Document:

Exhibit 10.40

 

PUBLIC HEALTH SERVICE

 

PATENT LICENSE AGREEMENT —EXCLUSIVE

 

COVER PAGE

 

For PHS internal use only:

 

License Number: L-035-2012/0

 

License Application Number: A-216-2008

 

Serial Number(s) of Licensed Patent(s) or Patent Application(s):
See Appendix A

 

Licensee:
KineMed Inc.

 

Cooperative Research and Development Agreement (CRADA)
Number (if a subject invention): NA

 

Additional Remarks: None

 

Public Benefit(s): Development and commercialization
of this technology will improve the public health by providing prevention, treatment and mitigation of the following cardiovascular
diseases: peripheral artery disease (PAD), intermittent claudication, coronary artery disease (CAD), dyslipidemia, angina pectoris,
myocardial infarction, atherosclerosis, coronary plaque stabilization, carotid atherosclerosis, congestive heart failure, cerebral
stroke, post-ischemic reperfusion and inflammation of the cardiovascular system. Development and commercialization of this technology
will also improve the public health by providing treatment of cardiovascular related peri and post-surgical inflammation associated
with transplants.

 

This Patent License Agreement, hereinafter referred to as the
“Agreement”, consists of this Cover Page, an attached Agreement, a Signature Page, Appendix A
(List of Patent(s) or Patent Application(s)), Appendix B (Fields of Use and Territory), Appendix C (Royalties), Appendix D (Benchmarks
and Performance), Appendix E (Commercial Development Plan), Appendix F (Example Royalty Report), and Appendix G (Royalty Payment
Options). The Parties to this Agreement are:

 

		1)	The National Institutes of Health (“NIH”) or the Food and Drug Administration (“FDA”),
hereinafter singly or collectively referred to as “PHS”,
agencies of the United States Public Health Service within the Department of Health and Human Services (“HHS”);
and

 

		2)	The person, corporation, or institution identified above or on the Signature Page, having offices at the address indicated
on the Signature Page, hereinafter referred to as “Licensee”.

 

    	 

    	 

    

 

PHS
and Licensee agree as follows:

 

		1.	BACKGROUND

 

		1.1	In the course of conducting biomedical and behavioral research, PHS
investigators made inventions that may have commercial applicability.

 

		1.2	By assignment of rights from PHS employees and other
inventors, HHS, on behalf of the Government, owns intellectual property rights claimed in any United States or foreign patent
applications or patents corresponding to the assigned inventions. HHS also owns any tangible embodiments of these inventions
actually reduced to practice by PHS.

 

		1.3	The Secretary of HHS has delegated to PHS
the authority to enter into this Agreement for the licensing of rights to these inventions.

 

		1.4	PHS desires to transfer these inventions to the private sector through commercialization licenses to facilitate the
commercial development of products and processes for public use and benefit.

 

		1.5	Licensee desires to acquire commercialization
rights to certain of these inventions in order to develop processes, methods, or marketable products for public use and benefit.

 

		2.	DEFINITIONS

 

		2.1	“Affiliate(s)” means a corporation or other business entity, which directly or indirectly is controlled
by or controls, or is under common control with Licensee.
For this purpose, the term “control” shall mean ownership of more than fifty percent (50%) of the voting stock
or other ownership interest of the corporation or other business entity, or the power to elect or appoint more than fifty percent
(50%) of the members of the governing body of the corporation or other business entity.

 

		2.2	“Benchmarks” mean the performance milestones that are set forth in Appendix D.

 

		2.3	“Commercial Development Plan” means the written commercialization plan attached as Appendix E.

 

		2.4	“First Commercial Sale” means the initial transfer by or on behalf of Licensee
or its sublicensees of Licensed Products or the initial practice of a Licensed Process by or on behalf of Licensee
or its sublicensees in exchange for cash or some equivalent to which value can be assigned for the purpose of determining Net
Sales.

 

		2.5	“Government” means the Government of the United States of America.

 

		2.6	“Licensed Fields of Use” means the fields of use identified in Appendix B.

 

		2.7	“Licensed Patent Rights” shall mean:

 

		(a)	Patent applications (including provisional patent applications and PCT patent applications) or patents listed in Appendix A,
all divisions and continuations of these applications, all patents issuing from these applications, divisions, and continuations,
and any reissues, reexaminations, and extensions of these patents;

 

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		(b)	to the extent that the following contain one or more claims directed to the invention or inventions disclosed in 2.7(a):

 

		(i)	continuations-in-part of 2.7(a);

 

		(ii)	all divisions and continuations of these continuations-in-part;

 

		(iii)	all patents issuing from these continuations-in-part, divisions, and continuations;

 

		(iv)	priority patent application(s) of 2.7(a); and

 

		(v)	any reissues, reexaminations, and extensions of these patents;

 

		(c)	to the extent that the following contain one or more claims directed to the invention or inventions disclosed in 2.7(a): all
counterpart foreign and U.S. patent applications and patents to 2.7(a) and 2.7(b), including those listed in Appendix A; and

 

		(d)	Licensed Patent Rights shall not include
2.7(b) or 2.7(c) to the extent that they contain one or more claims directed to new matter which is not the subject matter disclosed
in 2.7(a).

 

		2.8	“Licensed Processes” means processes which, in the course of being practiced, would be within the
scope of one or more claims of the Licensed Patent Rights
that have not been held unpatentable, invalid or unenforceable by an unappealed or unappealable judgment of a court of competent
jurisdiction.

 

		2.9	“Licensed Products” means tangible materials which, in the course of manufacture, use, sale, or importation,
would be within the scope of one or more claims of the Licensed Patent
Rights that have not been held unpatentable, invalid or unenforceable by an unappealed or unappealable judgment
of a court of competent jurisdiction.

 

		2.10	“Licensed Territory” means the geographical
area identified in Appendix B.

 

		2.11	“Net Sales” means the total gross receipts for sales of Licensed Products or practice of Licensed
Processes by or on behalf of Licensee or its
sublicensees, and from leasing, renting, or otherwise making Licensed Products available to others without sale or other
dispositions, whether invoiced or not, less returns and allowances, packing costs, insurance costs, freight out, taxes or excise
duties imposed on the transaction (if separately invoiced), and wholesaler and cash discounts in amounts customary in the trade
to the extent actually granted. No deductions shall be made for commissions paid to individuals, whether they are with independent
sales agencies or regularly employed by Licensee, or sublicensees,
and on its payroll, or for the cost of collections.

 

		2.12	“Practical Application” means to manufacture in the case of a composition or product, to practice
in the case of a process or method, or to operate in the case of a machine or system; and in each case, under these conditions
as to establish that the invention is being utilized and that its benefits are to the extent permitted by law or Government
regulations available to the public on reasonable terms.

 

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		2.13	“Research License” means a nontransferable, nonexclusive license to make and to use Licensed Products
or Licensed Processes as defined by the Licensed Patent Rights
for purposes of research and not for purposes of commercial manufacture or distribution or in lieu of purchase.

 

		3.	GRANT OF RIGHTS

 

		3.1	PHS hereby grants and Licensee
accepts, subject to the terms and conditions of this Agreement, an exclusive license under the Licensed
Patent Rights in the Licensed Territory to make
and have made, to use and have used, to sell and have sold, to offer to sell, and to import any Licensed Products in the
Licensed Fields of Use and to practice and have practiced any Licensed Processes in the Licensed Fields of Use.

 

		3.2	This Agreement confers no license or rights by implication, estoppel, or otherwise under any patent applications or
patents of PHS other than the Licensed
Patent Rights regardless of whether these patents are dominant or subordinate to the Licensed
Patent Rights.

 

		4.	SUBLICENSING

 

		4.1	Upon written approval, which shall include prior review of any sublicense agreement by PHS
and which shall not be unreasonably withheld, Licensee may
enter into sublicensing agreements under the Licensed Patent Rights.

 

		4.2	Licensee agrees that any sublicenses granted by it shall
provide that the obligations to PHS of Paragraphs 5.1-5.4,
8.1, 10.1, 10.2, 12.5, and 13.8-13.10 of this Agreement shall be binding upon the sublicensee as if it were a party to this
Agreement. Licensee further agrees to attach copies of these
Paragraphs to all sublicense agreements.

 

		4.3	Any sublicenses granted by Licensee shall provide for
the termination of the sublicense, or the conversion to a license directly between the sublicensees and PHS,
at the option of the sublicensee, upon termination of this Agreement under Article 13. This conversion is subject to PHS
approval and contingent upon acceptance by the sublicensee of the remaining provisions of this Agreement.

 

		4.4	Licensee agrees to forward to PHS
a complete copy of each fully executed sublicense agreement postmarked within thirty (30) days of the execution of the agreement.
To the extent permitted by law, PHS agrees to maintain each
sublicense agreement in confidence.

 

		5.	STATUTORY AND PHS REQUIREMENTS AND RESERVED GOVERNMENT
RIGHTS

 

		5.1	(a)             PHS
reserves on behalf of the Government an irrevocable, nonexclusive, nontransferable, royalty-free license for
the practice of all inventions licensed under the Licensed Patent
Rights throughout the world by or on behalf of the Government and on behalf of any foreign government
or international organization pursuant to any existing or future treaty or agreement to which the Government is a signatory.
Prior to the First Commercial Sale, Licensee agrees to
provide PHS with reasonable quantities of Licensed Products
or materials made through the Licensed Processes for PHS
research use; and

 

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		(b)	In the event that the Licensed Patent Rights are
Subject Inventions made under a Cooperative Research and Development Agreement (“CRADA”), Licensee
grants to the Government, pursuant to 15 U.S.C. §3710a(b)(1)(A), a nonexclusive, nontransferable, irrevocable,
paid-up license to practice Licensed Patent Rights or
have Licensed Patent Rights practiced throughout
the world by or on behalf of the Government. In the exercise of this license, the Government shall not publicly disclose
trade secrets or commercial or financial information that is privileged or confidential within the meaning of 5 U.S.C. §5.552(b)(4)
or which would be considered as such if it had been obtained from a non-Federal party. Prior to the First Commercial Sale, Licensee
agrees to provide PHS reasonable quantities of
Licensed Products or materials made through the Licensed Processes for PHS
research use.

 

		5.2	Licensee agrees that products used or sold in
the United States embodying Licensed Products or produced through use of Licensed Processes shall be manufactured
substantially in the United States, unless a written waiver is obtained in advance from PHS.

 

		5.3	Licensee acknowledges that PHS
may enter into future CRADAs under the Federal Technology Transfer Act of 1986 that relate to the subject matter
of this Agreement. Licensee agrees not to unreasonably deny
requests for a Research License from future collaborators with PHS
when acquiring these rights is necessary in order to make a CRADA project feasible. Licensee
may request an opportunity to join as a party to the proposed CRADA.

 

		5.4	(a)             In addition to the reserved license of Paragraph
5.1, PBS reserves the right to grant Research Licenses directly or to require Licensee
to grant Research Licenses on reasonable terms. The purpose of these Research Licenses is to encourage basic
research, whether conducted at an academic or corporate facility. In order to safeguard the Licensed
Patent Rights, however, PHS shall consult with
Licensee before granting to commercial entities a Research
License or providing to them research samples of materials made through the Licensed Processes; and

 

		(b)	In exceptional circumstances, and in the event that Licensed Patent
Rights are Subject Inventions made under a CRADA, the Government, pursuant to 15 U.S.C. §3710a(b)(1)(3),
retains the right to require the Licensee to grant to a
responsible applicant a nonexclusive, partially exclusive, or exclusive sublicense to use the Licensed
Patent Rights in the Licensed Field of Use on terms that are reasonable under the circumstances, or if Licensee
fails to grant this license, the Government retains the right to grant the license itself. The exercise of these rights
by the Government shall only be in exceptional circumstances and only if the Government determines:

 

		(i)	the action is necessary to meet health or safety needs that are not reasonably satisfied by Licensee;

 

		(ii)	the action is necessary to meet requirements for public use specified by Federal regulations, and these requirements are not
reasonably satisfied by the Licensee; or

 

		(iii)	the Licensee has failed to comply with an agreement
containing provisions described in 15 U.S.C. §3710a(c)(4)(B); and

 

The determination made by the Government under
this Paragraph 5A is subject to administrative appeal and judicial review under 35 U.S.C. §203(b).

 

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		6.	ROYALTIES AND REIMBURSEMENT

 

		6.1	Licensee agrees to pay PHS
a noncreditable, nonrefundable license issue royalty as set forth in Appendix C.

 

		6.2	Licensee agrees to pay PHS
a nonrefundable minimum annual royalty as set forth in Appendix C.

 

		6.3	Licensee agrees to pay PHS
earned royalties as set forth in Appendix C.

 

		6.4	Licensee agrees to pay PHS
benchmark royalties as set forth in Appendix C.

 

		6.5	Licensee agrees to pay PHS
sublicensing royalties as set forth in Appendix C.

 

		6.6	A patent or patent application licensed under this Agreement shall cease to fall within the Licensed
Patent Rights for the purpose of computing earned royalty payments in any given country on the earliest of the
dates that:

 

		(a)	the application has been abandoned and not continued;

 

		(b)	the patent expires or irrevocably lapses, or

 

		(c)	the patent has been held to be invalid or unenforceable by an unappealed or unappealable decision of a court of competent jurisdiction
or administrative agency.

 

		6.7	No multiple royalties shall be payable because any Licensed Products or Licensed Processes are covered by more
than one of the Licensed Patent Rights.

 

		6.8	On sales of Licensed Products by Licensee to
sublicensees or on sales made in other than an arms-length transaction, the value of the Net Sales attributed under this
Article 6 to this transaction shall be that which would have been received in an arms-length transaction, based on sales of like
quantity and quality products on or about the time of this transaction.

 

		6.9	With regard to unreimbursed expenses associated with the preparation, filing, prosecution, and maintenance of all patent applications
and patents included within the Licensed Patent Rights
and paid by PHS prior to the effective date of
this Agreement, Licensee shall pay PHS,
as an additional royalty, within sixty (60) days of PHS'
submission of a statement and request for payment to Licensee,
an amount equivalent to these unreimbursed expenses previously paid by PHS.

 

		6.10	With regard to unreimbursed expenses associated with the preparation, filing, prosecution, and maintenance of all patent applications
and patents included within the Licensed Patent Rights
and paid by PHS on or after the effective date
of this Agreement, PHS, at its sole option, may require
Licensee:

 

		(a)	to pay PHS on an annual basis, within
sixty (60) days of PHS' submission of a statement
and request for payment, a royalty amount equivalent to these unreimbursed expenses paid during the previous calendar year(s);

 

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		(b)	to pay these unreimbursed expenses directly to the law firm employed by PHS
to handle these functions. However, in this event, PHS and
not Licensee shall be the client of the law firm; or

 

		(c)	in limited circumstances, Licensee may be given the
right to assume responsibility for the preparation, filing, prosecution, or maintenance of any patent application or patent included
with the Licensed Patent Rights. In that event, Licensee
shall directly pay the attorneys or agents engaged to prepare, file, prosecute, or maintain these patent applications or patents
and shall provide PHS with copies of each invoice associated
with these services as well as documentation that these invoices have been paid.

 

		6.11	PHS agrees, upon written request, to provide Licensee
with summaries of patent prosecution invoices for which PHS
has requested payment from the Licensee under Paragraphs
6.9 and 6.10. Licensee agrees that all information provided
by PHS related to patent prosecution costs shall be treated
as confidential commercial information and shall not be released to a third party except as required by law or a court of competent
jurisdiction.

 

		6.12	Licensee may elect to surrender its rights in any country
of the Licensed Territory under any of the Licensed
Patent Rights upon ninety (90) days written notice to PHS
and owe no payment obligation under Paragraph 6.10 for patent-related expenses paid in that country after ninety (90) days of the
effective date of the written notice.

 

		7.	PATENT FILING, PROSECUTION, AND MAINTENANCE

 

		7.1	Except as otherwise provided in this Article 7, PHS
agrees to take responsibility for, but to consult with, the Licensee
in the preparation, filing, prosecution, and maintenance of any and all patent applications or patents included in the Licensed
Patent Rights and shall furnish copies of relevant patent-related documents to Licensee.

 

		7.2	Upon PHS' written request, Licensee
shall assume the responsibility for the preparation, filing, prosecution, and maintenance of any and all patent applications or
patents included in the Licensed Patent Rights and
shall, on an ongoing basis, promptly furnish copies of all patent-related documents to PHS.
In this event, Licensee shall, subject to the prior
approval of PHS, select registered patent attorneys
or patent agents to provide these services on behalf of Licensee
and PHS. PHS
shall provide appropriate powers of attorney and other documents necessary to undertake this action to the patent attorneys
or patent agents providing these services. Licensee and
its attorneys or agents shall consult with PHS in all aspects
of the preparation, filing, prosecution and maintenance of patent applications and patents included within the Licensed
Patent Rights and shall provide PHS
sufficient opportunity to comment on any document that Licensee
intends to file or to cause to be filed with the relevant intellectual property or patent office.

 

		7.3	At any time, PHS may provide Licensee
with written notice that PHS wishes to assume control
of the preparation, filing, prosecution, and maintenance of any and all patent applications or patents included in the Licensed
Patent Rights. If PHS elects to
reassume these responsibilities, Licensee agrees to cooperate
fully with PHS, its attorneys, and agents in the preparation,
filing, prosecution, and maintenance of any and all patent applications or patents included in the Licensed
Patent Rights and to provide PHS with
complete copies of any and all documents or other materials that PHS
deems necessary to undertake such responsibilities. Licensee
shall be responsible for all costs associated with transferring patent prosecution responsibilities to an attorney or agent of
PHS' choice.

 

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		7.4	Each party shall promptly inform the other as to all matters that come to its attention that may affect the preparation, filing,
prosecution, or maintenance of the Licensed Patent Rights
and permit each other to provide comments and suggestions with respect to the preparation, filing, prosecution, and maintenance
of Licensed Patent Rights, which comments and suggestions
shall be considered by the other party.

 

		8.	RECORD KEEPING

 

		8.1	Licensee agrees to keep accurate and correct
records of Licensed Products made, used, sold, or imported and Licensed Processes practiced under this Agreement
appropriate to determine the amount of royalties due PHS.
These records shall be retained for at least five (5) years following a given reporting period and shall be available during
normal business hours for inspection, at the expense of PHS,
by an accountant or other designated auditor selected by PHS
for the sole purpose of verifying reports and royalty payments hereunder. The accountant or auditor shall only disclose to
PHS information relating to the accuracy of reports
and royalty payments made under this Agreement. If an inspection shows an underreporting or underpayment in excess of five percent
(5%) for any twelve (12) month period, then Licensee shall
reimburse PHS for the cost of the inspection at the
time Licensee pays the unreported royalties, including
any additional royalties as required by Paragraph 9.8. All royalty payments required under this Paragraph shall be due within sixty
(60) days of the date PHS provides Licensee
notice of the payment due.

 

		8.2	Licensee agrees to have an audit of sales and
royalties conducted by an independent auditor at least every two (2) years if annual sales of the Licensed Products or Licensed
Processes are over two (2) million dollars. The audit shall address, at a minimum, the amount of gross sales by or on behalf
of Licensee during the audit period, terms of the license
as to percentage or fixed royalty to be remitted to the Government, the amount of royalties owed to the Government under
this Agreement, and whether the royalties owed have been paid to the Government and is reflected in the records of the
Licensee. The audit shall also indicate the PHS
license number, product, and the time period being audited. A report certified by the auditor shall be submitted promptly by
the auditor directly to PHS on completion. Licensee
shall pay for the entire cost of the audit.

 

		9.	REPORTS ON PROGRESS, BENCHMARKS, SALES, AND PAYMENTS

 

		9.1	Prior to signing this Agreement, Licensee has provided
PHS with the Commercial Development Plan in Appendix
E, under which Licensee intends to bring the subject
matter of the Licensed Patent Rights to the point
of Practical Application. This Commercial Development Plan is hereby incorporated by reference into this Agreement.
Based on this plan, performance Benchmarks are determined as specified in Appendix D.

 

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		9.2	Licensee shall provide written annual reports on its
product development progress or efforts to commercialize under the Commercial Development Plan for each of the Licensed
Fields of Use within sixty (60) days after December 31 of each calendar year. These progress reports shall include, but not
be limited to: progress on research and development, status of applications for regulatory approvals, establishment of manufacturing
sites for Licensed Product(s), and status of sublicensing, marketing, importing, and sales during the preceding calendar
year, as well as, plans for the present calendar year. PHS
also encourages these reports to include information on any of Licensee's
public service activities that relate to the Licensed Patent Rights.
If reported progress differs from that projected in the Commercial Development Plan and Benchmarks, Licensee
shall explain the reasons for these differences. In the annual report, Licensee
may propose amendments to the Commercial Development Plan, acceptance of which by PHS
may not be denied unreasonably. Licensee agrees
to provide any additional information reasonably required by PHS
to evaluate Licensee's performance under this Agreement.
Licensee may amend the Benchmarks at any time upon written
approval by PHS. PHS
shall not unreasonably withhold approval of any request of Licensee
to extend the time periods of this schedule if the request is supported by a reasonable showing by Licensee
of diligence in its performance under the Commercial Development Plan and toward bringing the Licensed Products to
the point of Practical Application as defined in 37 C.F.R.. §404.3(d).
Licensee shall amend the Commercial Development Plan
and Benchmarks at the request of PHS to
address any Licensed Fields of Use not specifically addressed in the plan originally submitted.

 

		9.3	Licensee shall report to PHS
the dates for achieving Benchmarks specified in Appendix D and the First Commercial Sale in each country in the
Licensed Territory within thirty (30) days of such
occurrences.

 

		9.4	Licensee shall submit to PHS,
within sixty (60) days after each calendar half-year ending June 30 and December 31, a royalty report, as described in the
example in Appendix F, setting forth for the preceding half-year period the amount of the Licensed Products sold or Licensed
Processes practiced by or on behalf of Licensee in each
country within the Licensed Territory, the Net
Sales, and the amount of royalty accordingly due. With each royalty report, Licensee
shall submit payment of earned royalties due. If no earned royalties are due to PHS
for any reporting period, the written report shall so state. The royalty report shall be certified as correct by an authorized
officer of Licensee and shall include a detailed listing
of all deductions made under Paragraph 2.11 to determine Net Sales made under Article 6 to determine royalties due. The royalty
report shall also identify the site of manufacture for Licensed Product(s) sold in the United States.

 

		9.5	Licensee agrees to forward semi-annually to PHS
a copy of these reports received by Licensee from its
sublicensees during the preceding half-year period as shall be pertinent to a royalty accounting to PHS
by Licensee for activities under the sublicense.

 

		9.6	Royalties due under Article 6 shall be paid in U.S. dollars and payment options are listed in Appendix G. For conversion of
foreign currency to U.S. dollars, the conversion rate shall be the New York foreign exchange rate quoted in The Wall Street
Journal on the day that the payment is due. Any loss of exchange, value, taxes, or other expenses incurred in the transfer
or conversion to U.S. dollars shall be paid entirely by Licensee.
The royalty report required by Paragraph 9.4 shall be mailed to PHS
at its address for Agreement Notices indicated on the Signature Page.

 

		9.7	Licensee shall be solely responsible for determining
if any tax on royalty income is owed outside the United States and shall pay the tax and be responsible for all filings with appropriate
agencies of foreign governments.

 

		9.8	Additional royalties may be assessed by PHS on any payment
that is more than ninety (90) days overdue at the rate of one percent (1%) per month. This one percent (1%) per month rate may
be applied retroactively from the original due date until the date of receipt by PHS
of the overdue payment and additional royalties. The payment of any additional royalties shall not prevent PHS
from exercising any other rights it may have as a consequence of the lateness of any payment.

 

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		9.9	All plans and reports required by this Article 9 and marked “confidential” by Licensee
shall, to the extent permitted by law, be treated by PHS
as commercial and financial information obtained from a person and as privileged and confidential, and any proposed disclosure
of these records by the PHS under the Freedom of Information
Act (FOIA), 5 U.S.C. §552 shall be subject to the predisclosure notification requirements of 45 C.F.R. §5.65(d).

 

		10.	PERFORMANCE

 

		10.1	Licensee shall use its reasonable commercial efforts
to bring the Licensed Products and Licensed Processes to Practical Application. “Reasonable commercial
efforts” for the purposes of this provision shall include adherence to the Commercial Development Plan in Appendix
E and performance of the Benchmarks in Appendix D. The efforts of a sublicensee shall be considered the efforts of Licensee.

 

		10.2	Upon the First Commercial Sale, until the expiration or termination of this Agreement, Licensee
shall use its reasonable commercial efforts to make Licensed Products and Licensed Processes reasonably
accessible to the United States public.

 

		10.3	Licensee agrees, after its First Commercial Sale,
to make reasonable quantities of Licensed Products or materials produced through the use of Licensed Processes available
to patient assistance programs.

 

		10.4	Licensee agrees, after its First Commercial Sale
and as part of its marketing and product promotion, to develop educational materials (e.g., brochures, website, etc.) directed
to patients and physicians detailing the Licensed Products or medical aspects of the prophylactic and therapeutic uses of
the Licensed Products.

 

		10.5	Licensee agrees to supply, to the Mailing Address
for Agreement Notices indicated on the Signature Page, the Office of Technology Transfer, NIH with inert samples
of the Licensed Products or Licensed Processes or their packaging for educational and display purposes only.

 

		11.	INFRINGEMENT AND PATENT ENFORCEMENT

 

		11.1	PHS and Licensee
agree to notify each other promptly of each infringement or possible infringement of the Licensed
Patent Rights, as well as, any facts which may affect the validity, scope, or enforceability of the Licensed
Patent Rights of which either party becomes aware.

 

		11.2	Pursuant to this Agreement and the provisions of 35 U.S.C. Part 29, Licensee
may:

 

		(a)	bring suit in its own name, at its own expense, and on its own behalf for infringement of presumably valid claims in the Licensed
Patent Rights;

 

		(b)	in any suit, enjoin infringement and collect for its use, damages, profits, and awards of whatever nature recoverable for the
infringement; or

 

		(c)	settle any claim or suit for infringement of the Licensed Patent
Rights provided, however, that PHS
and appropriate Government authorities shall have the first right to take such actions; and

 

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		(d)	If Licensee desires to initiate a suit for patent infringement,
Licensee shall notify PHS
in writing. If PHS does not notify Licensee
of its intent to pursue legal action within ninety (90) days, Licensee
shall be free to initiate suit. PHS shall have
a continuing right to intervene in the suit. Licensee
shall take no action to compel the Government either to initiate or to join in any suit for patent infringement. Licensee
may request the Government to initiate or join in any suit if necessary to avoid dismissal of the suit. Should the Government
be made a party to any suit, Licensee shall reimburse
the Government for any costs, expenses, or fees which the Government incurs as a result of the motion or other action,
including all costs incurred by the Government in opposing the motion or other action. In all cases, Licensee
agrees to keep PHS reasonably apprised of the
status and progress of any litigation. Before Licensee
commences an infringement action, Licensee shall
notify PHS and give careful consideration to the views of PHS
and to any potential effects of the litigation on the public health in deciding whether to bring suit.

 

		11.3	In the event that a declaratory judgment action alleging invalidity or non-infringement of any of the Licensed
Patent Rights shall be brought against Licensee
or raised by way of counterclaim or affirmative defense in an infringement suit brought by Licensee
under Paragraph 11.2, pursuant to this Agreement and the provisions of 35 U.S.C. Part 29 or other statutes,
Licensee may:

 

		(a)	defend the suit in its own name, at its own expense, and on its own behalf for presumably valid claims in the Licensed
Patent Rights;

 

		(b)	in any suit, ultimately to enjoin infringement and to collect for its use, damages, profits, and awards of whatever nature
recoverable for the infringement; and

 

		(c)	settle any claim or suit for declaratory judgment involving the Licensed
Patent Rights-provided, however, that PHS
and appropriate Government authorities shall have the first right to take these actions and shall have
a continuing right to intervene in the suit; and

 

		(d)	If PHS does not notify Licensee
of its intent to respond to the legal action within a reasonable time, Licensee
shall be free to do so. Licensee shall take no
action to compel the Government either to initiate or to join in any declaratory judgment action. Licensee
may request the Government to initiate or to join any suit if necessary to avoid dismissal of the suit. Should
the Government be made a party to any suit by motion or any other action of Licensee,
Licensee shall reimburse the Government for any costs,
expenses, or fees, which the Government incurs as a result of the motion or other action. If Licensee
elects not to defend against the declaratory judgment action, PHS,
at its option, may do so at its own expense. In all cases, Licensee
agrees to keep PHS reasonably apprised of the
status and progress of any litigation. Before Licensee commences
an infringement action, Licensee shall notify PHS
and give careful consideration to the views of PHS
and to any potential effects of the litigation on the public health in deciding whether to bring suit.

 

		11.4	In any action under Paragraphs 11.2 or 11.3 the expenses including costs, fees, attorney fees, and disbursements, shall be
paid by Licensee. The value of any recovery made by Licensee
through court judgment or settlement shall be treated as Net Sales and subject to earned royalties.

 

		11.5	PHS shall cooperate fully with Licensee
in connection with any action under Paragraphs 11.2 or 11.3. PHS
agrees promptly to provide access to all necessary documents and to render reasonable assistance in response to a request by Licensee.

 

    	Page 11 of 31

    	 

    

 

		12.	NEGATION OF WARRANTIES AND INDEMNIFICATION

 

		12.1	PHS offers no warranties other than those specified
in Article 1.

 

		12.2	PHS does not warrant the validity of the Licensed
Patent Rights and makes no representations whatsoever with regard to the scope of the Licensed
Patent Rights, or that the Licensed Patent Rights
may be exploited without infringing other patents or other intellectual property rights of third parties.

 

		12.3	PHS MAKES NO WARRANTIES, EXPRESS OR IMPLIED, OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE OF ANY SUBJECT MATTER DEFINED BY THE CLAIMS OF THE LICENSED PATENT RIGHTS OR TANGIBLE
MATERIALS RELATED THERETO.

 

		12.4	PHS does not represent that it shall commence
legal actions against third parties infringing the Licensed Patent
Rights.

 

		12.5	Licensee shall indemnify and hold PHS,
its employees, students, fellows, agents, and consultants harmless from and against all liability, demands, damages, expenses,
and losses, including but not limited to death, personal injury, illness, or property damage in connection with or arising out
of:

 

		(a)	the use by or on behalf of Licensee, its sublicensees,
directors, employees, or third parties of any Licensed Patent Rights;
or

 

		(b)	the design, manufacture, distribution, or use of any Licensed Products, Licensed Processes or materials by Licensee,
or other products or processes developed in connection with or arising out of the Licensed
Patent Rights.

 

		12.6	Licensee agrees to maintain a liability insurance
program consistent with sound business practice.

 

		13.	TERM, TERMINATION, AND MODIFICATION OF RIGHTS

 

		13.1	This Agreement is effective when signed by all parties, unless the provisions of Paragraph 14.16 are not fulfilled,
and shall extend to the expiration of the last to expire of the Licensed
Patent Rights unless sooner terminated as provided in this Article 13.

 

		13.2	In the event that Licensee is in default in the performance
of any material obligations under this Agreement, including but not limited to the obligations listed in Paragraph 13.5,
and if the default has not been remedied within ninety (90) days after the date of notice in writing of the default, PHS
may terminate this Agreement by written notice and pursue outstanding royalties owed through procedures provided by
the Federal Debt Collection Act.

 

		13.3	In the event that Licensee becomes insolvent, files
a petition in bankruptcy, has such a petition filed against it, determines to file a petition in bankruptcy, or receives notice
of a third party's intention to file an involuntary petition in bankruptcy, Licensee
shall immediately notify PHS in writing. Furthermore,
PHS shall have the right to terminate this Agreement
immediately upon Licensee's receipt of written notice.

 

		13.4	Licensee shall have a unilateral right to terminate
this Agreement or any licenses in any country or territory by giving PHS
sixty (60) days written notice to that effect.

 

    	Page 12 of 31

    	 

    

 

		13.5	PHS shall specifically have the right to terminate
or modify, at its option, this Agreement, if PHS determines
that the Licensee:

 

		(a)	is not executing the Commercial Development Plan submitted with its request for a license and the Licensee
cannot otherwise demonstrate to PHS' satisfaction
that the Licensee has taken, or can be expected to take
within a reasonable time, effective steps to achieve Practical Application of the Licensed Products or Licensed
Processes;

 

		(b)	has not achieved the Benchmarks as may be modified under Paragraph 9.2;

 

		(c)	has willfully made a false statement of, or willfully omitted a material fact in the license application or in any report required
by this Agreement;

 

		(d)	has committed a material breach of a covenant or agreement contained in this Agreement;

 

		(e)	is not keeping Licensed Products or Licensed Processes reasonably available to the public after commercial use
commences;

 

		(f)	cannot reasonably satisfy unmet health and safety needs; or

 

		(g)	cannot reasonably justify a failure to comply with the domestic production requirement of Paragraph 5.2 unless waived.

 

		13.6	In making the determination referenced in Paragraph 13.5, PHS
shall take into account the normal course of such commercial development programs conducted with sound and reasonable business
practices and judgment and the annual reports submitted by Licensee
under Paragraph 9.2. Prior to invoking termination or modification of this Agreement under Paragraph 13.5, PHS
shall give written notice to Licensee providing
Licensee specific notice of, and a ninety (90) day opportunity
to respond to, PHS' concerns as to the items referenced
in 13.5(a)-13.5(g). If Licensee fails to alleviate
PHS' concerns as to the items referenced in 13.5(a)-13.5(g)
or fails to initiate corrective action to PHS' satisfaction,
PITS may terminate this Agreement.

 

		13.7	When the public health and safety so require, and after written notice to Licensee
providing Licensee a sixty (60) day opportunity
to respond, PHS shall have the right to require Licensee
to grant sublicenses to responsible applicants, on reasonable terms, in any Licensed Fields of Use under the Licensed
Patent Rights, unless Licensee can reasonably
demonstrate that the granting of the sublicense would not materially increase the availability to the public of the subject matter
of the Licensed Patent Rights. PITS shall not require
the granting of a sublicense unless the responsible applicant has first negotiated in good faith with Licensee.

 

		13.8	PHS reserves the right according to 35 U.S.C. §209(d)(3)
to terminate or modify this Agreement if it is determined that this action is necessary to meet the requirements for public
use specified by federal regulations issued after the date of the license and these requirements are not reasonably satisfied by
Licensee.

 

		13.9	Within thirty (30) days of receipt of written notice of PHS'
unilateral decision to modify or terminate this Agreement, Licensee
may, consistent with the provisions of 37 C.F.R. §404.11, appeal the decision by written submission to the designated
PHS official. The decision of the designated PHS
official shall be the final agency decision. Licensee
may thereafter exercise any and all administrative or judicial remedies that may be available.

 

    	Page 13 of 31

    	 

    

 

		13.10	Within ninety (90) days of expiration or termination of this Agreement under this Article 13, a final report shall be
submitted by Licensee. Any royalty payments, including those
incurred but not yet paid (such as the full minimum annual royalty), and those related to patent expense, due to PHS
shall become immediately due and payable upon termination or expiration. If terminated under this Article 13, sublicensees
may elect to convert their sublicenses to direct licenses with PUS pursuant to Paragraph 4.3. Unless otherwise specifically
provided for under this Agreement, upon termination or expiration of this Agreement, Licensee
shall return all Licensed Products or other materials included within the Licensed
Patent Rights to PHS or provide
PHS with certification of the destruction thereof.
Licensee may not be granted additional PHS
licenses if the final reporting requirement is not fulfilled.

 

		14.	GENERAL PROVISIONS

 

		14.1	Neither party may waive or release any of its rights or interests in this Agreement except in writing. The failure of
the Government to assert a right hereunder or to insist upon compliance with any term or condition of this Agreement
shall not constitute a waiver of that right by the Government or excuse a similar subsequent failure to perform any
of these terms or conditions by Licensee.

 

		14.2	This Agreement constitutes the entire agreement between the parties relating to the subject matter of the Licensed
Patent Rights, Licensed Products and Licensed Processes, and all prior negotiations, representations,
agreements, and understandings are merged into, extinguished by, and completely expressed by this Agreement.

 

		14.3	The provisions of this Agreement are severable, and in the event that any provision of this Agreement shall be
determined to be invalid or unenforceable under any controlling body of law, this determination shall not in any way affect the
validity or enforceability of the remaining provisions of this Agreement.

 

		14.4	If either party desires a modification to this Agreement, the parties shall, upon reasonable notice of the proposed
modification by the party desiring the change, confer in good faith to determine the desirability of the modification. No modification
shall be effective until a written amendment is signed by the signatories to this Agreement or their designees.

 

		14.5	The construction, validity, performance, and effect of this Agreement shall be governed by Federal law as applied by
the Federal courts in the District of Columbia.

 

		14.6	All Agreement notices required or permitted by this Agreement shall be given by prepaid, first class, registered
or certified mail or by an express/overnight delivery service provided by a commercial carrier, properly addressed to the other
party at the address designated on the following Signature Page, or to another address as may be designated in writing by the other
party. Agreement notices shall be considered timely if the notices are received on or before the established deadline date
or sent on or before the deadline date as verifiable by U.S. Postal Service postmark or dated receipt from a commercial carrier.
Parties should request a legibly dated U.S. Postal Service postmark or obtain a dated receipt from a commercial carrier or the
U.S. Postal Service. Private metered postmarks shall not be acceptable as proof of timely mailing.

 

    	Page 14 of 31

    	 

    

 

		14.7	This Agreement shall not be assigned or otherwise transferred (including any transfer by legal process or by operation
of law, and any transfer in bankruptcy or insolvency, or in any other compulsory procedure or order of court) except to Licensee's
Affiliate(s) without the prior written consent of PHS.
The parties agree that the identity of the parties is material to the formation of this Agreement and that the obligations
under this Agreement are nondelegable. In the event that PHS
approves a proposed assignment, Licensee shall
pay PHS, as an additional royalty, one percent (1%)
of the fair market value of any consideration received for any assignment of this Agreement within sixty (60) days of the
assignment.

 

		14.8	Licensee agrees in its use of any PHS-supplied
materials to comply with all applicable statutes, regulations, and guidelines, including PHS
and HHS regulations and guidelines. Licensee
agrees not to use the materials for research involving human subjects or clinical trials in the United States without complying
with 21 C.F.R. Part 50 and 45 C.F.R. Part 46. Licensee
agrees not to use the materials for research involving human subjects or clinical trials outside of the United States without
notifying PHS, in writing, of the research or trials
and complying with the applicable regulations of the appropriate national control authorities. Written notification to PHS
of research involving human subjects or clinical trials outside of the United States shall be given no later than sixty (60)
days prior to commencement of the research or trials.

 

		14.9	Licensee
                                         acknowledges that it is subject to and agrees to abide by the United States
                                         laws and regulations (including the Export Administration Act of 1979 and Arms
                                         Export Control Act) controlling the export of technical data, computer software,
                                         laboratory prototypes, biological material, and other commodities. The transfer of these
                                         items may require a license from the appropriate agency of the U.S. Government or
                                         written assurances by Licensee
                                         that it shall not export these items to certain foreign countries without
                                         prior approval of this agency. PHS
                                         neither represents that a license is or is not required or that, if required,
                                         it shall be issued.

 

		14.10	Licensee agrees to mark the Licensed Products or
their packaging sold in the United States with all applicable U.S. patent numbers and similarly to indicate “Patent Pending”
status. All Licensed Products manufactured in, shipped to, or sold in other countries shall be marked in a manner to preserve
PHS patent rights in those countries.

 

		14.11	By entering into this Agreement, PHS does not directly
or indirectly endorse any product or service provided, or to be provided, by Licensee
whether directly or indirectly related to this Agreement. Licensee
shall not state or imply that this Agreement is an endorsement by the Government, PHS,
any other Government organizational unit, or any Government employee. Additionally, Licensee
shall not use the names of NIH, FDA, PHIS, or HHS or the Government or their employees in any advertising,
promotional, or sales literature without the prior written approval of PHS.

 

		14.12	The parties agree to attempt to settle amicably any controversy or claim arising under this Agreement or a breach of
this Agreement, except for appeals of modifications or termination decisions provided for in Article 13. Licensee
agrees first to appeal any unsettled claims or controversies to the designated PHS official, or designee, whose decision
shall be considered the final agency decision. Thereafter, Licensee
may exercise any administrative or judicial remedies that may be available.

 

		14.13	Nothing relating to the grant of a license, nor the
                                         grant itself, shall be construed to confer upon any person any immunity from or defenses
                                         under the antitrust laws or from a charge of patent misuse, and the acquisition and use
                                         of rights pursuant to 37 C.F.R. Part 404 shall not be immunized from the
                                         operation of state or Federal law by reason of the source of the grant.

 

    	Page 15 of 31

    	 

    

 

		14.14	Any formal recordation of this Agreement required by the laws of any Licensed
Territory as a prerequisite to enforceability of the Agreement in the courts of any foreign jurisdiction
or for other reasons shall be carried out by Licensee at
its expense, and appropriately verified proof of recordation shall be promptly furnished to PHS.

 

		14.15	Paragraphs 4.3, 8.1, 9.5-9.7, 12.1-12.5, 13.9, 13.10, 14.12 and 14.15 of this Agreement shall survive termination of
this Agreement.

 

		14.16	The terms and conditions of this Agreement shall, at PHS'
sole option, be considered by PHS to be
withdrawn from Licensee's consideration and the terms
and conditions of this Agreement, and the Agreement itself to be null and void, unless this Agreement is executed
by the Licensee and a fully executed original is
received by PHS within sixty (60) days from the date
of PHS signature found at the Signature Page.

 

SIGNATURES BEGIN ON NEXT PAGE

 

    	Page 16 of 31

    	 

    

 

PHS
PATENT. LICENSE AGREEMENT— EXCLUSIVE

 

SIGNATURE PAGE

 

	For PHS:	 	 	 
	 	 	 	 
	/s/ Richard U. Rodriguez	 	12-22-11	 
	Richard U. Rodriguez	 	Date	 

 

Director, Division of Technology Development and Transfer

Office of Technology Transfer

National Institutes of Health

 

Mailing Address or E-mail Address for Agreement notices and
reports:

 

Chief, Monitoring & Enforcement Branch

Office of Technology Transfer

National Institutes of Health

601l Executive Boulevard, Suite 325

Rockville; Maryland 20852-3804 U.S.A.

 

Email: LicenseNotices_Reports@mail.nih.gov.

 

For Licensee
(Upon, information and belief, the undersigned .expressly certifies or affirms that the contents of any statements of Licensee
made or referred to in this document are truthful and accurate.):

 

	by:	 	 	 
	 	 	 	 
	/s/ David Fineman	 	1-3-12	 
	Signature of Authorized Official	 	Date	 
	 	 	 	 
	David Fineman	 	 	 
	Printed Name	 	 	 
	 	 	 	 
	President and CEO	 	 	 
	Title	 	 	 

 

		I.	Official and Mailing Address for Agreement notices:

 

	David Fineman	 
	Name	 
	 	 
	President and CEO	 
	Title	 
	 	 
	Mailing Address	 
	 	 
	KineMed. Inc. 	 
	 	 
	5980 Horton Street, Suite 470 	 
	 	 
	Emeryville, CA 94608	 

 

    	Page 17 of 31

    	 

    

 

	Email Address:	 	 
	 	 	 
	Phone:	510-655-6525	 
	 	 	 
	Fax	510-655-6506	 

 

		II.	Official and Mailing Address for Financial notices (Licensee's
contact person for royalty payments)

 

	David Fineman	 
	Name	 
	 	 
	President and CEO	 
	Title	 
	 	 
	Mailing Address:	 
	 	 
	KineMed, Inc. 	 
	 	 
	5980 Horton. Street, Suite 470	 
	 	 
	Emeryville, CA 94608	 

 

	Email Address:	 	 
	 	 	 
	Phone:	510-655-6525	 
	 	 	 
	Fax	510-655-6506	 

 

Any false or, misleading statements made, presented,
or submitted to the Government, including any relevant omissions, under this Agreement and during the course of negotiation
of this Agreement are subject to all applicable civil and criminal statutes including Federal statutes 31. U.S.C. §§3801-3812
(civil liability) and 18 U.S.C. §1001 (criminal liability including fine(s) or imprisonment).

 

    	Page 18 of 31

    	 

    

 

APPENDIX A - PATENT(S)
OR PATENT APPLICATION(S)

 

Patent(s) or Patent Application(s):

 

		I.	United States Provisional Patent Application No. 60/619,392, filed October 15, 2004, entitled “Assay System and Composition
of Multi-Domain Amphipathic Helical Peptides for the Treatment of Atherosclerosis” (HHS Ref. No. E-114-2004/0-US-01).
Status: Converted PCT.

 

		II.	PCT Application No. US2005/036933, filed October 14, 2005, entitled, “Multi-Domain Amphipathic Helical Peptides and Methods
of Their Use” (HHS Ref. No. E-114-2004/0-PCT-02). Status: Expired.

 

		III.	Australian Patent Application Serial No. 2005295640, filed October 14, 2005, entitled “Multi-Domain Amphipathic Helical
Peptides and Methods of Their Use”, (HHS Ref. No. E-114-2004/0-AU-03). Status: Allowed.

 

		IV.	Canadian Patent Application Serial No. 2584048, filed October 14, 2005, entitled “Multi-Domain Amphipathic Helical Peptides
and Methods of Their Use” (HHS Ref. No. E-I14-2004/0-CA-04). Status: Pending.

 

		V.	European Patent Application Serial No. 05815961.7, filed October 14, 2005, entitled “Multi-Domain Amphipathic Helical
Peptides and Methods of Their Use” (HHS Ref. No. E-114-2004/0-EP-05). Status: Issued on May 26, 2010 as Patent Number
1812474.

 

		VI.	Swiss Patent Serial No. 1812474, filed October 14, 2005, entitled “Multi-Domain Amphipathic Helical Peptides and Methods
of Their Use” (HHS Ref. No. E-114-2004/0-CH-11). Issued on May 26, 2010 as Patent Number 1812474.

 

		VII.	German Patent Serial No. 1812474, filed October 14, 2005, entitled “Multi-Domain Amphipathic Helical Peptides and Methods
of Their Use” (HHS Ref. No. E-114-2004/0-DE-12). Issued on May 26, 2010 as Patent Number 1812474.

 

		VIII.	Spanish Patent Serial No. 1812474, filed October 14, 2005, entitled “Multi-Domain Amphipathic Helical Peptides and Methods
of Their Use” (HHS Ref. No. E-114-2004/0-ES-13). Issued on May 26, 2010 as Patent Number 1812474.

 

		IX.	French Patent Serial No. 1812474, filed October 14, 2005, entitled “Multi-Domain Amphipathic Helical Peptides and Methods
of Their Use” (HHS Ref. No. E-I14-2004/0-FR-14). Issued on May 26, 2010 as Patent Number 1812474.

 

		X.	British Patent Serial No. 1812474, filed October 14, 2005, entitled “Multi-Domain Amphipathic Helical Peptides and Methods
of Their Use” (HHS Ref. No. E-114-2004/0-GB-15). Issued on May 26, 2010 as Patent Number 1812474.

 

		XI.	Italian Patent Serial No. 1812474, filed October 14, 2005, entitled “Multi-Domain Amphipathic Helical Peptides and Methods
of Their Use” (HHS Ref. No. E-114-2004/0-IT-16). Issued on May 26, 2010 as Patent Number 1812474.

 

		XII.	Japanese Patent Application Serial No. 2007-536912, filed October 14, 2005, entitled “Multi-Domain Amphipathic Helical
Peptides and Methods of Their Use” (HHS Ref. No. E-114-2004/0-JP-06). Status: Pending.

 

    	Page 19 of 31

    	 

    

 

		XIII.	United States Patent Serial No. 7,572,771, filed April 13, 2007, entitled “Multi-Domain Amphipathic Helical Peptides
and Methods of Their Use” (HHS Ref. No. E-114-2004/0-US-07). Status: Issued on August 11, 2009 as Patent Number 7,572,771.

 

		XIV.	United States Patent Application Serial No. 12/497,443, filed July 2, 2009, entitled “Multi-Domain Amphipathic Helical
Peptides and Methods of Their Use” (HHS Ref. No. E-114-2004/0-US-08). Status: Issued on December 6, 2011 as Patent
Number 8,071,746.

 

		XV.	United States Patent Application Serial No. 12/766,761, filed April 23, 2010, entitled “Multi-Domain Amphipathic Helical
Peptides and Methods of Their Use” (HHS Ref. No. E-114-2004/0-US-09). Status: Pending.

 

		XVI.	European Patent Application Serial No. 10004512.9, filed October 14, 2005, entitled “Multi-Domain Amphipathic Helical
Peptides and Methods of Their Use” (HHS Ref. No. E-114-2004/0-EP-10). Status: Pending.

 

    	Page 20 of 31

    	 

    

 

APPENDIX B — LICENSED FIELDS
OF USE AND TERRITORY

 

		I.	Licensed Fields of Use:

 

FDA or foreign regulatory body approved 5a peptide
for the (1) prevention, treatment and mitigation of the following cardiovascular diseases: peripheral artery disease (PAD), intermittent
claudication, coronary artery disease (CAD), dyslipidemia, angina pectoris, myocardial infarction, atherosclerosis, coronary plaque
stabilization, carotid atherosclerosis, congestive heart failure, cerebral stroke, post-ischemic reperfusion, inflammation of the
cardiovascular system and (2) the treatment of cardiovascular related peri and post-surgical inflammation associated with transplants.

 

		II.	Licensed
Territory:

 

Worldwide

 

    	Page 21 of 31

    	 

    

 

 

APPENDIX C — ROYALTIES

 

Royalties:

 

		I.	Licensee agrees to pay to PHS
a noncreditable, nonrefundable license issue royalty in the amount of Two Hundred and Fifty U.S. dollars ($250,000) due within
sixty (60) days of the effective date of this Agreement and payable in installments as follows:

 

		(a)	Twenty Five Thousand U.S. dollars ($25,000) payable within sixty (60) days of the effective date of this Agreement.

 

		(b)	Twenty Five Thousand U.S. dollars ($25,000) payable within six (6) months of the effective date of this Agreement.

 

		(c)	One Hundred Thousand U.S. dollars ($100,000) payable within the one (1) year anniversary of the effective date of this Agreement.

 

		(d)	One Hundred Thousand U.S. dollars ($100,000) payable within the eighteen (18) months anniversary of the effective date of this
Agreement.

 

		II.	Licensee agrees to pay to PHS
a nonrefundable minimum annual royalty in the amount of Forty Thousand U.S. dollars ($40,000) as follows:

 

		(a)	The first minimum annual royalty is due within sixty (60) days from the one (1) year anniversary of the effective date of this
Agreement and may be prorated according to the fraction of the calendar year remaining between the effective date of this
Agreement and the next subsequent January 1; and

 

		(b)	Subsequent minimum annual royalty payments are due and payable on January 1 of each calendar year, beginning in 2014,
and may be credited against any earned royalties due for sales made in that year.

 

		III.	Licensee agrees to pay PHS
earned royalties on Net Sales by or on behalf of Licensee
and its sublicensees as follows:

 

		(a)	Three and one half percent (3.5%) on Net Sales less than Fifty Million U.S. dollars ($50,000,000.00). If patent rights
are licensed from one or more non- affiliated third parties to make, use, sell, offer to sell, or import a Licensed Product
or Licensed Process in the Licensed Field of Use, and Licensee
or sublicensee is obligated to pay earned royalties on net sales to such non-affiliated third parties, then the dollar amount
of the earned royalties on Net Sales due to PHS under
this Agreement shall be decreased by the dollar amount Licensee
or sublicensee is contractually obligated to pay to such nonaffiliated third parties during the same royalty reporting period,
but in no event shall Licensee or sublicensee pay PHS
less than two and one half percent (2.5%) earned royalties on Net Sales during any reporting period in which an earned royalty
on Net Sales is due to PHS.

 

		(b)	Four percent (4.0%) on Net Sales equal to or greater than Fifty Million U.S. dollars ($50,000,000.00) but less than
or equal to Five Hundred Million U.S. dollars ($500,000,000.00). If patent rights are licensed from one or more non- affiliated
third parties to make, use, sell, offer to sell, or import a Licensed Product or Licensed Process in the Licensed
Field of Use, and Licensee or sublicensee is obligated
to pay earned royalties on net sales to such non-affiliated third parties, then the dollar amount of the earned royalties on Net
Sales due to PHS under this Agreement shall
be decreased by the dollar amount Licensee or sublicensee
is contractually obligated to pay to such non-affiliated third parties during the same royalty reporting period, but in no event
shall Licensee or sublicensee pay PHS
less than three percent (3.0%) earned royalties on Net Sales during any reporting period in which an earned royalty
on Net Sales is due to PHS.

 

    	Page 22 of 31

    	 

    

 

		(c)	Five percent (5%) on Net Sales greater than Five Hundred Fifty Million U.S. dollars ($500,000,000.00). If patent rights
are licensed from one or more non- affiliated third parties to make, use, sell, offer to sell, or import a Licensed Product
or Licensed Process in the Licensed Field of Use, and Licensee
or sublicensee is obligated to pay earned royalties on net sales to such non-affiliated third parties, then the dollar amount of
the earned royalties on Net Sales due to PHS under
this Agreement shall be decreased by the dollar amount Licensee
or sublicensee is contractually obligated to pay to such non-affiliated third parties during the same royalty reporting period,
but in no event shall Licensee or sublicensee pay PHS
less than a four percent (4%) earned royalty on Net Sales during any reporting period in which an earned royalty on Net
Sales is due to PHS.

 

		IV.	Licensee agrees to pay PHS
Benchmark royalties within sixty (60) days of achieving each Benchmark:

 

		(a)	One Hundred Thousand U.S. dollars ($100,000) upon successful completion of the preclinical toxicology phase of each Licensed
Product.

 

		(b)	Four Hundred Fifty Thousand U.S. dollars ($450,000) upon dosing of first patient in a Phase II clinical trial or foreign equivalent
with each Licensed Product.

 

		(c)	Five Hundred Thousand U.S. dollars ($500,000) upon dosing of first patient in a Phase In clinical trial or foreign equivalent
with each Licensed Product.

 

		(d)	Six Hundred Thousand U.S. dollars ($600,000) upon filing of first U.S. New Drug Application (NDA) directed to each Licensed
Product.

 

		(e)	Five Hundred Thousand U.S. dollars ($500,000) upon gaining first foreign regulatory market approval in Europe or Japan for
each Licensed Product.

 

		(f)	Three Hundred Thousand U.S. dollars ($300,000) upon gaining first foreign regulatory market approval in Canada or Australia
for each Licensed Product.

 

		(g)	Seven Hundred Thousand U.S. dollars ($700,000) upon completing First Commercial Sale in U.S. for each Licensed Product.

 

		(h)	Six Hundred Thousand U.S. dollars ($600,000) upon completing First Commercial Sale in Europe or Japan for each Licensed
Product.

 

		(i)	Seven Million U.S. dollars ($7,000,000) one-time payment upon attaining Net Sales from Licensed Products that
are equal to or greater than One Hundred Million U.S. dollars ($100,000,000) in one calendar year.

 

		V.	Licensee agrees to pay PHS
additional sublicensing royalties on the fair market value of any consideration received for granting each sublicense within sixty
(60) days of the execution of each sublicense as follows:

 

		(a)	If Licensee executes a sublicense agreement prior to
dosing of first patient in a Phase II clinical trial or foreign equivalent, Licensee
agrees to pay PHS sublicensing royalties of Twenty
percent (20%) for granting each sublicense with any Licensed Product.

    	Page 23 of 31

    	 

    

 

		(b)	If Licensee executes a sublicense agreement after dosing
of first patient in a Phase II clinical trial or foreign equivalent, Licensee
agrees to pay PHS sublicensing royalties of Twelve
percent (12%) for granting each sublicense with any Licensed Product.

 

		(c)	If Licensee executes a sublicense agreement after filing
of first U.S. New Drug Application (NDA) or foreign equivalent, Licensee
agrees to pay PHS sublicensing royalties of Eight
percent (8%) for granting each sublicense with any Licensed Product.

    	Page 24 of 31

    	 

    

 

APPENDIX D — BENCHMARKS AND PERFORMANCE

 

Licensee
agrees to the following Benchmarks for its performance under this Agreement and, within thirty (30) days of achieving
a Benchmark, shall notify PHS that the Benchmark
has been achieved.

 

		I.	Initiate Preclinical Development Plan for a Licensed Product within three (3) months of the effective date of this Agreement.

 

		II.	Initiate first Phase I clinical trial or foreign equivalent for a Licensed Product by fourth quarter of 2012

 

		III.	Initiate first Phase II clinical trial or foreign equivalent for a Licensed Product by fourth quarter of 2013.

 

		IV.	Initiate first Phase Ill clinical trial or foreign equivalent for a Licensed Product by fourth quarter of 2014.

 

		V.	File first U.S. New Drug Application (NDA) directed to a Licensed Product by fourth quarter of 2016.

 

		VI.	File first submission to a foreign regulatory authority for market approval of a Licensed Product by fourth quarter
of 2016.

 

		VII.	Gain first regulatory market approval from a regulatory authority for a Licensed Product by first quarter of
2018.

 

		VIII.	Complete First Commercial Sale in United States by fourth quarter of 2019.

 

		IX.	Complete First Commercial Sale in Australia by fourth quarter of 2020.

 

		X.	Complete First Commercial Sale in Canada by fourth quarter of 2019.

 

		XI.	Complete First Commercial Sale in Europe by fourth quarter of 2020.

 

		XII.	Complete First Commercial Sale in Japan by fourth quarter of 2021.

    	Page 25 of 31

    	 

    

 

APPENDIX E — COMMERCIAL DEVELOPMENT
PLAN

 

Licensee
has proposed a Commercial Development Plan that will take Licensed
Patent Rights, Licensed Products and Licensed Processes in the Licensed Field of Use from the laboratory
to the marketplace within six (6) years. The Commercial Development Plan proposed by the Licensee
is as follows:

 

Peptide Development Plan:

 

		·	cGMP synthesis and scale-up of peptide manufacturing:

 

5A peptide has been manufactured
for Licensee using solid state peptide synthesis
methods. This manufacturing method can be readily adapted for cGMP manufacturing and may also be sufficiently scalable to support
all clinical development needs and even initial product launch supplies. Preparation of approximately 800 grams of cGMP 5A peptide
will be required to enable the proposed toxicology and clinical studies. Based on preclinical data this amount of material will
support GMP toxicology (eight dosing days in rats and dogs) and a single ascending dose, first in man study. Several reputable
manufactures have indicated the ability to produce the 5a peptide.

 

		·	Development of analytical methods for cGMP peptide characterization
and quality control:

 

No analytical methods have been
pursued to date. A small battery of analytical methods will be performance tested and qualified in order to serve as quality control
methods for cGMP manufacturing. The current rpHPLC and LCMS methods will be qualified, and an ELISA method will be developed and
qualified.

 

		·	Development of suitable formulations:

 

To date Licensee
has prepared phospholipids/peptide emulsions of 5A for preclinical studies. The POPC formulation is the best studied and can
be produced reliably however based on input from the NIH RAID team Licensee
may study the type of phospholipids and the optimal lipid/peptide ratio for use in the planned toxicology and clinical studies.
Methods for preparing the emulsions as well as emulsion stability will be validated.

 

Preclinical Development Plan:

 

		·	Pre-clinical pharmacokinetic and ADME studies including
bioanalytical method development:

 

Analytical methods to be used
during the GLP toxicology and clinical studies will be established and tested in these non-GLP preclinical studies.

 

		·	Range finding and maximum tolerated dose (MTD) initial
toxicology studies:

 

Prior to the start of GLP toxicology
studies in two test species (rat and dog, or rat and monkey), a single dose (dose escalation) and MTD study will be conducted
in each animal species. These studies are needed to support the selection of appropriate doses for the IND enabling safety toxicology
studies.

 

Regulatory Strategy and IND Enabling Studies:

 

		·	IND enabling safety toxicology:

 

After completing a dose finding
and MTD studies in each test species, a 14 day GLP safety toxicology study will be done in 2 species of test animals. Following
the 14 day dosing and observation period, test animals will be sacrificed and necropsies performed; organs and tissues will be
harvested and preserved for histopathological evaluations.

 

    	Page 26 of 31

    	 

    

 

		·	GMP Manufacture of toxicology and clinical supplies:

 

Following the manufacturing of
GMP test batches, a large batch or batches (>300 gm's each) of SA peptide will be manufactured under GMP conditions in order
to supply drug for the GLP safety studies and for the initial clinical trial.

 

Product Development Planning and advice in IND preparation:

 

Preparation of a U.S. IND filing
will take place concurrently with the conduct of the safety toxicology studies. A clinical protocol and investigator's brochure
will be prepared and the 1ND will be assembled and reviewed in anticipation of the completion of the safety toxicology studies.

 

Clinical Development Plan:

 

Licensee
has developed a technique to quantify reverse cholesterol transport (RCT) in both animals and humans through the use of stable
isotopes and isotope-ratio mass spectrometry. Quantification of peripheral cholesterol mobilization from tissues into plasma, referred
to as efflux, and elimination of plasma-derived cholesterol as fecal sterols, referred to as excretion, is made in a single procedure.

 

Although the cardioprotective effects of
HDL on RCT in both humans and experimental animals are well documented in the literature, the functional significance of RCT in
atherosclerosis remains controversial. This uncertainty can be attributed, in large part, to the previous inability to measure
RCT fluxes in vivo, particularly in humans, and thereby test hypotheses experimentally. It is clear that the concentration
of HDL particles in blood does not accurately reflect efflux rate of cholesterol or global flux through the RCT pathway. This was
most recently illustrated in the outcome of the Torcetrapib trial where, despite dramatically increased HDL concentration, no benefit
on atherosclerosis was observed. Accordingly, it is critical to evaluate in humans the effect of HDL targeted therapies on cholesterol
flux prior to commencing large and costly clinical outcome trials.

 

Licensee
intends to use its proprietary ability to directly measure RCT to direct and expedite the clinical development of 5A. Licensee
has already assessed 5A with this proprietary technology in animals and has shown (see above) 5A's ability to increase RCT in a
relevant animal model. As the only company with access to this patented method, Licensee
intends to symmetrically apply its technology to demonstrate human Proof-of-concept in early Phase I studies of 5A. Licensee
then intends to maximize the chances of successful development of SA by using its technology to optimize the dose-response of SA
against RCT activity in phase Ib and Phase II studies.

 

The most important element of the development
plan is to establish clinical proof-of-principle in patients as quickly and efficiently as possible. Early assessment of clinical
efficacy in healthy volunteers will be performed in Phase Ia and Ib through the use of Licensee's
stable-isotope based kinetic measurement of RCT. This method, in contrast to either IMT or IVUS imaging metrics or traditional
clinical outcomes, provides for rapid evaluation of drug efficacy on one of the primary targets of mimetic therapies, modulation
of cholesterol flux through the RCT pathway.

 

In its initial Phase II study, Licensee
will evaluate the 5A mimetic therapy to subjects with diagnosed intermittent claudication. The primary outcome in all subjects
will be standard diagnostic criteria for intermittent claudication changes in ankle-brachial indices and doppler ultrasound of
the peripheral arteries, with secondary endpoints being treadmill tests, forearm vascular reactivity and Licensee's
measurement of RCT. By using standard outcomes for intermittent claudication in phase II and III studies, Licensee
will have a clear path to approval for 5A that does not require the classic large and long cardiovascular outcome studies.

 

    	Page 27 of 31

    	 

    

 

At the same time, Licensee's
added measurement of RCT in phase II will allow for subject identification/stratification, accurate dose finding through rapid
dose-response and pK/pD evaluation to optimize the design of phase III clinical trials. The phase III registration study will be
designed to show non-inferiority to the current standard of care for intermittent claudication. The phase III study guided by the
Licensee enabled measurement of RCT to determine the optimal'
dose regimen for 5A will have a much higher likelihood of success than with standard metrics alone.

 

Additionally, Licensee
will pursue a parallel phase II study in subjects with known coronary artery disease (CAD). Licensee
will measure changes in carotid IMT, or other imaging modality as a primary outcome. Licensee
hopes to show that increased RCT flux with 5A in subjects with known CAD can be a therapeutic for reversing atherosclerosis.

 

Partnering/Acquisition Plan:

 

Licensee
expects to partner the phase III development and further commercialization in the CAD indication with a partner with established
late-stage and commercialization experience to gain market approval of Licensed Products in the CAD indication.

 

Commercial Launch Plan (for each Licensed Product):

 

The initial Licensed Product shall
be positioned for regulatory market approval and launch in peripheral artery disease (PAD).

 

After successful Phase II study in intermittent
claudication, Licensee shall work with its commercial
partner to develop the optimal commercialization plan for the drug based upon the demonstrated drug activity. Licensee
may build or acquire a specialty commercialization group that can effectively penetrate the relatively centralized markets such
as interventional cardiologists that diagnose and treat intermittent claudication. Licensee
may also or alternatively enter into a commercial partnership with a drug or drug/device company that already has a commercial
presence in these markets to facilitate rapid market penetration in these specialty market segments.

 

Licensee
expects to partner with a leading pharmaceutical company to facilitate the timely completion of the larger, longer-term clinical
development studies for the large and expensive registrational outcome studies leading to the launch of a Licensed Product to
prevent and treat CAD in the U.S. followed by subsequent commercial launches in other Licensed Territories.

 

    	Page 28 of 31

    	 

    

 

APPENDIX F — EXAMPLE ROYALTY
REPORT

 

Required royalty report information
includes:

 

·OTT
license reference number (L-XXX-200X10)

·Reporting
period

·Catalog
number and units sold of each Licensed Product (domestic and foreign)

·Gross
Sales per catalog number per country

·Total
Gross Sales

·Itemized
deductions from Gross Sales

·Total
Net Sales

·Earned
Royalty Rate and associated calculations

·Gross
Earned Royalty

·Adjustments
for Minimum Annual Royalty (MAR) and other creditable payments made

·Net
Earned Royalty due

 

Example

	Catalog Number	Product Name	Country	Units Sold	Gross Safes 

(US$)
	1	A	US	250	62,500
	1	A	UK	32	16,500
	1	A	France	25	15,625
	2	B	US	0	0
	3	C	US	57	57,125
	4	D	US	12	1,500
	 	 	Total Gross Sales	153,250
	 	 	Less Deductions:	 
	 	 	Freight	3,000
	 	 	Returns	7,000
	 	 	Total Net Sales	143,250
	 	 	 	 
	 	 	Royalty Rate	8%
	 	 	Royalty Due	11,460
	 	 	Less Creditable Payments	10,000
	 	 	Net Royalty Due	1,460

 

 

    	Page 29 of 31

    	 

    

 

APPENDIX G — ROYALTY PAYMENT
OPTIONS

 

The OTT License Number MUST appear on payments,
reports and correspondence.

 

Automated Clearing House (ACH) for payments through U.S.
banks only

 

The NIH encourages our licensees to submit electronic funds
transfer payments through the Automated Clearing House (ACH). Submit your ACH payment through the U.S. Treasury web site located
at: https://www.pay.gov. Locate the “NIH Agency Form” through the Pay.gov “Agency List”.

 

Electronic Funds Wire Transfers

 

The following account information is provided for wire payments.
In order to process payment via Electronic Funds Wire Transfer sender MUST supply the following information within the transmission:

 

Drawn on a U.S. bank account via FEDWIRE should
be sent directly to the following account:

 

	Beneficiary Account:	Federal Reserve Bank of New York or TREAS NYC
	Bank:	Federal Reserve Bank of New York
	ABA#	021030004
	Account Number:	
	Bank Address:	33 Liberty Street, New York, NY 10045
	Payment Details:	License Number (L-XXX-XXXX)
	 	Name of Licensee

 

Drawn on a foreign bank account should be
sent directly to the following account. Payment must be sent in U.S. Dollars (USD) using the following instructions:

 

	Beneficiary Account:	Federal Reserve Bank of New York/ITS or FRBNY/ITS
	Bank:	Citibank N.A. (New York)
	SWIFT Code:	CITTUS33
	Account Number:	
	Bank Address:	388 Greenwich Street, New York, NY 10013
	Payment Details (Line 70):	NIH 75080031
	 	License Number (L-XXX-XXXX)
	 	Name of Licensee
	 	 
	Detail of Charges (line 71a):	Charge Our

 

Checks

 

All checks should be made payable to “NIH Patent Licensing”

 

Checks drawn on a U.S. bank account
and sent by US Postal Service should be sent directly to the following address:

 

National Institutes of Health (NIH)

P.O. Box 979071

St. Louis, MO 63197-9000

 

Checks drawn on a U.S. bank account and sent by overnight
or courier should be sent to the following address:

 

    	Page 30 of 31

    	 

    

 

US Bank

Government Lockbox SL-MO-C2GL

1005 Convention Plaza

St. Louis, MO 63101

Phone: 314-418-4087

 

Checks drawn on a foreign bank account
should be sent directly to the following address:

 

National Institutes of Health (NIH)

Office of Technology Transfer

Royalties Administration Unit

6011 Executive Boulevard

Suite 325, MSC 7660

Rockville, Maryland 20852

 

    	Page 31 of 31Exhibit 10.41

 

 

NATIONAL INSTITUTES OF HEALTH

 

FIRST AMENDMENT TO L-035-2012/0

 

This is the first amendment (“First Amendment”)
of the agreement by and between the National Institutes of Health (“NIH”) within the Department of Health and Human
Services (“HHS”), and KineMed Inc. having an effective date of January 3, 2012 and having NIH Reference
Number L-035-2012/0 (“Agreement”). This First Amendment, having NIH Reference Number L-035-2012/1,
is made between the NIH through the Office of Technology Transfer, NIH, having an address at 6011 Executive Boulevard,
Suite 325, Rockville, Maryland 208523804, U.S.A., and KineMed, Inc., having an office at 5980 Horton Street, Suite 470, Emeryville,
CA 94608 (“Licensee”). This First Amendment includes, in addition to the amendments made below, 1) a
Signature Page, 2) Attachment 1 (Royalty Payment Information), and new Appendix D (Benchmarks and Performance).

 

WHEREAS, Licensee has represented in the annual report
received on January 23, 2013 that it cannot pay certain royalties due the NIH until third party financing is received for
commercial development of a Licensed Product.

 

WHEREAS, Licensee has represented that it has received
feedback from potential third party development partners that additional data is required for such third parties to provide financing
for commercial development of a Licensed Product.

 

WHEREAS, Licensee has entered a Collaborative Research
and Development Agreement (CRADA) with the National Heart Lung and Blood Institute (NHLBI) at the NIH on December 8, 2008,
once amended on August 20, 2012 to extend to December 31, 2013.

 

WHEREAS, Licensee has entered a Material Transfer Agreement
(MTA) on August 20, 2011 with National Center for Advancing Translational Sciences (NCATS), formerly the NIH Rapid Access to Interventional
Development (RAID) program, for access to materials and services necessary to prepare Licensed Product for an Investigational
New Drug (IND) filing at the Food and Drug Administration (FDA).

 

WHEREAS, Licensee represents that it is in good standing
with NCATS and the NHLBI and that both collaborations are still ongoing.

 

WHEREAS, the NIH has agreed to defer certain royalties
under the Agreement until the IND Filing, upon the condition that if Licensee has no interest in further commercial
development of Licensed Product after completion of the IND Filing, all Regulatory Filings, Data, Manufacturing Information,
Material and Supporting Material be returned to the NHLBI.

 

WHEREAS, the NIH agrees that if Licensee returns
all Regulatory Filings, Data, Manufacturing Information, Material, and Supporting Material to the NHLBI, the NIH shall cancel
the outstanding amount of the deferred royalties.

 

WHEREAS, Licensee agrees that if it desires to continue
further commercial development after completion of the IND Filing, Licensee shall pay all of the deferred royalties due
the NIH plus additional royalties as stipulated in Paragraph 9.8 of the Agreement.

 

    	Page 1
                                                                                                                                                                                               of 10

    	 

    

 

WHEREAS, Licensee also agrees that it will immediately
pay all of the deferred royalties due the NIH plus an additional royalty upon obtaining third party financing prior to the
IND Filing date, upon termination or expiration of the CRADA, or termination of the Agreement prior to the IND Filing date.

 

WHEREAS, Licensee agrees to pay patent expense royalties
currently due the NIH in accordance with this First Amendment and that all other provisions of the Agreement remain
the same.

 

WHEREAS, the NIH and Licensee desire to memorialize
Licensee’s direct payment of certain validation and maintenance expenses for European Application Number 05815961.7, which
has carried over from the proceeding Commercial Evaluation License effective August 23, 2010 between the NIH and Licensee.

 

WHEREAS, the NIH and the Licensee desire that
the Agreement be amended a first time as set forth below in order to provide an incentive for all parties to continue collaborating
towards a value adding milestone for commercial development of a Licensed Product under the CRADA, BrDGs Grant, and Agreement
and to set forth the aforementioned terms.

 

NOW, THEREFORE, in consideration of the mutual covenants and
promises contained herein, the NIH and the Licensee, intending to be bound, hereby mutually agree to the following:

 

		1)	The following modifications shall be made to the Agreement:

 

		a.	The following Paragraph 2.14 shall be added to the Agreement:

 

		2.14	“CRADA” shall mean Cooperative Research and Development Agreement between Licensee and the National Heart
Lung and Blood Institute dated December 8, 2008 (NIH Reference Number C005-2009).

 

		b.	The following Paragraph 2.15 shall be added to the Agreement:

 

		2.15	“BrIDGs Grant” shall mean the Material Transfer Agreement between Licensee and the National Center for Advancing
Translational Sciences (NCATS) dated October 21, 2011.

 

		c.	The following Paragraph 2.16 shall be added to the Agreement:

 

		2.16	“Deferred Royalties” shall mean the following royalties due the NIH:

 

		(a)	The Minimum Annual Royalty of Thirty Nine Thousand Six Hundred and Seventy One Dollars and Twenty Five Cents ($39,671.25) that
was originally due the NIH on March 2, 2013;

 

		(b)	The Third Installment of the Execution Royalty of One Hundred Thousand Dollars ($100,000) that was originally due the NIH
on January 1, 2013; and

 

		(c)	The Fourth Installment of the Execution Royalty of One Hundred Thousand Dollars ($100,000) that was originally due the NIH
July 3, 2013.

 

    	Page 2 of 10

    	 

    

 

		d.	The following Paragraph 2.17 shall be added to the Agreement:

 

		2.17	“Additional Royalties” shall be Thirty Five Thousand Dollars ($35,000).

 

		e.	The following Paragraph 2.18 shall be added to the Agreement:

 

		2.18	“IND Filing” shall mean the filing with the United States Food and Drug Administration (FDA) of an Investigational
New Drug (IND) Application in a form suitable for review and processing by the FDA.

 

		f.	The following Paragraph 2.19 shall be added to the Agreement:

 

		2.19	“Deferred Royalty Payment Date” shall mean December 31, 2014, which is the date that Licensee agrees to
complete the IND Filing as noted in Appendix D — Benchmarks and Performance.

 

		g.	The following Paragraph 6.13 shall be added to the Agreement:

 

		6.13	The NIH shall postpone Licensee’s obligation to pay the Deferred Royalties until the Deferred
Royalty Benchmark Date, upon which Licensee shall pay the NIH all Deferred Royalties and Additional
Royalties, subject to the following contingencies:

 

The following contingencies shall
result in immediate payment of the Deferred Royalties and the Additional Royalties due the NIH:

 

		(a)	Licensee receives financing allocated specifically for development of a Licensed Product in excess of One Million
Dollars ($1,000,000) prior to the Deferred Royalty Payment Date; or

 

		(b)	The CRADA and/or the Agreement are terminated prior to the Deferred Royalty Payment Date.

 

The following contingencies shall
result in cancellation of the Deferred Royalties and the Additional Royalties:

 

		(a)	Licensee submits the IND Filing;

 

		(b)	Licensee terminates the CRADA and the Agreement; and

 

		(c)	Licensee fulfills, to the NIH’s satisfaction, Paragraph 13.11 of the Agreement.

 

The following contingencies shall
result in the cancellation of the Additional Royalties:

 

		(a)	The data from the BrIDGs Grant indicates adverse toxicology or commercially difficult manufacturing issues that, within
industry standards and practices, would make further development imprudent;

 

    	Page 3 of 10

    	 

    

 

		(b)	Licensee terminates the CRADA and the Agreement; and

 

		(c)	Licensee fulfills, to the NIH’s satisfaction, Paragraph 13.11 of the Agreement.

 

		h.	The following Paragraph 13.11 shall be added to the Agreement:

 

		13.11	Upon termination of the Agreement, Licensee shall return all information and material associated with the CRADA and
BrIDGS Grant to the NIH. For avoidance of doubt, without limiting the NIH’s ability to request other
information and material associated with the CRADA and BrDGs Grant, Licensee shall return the following to the NIH:

 

		(a)	Any pre-clinical and clinical data collected by Licensee;

 

		(b)	Any regulatory filing submissions made to the Food and Drug Administration for a Licensed Product, including without
limitation the IND Filing, Drug Master File, and all correspondence with the Food and Drug Administration. Licensee
shall insure that the NIH has permission to access any such information at the Food and Drug Administration, including assigning
such Food and Drug Administration files to the NIH or third party designated by the NIH;

 

		(c)	All clinical material and information required to manufacture such clinical material; and

 

		(d)	All material and information used in studies to conduct pre-clinical research to support an IND
Filing.

 

		i.	Appendix D — Benchmarks and Performance shall be deleted and replaced with the attached Appendix D —
Benchmarks and Performance.

 

		2)	Upon execution of this First Amendment, Licensee agrees to
                                         the following:

 

		a.	Licensee shall pay the NIH the following royalties
                                         within thirty (30) days of execution of this First Amendment:

 

		i.	Past Prosecution Royalty of Twenty Thousand Dollars ($20,000) that was originally due September
15, 2012;

 

		ii.	Past Prosecution Royalty of Twenty Thousand Dollars ($20,000) that was originally due October 15, 2012; and

 

		iii.	Past Prosecution Royalty of Thirty One Thousand One Hundred Sixty Three Dollars and Seven Cents ($31,163.07) that was originally
due November 15, 2012.

 

For a total of Seventy One Thousand One Hundred and
Sixty Three Dollars and Seven Cents ($71,163.07) due the NIH.

 

    	Page 4 of 10

    	 

    

 

		b.	Licensee shall pay the NIH the Post License Patent Prosecution royalty of Thirty Thousand and Sixty Seven Dollars
and Three Cents ($30,067.03), originally due July 2, 2013, on or before December 31, 2013.

 

		3)	“EU Validation Expenses” shall mean all reasonable and actual out-of-pocket costs for the validation and
maintenance of European Patent Application Number 05815961.7 for issued patents in the following European Union member countries:

 

	NIH Ref No.	 	IC	 	Originating EP

Application No.	 	Country
	E-114-2004/0-FR-14	 	NHLBI	 	5815961.7	 	FRANCE
	E-114-2004/0-DE-12	 	NHLBI	 	5815961.7	 	GERMANY
	E-114-2004/0-1T-16	 	NHLBI	 	5815961.7	 	ITALY
	E-114-2004/0-ES-13	 	NHLBI	 	5815961.7	 	SPAIN
	E-114-2004/0-CH-11	 	NHLBI	 	5815961.7	 	SWITZERLAND
	E-114-2004/0-GB-15	 	NHLBI	 	5815961.7	 	UNITED KINGDOM

 

		4)	“PHS Contract Law Firm” shall mean Klarquist Sparkman LLP, having an office
at One World Trade Center, 121 S.W. Salmon Street, Suite 1600 Portland, Oregon 97204.

 

		5)	Licensee hereby agrees to continue to directly pay EU Validation Expenses per the provisions of Paragraph 6 (b) of
the Agreement. Licensee shall pay EU Validation Expenses directly to the PHS Contract Law firm or directly to the respective
European Union Patent Office in communication with the PHS Contract Law Firm. For avoidance of doubt, PHS, and not
Licensee, shall remain the client of the PHS Contract Law Firm.

 

		6)	Within sixty (60) days of the execution of this First Amendment, the Licensee shall pay the NIH an amendment
issue royalty in the sum of Ten Thousand US Dollars ($10,000), and payment options may be found in Attachment 1.

 

		7)	In the event any provision(s) of the Agreement is/are inconsistent with Attachment 1, such provision(s) is/are hereby
amended to the extent required to avoid such inconsistency and to give effect to the payment information in such Attachment 1.

 

		8)	All terms and conditions of the Agreement not herein amended remain binding and in effect.

 

		9)	The terms and conditions of
                                         this First Amendment shall, at the NIH’s sole option, be considered
                                         by the NIH to be withdrawn from the Licensee’s consideration and
                                         the terms and conditions of this First Amendment, and the First Amendment
                                         itself, to be null and void, unless this First Amendment is executed by the Licensee
                                         and a fully executed original is received by the NIH within sixty (60) days
                                         from the date of the NIH’s signature found at the Signature Page.

 

		10)	This First Amendment is effective upon the date executed by all parties.

 

SIGNATURES BEGIN ON NEXT PAGE

 

    	Page 5 of 10

    	 

    

 

FIRST AMENDMENT TO L-035-2012/0

 

SIGNATURE PAGE

 

In Witness Whereof, the parties have executed this First Amendment
on the dates set forth below. Any communication or notice to be given shall be forwarded to the respective addresses listed below.

 

	For the NIH:	 	 
	 	 	 
	/s/ Richard U. Rodriguez	 	9-27-13
	Richard U. Rodriguez	 	Date
	Director, Division of Technology Development and Transfer	 	 
	Office of Technology Transfer	 	 

 

National Institutes of Health

 

Mailing Address or E-mail Address for Agreement notices and
reports:

Chief, Monitoring & Enforcement Branch, DTDT

Office of Technology Transfer

National Institutes of Health

6011 Executive Boulevard, Suite 325

 

Rockville, Maryland 20852-3804 U.S.A.

 

E-mail: LicenseNotices_Reports@mail.nih.gov

 

For the Licensee (Upon information and belief, the undersigned
expressly certifies or affirms that the contents of any statements of the Licensee made or referred to in this document
are truthful and accurate.):

 

	/s/ Alexander Glass	 	9-30-13
	Signature of Authorized Official	 	Date

 

Name: Alexander Glass

Title: Chief Operating Officer

 

		I.	Official and
                                         Mailing Address for Agreement notices:

 

Name: Alexander Glass

 

Title: Chief Operating Officer

 

Mailing Address:

 

5980 Horton Street

Suite 470 

Emeryville, California 94608

 

    	Page 6 of 10

    	 

    

 

	Email Address:	 	 
	 	 	 
	Phone:	510-655-6625	 
	 	 	 
	Fax:	510-655-6506	 

 

		II.	Official and Mailing Address for Financial notices (the Licensee’s contact person for royalty payments):

 

	Alexander Glass	 
	Name	 
	 	 
	Chief Operating Officer	 
	Title	 
	 	 
	Mailing Address:	 
	 	 
	KineMed Inc.	 
	 	 
	5980 Horton St, Suite 470	 
	 	 
	Emeryville, CA 94608	 

 

	Email Address:	 	 
	 	 	 
	Phone:	510-655-6525	 
	 	 	 
	Fax:	510-655-6506	 

 

Any false or misleading statements made, presented, or submitted
to the Government, including any relevant omissions, under this Agreement and during the course of negotiation of
this Agreement are subject to all applicable civil and criminal statutes including Federal statutes 31 U.S.C. §§3801-3812
(civil liability) and 18 U.S.C. §1001 (criminal liability including fine(s) or imprisonment).

 

    	Page 7 of 10

    	 

    

 

ATTACHMENT 1 — ROYALTY PAYMENT
OPTIONS

 

The OTT License Number MUST appear on payments,
reports and correspondence.

 

Automated Clearing House (ACH) for payments through U.S.
banks only

 

The NIH encourages its licensees to submit electronic
funds transfer payments through the Automated Clearing House (ACH). Submit your ACH payment through the U.S. Treasury web site
located at: https://www.pay.gov. Locate the “NIH Agency Form” through the Pay.gov “Agency List”.

 

Electronic Funds Wire Transfers

 

The following account information is provided for wire payments.
In order to process payment via Electronic Funds Wire Transfer sender MUST supply the following information within the transmission:

 

Drawn on a U.S. bank account via FEDWIRE should
be sent directly to the following account:

 

	Beneficiary Account:	Federal Reserve Bank of New York or TREAS NYC
	Bank:	Federal Reserve Bank of New York
	ABA#	021030004
	Account Number:	
	Bank Address:	33 Liberty Street, New York, NY 10045
	Payment Details:	License Number (L-XXX-XXXX)
	 	Name of the Licensee

 

Drawn on a foreign bank account should be
sent directly to the following account. Payment must be sent in U.S. Dollars (USD) using the following instructions:

 

	Beneficiary Account:	Federal Reserve Bank of New York/ITS or FRBNY/ITS
	Bank:	Citibank N.A. (New York)
	SWIFT Code:	CITIUS33
	Account Number:	
	Bank Address:	388 Greenwich Street, New York, NY 10013
	Payment Details (Line 70):	NIH 75080031
	 	License Number (L-XXX-XXXX)
	 	Name of the Licensee
	Detail of Charges (line 71a):	Charge Our

 

    	Page 8 of 10

    	 

    

 

Checks 

 

All checks should be made payable to “NIH Patent
Licensing”

 

Checks drawn on a U.S. bank account
and sent by US Postal Service should be sent directly to the following address:

 

National Institutes of Health (NIH) P.O. Box
979071

 

St. Louis, MO 63197-9000

 

Checks drawn on a U.S. bank account and sent by overnight
or courier should be sent to the following address:

 

US Bank

Government Lockbox SL-MO-C2GL

1005 Convention Plaza

St. Louis, MO 63101 

Phone: 314-418-4087

 

Checks drawn on a foreign bank account
should be sent directly to the following address:

 

National Institutes of Health (NIH)

Office of Technology Transfer

Royalties Administration Unit

6011 Executive Boulevard

Suite 325, MSC 7660

Rockville, Maryland 20852

 

    	Page 9 of 10

    	 

    

 

APPENDIX D — BENCHMARKS AND PERFORMANCE

 

Licensee agrees to the following Benchmarks for
its performance under this Agreement and, within thirty (30) days of achieving a Benchmark, shall notify PHS
that the Benchmark has been achieved.

 

		I.	Initiate Preclinical Development Plan for a Licensed Product within three (3) months of the effective date of this Agreement.

 

		II.	Submit an IND Filing on or before December 31, 2014.

 

		III.	Initiate first Phase I clinical trial or foreign equivalent for Licensed Product by Fourth Quarter 2015.

 

		IV.	Initiate first Phase II clinical trial or foreign equivalent for Licensed Product by Fourth Quarter 2016.

 

		V.	Initiate first Phase III clinical trial or foreign equivalent for Licensed Product by Fourth Quarter 2017.

 

		VI.	File first U.S. New Drug Application (NDA) directed to a Licensed Product by Fourth Quarter 2019.

 

		VII.	File first submission to a foreign regulatory authority for market approval of a Licensed Product by Fourth Quarter
2019.

 

		VIII.	Gain first regulatory market
                                         approval from a regulatory authority for a Licensed Product by First Quarter 2021.

 

		IX.	Complete First Commercial Sale in the United States by Fourth Quarter 2022.

 

		X.	Complete First Commercial Sale in Australia by Fourth Quarter 2023.

 

		XI.	Complete First Commercial Sale in Canada by Fourth Quarter 2022.

 

		XII.	Complete First Commercial Sale in Europe by Fourth Quarter 2023.

 

		XIII.	Complete First Commercial Sale in Japan by Fourth Quarter 2024.

 

    	Page 10 of 10

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