Document:

EX-10.7

 Exhibit 10.7 

CONFIDENTIAL TREATMENT REQUESTED. INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS OMITTED AND MARKED WITH “[...***...]”. AN
UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

 AMENDMENT 

This amendment (”Amendment”), made on February 27, 2015, is an amendment to the license agreement with an effective date of May 20,
2010 (“Agreement”) entered into by and between Research Corporation Technologies, Inc., a Delaware nonprofit corporation with offices at 5210 E. Williams Circle, Suite 240, Tucson, Arizona 85711-4410 (“RCT”) and Ablynx
N.V., a limited liability company organized under the laws of Belgium, registered with the legal entities register under number BE 475295446 (district of Ghent), whose registered office is situated at Technologiepark 21, 9052 Zwijnaarde, Belgium
(hereinafter “Ablynx”). 
 Unless explicitly defined otherwise herein, all capitalized terms used in this Amendment have the meaning given
in the Agreement. 
 WHEREAS: 
 The Parties wish to
amend the Agreement as set out herein and also wish to enter into a separate license agreement in respect of NANOBODY PRODUCTS against the target RANK-L. 

NOW THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 
  

	1.	Effective as of [Date], the Parties agree to amend the Agreement as follows: 

  

	 	a)	Section 1.5 is deleted in its entirety and replaced by the following Section 1.5 (amendments compared to the original text underlined):

  

	 	1.5.	 “NANOBODY PRODUCT” means [...***...] collectively referred to herein as a
“NANOBODY”), provided that the term NANOBODY PRODUCT shall not include any NANOBODY that specifically binds to a single therapeutic target wherein said therapeutic target is
Receptor Activator of Nuclear Factor Kappa_B Ligand (“RANK-L”), [...***...]. For the sake of clarity, a NANOBODY PRODUCT containing the same NANOBODY active ingredient(s) as another NANOBODY PRODUCT is nevertheless a separate and
distinct NANOBODY PRODUCT from such other NANOBODY PRODUCT 

  

					
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OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

	 	
for all purposes under this Agreement if the former NANOBODY PRODUCT is used or sold with a label for a different route of administration (e.g. intravenous, subcutaneous, intrathecal,
intravitreal, inhalation, intranasal, oral (p.o.), topical ophthalmic, topical otic, topical dermal, etc.) from that of such other NANOBODY PRODUCT. Wherever possible, for determining the NANOBODY active ingredient of any NANOBODY PRODUCT, reference
shall be made to the active ingredient mentioned in the marketing authorization granted by a competent regulatory authority to place the relevant NANOBODY PRODUCT on the market in the relevant country or countries. 

 

	2.	In addition to the Agreement, the Parties agree to enter into and to execute between themselves on [Date] the license agreement attached to this Amendment as Appendix 1 (“RANK-L License Agreement”).

  

	3.	For the sake of clarity, the Parties wish to confirm that: (i) where a royalty is due [...***...]; and (ii) where a payment is due [...***...]; and (iii) where a minimum annual royalty is due
[...***...]. 

  

	4.	All other terms, conditions and provisions of the Agreement shall not be affected by this Amendment and shall remain in in full force and effect upon this Amendment entering into force. 

AS WITNESS, the parties hereto or their duly authorised representatives have duly executed this amendment in duplicate by affixing their respective signatures
below as of the day and year first written above. 
  

			
	 ABLYNX N.V.
	  	 RESEARCH CORPORATION

		  	 TECHNOLOGIES, INC.

		
	 Signature: /s/ Dr. Edwin Moses
	  	 Signature: /s/ Shaun A. Kirkpatrick

	 Name: Dr. Edwin Moses
	  	 Name: Shaun A. Kirkpatrick

	 Title: Chief Executive Officer
	  	 Title: President

	 Date: 4th March 2015
	  	 Date: March 9, 2015

  

					
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CONFIDENTIAL 
  

							
	 Name:
	 	 Dr. Edwin Moses
	 	 Name:
	 	
	 Title:
	 	 Chief Executive Officer
	 	 Title:
	 	
	 Date:
	 		 	 Date:
	 	

  

					
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OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

 APPENDIX: RANK-L LICENSE AGREEMENT 

LICENSE AGREEMENT 
 Effective February 27,
2015 (the “Effective Date”), Research Corporation Technologies, Inc., a Delaware nonprofit corporation with offices at 5210 E. Williams Circle, Suite 240, Tucson, Arizona 85711-4410 (“RCT”), and ABLYNX N.V. , a Belgium
corporation with its principal place of business at Technologiepark 21, 9052 Zwijnaarde, Belgium (“Licensee”) , agree as follows: 
 1.
DEFINITIONS 
 1.1. “HOST STRAINS” means the primary strains of Pichia pastoris listed in EXHIBIT A, any strains of
Pichia pastoris that RCT [...***...], and any strains of Pichia pastoris derived in any manner from the strains provided to Licensee by, or on behalf of, RCT or derived using materials, samples or
non-public written information provided to Licensee by, or on behalf of, RCT. In this Agreement, any materials or samples shall only be deemed to be provided to Licensee “on behalf of” RCT
[...***...], samples or non-public written information from [...***...] (or from another licensee or agent of RCT) with explicit written notification, given by [...***...] (or by
such other licensee or agent of RCT) at the time [...***...], that said materials, samples or non-public written information are provided by [...***...] (or by such other licensee or agent
of RCT) to Licensee [...***...] and, in case of materials, samples or non-public written information provided [...***...], that said materials, samples or
non-public written information are [...***...]. The HOST STRAINS that Licensee as of the Effective Date [...***...] are listed in EXHIBIT A. 

1.2. “ENGINEERED GLYCOSYLATION” means a [...***...]. 

1.3. “EXPRESSION VECTORS” means the primary vectors listed in EXHIBIT B, any vectors that RCT may later, [...***...] for use in
the HOST STRAINS, and vectors derived in any manner from the EXPRESSION VECTORS provided to Licensee under this Agreement or derived using materials, samples or information provided to Licensee by, or on behalf of, RCT. The EXPRESSION VECTORS that
Licensee as of the Effective Date [...***...] are listed in EXHIBIT B. 

  

					
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CONFIDENTIAL 
  

 1.4. “EXPRESSION SYSTEM” means a HOST STRAIN containing an EXPRESSION VECTOR which
directs the production of any protein or other substance. 
 1.5. “NANOBODY PRODUCT” means a [...***...] collectively
referred to herein as a “NANOBODY”), provided that, for the purposes of the present Agreement, the term NANOBODY PRODUCT is limited to NANOBODIES that can bind to a single therapeutic target wherein said therapeutic target is
Receptor Activator of Nuclear Factor Kappa-B Ligand “RANK-L”, it being understood and agreed that for the purposes of the preceding proviso, [...***...]. For the sake of clarity, a NANOBODY PRODUCT containing the same NANOBODY active
ingredient(s) as another NANOBODY PRODUCT is nevertheless a separate and distinct NANOBODY PRODUCT from such other NANOBODY PRODUCT for all purposes under this Agreement if the former NANOBODY PRODUCT is used or sold with a label for a different
route of administration (e.g. intravenous, subcutaneous, intrathecal, intravitreal, inhalation, intranasal, oral (p.o.), topical ophthalmic, topical otic, topical dermal, etc.) from that of such other NANOBODY PRODUCT. Wherever possible, for
determining the NANOBODY active ingredient of any NANOBODY PRODUCT, reference shall be made to the active ingredient mentioned in the marketing authorization granted by a competent regulatory authority to place the relevant NANOBODY PRODUCT on the
market in the relevant country or countries. 
 1.6. “RCT EXPRESSION TECHNOLOGY” means all technology, materials and know-how owned or controlled by RCT which relate to the HOST STRAINS, EXPRESSION VECTORS or EXPRESSION SYSTEM, are useful in the production of NANOBODY PRODUCT and either (i) Licensee [...***...]with
explicit written notification, given by [...***...], that such HOST STRAINS, EXPRESSION VECTORS or EXPRESSION SYSTEM are provided by [...***...] to Licensee [...***...]; or (ii) RCT delivers to Licensee pursuant to this
Agreement. 

  

					
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 CONFIDENTIAL TREATMENT REQUESTED. INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS
OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

 1.7. “LICENSEE EXPRESSION TECHNOLOGY” means technology, materials and other know-how of Licensee, its AFFILIATES or PARTNERS (for example and without limitation, conceived, generated, developed and/or reduced to practice by Licensee, its AFFILIATES or PARTNERS) that are improvements to, or
enhancements of, [...***...]. Licensee is under no obligation (i) to transfer to RCT or any third party any proprietary host strains, vectors or other materials within LICENSEE EXPRESSION TECHNOLOGY; or (ii) to disclose to RCT or to
any third party any non-public information proprietary to Licensee within LICENSEE EXPRESSION TECHNOLOGY. 

1.8. “EXPRESSION TECHNOLOGY” means RCT EXPRESSION TECHNOLOGY and LICENSEE EXPRESSION TECHNOLOGY. 

1.9. “RCT PATENT RIGHTS” means the patents and patent applications identified in EXHIBIT C, any patents that may issue from such
patent applications, and any continuation (in whole or in part) or divisional applications based on the patent applications listed in EXHIBIT C that RCT may later file, as well as all reissues, reexaminations, and extensions thereof. At the request
of Licensee not more frequently than [...***...], Exhibit C shall be updated by RCT. 
 1.10. “LICENSEE PATENT RIGHTS” means
all patent applications filed by Licensee (or its AFFILIATES or PARTNERS) and owned or controlled by Licensee (or its AFFILIATES or PARTNERS) in respect of LICENSEE EXPRESSION TECHNOLOGY and all patents issued or that may issue on such patent
applications (including any continuation (in whole or in part) or divisional applications based on such patent applications, as well as all reissues, reexaminations, and extensions thereof) in respect of LICENSEE EXPRESSION TECHNOLOGY. 

  

					
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OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

 1.11 “NET SALES” means the gross amounts invoiced by or on behalf of Licensee, its
AFFILIATES, or its PARTNERS (each of the foregoing, a “Selling Party”) for sales of NANOBODY PRODUCTS to third party end-users, less the following deductions actually incurred, allowed, or
paid but only to the extent that such deductions actually pertain to the sale or other disposition of such NANOBODY PRODUCTS by the Selling Party and are included in gross amounts invoiced (all as recorded by the Selling Party in its official books
and records in accordance with United States generally accepted accounting principles applied on a consistent basis): [...***...] 
 As used herein, a
“sale” means a sale or other disposition for value. Notwithstanding anything to the contrary herein, use of a NANOBODY PRODUCT for development purposes, such as for clinical trials, preclinical trials, compassionate use or indigent patient
programs shall not be deemed a sale hereunder. For purposes of converting invoice prices, in currencies other than U.S. Dollars, to U.S. Dollars, the current exchange rate as reported in the Wall Street Journal under the column headed Currency
Trading and subtitled Exchange Rates for the last business day of the CALENDAR HALF-YEAR in which the sales were made shall be used. 
 1.12.
“RELATED PARTY” means any one of Licensee, its AFFILIATES, its PARTNERS, or any other person enjoying a special course of dealing with Licensee, its AFFILIATES or its PARTNERS. By way of example but not limitation, a “special course
of dealing” includes co-marketing arrangements between Licensee and a third party wherein the third party may sell NANOBODY PRODUCT, arrangements under which a third party will sell NANOBODY PRODUCT under
a private labeling arrangement with Licensee, supply contracts in which Licensee agrees with a third party to supply or manufacture NANOBODY PRODUCT for sale by the third party under such third party’s name or mark, or barter arrangements in
which Licensee exchanges NANOBODY PRODUCT for other products in kind. However, it is understood that a third party shall not acquire RELATED PARTY status solely because Licensee and such third party have entered into a license agreement to utilize
technology that is not related to the subject of this Agreement 

  

					
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 CONFIDENTIAL TREATMENT REQUESTED. INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS
OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

 1.13. “CALENDAR YEAR” means any period of twelve consecutive months beginning with
January 1 of each calendar year. “CALENDAR HALF-YEAR” means any period of six consecutive months beginning with January 1 and July 1 of each calendar year. 

1.14. “AFFILIATE” means any entity which directly or indirectly controls, is controlled by, or is under common control with, a party
to this Agreement. “Control” shall constitute the right to cast, or the right to direct the casting of, at least fifty percent (50%) of the votes at a meeting of such entity’s owners. 

1.15. “MANUFACTURING PROCESS” means [...***...]. 

1.16. “PARTNER” means [...***...]. 

2. TRANSFER OF RCT EXPRESSION TECHNOLOGY. The HOST STRAINS and EXPRESSION VECTORS that Licensee as of the Effective Date [...***...] are listed in
Exhibit A. RCT shall not be required to provide any additional HOST STRAINS and EXPRESSION VECTORS to Licensee other than those explicitly requested in writing by Licensee and agreed upon by the parties. 

3. GRANT OF LICENSES TO LICENSEE, GRANT OF SUBLICENSES BY LICENSEE, AND LICENSEE EXPRESSION TECHNOLOGY. 

3.1. RCT hereby grants to Licensee the following nonexclusive, nontransferable (except as provided in Article 12) worldwide licenses:
(a) a license under the RCT PATENT RIGHTS to produce or make NANOBODY PRODUCT and only NANOBODY PRODUCT (but not to have produced or made except as provided under Paragraphs 3.5, 3.6 and 3.7) and to use, sell, offer to sell, and import the thus
produced NANOBODY PRODUCT; and (b) a license to use the EXPRESSION SYSTEM and to use the RCT EXPRESSION TECHNOLOGY to produce or make NANOBODY PRODUCT and only NANOBODY 

  

					
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 CONFIDENTIAL TREATMENT REQUESTED. INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS
OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

 PRODUCT (but not to have produced or made except as provided under Paragraphs 3.5, 3.6 and 3.7) and to use,
sell, offer to sell, and import the thus produced NANOBODY PRODUCT; subject to the limitations identified below. The foregoing licenses include, without limitation, the right to develop a MANUFACTURING PROCESS either on behalf of Licensee or on
behalf of a PARTNER, subject to Paragraphs 3.5, 3.6 and 3.7. The foregoing licenses include neither a license to provide “contract research” to any third party nor a license to do “contract manufacturing” for any third party that
has not been granted a license to use the EXPRESSION SYSTEM. “Contract research” is the performing of services for a third party using one or more HOST STRAINS, EXPRESSION VECTORS, or EXPRESSION SYSTEMS to make batches of NANOBODY PRODUCT
that are intended for administration to and/or testing in human beings. “Contract manufacturing” is the manufacture of NANOBODY PRODUCT under a contract for a third party wherein the third party will sell the NANOBODY PRODUCT under its (or
its AFFILIATE’S) own name or under a tradename owned by it (or its AFFILIATE). [...***...]. 
 3.2 RCT acknowledges and agrees
that any and all LICENSEE EXPRESSION TECHNOLOGY [...***...], and thus [...***...], without further obligation to RCT except as expressly provided for herein, including in Paragraph 3.4. Licensee shall not be under any obligation to
disclose or transfer any LICENSEE EXPRESSION TECHNOLOGY to RCT except as provided for herein, including in Paragraph 3.4. 
 3.3 Licensee
shall have the right, at Licensee’s sole discretion and expense, [...***...] “LICENSEE PATENT RIGHTS”). It is acknowledged and agreed that [...***...] (including, without limitation, the LICENSEE PATENT RIGHTS) shall
[...***...] except as expressly provided for herein, including in Paragraph 3.4. 
 3.4 RCT and Licensee recognize that part of
Licensee’s business interests lie in establishing intellectual property rights in the field of NANOBODY PRODUCTS. RCT and Licensee further recognize that RCT has a legitimate business interest in ensuring that any

  

					
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CONFIDENTIAL 
  

 LICENSEE PATENT RIGHTS [...***...]. For this reason, and subject to the last sentence of this Paragraph
3.4, Licensee herewith grants to RCT [...***...]. The license granted to RCT in this Paragraph 3.4 shall [...***...]. The license granted to RCT in this Paragraph 3.4 shall not include any right to enforce or assert the LICENSEE PATENT
RIGHTS without [...***...]. RCT will as soon as reasonably practicable inform Ablynx in writing of [...***...] under this Paragraph 3.4. For the sake of clarity, and notwithstanding any other provision of this Paragraph 3.4 or
this Agreement, Licensee shall not be under any obligation: [...***...]. 
 3.5 Subject to Paragraph 3.8, Licensee shall have the right
to grant sublicenses to the rights licensed to it under Paragraph 3.1 to a contract manufacturing organization solely for the purposes of (i) [...***...]; and/or (ii) [...***...]. Any sublicense granted under this Paragraph 3.5 shall
give the sublicensee [...***...]. 
 3.6 Subject to Paragraph 3.8, where Licensee has developed (on its own or, subject to the further
terms and conditions of this Agreement, jointly with the relevant PARTNER) a MANUFACTURING PROCESS for a NANOBODY PRODUCT (or where such a MANUFACTURING PROCESS has been developed on behalf of Licensee under Paragraph 3.5, subparagraph (ii)),
Licensee shall have the right to grant sublicenses to the rights licensed to it under Paragraph 3.1 to a PARTNER, solely in connection with an agreement between Licensee and the PARTNER that gives the PARTNER the right to develop and commercialize
said NANOBODY PRODUCT and to use said MANUFACTURING PROCESS to manufacture said NANOBODY PRODUCT (and/or in connection with the transfer of said MANUFACTURING PROCESS to the PARTNER for this purpose). [...***...]. 

3.7 [...***...] In respect of the NANOBODY PRODUCTS that may be developed, commercialized and/or sold pursuant to such sublicense,
Licensee shall remain responsible and liable to RCT for all of its obligations under this Agreement, including Paragraphs 4.2, 4.5, 4.6, 4.7 and 5.1 of this Agreement. [...***...]. 

3.8 [...***...]. 
 3.9
[...***...]. 
 4. PAYMENTS 
 4.1.
[LEFT INTENTIONALLY BLANK] 
 4.2. Subject to Paragraph 4.3, Licensee shall pay RCT the following earned royalty
payments on NET SALES of NANOBODY PRODUCTS, on a NANOBODY PRODUCT-by-NANOBODY PRODUCT and
country-by-country basis (with the Member States of the European Union being deemed a single country for the purposes of this Agreement), during the term of this
Agreement, and on NANOBODY PRODUCTS made or imported during the term of this Agreement but sold after the termination of this Agreement: 

  

					
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CONFIDENTIAL 
  

 (a) Where, in a country, the manufacture, use, sale or import of the NANOBODY PRODUCT by
Licensee or one of its AFFILIATES or PARTNERS would, [...***...] in said country; or 
 (b) Where, in a country: [...***...] in
said country; or 
 (c) Where, in a country: [...***...] in said country. 

It is understood and agreed that the royalty payments [...***...] of each NANOBODY PRODUCT. Earned royalty payments for Licensee’s activities
during the term of this Agreement are due [...***...]. For the sake of clarity, if none of the manufacture, use, sale, or importation of a NANOBODY PRODUCT would infringe (but for this Agreement) any RCT PATENT RIGHTS, the
[...***...], for such NANOBODY PRODUCT where applicable. 
 4.3. As mentioned in the first sentence of Paragraph 4.2: (i) the
royalties under Paragraph 4.2 shall be payable and paid on a NANOBODY PRODUCT-by-NANOBODY PRODUCT and
country-by-country basis; and (ii) for each NANOBODY PRODUCT, Licensee shall pay the royalties payable under Paragraph 4.2 during the term of this Agreement as set
out in Paragraph 10.1 (which term, as mentioned in Paragraph 10.1, is calculated and shall expire on a NANOBODY PRODUCT-by-NANOBODY PRODUCT and country-by-country basis), 
 [...***...]. 

[...***...]. 
 4.4. Licensee shall pay to
RCT US$35,000 (thirty-five thousand) [...***...] after each PARTNER initially becomes a PARTNER, [...***...]. RCT and ABLYNX acknowledge and agree that, in respect of [...***...]. 

4.5. Licensee shall pay to RCT a [...***...] annual minimum royalty of US$ [...***...], and Licensee may grant one sublicense to a
PARTNER under this agreement and such annual minimum royalty shall remain US$[...***...]. For the second, third and each sublicense agreement entered into by Licensee under this Agreement, the annual minimum royalty [...***...]. The
first annual minimum royalty shall first be due on [...***...]. Annual minimum royalties for subsequent years shall accrue and be payable on each and every successive [...***...] on which this Agreement is in effect. Licensee may credit
the annual minimum royalty payment made against the 

  

					
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CONFIDENTIAL 
  

 
amount of the earned royalties payable by Licensee to RCT in the same calendar year under this Agreement. No earned royalties paid for any calendar year in excess of annual minimum royalties
shall be creditable against any annual minimum royalty payment or earned royalties due in any other calendar year. 
 4.6. All payments due
hereunder are expressed in and shall be paid in United States of America currency by wire transfer, without deduction of exchange, collection or other charges to: RESEARCH CORPORATION TECHNOLOGIES, INC., [...***...]; or to the account of RCT
at such other bank as RCT may from time to time designate to Licensee in writing. If the amount is less than $[...***...], Licensee may elect to pay by company check, instead of wire transfer, to the address shown in Paragraph 15. 

4.7. Licensee agrees to take all reasonable and necessary steps to register this Agreement in any country of the RCT PATENT RIGHTS where such
is required to permit the transfer of funds and/or payment of royalties to RCT hereunder or is otherwise required by the government or law of such country to effectuate or carry out this Agreement. In no event shall Licensee be relieved of any
obligations under this Agreement because it failed to register this Agreement in any such country. 
 4.8. If Licensee fails to make any
payment required under this Agreement on or before the date [...***...] after Licensee’s receipt of RCT’S written notice of such failure, Licensee shall pay interest on such unpaid amount at an annual rate equal to the prime rate, as
quoted by Wells Fargo Bank, N.A., plus [...***...]%, which interest shall accrue on the entire, unpaid amount from the date the payment not timely made became due until the date such payment is paid in full. [...***...]. If such rate
exceeds the rate allowed by applicable law, then the highest rate allowed by law shall apply. Any payments received from Licensee by RCT shall be applied first to any unpaid, accrued interest and then to the satisfaction of any unpaid principal.

  

					
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 CONFIDENTIAL TREATMENT REQUESTED. INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS
OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

 4.9. [...***...]. Licensee shall not be responsible for any costs in relation to
filing, prosecution, grant, defense or maintenance (including U.S. or foreign maintenance fees for keeping in force any issued U.S. or foreign patent) of any of the RCT PATENT RIGHTS. Licensee shall cooperate with and assist RCT in obtaining any
exemption from taxes imposed by any government (or instrumentality) of any country of the RCT PATENT RIGHTS on royalty payments owed or made by Licensee to RCT. [...***...]. In such event, RCT shall fully cooperate with Licensee in obtaining,
through ordinary administrative procedures, a refund of such taxes withheld and shall promptly execute and sign such documents reasonably requested by Licensee to obtain such refund through ordinary administrative procedures, all without out-of-pocket expense to RCT. 
 5. REPORTS, RECORDS AND INSPECTION 

5.1. Subject to Paragraph 8.2, Licensee shall render to RCT, on or before the [...***...] or [...***...] (for Licensee and its
AFFILIATES) and [...***...] (for PARTNERS) immediately following the first sale of a NANOBODY PRODUCT under this Agreement, and on or before each [...***...] and [...***...] (for Licensee and its AFFILIATES) and [...***...]
(for PARTNERS) of each calendar year thereafter during the term of this Agreement, a true and complete written report setting forth the following items as they pertain to the CALENDAR HALF-YEAR just ended (for Licensee and its AFFILIATES) and
CALENDAR YEAR just ended for PARTNERS (separately stated for each entity and each country): [...***...]. 
 A responsible financial officer of
Licensee, Licensee’s independent accounting firm, or the head of Licensee’s internal audit committee shall certify in writing that each such report is correct and complete. Licensee’s payment of the earned royalties based on
Licensee’s, its AFFILIATES’, and its PARTNERS’ activities in the CALENDAR HALF-YEAR covered by the written report shall accompany the report. Licensee shall require its AFFILIATES and PARTNERS to make appropriate reports to Licensee
to enable Licensee to comply with this Paragraph. 

  

					
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 CONFIDENTIAL TREATMENT REQUESTED. INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS
OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

 5.2. Licensee shall keep and maintain complete and accurate books and records in accordance
with generally accepted accounting principles sufficient to enable RCT to determine the monies payable to RCT by Licensee under the terms of this Agreement. Licensee shall retain such records for [...***...] after the end of the reporting
period to which they pertain. Not more than [...***...] per calendar year, upon [...***...] written notice from RCT to Licensee, Licensee shall make such records available at the location where such records are customarily kept by
Licensee to an independent certified public accountant appointed by RCT and reasonably acceptable to Licensee, at any reasonable time during normal business hours, to the extent necessary for RCT to verify the records and payments due under the
terms of this Agreement. The books and records in respect of a given CALENDAR HALF-YEAR may only be audited [...***...], unless the sales and royalty reports in respect of which the audit is performed are found by the auditors not to be
accurate and correct, in which case the records may be audited again until such time that the auditors find that the relevant sales and royalty reports (as amended based on the outcome of the audit) are accurate and correct. [...***...]. The
auditors shall be allowed to take and to retain copies of the books and records referred to in this Paragraph 5.2. The auditors shall retain all information and all documents obtained in the course of the audit in the strictest confidence, provided,
however, that the auditors shall only be allowed to disclose to RCT in reasonable detail (i) whether the sales and royalty reports and the information contained therein are accurate and correct; and if not, the reason why not; (ii) the
amount of any outstanding royalties still payable to RCT, if any. The cost of the audit shall be borne by RCT, except in the event that the auditor finds that royalties for any calendar year been underpaid by an amount of more than
[...***...]% ([...***...] percent), in which case Licensee shall promptly reimburse RCT for all reasonable costs incurred by RCT in connection with the audit. Licensee shall require its AFFILIATES and PARTNERS to keep such books and
records to enable Licensee to comply with this Paragraph. 

  

					
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OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

 5.3. For the longer of [...***...] from the date on which RCT receives such
information, or the date [...***...] after the termination or expiration of this Agreement, RCT shall maintain the confidentiality of any and all of Licensee’s information received or obtained from Licensee under this Agreement, including
Licensee’s information received through the reports provided under Paragraph 5.1 or through the audit rights available to RCT under Paragraph 5.2. RCT’s obligations under this Paragraph 5.3 shall not apply to any of Licensee’s
information that, as evidenced by contemporaneous written records: (a) at the time of disclosure is or thereafter becomes available to the public through no fault of RCT; (b) was known to, or was otherwise in the possession of, RCT or its
AFFILIATE before the receipt of such information from Licensee; (c) is obtained by RCT or its AFFILIATE from a source other than Licensee, and other than one who would be breaching a commitment of confidentiality to the disclosing party by
disclosing such information; or (d) is developed by RCT or its AFFILIATE independently of any disclosure made under this Agreement. 
 6. SECRECY. 

6.1 Except as specifically provided below, Licensee shall treat all samples and materials provided to it by, or on behalf of, RCT (including
without limitation, all HOST STRAINS and EXPRESSION VECTORS provided under Article 2) as strictly confidential and will not divulge, distribute or provide such samples or material to any third party. Notwithstanding the foregoing, and subject to
Paragraph 3.7, Licensee may transfer any part(s) of the RCT EXPRESSION TECHNOLOGY [...***...] under Paragraphs 3.5 and/or 3.6 solely for the purpose(s) contemplated in these Paragraphs. Licensee shall not make any use of such samples or
material except as required or authorized under this Agreement. Licensee may make materials and samples provided by, or on behalf of, RCT available to government agencies or regulatory bodies to the extent necessary to obtain approval to develop,
test or market NANOBODY PRODUCT. Licensee agrees to take all commercially reasonable actions available to ensure that such agencies or regulatory bodies treat such materials and samples as confidential. Upon termination of this Agreement pursuant to
Paragraph 10.2 or 10.3. Licensee shall destroy or return to RCT all such samples and materials. Upon expiration of this Agreement pursuant to Paragraph 10.1, the last sentence of Section 10.1 and Paragraph 10.4 shall apply. 

  

					
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OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

 6.2 In the case of any written information of a confidential and/or proprietary nature that
has been disclosed to Licensee together with the transfer of HOST STRAINS and/or EXPRESSION VECTORS to Licensee (and provided such information has been properly marked as confidential), Licensee shall be free to disclose to third parties that part
of such written information that: (a) at the time of disclosure is or thereafter becomes available to the public through no fault of Licensee; (b) as shown by written records, was lawfully known to, or was otherwise lawfully in the
possession of, Licensee before the receipt of such information from RCT or any party acting on behalf of RCT, such as [...***...]; (c) is obtained by Licensee from a source other than RCT, or a party acting on its behalf, such as
[...***...], and other than one who would be breaching a commitment of confidentiality to RCT by disclosing such information; or (d) is developed by Licensee independently of any disclosure made under this Agreement. In addition, but
subject to Paragraph 3.7, Licensee may disclose any part(s) of such written information [...***...] under Paragraphs 3.5 and/or 3.6 solely for the purpose(s) contemplated in these Paragraphs. Upon termination of this Agreement pursuant to
Paragraph 10.2 or 10.3. Licensee shall destroy or return to RCT all copies of such information (except for one copy that Licensee can retain in its legal department in order to ensure its continued compliance with this Paragraph 6.2). Upon
expiration of this Agreement pursuant to Paragraph 10.1, the last sentence of Section 10.1 shall apply. 
 7. LIMITATION OF LIABILITY; INDEMNITY. 

7.1. Except in case of gross negligence or willful misconduct by RCT or one of its employees, RCT shall in no event be liable for damages,
whether direct or otherwise, arising out of the use by Licensee, its AFFILIATES, its PARTNERS or any third party of information, samples or materials supplied hereunder, or any NANOBODY PRODUCT made with the use or benefit of the EXPRESSION
TECHNOLOGY. RCT shall in no event be liable for lost or prospective profits or special or consequential damages, whether or not RCT has been advised of the possibility of such damages, nor for any claim by a third party against Licensee. 

  

					
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OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

 7.2. In recognition of the fact that RCT will have no control of the activities of Licensee
under this Agreement, Licensee agrees, for the term of this Agreement and for [...***...] thereafter, to indemnify and hold harmless RCT and all directors, officers and employees of RCT, from and against any and all claims, demands, and
actions, and resulting liabilities, judgments, costs and expenses of whatever kind, whether based on contract, negligence, strict liability, or statutory liability, including, without limitation, reasonable attorneys’ fees and cost of defense
arising out of or related in any way to the production or sale of NANOBODY PRODUCT under this Agreement. RCT shall ensure that Licensee is promptly notified of any such claims in which it intends to invoke this Article 7. RCT and its employees shall
cooperate fully with Licensee and its legal representatives in the investigation and defense of any action, claim or liability covered by this indemnification. The foregoing indemnity shall not apply to the extent any such liability is attributable
solely to the negligence or willful misconduct of RCT in connection with the production or sale of such NANOBODY PRODUCT. 
 7.3. On or
before the earlier of the date Licensee uses, sells, offers to sell, or imports a NANOBODY PRODUCT, Licensee shall obtain and, thereafter throughout the term of this Agreement, and for a period of [...***...] after termination of this
Agreement, maintain in force, product liability insurance and other insurance coverages typically carried by entities engaged in Licensee’s business in amounts not less than [...***...] U.S. Dollars (US$[...***...]) per accident or
occurrence. Such insurance policies shall name the Indemnitees as additional insureds as respects this Agreement. Such policies shall provide or be endorsed to provide that such insurance is primary and any other insurance carried by any of the
Indemnitees shall be excess and not contributing with the insurance required hereunder. The policies shall contain Cross Liability and/or Severability of Interests provisions so as to not impair the right of one insured against another insured. The
insurance policies shall provide or be endorsed to provide that written notice by registered mail shall be given to the Indemnitees at least thirty days before termination, cancellation, or reduction of coverage. The

  

					
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OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

 
insurance policies required to be carried by Licensee under this Agreement shall be with companies that are reasonably acceptable to, and approved by, RCT. Licensee shall furnish RCT with a
certificates of insurance evidencing coverage and, when requested, a copy of such policy. The requirements of this paragraph 7.3 shall survive termination of this Agreement. 

8. REPRESENTATIONS AND WARRANTIES. 
 8.1 Nothing
contained in this Agreement shall be construed as a representation by RCT that the RCT PATENT RIGHTS can be or will be used to prevent the importation, sale or use by a third party of a product in any country of the RCT PATENT RIGHTS where such
product is placed in commerce under circumstances which applicable laws or treaties preclude the use of the RCT PATENT RIGHTS to prevent such importation, sale or use. Nothing contained in this Agreement shall be construed as a representation or
warranty: (a) as to the scope or validity of any RCT PATENT RIGHTS; or (b) that any performance, or practice under any RCT PATENT RIGHTS is not an infringement of any patent of others. RCT warrants that it is the owner of the RCT
EXPRESSION TECHNOLOGY and RCT PATENT RIGHTS and that it has the right to grant the licenses granted under Paragraph 3.1 hereof. RCT makes no other warranties, express or implied. 

8.2 It is acknowledged and agreed that the development and commercialization of NANOBODY PRODUCTS (and the use of the EXPRESSION TECHNOLOGY for
this purpose) shall be at the sole discretion of Licensee. Thus, nothing contained in this Agreement shall be construed as placing any obligation (whether explicit, by implication or otherwise) on Licensee as to the development or commercialization
of NANOBODY PRODUCTS nor as to the use of the EXPRESSION TECHNOLOGY for this purpose. All decisions in this respect shall be taken by Licensee, at Licensee’s sole discretion and without any obligation to RCT (other than the reporting and other
obligations under this Agreement). Nothing contained in this Agreement shall be construed as a representation by Licensee that Licensee will develop any NANOBODY PRODUCTS using the EXPRESSION TECHNOLOGY or use the EXPRESSION TECHNOLOGY to develop or
produce any MANUFACTURING PROCESS and/or NANOBODY PRODUCTS. All decisions in this respect shall be taken by Licensee, at Licensee’s sole discretion and without any obligation to RCT (other than the reporting and other obligations under this
Agreement). 

  

					
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OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

 9. FORCE MAJEURE. No failure or omission by any party in the performance of any obligation of this Agreement
(except payments hereunder) shall be deemed a breach of this Agreement nor create any liability if the same shall arise from any cause or causes beyond the control of the party in question, as the case may be, including, but not restricted to, the
following, which, for the purpose of this Agreement, shall be regarded as beyond the control of the party in question: acts of God; acts or omissions of any government or any agency thereof; compliance with any governmental authority or any officer,
department, agency or instrumentality thereof; fire; storm; flood; earthquake; accident; acts of the public enemy; war, declared or undeclared; rebellion; insurrection; riot; sabotage; invasion; quarantine restrictions; strike; lockout; disputes or
differences with workmen; transportation embargoes or delays in transportation. 
 10. TERM AND TERMINATION 

10.1. Unless earlier terminated as hereinafter provided, this Agreement shall enter into force on the Effective Date and thereafter shall
expire, on a NANOBODY PRODUCT-by-NANOBODY PRODUCT and country-by-country basis, upon the later of: (a) the expiration of the last-to-expire of the RCT PATENT RIGHTS; or (b) the date ten years after the date of first commercial sale of each
NANOBODY PRODUCT in each country. Upon such automatic expiration, the licenses granted under Article 3 hereof shall become irrevocable and fully paid on a NANOBODY PRODUCT-by-NANOBODY PRODUCT and country-by-country basis, and Licensee may
retain and use all LICENSEE EXPRESSION TECHNOLOGY (including any RCT EXPRESSION TECHNOLOGY which forms an integral and inseparable part of the LICENSEE EXPRESSION TECHNOLOGY) for this purpose.  

10.2. Licensee may terminate this Agreement at any time by giving RCT [...***...] written notice of Licensee’s election to terminate
this Agreement, subject to Paragraph 10.4 below. 
 10.3. If a party defaults under any of the terms, covenants or provisions of this
Agreement, such party shall have [...***...] after the giving of written notice of such default to the other party within which to correct such default. If such default is not corrected within such [...***...] period, the other party
shall have the right, at its option, to cancel and terminate this entire Agreement by means of written notification to the party in default and the licenses granted hereunder, in addition to any remedies at law or equity available to RCT.

  

					
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OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

 10.4. Upon termination or expiration of this Agreement under any of Paragraphs 10.1, 10.2 or
10.3, Licensee shall immediately destroy all HOST STRAINS, EXPRESSION VECTORS and EXPRESSION SYSTEMS in Licensee’s possession, or return same to RCT, at RCT’s option. Nothing in this Agreement shall oblige Licensee, upon termination of
this Agreement for any reason, to destroy, transfer or provide to RCT any LICENSEE EXPRESSION TECHNOLOGY ([...***...]). 
 10.5.
Termination of this Agreement shall not constitute a termination or a waiver of any rights of either party against the other party accruing at or prior to the time of such termination, nor shall it terminate or waive either party’s obligations
under Article 6. Without limiting the generality of the foregoing, Licensee’s obligations to pay any amount payable to RCT under this Agreement, to report and pay royalties to RCT as to any NANOBODY PRODUCT made before termination of this
Agreement or expiration of the pertinent RCT PATENT RIGHTS (even if such NANOBODY PRODUCT is used or sold or imported after the termination of this Agreement or expiration of the pertinent RCT PATENT RIGHTS), shall survive such termination or
expiration in accordance with the relevant provisions of this Agreement. In addition to any provision of this Agreement that expressly provides for acts or obligations to continue beyond the termination of this Agreement, the provisions of Articles
5 (“Reports, Records and Inspection”), 6 (“Secrecy”), 7 (“Limitation of Liability; Indemnity”), 8 (“Representations and Warranties”), 14 (“Validity”), and 16 (“Dispute Resolution”) and
Paragraphs 10.4 and 10.5 shall survive the termination of this Agreement. 
 11. WAIVERS AND MODIFICATIONS. It is understood that this Agreement contains
the entire agreement between the parties relating to the production of NANOBODY PRODUCT using the EXPRESSION SYSTEM. Neither party shall be bound by any agreement, 

  

					
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OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

 
covenants or warranties made by its agents or employees, or any other person, unless such agreements, covenants and warranties shall be reduced to writing and signed by it. The failure of either
of the parties at any time or times to require performance by the other party of any provisions hereof shall in no manner affect the right of the first-mentioned party thereafter to enforce the same. The waiver by either party of any breach of any
provision hereof shall never be construed to be a waiver of any succeeding breach of such provision or a waiver of the provision itself. 
 12.
ASSIGNABILITY. This Agreement shall also be binding upon the legal successors of the parties. Also, Licensee may not assign or transfer any of its rights and/or any of its obligations arising out of this Agreement, either in full or in part, to any
third party without prior written permission of RCT, not to be unreasonably withheld; provided that Licensee may, at its sole discretion, but upon prior written notification to RCT, assign the benefit of this Agreement to Licensee’s legal
successor in connection with a merger or similar reorganization of, or in connection with the sale of all or substantially all of the assets or stocks in, the business to which this Agreement relates, whereupon this Agreement shall also be inure to
the benefit of and be binding upon such legal successor. 
 13. LAW. This Agreement shall be governed by and construed according to the laws of the state of
Delaware, United States of America, without regard to the laws of the state of Delaware concerning the conflict of laws. 
 14. VALIDITY. If any of the
provisions of this Agreement are held to be invalid or unenforceable, the parties will attempt to replace them with new provisions which have the same intended force and effect, but are valid, and the remaining provisions shall not be affected. 

15. ADDRESSES. All notices, requests, reports and other communications provided in this Agreement shall be in writing and shall be deemed to have been made or
given: (a) when delivered, if delivered by hand or sent by facsimile, confirmed electronic mail, or the like; (b) on the day following deposit with an overnight courier; or (c) on the date five days following deposit with the United
States Mail, certified or registered: 

  

					
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OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

			
		
	If to RCT:	  	If to Licensee:
		
	President & CEO	  	CEO
		
	Research Corporation Technologies, Inc.	  	Ablynx N.V.
		
	5210 E. Williams Circle, Suite 240	  	Technologiepark 4
		
	Tucson, Arizona, 85711-4410	  	Zwijnaarde, Belgium 9052
		
	Fax: [...***...]	  	Fax: +[...***...]
		
	Email: [...***...]	  	Email: [...***...]

 Such addresses may be altered by notice so given. If no time limit is specified for a notice required or permitted to be given
by this Agreement, the time limit therefor shall be three full business days, not including the day of mailing. The foregoing address shall be used for purposes of delivery of samples and materials. 

16. INDEPENDENT CONTRACTORS. Both parties are independent contractors under this Agreement. Consequently, nothing in this Agreement is intended or may be
construed so as to establish a partnership or joint venture between the parties and neither party shall have the authority (actual or apparent) to bind the other party. Also, unless expressly provided otherwise herein, each party shall bear its own
expenses incurred in performing its obligations under this Agreement. 
 17. USE OF NAME. Unless expressly provided otherwise herein, nothing in this
Agreement gives either party the right to use the name of the other party in any manner without prior written consent of said other party. However, Licensee shall have the right, at its sole discretion, to mention and disclose RCT as its licensor
for the RCT EXPRESSION TECHNOLOGY. However, each of RCT and Licensee must keep the terms of this Agreement strictly confidential and may not disclose the terms of this Agreement to any third party without

  

					
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OMITTED AND MARKED WITH “[...***...]”. AN UNREDACTED VERSION OF THE DOCUMENT HAS ALSO BEEN FURNISHED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

CONFIDENTIAL 
  

 
the other party’s prior written consent, which the other party may withhold in its sole discretion. Each party may disclose the content and terms of this Agreement to its legal counsel and
its outside accountants without obtaining the other party’s prior written consent. Each party represents and warrants that before the execution and delivery of this Agreement, it has disclosed none of the substance of the negotiations leading
to this Agreement nor the contemplated financial terms of this Agreement to any third party except its legal counsel and outside accountants. 
 18. NO
LICENSE. Other than expressly provided for in this Agreement, nothing in this Agreement grants or shall be construed to grant to any party any right or license to any intellectual property rights or to any application for any intellectual property
rights (including but not limited to patent applications or patents) that are held by and/or that are in the name of the other party, nor to any confidential or proprietary information that a party hereto may receive from the other party hereto.
Also, nothing in this Agreement grants or shall be construed to grant any claim or option to any right or license referred to in this Paragraph 18. 
 19.
DISPUTE RESOLUTION. The parties shall make all reasonable efforts to resolve any dispute concerning this Agreement, its construction, or its actual or alleged breach, by
face-to-face negotiations between senior executives. Should such negotiation fail to resolve the matter, either party may bring judicial proceedings to resolve the
matter in any state or federal court of competent jurisdiction sitting in the State of Delaware. By executing and delivering this Agreement, each party, for itself and in respect of its property, irrevocably consents and submits to the exclusive
jurisdiction and venue of such courts in any such proceeding and otherwise waives any objection or defense, including any objection or defense based on forum non conveniens or improper venue, which it may now or hereafter have to the bringing
of any such proceedings in such courts. Each party further agrees that service of process of notice in any such proceeding shall be effective if in writing and sent in the manners provided in Paragraph 15 of this Agreement, or in any other manner
permitted by Delaware law. 

  

					
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CONFIDENTIAL 
  

 20. EXECUTION. This Agreement may be executed in counterparts and executed copies sent by facsimile or
electronic mail shall be acceptable. 
 IN WITNESS WHEREOF, each party to this Agreement has caused a duly authorized officer to sign this
Agreement to be effective the Effective Date. 
  

			
	 ABLYNX N.V.
	 	 Research Corporation Technologies, Inc.

		
	 By: /s/ Johan
Heylen                                        
            
	 	 By: /s/ Shaun A.
Kirkpatrick                                       
 

	 Name: Johan Heylen
	 	 Shaun A. Kirkpatrick, President & CEO

	 Title: Chief Commercial Officer
	 	 Authorized Signatory

	 Authorized Signatory
	 	
		 	
		
	 By: /s/ Dominique
Tersago                                        

	 	
	 Name: Dominique Tersago
	 	
	 Title: Chief Medical Officer
	 	

  

					
		  	page 24 of 24	  	date: 28/08/2017Converted by EDGARwiz

 

 

 

 NEITHER THIS NOTE NOR THE SECURITIES THAT MAY BE ISSUED BY THE COMPANY UPON CONVERSION HEREOF (COLLECTIVELY, THE “SECURITIES”) HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THE SECURITIES NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED: (I) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR APPLICABLE STATE SECURITIES LAWS; OR (II) IN THE ABSENCE OF AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE ISSUER, THAT REGISTRATION IS NOT REQUIRED UNDER THE 1933 ACT OR; (III) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 UNDER THE 1933 ACT.
 

 

 10% CONVERTIBLE PROMISSORY NOTE
 

 MATURITY DATE OF OCTOBER 17, 2018  (THE “MATURITY DATE”)
 

 $103,000   OCTOBER 17, 2017  (THE “ISSUANCE DATE”)
 

 

 FOR VALUE RECEIVED, Spindle, Inc., a Nevada corporation (the “Company”) doing business in Mesa, Arizona, hereby promises to pay to the order of Mike Kelley, an accredited investor, or his assigns (the “Holder”), the principal amount of  One Hundred and Three Thousand Dollars ($103,000) (“Note”), on demand of the  Holder  at  any  time  on  or  after October 17, 2018 (the “Maturity Date”),  and to pay interest on the unpaid principal balance hereof at the rate of Ten  Percent (10%) per annum (the “Interest Rate”) commencing on the date hereof (the “Issuance Date”).
 

 1.
 Payments of Principal and Interest.
 

 a.
 Pre-Payment and Payment of Principal and Interest. The Company may pay this Note in full, together with any and all accrued and unpaid interest, plus any applicable pre-payment premium set forth herein and subject to the terms of this Section 1.a, at any time on or prior to the date which occurs 180 days after the Issuance Date hereof (the “Pre-payment Date”).
 

 

 1
 

 

 
 

 

 

 In the event the Note is not prepaid in full on or before the Pre-payment Date, it shall be deemed a “Pre-Payment Default” hereunder. Until the Ninetieth (90th) day after the Issuance Date the Company may pay the principal at a cash redemption premium of 120%, in addition to outstanding interest, without the Holder’s consent; from the 91st day to the One Hundred and Twentieth (120th) day after the Issuance Date, the Company may pay the principal at a cash redemption premium of 125%, in addition to outstanding interest, without the Holder’s consent; from the 121st day to the Pre-payment Date, the Company may pay the principal at a cash redemption premium of 130%, in addition to outstanding interest, without the Holder’s consent. After the Pre-payment Date up to the Maturity Date this Note shall have a cash redemption premium of 135% of the then outstanding principal amount of the Note, plus accrued interest and Default Interest, if any, which may only be paid by the Company upon Holder’s prior written consent. At any time on or after the Maturity Date, the Company may repay the then outstanding principal plus accrued interest and Default Interest (defined below), if any, to the Holder.
 

 b.
 Demand of Repayment. The principal and interest balance of this Note shall be paid to the Holder hereof on demand by the Holder at any time on or after the Maturity Date. The Default Amount (defined herein), if applicable, shall be paid to Holder hereof on demand by the Holder at any time such Default Amount becomes due and payable to Holder.
 

 c.
 Interest. This Note shall bear interest (“Interest”) at the rate of Ten  Percent  (10%)  per  annum from the Issuance Date until the same is paid, or otherwise converted in accordance with Section 2 below, in full and the Holder, at the Holder’s sole discretion, may include any accrued but unpaid Interest in the Conversion Amount. Interest shall commence accruing on the Issuance Date, shall be computed on the basis of a 365-day year and the actual number of days elapsed and shall accrue daily and, after the Maturity Date, compound quarterly. Upon an Event of Default, as defined in Section 10 below, the Interest Rate shall increase to Eighteen Percent (18%) per annum for so long as the Event of Default is continuing (“Default Interest”).
 

 

 

 2
 

 

 
 

 

 

 d.
 General Payment Provisions. This Note shall be paid in lawful money of the United States of America by check or wire transfer to such account as the Holder may from time to time designate by written notice to the Company in accordance with the provisions of this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a Business Day (as defined below), the same shall instead be due on the next succeeding day which is a Business Day and, in the case of any interest payment date which is not the date on which this Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining the amount of interest due on such date. For purposes of this Note, “Business Day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the State of Texas are authorized or required by law or executive order to remain closed.
 

 2.
 Conversion of Note. At any time after the Pre-payment Date, the Conversion Amount (see Paragraph 2(a)(i)) of this Note shall be convertible into shares of the Company’s common stock (the “Common Stock”) according to the terms and conditions set forth in this Paragraph 2.
 

 a.
 Certain Defined Terms. For purposes of this Note, the following terms shall have the following meanings:
 

 i.
 “Conversion Amount” means the sum of (a) the principal amount of this Note to be converted with respect to which this determination is being made, (b) Interest; and (c) Default Interest, if any, if so included at the Holder’s sole discretion.
 

 ii.
 “Conversion Price” means a 35% discount to the lowest trading price during the previous twenty (20) trading days to the date of a Conversion Notice.
 

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

 iv.
 “Shares” means the Shares of the Common Stock of the Company into which any balance on this Note may be converted upon submission of a “Conversion Notice” to the Company substantially in the form attached hereto as Exhibit 1.
 

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 b.
 Holder’s Conversion Rights. At any time after the Pre-payment Date, the Holder shall be entitled to convert all of the outstanding and unpaid principal and accrued interest of this Note into fully paid and non-assessable shares of Common Stock in accordance with the stated Conversion Price. 
 

 c.
 Fractional Shares. The Company shall not issue any fraction of a share of Common Stock upon any conversion; if such issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole share except in the event that rounding up would violate the conversion limitation set forth in section 2(b) above.
 

 d.
 Mechanics of Conversion. The conversion of this Note shall be conducted in the following manner:
 

 i.
 Holder’s Conversion Requirements. To convert this Note into shares of Common Stock on any date set forth in the Conversion Notice by the Holder (the “Conversion Date”), the Holder shall transmit by email, facsimile or otherwise deliver, for receipt on or prior to 11:59 p.m., Eastern Time, on such date or on the next business day, a copy of a fully executed notice of conversion in the form attached hereto as Exhibit 1 to the Company.
 

 ii.
 Company’s Response. Upon receipt by the Company of a copy of a Conversion Notice, the Company shall as soon as practicable, but in no event later than one (1) Business Day after receipt of such Conversion Notice, send, via email, facsimile or overnight courier, a confirmation of receipt of such Conversion Notice to such Holder indicating that the Company will process such Conversion Notice in accordance with the terms herein. Within two (2) Business Days after the date the Conversion Notice is delivered, the Company shall have  issued and electronically transferred the shares to the Broker indicated in the Conversion Notice; should the Company be unable to transfer the shares electronically, it shall, within two (2) Business Days after the date the Conversion Notice was delivered, have surrendered to an overnight courier for delivery the next day to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder, for the number of shares of Common Stock to which the Holder shall be entitled.
 

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 iii.
 Record Holder. The person or persons entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.
 

 iv.
 Timely Response by Company. Upon receipt by Company of a Conversion Notice, Company shall respond within one business day to Holder confirming the details of the Conversion, and provide within two business days the Shares requested in the Conversion Notice.
 

 v.
 Liquidated Damages for Delinquent Response. If the Company fails to deliver for whatever reason (including any neglect or failure by, e.g., the Company, its counsel or the transfer agent) to Holder the Shares as requested in a Conversion Notice within three (3) business days of the Conversion Date, the Company shall be deemed in “Default of Conversion.” Beginning on the fourth (4th) business day after the date of the Conversion Notice, after the Company is deemed in Default of Conversion, there shall accrue liquidated damages (the “Conversion Damages”) of $2,000 per day for each day after the third business day until delivery of the Shares is made, and such penalty will be added to the Note being converted (under the Company’s and Holder’s expectation and understanding that any penalty amounts will tack back to the Issuance Date of the Note). The Parties agree that, at the time of drafting of this Note, the Holder’s damages as to the delinquent response are incapable or difficult to estimate and that the liquidated damages called for is a reasonable forecast of just compensation.
 

 vi.
 Liquidated Damages for Inability to Issue Shares. If the Company fails to deliver Shares requested by a Conversion Notice due to an exhaustion of authorized and issuable common stock such that the Company must increase the number of shares of authorized Common Stock before the Shares requested may be issued to the Holder, the discount set forth in the Conversion Price will be increased by 5 percentage points (i.e. from 35% to 40%) for the Conversion Notice in question and all future Conversion Notices until the outstanding principal and interest of the Note is converted or paid in full. These liquidated damages shall not render the penalties prescribed by Paragraph 2(e)(v) void, and shall be applied in conjunction with Paragraph 2(e)(v) unless otherwise agreed to in writing by the Holder. 
 

 5
 

 

 
 

 

 The Parties agree that, at the time of drafting of this Note, the Holder’s damages as to the inability to issue shares are incapable or difficult to estimate and that the liquidated damages called for is a reasonable forecast of just compensation.
 

 vii.
 Rescindment of Conversion Notice. If: (i) the Company fails to respond to Holder within one business day from the date of delivery of a Conversion Notice confirming the details of the Conversion, (ii) the Company fails to provide the Shares requested in the Conversion Notice within three business days from the date of the delivery of the Conversion Notice, (iii) the Company is unable to issue the Shares requested in the Conversion Notice for any reason related to the Company's standing with the SEC or FINRA, or any action or inaction by the Company, (iv) if the Holder is informed that the Company does not have the authorized and issuable Shares available to satisfy the Conversion, or (v) if OTC Markets changes the Company's designation to 'Limited Information' (Yield), 'No Information' (Stop Sign), 'Caveat Emptor' (Skull and Crossbones), or 'OTC', 'Other OTC' or 'Grey Market' (Exclamation Mark Sign) on the day of or any day after the date of the Conversion Notice, the Holder maintains the option and sole discretion to rescind the Conversion Notice ("Rescindment") by delivering a notice of rescindment to the Company in the same manner that a Conversion Notice is required to be delivered to the Company pursuant to the terms of this Note.
 

 viii.
 Transfer Agent Fees and Legal Fees. The issuance of the certificates shall be without charge or expense to the Holder. The Company shall pay any and all Transfer Agent fees, legal fees, and advisory fees required for execution of this Note and processing of any Notice of Conversion, including but not limited to the cost of obtaining a legal opinion with regard to the Conversion. The Holder will deduct $5,000 from the principal amount that is advanced to the Company under this Note solely to cover the Holder’s legal fees in connection with the issuance of this Note. These fees do not make provision for or suffice to defray any legal fees incurred in collection or enforcement of the Note as described in Paragraph 13. All expenses incurred by Holder, for the issuance and clearing of the Common Stock into which this Note is convertible into, shall immediately and automatically be added to the balance of the Note at such time as the expenses are incurred by Holder.
 

 

 6
 

 

 
 

 

 

 ix.
 Conversion Right Unconditional. If the Holder shall provide a Notice of Conversion as provided herein, the Company’s obligations to deliver Common Stock shall be absolute and unconditional, irrespective of any claim of setoff, counterclaim, recoupment, or alleged breach by the Holder of any obligation to the Company.
 

 3.
 Other Rights of Holder: Reorganization, Reclassification, Consolidation, Merger or Sale. Any recapitalization, reorganization, reclassification, consolidation, merger, sale of all or substantially all of the Company’s assets to another Person or other transaction which is effected in such a way that holders of Common Stock are entitled to receive (either directly or upon subsequent liquidation) stock, securities, cash or other assets with respect to or in exchange for Common Stock is referred to herein as “Organic Change.” Prior to the consummation of any (i) Organic Change or (ii) other Organic Change following which the Company is not a surviving entity, the Company will secure from the Person purchasing such assets or the successor resulting from such Organic Change (in each case, the “Acquiring Entity”) a written agreement (in form and substance reasonably satisfactory to the Holder) to deliver to Holder in exchange for this Note, a security of the Acquiring Entity evidenced by a written instrument substantially similar in form and substance to this Note, and reasonably satisfactory to the Holder. Prior to the consummation of any other Organic Change, the Company shall make appropriate provision (in form and substance reasonably satisfactory to the Holder) to ensure that the Holder will thereafter have the right to acquire and receive in lieu of or in addition to (as the case may be) the shares of Common Stock immediately theretofore acquirable and receivable upon the conversion of the Note, such shares of stock, securities, cash or other assets that would have been issued or payable in such Organic Change with respect to or in exchange for the number of shares of Common Stock which would have been acquirable and receivable upon the conversion of the Note as of the date of such Organic Change (without taking into account any limitations or restrictions on the convertibility of the Note set forth in Section 2(b) or otherwise). All provisions of this Note must be included to the satisfaction of Holder in any new Note created pursuant to this section.
 

 4.
 Representations and Warranties of the Company. In connection with the transactions provided for herein, the Company hereby represents and warrants to the Holder the following:
 

 

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 a.
 Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws of the state of its incorporation and has all requisite corporate power and authority to carry on its business as now conducted. The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would have a material adverse effect on its business or properties.
 

 b.
 Authorization. All corporate action has been taken on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution and delivery of this Agreement. The Company has taken all corporate action required to make all of the obligations of the Company reflected in the provisions of this Agreement, valid and enforceable obligations. The shares of capital stock issuable upon conversion of the Note have been authorized or will be authorized prior to the issuance of such shares.
 

 c.
 Fiduciary Obligations. The Company hereby represents that it intends to use the proceeds of the Note primarily for the operations of its business and not for any personal, family, or household purpose. The Company hereby represents that its board of directors, in the exercise of its fiduciary duty, has approved the execution of this Agreement based upon a reasonable belief that the proceeds of the Note provided for herein is appropriate for the Company after reasonable inquiry concerning its financial objectives and financial situation.
 

 5.
 Reservation of Shares. The Company shall at all times, so long as any principal amount of the Note is outstanding, reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the conversion of  the Note, eight times the number of shares of Common Stock as shall at all times be sufficient to effect the conversion of all of the principal amount, plus Interest and Default Interest, if any, of the Note then outstanding (“Share Reserve”).
 

 6.
 Voting Rights. The Holder of this Note shall have no voting rights as a note holder, except as required by law, however, upon the conversion of any portion of this Note into Common Stock, Holder shall have the same voting rights as all other Common Stock holders with respect to such shares of Common Stock then owned by Holder.
 

 

 

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 7.
 Reissuance of Note. In the event of a conversion or redemption pursuant to this Note of less than all of the Conversion Amount represented by this Note, the Company shall promptly cause to be issued and delivered to the Holder, upon tender by the Holder of the Note converted or redeemed, a new note of like tenor representing the remaining principal amount of this Note which has not been so converted or redeemed and which is in substantially the same form as this Note, as set forth above.
 

 8.
 Default and Remedies.
 

 a.
 Event of Default. For purposes of this Note, an  “Event of Default”  shall occur upon:
 

 i.
 the Company’s default in the payment of the outstanding principal, Interest or Default Interest of this Note when due, whether at Maturity, acceleration or otherwise;
 

 ii.
 the occurrence of a Default of Conversion as set forth in Section 2(e)(v);
 

 iii.
 the failure by the Company for ten (10) days after notice to it to comply with any material provision of this Note not included in this Section 10(a);
 

 iv.
 the Company’s breach of any covenants, warranties, or representations made by the Company herein;
 

 v.
 the default by the Company in any Other Agreement entered into by and between the Company and Holder, for purposes hereof “Other Agreement” shall mean, collectively, all agreements and instruments between, among or by: (1) the Company, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including without limitation, promissory notes;
 

 vi.
 the cessation of operations of the Company or a material subsidiary;
 

 vii.
 the Company pursuant to or within the meaning of any Bankruptcy Law; (a) commences a voluntary case; (b) consents to the entry of an order for relief against it in an involuntary case; (c) consents to the appointment of a Custodian of it or for all or substantially all of its property; (d) makes a general assignment for the benefit of its creditors; or (e) admits in writing that it is generally unable to pay its debts as the same become due;
 

 9
 

 

 
 

 

 

 viii.
 any court of competent jurisdiction entering an order or decree under any Bankruptcy Law that: (a) is for relief against the Company in an involuntary case; (b) appoints a Custodian of the Company or for all or substantially all of its property; or (c) orders the liquidation of the Company or any subsidiary, and the order or decree remains unstayed and in effect for thirty (30) days;
 

 ix.
 the Company files a Form 15 with the Securities and Exchange Commission;
 

 x.
 the Company’s failure to timely file all reports required to be filed by it with the Securities and Exchange Commission;
 

 xi.
 the Company’s failure to timely file all reports required to be filed by it with OTC Markets to remain a “Current Information” designated company;
 

 xii.
 the Company’s Common Stock is reported as “No Inside” by OTC Markets at any time while any principal, Interest or Default Interest under the Note remains outstanding;
 

 xiii.
 the Company’s failure to maintain the required Share Reserve;
 

 xiv.
 the Company directs its transfer agent not to transfer, or delays, impairs, 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 Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor its obligations pursuant to a Conversion Notice submitted by the Holder) and any such failure shall continue uncured for three (3) Business Days after the Conversion Notice has been delivered to the Company by Holder;
 

 xv.
 the Company’s failure to remain current in its billing obligations with its transfer agent and such delinquency causes the transfer agent to refuse to issue Shares to Holder pursuant to a Conversion Notice;
 

 10
 

 

 
 

 

 

 xvi.
 the Company effectuates a reverse split of its Common Stock and fails to provide twenty (20) days’ prior written notice to Holder of its intention to do so; or
 

 xvii.
 OTC Markets changes the Company's designation to 'No Information' (Stop Sign), 'Caveat Emptor' (Skull and Crossbones), or 'OTC', 'Other OTC' or 'Grey Market' (Exclamation Mark Sign).
 

 The Term “Bankruptcy Law” means Title 11, U.S. Code, or any similar Federal or State Law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.
 

 b.
 Remedies. If an Event of Default occurs, the Holder may in its sole discretion determine to request immediate repayment of all or any portion of the Note that remains outstanding; at such time the Company will be required to pay the Holder the Default Amount (defined herein) in cash. For purposes hereof, the “Default Amount” shall mean: the product of (A) the then outstanding principal amount of the Note, plus accrued Interest and Default Interest, divided by (B) the Conversion Price as determined on the Issuance Date, multiplied by (C) the highest price at which the Common Stock traded at any time between the Issuance Date and the date of the Event of Default. If the Company fails to pay the Default Amount within five (5) Business Days of written notice that such amount is due and payable, then Holder shall have the right at any time, so long as the Company remains in default (and so long and to the extent there are a  sufficient number of authorized but unissued shares), to require the Company, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Company equal to the Default Amount divided by the Conversion Price then in effect.
 

 9.
 Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Company and the Holder.
 

 

 

 11
 

 

 
 

 

 

 10.
 Lost or Stolen Note. Upon receipt by the Company of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of an indemnification undertaking by the Holder to the Company in a form reasonably acceptable to the Company and, in the case of mutilation, upon surrender and cancellation of the Note, the Company shall execute and deliver a new Note of like tenor and date and in substantially the same form as this Note; provided, however, the Company shall not be obligated to re-issue a Note if the Holder contemporaneously requests the Company to convert  such remaining principal amount, plus accrued Interest and Default Interest, if any, into Common Stock.
 

 11.
 Payment of Collection, Enforcement and Other Costs. If: (i) this Note is placed in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding; or (ii) an attorney is retained to represent the Holder of this Note in any bankruptcy, reorganization, receivership or other proceedings affecting creditors’ rights and involving a claim under this Note, then the Company shall pay to the Holder all reasonable attorneys’ fees, costs and expenses incurred in  connection therewith, in addition to all other amounts due hereunder.
 

 12.
 Cancellation. After all principal, accrued Interest and Default Interest, if any, at any time owed on this Note has been paid in full or otherwise converted in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation and shall not be reissued.
 

 13.
 Waiver of Notice. To the extent permitted by law, the Company hereby waives demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note.
 

 14.
 Governing Law. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Note shall be governed by, the laws of the State of Texas, without giving effect to provisions thereof regarding conflict of laws. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the state and federal courts sitting in Texas for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not  to assert in any suit, action or proceeding,  any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.
 

 12
 

 

 
 

 

 Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by sending, through certified mail or overnight courier, a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
 

 15.
 Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative and in addition to all other remedies available under this Note, at law or in equity (including a decree of specific performance and/or other injunctive relief), and no remedy contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy and nothing herein shall limit the Holder’s right to pursue actual damages for any failure by the Company to comply with the terms of this Note. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder thereof and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof).
 

 16.
 Specific Shall Not Limit General; Construction. No specific provision contained in this Note shall limit or modify any more general provision contained herein. This Note shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any person as the drafter hereof.
 

 17.
 Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude further exercise thereof or of any other right, power or privilege.
 

 18.
 Partial Payment. In the event of partial payment by the Holder, the principal sum due to the Holder shall be prorated based on the consideration actually paid by the Holder such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this Note, with the exception of any OID contemplated herein.
 

 13
 

 

 
 

 

 

 19.
 Entire Agreement. This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the subjects herein. None of the terms of this Agreement can be waived or modified, except by an express agreement signed by  all Parties hereto.
 

 20.
 Additional Representations and Warranties. The Company expressly acknowledges that the Holder, including but not limited to its officer, directors, employees, agents, and affiliates, have not made any representation or warranty to it outside the terms of this Agreement. The Company further acknowledges that there have been no representations or warranties about future financing or subsequent transactions between the parties.
 

 21.
 Notices. All notices and other communications given or made to the Company pursuant hereto shall be in writing (including facsimile or similar electronic transmissions) and shall be deemed effectively given: (i) upon personal delivery, (ii) when sent by electronic mail or facsimile, as deemed received by the close of business on the date sent, (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid or (iv) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery. All communications shall be sent either by email, or fax, or to the email address or facsimile number set forth on the signature page hereto. The physical address, email address, and phone number provided on the signature page hereto shall be considered valid pursuant to the above stipulations; should the Company’s contact information change from that listed on the signature page, it is incumbent on the Company to inform the Holder.
 

 22.
 Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the rest of the Agreement shall be enforceable in accordance with its terms.
 

 23.
 Usury. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law. The Company covenants (to the extent that it may lawfully do so) that it will not seek to claim or take advantage of any law that would prohibit or forgive the Company from paying all or a portion of the principal, Interest or Default Interest on this Note.
 

 24.
 Successors and Assigns. This Agreement shall be binding upon all successors and assigns hereto.
 

 - SIGNATURE PAGE TO FOLLOW -
 

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 IN WITNESS WHEREOF, the Company has caused this Note to be signed by its CEO, on and as of the Issuance Date.
 

 

 

 COMPANY
 

 

 By: /s/ Jack A. Scott
 

 Name: Jack A. Scott
 

 Title: Interim CEO
 

 

 

 

 HOLDER
 

 

 /s/ Mike Kelley
 Mike Kelley
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 15
 

 

 
 

 

 

 Exhibit 1
 Conversion Notice
 

 Reference is made to the 10% Convertible Note issued by Spindle, Inc. (the "Note"), dated October 17, 2017 in the principal amount of $103,000 with 10% interest. This note currently holds a principal balance of $103,000. The features of conversion stipulate a Conversion Price equal to a 45% discount to the lowest trading price during the previous twenty (20) trading days to the date of a Conversion Notice, pursuant to the provisions of Section 2(a)(ii) in the Note.
 

 In accordance with and pursuant to the Note, the undersigned hereby elects to convert $ _____ of the principal/interest balance of the Note, indicated below into shares of Common Stock (the "Common Stock"), of the Company, by tendering the Note specified as of the date specified below.
 

 Date of Conversion: _______
 

 Please confirm the following information: Conversion Amount: $  ___________________
 Conversion Price: $ __________ (_____% discount from $ _____________)
 

 Number of Shares of Common Stock to be issued: ________________________________
 

 PLEASE BE ADVISED, pursuant to Section 2(e)(ii) of the Note, “Upon receipt by the Company of a copy of the Conversion Notice, the Company shall as soon as practicable, but in no event later than one (1) Business Day after receipt of such Conversion Notice, SEND, VIA EMAIL, FACSIMILE OR OVERNIGHT COURIER, A CONFIRMATION OF RECEIPT OF SUCH CONVERSION NOTICE TO SUCH HOLDER INDICATING THAT THE COMPANY WILL PROCESS SUCH CONVERSION NOTICE in accordance with the terms herein. Within two (2) Business Days after the date of the Conversion Confirmation, the Company shall have issued and electronically transferred the shares to the Broker indicated in the Conversion Notice; should the Company be unable to transfer the shares electronically, they shall, within two (2) Business Days after the date of the Conversion Confirmation, have surrendered to FedEx for delivery the next day to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder, for the number of shares of Common Stock to which the Holder shall be entitled.”
 

 

 Signature:
 

 By: __________________________
 Mike Kelley
 

 

 

 " = "1" "" "" 9417801.2/SP/15556/1645/101617

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