance with the requirements of federal policy concerning the safeguarding of the rights and welfare of human subjects who are involved in activities supported by federal funds. Before any funding may be released for any Project
involving human subjects, RECIPIENT must receive approval from RECIPIENT’s Institutional Review Board (IRB). Upon request, a copy of RECIPIENT’s IRB approval must be provided to the INSTITUTE. 

(g) Human Biological/Anatomical Material. Compliance with the recommendations of the NIH Office of Human Subject Research Medical
Administrative Series (MAS) #MO1-2 entitled “Procurement and Use of Human Biological Materials for Research,” and any other federal or state requirements. 

(h) Use of Animals. Compliance with applicable portions of the Animal Welfare Act (PL 89-544 as
amended) and appropriate Public Health Service Policy on Humane Care and Use of Laboratory Animals regulations. Before any funding may be released for any Project involving animal subjects, RECIPIENT must receive approval from RECIPIENT’s
Institutional Animal Care and Use Committee (IACUC). Upon request, a copy of RECIPIENT’s IACUC approval must be provided to the INSTITUTE. 

(i) Debarment and Suspension. RECIPIENT certifies that neither it nor the Principal Investigator/Project Director or any other Recipient
Personnel or personnel of any Collaborator or Contractor assigned to work on the Project are debarred, suspended, proposed for debarment, declared ineligible or otherwise excluded from participation in the Project by any federal or state department
or agency. 

  
 Page C2 

 (j) Non-Delinquency on Federal or State Debt.
RECIPIENT certifies that neither it, nor any person to be paid from funds under this Contract, is delinquent in repaying any Federal debt as defined by OMB Circular A-129 or any debt to the State of Texas.

 (k) Eligibility to Receive Payments on State Contracts. RECIPIENT certifies that it and the Principal Investigator/Project Director
are not ineligible to receive the Grant award under this Contract pursuant to Tex. Fam. Code Ann. Section 231.006 and acknowledges that this Contract may be terminated and payment may be withheld if this certification is inaccurate. 

(l) Drug-Free Workplace. Compliance with the Drug-Free Workplace Act of 1988 (45 CFR 82). 

(m) Misconduct in Science. Compliance with 42 CFR Part 50, Subpart A, and Final Rule as published at 54 CFR 32446, August 8, 1989.

 (n) Objectivity of Research/Conflict of Interest. Compliance with the NIH requirement to maintain a written standard of conduct and
comply with 42 CFR Part 50, Subpart F, Responsibility of Applicants for Promoting Objectivity in Research. RECIPIENT must notify the INSTITUTE of any conflicting financial interests and assure that the interest has been managed, reduced or
eliminated. 
 (o) Trafficking in Persons. Compliance with the NIH regulations on trafficking in persons as published at http://grants.nih.gov/grants/guide/notice-files/NOT-OD-08-055.html. 

(p) Criminal Misconduct. RECIPIENT shall promptly report issues to the INSTITUTE involving potential civil or criminal fraud related in
any way to the Project, the Institute-Funded Activity or this Contract, such as false claims or misappropriation of federal or state funds. 
 Section
C1.07 Tobacco Free Workplace Policy. Pursuant to T.A.C. 25 § 703.20, RECIPIENT certifies that its board of directors, governing body, or similar has adopted and enforces a Tobacco-Free Workplace Policy that meets or exceeds all of the
following minimum standards: 
 (a) Prohibits the use of all forms of tobacco products, including but not limited to cigarettes, cigars,
pipes, water pipes (hookah), bidis, kreteks, electronic cigarettes, smokeless tobacco, snuff and chewing tobacco; 
 (b) Designates the
property to which the policy applies (“designated area”). The designated area(s) must at least comprise all buildings and structures where the CPRIT project is taking place, as well as the sidewalks, parking lots, walkways, and attached
parking structures immediately adjacent but only to the extent the CPRIT Grant Recipient owns, leases as the sole tenant, or controls the building, sidewalks, parking lots and/or parking structures. In the event that the RECIPIENT does not own,
lease as the sole tenant, or control the building, sidewalks, parking lots and/or parking structures, then the designated area(s) must include all areas under the RECIPIENT’s control; 

(c) Applies to all employees and visitors in the designated area(s); and 

(d) Provides for or refers employees to tobacco use cessation services. 

  
 Page C3 

 If RECIPIENT cannot meet the minimum standards as set forth in this section, RECIPIENT certifies that it has
received an approved waiver from the INSTITUTE’s CEO for the current fiscal year. 
 Section C1.08 No Donations to the Institute or a Foundation
Established to Support Institute. RECIPIENT certifies that as of June 14, 2013, it has not made and will not make a contribution, during the term of the Contract, to the INSTITUTE or to any foundation established specifically to support the
INSTITUTE. 

  
 Page C4 

 

 
 DP160014—Product Development Research Contract Attachment C Part 2 Matching Compliance Certification
(MCC)—Initial 
 For Public or Private Institutions of Higher Education ONLY (all other entities proceed to the table below): The grant
recipient may credit toward the matching funds requirement the dollar equivalent to the difference between the institution’s federally approved indirect cost rate for research projects and CPRIT’s five percent (5%) indirect cost allowance.
If a Public or Private Institution of Higher Education intends to fulfill its match requirement using expended funds only (no federally approved indirect cost rate credit), then choose “No” on the first question and proceed to the table
below. 
 If the grant recipient’s Federally Approved Indirect Cost Rate is greater than or equal to 55% (the 50% matching funds requirement and the 5%
CPRIT Indirect Cost Rate), then no further action is required once the appropriate information has been entered in lines “a” through “d” below. 

If the combined Federally Approved Indirect Cost Rate and the CPRIT Indirect Cost Rate calculated for the Project is less than 55%, then the grant recipient
must use the table below to demonstrate that it has encumbered funds available and not yet expended that are dedicated to the CPRIT-funded project for the portion of the match requirement not met by the Federally Approved Indirect Cost Rate credit.

 Public or Private Institution of Higher Education: 

(Choose ‘No’ if You Are Using Encumbered
Funds)                                        
     No 

  
 [ *** ] =
Confidential material redacted and filed separately with the Commission. 
  

																																									
	 	 	 	 	 	Award
Year #1	 	 	 	 	 	 	 	 	Award
Year #2	 	 	 	 	 	 	 	 	Award
Year #3	 	 	 	 	 	Current
Year	 
	 	 	Total
Award
Amount
for
Award
Year #1	 	 	Remaining
Dollar
Amount to
Pallid
Match
Requirement	 	 	Actual
“Non
CPRIT”
Funds
Expended
**	 	 	Total
Award
Amount
for
Award
Year #2	 	 	Remaining
Dollar
Amount to
Fulfill
Match
Requirement	 	 	Actual
“Nun
CPRIT,”
Funds
Expended
**	 	 	Total
Award
Amount
for
Award
Year
#3	 	 	Remaining
Dollar
Amount
to Fulfill
Match
Requirement	 	 	Actual
“Non
CPRIT”
Funds
Expended
**	 	 	Match
Credit/
Deficiency
(if any)	 
	 Public or Private Institutions of Higher Education
	 	 	[ 	*** ] 	 	 	[ 	*** ] 	 	 	[ 	*** ] 	 	 	[ 	*** ] 	 	 	[ 	*** ] 	 	 	[ 	*** ] 	 	 	[ 	*** ] 	 	 	[ 	*** ] 	 	 	[ 	*** ] 	 	 	[ 	*** ] 
	 All Other Entities
	 	 	[ 	*** ] 	 	 	[ 	*** ] 	 	 	[ 	*** ] 	 	 	[ 	*** ] 	 	 	[ 	*** ] 	 	 	[ 	*** ] 	 	 	[ 	*** ] 	 	 	[ 	*** ] 	 	 	[ 	*** ] 	 	 	[ 	*** ] 
	 Total Non-State Funds Leveraged as a Match for
Award
	 				 				 	 	[ 	*** ] 	 				 				 	 	[ 	*** ] 	 				 				 	 	[ 	*** ] 	 			

 The information above is the entity/Institution’s demonstration of encumbered available funds pursuant to its
certification in Attachment C. The information in the certification shall be updated annually. By approving this form the grant recipient certifies that it has the matching funds available as reflected on the form. 

Matching Fund Deficiencies (DEF) and Credits (CR) 
 The amount
that appears in the “Remaining Dollar Amount to Fulfill Match Requirement” column is calculated to meet the matching funds requirement (50%). This is the amount that is certified at the beginning of the grant. The grantee will complete the
third column at the end of the project year. It is possible for the grant recipient to actually expend more or less than the amount that is certified. In that event, the surplus/deficiency may be carried forward as a credit (CR) or deficiency (DEF).

 If the grant recipient fails to expend its matching funds requirement for the year, the deficiency may be carried forward and added to the matching fund
requirement for the next project year so long as: 1.) the deficiency is equal to or less than 20% of the total matching funds required for the same period; and 2.) the grant recipient has not previously had a matching funds deficiency. For a second
deficiency of any amount, or for a deficiency greater than 20% of the total matching funds required for the same period, distribution of grant funds will be suspended. Depending upon the amount of the matching fund deficiency, CPRIT may declare the
grant contract in default. 
 If the grant recipient actually expends more than its matching funds requirement for the year, the surplus may be carried
forward to reduce the matching fund requirement for the next project year(s). 
  

	*	 Appropriate sources for encumbered funds dedicated to the CPRIT project may include but are not necessarily
limited to: (1) Federal funds (including American Recovery and Reinvestment Act of 2009 funds, and the fair market value of drug development support provided to the 

  

 
recipient by the National Cancer Institute (NCI) or other similar programs); (2) State of Texas funds (Non-CPRIT); (3) Other States’ funds;

 (4) Non-governmental funds (including private funds, foundation grants, gifts and donations);
(5) Unrecovered indirect costs not to exceed 10 percent of the grant award amount, subject to the following conditions: (A) These costs are not otherwise charged against the grant as the five percent indirect funds (B) The
Institution or recipient must have a documented federal indirect cost rate or an indirect cost rate certified by an independent accounting firm; and (C) Is not allowed if the grant recipient is a public or private institution of higher
education; and (6) Funds contributed by a subcontractor or subawardee and spent on the Grant Project (use of a subcontractor’s/subawardee’s federal indirect cost rate does not apply), so long as the subcontractor’s or
subawardee’s portion of otherwise allowable Matching Funds for a Project Year may not exceed the percentage of the total Grant Funds paid to the subcontractor or subawardee for the same Project Year. 

The following items do not qualify as encumbered funds: 
 (1) In-kind costs; (2) Volunteer services furnished to the grant recipient; (3) Noncash contributions; (4) Income earned not available at the time of award;
(5) Pre-existing real estate including building, facilities and land, (6) Deferred giving such as a charitable remainder annuity trust, a charitable remainder unitrust, or a pooled income fund; or
(7) Other items as may be determined by the Oversight Committee. 

	**	 All supporting documentation for non-CPRIT funds expended are subject
to compliance review. 

 

 
 ATTACHMENT D 

INTELLECTUAL PROPERTY AND REVENUE SHARING 

This Attachment D is hereby incorporated into and made a part of that certain CANCER RESEARCH GRANT CONTRACT (“Contract”) by
and between the Cancer Prevention and Research Institute of Texas (“CPRIT” or the “INSTITUTE”) and the RECIPIENT. A capitalized term used in this Attachment shall have the meaning given the term in the
Contract or in the Attachments to the Contract, unless otherwise defined herein. In the event of a conflict between the provisions of this Attachment and the provisions of the Contract, this Attachment shall control. 

PART 1 
 OWNERSHIP AND
INTELLECTUAL PROPERTY PROTECTION 
 Section D1.01 Ownership of Project Results. RECIPIENT and its Collaborators, and (to the extent
applicable) any third party participating in the development of the Project Results, shall retain ownership of the Institute-Funded Technology and the Institute-Funded IPR, subject to the terms of the Contract. A Collaborator as defined in the
Contract is not a third party that engages with RECIPIENT as a licensing partner. 
 Section D1.02 Transfer or Assignment of Rights to a Third Party.
RECIPIENT shall notify the INSTITUTE of any proposed transfer or assignment of rights in any Project Results to a third party and provide to INSTITUTE a copy of the agreement under which the proposed transfer or assignment is to occur. RECIPIENT
shall ensure that, in any assignment or transfer of Project Results, the transferee or assignee agrees in writing to: (i) recognize that the Institute-Funded IPR and Institute-Funded Technology, as applicable, is transferred or assigned subject
to the licenses, interests and other rights in such Project Results provided to the INSTITUTE in the Contract and any applicable law or regulation, (ii) take all actions necessary to protect all such licenses, interests and other rights, and
(iii) be responsible for and pay all amounts required under Part 4 of this Attachment D. Any attempted transfer or assignment of rights in any Project Results to a third party without written agreement to the conditions in (i) — (iii)
above shall be null, void and of no effect. 
 Section D1.03 Protection of Institute-Funded IPR. Subject to Section D5.01, RECIPIENT shall use
commercially reasonable efforts to appropriately protect the Institute-Funded IPR, including without limitation, diligently seeking registration and maintenance of patents and copyrights covering the Institute-Funded Technology, as appropriate. If
RECIPIENT elects to abandon any patent applications filed or patents issued covering any Institute-Funded Technology in any Major Market Country, RECIPIENT shall provide the INSTITUTE with prior written notice of such election, with sufficient time
(but no less than 60 days) for the INSTITUTE to exercise its rights under this Section D1.03 with respect thereto. Upon notice of the aforesaid, the INSTITUTE shall have the right, but not the obligation, to pursue protection of the applicable
Institute-Funded Technology on its own behalf in such Major Market Country, including directing the filing, prosecution and maintenance of patent applications or patents covering the applicable Institute-Funded Inventions in any of such Major Market
Countries for which the INSTITUTE exercises its rights under this Section D1.03. In the Major Market Countries where the INSTITUTE pursues protection of the Institute-Funded Technology under this Section D1.03, RECIPIENT agrees to grant, and does
hereby grant, to the INSTITUTE a non-exclusive, irrevocable, royalty-free, 

  
 Page D1 

 
perpetual license with right to sublicense in the applicable Major Market Countries to the applicable Instituted-Funded Technology and any applicable Project Results. For clarification, a
determination by RECIPIENT to (i) abandon a patent application in favor of a continuation or divisional application or the like, or (ii) narrow the scope of the claimed subject matter, shall not be deemed an election to abandon such
Institute-Funded IPR. 
 Section D1.04 Cost of Protection. The INSTITUTE shall not be responsible for, and no Grant funds may be used to pay for, any
costs or expenses associated with RECIPIENT’s efforts to protect the Institute-Funded IPR. 
 Section D1.05 Inventions. 

(a) Disclosures and Patent Applications. RECIPIENT shall notify INSTITUTE of each Institute-Funded Invention by delivering to INSTITUTE
a copy of the invention disclosure within thirty (30) days after RECIPIENT receives or generates it. In the event that a patent application is filed on the invention disclosure, RECIPIENT shall provide the INSTITUTE with a complete copy of such
patent application and associated filing documents within (30) days of its filing. 
 (b) Patent Prosecution and Maintenance. For
all Institute-Funded Inventions for which patent protection is pursued, RECIPIENT shall provide an annual written report to the INSTITUTE regarding the status of pending applications and issued patents that are Institute-Funded IPR. 

Section D1.06 Required Agreements with Recipient Personnel and Contractors. The RECIPIENT shall have, maintain and enforce written policies or
agreements applicable to Recipient Personnel and Contractors with terms sufficient to enable RECIPIENT to fully comply with all terms and conditions of this Contract, including that Recipient Personnel and Contractors agree to and hereby assign any
Institute-Funded Inventions to RECIPIENT. RECIPIENT shall promptly report to INSTITUTE any material breach of such policies or agreements relating to or affecting any of the provisions of this Contract. 

Section D1.07 Agreements with Collaborators. All agreements between RECIPIENT and a Collaborator, or a third party participating in the development of
the Project Results, relating to or affecting joint ownership of any Project Result shall recognize the licenses, interests and other rights provided to the INSTITUTE in the Contract. RECIPIENT shall provide to the INSTITUTE a copy of each such
agreement affecting joint ownership of any Project Result. 
 PART 2 

NON-COMMERCIAL LICENSES 

Section D2.01 RECIPIENT License. In granting an Exclusive License to any Project Results, RECIPIENT shall retain the right to Exploit all Project
Results (including material embodiments thereof) for education, research and other non-commercial purposes, and the right to grant the licenses pursuant to Section D2.02 below. 

Section D2.02 INSTITUTE License. RECIPIENT agrees to grant, and does hereby grant, to the INSTITUTE a
non-exclusive, irrevocable, royalty-free, perpetual, worldwide license with right to sublicense under the Project Results and, subject to any existing third party rights, any Necessary Additional IPR to
Exploit all Project Results (including material embodiments of Project Results) by the INSTITUTE, other governmental entities and agencies of the State of Texas, and private 

  
 Page D2 

 
or independent institutions of higher education (as defined by Texas law) located in Texas, for education, research and other non-commercial purposes only
pursuant to industry-standard confidentiality and/or material transfer agreements to be entered into between the parties, as applicable. RECIPIENT shall make the Institute-Funded Technology available by reasonable means to the INSTITUTE in order for
the INSTITUTE to exercise its rights under this Section D2.02, at no cost to RECIPIENT. A copy of any written license granted by INSTITUTE under this Section D2.02 will be provided to RECIPIENT by INSTITUTE within ten (10) days of the effective
date of such license. 
 Section D2.03 No Implied Licenses. No implied licenses are granted under this Agreement including without limitation any
license to any Intellectual Property Rights owned or controlled by RECIPIENT outside of the institute-Funded IPR. Nothing in this Agreement shall be construed to impose an obligation on RECIPIENT to license or otherwise make available any of its
Intellectual Property Rights or other resources owned or controlled by it except as expressly provided in this Agreement 
 PART 3

 COMMERCIALIZATION OF PROJECT RESULTS 

Section D3.01 Commercialization Strategy. RECIPIENT shall be under a continuing obligation throughout the term of this Contract to enhance and improve
the commercial development plan submitted with the Application and to provide an annual written report to the INSTITUTE regarding the RECIPIENT’s and its licensee’s efforts to commercialize or otherwise bring to practical application
Project Results. The INSTITUTE may, at its option and at any time, provide RECIPIENT with comments regarding the RECIPIENT’s commercial development plan and strategy, in which case RECIPIENT shall consider in good faith and, if appropriate, use
reasonable efforts to account for and incorporate the INSTITUTE’s input into such commercial development plan and strategy. 
 Section D3.02
Commercialization Efforts. The RECIPIENT shall, including whether through its own efforts or the efforts of a licensee under a License Agreement allowed by the terms of this Attachment, use diligent and commercially reasonable efforts to
commercialize at least one Commercial Product or Commercial Service or otherwise bring to practical application the Project Results in accordance with the commercial development plan submitted with the Application and including any changes to such
commercial development plan in accordance with Section D3.01. For the avoidance of doubt, partnering or licensing activities shall be considered to be efforts to commercialize. 

Section D3.03 Licensing of Project Results. Each License Agreement entered into by the RECIPIENT shall include an acknowledgement by the licensee that
(i) such License Agreement is subject to the INSTITUTE’s licenses, interests and other rights under this Contract, and (ii) to the extent that there is a conflict between the terms of the License Agreement and the terms of this
Contract, the terms of this Contract shall prevail. In addition, all License Agreements shall include terms obligating the licensee to report to the RECIPIENT such information as is required for the RECIPIENT to fully comply with the terms of the
Contract, including without limitation the reporting obligations set forth in Attachment E, and to allow RECIPIENT to make the grants specified in Sections D2.02. The RECIPIENT shall monitor the performance of its licensees and such licensees’
compliance with the terms of the License Agreements and shall take commercially reasonable actions to enforce the terms of all License Agreements. The RECIPIENT shall promptly report to the INSTITUTE any material breach of a License Agreement
relating to or affecting any of the material provisions of this Contract. 

  
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 [ *** ] =
Confidential material redacted and filed separately with the Commission. 
  

 Section D3.04 Cost of Licensing Activities. The INSTITUTE shall not be responsible for, and no Grant
funds may be used to pay for, any costs or expenses associated with the RECIPIENT’s Licensing Activities. 
 Section D3.05 Survival. The
licenses, rights and obligations set forth in this Attachment D, except Section D3.01, shall survive any termination of this Contract, including any termination for convenience by RECIPIENT. 

Section D3.06 Recipient Opt-Out. In the event RECIPIENT determines, after diligently attempting to comply with
the terms of Section D3.02, to cease its efforts, either directly or through a licensee, to commercialize or otherwise bring to practical application the Project Results, it will so notify the INSTITUTE in writing promptly thereafter. Such written
notice must identify the Project Results and provide a reasonable explanation of the reasons for the RECIPIENT’s election. Upon receipt of such notice, the INSTITUTE and RECIPIENT shall meet within thirty (30) days to review the Project
Results and rationale for the RECIPIENT’s election. Provided that RECIPIENT’s determination to cease its efforts was not based on material safety concerns related to the Project Results, the INSTITUTE and RECIPIENT shall engage in good
faith negotiations regarding an alternative commercialization strategy and/or revenue sharing approach. 
 The INSTITUTE and RECIPIENT may consider, among
other options, an award of equity in the RECIPIENT, expansion or modification of the Institute Funded Activity to cover other commercial products or commercial services being advanced by the RECIPIENT, or some combination thereof. Unless otherwise
agreed, if the INSTITUTE and RECIPIENT are unable to achieve an alternative strategy or agreement within one-hundred and eighty (180) days of the RECIPIENT’s initial notice of election, and provided
that RECIPIENT’s determination to cease its efforts was not based on material safety concerns related to the Project Results, the INSTITUTE shall have the right, but not the obligation, to exercise its rights in Section 05.01 in relation
to the Project Results at the INSTITUTE’s expense. If the INSTITUTE elects to exercise its rights under Section D5.01 in relation to the Project Results, the INSTITUTE shall notify the RECIPIENT in writing within the later of 220 days of
INSTITUTE’s receipt of the RECIPIENT’s initial notice of election or thirty (30) days following a declaration by one of the Parties that good faith negotiations have failed. In the event that the INSTITUTE exercises its option under
this Section 03.06, the RECIPIENT shall cooperate with the INSTITUTE’s efforts and provide to INSTITUTE sufficient information such as relevant feasibility studies, trial results, regulatory summaries, and pertinent schedules or deadlines
in relation to the Project Results, in commercializing or otherwise bringing to practical application the applicable Project Results at the INSTITUTE’s cost. For clarity, so long as the RECIPIENT is making efforts to commercialize at least one
Commercial Product or Commercial Service, RECIPIENT shall have no obligation to provide the written notice as described in this Section D3.06. 

PART 4 
 REVENUE
SHARING 
 Section D4.01 Revenue Sharing Percentages. In consideration for the Grant Award Proceeds paid to the RECIPIENT by the INSTITUTE
under the Contract: 
 a. RECIPIENT shall pay to the INSTITUTE during the Revenue Term the following payments until the INSTITUTE receives
the aggregate amount of [ *** ] of the Grant Award Proceeds: 
 (i) a revenue sharing percentage of [ *** ] of
Revenue for Cumulative Revenue greater than [ *** ] U.S. dollars (USD[ *** ]) and less than or equal to [ *** ] U.S. dollars (USD[ *** ]); 

  
 Page D2 

  
 [ *** ] =
Confidential material redacted and filed separately with the Commission. 
  

 (ii) a revenue sharing percentage of [ *** ] of Revenue for Cumulative
Revenue greater than [ *** ] U.S. dollars (USD[ *** ]) and less than or equal to [ *** ] U.S. dollars (USD [ *** ]); and 

(iii) a revenue sharing percentage of [ *** ] of Revenue for Cumulative Revenue greater than [ *** ] U.S. dollars
(USD [ *** ]). 
 For clarity, no payments will be made by the RECIPIENT to the INSTITUTE under this Section 04.01(a) until the
Cumulative Revenue of the Recipient is greater than [ *** ] U.S. dollars (USD [ *** ]). 
 b. In the event the RECIPIENT and/or its
licensee is required to obtain a license under Intellectual Property Rights of one or more Third Parties in order to make Sales of Commercial Products and/or Commercial Services in any given country (“Participating License
Sources”), then the revenue sharing percentages set forth under Section D4.01(a)(i)-(iii) may be reduced by [ *** ] for every [ *** ] royalty paid to such Third Parties on Commercial Products and/or Commercial Services in
such country, as applicable, provided that in no event will the payments otherwise due to the INSTITUTE under Section D4.01(a) be less than[ *** ] of the payments that would be payable to the INSTITUTE absent the effects of this Section
D4.01(b). By way of example, if the RECIPIENT is required to obtain such a license from a Third Party in a country wherein the RECIPIENT pays a [ *** ] royalty for Intellectual Property Rights that cover Commercial Products and Commercial
Services in such country, the revenue sharing percentages under Section D4.01(a)(i), (ii), and (iii) would be reduced to [ *** ], [ *** ], and [ *** ] in such country, respectively. 

Section D4.02 Continued Revenue Sharing. In the event the INSTITUTE receives during the Revenue Term the aggregate amount of [ *** ] of the
Grant Award Proceeds from the RECIPIENT, the RECIPIENT will continue to pay the INSTITUTE a revenue sharing percentage of [ *** ] of Revenue for all Revenue generated during the remainder of the Revenue Term. For clarity, this revenue sharing
percentage cannot be reduced as set forth in Section D4.01(b). 
 Section 04.03 Equity. Nothing herein prohibits the INSTITUTE
from negotiating with the RECIPIENT for an equity share in the RECIPIENT in addition to or in lieu of the revenue sharing set forth in Sections D4.01 and D4.02, when mutually agreed to by the INSTITUTE and the RECIPIENT. But under no circumstances
is the INSTITUTE obligated to negotiate for an equity share in the RECIPIENT in lieu of the revenue sharing set forth herein. 
 Section D4.04 Statements
and Timing of Payments. All payments owed pursuant to this Part 4 shall be made to the Cancer Prevention and Research Institute of Texas, and are payable on or before the thirtieth day following the end of the calendar quarter in which the
Revenue is received or, in the case of Section D4.05, the monetary recovery is received. For each payment specified in Sections D4.01 and D4.02, the payment shall be accompanied by a statement specifying for such calendar quarter: (i) the
Contract to which the payment relates, (ii) the identities of, royalty percentages, and amounts actually paid to any Participating License Sources, (iii) the License Agreements, if any, to which the payment relates, (iv) the quantity
of all Sales of each Commercial Product and Commercial Service since the last payment, if Sales are applicable to the current payment, (v) the gross consideration from all such Sales, if Sales are applicable to the current payment, and
(vi) a calculation of the amount of the payment to the Cancer Prevention and Research Institute of Texas. 

  
 Page D3 

 Section D4.05 Recoveries in Enforcement Actions. In the event that the RECIPIENT receives any
monetary recovery from its enforcement of Institute-Funded IPR against infringement by a third party, then it shall pay to the State of Texas a share of such monetary recovery, including any punitive damages, less the documented fees and expenses
that are directly associated with such enforcement and are paid by RECIPIENT to third parties, at the same rate and in the same manner as it shares Revenue pursuant to Sections D4.01 and 04.02 (including any adjustments allowed by
Section 04.01(b)). For clarity, if the enforcement action is resolved by way of the execution of a License Agreement with the allegedly infringing third party and such License Agreement is consistent with this Part 4, then this
Section 04.05 is not intended to apply to such License Agreement or the consideration specified therein. 
 Section D4.06 Revenue-Related
Records. In addition to satisfying the requirements of Article IV of the Contract and Section E1.03 of Attachment E, the RECIPIENT shall keep complete and accurate Revenue-related records until the fourth anniversary of the date of the payment
of the last payment owed hereunder, in sufficient detail to permit the INSTITUTE to confirm the accuracy of the statements delivered to the INSTITUTE under Section D4.04 and the calculation of the payments owed hereunder. 

Section D4.07 Audit of Revenue-Related Records. Upon at least fifteen (15) days’ advance written notice, the RECIPIENT shall permit the
INSTITUTE or its representatives or agents, at the INSTITUTE’s expense, to examine the Revenue-related records of the RECIPIENT pursuant to Section D4.06 once per calendar year during regular business hours for the purpose of and to the extent
necessary to verify the RECIPIENT’s compliance with this Part 4. The rights of the INSTITUTE under this Section 04.07 shall terminate on the fourth anniversary of the date of the payment of the last payment owed hereunder. In the event
that any such examination reveals an underpayment to the INSTITUTE of greater than five percent (5%) of the amounts previously paid by the RECIPIENT to the INSTITUTE, then the RECIPIENT shall reimburse the INSTITUTE for the cost of such examination.

 PART 5 
 OPT-OUT AND DEFAULT 
 Section D5.01 RECIPIENT Opt-Out. If the
INSTITUTE elects to exercise its rights in relation to the Project Results under Section D3.06, the INSTITUTE shall have the right, but not the obligation, to pursue protection of the Applicable Institute-Funded IPR on its own behalf, including
directing the filing, prosecution and maintenance of patents covering the applicable Institute-Funded Inventions and/or to commercialize or otherwise bring to practical application Project Results covered by the Applicable Institute-Funded IPR, at
its own cost, either directly or through one or more licensees. For the purposes of this Part 5, “Applicable Institute-Funded IPR” shall mean all Project Results. If the INSTITUTE elects to exercise any such rights under this
Section 05.01, it shall notify RECIPIENT in writing pursuant to the notification requirements in Section D3.06 and RECIPIENT shall thereafter comply with the terms of Section D5.03 with regard to the Applicable Institute-Funded IPR. 

  
 Page D2 

 Section D5.02 RECIPIENT Default. In the event that the INSTITUTE notifies RECIPIENT in writing of
RECIPIENT’s failure to materially comply with its obligations under Section D3.02, and RECIPIENT fails within sixty (60) days of such notice either: (a) to cure such failure, or in the event that such failure cannot be reasonably
cured within such 60-day period, to provide to INSTITUTE a plan to cure such failure that INSTITUTE deems acceptable, (b) to provide written notice to the INSTITUTE that such failure was due to material
safety concerns, or (c) to provide proper notice pursuant to Section 3.06, then without further action on the part of the RECIPIENT or INSTITUTE, the RECIPIENT shall be deemed to have provided the INSTITUTE the complete, written notice of
its cessation of efforts as described in Section 3.06, and the INSTITUTE shall be free to exercise its rights under Section 3.06. 
 Section
D5.03 RECIPIENT Cooperation upon Opt-Out or Default. In the event that the INSTITUTE exercises any of its rights under Section 05.01, the RECIPIENT shall: 

 

	 	(1)	 subject to any existing third party rights, transfer and assign, and does hereby assign, all of its right,
title and interest in and to the applicable Project Results to the INSTITUTE or the INSTITUTE’s designee, to the maximum extent allowed by law, including where relevant and necessary to facilitate the foregoing transfer, requesting and
diligently attempting to obtain any approvals required by law or otherwise in relation to such transfer, and subject to any existing third party rights, hereby grants to the INSTITUTE a non-exclusive,
royalty-free, perpetual, fully transferable and sublicensable license under any Institute-Funded Technology and Necessary Additional IPR to Exploit the Project Results for the development, manufacture and sale of Commercial Products and Commercial
Services and for all other purposes reasonably related thereto; 

  

	 	(2)	 to the extent that RECIPIENT is unable to transfer all of its right, title and interest in and to the
applicable Project Results to the INSTITUTE as specified in Section D5.03(1), and subject to any existing third party rights, RECIPIENT hereby grants to the INSTITUTE an exclusive, royalty-free, perpetual, fully transferable and sublicensable
license under the Applicable Institute-Funded IPR to Exploit the Project Results for the development, manufacture and sale of Commercial Products and Commercial Services and for all other purposes reasonably related thereto, provided that the
INSTITUTE may exercise the foregoing rights only after exercising its right under Section D5.01; 

  

	 	(3)	 cooperate with the INSTITUTE’s efforts, and at the INSTITUTE’s cost, in protecting Applicable
Institute-Funded IPR and Institute-Funded Technology, and in commercializing or otherwise bringing to practical application the applicable Project Results, including making relevant Recipient Personnel (to the extent still obligated to RECIPIENT),
Contractors, Collaborators, records (including without limitation, laboratory notebooks, electronic records and data), papers, information, samples, specimens and other materials related to the applicable Project Results reasonably available for
such purposes and executing any documents and taking any further action reasonably necessary to effectuate the intent of this Section D5.03; and 

  

	 	(4)	 subject to applicable law, not take any action that would oppose or impede the INSTITUTE’s ability to
protect the applicable Project Results. 

 If the INSTITUTE exercises its rights under Sections C15.01, the RECIPIENT shall have no
further claim to or interest in the applicable Project Results, except as set forth in Section D2.01 of this Attachment and shall not be entitled to any share of Revenue or any other compensation with respect to such Project Results, except to the
minimum extent required by law, if any. To the extent that the INSTITUTE has exercised its rights under Section 05.01 and RECIPIENT is unable to transfer all of its right, title and interest in and to the applicable Project Results to the
INSTITUTE as specified in D5.03(1), then the INSTITUTE’s license set forth in D5.03(2) includes 

  
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the right, but not the obligation, for the INSTITUTE at its cost to: (i) direct the filing, prosecution and maintenance of patents covering the applicable Project Results, and
(ii) enforce all Applicable Institute-Funded IPR relevant to the Project Results against any infringement by a third party. Subject to the statutory duties of the Texas Attorney General, if any, RECIPIENT shall cooperate fully with the
INSTITUTE in any action brought by the INSTITUTE to enforce the Institute-Funded IPR in the applicable Project Results, at the INSTITUTE’s cost, including without limitation, joining the enforcement action in name as a party plaintiff after all
required approvals are obtained; provided that the INSTITUTE or its designee shall have full control over such enforcement action and shall receive and retain all monetary and other recoveries resulting from such enforcement actions, including any
punitive damages. 
 PART 6 

DEFINITIONS 
 Throughout this
Attachment D, the following underlined terms shall have the meanings given below. 
 (1) Commercial Product means anything that is based on,
utilizes or is developed from, or materially incorporates, the Project Results and that is capable of being sold, licensed, transferred or conveyed to another party or is capable of otherwise being Exploited or disposed of, whether in exchange for
consideration or not. 
 (2) Commercial Service means any service performed that is based on, utilizes or is developed from, or materially
incorporates, the Project Results. For clarity, Commercial Service does not include non-commercial research and development performed by RECIPIENT or its Collaborators or licensees. 

(3) Cumulative Revenue means after the First Commercial Sale worldwide of a Commercial Product or Commercial Service, the sum of all Revenue in
all years and calendar quarters up to the calendar quarter in which the applicable revenue sharing percentage in Section D4.01 is being paid. 
 (4)
Exclusive License means a License Agreement under which the specific rights granted to the licensee with respect to the Project Results, including without limitation scope of use and territorial rights, are granted on an exclusive
basis. 
 (5) Exclusivity means any exclusivities granted by the government in a country to provide an entity with protection from competitors
in the commercial market for a defined period of time, including but not limited to patent-based exclusivities (and any patent term extensions, supplementary protection certificates or patent term adjustments thereof, and the like), and market-based
“data” exclusivities (e.g., orphan drugs, new chemical entities, biologics, new formulations or combinations, and pediatric, and the like). For the avoidance of doubt, Exclusivity shall not mean any protection gained solely from either
trade secrets or trademarks. 
 (6) Exploit or Exploitation means make, have made, use, sell, offer to sell, import, export, or
otherwise commercialize, dispose of, practice, copy, distribute, create derivative works of, publicly perform or publicly display. 

  
 Page D4 

 (7) First Commercial Sale means the first bona fide arm’s length Sale of a Commercial
Product or Commercial Service to a Third Party by or on behalf of RECIPIENT or its licensees for monetary value, for use or consumption by the end user of such Commercial Product or Commercial Service. For clarity, Sales of a Commercial Product or
Commercial Service for registration samples, clinical trial purposes or compassionate use sales, named patient use, test marketing, sampling and promotional uses, inter-company transfers to affiliates of RECIPIENT or its licensees, shall not
constitute a First Commercial Sale. 
 (8) Grant Award Proceeds means the sum of all monies paid by INSTITUTE to RECIPIENT under the Contract.
For clarity, Grant Award Proceeds will not be diminished by the amount of any funds repaid to INSTITUTE by RECIPIENT under Section 4.07 of the Contract. 

(9) Institute-Funded IPR means any and all Intellectual Property Rights in and to Institute-Funded Technology. In no event shall
Institute-Funded IPR include any intellectual property rights and/or technology in existence and owned/controlled by the RECIPIENT prior to the receipt of funds from the INSTITUTE or arising from activities conducted independently of the Project or
acquired independently of the Project. 
 (10) Institute-Funded Invention means an Invention conceived or first reduced to practice by or on
behalf of RECIPIENT, including by Recipient Personnel, Contractor(s) and/or Collaborator(s) in the performance of Institute-Funded Activity. 
 (11)
Institute-Funded Technology means any and all of the following resulting or arising, in whole or in part, from Institute-Funded Activity during the Contract term: (a) proprietary and confidential information, including but not
limited to data, trade secrets, materials and know-how; (b) databases, compilations and collections of data; (c) tools, methods and processes; and (d) works of authorship, excluding all
scholarly works, but including, without limitation, computer programs, source code and executable code, whether embodied in software, firmware or otherwise, documentation, files, records, data and mask works; and all instantiations of the foregoing
in any form and embodied in any form, including but not limited to therapeutics, drugs, drug delivery systems, drug formulations, devices, diagnostics, biomarkers, reagents, methodologies and research tools. Institute-Funded Technology includes
Institute-Funded Inventions. Institute-Funded Technology shall not include items that were conceived of, in existence, or owned/controlled by RECIPIENT prior to receipt of funds from the INSTITUTE or arising from activities conducted independently
of the Project or acquired independently of the Project, such as: (a) proprietary and confidential information, including but not limited to data, trade secrets, materials and know-how;
(b) databases, compilations and collections of data; (c) tools, methods and processes; and (d) works of authorship, excluding all scholarly works, but including, without limitation, computer programs, source code and executable code,
whether embodied in software, firmware or otherwise, documentation, files, records, data and mask works; and all instantiations of the foregoing in any form and embodied in any form, including but not limited to therapeutics, drugs, drug delivery
systems, drug formulations, devices, diagnostics, biomarkers, reagents, methodologies and research tools. 
 (12) Intellectual Property Rights
or IPR means any and all of the following and all rights in, arising out of, or associated therewith: (a) all United States and foreign patents and utility models and applications therefor, and all reissues, re-examinations, divisionals, renewals, substitutions, extensions, provisionals, continuations and continuations-in part thereof, and equivalent or similar rights anywhere in
the world in inventions and discoveries; (b) all trade secrets and rights in know-how, materials and proprietary information; (c) all copyrights, copyright registrations and applications therefor,
and all other rights corresponding thereto throughout the world; (d) all mask works, mask work registrations and applications therefor, and any equivalent or similar rights in semiconductor masks, layouts, architectures or topology; and
(e) any similar, corresponding or equivalent rights to any of the foregoing anywhere in the world. 

  
 Page D5 

 (13) Invention means any idea, composition of matter, method, device, process or discovery
that is conceived and/or reduced to practice, whether patentable or not. 
 (14) License Agreement means an agreement by which an owner of a
Project Result grants any right to Exploit such Project Result to a Third Party in exchange for consideration. 
 (15) Licensing Activities
means the efforts of RECIPIENT or its Collaborator to negotiate, execute or enforce a License Agreement. 
 (16) Major Market Country means
one or more of the following: Canada, France, Germany, Italy, Japan, Spain, Switzerland, United Kingdom, and United States of America. 
 (17)
Necessary Additional IPR means any Intellectual Property Rights (a) owned by RECIPIENT, and (b) identified by the Institute and agreed to in writing by RECIPIENT, that are not Project Results but are necessary to Exploit the
Project Results for the specific purposes set forth in the applicable Section of this Attachment D. 
 (18) Project Results means any and all
Institute-Funded Technology and Institute-Funded IPR. 
 (19) Revenue means the gross consideration, whether cash (for example, but not by way
of limitation, any milestone fees, license fees, sublicense fees, or assignment fees) or non-cash (for example, but not by way of limitation, securities, direct equity interest, indirect equity interest, trade
or barter considerations, and the like), received from Sales to a Third Party by or on behalf of the RECIPIENT and its licensees (including RECIPIENT’s affiliates and sublicensees of RECIPIENT’s licensee), net of: (a) trade or
quantity discounts or rebates, credits, allowances or refunds given for rejected or returned Commercial Products or Commercial Services, (b) any sales, value-added or other tax or governmental charge levied on the sale, transportation or
delivery of a Commercial Product or Commercial Service (but excluding any income tax owed by the RECIPIENT), and (c) any separately stated charges for freight, postage, shipping and insurance. The foregoing notwithstanding, any consideration:
(i) received and used by RECIPIENT or its licensees for the purpose of research or development of Commercial Products and Commercial Services, or (ii) received from Sales made solely in the performance of clinical trials designed to obtain
regulatory approval for a Commercial Product or Commercial Service, or (iii) received by RECIPIENT or its licensees from Sales made for compassionate use where no profit was obtained by RECIPIENT or its licensees shall not be included in this
term. 
 (20) Revenue Term means the period commencing on the date of the First Commercial Sale of a Commercial Product or Commercial Service
and ending, on a country-by-country basis, when there is not, or there no longer exists, any Exclusivity for the Commercial Product or Commercial Service in such
country. If there is no Exclusivity for a Commercial Product or Commercial Service in any Major Market Country, the Revenue Term shall mean the period commencing on the date of the First Commercial Sale of such Commercial Product or Commercial
Service and ending twelve (12) years later. 
 (21) Sale or Sales means any sale, license, lease, transfer, conveyance or
other Exploitation or disposition of a Commercial Product or Commercial Service for which consideration from a first Third Party is received. For clarity, transfer or assignment of a Commercial Product or Commercial Service in connection with a
merger, consolidation, transfer or sale of all, or substantially all, of RECIPIENT’s business or assets, or change of control or similar transaction involving the RECIPIENT will not constitute a Sale. 

  
 Page D6 

 (22) Third Party means a party other than (a) the RECIPIENT, (b) any affiliate or
licensee of the RECIPIENT, either directly or through any sublicenses, or (c) an entity that enjoys any special course of dealing with any of (a) or (b) above. 

Other terms may be defined elsewhere in this Attachment or in the Contract. 

  
 Page D7 

 

 
 ATTACHMENT E 

REPORTING REQUIREMENTS 
 This Attachment E
is hereby incorporated into and made a part of that certain CANCER RESEARCH GRANT CONTRACT (“Contract) by and between the Cancer Prevention and Research Institute of Texas (CPRIT” or the
‘INSTITUTE’) and the RECIPIENT. A capitalized term used in this Attachment shall have the meaning given to term in the Contract or in the Attachments to the Contract, unless otherwise defined herein. In the event of a
conflict between the provisions of this Attachment and the provisions of the Contract, this Attachment shall control. 
 INSTITUTE and RECIPIENT agree as
follows: 
 ANNUAL REPORTING 

Section E1.01 Annual Reports. The RECIPIENT shall submit reports annually to the INSTITUTE within 60 days of the anniversary of the Effective Date of
this Contract or at such other time as may be specified herein. The reports shall be submitted by the means and in the form(s) required by the INSTITUTE and shall be signed by the Principal Investigator/Program Director and the RECIPIENT’S
Authorized Signing Official. To the extent possible, the reports shall only Include information that may be shared publicly. However, if it is necessary to submit information in the reports that the RECIPIENT considers confidential in order to fully
comply with the terms of this Contract, then the RECIPIENT shall use reasonable efforts to mark such information as “confidential” and shall, to the extent practicable, to segregate such information within the reports to facilitate its
redaction should redaction ever be necessary or appropriate. 
 Section E1.02 Contents of Reports. Each report shall contain a signed verification
(electronic signature is acceptable) of RECIPIENT’s compliance with each of its obligations as set forth in the Contract and shall include the following for the period covered by such report, as may then be applicable: 

(a) Project Data. During the term of the Contract, RECIPIENT shall include in its annual report each of the following (except that the final
annual report due under this part (a) shall be due within ninety (90) days after the end of the term of the Contract): 
 (1) A brief statement of
the progress made to under the Scope of Work, including the progress to achieve the Project Goals and Timelines set forth in Attachment A. 
 (2) A brief
statement of the Project Goals for the twelve months following submission of the report. 
 (3) New jobs created in the preceding twelve month period as a
result of the Grant funds awarded to RECIPIENT. 
 (4) An inventory of the Equipment purchased for the Project using Grant funds. 

(5) A HUB report in accordance with Section 3.08 ‘‘Historically Underutilized Businesses” of the Contract. 

(b) Commercialization Data. During the term of the Contract and continuing thereafter for so long as RECIPIENT has ongoing obligations to the INSTITUTE
with respect to protection, development, commercialization and licensing of Project Results pursuant to Attachment 0, RECIPIENT shall provide information about commercialization activities in a format specified by the INSTITUTE. 

(c) Revenue Sharing Data. During the term of the Contract and continuing thereafter for so long as RECIPIENT has ongoing obligations to the INSTITUTE
with respect to revenue sharing pursuant to Attachment 0: 
 (1) A statement of the identities of the funding sources, amounts and dates of funding for all
funding sources for the Project. 
 (3) A brief statement of the RECIPIENT’s efforts to secure additional funds to support the Project. 

(4) All financial information necessary to verity the calculation of the revenue sharing amounts specified in Attachment D. 

(d) Additional Data. In addition to the foregoing, RECIPIENT shall use commercially reasonable efforts to also promptly report any other
information required by this Contract or otherwise reasonably requested by the INSTITUTE, the Legislature, or any other funding or regulatory bodies covering the RECIPIENT’s activities under this Contract. 

Section E1.03 Record Keeping and Audits. The provisions of Article IV of the Contract shall apply fully to all information reported to the INSTITUTE
pursuant to this Attachment, except that the right of the State of Texas to audit and the RECIPIENT’s obligation to maintain Records shall continue until four years after the date of each such report made by RECIPIENT hereunder. 

Section E1.04 Confidentiality of Documents and Information. The provisions of Section 2.13 ‘Confidentiality of Documents and
Information” of the Contract shall apply fully to all Confidential Information reported, delivered or submitted to the INSTITUTE pursuant to this Attachment E.

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