Document:

Exhibit 10.1

 Exhibit 10.1 

CERTAIN PORTIONS OF THIS EXHIBIT FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WERE OMITTED AND REPLACED WITH “[*]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934. 

 
 

 
 April 9, 2015 
 Yuval
Cohen, CEO 
 Corbus Pharmaceuticals, Inc. 
 100 River Ridge
Dive 
 Norwood, MA 02062 
  

			
	 Development Program:
		 Clinical Trial for Resunab oral anti-inflammatory drug

		
	 Amount of Award:
		 $5,000,000

		
	 Name of Awardee:
		 Corbus Pharmaceuticals, Inc. (“Corbus”)

 Dear Yuval: 

We are pleased to inform you that Cystic Fibrosis Foundation Therapeutics, Inc. (“CFFT”) is hereby issuing an award
for the Development Program described in Exhibit A and disbursed in accordance with Exhibit B up to the amount indicated above (the “Award”). CFFT has determined that the Award is consistent with its charitable mission to
cure and/or mitigate cystic fibrosis and that the Development Program is unlikely to be completed or could be significantly delayed without the award. The awardee, Corbus, shall be responsible for the payment of all of the remaining costs required
to complete the Development Program and for costs associated with continuing CRE necessary to further develop and commercialize the Product. Each party’s obligations hereunder will commence and apply upon the execution of this Agreement. The
Award is in furtherance of CFFT’s charitable mission to cure and mitigate the effects of Cystic Fibrosis. The Award is subject to the following terms, conditions and policies of this Letter Agreement (“Agreement”): 

1. Disbursement of Award; CFFT Know-How; Reports. 

  
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 (a) The Award will be disbursed by CFFT to Corbus in accordance with the
Milestone Payment Schedule set forth in Exhibit B. Any CFFT funds not expended on the Development Program must be returned to CFFT, and upon such return, the amounts of such returned funds will not be included as part of the “Award”
for purposes of calculating any royalties or other amounts owed by Corbus to CFFT pursuant to Paragraph 2(b). 
 (b) To the
extent CFFT provides or makes available any information, expertise, know-how or other intellectual property related to cystic fibrosis or the treatment, prevention, or cure thereof (“CFFT Know-How”) to Corbus, CFFT hereby grants to Corbus
a non-exclusive, transferable, sublicensable (through multiple tiers), worldwide right and license under all of CFFT’s rights in such CFFT Know-How to assist Corbus to research, develop, commercialize, make, have made, use, sell, have sold,
offer for sale, import, export and otherwise exploit the Product. 
 (c) During the Development Program, Corbus agrees to
provide CFFT and the Project Advisory Group (“PAG”) specified below with a quarterly summary report, and a reasonably detailed, written report every six (6) months, summarizing progress toward achieving the goals of the Development
Program. In addition, Corbus shall prepare and deliver to CFFT a closing report within thirty (30) days after the completion of the Development Program. Corbus shall continue to report to CFFT annually through the PAG (as hereafter provided
for) on the progress of its development activities regarding the Product until the earlier of (i) first commercial sale of the Product (ii) such research efforts related to the Product are abandoned by Corbus, its Affiliates and its
sublicensees, solely as a result of scientific failure or (iii) the effective date of the Interruption License. 

2. Royalties. In consideration of CFFT’s license and transfer of intellectual property and CFFT Know How pursuant
to this Agreement, Corbus agrees to pay to CFFT royalties as follows: 
 (a) Corbus shall pay a one-time royalty to CFFT in
an amount equal to the Royalty Cap. Such amount shall be paid in three (3) equal installments: the first within ninety (90) days of the first commercial sale of the Product in the Field; and the remaining installments on or before the
first and second anniversaries of such date. 
 (b) In addition to the royalty payable pursuant to subparagraph
(a) above, Corbus shall pay to CFFT a one-time royalty equal to the Actual Award within sixty (60) days after the end of the first calendar year after which aggregate Net Sales of the Product in the Field exceed $ 500 million. 

  
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 (c) In the event of a license, sale or other transfer of the Product in the Field
(excluding Net Sales) or a Change of Control Transaction (a “Disposition”), Corbus shall pay to CFFT a payment equal to ten percent (10%) of any license or purchase price payments actually received by Corbus in the event of any such
license, sale or other transfer to a third party of Corbus’s rights to the Corbus Development Program Technology, up to three (3) times the amount of the Actual Award (the “Disposition Payment”). Such payment shall be made within
sixty (60) days after any transactions giving rise to such payment. Notwithstanding the payment of the Disposition Payment, the royalties specified in subparagraphs (a), (b) and (c) shall survive, provided that the royalty specified
in subparagraph (a) shall be reduced by the Disposition Payment. In the event that the Disposition relates to the use of the Product in the Field and outside of the Field or includes any intellectual property or other assets (other than Corbus
Development Program Technology that is specifically related to the development of the Product in the Field), the Parties shall agree in good faith on the proportional share of the value of any license or other purchase price payments attributable to
the Corbus Development Program Technology based upon the respective market size for the Product or other assets in determining the amount of the Disposition Payment. 

3. Commercially Reasonable Efforts. Corbus shall use Commercially Reasonable Efforts to conduct the Development Program
during the term of this Agreement. After the Development Program is completed, Corbus or its licensee, sublicensee, assignee or successor shall exercise Commercially Reasonable Efforts to continue to develop the Product. 

4. Program Advisory Group (“PAG”). 

(a) Corbus and CFFT shall form a PAG. The PAG serves the function of allowing CFFT to oversee the use of the Award funds and
to ensure that such funds are used solely in furtherance of CFFT’s tax-exempt mission, which is to promote the cure and/or mitigation of cystic fibrosis. The PAG shall terminate and cease to exist on the earlier of the commercialization of the
Product or the termination of this Agreement. The PAG shall consist of two (2) individuals appointed by Corbus and two (2) individuals appointed by CFFT. One of such individuals from Corbus and CFFT, respectively, shall be the principal
liaison to the Development Program. A party may replace the individuals appointed by such party and designate a different individual as the principal liaison upon written notice to the other party. 

(b) The role of the PAG shall be to determine, discuss and propose amendments to the Development Program and budget, to
determine whether payment milestones have been achieved, and 

  
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provide recommendations on other issues raised by either party relating to the Development Program, provided that no change to the Development Program shall be made without the written agreement
of both parties. 
 c) A party’s cost of attending and participating in the PAG shall be covered by such party. 

5. Interruption License. Corbus hereby grants the Interruption License to CFFT, which Interruption License shall be
effective as provided below. Upon written notice from CFFT following an Interruption (the “Interruption Notice”), Corbus shall elect, within thirty (30) days of such Interruption Notice, one of the following options by notice to CFFT:

  

	 	(a)	 Corbus shall reasonably demonstrate, in the form of a written progress report, that an Interruption has not occurred, or that Corbus, an Affiliate
thereof, or a licensee or sublicensee of either of the foregoing is exercising Commercially Reasonable Efforts to research, develop or commercialize the Product; 

 

	 	(b)	 Corbus shall provide CFFT with notice within such thirty (30) day-period that Corbus, an Affiliate thereof, or a licensee or sublicensee of
either of the foregoing, has plans to resume Commercially Reasonable Efforts to develop or commercialize the Product and resumes such Commercially Reasonable Efforts within the ninety (90) day period following such notice;

  

	 	(c)	 The Interruption License shall become effective, as set forth below; or 

 

	 	(d)	 Corbus may elect in lieu of the Interruption License, within thirty (30) days of the Interruption Notice (but only if and when the
Interruption License would otherwise have become effective), to pay to CFFT the greater of (A) two (2) times the Actual Award, or (B) the total of the Actual Award plus Interest up to the time of such election; and in the event of
such election and payment, this Paragraph 5 shall otherwise no longer be applicable. 

 The failure of the drug due to
safety issues or lack of sufficient efficacy in the Field or regulatory restrictions shall not be considered an Interruption. In addition, the Interruption License shall terminate and be of no further force and effect following payment by Corbus or
any of its sublicensees of any royalty payment under Paragraph 2. 
 If Corbus has elected (a) or (b) above within
thirty (30) days of the Interruption Notice, the Interruption Notice shall be deemed satisfied and be of no further force or effect unless CFFT notifies Corbus within thirty (30) days after receipt of Corbus’ progress report under
(a) above or provides notice under (b) above 

  
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that CFFT disputes such progress report or notice, as the case may be. If CFFT provides timely notice of its dispute, the parties shall resolve such dispute in accordance with the dispute
resolution provision of this Agreement. 
 If Corbus has elected (a) or (b) above, CFFT has disputed such
election, the resolution of the dispute is concluded and the final outcome of such dispute resolution is that such election was defective, Corbus shall be deemed to have made the election specified in (c) above unless within thirty
(30) days of the outcome of such dispute resolution, Corbus elects to exercise its rights under (d) above. If Corbus has made (or is deemed to have made) the election specified in (c) above, the Interruption License shall be effective
upon such election (or deemed election) (such date, the “Interruption License Effective Date”). The Interruption License shall be an exclusive (even as to Corbus), worldwide license to CFFT under the Corbus Development Program
Technology solely to the extent necessary to manufacture, have manufactured, license, use, sell, offer to sell, and support the Product in the Field. Corbus shall deliver to CFFT, within ninety (90) days after the Interruption License Effective
Date, a copy of all materials and data in its possession or control constituting Development Program Technology, to the extent required by CFFT to make, use, or sell the Product in the Field. For the avoidance of doubt, Corbus shall retain all
rights to the Development Program Technology for use outside of the Field. In the event that Corbus assigns all of or certain of its rights and obligations to develop and commercialize the Product at any time to a third party, such third party shall
be subject to the obligations of the Interruption License. The Interruption License shall be deemed to constitute intellectual property as defined in Section 365(n) of the U.S. Bankruptcy Code; provided, however, that nothing in this Agreement
shall be deemed to constitute a present exercise of such rights and elections. Corbus agrees that CFFT, as a licensee of such rights, shall retain and may exercise all of its rights and elections under the U.S. Bankruptcy Code. 

In the event the Interruption License becomes effective pursuant to this Section 5, CFFT shall share equally with Corbus
any income received in connection with the sublicense of the Interruption License, provided that, CFFT’s share shall be increased by two (2) percentage points and Corbus’ share shall be decreased by like percentage points, for every
additional one million dollars ($1 million) invested by CFFT or its Affiliate in the Product after the effective date of the Interruption License. For example, if after the effective date of the Interruption License, CFFT invests an additional ten
million dollars ($10 million) in additional research for the Product, CFFT’s share of any such income shall increase to seventy percent (70%), and Corbus’ share of such income shall decrease to thirty percent (30%) ; provided however
that at no time shall Corbus’s share of income received be less than 20%. 

  
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 6. Indemnification by Corbus. 

(a) Corbus shall indemnify, defend and hold harmless CFFT, its Affiliates, and their respective directors, officers,
employees, consultants, committee members, volunteers, agents and representatives and their respective successors, heirs and assigns (each, an “CFFT Indemnitee”), from and against any and all claims, suits and demands of third parties and
losses, liabilities, damages for personal injury, property damage or otherwise, costs, penalties, fines and expenses (including court costs and the reasonable fees of attorneys and other professionals) payable to such third parties arising out of,
and relating to any such third party claims resulting from: 
 (i) the conduct of the Development Program by Corbus or its
Affiliates or their respective directors, officers, employees, consultants, agents, representatives, licensees, sublicensees, subcontractors and/or investigators (each, a “Corbus Party”) under this Agreement and/or pursuant to one or more
agreements between Corbus and any Corbus Party, or any actual or alleged violation of law resulting therefrom; 
 (ii)
Corbus’ or its Affiliates’ development, manufacture, or commercialization of the Product developed in whole or in part as a result of the Development Program; 

(iii) any claim of infringement or misappropriation with respect to the conduct of the Development Program by or on behalf of
Corbus or its Affiliates, or Corbus’ or its Affiliates’ third party licensees’ or sublicensees’ manufacture, use, sale, or import of the Product developed in whole or in part as a result of the Development Program, other than any
such claim to the extent deriving from the use of CFFT Know-How; and 
 (iv) any tort claims of personal injury (including
death) relating to or arising out of any such injury sustained as the result of, or in connection with, the conduct of the Development Program by or on behalf of Corbus or its Affiliates, or Corbus’ or its Affiliates’ third party
licensees’ or sublicensees’ (other than CFFT or any of CFFT’s licensees or sublicensees development, manufacture, or commercialization of the Product developed in whole or in part as a result of the Development Program; in each case
except to the extent the claim, suit, demand, liability, damage, or loss results from the negligence, willful misconduct or other fault of a CFFT Indemnitee. 

  
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 (b) CFFT will indemnify, defend and hold harmless Corbus, its Affiliates and
their respective directors, officers, employees, consultants, agents and representatives and their respective successors, heirs and assigns (“Corbus Indemnitees”) from and against any and all claims, suits and demands of third parties and
losses, liabilities, damages for personal injury, property damage or otherwise, costs, penalties, fines and expenses (including court costs and the reasonable fees of attorneys and other professionals) payable to such third parties arising out of,
resulting from, or relating to any exercise of any rights under the Interruption License by or on behalf of CFFT, any designee, assignee or successor in interest thereto, or any licensee or sublicensee of any of the foregoing, except to the extent
the claim, suit, demand, liability, damage or loss results from the negligence or willful misconduct of a Corbus Indemnitee after the effective date of the Interruption License. 

(c) A party entitled to indemnification under this Paragraph 6 (the “Indemnified Party”) will promptly notify the
other Party (the “Indemnifying Party”) of any claims, suits, demands, losses, liabilities, damages costs, penalties, fines, or expenses subject to indemnification under this Paragraph 6 of which it is made aware. The Indemnified Party will
cooperate, and exert efforts to cause other Indemnified Parties to cooperate, in assisting the Indemnifying Party in presenting a defense, if requested to do so. The Indemnifying Party shall have sole control to select defense counsel, direct the
defense of any such complaint or claim, and the right to settle claims at the Indemnifying Party’s sole expense, provided that any such settlement does not incur non-indemnified liability for or admit fault by any Indemnified Party. In the
event a claim or action is or may be asserted, the Indemnified Party shall have the right to select and to obtain representation by separate legal counsel. If the Indemnified Party exercises such right, all costs and expenses incurred for such
separate counsel shall be borne by the Indemnified Party. No Indemnified Party shall settle or enter into any voluntary disposition of any matter subject to indemnification under this Paragraph 6 without the prior written consent of the Indemnifying
Party, such consent not to be unreasonably withheld. 
 7. Insurance. Corbus shall maintain at its own expense, with
a reputable insurance carrier, coverage for Corbus, its Affiliates, and their respective employees written on a per occurrence basis commensurate with a reasonable assessment of the risks associated with the development efforts being conducted by
Corbus, the following policies: Commercial general liability insurance, including contractual liability as respects this Agreement for bodily injury and property damage and, no later than the first use administration of the Product to a human
subject, the Product liability and clinical trials liability. 
 Maintenance of such insurance coverage will not relieve
Corbus of any responsibility under this Agreement for damage in excess of insurance limits or otherwise. On or prior to the Effective Date of this 

  
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Agreement, Corbus shall provide CFFT with an insurance certificate from the insurer(s), broker(s) or agent(s) (hereinafter collectively the “Insurance Providers”) evidencing the
applicable insurance coverage. At its request, CFFT may review Corbus’ insurance coverage with relevant Corbus personnel no more than one time per year. 

8. Intellectual Property Rights. All inventions, data, know-how, information, results, analyses, and other intellectual
property rights resulting from the Development Program shall, as between the parties, be owned by Corbus and the preparation, filing and maintenance of all patents resulting from the Development Program shall, as between the parties, be the sole
responsibility, and under the sole control, of Corbus. Subject to Paragraph 5, CFFT hereby assigns and transfers to Corbus all of CFFT’s right, title, and interest in and to all inventions and other intellectual property resulting from the
Development Program, CFFT’s access to, or knowledge or use of, any Corbus Development Program Technology, the Product, or confidential or proprietary information of Corbus, and all intellectual property rights related to any of the foregoing,
free and clear of all liens, claims, and encumbrances. 
 9. Termination of Agreement. 

(a) Either party may terminate this Agreement for cause, without prejudice to any other remedies available to the terminated
party with respect thereto, by providing the other party with written notice of such cause and intent to terminate; provided, however, that the other party shall have thirty (30) days following the receipt of written notice to cure such cause.
For this Paragraph 9, “cause” shall mean (i) a party’s material breach of its covenants or obligations under this Agreement, (ii) a bankruptcy or similar filing by a party or a proceeding under the applicable bankruptcy laws
or under any dissolution or liquidation law or statute now or hereafter in effect and filed against such party or all or substantially all of its assets if such filing is not dismissed within sixty (60) days after the date of its filing, or
(iii) Corbus’ material failure to achieve any Milestone within ninety (90) days of its anticipated achievement day. Notwithstanding the preceding, no such termination shall become effective if a party promptly disputes the basis
thereof in good faith and proceeds with dispute resolution provisions hereof, unless or until such basis for termination is established by such process. 

(b) The following provisions shall survive the termination of this Agreement: Paragraphs 2, 5, 6, 7, 8, 9, 10, 11, and 12.

  
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 10. Audits. At the request of CFFT, from time to time, Corbus shall permit
CFFT, upon reasonable notice, to audit and examine such books and records of Corbus as may be necessary for verifying Corbus’ expenditures of the Award and the payment of royalties, if any, but no more frequently than once every calendar year.
All non-public information made available by Corbus as part of any such audit, as part of any other reports (whether written or non-written), or otherwise under this Agreement (including, but not limited to, in connection with the PAG) shall be
regarded as Corbus’ confidential information and CFFT hereby covenants that, except to the extent required by law (provided that CFFT promptly notifies Corbus of such requirement and permits Corbus to seek, and reasonably cooperates with Corbus
at Corbus’ expense in seeking, a protective order therefor or other confidential treatment thereof), it shall not use any such information for any purpose other than determining whether Corbus has complied with its obligations hereunder
(provided that CFFT may also use information provided through the PAG to further the purposes of the PAG hereunder) or, in the event of the grant of the Interruption License, the exercise thereof, or disclose any such information to any third party,
and shall maintain such information in confidence in a manner at least as restrictive as its manner of treating its own confidential information of similar nature and in any event not less than with a reasonable degree of care. 

11. Miscellaneous. 

(a) Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of
Maryland. 
 (b) Dispute Resolution. 

(i) In the event of any dispute, claim or controversy arising out of, relating to or in any way connected to the
interpretation of any provision of this Agreement, the performance of either party under this Agreement or any other matter under this Agreement, including any action in tort, contract or otherwise, at equity or law (a “Dispute”), either
party may at any time provide the other party written notice specifying the terms of such Dispute in reasonable detail. As soon as practicable after receipt of such notice, an officer of each party shall meet at a mutually agreed upon time and
location to engage in good faith discussions for the purpose of resolving such Dispute. If the Dispute is not resolved within thirty (30) days of such notice, either party may institute arbitration in accordance with (ii) below. 

(ii) In the event any Dispute is not resolved in accordance with (i) above, such Dispute shall be resolved by final and
binding arbitration. Whenever a party decides to institute arbitration proceedings, it shall give written notice to that effect to the other party. Arbitration shall be held in 

  
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Washington, D.C., according to the then-current commercial arbitration rules of the Center for Public Resources (“CPR”), except to the extent such rules are inconsistent with this
subparagraph. The arbitration will be conducted by one (1) independent, neutral arbitrator who shall be mutually acceptable to both parties, such acceptance not to be unreasonably withheld, and who shall be appointed in accordance with CPR
rules. If the parties are unable to mutually agree on such an arbitrator, then the arbitrator shall be appointed in accordance with CPR rules. Any arbitrator chosen hereunder shall have educational training and industry experience sufficient to
demonstrate a reasonable level of relevant scientific, financial, medical and industry knowledge. Within twenty (20) days of the selection of the arbitrator, each party shall submit to the arbitrator a proposed resolution of the Dispute that is
the subject of the arbitration (the “Proposals”). The arbitrator shall thereafter select one of the Proposals so submitted as the resolution of the Dispute, but may not alter the terms of either Proposal and may not resolve the Dispute in
a manner other than by selection of one of the submitted Proposals. If a party fails to submit a Proposal, the arbitrator shall select the Proposal of the other party as the resolution of the Dispute. The arbitrator shall agree to render its opinion
within thirty (30) days of the final arbitration hearing. No arbitrator shall have the power to award punitive damages regardless of whether any such damages are contained in a Proposal, and such award is expressly prohibited. The proceedings
and decisions of the arbitrator shall be confidential, final and binding on all of the parties. Judgment on the award so rendered may be entered in any court having jurisdiction thereof. The parties shall share the costs of arbitration according to
the decision of the arbitrator. Nothing in this subparagraph will preclude either party from seeking equitable or injunctive relief, or interim or provisional relief, from a court of competent jurisdiction, including a temporary restraining order,
preliminary injunction, or any other form of permanent or interim equitable or injunctive relief, concerning a dispute either prior to or during any arbitration. 

(c) This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed to be an original, but
all of which together shall constitute one and the same Agreement. Facsimile and other electronically scanned signatures shall have the same effect as their originals. 

(d) All communications between the parties with respect to any of the provisions of this Agreement will be sent to the
addresses set out below, or to such other addresses as may be designated by one party to the other by notice pursuant hereto, by prepaid, certified air mail (which shall be deemed received by the other party on the seventh (7th) business day following deposit in the mail), or other electronic means of communication (each of which shall be deemed received when transmitted), with confirmation by first class letter,
postage pre-paid, given by the close of business on or before the next following business day: 

  
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 if to CFFT, at: 

Robert J. Beall, Ph.D 

6931 Arlington Rd., Suite 200 

Bethesda, Maryland 20814 

Phone: 301-907-2541 

Fax: 301-907-2699 

Email: RJB@cff.org 

with a copy to: 

Schaner & Lubitz, PLLC 

6931 Arlington Rd., Suite 200 

Bethesda, Maryland 20814 

Attn: Kenneth I. Schaner, Esq. 

Phone: 240-482-2848 

Fax: 202-470-2241 

E-mail: ken@schanerlaw.com 

if to Corbus, at: 

Yuval Cohen, CEO 

Corbus Pharmaceuticals, Inc. 

100 River Ridge Dive 

Norwood, MA 02062 

Phone: 617-963-0100 

Fax: 617-663-6085 

Email: ycohen@CorbusPharma.com 

With a copy to: 

Lowenstein Sandler LLP 

65 Livingston Avenue 

Roseland, New Jersey 07068 

Attn: Michael J. Lerner, Esq. 

Phone:973-597-6395 

E-mail:mlerner@lowenstein.com 

  
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 (e) The paragraph headings are for convenience only and will not be deemed to
affect in any way the language of the provisions to which they refer. 
 (f) Corbus will not, by amendment of its
organizational or governing documents, or through reorganization, recapitalization, consolidation, merger, dissolution, sale, transfer or assignment of assets, issuance of securities, or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms, provisions, covenants or agreements of this Agreement. 
 (g) This Agreement
may not be assigned by any party without the consent of the other party, except that either Party may assign this Agreement without such consent to an Affiliate of such party or in connection with the transfer, whether by sale of assets, merger or
otherwise, of all or substantially all of the assets or business of such party to which this Agreement relates. Any assignment that is not in accordance with this subparagraph 11(g) will be null and void ab initio. 

(h) Nothing herein contained shall be deemed to create an agency, joint venture, amalgamation, partnership or similar
relationship between CFFT and Corbus. Notwithstanding any of the provisions of this Agreement, neither party to this Agreement shall at any time enter into, incur, or hold itself out to third parties as having authority to enter into or incur, on
behalf of the other party, any commitment, expense, or liability whatsoever, and all contracts, expenses and liabilities in connection with or relating to the obligations of each party under this Agreement shall be made, paid, and undertaken
exclusively by such party on its own behalf and not as an agent or representative of the other. 
 (i) Corbus shall submit
any proposed press release or other public announcement, other than an academic, scholarly, or scientific publication, concerning the terms of this Agreement or this Award to the Public Affairs Department of CFFT prior to its public release with
sufficient time prior to its public release to allow for review and comment, except to the extent any such release or announcement is required by law, rule, or regulation or the rules of any securities exchange. CFFT’s support for the
Development Program shall be acknowledged in any publications related to the Development Program. 
 (j) The parties agree
that they intend to advance the body of general scientific knowledge of cystic fibrosis and its potential therapies and cures and the parties acknowledge that Corbus intends to, as commercially and scientifically reasonable based on the results of
the Development Program, publish the results of the Development Program in a scientific peer-reviewed publication on a timely basis. 

  
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 (k) In accordance with the U.S. Department of the Treasury Anti-Terrorist
Financing Guidelines, Corbus shall take reasonable steps to ensure that the payments received from CFFT are not distributed to terrorists or their support networks or used for activities that support terrorism or terrorist organizations and Corbus
shall periodically apprise CFFT of the steps taken to meet this goal. Corbus certifies that it is in compliance with all laws, statutes and regulations restricting U.S. persons from dealing with any individuals, entities, or groups subject to Office
of Foreign Assets Control (OFAC) sanctions. 
 (l) Corbus shall provide CFFT on the effective date with a description of its
other sources of support and update that description from time to time during the Development Program. 
 (m) Corbus shall
provide CFFT with a copy of its public filings, such as annual reports, with governmental units from time to time during the Development Program. 

12. Definitions. 

(a) Unless otherwise defined in this letter, the following shall apply: 

 

	 	•	 	 “Actual Award” means the total amount of the Award actually paid to Corbus. 

 

	 	•	 	 “Affiliate” shall mean, with respect to a party, any entity, which directly or indirectly controls, is controlled by, or is under common
control with, such party. For these purposes, “control” shall refer to (a) the ownership, directly or indirectly, of at least fifty percent (50%) of the voting securities or other ownership interest of an entity; or (b) the
possession, directly or indirectly, of the power to direct the management or policies of an entity, whether through the ownership of voting securities, by contract or otherwise. 

 

	 	•	 	 “Change of Control Transaction” shall mean the consummation of a transaction, whether in a single transaction or in a series of related
and substantially contemporaneous transactions, constituting (i) a merger, share exchange or other reorganization, (ii) the sale by one or more stockholders of a majority of the voting power of Corbus, or (iii) a sale of all or
substantially all of the assets of Corbus (or that portion of its assets related to the subject matter of this Agreement), in which the stockholders of Corbus immediately prior to such transaction do not own a majority of the voting power of the
acquiring, surviving or successor entity, as the case may be; provided that a Change of Control shall not include a bona fide financing transaction for the benefit of Corbus (i.e in which Corbus raises capital for general working or business
purposes) in which voting control of Corbus transfers to one or more persons or entities who acquire shares of Corbus, and the existing Corbus shareholders receive no consideration directly or indirectly in connection with the transaction.

  
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	 	•	 	 “Commercially Reasonable Efforts” or “CRE” shall mean the level of effort, expertise and resources that is substantially and
materially consistent with industry standards for companies of similar size and financial resources to research, develop and commercialize the Product, provided such research, development and commercialization is technically feasible, devoting the
degree of attention and diligence to such efforts that is substantially and materially consistent with industry standards for a product at a comparable stage in development, with similar market potential, and taking into account, without limitation,
issues of safety and efficacy, proprietary position, the competitive environment, the regulatory environment, and other relevant scientific, technical and commercial factors, and for companies of similar size and financial resources.

  

	 	•	 	 “Corbus Development Program Technology” shall mean all technology, in whole or in part, discovered, developed, or controlled, by Corbus
or its Affiliates, as a result of the Development Program under this Agreement in the Field (solely for purposes of the Interruption License), including, without limitation, technology owned or controlled by Corbus prior to Corbus’ performance
of the Development Program under this Agreement to the extent necessary in the performance of the Development Program under this Agreement. Without limitation, Corbus Development Program Technology shall include data, technical information, source
codes, know-how, inventions (whether or not patented), trade secrets, laboratory notebooks, and processes and methods. 

  

	 	•	 	 “Field” shall mean the treatment in humans of cystic fibrosis, asbestosis, bronchiectasis, byssinosis, chronic bronchitis/COPD
hypersensitivity pneumonitis, pneumoconiosis, primary ciliary dyskinsesis, sarcoidosis and silicosis. 

  

	 	•	 	 “Interest” shall mean the prime rate applicable during the relevant time period, as published in the Wall Street Journal, plus
five (5) percentage points. 

  

	 	•	 	 “Interruption” shall mean the cessation of Commercially Reasonable Efforts to develop a Product for more than three hundred sixty
(360) consecutive days at any time before the first commercial sale of the Product. For clarity, delays resulting from events outside of Corbus’ reasonable control (e.g., technical difficulties, shortages of supplies or materials, delays
in preclinical or clinical studies or regulatory processes, etc.) will not be deemed cessation of Commercially Reasonable Efforts. 

  

	 	•	 	 “Net Sales” shall mean, for any period, the gross amount received for sales of the Product in the Field by Corbus or any Corbus
Affiliate, sublicensee or transferee as applicable (a “Selling Person”), to a non-Affiliate of the Selling Person, less the following deductions, in each case to the extent specifically related to the Product and taken by the Selling
Person or otherwise paid for or accrued by the Selling Person (“Permitted Deductions”): 

  
 14 

 trade, cash, promotional and quantity discounts and inventory management fees
paid to wholesalers; 
 tariffs, duties, excises and taxes on sales (including sales or use taxes or value added taxes) to
the extent imposed upon and paid directly with respect to such sales (and excluding national, sales or local taxes based on income); 

freight, insurance, packing costs and other transportation charges allocated to the sale; 

invoiced amounts that are written off as uncollectible in accordance with Selling Person’s accounting policies,
consistently applied; 
 amounts repaid or credits taken by reason of damaged goods, rejections, defects, expired dating,
recalls or returns or because of retroactive price reductions, billing errors, or trial prescriptions; 
 charge back
payments, rebates and discounts granted to (i) managed healthcare organizations, (ii) federal, state or provincial or local governments or other agencies, (iii) purchasers and reimbursers or (iv) trade customers, including
wholesalers and chain and pharmacy buying groups; 
 discounts paid under state legislated or seller-sponsored discount
prescription drug programs or reductions for coupon and voucher programs; and 
 documented custom duties actually paid by
the Selling Person. 
 Sales of the Product between or among Corbus and its Affiliates and sublicensees for resale, or for use in the
production or manufacture of the Product, shall not be included within Net Sales; provided, however, that any subsequent sale of the Product (or any Product produced or manufactured using the Product) by Corbus or its Affiliate or sublicensee or
transferee to another non-Affiliate third party shall be included within Net Sales. Net Sales shall exclude any sale or other distribution for use in a clinical trial or other Development activity, for compassionate or named-patient use or for test
marketing. 
  

	 	•	 	 “Product” shall mean the Resunab oral anti-inflammatory product in any form, dosage or preparation in finished form, and any derivative
or combination product thereof for use in the Field. 

  

	 	•	 	 “Royalty Cap” shall mean five (5) times the Actual Award. 

We are pleased to make the Award described in this Agreement. Please indicate your agreement to the terms set forth in this
Agreement by signing below. 

  
 15 

 Sincerely, 

Cystic Fibrosis Foundation Therapeutics, Inc. 
  

			
	 By:
		   /s/ Robert J. Beall

	Name: Robert J. Beall, Ph.D.
	Title: President and CEO
	
	Agreed:
	
	Corbus Pharmaceuticals, Inc.
	By:		 /s/ Yuval Cohen

	Name: Yuval Cohen
	Title: President and Chief Executive Officer

  
 16 

 Exhibit A 

Development Program Plan and Budget 

EXHIBIT A – DEVELOPMENT PLAN 
 I.
SPECIFIC CLAIMS 
 JBT-101 (ResunabTM) is a synthetic endocannabinoid mimetic
agonist that specifically binds the cannabinoid receptor type 2 (CB2) to activate resolution of inflammation. JBT-101 is being developed as a novel therapeutic designed to positively impact chronic inflammation in cystic fibrosis (CF), and, as a
result, reduce acute pulmonary exacerbations, improve lung function, slow lung fibrosis, and improve quality of life in CF patients. Due to the compelling need for such a medicine in CF, the goal of this project is to develop JBT-101 for the
treatment of adults [*] with CF. 
 The overall aim of this project is to generate clinical proof of concept data pin adults with CF
to enable a decision on the advancement of JBT-101 into global phase 2b/3 clinical testing in adults [*]. The specific aims are: 

[*][Note: Approximately three pages of this Exhibit A for which confidential treatment has been requested have been omitted and filed
separately with the Securities and Exchange Commission.] 

  
 17 

 Exhibit B 

Payment Schedule 
  

					
	 Milestone
	  	 Milestone Payment
	 	 Expected Milestone

Completion Date

	 [*]
	  	10% ($500,000)	 	[*]
	 [*]
	  	15% ($750,000)	 	[*]
	 [*]
	  	[*]	 	[*]
	 [*]
	  	[*]	 	[*]
	 [*]
	  	[*]	 	[*]
	 [*]
	  	[*]	 	[*]

 Payments shall be made by CFFT are due [*] upon receipt from Corbus of the corresponding invoice and
supporting documentation verifying occurrence of such milestone and PAG verification. 

  
 18Exhibit 4.1

 

NEITHER THIS DEBENTURE NOR THE SECURITIES
INTO WHICH THIS DEBENTURE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

	Original Issuance Date:	  	May 11, 2015	   	$140,000.00
	Debenture Number:	 	PVSP – FCSF 203 	 

 

PERVASIP
CORP.

Secured Convertible Debenture

FOR VALUE RECEIVED,
PERVASIP CORP. (hereinafter called the “Obligor” or the
“Company”), hereby promises to pay to FLUX CARBON STARTER FUND LLC
(the “Holder”) or its successors and assigns the principal sum of ONE HUNDRED FORTY THOUSAND DOLLARS ($140,000.00)
in Obligor in cash or common stock on the terms and conditions hereof on or before December 31, 2015 (the “Maturity
Date”).

Interest.
Interest shall accrue on the outstanding principal balance hereof at an annual rate equal to the lesser of the minimum rate allowable
under law or SIX PERCENT (6%). Interest shall be calculated on the basis
of a 365-day year and the actual number of days elapsed, to the extent permitted by applicable law. Interest hereunder will be
paid to the Holder or its assignee in whose name this Debenture is registered on the records of the Obligor regarding registration
and transfers of Debentures at the option of the Obligor in cash, or converted into Common Stock at applicable Conversion Price
on the Trading Day immediately prior to the date paid provided that such shares are freely tradable by the Holder.

This Debenture is
subject to the following additional provisions:

Section 1.Conversion.

(a)Conversion
Procedure.

(i)This Debenture shall be convertible
into shares of Common Stock at the option of the Holder, in whole or in part at any time and from time to time, after the Effective
Date (set forth above) (subject to the limitations on conversion set forth in Sections 1(b)and 1(c) hereof). The Debenture
shall continue to be convertible on and after the Demand Date, until it is satisfied in full. The number of shares of Common Stock
issuable upon a conversion hereunder equals the quotient obtained by dividing (x) the outstanding amount of this Debenture to be
converted by (y) the Conversion Price (as defined in Section 1(c)(i)). The Obligor shall deliver Common Stock certificates
to the Holder prior to the Fifth (5th) Trading Day after a Conversion Date.

(ii)The Holder
shall effect conversions by delivering to the Obligor a completed notice in the form attached hereto as Exhibit A (a “Conversion
Notice”). The date on which a Conversion Notice is delivered is the “Conversion Date.” Unless the
Holder is converting the entire principal amount outstanding under this Debenture, the Holder is not required to physically surrender
this Debenture to the Obligor in order to effect conversions. Conversions hereunder shall have the effect of lowering the outstanding
principal amount of this Debenture in an amount equal to the applicable conversion. The Holder and the Obligor shall maintain records
showing the principal amount converted and the date of such conversions. In the event of any dispute or discrepancy, the records
of the Holder shall be controlling and determinative in the absence of manifest error.

(b)Certain
Conversion Restrictions. A Holder may not convert this Debenture to the extent such conversion would result in the Holder,
together with any affiliate thereof, beneficially owning (as determined in accordance with Section 13(d) of the Exchange Act and
the rules promulgated thereunder) in excess of 9.99% of the then issued and outstanding shares of Common Stock, including shares
issuable upon conversion of this Debenture held by such Holder after application of this Section. Since the Holder will not be
obligated to report to the Obligor the number of shares of Common Stock it may hold at the time of a conversion hereunder, unless
the conversion at issue would result in the issuance of shares of Common Stock in excess of 9.99% of the then outstanding shares
of Common Stock without regard to any other shares which may be beneficially owned by the Holder or an affiliate thereof, the Holder
shall have the authority and obligation to determine whether the restriction contained in this Section will limit

    	 

    	 

    

any particular conversion hereunder and
to the extent that the Holder determines that the limitation contained in this Section applies, the determination of which portion
of the principal amount of this Debenture is convertible shall be the responsibility and obligation of the Holder. If the Holder
has delivered a Conversion Notice for a principal amount of this Debenture that, without regard to any other shares that the Holder
or its affiliates may beneficially own, would result in the issuance in excess of the permitted amount hereunder, the Obligor shall
notify the Holder of this fact and shall honor the conversion for the maximum principal amount permitted to be converted on such
Conversion Date in accordance with the periods described in Section 1(a)(i) and, at the option of the Holder, either retain
any principal amount tendered for conversion in excess of the permitted amount hereunder for future conversions or return such
excess principal amount to the Holder. The provisions of this Section may be waived by a Holder (but only as to itself and not
to any other Holder) upon not less than 65 days prior notice to the Obligor. Other Holders shall be unaffected by any such waiver.

(c)Conversion
Price and Adjustments to Conversion Price.

(i)The “Conversion
Price” in effect on any Conversion Date shall be equal to $0.002 per share.

(ii) In case of any reclassification
of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is converted into other securities, cash
or property, the Holder shall have the right thereafter to, at its option, (A) convert the then outstanding principal amount and
any other amounts then owing hereunder in respect of this Debenture into the shares of stock and other securities, cash and property
receivable upon or deemed to be held by holders of the Common Stock following such reclassification or share exchange, and the
Holder of this Debenture shall be entitled upon such event to receive such amount of securities, cash or property as the shares
of the Common Stock of the Obligor into which the then outstanding principal amount and any other amounts then owing hereunder
in respect of this Debenture could have been converted immediately prior to such reclassification or share exchange would have
been entitled, or (B) require the Obligor to prepay the outstanding principal amount of this Debenture, plus all other amounts
due and payable thereon. The entire prepayment price shall be paid in cash. This provision shall similarly apply to successive
reclassifications or share exchanges.

(iii)All calculations under this
Section 1 shall be rounded up to the nearest $0.0001 or whole share.

(iv)If (A) the Obligor shall declare
a dividend (or any other distribution) on the Common Stock; (B) the Obligor shall declare a special nonrecurring cash dividend
on or a redemption of the Common Stock; (C) the Obligor shall authorize the granting to all holders of the Common Stock rights
or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights; (D) the approval of any stockholders
of the Obligor shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which
the Obligor is a party, any sale or transfer of all or substantially all of the assets of the Obligor, of any compulsory share
exchange whereby the Common Stock is converted into other securities, cash or property; or (E) the Obligor shall authorize the
voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Obligor; then, in each case, the Obligor
shall cause to be filed at each office or agency maintained for the purpose of conversion of this Debenture, and shall cause to
be mailed to the Holder at its last address as it shall appear upon the stock books of the Obligor, at least twenty (20) calendar
days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is
to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken,
the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights
or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share
exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of
record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such
reclassification, consolidation, merger, sale, transfer or share exchange, provided, that the failure to mail such notice or any
defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such
notice. The Holder is entitled to convert this Debenture during the 20-day calendar period commencing the date of such notice to
the effective date of the event triggering such notice.

(d)Other Restrictions.

(i)Obligor shall maintain a sufficient
amount of authorized common shares to enable conversion of all amounts due under this Debenture.

(ii)Notwithstanding anything to the
contrary contained in this Debenture, the Obligor shall have the right, exercisable on not less than three (3) days prior written
notice to the Holder of the Debenture to prepay any portion of the outstanding Debenture (principal, accrued interest, Post-Closing
Expenses, and any liquidated damages) in accordance with this Section 1(d). Any notice of prepayment hereunder (an “Optional
Prepayment Notice”) shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that
the Obligor is exercising its right to prepay the Debenture, and (2) the date of prepayment which shall be not more than three
(3) days from the date of the Optional Prepayment Notice. On the date fixed for prepayment (the “Optional Prepayment Date”),
the Obligor shall

    	 

    	 

    

make payment of the Optional Prepayment
Amount (as defined below) to or upon the order of the Holder as specified by the Holder in writing to the Obligor at least one
(1) business day prior to the Optional Prepayment Date. If the Obligor exercises its right to prepay the Debenture, the Obligor
shall make payment to the Holder of an amount in cash (the “Optional Prepayment Amount”) equal to 130%, multiplied
by the sum of the outstanding principal, accrued interest, Post-Closing Expenses, and any liquidated damages due hereunder. If
the Obligor delivers an Optional Prepayment Notice and fails to pay the Optional Prepayment Amount due to the Holder of the Note
within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepay the
Debenture pursuant to this Section 1(d).

(e)Other Provisions.

(i)The Obligor
covenants that all shares of Common Stock that shall be issuable pursuant to this Section 1 shall, upon issue, be duly and
validly authorized, issued and fully paid, and nonassessable.

(ii)Upon a conversion
hereunder the Obligor shall not be required to issue stock certificates representing fractions of shares of the Common Stock, but
may if otherwise permitted, make a cash payment in respect of any final fraction of a share based on the Closing Bid Price at such
time. If the Obligor elects not, or is unable, to make such a cash payment, the Holder shall be entitled to receive, in lieu of
the final fraction of a share, one whole share of Common Stock.

(iii)The issuance
of certificates for shares of the Common Stock on conversion of this Debenture shall be made without charge to the Holder thereof
for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificate, provided
that the Obligor shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and
delivery of any such certificate upon conversion in a name other than that of the Holder of such Debenture so converted and the
Obligor shall not be required to issue or deliver such certificates unless or until the person or persons requesting the issuance
thereof shall have paid to the Obligor the amount of such tax or shall have established to the satisfaction of the Obligor that
such tax has been paid.

(iv)Nothing herein
shall limit a Holder's right to pursue actual damages for the Obligor’s failure to deliver certificates representing shares
of Common Stock upon conversion within the period specified herein and such Holder shall have the right to pursue all remedies
available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief, in
each case without the need to post a bond or provide other security. The exercise of any such rights shall not prohibit the Holder
from seeking to enforce damages pursuant to any other Section hereof or under applicable law.

(v)The Obligor
shall bear the cost of legal opinion production, transfer agent fees, and equity issuance fees (collectively, the “Post-Closing
Expenses”), which amount shall be payable to Holder in the form of additional interest hereunder

(f)A “Default
Event” wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary
or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or
regulation of any administrative or governmental body):

(i)Any breach
of any provision of this Debenture or any Transaction Document by and between Holder and Obligor.

(ii)Withdrawal
from registration of the Obligor under the Exchange Act, voluntary or involuntary.

(iii)The Company
or any Active Subsidiary of the Company shall commence, or there shall be commenced against the Company or any Active Subsidiary
of the Company under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the
Company or any Active Subsidiary of the Company commences any other proceeding under any reorganization, arrangement, adjustment
of debt, relief of debtors dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in
effect relating to the Company or any Active Subsidiary of the Company or there is commenced against the Company or any Active
Subsidiary of the Company any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 61 days;
or the Company or any Active Subsidiary of the Company is adjudicated insolvent or bankrupt; or any order of relief or other order
approving any such case or proceeding is entered; or the Company or any Active Subsidiary of the Company suffers any appointment
of any custodian, private or court appointed receiver or the like for it or any substantial part of its property which continues
undischarged or unstayed for a period of forty-five (45) days; or the Company or any Active Subsidiary of the Company makes a general
assignment for the benefit of creditors; or the Company or any Active Subsidiary of the Company shall fail to pay, or shall state
that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the Company or any Active Subsidiary
of the Company shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its
debts; or the Company or any Active Subsidiary of the Company shall by any act or failure to act

    	 

    	 

    

expressly indicate its consent to, approval
of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Company or any Active Subsidiary of
the Company for the purpose of effecting any of the foregoing.

(iv)The Company
or any Active Subsidiary of the Company shall default in any of its obligations under any other debenture or any mortgage, credit
agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or by
which there may be secured or evidenced any indebtedness for borrowed money or money due under any long term leasing or factoring
arrangement of the Company or any Active Subsidiary of the Company in an amount exceeding $100,000, whether such indebtedness now
exists or shall hereafter be created and such default shall result in such indebtedness becoming or being declared due and payable.

(v)The Obligor
fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation
to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Debenture, fails
to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares
of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Debenture as and when required by this Debenture,
the Obligor directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring or
issuing (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion
of or otherwise pursuant to this Debenture as and when required by this Debenture, or fails to remove (or directs its transfer
agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw
any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon
conversion of or otherwise pursuant to this Debenture as and when required by this Debenture (or makes any written announcement,
statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue
uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for seven
(7) business days after the Holder shall have delivered a Notice of Conversion.

(vi)Any dissolution,
liquidation, or winding up of Obligor or any substantial portion of its business, or any cessation of operations or admission by
Obligor that it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure
of the Obligor’s ability to continue as a “going concern” shall not be an admission that the Obligor cannot pay
its debts as they become due.

(vii)The Common
Stock shall cease to be quoted or listed for trading on any primary market for a period of five (5) consecutive trading days (including,
for example, any such failure in which a bid price is not quoted for the Obligor’s Common Stock for such period).

(g)Upon the occurrence
of any Default Event which remains uncured for more than 60 days,

(i)all outstanding
principal, accrued interest, and, in consideration of the equity-based conversion discount afforded Holder hereunder, liquidated
damages equal to 200% of all outstanding principal and accrued interest due hereunder, shall be due and payable in full upon demand
of the Holder; and,

(ii)the Conversion
Price shall be automatically adjusted to the lesser of (x) $0.001 per share or (y) 100% of the 30 Day VWAP. As used herein, the
term “30 Day VWAP” shall mean and refer to the average of the five (5) lowest volume weighted average closing
market prices for the Common Stock for the 30 trading days preceding conversion as posted on the OTCQB or on such US National Exchange
upon which the Company may be listed.

Section 2.Notices.
All notices under this Agreement shall be in writing and shall be (i) delivered in person,
(ii) sent by telecopy, or (iii) mailed, postage prepaid, either by registered or certified mail, return receipt requested, or overnight
express carrier, addressed in each case to the addresses set forth above, or to any other address or telecopy number as such party
shall designate in a written notice to the other. All notices sent pursuant to the terms of this Section shall be deemed received
(i) if personally delivered, then on the date of delivery; (ii) if sent by telecopy before 2:00 p.m. local time of the recipient,
on the day sent if a business day or if such day is not a business day or if sent after 2:00 p.m. local time of the recipient,
then on the next business day; (iii) if sent by overnight, express carrier, on the next business day immediately following the
day sent; or (iv) if sent by registered or certified mail, on the earlier of the third (3rd) business day following the day sent
or when actually received. Any notice by telecopy shall be followed by delivery of a copy of such notice on the next business day
by overnight express carrier or by hand.

Section 3.Definitions.
For the purposes hereof, the following terms shall have the following meanings:

“Common
Stock” means the common stock, par value $0.00001, of the Obligor and stock of any other class into which such shares
may hereafter be changed or reclassified.

“Conversion
Date” shall mean the date upon which the Holder gives the Obligor notice of its intention to effectuate a conversion
of this Debenture into shares of the Company’s Common Stock as outlined herein.

    	 

    	 

    

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

“Underlying
Shares” means the shares of Common Stock issuable upon conversion of this Debenture.

Section 4.This
Debenture shall not entitle the Holder to any of the rights of a stockholder of the Obligor, including without limitation, the
right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of stockholders
or any other proceedings of the Obligor, unless and to the extent converted into shares of Common Stock in accordance with the
terms hereof.

Section 5.If
this Debenture is mutilated, lost, stolen or destroyed, the Obligor shall execute and deliver, in exchange and substitution for
and upon cancellation of the mutilated Debenture, or in lieu of or in substitution for a lost, stolen or destroyed Debenture, a
new Debenture for the principal amount of this Debenture so mutilated, lost, stolen or destroyed but only upon receipt of evidence
of such loss, theft or destruction of such Debenture, and of the ownership hereof, and indemnity, if requested, all reasonably
satisfactory to the Obligor.

Section 6.Any
waiver by the Holder of a breach of any provision of this Debenture shall not operate as or be construed to be a waiver of any
other breach of such provision or of any breach of any other provision of this Debenture. The failure of the Holder to insist upon
strict adherence to any term of this Debenture on one or more occasions shall not be considered a waiver or deprive that party
of the right thereafter to insist upon strict adherence to that term or any other term of this Debenture. Any waiver must be in
writing.

Section 7.Whenever
any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day.

Section 8.Notwithstanding
anything to the contrary contained herein, the number of shares of Common Stock that may be acquired by the Holder upon conversion
pursuant to the terms hereof shall not exceed a number that, when added to the total number of shares of Common Stock deemed beneficially
owned by such Holder (other than by virtue of the ownership of securities or rights to acquire securities (including the Notes)
that have limitations on the Holder’s right to convert, exercise or purchase similar to the limitation set forth herein),
together with all shares of Common Stock deemed beneficially owned at such time (other than by virtue of the ownership of securities
or rights to acquire securities that have limitations on the right to convert, exercise or purchase similar to the limitation set
forth herein) by the holder’s “affiliates” at such time (as defined in Rule 144 of the Act) (“Aggregation
Parties”) that would be aggregated for purposes of determining whether a group under Section 13(d) of the Securities
Exchange Act of 1934 as amended, exists, would exceed 4.9% of the total issued and outstanding shares of the Common Stock (the
“Restricted Ownership Percentage”).

Section 9.In
case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable,
such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and
the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby. In
no event shall the amount of interest paid hereunder exceed the maximum rate of interest on the unpaid principal balance hereof
allowable by applicable law. If any sum is collected in excess of the applicable maximum rate, the excess collected shall be applied
to reduce the principal debt. If the interest actually collected hereunder is still in excess of the applicable maximum rate, the
interest rate shall be reduced so as not to exceed the maximum allowable under law.

Section 10.Law;
Jurisdiction. This Debenture shall be governed by and interpreted in accordance with the laws of the State of New Jersey,
without regard to the principles of conflict of laws. The Obligor and the Holder expressly consent to the jurisdiction and venue
of the Superior Court of New Jersey, Bergen County, for any litigation between the parties.

Section 11.No
Jury Trial. The COMPANY hereto knowingly
and voluntarily waives any and all rights it may have to a trial by jury with respect to any litigation based on, or arising out
of, under, or in connection with, this Note.

Section 12.Waiver.
The Company hereby waives any and all demands of any nature whatsoever, any and all notices of any nature whatsoever, dishonor,
presentment of any kind whatsoever, and protest of or in connection with this Debenture.

Section 13.Entire
Agreement. THIS AGREEMENT EMBODIES THE ENTIRE AGREEMENT AND UNDERSTANDING BETWEEN THE PARTIES HERETO AND SUPERSEDES
ALL PRIOR AGREEMENTS AND UNDERSTANDINGS RELATING TO THE SUBJECT MATTER HEREOF.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

- SIGNATURE PAGE FOLLOWS]

    	 

    	 

    

IN WITNESS WHEREOF,
the Obligor has caused this Debenture to be duly executed by a duly authorized officer as of the date set forth above.

 

	PERVASIP CORP.
	 	 
	 	 
	By:/s/ Paul Riss	 
	Print:Paul Riss	 
	Title:Chief Executive Officer	 
	 	 

 

 

    	 

    	 

    

EXHIBIT “A”

NOTICE OF CONVERSION

(To be executed by the Holder in order
to convert the Debenture)

The undersigned hereby
irrevocably elects to convert the below listed amount of the Debenture into Shares of Common Stock of PERVASIP
CORP., according to the conditions stated therein, as of the Conversion Date written below.

	Conversion Date:	 
	Applicable Conversion Price:	 
	Amount to be Converted:	$
	Amount of Debenture Unconverted:	$ 
	Shares of Common Stock to be Issued:	 
	Please issue the shares of Common Stock in the following name and to the following address:	 
	Issue to:	 
	
         

        Authorized Signature:
	 
	Name:	 
	Title:	 
	Phone Number:	 
	Broker DTC Participant Code:	 
	Account Number:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00245-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00245-of-00352.parquet"}]]