Document:

Exhibit 10.1

 

Certain identified information has been excluded from the
document because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed. 

 

Amended
and Restated Collaboration AGREEMENT

 

THIS AMENDED AND
RESTATED COLLABORATION AGREEMENT (the “Agreement”) is dated as of June 19, 2019 by and between Checkpoint
Therapeutics, Inc., a Delaware corporation organized having its place of business at 2 Gansevoort Street, New York, NY 10014 (“CTI”),
and TG Therapeutics, Inc. located at 2 Gansevoort Street, New York, NY 10014 (“TGTX”). CTI, on the one hand,
and TGTX, on the other hand, shall each be referred to herein as a “Party” or, collectively, as the “Parties.”

 

RECITALS:

 

WHEREAS, CTI
is party to that certain license agreement (the “License Agreement”) dated March 3, 2015 with Dana Farber Cancer Institute
(“DFCI”);

 

WHEREAS, DFCI
is the owner of certain rights in the DFCI Technology; and

 

WHEREAS, DFCI
has licensed rights to the DFCI Technology to CTI; and

 

WHEREAS, CTI
is permitted to extend the rights granted to it under the DFCI Technology to Affiliates (as defined in the License Agreement);
and

 

WHEREAS, CTI
has developed and licensed the rights to Additional PD-L1 Intellectual Property, including rights under CTI Patents (as defined,
below) and that certain collaboration agreement (“Collaboration Agreement”) dated January 22, 2019 with Adimab LLC
(“Adimab”), a true and correct copy of which is attached hereto as Exhibit A; and

 

WHEREAS, TGTX,
an Affiliate of CTI, is engaged in the research, development, manufacturing and commercialization of pharmaceutical products, and
TGTX is interested in developing and commercializing products based on the DFCI Patents and Additional PD-L1 Intellectual Property
(together, the “Licensed Technology”); and

 

WHEREAS, the
Parties signed a Collaboration Agreement (the “Original Agreement”) on March 3, 2015 (the “Effective
Date”), and the Parties wish to amend such Original Agreement as provided herein; and

 

WHEREAS, CTI
desires to continue to collaborate with TGTX and extend to TGTX the rights granted to it under the Licensed Technology in order
to benefit the public by disseminating the results of its research via the commercial development, manufacture, distribution and
use of Licensed Products (as defined below); and

 

WHEREAS, TGTX
desires to continue to collaborate with CTI and to exercise the rights granted to CTI, on an exclusive basis, so that it can exclusively
use, develop and commercialize the Licensed Technology in and for a defined field of use; and

 

     

     

    

 

WHEREAS, in
the event TGTX is no longer an Affiliate of CTI, TGTX and CTI intend for the rights extended to TGTX hereunder to continue as a
Sublicense (as defined in the License Agreement) as permitted by Section 2.3 of the License Agreement and Section 3.2(b)(ii) of
the Collaboration Agreement with Adimab.

 

NOW, THEREFORE,
in consideration of the foregoing and of the various promises and undertakings set forth herein, the Parties agree as follows:

 

ARTICLE
I

DEFINITIONS

 

Unless otherwise specifically
provided herein, the following terms shall have the following meanings:

 

1.1           “Affiliate”
means a Person or entity that controls, is controlled by or is under common control with a Party, but only for so long as such
control exists. For the purposes of this Section 1.1, the word “control” (including, with correlative meaning,
the terms “controlled by” or “under common control with”) means the actual power, either
directly or indirectly through one or more intermediaries, to direct the management and policies of such Person or entity, whether
by the ownership of at least 50% of the voting stock of such entity, or by contract or otherwise. TGTX and CTI acknowledge and
agree that TGTX is an Affiliate of CTI.

 

1.2           "Antibody"
means any antibody, any gene expressing such an antibody, any hybridoma producing such antibody, or any fragment, variant, derivative
or construct thereof, or antibody fusion protein produced therefrom (including PEDgylated or multimeric versions thereof, whether
polyclonal, monoclonal, multi-specific antibodies (e.g., bi-specific antibodies), human, humanized, chimeric, murine, synthetic,
or from any other source), including without limitation (a) the full immunoglobin molecules (e.g., the IgG, IgM, IgE, IgA, and
IgD molecules), and (b) the antigen binding portions including Fab, Fab', F(ab')2, Fv, dAb, and CDR fragments, chimeric antibodies,
diabodies, polypeptides, linear antibodies and single-chain antibodies (scFv) that contain any portion of an immunoglobulin that
is sufficient to confer specific binding to an antigen. 

 

1.3           “Autoimmune
Diseases” means any disease which results from a loss of immune tolerance to self-antigens,
including without limitation multiple sclerosis, rheumatoid arthritis, systemic lupus erythematosus, sjogren syndrome, celiac disease,
Graves’ disease, myasthenia gravis, Type I diabetes, idiopathic thrombocytopenic purpura, pemphigus vulgaris, among others,
including any presentation or manifestation thereof.

 

1.4           “Calendar
Quarter” means each three-month period commencing January 1, April 1,
July 1 or October 1, provided however that (a) the first Calendar Quarter of the Term shall extend from the Effective
Date to the end of the first full Calendar Quarter thereafter, and (b) the last Calendar Quarter of the Term shall end upon
the termination or expiration of this Agreement.

 

1.5           “Calendar
Year” means the period beginning on the 1st of January and ending on
the 31st of December of the same year, provided however that (a) the first Calendar Year of the Term shall commence
on the Effective Date and end on December 31 of the same calendar year as the Effective Date, and (b) the last Calendar
Year of the Term shall commence on January 1 of the Calendar Year in which this Agreement terminates or expires and end on
the date of termination or expiration of this Agreement.

 

    	 	2	 

     

    

 

1.6           “Combination
Product” means a product (a) containing a Licensed Product together with one or
more other active ingredients, or (b) with one or more products, devices, pieces of equipment or components, but sold for an integrated
price (e.g., with the purchase of one product the customer gets a coupon for the other) or for a single price.

 

1.7           “Commercialization”
or “Commercialize” means any and all activities undertaken at any time
for a particular Licensed Product and that relate to the manufacturing, marketing, promoting, distributing, importing or exporting
for sale, offering for sale, and selling of the Licensed Product, and interacting with Regulatory Authorities regarding the foregoing.

 

1.8           “Commercially
Reasonable Efforts” means, with respect to the efforts to be expended by a Party
or such Party’s applicable Affiliate with respect to any objective, such reasonable, diligent, and good faith efforts normally
used to accomplish a similar objective under similar circumstances by a similarly-situated company. Commercially Reasonable Efforts
will not mean that a Party commits that it or such Party’s applicable Affiliate will actually accomplish the applicable task.

 

1.9           “Controlled”
means, with respect to (a) DFCI Patents, (b) Know-How, (c) Antibodies, (d) DFCI Materials, or (e) Additional PD-L1
Intellectual Property, that a Party or one of its Affiliates owns or has a license or sublicense to such DFCI Patents, Know-How,
Antibodies, DFCI Material (or in the case of DFCI Material, has the right to physical possession of such material), or Additional
PD-L1 Intellectual Property, and has the ability to grant a license or sublicense to, or assign its right, title and interest in
and to, such DFCI Patents, Know-How, Antibodies, DFCI Material, or Additional PD-L1 Intellectual Property as provided for in this
Agreement without violating the terms of any agreement or other arrangement with any Third Party.

 

1.10         
“Covered” means, with respect to a Licensed
Product, that the practicing, manufacturing, importing, using, selling, or offering for sale of such Licensed Product would, but
for ownership of or a license granted hereunder under Additional PD-L1 Intellectual Property or DFCI’s relevant DFCI Patents,
infringe a Valid Claim of Additional PD-L1 Intellectual Property or DFCI’s relevant DFCI Patents in the country in which
the activity occurs (or, in the case of a Valid Claim that has not yet issued, would infringe such Valid Claim if it were to issue).

 

1.11         “Derivative"
means a DFCI Antibody that has (a) been modified via isotype switching; (b) undergone a modification of effector function; (c)
been adapted to enable the antibody to carry payloads; (d) been altered to change the expression characteristics, stability or
biological half-life of the antibody; or (e) been mutated using an affinity maturation strategy designed to modify the affinity
of either the variable regions and/or the constant regions of the antibody for any ligands, antigens or receptors. Derivatives
may be full length antibodies, monoclonal and polyclonal antibodies, multispecific antibodies (e.g., bi-specific antibodies) and
antibody fragments (including Fab, Fab', F(ab')2, Fy fragments, diabodies, linear antibodies and single-chain antibodies), in each
case, of any origin, whether human, humanized, chimeric or otherwise.

 

    	 	3	 

     

    

 

1.12         “Development”
or “Develop” means, with respect to a Licensed Product, the performance of
all preclinical and clinical development (including, without limitation, toxicology, pharmacology, test method development and
stability testing, process development, formulation development, quality control development, statistical analysis), clinical trials,
and manufacturing and regulatory activities that are required to obtain Regulatory Approval of such Licensed Product.

 

1.13         DFCI
Antibodies" means the Antibodies supplied by or on behalf of DFCI to CTI under this
Agreement as identified in Schedule 4.

 

1.14         “DFCI
Know-How” means any and all Know-How that (a) is Controlled by DFCI or any of its Affiliates as of the Effective Date
and (b) was developed in the laboratory of Dr. Wayne Marasco in the performance of research directly pertaining to the DFCI Patents
and (c) is necessary for CTI to research, Develop, manufacture, use, or Commercialize Licensed Products. The DFCI Know-How is described
in Schedule 2 hereto.

 

1.15         
[Reserved]

 

1.16         “DFCI
Patents” means (a) those patents and patent applications set forth on Schedule
1 hereto; (b) any additions, divisionals, continuations, conversion, supplemental examinations, extensions, term restorations,
registrations, reinstatements, amendments, reissuances, corrections, substitutions, re-examinations, registrations, revalidations,
supplementary protection certificates, renewals, and foreign counterparts of the patents and patent applications mentioned in clause
(a) above; (c) all patents issuing from any of the patents and patent applications mentioned in clause (a) or (b) above and any
foreign counterparts of any such patents and patent applications, and which shall include, in any case, patents surviving post
grant review and inter partes review.

 

1.17         “DFCI
Technology” means the DFCI Patents, DFCI Know-How, DFCI Antibodies, Derivatives,
and DFCI Materials. 

 

1.18         “EMA”
means the European Medicines Agency or any successor agency.

 

1.19         “European
Commission” means the authority within the European Union that has the legal authority
to grant Regulatory Approvals in the European Union based on input received from the EMA or other competent Regulatory Authorities.

 

1.20         “FDA”
means the United States Food and Drug Administration, or a successor federal agency thereto.

 

1.21         “Field”
means all prophylactic, palliative, therapeutic or diagnostic uses in humans or animals
for the prevention, diagnosis and treatment of hematological malignancies, including, without limitation, all Leukemia’s,
Lymphoma’s, Multiple Myeloma and Waldentroms Macroglobulemia, but specifically excluding use in chimeric antigen receptor
technology. Additionally, upon exercise of the Autoimmune Option, the Field shall include the prevention, diagnosis and treatment
of Autoimmune Diseases.

 

    	 	4	 

     

    

 

1.22         “First
Commercial Sale” means, with respect to a Licensed Product in any country, the first
commercial transfer or disposition for value of such Licensed Product in the Field in such country to a Third Party, by TGTX, by
an Affiliate of TGTX or by a Sublicensee after Regulatory Approval therefor has been obtained in such country, for cash or non-cash
consideration to which a fair market value can be assigned for purposes of determining Net Sales.

 

1.23         “GAAP”
means United States generally accepted accounting principles.

 

1.24         “Governmental
Body” means any: (a) nation, principality, state, commonwealth, province, territory,
county, municipality, district or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign or other
government; (c) governmental or quasi-governmental authority of any nature (including any governmental division, subdivision,
department, agency, bureau, branch, office, commission, council, board, instrumentality, officer, official, representative, organization,
unit, body or entity and any court or other tribunal); (d) multi-national or supranational organization or body; or (e) individual,
entity, or body exercising, or entitled to exercise, any executive, legislative, judicial, administrative, regulatory, police,
military or taxing authority or power of any nature.

 

1.25         “Know-How”
means any scientific or technical information, results and data of any type whatsoever,
in any intangible form whatsoever, that is not in the public domain or otherwise publicly known and is not claimed or disclosed
in a patent or pending patent application, including practices, protocols, regulatory filings, scientific techniques, works of
authorship, plans, data (including, but not limited to, pharmacological, biological, chemical, toxicological, clinical and analytical
information, quality control, trial and stability data), data analyses, reports, studies and procedures, designs for experiments
and tests and results of experimentation and testing (including results of research or development), summaries and information
contained in submissions to and information from ethical committees, the FDA or other Regulatory Authorities, and manufacturing
process and development information. The fact that an item is known to the public shall not be taken to exclude the possibility
that a compilation including the item, and/or a development relating to the item, is (and remains) not known to the public. “Know-How”
excludes Additional PD-L1 Intellectual Property, DFCI Patents, DFCI Antibodies, and DFCI Materials.

 

1.26         “Law”
or “Laws” means all applicable laws, statutes, rules, regulations,
ordinances and other pronouncements having the binding effect of law of any Governmental Body.

 

1.27         “Licensed
Product” means any pharmaceutical product, in any dosage form, preparation, composition,
formulation, presentation or package configuration, (a) that is Covered in whole or in part by a Valid Claim in the DFCI Patents
or Additional PD-L1 Intellectual Property, (b) that incorporates, constitutes, or contains
DFCI Antibodies or Derivatives as an active ingredient, or (c) that shares at least [ * ]% of the amino acid sequence identity
(combined or in the aggregate) to all the complementarity determining regions (CDRs) of any DFCI Antibodies or Derivatives and
made using DFCI Technology or Additional PD-L1 Intellectual Property.

 

    	 	5	 

     

    

 

1.28         “Licensed
Process” means processes which, (a) in the course of being practiced, is Covered
in whole or in part by a Valid Claim in the Additional PD-L1 Intellectual Property or DFCI Patents, or (b) which incorporates or
uses DFCI Antibodies or Derivatives in whole or in part. 

 

1.29         
“NDA” means a New Drug Application submitted
pursuant to the requirements of the FDA, as more fully defined in 21 U.S. CFR § 314.3 et seq., a Biologics License Application
submitted pursuant to the requirements of the FDA, as more fully defined in 21 U.S. CFR § 601, and any equivalent application
submitted in any country, including a European Marketing Authorization Application, together, in each case, with all additions,
deletions or supplements thereto.

 

1.30         “NDA
Approval” means the receipt of notice from the relevant US Regulatory Authority
that an NDA for a Licensed Product has met all the criteria for marketing approval.

 

1.31         “Net
Sales” means the gross income derived by TGTX or its Affiliates or Sublicensees
to unrelated Third Parties for a Licensed Product in the Field in bona-fide arms-length transactions, less the following deductions,
which may not exceed reasonable and customary amounts in the country in which the transaction occurs:

 

		(a)	Normal and customary trade, quantity, cash and discounts
and credits allowed and taken;

 

		(b)	Discounts, refunds, rebates, chargebacks, retroactive price
adjustments, and any other allowances given and taken which effectively reduce the net selling price, including, without limitation,
Medicaid rebates, institutional rebates or volume discounts;

 

		(c)	Product returns and allowances;

 

		(d)	Administrative fees paid to group purchasing organizations (e.g., Medicare) and government-mandated
rebates;

 

		(e)	Shipping, handling, freight, postage, insurance and transportation
charges, but all only to the extent included as a separate line item in the gross amount invoiced;

 

		(f)	Any tax, tariff or duties imposed on the sale, delivery
or use of the Licensed Product, including, without limitation, sales, use, excise or value added taxes and customs and duties,
but all only to the extent included as a separate line item (e.g., “taxes”) in the gross amount invoiced.

 

		(g)	Bad debt actually written off during the accounting period
(provided, that any bad debt write-off so taken which is later reversed shall be added back to Net Sales in the accounting period
in which the reversal occurs).

 

    	 	6	 

     

    

 

No deduction shall
be made for any item of cost incurred by TGTX, its Affiliates or Sublicensees in Developing or Commercializing Licensed Products
except as permitted pursuant to clauses (a) through (g) of the foregoing.

 

Net Sales includes
the fair market value of any non-cash consideration from sale of Licensed Products received by TGTX, its Affiliates or Sublicenses.
Licensed Products are considered “sold” when billed, invoiced, or payment is received, whichever occurs first.

 

Notwithstanding the
foregoing, amounts invoiced by TGTX and its Affiliates and Sublicensees for sales of Licensed Products among TGTX and its Sublicensees
and their respective Affiliates for resale shall not be included in the computation of Net Sales except where such purchasing party
is an end user or consumer of Licensed Products.

 

Net Sales of any Combination
Product (as defined below) for the purpose of calculating royalties due under this Agreement shall be determined on a country-by-country
basis as follows:  the Net Sales of the Combination Product (prior to application of the following adjustment) shall be multiplied
by the fraction A/(A+B), where A is the net selling price in such country of a Licensed Product without the additional active ingredient
in the Combination Product, if sold separately for the same dosage as contained in the Combination Product, and B is the net selling
price in such country of any other active ingredients (or delivery device) in the combination if sold separately for the same dosage
(or form) as contained in the Combination Product.  All net selling prices of the elements of such end-user product or service
shall be calculated as the average net selling price of the said elements during the applicable accounting period for which the
Net Sales are being calculated.  In the event that, in any country, no separate sale of either such above-designated Licensed
Product (containing only such Licensed Product and no other active ingredients) or any one or more of the active ingredients included
in such Combination Product are made during the accounting period in which the sale was made or if the net selling price for an
active ingredient cannot be determined for an accounting period, Net Sales for purposes of determining payments under this Agreement
shall be calculated by multiplying the sales price of the Combination Product by the fraction C/(C+D) where C is the standard fully-absorbed
manufacturing cost of the Licensed Product portion of the combination, and D is the standard fully-absorbed manufacturing cost
of the other active ingredients or components included in the Combination Product, as determined by TGTX using its standard accounting
procedures consistently applied. In the event that the standard fully-absorbed manufacturing cost of the Licensed Product and/or
the other active ingredients or components included in such Combination Product cannot be determined, Net Sales allocable to the
Licensed Product in each such country shall be determined by mutual agreement reached in good faith by the parties prior to the
end of the accounting period in question based on an equitable method of determining same that takes into account, on a country-by-country
basis, all relevant factors (including variations in potency, the relative contribution of each active ingredient in the combination,
and relative value to the end user of each active ingredient).

 

1.32         “Person”
means any natural person, corporation, firm, business trust, joint venture, association,
organization, company, partnership or other business entity, or any government or agency or political subdivision thereof.

 

    	 	7	 

     

    

 

1.33         
“Phase I Trial” means a clinical trial
of a Licensed Product in human patients designated as a Phase I Trial and conducted primarily for the purpose of determining the
safety of and/or the metabolism and pharmacologic actions of the Licensed Product in humans, as described under 21 CFR § 312.21(a)
(as hereafter modified or amended) and any of its foreign equivalents. For purposes of this definition, Phase I Trial shall specifically
exclude trials in healthy volunteers.

 

1.34         “Phase II
Trial” means a clinical trial of a Licensed Product, designated as a Phase II Trial
and the principal purpose of which is to make a preliminary determination that such Licensed Product is safe and active in a patient
population for its intended use and is designed to obtain sufficient information about such Licensed Product’s efficacy to
permit the design of a Phase III Trial(s), and generally consistent with 21 CFR § 312.21(b). For purposes of this definition,
Phase II trial shall specifically exclude expansion cohorts from Phase I Trial(s).

 

1.35         “Phase III
Trial” means a clinical trial of a Licensed Product in human patients, which is
designated as a Phase III Trial or a pivotal trial and is designed (a) to establish that the Licensed Product is safe and
efficacious for its intended use; (b) to define warnings, precautions and adverse reactions that are associated with the Licensed
Product in the dosage range to be prescribed; and (c) to be, either by itself or together with one or more other clinical
trials having a comparable design and size, the final human clinical trial in support of Regulatory Approval of the Licensed Product,
and (d) consistent with 21 CFR § 312.21(c) (as hereafter modified or amended) and any of its foreign equivalents.

 

1.36         “Regulatory
Authority” means (a) the FDA, (b) the EMA or the European Commission,
or (c) any regulatory body with similar regulatory authority over pharmaceutical or biotechnology products in any other jurisdiction
anywhere in the world.

 

1.37         “Regulatory
Approval” means any and all approvals, licenses, registrations, or authorizations
of the relevant Regulatory Authority, necessary for the Development, manufacture, use, storage, import, transport and Commercialization
of a given Licensed Product in a particular country or jurisdiction. For the avoidance of doubt, Regulatory Approval outside of
the United States shall include any pricing or marketing approval needed prior to the sale of a Licensed Product in the Field.

 

1.38         “Royalty
Term” means, on a Licensed Product-by-Licensed Product and country-by-country basis,
the period from the First Commercial Sale of a given Licensed Product in such country until the later of (i) twelve (12) years
after First Commercial Sale of the applicable Licensed Product in such country, or (ii) the expiry of the last-to-expire DFCI Patent
or Additional PDL-1 Intellectual Property containing a Valid Claim to the Licensed Product in such country. 

 

1.39         
“Sublicensee” means a Person, other than an
Affiliate of TGTX, to which TGTX (or its Affiliate) has, pursuant to Section 2.3, granted sublicense rights under any of the
license rights granted under Section 2.1. “Sublicense” shall be construed accordingly.

 

    	 	8	 

     

    

 

1.40         
“Sublicense Revenue" means any payments or other consideration that TGTX actually
receives from a Sublicensee as consideration for the grant of a Sublicense, including, without limitation, milestone payments,
license fees, license maintenance fees and equity. Sublicense Revenue excludes (i) purchases of equity or debt of TGTX, (ii) payments
made for TGTX’s performance of any research, Development, or Commercialization of any Licensed Product, (iii) (b) royalties
on Net Sales (or, in the case of a profit sharing deal structure, shares of net profits) which are covered in Section 5.9, and
(iv) any payment or reimbursement of any costs or expenses incurred by TGTX for filing, prosecution, maintenance, or defense of
any DFCI Patents or CTI Patents. In the event such consideration received from a Sublicensee is not cash, Sublicense Revenue shall
be calculated by TGTX based on the fair market value of such consideration, at the time of the transaction, assuming an arm’s
length transaction made in the ordinary course of business.

 

1.41         “Tax”
or “Taxes” means any federal, state, local or foreign income, gross
receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs
duties, capital stock, franchise, profits, withholding, social security, unemployment, disability, real property, personal property,
sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever,
including any interest, penalty, or addition thereto, whether disputed or not.

 

1.42         “Third
Party” means any Person other than Adimab, DFCI, CTI, TGTX, or Affiliates of either
of them, or any Sublicensees. 

 

1.43         “Third
Party Action” means any claim or action made by a Third Party against a Party that
claims that a Licensed Product, or its use, Development, manufacture or sale infringes such Third Party’s intellectual property
rights.

 

1.44         
“United States” or “US” means
the United States of America and its territories and possessions.

 

1.45         “Valid
Claim” means (a) a claim of an issued and unexpired patent that has not been held permanently revoked, invalid or unenforceable
by a patent office, court or other governmental agency of competent jurisdiction in a final and non-appealable judgment (or judgment
from which no appeal was taken within the allowable time period) and that is not admitted to be invalid or unenforceable through
reissue, disclaimer or otherwise (i.e. only to the extent the subject matter is disclaimed or is sought to be deleted or amended
through reissue or (b) a claim of a pending patent application within DFCI Patents or Additional PD-L1 Intellectual Property that
has not been abandoned, finally rejected or expired without the possibility of appeal or refiling, provided that (i) Valid Claim
shall exclude any such pending claim in an application that has not been granted within the latter of five (5) years after the
Effective Date or seven (7) years following the earliest priority filing date for such application (unless and until such claim
is granted) and (ii) Valid Claim will exclude any such pending claim that does not have a reasonable bona fide basis for patentability,
in either case of (i) or (ii), unless and until such claim is granted. Notwithstanding the foregoing, in the event that a claim
in a pending patent application is involved in an interference action declared by the US Patent and Trademark Office or any analogous
patentability determination by any other national patent office, and, at the time such proceeding is filed or initiated such claim
is a Valid Claim, the time period set forth in subsection (i) above will be stayed for the pendency of such proceeding. 

 

    	 	9	 

     

    

 

1.46         “CTI
Patents” means (a) that patent applications set forth as CTI Patents in Schedule 1 hereto; (b) any additions divisionals,
continuations, conversion, supplemental examinations, extensions, term restorations, registrations, reinstatements, amendments,
reissuances, corrections, substitutions, re-examinations, registrations, revalidations, supplementary protection certificates,
renewals, and foreign counterparts of the patent application mentioned in clause (a) above; (c) all patents issuing from the patent
applications mentioned in clause (a) or (b) above and any foreign counterparts of any such patents and patent applications, and
which shall include, in any case, patents surviving post grant review and inter partes review.

 

1.47         “Marketing
Approval” each means, within any given country, approval to market a Licensed Product legally as a drug or biologic,
including approval of a Biologic License Application (as defined in the U.S. Federal Food, Drug and Cosmetics Act and the regulations
promulgated thereunder (21 C.F.R. §§ 600-680) in the United States, or approval of a comparable filing in the United
States or any other jurisdiction. Pricing approval need not be obtained in order for Marketing Approval to be achieved.

 

1.48         “Additional
PD-L1 Intellectual Property” means CTI Patents and any patents licensed to CTI under the Collaboration Agreement with
Adimab (namely, Adimab Program Antibody Patents and Adimab Platform Patents).

 

1.49         
“Licensed Patents” means DFCI Patents, CTI Patents, Adimab Program Antibody Patents and Adimab Platform Patents.

 

1.50         
“Adimab Program Antibody Patents” means (a) that patent applications set forth
in Schedule 1 hereto; (b) any additions divisionals, continuations, conversion, supplemental examinations, extensions, term restorations,
registrations, reinstatements, amendments, reissuances, corrections, substitutions, re-examinations, registrations, revalidations,
supplementary protection certificates, renewals, and foreign counterparts of the patent application mentioned in clause (a) above;
(c) all patents issuing from the patent applications mentioned in clause (a) or (b) above and any foreign counterparts of any such
patents and patent applications, and which shall include, in any case, patents surviving post grant review and inter partes
review.

 

1.51         “Adimab
Platform Patents” means (a) that patent applications set forth in Schedule 1 hereto; (b) any additions divisionals, continuations,
conversion, supplemental examinations, extensions, term restorations, registrations, reinstatements, amendments, reissuances, corrections,
substitutions, re-examinations, registrations, revalidations, supplementary protection certificates, renewals, and foreign counterparts
of the patent application mentioned in clause (a) above; (c) all patents issuing from the patent applications mentioned in clause
(a) or (b) above and any foreign counterparts of any such patents and patent applications, and which shall include, in any case,
patents surviving post grant review and inter partes review.

 

1.52         CTI
Antibodies" means the Antibodies supplied by or on behalf of CTI to TGTX under this
Agreement as identified in Schedule 3.

 

    	 	10	 

     

    

 

ARTICLE II

LICENSES AND OTHER RIGHTS

 

2.1           Grant
of License to TGTX. 

 

(a)          Subject
to the terms and conditions of this Agreement, the Collaboration Agreement with Adimab, the excluded rights under Section 3.2(b)(ii)
of the Collaboration Agreement with Adimab, the License Agreement, and the reserved rights described in Section 2.4 and Section
2.5 of the License Agreement, effective immediately at the time TGTX is no longer deemed to be an Affiliate of CTI (following receipt
by one Party of a written notice from the other Party), CTI hereby grants to TGTX, and TGTX hereby accepts, an exclusive, worldwide,
royalty-bearing right and license (with the right to sublicense, subject to the provisions of Section 2.3) under the Additional
PD-L1 Intellectual Property and DFCI Patents to (i) research, Develop, manufacture, have manufactured, use, import and Commercialize
and have Commercialized the Licensed Products, in and for the Field and (ii) to practice and have practiced any Licensed Processes,
in and for the Field. CTI and its Affiliates grant no licenses or rights by implication, estoppel or otherwise under any other
patent applications or patents owned in whole or in part by CTI other than as expressly set forth herein. 

 

(b)          
Pursuant to an obligation imposed on a sublicensee under Section 3.2(b)(iii) of the Collaboration Agreement with
Adimab, TGTX, by executing this Agreement, explicitly agrees to comply with all applicable
terms of the Collaboration Agreement with Adimab, including Section 9.3 (Commitments Regarding Program-Benefited Antibodies) thereof.

 

2.2           Affiliates.
Effective immediately at the time TGTX is no longer deemed to be an Affiliate of CTI (following receipt by one Party of a written
notice from the other Party), TGTX is entitled to extend its licenses under this Article II to its Affiliates, consistent with
all of the terms and conditions of this Agreement. If TGTX does extend its license and an Affiliate assumes obligations under the
Agreement, TGTX shall be responsible and liable for the acts or omissions of the Affiliate in the exercise of rights under this
Agreement. If CTI has a claim arising under this Agreement against an Affiliate, CTI may seek a remedy directly against TGTX and
may, but is not required to, seek a remedy against the Affiliate. Any termination of the Agreement under Article X as to TGTX also
constitutes termination as to any Affiliates.

 

2.3           Grant
of Sublicenses by TGTX. Effective immediately at the time TGTX is no longer deemed to
be an Affiliate of CTI (following receipt by one Party of a written notice from the other Party), TGTX shall have the right, in
its sole discretion, to grant Sublicenses, in whole or in part, under the license granted in Section 2.1; provided, however, that
the granting by TGTX of a Sublicense shall not relieve TGTX of any of its obligations hereunder; and provided, further, that TGTX’s
right to grant a Person a Sublicense shall be subject to TGTX including within such Sublicense express provisions binding the Sublicensee
to terms and condition consistent with those contained herein. TGTX shall be and remain fully responsible and primarily liable
for the compliance by Sublicensees with the terms and conditions of this Agreement (as applicable to them) as if such Sublicensees
were TGTX hereunder. TGTX shall promptly provide a copy of each executed sublicense agreement and any modifications of the sublicense
agreement (provided that such copy may be redacted to remove commercially sensitive terms that are not necessary to confirm compliance
with the terms and conditions of this Agreement) following execution of such agreement.

 

    	 	11	 

     

    

 

2.4           Delivery
of DFCI Know-How, DFCI Antibodies, and CTI Antibodies. Effective immediately at the time
TGTX is no longer deemed to be an Affiliate of CTI, CTI shall deliver to TGTX DFCI Know-How, DFCI Antibodies, and CTI Antibodies
within sixty (60) days of the Effective Date of this Agreement.

 

2.5           Extension
of Rights. During such time as TGTX is deemed an Affiliate of CTI, CTI extends to TGTX
all of its rights under the Collaboration Agreement with Adimab (except Adimab Materials, Optioned Program Antibody Know-How and
Program Antibody Know-How), License Agreement (except CAIX) subject to the terms and conditions of this Agreement, the Collaboration
Agreement with Adimab and the License Agreement, provided that such rights shall be limited to the Field and shall exclude the
right to make and have made Licensed Products. TGTX hereby assumes the obligations of CTI under the Collaboration Agreement with
Adimab and License Agreement with respect to its exercise of rights thereunder. Such extension of rights shall automatically terminate
at the time TGTX is no longer deemed to be an Affiliate of CTI. It is the intention of TGTX and CTI for this Agreement to be consistent
with the Collaboration Agreement with Adimab and the License Agreement. During the term of this Agreement, if CTI shall default
on any obligations owed Adimab or DFCI then TGTX shall have the right to cure such defaults and set any amounts incurred by TGTX
in curing such defaults against any future payments TGTX may owe to CTI. 

 

ARTICLE III

RIGHTS, DUTIES AND DILIGENCE 

 

3.1           Diligence
by TGTX. TGTX shall use Commercially Reasonable Efforts to Develop and to Commercialize
Licensed Products targeting PD-L1 and GITR in the Field. The Parties acknowledge that TGTX may Develop and Commercialize Licensed
Products that are a Combination Product containing one or more DFCI Antibodies, CTI Antibodies, or Derivatives thereof. Except
as otherwise provided herein or agreed upon in writing, CTI agrees that it will not make, use or sell Licensed Products in the
Field (“Exclusivity Covenant”). In addition, TGTX shall have the option (the “Autoimmune Option”) to include
Autoimmune Diseases in the Field by providing notice to CTI and making a $1,000,000 payment. Such Autoimmune Option can be exercised
up to 7 years from the date of the Original Agreement. 

 

3.2           Projected
Milestone Dates. TGTX shall use its commercially reasonable efforts to meet the following
milestones (“Milestones”) by the dates specified in this paragraph, subject to annual adjustment as described below.

 

For purposes of this Section 3.2, CTI will consider
efforts of an Affiliate or Sublicensee as efforts of TGTX.

 

    	 	12	 

     

    

 

 

		(a)	Milestone Dates for a Licensed Product Targeting PD-L1

 

 

	Milestone	Achievement Date
	-     [
                                         * ] for first PD-L1

                                                                                Licensed Product
	[ * ] years from the Effective Date
	-     [
                                         * ] for first PD-L1

                                                                                Licensed Product   
	[ * ] years from the Effective Date
	-     [ * ] for first PD-L1

                                                                                Licensed Product  
	[ * ] years from the Effective Date
	-     [
                                         * ] for first PD-L1

                                                                                Licensed Product  
	[ * ] years from the Effective Date
	-     [
                                         * ] for first PD-L1

                                                                                Licensed Product     
	[ * ] years from the Effective Date
	-     [
                                         * ] for first PD-L1

                                                                                Licensed Product   
	[ * ] years from the Effective Date
	-     [
                                         * ] for first PD-L1

                                                                                Licensed Product
	[ * ] Years from the Effective Date

 

		(b)	Milestone Dates for a Licensed Product Targeting GITR

 

	Milestone	Achievement Date
	-    [
                                         * ] for first GITR

                                                                                Licensed Product
	[ * ] years from the Effective Date
	-    [
                                         * ] for first GITR

                                                                                Licensed Product   
	[ * ] years from the Effective Date
	-    [
                                         * ] for first GITR

                                                                                Licensed Product  
	[ * ] years from the Effective Date
	-    [
                                         * ] for first GITR

                                                                                Licensed Product  
	[ * ] years from the Effective Date
	-    [
                                         * ] for first GITR

                                                                                Licensed Product     
	[ * ] years from the Effective Date
	-    [
                                         * ] for first GITR

                                                                                Licensed Product   
	[ * ] years from the Effective Date
	-    [
                                         * ] for first GITR

                                                                                Licensed Product
	[ * ] Years from the Effective Date

 

3.3           Adjustments.
The parties acknowledge that since the program is in early pre-clinical development that
the dates included in the Milestone table above are rough estimates to provide Adimab, DFCI and CTI a preliminary projection of
what can be achieved by what dates, the accuracy of which the parties agree is impossible to predict and will be based on many
factors completely outside the control of TGTX and its Diligence Efforts. On an annual basis, with its report contained below,
TGTX will, in good faith, update the dates in the Milestones table above to provide CTI an updated assessment of the timing of
the upcoming milestones. Upon providing such update, the table above shall be deemed amended notwithstanding Section 11.5 hereof.

 

    	 	13	 

     

    

 

3.4           Development
and Commercialization Reports. Within 50 days of the Effective Date and at least 10 days
before each anniversary of the Effective Date, TGTX shall provide to CTI a written report describing the efforts by TGTX, or any
Affiliates or Sublicensees, to bring one or more Licensed Products to the marketplace. The report must be in sufficient detail
to permit CTI to monitor TGTX’ compliance with the due diligence provisions of this Agreement. 

 

TGTX shall include at least the following
in these reports: (a) a summary of TGTX’ progress toward meeting the goals and objectives that had been established for the
previous year; (b) a summary of TGTX’ goals and objectives for the ensuing year for developing and commercializing Licensed
Products, including an identification of Licensed Products that TGTX intends to develop, if any; and (c) to the extent not covered
by the foregoing, a summary of TGTX’ progress in meeting the Milestone timelines above.

 

If multiple technologies are covered by
this Agreement, the progress report must provide the information set forth above for each Licensed Product.

 

3.5           Failure
to Perform. TGTX’s failure to use commercially reasonable efforts to perform any
due diligence requirement provided in Section 3.1 through 3.4 is grounds for CTI to terminate this Agreement according to Section
10.2(d); provided that CTI shall only have the right to terminate this Agreement with respect to the specific Licensed Product
for which such failure is claimed and the Agreement shall remain in full force and effect for the remaining Licensed Products.
In the alternative, CTI may terminate the Exclusivity Covenant (if such failure occurs while TGTX is an Affiliate of CTI) or convert
the exclusive licenses granted under this Agreement to a non-exclusive license (if such failure occurs after the time TGTX ceases
to be an Affiliate of CTI), as further provided in Section 3.6, as to the specific Licensed Product for which such failure is claimed.

 

3.6           Conversion
to Non-exclusive License. If (i) the Exclusivity Covenant is terminated as provided in
Section 3.5 or (ii) the exclusive license granted under this Agreement is converted to a non-exclusive license for any Licensed
Product as provided in Section 3.5, this Agreement is automatically amended as follows as it relates to such Licensed Product;
(a) the exclusive license of Section 2.1 becomes a non-exclusive license, (b) TGTX loses the right to grant sublicenses under Section
2.3; provided that any sublicense granted prior to such conversion shall continue and not be affected by such conversion, (c) the
obligations of Sections 3.1 through 3.4 continue to apply, (d) the obligation under Section 3.10 no longer applies, (e) TGTX has
no further rights or obligations under Article VI; provided that CTI shall keep TGTX apprised of any new filings of patent applications
and issuance of patents that fall within the DFCI Patents, and (f) CTI has the sole right to pursue apparent infringements and
the terms of Article VI no longer apply. 

 

    	 	14	 

     

    

 

3.7           Costs
and Expenses. As between CTI and TGTX, (a) TGTX shall be solely responsible for all costs
and expenses related to Development, and Commercialization of the Licensed Products, including without limitation costs and expenses
associated with all preclinical activities and clinical trials, and all regulatory filings and administrative proceedings relating
to Licensed Products in the Field and (b) CTI shall be the sole and exclusive manufacturer of Licensed Products for TGTX and its
Affiliates and Sublicensees, such that TGTX and its Affiliates and Sublicensees shall purchase all of its requirements of Licensed
Products from CTI and will not make or have made Licensed Products directly or through its Affiliates or Sublicensees unless CTI
is unable to provide sufficient supplies at competitive prices, the terms of which shall be negotiated in a manufacturing and supply
agreement. In such case, TGTX may manufacture Licensed Products provided TGTX obtains all necessary licensing rights for such manufacture.
TGTX shall be solely responsible for the costs of such additional licenses to manufacture Licensed Products. With the exception
of the above, CTI shall be solely responsible for all costs and expenses related to CMC including without limitation, CMC development
and scale-up, CMC validation, analytical method development and validation, stability testing, manufacturing, finishing and release.
TGTX shall reimburse CTI for CTI’s out-of-pocket cost for Licensed Product used by TGTX for its Development activities and
shall pay CTI a manufacturing transfer price for Commercial supplies equal to CTI’s out-of-pocket cost of Licensed Product
plus the lesser of: (a) 30% of such cost and (b) 3% of Net Sales generated by the materials supplied The Parties agree to execute
a manufacturing and supply agreement within a reasonable time after the execution of the Agreement on these terms and including
such other customary and reasonable terms.

 

3.8           .Patent
Marking. TGTX agrees that with respect to each unit or package of Licensed Products sold in a given country, TGTX shall comply
with the customary patent marking laws and practices of such country as to the applicable Additional PD-L1 Intellectual Property
and DFCI Patents.

 

3.9           Trademarks.
As between TGTX and CTI, TGTX shall have the sole authority to select trademarks for Licensed Products and shall own all such trademarks.
CTI does not grant TGTX the right to use any trademarks of CTI, Adimab, DFCI or its respective Affiliates.

 

3.10         U.S.
Manufacture.  To the extent TGTX manufactures Licensed Products (e.g. if TGTX and CTI
agree that CTI will no longer be the sole manufacturer of Licensed Products), TGTX shall manufacture Licensed Products leased,
used or sold in the United States substantially in the United States as required by 35 U.S.C. 204 and 37 C.F.R. 401 et. seq., as
amended. TGTX shall also require any Affiliate(s) or Sublicensee(s) to comply with this U.S. manufacture requirement. Notwithstanding
the foregoing, if TGTX or its Affiliate(s) or Sublicensee(s) determines that it is not commercially feasible or reasonable to manufacture
such Licensed Products in the United States or determines that it is necessary to have additional manufacturers outside the United
States for back-up supply or to supply Licensed Products outside the United States, then CTI agrees to make reasonable efforts
to assist TGTX, or its Affiliate(s) or Sublicensee(s), as applicable, at TGTX’ expense, in obtaining any necessary permission
from the appropriate government authorities to manufacture such Licensed Products outside the United States.

 

3.11         Other
Government Laws. TGTX shall comply with, and ensure that its Affiliates and Sublicensees
comply with, all government statutes and regulations that relate to Licensed Products. These include but are not limited to FDA
statutes and regulations, the Export Administration Act of 1979, as amended, codified in 50 App. U.S.C. 2041 et seq. and the regulations
promulgated thereunder or other applicable export statutes or regulations.

 

    	 	15	 

     

    

 

3.12         Publicity.
TGTX, its Affiliate and Sublicensees are not permitted to use the names of CTI, DFCI, its related entities or its employees, or
any adaptations thereof, in any advertising, promotional or sales literature, or in any securities report required by the Securities
and Exchange Commission (except as required by law), without the prior written consent of CTI, Adimab and/or DFCI in each case.
However, TGTX may (a) refer to publications in the scientific literature by employees of Adimab, DFCI, or CTI or (b) state that
a license from Adimab, DFCI, or CTI has been granted as provided in this Agreement.

 

3.13         Other
Agreements. In the event that TGTX determines to conduct a clinical trial of a Licensed
Product in the Field in the United States, TGTX shall consider in good faith and discuss with DFCI the potential of engaging DFCI
to serve as a clinical site for such clinical trial; provided that (a) DFCI has the appropriate expertise and patient population
to conduct the clinical trial, and (b) DFCI is economically competitive with other sites having substantially similar expertise
and patient populations to conduct such clinical trial.

 

ARTICLE IV

REGULATORY MATTERS

 

4.1           Regulatory
Filings. As between CTI and TGTX, TGTX (or its applicable Affiliate) shall own and maintain
all regulatory filings made after the Effective Date for Licensed Products and all Regulatory Approvals for Licensed Products.
Once per year, representatives from CTI may visit TGTX and review all such regulatory filings, provided such representatives do
not have a conflict of interest or involvement with any competitive companies or technologies and agree to TGTX’s confidentiality
agreement.

 

ARTICLE V

Financial Provisions

 

5.1           Upfront
Fee. Upon the signing of the Original Agreement, TGTX paid CTI an up-front, non-creditable,
non-refundable fee in the amount of Five Hundred Thousand Dollars ($500,000). Upon the signing of this Agreement, TGTX shall pay
CTI a non-creditable, non-refundable fee in the amount of One Million Dollars ($1,000,000). 

 

5.2           Maintenance
Fee. Within thirty (30) days following the second anniversary of the Effective Date and
each anniversary thereafter, TGTX shall pay CTI an annual license maintenance fee in the amount of [ * ] Dollars ($[ * ]). Such
fees are creditable against milestone payments due pursuant to Section 5.6, royalties due pursuant to Section 5.7 or Sublicense
Revenue Share Payments (as defined in Section 5.9).

 

5.3           Reserved.

 

5.4           Milestone
Payments.

 

(a)          PD-L1-based
Milestones. As further partial consideration for CTI’s grant of the rights to TGTX hereunder, TGTX shall pay to
CTI the following one-time, PD-L1 targeting product-based milestone payments with regard to each Licensed Product targeting PD-L1
(as specifically set forth below). TGTX will pay the relevant milestone payment within thirty (30) days of such achievement.

 

    	 	16	 

     

    

 

	PD-L1 Targeting Product-based Milestone Events 	Milestone Payment 
	[ * ]* 	$[ * ]
	[ * ]	$[ * ]
	[ * ]	$[ * ]
	[ * ]	$[ * ]
	[ * ]	$[ * ]
	[ * ]	$[ * ]
	[ * ]	$[ * ]
	[ * ]	$[ * ]
	[ * ]	$[ * ]

 

		*	[ * ].

 

If a later-stage PD-L1 targeting product-based clinical milestone
event is achieved for any Licensed Product targeting PD-L1 without one or more earlier-stage clinical milestone events having been
achieved for that Licensed Product, then TGTX shall pay the PD-L1 Milestone Payment(s) for such previous clinical milestone event(s)
along with the payment for the most recently achieved milestone event. If a milestone event related to [ * ] is achieved without
one or more of the clinical milestone events being achieved, then TGTX shall pay the PD-L1 Milestone Payment(s) for such previous
clinical milestone event(s) along with the payment for the first milestone event related to [ * ].

 

(b)          GITR-based
Milestones. As further partial consideration for CTI’s grant of the rights to TGTX hereunder, TGTX shall pay to
CTI the following one-time, GITR targeting product-based milestone payments with regard to each Licensed Product targeting GITR
(as specifically set forth below). TGTX will pay the relevant milestone payment within thirty (30) days of such achievement.

 

 

	GITR Targeting Product-based Milestone Events 	Milestone Payment 
	[ * ]	$[ * ]
	[ * ]	$[ * ]
	[ * ]	$[ * ]
	[ * ]	$[ * ]
	[ * ]	$[ * ]
	[ * ]	$[ * ]

 

(c)          Combination
Approval Milestones. If any of the above milestones in (a) and (b) are triggered as a result of a combination approval of two
or more Licensed Products or combination clinical trial of two or more Licensed Products, only one milestone payment (the higher
payment) shall be due to CTI as if the combination was a single Licensed Product.

 

(d)          Aggregate
Net Sales Achievement Milestones: As further consideration for CTI’s grant of the rights to TGTX hereunder, TGTX shall
pay to CTI the following one-time milestone payments upon first achievement of worldwide Net Sales (as specifically set forth below)
by TGTX and its Affiliates and Sublicensees. TGTX will pay the relevant milestone payment within 90 days of such achievement. 

 

    	 	17	 

     

    

 

	Aggregate Net Sales Achievement Milestones	 
	The first time aggregate worldwide Net Sales for all Licensed Products exceeds $[ * ] in any Calendar Year	$[ * ]
	The first time aggregate worldwide Net Sales for all Licensed Products exceeds $[ * ] in any Calendar Year	$[ * ]
	The first time aggregate worldwide Net Sales for all Licensed Products exceeds $[ * ] in any Calendar Year	$[ * ]
	The first time aggregate worldwide Net Sales for all Licensed Products exceeds $[ * ] in any Calendar Year	$[ * ]

 

5.5           Royalty,
Etc. Payments for Licensed Products.

 

(a)          With
respect to Net Sales of all Licensed Products: As further consideration for CTI’s grant of the rights to TGTX hereunder,
TGTX shall pay to CTI a royalty of on aggregate annual worldwide Net Sales of all such Licensed Products by TGTX and its Affiliates
and Sublicensees (but excluding Net Sales of a given Licensed Product after its applicable Royalty Term) at the percentage rates
set forth below:

 

	Annual Worldwide Net Sales of All Licensed Products per Calendar Year (US Dollars)	Incremental Royalty Rate
	For Net Sales of such Licensed Products from $0 up to and including $[ * ]	[ * ]%
	For that portion of Net Sales of such Licensed Products that is greater than $[ * ]	[ * ]%

 

(b)          In
no event shall the manufacture of a Licensed Product give rise to a royalty/payment in the nature of royalties obligation until
the particular unit of Licensed Product is sold; but if Net Sales of a particular unit of Licensed Product might or might not be
subject to a royalty/payment in the nature of royalties payment (e.g., manufactured in Country A where the Royalty Term has expired
but sold in Country B where the Royalty Term has not expired), the sale shall be deemed to be subject to a royalty/payment in the
nature of royalties payment. For clarity, TGTX’s obligation to pay royalties to CTI under Section 5.7(a) is imposed only
once with respect to the same unit of Licensed Product regardless of the number of DFCI Patents pertaining thereto or the number
of times such Licensed Product has been sold or transferred to a Person.

 

(c)          On
a Licensed Product by Licensed Product and country-by-country basis, upon expiration of the Royalty Term for a Licensed Product
in a country, the rights, licenses and sublicenses granted to TGTX hereunder with respect to such Licensed Product in such country
shall continue in effect but become fully paid-up, royalty-free, and perpetual.

 

(d)          Reserved.

 

(e)          Reserved.

 

(f)          In
the event that a Licensed Product in a country is not Covered by a Valid Claim of a Licensed Patent, royalties with respect to
such Licensed Product in such country shall be reduced by [ * ] percent ([ * ]%) of the applicable royalty rate as set forth in
Section 5.5(a) and shall be due for the period commencing with the First Commercial Sale of such Licensed Product in such country
and ending ten (10) years from date of such First Commercial Sale. 

 

    	 	18	 

     

    

 

(g)          Notwithstanding
the above, in no event shall the royalty rates set forth in Section 5.7(a) be reduced under 5.7(d), (e), and (f) above by more
than [ * ]% collectively. 

 

5.6           Timing
of Royalty Payment. Royalties/payments in the nature of royalties payable under Section
5.5 shall be payable on actual Net Sales and shall accrue at the time provided therefor by US GAAP. Royalty/payment in the nature
of royalties obligations that have accrued during a particular Calendar Quarter shall be paid, on a Calendar Quarter basis, within
80 days after the end of each Calendar Quarter during which the royalty/payment in the nature of royalties obligation accrued;
provided that within 40 days after the conclusion of each Calendar Year TGTX shall provide notice to CTI of any adjustments necessary
to account for any royalties/payment in the nature of royalties which were overpaid or underpaid for such prior Calendar Year’s
Calendar Quarters, and the Parties shall promptly true-up based on such adjustments, provided however, the lapse of such 50-day
period shall not impact the right of TGTX to credit any over-payments discovered during an audit against future royalties due under
Section 5.5 hereof. 

 

5.7           Sublicense
Revenue. TGTX shall pay to CTI [ * ] percent ([ * ]%) of all Sublicense Revenue received
by TGTX (“Sublicense Revenue Share Payments”). Sublicense Revenue Share Payments shall be paid, on a Calendar
Quarter basis, within 80 days after the end of each Calendar Quarter during which the respective Sublicense Revenue is received.

 

5.8           Royalty
Reports and Records Retention. Within 50 days after the end of each Calendar Quarter during
which Licensed Products have been sold, TGTX shall deliver to CTI, together with the applicable royalty/payment in the nature of
royalties payment due, a written report, on a Licensed Product-by-Licensed Product (and specifying non-Covered status, as applicable)
and country-by-country basis, of (a) (a)          Number of Licensed Products
manufactured and sold by TGTX, and any Affiliates or Sublicensees, in each country; (b) gross invoiced (or otherwise charged) amounts
of sales, by TGTX and its Affiliates and Sublicensees, of Licensed Products subject to royalty payments for such Calendar Quarter
(and, if non-Covered, subject to royalty/payment in the nature of royalties payments for such Calendar Quarter), (c) amounts deducted
by category (following the definition of Net Sales) from such gross invoiced amounts to calculate Net Sales, (d) Net Sales subject
to royalty or royalty/payment in the nature of royalties payments for such Calendar Quarter and Calendar Year to date, and (e)
the corresponding royalty or royalty/payment in the nature of royalties, and (f) the nature and amount of Sublicense Revenue received
by TGTX. Such report shall be deemed “Confidential Information” of TGTX subject to the obligations of Article VII of
this Agreement. For three years after each sale of a Licensed Product (whether Covered or not), TGTX shall keep (and shall ensure
that its Affiliates and Sublicensees shall keep) complete and accurate records of such sale in sufficient detail to confirm the
accuracy of the royalty or royalty/payment in the nature of royalties calculations hereunder.

 

    	 	19	 

     

    

 

5.9           CTI
shall be solely responsible for paying directly to DFCI all payments due to DFCI under Section 5 of the License Agreement that
arise out of the exercise of rights by TGTX under this Agreement, including, without limitation, royalties on TGTX’s Net
Sales. Likewise, CTI shall be solely responsible for paying directly to Adimab all payments due to Adimab under Section 4 of the
Collaboration Agreement with Adimab that arise out of the exercise of rights by TGTX under this Agreement, including, without limitation,
royalties on TGTX’s Net Sales.

 

5.10         Reserved.

 

5.11         Books
and Audits.

 

TGTX shall keep, and shall require its
Affiliates and Sublicensees to keep, true books of account containing an accurate record (together with supporting documentation)
of all data necessary for determining the amounts payable to CTI. TGTX shall keep it records at its principal place of business
or the principal place of business of the appropriate division of TGTX to which this Agreement relates and shall require its Affiliates
and Sublicenses to keep their books and records in the same manner.

 

(a)          Commencing
on the earlier of (i) the First Commercial Sale (of the first Licensed Product to have a First Commercial Sale) or (ii) receipt
of Sublicense Revenue, and continuing until one Calendar Year after the conclusion of the final Royalty Term, upon the written
request of CTI, and not more than once in each Calendar Year, TGTX shall permit, shall cause its Affiliates to permit, an independent
certified public accounting firm of nationally recognized standing selected by CTI (who has not been engaged by CTI to provide
services in any other capacity at any time during the three-year period before such selection), and reasonably acceptable to TGTX
or such Affiliate, to have access to and to review, during normal business hours upon reasonable prior written notice, the applicable
records of TGTX and its Affiliates to verify the accuracy of the royalty payments and Sublicense Revenue Share Payments. Such review
may cover: (i) the records for the Calendar Year ending not more than three years before the date of such request, and (ii) only
those periods that have not been subject to a prior audit.

 

(b)          If
such accounting firm concludes that additional amounts were owed during such period, TGTX shall pay the additional royalties and/or
royalties/payment in the nature of royalties within 15 days after the date such public accounting firm delivers to TGTX such accounting
firm’s written report. If such accounting firm concludes that an overpayment was made, such overpayment shall be fully creditable
against amounts payable in subsequent payment periods. If TGTX disagrees with such calculation, TGTX may contest such calculation
in writing – at which point the parties will work in good faith to submit the matter to a mediator for resolution. If the
parties are unable to reach an agreement via mediation, then TGTX may initiate a court action to seek to recover the additional
payment or to increase the amount of credit or reimbursement. CTI shall pay for the cost of any audit by CTI, unless TGTX has underpaid
CTI by 5% or more for a specific royalty period, in which case TGTX shall pay for the reasonable costs of audit, as well as any
additional sum that would have been payable to CTI had the TGTX reported correctly, plus interest as set forth in Section 4.14.

 

    	 	20	 

     

    

 

(c)          Each
Party shall treat all information that it receives under this Section 5.10 in accordance with the confidentiality provisions of
Article VII of this Agreement, and shall cause its accounting firm to enter into an acceptable confidentiality agreement with the
audited Party obligating such firm to retain all such financial information in confidence pursuant to such confidentiality agreement,
except to the extent necessary for a Party to enforce its rights under the Agreement.

 

5.12         Mode
of Payment and Currency. All payments to CTI under this Agreement, whether or not in respect
of Net Sales or milestone events, shall be made by deposit of US Dollars in the requisite amount to the following, which CTI may
from time to time amend by advance written notice to TGTX.

 

by check:

 

Checkpoint Therapeutics, Inc.

2 Gansevoort Street

New York, NY 10014

 

by wire transfer:

 

[To be provided]

 

Conversion of sales or expenses recorded
in local currencies to Dollars will be performed in a manner consistent with TGTX’s normal practices used to prepare its
audited financial statements for external reporting purposes, provided that such practices use a widely accepted source of published
exchange rates. Based on the resulting Net Sales in US Dollars, the then applicable royalties/payment in the nature of royalties
shall be calculated.

 

5.13         Late
Payments. If a Party does not receive payment of any sum due to it on or before the due
date therefor, simple interest shall thereafter accrue on the sum due to such Party from the due date until the date of payment
at a rate equal to the lesser of (a) US dollar one-month LIBOR plus 300 basis points, or (b) the maximum rate permissible under
applicable Law. Accrual and payment of interest shall not be deemed to excuse or cure breaches of contract arising from late payment
or nonpayment. Waiver or deferral by CTI of any payment owed under any paragraph under this Article V may not be construed as a
waiver or deferral of any subsequent payment owed by TGTX to CTI.

 

5.14         Taxes.
All amounts due hereunder exclude all applicable sales, use, and other taxes and duties, and TGTX shall be responsible for payment
of all such taxes (other than taxes based on CTI’s income) and duties and any related penalties and interest, arising from
the payment of amounts due under this Agreement. The Parties agree to cooperate with one another and use Commercially Reasonable
Efforts to avoid or reduce tax withholding or similar obligations in respect of royalties, payments in the nature of royalties,
milestone payments, and other payments made by TGTX to CTI under this Agreement. To the extent TGTX is required to withhold taxes
on any payment to CTI, TGTX shall pay the amounts of such taxes to the proper governmental authority in a timely manner and promptly
transmit to CTI official receipts issued by the appropriate taxing authority and/or an official tax certificate, or such other
evidence as CTI may reasonably request, to establish that such taxes have been paid. CTI shall provide TGTX any tax forms that
may be reasonably necessary in order for TGTX to not withhold tax or to withhold tax at a reduced rate under an applicable bilateral
income tax treaty. CTI shall use Commercially Reasonable Efforts to provide any such tax forms to TGTX at least 45 days before
the due date for any payment for which CTI desires that TGTX apply a reduced withholding rate. Each Party shall provide the others
with reasonable assistance to enable the recovery, as permitted by applicable law, of withholding taxes, value added taxes, or
similar obligations resulting from payments made under this Agreement, such recovery to be for the benefit of the Party bearing
such withholding tax or value added tax. CTI shall indemnify and hold TGTX harmless from and against any penalties, interest or
other tax liability arising from any failure by TGTX (at the express request of CTI) to withhold or by reduction (at the express
request of CTI) in its withholding.

 

    	 	21	 

     

    

 

5.15         Currency
Conversion. If any currency conversion is required in connection with any payment owed
to CTI, the conversion will be made at the buying rate for the transfer of such other currency as quoted by the Wall Street Journal
on the last business day of the applicable accounting period in the case of any payment payable with respect to a specified accounting
period or, in the case of any other payment, the last business day before the date the payment is due.

 

ARTICLE VI

Patents

 

6.1           Patent
Prosecution and Maintenance.

 

(a)          DFCI
Patents and Additional PD-L1 Intellectual Property. TGTX shall reimburse CTI for [ * ]%
of the patent expenses incurred under the License Agreement and incurred for the filing, maintenance and prosecution of patents
included in Additional PD-L1 Intellectual Property for which CTI is responsible.

 

(b)          New
or Revised Applications. CTI will, upon learning from DFCI of an intention to file or revise one or more patent applications
which are DFCI Patents subject to the License grant in Article II, promptly inform TGTX of such intention, and will provide TGTX
with the opportunity to comment on the content of such DFCI patent application before CTI sends comments to DFCI on such filing.
CTI shall include any such reasonable TGTX comments in the comments to be sent to DFCI. CTI will inform TGTX of CTI’s intention
to file or revise one or more patent applications which are included in Additional PD-L1 Intellectual
Property for which CTI is responsible subject to the License grant in Article II and will
provide TGTX with the opportunity to comment on the content of such one or more patent applications. CTI shall take into account
any such reasonable TGTX comments.

 

(c)          Liaising.
CTI shall keep TGTX promptly and regularly informed of the course of the filing and prosecution of DFCI Patents and patents
included in Additional PD-L1 Intellectual Property for which CTI is responsible or related proceedings (e.g., interferences, oppositions,
reexaminations, reissues, revocations or nullifications) in a timely manner, and to reasonably take into consideration the advice
and recommendations of TGTX. 

 

    	 	22	 

     

    

 

(d)          Election
Not to File/Prosecute/Maintain DFCI Patents and Patents Included in Additional PD-L1 Intellectual
Property for which CTI is Responsible. TGTX acknowledges and agrees that CTI and DFCI shall not be required to file,
prosecute or maintain patents included in Additional PD-L1 Intellectual Property for which
CTI is responsible and DFCI Patents, respectively, provided, however, if DFCI decides to not pursue or maintain any such DFCI Patents
then CTI shall promptly notify TGTX so the Parties can determine if they would like to assume responsibility for such activities
in DFCI’s name but at the Parties expense. The same notice applies to any decision made by CTI to drop a case included in
Additional PD-L1 Intellectual Property for which CTI is responsible. In either event, TGTX
will no longer owe any royalty obligation on account of such (country-level) DFCI Patents or patents included in Additional
PD-L1 Intellectual Property for which CTI is responsible assumed by the Parties or TGTX, as the case might be. Similarly,
to the extent CTI does not want to continue funding the patent costs of any portion of DFCI Patents, CTI will notify TGTX and give
TGTX an opportunity to assume responsibility for such Patents at TGTX’s expense, in which case TGTX shall owe DFCI directly
the royalties due under the License Agreement and shall no longer owe royalty obligation to CTI on account of such (country-level)
DFCI Patents assumed by TGTX. The Parties acknowledge that if neither CTI nor TGTX continues funding patent costs then such portion
of DFCI Patents will no longer be included as DFCI Patents. The same course of action will be followed by the Parties in connection
with patents included in Additional PD-L1 Intellectual Property for which CTI is responsible.

 

6.2           Certification
under Drug Price Competition and Patent Restoration Act. Each of TGTX and CTI shall provide
within a reasonable time written notice to the other of any certification of which they become aware filed pursuant to 21 U.S.C.
Section 355(b)(2)(A) (or any amendment or successor statute thereto) claiming that any DFCI Patents covering a Licensed Product,
or the manufacture or use of each of the foregoing, are invalid or unenforceable, or that infringement will not arise from the
manufacture, use or sale in the US of a Licensed Product by a Third Party.

 

6.3           Listing
of Patents. To the extent a DFCI Patent and/or a patent included in Additional
PD-L1 Intellectual Property is applicable in support of a label associated with an approval to market a Licensed Product, TGTX
shall have the sole right to determine which of such DFCI Patents and/or a patents included in Additional
PD-L1 Intellectual Property, if any, shall be listed for inclusion in the Approved Drug Products with Therapeutic Equivalence Evaluations
publication pursuant to 21 U.S.C. Section 355, any equivalent publication for biologics, or any successor Law in the United States,
together with any comparable Laws in any other country. CTI will co-operate with TGTX to list any of said DFCI Patents and patents
included in Additional PD-L1 Intellectual Property. 

 

6.4           Enforcement
of Patents.

 

(a)          Notice.
If either TGTX or CTI believes that a Licensed Patent is being infringed in the Field by a Third Party or if a Third Party claims
that any Licensed Patent is invalid or unenforceable, the Party possessing such knowledge or belief shall notify the other and
provide it with details of such infringement, misappropriation or claim that are known by such Party.

 

    	 	23	 

     

    

 

(b)          Action
by DFCI.

 

(i)          Procedure.
TGTX acknowledges that DFCI is responsible for enforcing its DFCI Patents and prosecuting apparent infringers when, in DFCI’s
judgment, such action may be reasonably necessary and justified. TGTX may request that CTI request DFCI to take steps to protect
the DFCI Patents from an apparent infringement. However, TGTX recognizes that before DFCI must respond to the request, TGTX shall
supply CTI to provide to DFCI (i) an opinion of qualified legal counsel demonstrating to DFCI's reasonable satisfaction that an
infringement of the DFCI Patents exists in a particular country and (ii) with written evidence demonstrating to DFCI’s reasonable
satisfaction that a Substantial Infringement of the DFCI Patents exists in a particular country (“Substantial Infringer”).

 

(ii)         DFCI
has three months from the date of receiving satisfactory written evidence from CTI of a Substantial Infringement to decide whether
it will seek to terminate the Substantial Infringement. DFCI shall give CTI notice of its decision by the end of this three-month
period, which CTI shall promptly forward to TGTX. If DFCI notifies CTI that it intends to prosecute the alleged infringer, then
DFCI has six (6) months from the date of its notice to CTI to either (a) cause the Substantial Infringement to terminate or (b)
initiate legal proceedings against the infringer. If any such suit is brought by DFCI in its own name, or jointly with CTI if required
by law, it will be at DFCI’s expense and on its own behalf, but DFCI shall not be obligated to bring more than one such suit
at a time.

 

(iii)        CTI’s
Right to Join. If CTI shall exercise its rights to join any legal proceeding brought by DFCI under Section 6.4 of the License
Agreement, then TGTX shall have the right to join CTI under the same terms and conditions of paragraph 6.4(b)(iii) of the License
Agreement.

 

(c)          Action
by CTI and TGTX. 

 

(i)          Procedure.
If CTI has the right to prosecute a Substantial Infringement under Section 6.4(c) of the License Agreement, then CTI shall promptly
notify TGTX, and it may initiate a legal proceeding against the alleged infringer. If CTI decides that it will not commence any
legal proceeding with respect to the Substantial Infringement, then such right to prosecute a Substantial Infringement under Section
6.4(c) of the License Agreement passes to TGTX hereunder. 

 

(ii)         TGTX’s
Right To Join. TGTX independently has the right to join any legal proceeding brought by CTI under this Section 6.4 and fund
up to fifty percent of the cost of the legal proceeding from the date of joining. If TGTX elects to join as a party plaintiff pursuant
to this Section 6.4, TGTX may jointly participate in the action with CTI, but CTI’s counsel will be lead counsel. 

 

    	 	24	 

     

    

 

(iii)        Reduction
of Royalties. If CTI initiates legal proceedings under Section 6.4 of the License Agreement and TGTX joins pursuant to this
Section 6.4, then TGTX shall have the same rights as CTI has under Section 6.4(c)(iii) of the License Agreement. Additionally,
if TGTX prosecutes pursuant Section 6.4(i) of this Agreement after CTI decides not to prosecute and neither DFCI nor CTI independently
(except as a necessary party) join the proceeding, then TGTX may deduct up to [ * ] percent ([ * ]%) of TGTX’s documented
costs and expenses of the proceeding (including reasonable attorney fees) from running and minimum royalties payable to CTI under
Section 5.7(a) of this Agreement from sales of Licensed Products covered by the patent(s)-in suit. However, TGTX may not reduce
CTI’s royalty payments by more than fifty percent of the amount otherwise due under Article V. If [ * ] percent ([ * ]%)
of TGTX’s costs and expenses exceed the amount of royalties deducted by TGTX for any calendar year, TGTX may, to that extent,
reduce the royalties due to CTI in succeeding calendar quarters for so long as TGTX is actively engaged in legal proceedings to
terminate the Substantial Infringement. However, TGTX may not reduce total royalties due to CTI in a given calendar quarter by
more than [ * ] percent ([ * ]%). TGTX’s right to reduce royalty payments to CTI under this paragraph 6.4(c)(iii) applies
only for so long as the Substantial Infringement continues. 

 

(iv)        Settlement.
Regardless of whether CTI or DFCI is joined or joins any legal proceeding initiated by TGTX, TGTX acknowledges and agrees
that no settlement, consent judgment or other voluntary final disposition of the legal proceeding may be entered into without the
consent of DFCI and CTI.

 

6.5           Cooperation.
If one party initiates legal proceedings to enforce the DFCI Patents pursuant to this Article VI, the other party shall cooperate
with and supply all assistance reasonably requested by the party initiating the proceedings, at the initiating party’s request
and expense.

 

6.6           Distribution
of Amounts Paid by Third Parties. Any amounts recovered by the Party initiating an Action
pursuant to this Section 6.6, whether by settlement or judgment, shall be allocated in the following order: to reimburse the Parties
for all out-of-pocket costs and expenses incurred in connection therewith, including attorneys’ fees. If such recovery is
insufficient to cover all such costs and expenses of both Parties, it will be shared pro-rata in proportion to the relative amount
of such costs and expenses incurred by each Party. If after such reimbursement any funds remain from such damages, the remaining
amount of such recovery shall be allocated as follows: the portion thereof attributable to “lost sales” in the Field
shall be retained by TGTX and shall be deemed to be Net Sales for the Calendar Quarter in which the amount is actually received
by TGTX and TGTX shall pay to CTI a royalty on such portion based on the royalty rates set forth in Section 5.7(a), and the portion
thereof not attributable to “lost sales” and is not allocated to DFCI under Section 6.6 of the License Agreement shall
be allocated 50% to TGTX and 50% to CTI. 

 

6.7           Declaratory
Judgment Actions. In the event that any third party initiates a declaratory judgment action
alleging the invalidity or unenforceability of the Licensed Patents with respect to claims relating to the Field, or if any third
party brings an infringement action against TGTX or its Affiliates or Sublicensees because of the exercise of the rights granted
TGTX under this Agreement, then TGTX shall have the right to defend such action under its own control and at its own expense; provided,
however, that TGTX acknowledges that DFCI has the right to assume control of such defense, at its own expense, if such action is
directed to a DFCI Patent and DFCI in good-faith believes that assuming control of such defense is beneficial to CTI and DFCI.
TGTX shall NOT enter into any settlement, consent judgment or other voluntary final disposition of any action under this Section
6.7 without the consent of the other party (the patent owner), which consent shall not be unreasonably withheld unless the settlement
includes any express or implied admission of liability or wrongdoing on the other party’s part, in which case the other party’s
right to grant or deny consent is absolute and at its sole discretion. Any recovery shall be first applied to reimburse each party
pro rata for any out-of-pocket expenses it may have incurred with respect to defense of such action, and the remainder shall be
retained entirely by the party controlling the action; provided, however, that any recovery for infringement will be distributed
as described in Section 6.6. 

 

    	 	25	 

     

    

 

ARTICLE VII

CONFIDENTIALITY

 

7.1           Definitions.
CTI and TGTX each recognizes that during the Term, it may be necessary for a Party (the “Disclosing Party”)
to provide Confidential Information (as defined herein) to another Party (the “Receiving Party”) that is highly
valuable, the disclosure of which would be highly prejudicial to such Party. The disclosure and use of Confidential Information
shall be governed by the provisions of this Article VII. Neither Party shall use the other’s Confidential Information except
as expressly permitted in this Agreement. For purposes of this Agreement, “Confidential Information” means all
information (including information relating to the business, operations and products of a Party or any of its Affiliates) disclosed
by the Disclosing Party to the Receiving Party and which reasonably ought to have been understood to be confidential and/or non-public
information at the time disclosed to the Receiving Party, or which is designated in writing by the Disclosing Party as “Confidential”
(or equivalent), or which when disclosed orally to the Receiving Party is declared to be confidential by the Disclosing Party and
is so confirmed in a writing delivered to the Receiving Party within 30 days after such oral disclosure, including but not limited
to any technical information, Know-How, trade secrets, or inventions (whether patentable or not), that such Party discloses to
another Party under this Agreement, or otherwise becomes known to another Party by virtue of or that relates to this Agreement.

 

7.2           Obligation.
The Parties agree that they will disclose the other Party’s Confidential Information to its own (or its respective Affiliate’s,
or with respect to TGTX, its Sublicensees’) officers, employees, consultants and agents only if and to the extent necessary
to carry out their respective responsibilities under this Agreement or in accordance with the exercise of their rights under this
Agreement, and such disclosure shall be limited to the maximum extent possible consistent with such responsibilities and rights.
Except as set forth in the foregoing sentence, no Party shall disclose Confidential Information of the other to any Third Party
without the other’s prior written consent. In all events, however, any and all disclosure to a Third Party (or to any such
Affiliate or Sublicensee) shall be pursuant to the terms of a non-disclosure/nonuse agreement no less restrictive than this Article
VII. The Party which disclosed Confidential Information of the other to any Third Party (or to any such Affiliate or Sublicensee)
shall be responsible and liable for any disclosure or use by such Third Party, Affiliate or Sublicensee (or its disclosees) which
would have violated this Agreement if committed by the Party itself. No Party shall use Confidential Information of the other except
as expressly allowed by and for the purposes of this Agreement. Each Party shall take such action to preserve the confidentiality
of each other’s Confidential Information as it would customarily take to preserve the confidentiality of its own Confidential
Information (but in no event less than a reasonable standard of care). Upon expiration or termination of this Agreement, each Party,
upon the other’s request, shall return or destroy (at Disclosing Party’s discretion) all the Confidential Information
disclosed to the other Party pursuant to this Agreement, including all copies and extracts of documents, within 60 days after the
request, except for one archival copy (and such electronic copies that exist as part of the Party’s computer systems, network
storage systems and electronic backup systems) of such materials solely to be able to monitor its obligations that survive under
this Agreement. 

 

    	 	26	 

     

    

 

7.3           Exceptions.
The non-use and non-disclosure obligations set forth in this Article VII shall not apply to any Confidential Information, or portion
thereof, that the Receiving Party can demonstrate by competent evidence:

 

(a)          at
the time of disclosure is in the public domain;

 

(b)          after
disclosure, becomes part of the public domain, by publication or otherwise, through no fault of the Receiving Party or its disclosees;

 

(c)          is
made available to the Receiving Party by an independent Third Party without obligation of confidentiality; provided, however, that
to the Receiving Party’s knowledge, such information was not obtained by said Third Party, directly or indirectly, from the
Disclosing Party hereunder; or

 

(d)          is
independently developed by an employee of the Receiving Party not accessing or utilizing the Disclosing Party’s information.

 

In addition, the Receiving Party may disclose
information that is required to be disclosed by law, by a valid order of a court or by order or regulation of a governmental agency
including but not limited to, regulations of the SEC or in the course of arbitration or litigation; provided, however, that in
all cases the Receiving Party shall give the other party prompt notice of the pending disclosure and make a reasonable effort to
obtain, or to assist the Disclosing Party in obtaining, a protective order or confidential-treatment order preventing or limiting
(to the greatest possible extent and for the longest possible period) the disclosure and/or requiring that the Confidential Information
so disclosed be used only for the purposes for which the law or regulation required, or for which the order was issued.

 

7.4           Third
Party Information. The Parties acknowledge that the defined term “Confidential Information”
shall include not only a Disclosing Party’s own Confidential Information but also Confidential Information of a Third Party
which is in the possession of a Disclosing Party. The Parties agree not to disclose to the other any Confidential Information of
a Third Party which is in the possession of such Party, unless the other has given an express prior written consent (which specifies
the owner of such Confidential Information) to receive such particular Confidential Information. 

 

7.5           Press
Release Announcing the Execution of the License Agreement and Related Disclosures. Either
Party may make an initial press release announcing the execution of this Agreement, including any matter covered by this Agreement,
and the Development or Commercialization of Licensed Products, but such Party shall provide the text of such planned disclosure
to the other Party sufficiently in advance of the scheduled disclosure to afford such other Party a reasonable opportunity to review
and comment upon the proposed text and the timing of such disclosure, and shall consider all reasonable comments of the other Party
regarding such disclosure. (Provided, that no Party shall use the trademark or logo of the other Party, its Affiliates or their
respective employee(s) in any publicity, promotion, news release or public disclosure relating to this Agreement or its subject
matter, except as may be required by Law or required by the rules of an applicable US national securities exchange or except with
the prior express written permission of such other Party, such permission not to be unreasonably withheld.) 

 

    	 	27	 

     

    

 

ARTICLE VIII

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

8.1           Representations
and Warranties. (a) TGTX represents and warrants to CTI, and (b) CTI represents to TGTX,
in each case as of the Effective Date:

 

(a)          Such
Party is a corporation duly organized and validly existing under the Laws of the jurisdiction of its incorporation;

 

(b)          Such
Party has all right, power and authority to enter into this Agreement, and to perform its obligations under this Agreement;

 

(c)          Such
Party has taken all action necessary to authorize the execution and delivery of this Agreement and the performance of its obligations
under this Agreement;

 

(d)          This
Agreement is a legal and valid obligation of such Party, binding upon such Party and enforceable against such Party in accordance
with the terms of this Agreement, except as enforcement may be limited by applicable bankruptcy, fraudulent conveyance, insolvency,
reorganization, moratorium and other Laws relating to or affecting creditors’ rights generally and by general equitable principles;

 

(e)          To
the best of such party’s knowledge, the execution, delivery and performance of this Agreement by such Party does not conflict
with, breach or create in any Third Party the right to accelerate, terminate or modify any agreement or instrument to which such
Party is a party or by which such Party is bound; 

 

(f)          To
the best of such party’s knowledge, all consents, approvals and authorizations from all governmental authorities or other
Third Parties required to be obtained by such Party in connection with the execution and delivery of this Agreement have been obtained;
and the execution, delivery and performance of this Agreement by such Party does not violate any Law of any Governmental Body having
authority over such Party;

 

(g)          No
person or entity has or will have, as a result of the execution and delivery of or as a result of the transactions contemplated
by this Agreement, any right, interest or valid claim against or upon such Party for any commission, fee or other compensation
as a finder or broker because of any act by such Party or its Affiliates, agents or Sublicensees; and

 

    	 	28	 

     

    

 

(h)          To
the best of such party’s knowledge, no agreement between it and any Third Party is in conflict with the rights granted to
any other party pursuant to this Agreement.

 

8.2           Reserved.

 

8.3           Disclaimer.
Notwithstanding the representations and warranties set forth in this Article VIII, TGTX acknowledges and accepts the risks inherent
in attempting to Develop and Commercialize any pharmaceutical product. There is no implied representation that the Licensed Products
can be successfully Developed or Commercialized. 

 

8.4           CTI
MAKES NO WARRANTY, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR OF FITNESS FOR
A PARTICULAR PURPOSE WITH RESPECT TO ANY PATENT, TRADEMARK, SOFTWARE, NON-PUBLIC OR OTHER INFORMATION, DFCI MATERIALS, DFCI ANTIBODIES,
KNOW-HOW, OR TANGIBLE RESEARCH PROPERTY, LICENSED OR OTHERWISE PROVIDED TO TGTX HEREUNDER AND HEREBY DISCLAIMS THE SAME. 

 

8.5           CTI
DOES NOT WARRANT THE VALIDITY OF THE LICENSED PATENTS LICENSED HEREUNDER AND MAKES NO REPRESENTATION WHATSOEVER WITH REGARD TO
THE SCOPE OF THE LICENSED PATENTS OR THAT SUCH LICENSED PATENTS MAY BE EXPLOITED BY TGTX, AFFILIATE OR SUBLICENSEE WITHOUT INFRINGING
OTHER PATENTS. CTI MAKES NO REPRESENTATION THAT DFCI ANTIBODIES, CTI ANTIBODIES OR THE METHODS USED IN MAKING OR USING SUCH DFCI
ANTIBODIES OR CTI ANTIBODIES ARE FREE FROM LIABILITY FOR PATENT INFRINGEMENT.

 

ARTICLE
IX

INDEMNIFICATION; LIMITATION OF LIABILITY; INSURANCE

 

Indemnification and Defense.

 

9.1           TGTX
shall indemnify, defend and hold harmless (i) DFCI and its trustees officers, medical and professional staff, employees, and agents
and their respective successors, heirs and assigns and (ii) CTI and its directors, officers, employees, agents and contractors
(the "CTI Indemnitees"), against any liability, damage, loss or expense (including reasonable attorneys' fees and expenses
of litigation) incurred by or imposed upon the CTI Indemnitees, or any one of them, in connection with any claims, suits, actions,
demands or judgments arising out any theory of product liability ( including but not limited to action in the form of tort, warranty,
strict liability) concerning any product, process or service relating to, or developed by TGTX, its Affiliates or Sublicensees
pursuant to (a) any right or license granted under this Agreement or (b) arising out of any other activities to be carried out
by TGTX pursuant to this agreement. TGTX's indemnification under Section 9.1 does not apply to any liability, damage, loss or expense
to the extent that it is attributable to (x) the grossly negligent activities of the CTI Indemnitees, or (y) the intentional wrongdoing
or intentional misconduct of the CTI Indemnitees TGTX shall, at its own expense, provide attorneys reasonably acceptable to CTI
to defend against any actions brought or filed against any party indemnified hereunder with respect to the subject of indemnity
contained herein, whether or not such actions are rightfully brought.

 

    	 	29	 

     

    

 

9.2           CTI
shall indemnify, defend and hold harmless TGTX and its directors, officers, employees, agents and contractors (the "TGTX Indemnitees"),
against any liability, damage, loss or expense (including reasonable attorneys' fees and expenses of litigation) incurred by or
imposed upon the TGTX Indemnitees, or any one of them, in connection with any claims, suits, actions, demands or judgments arising
out any theory of product liability ( including but not limited to action in the form of tort, warranty, strict liability) concerning
(a) any product, process or service relating to, or developed by CTI, its Affiliates or Sublicensees pursuant to the License Agreement
or (b) any other activities to be carried out by CTI pursuant to this agreement. CTI's indemnification under Section 9.1 does not
apply to any liability, damage, loss or expense to the extent that it is attributable to (x) the grossly negligent activities of
the TGTX Indemnitees, or (y) the intentional wrongdoing or intentional misconduct of the TGTX Indemnitees. CTI shall, at its own
expense, provide attorneys reasonably acceptable to DFCI and TGTX to defend against any actions brought or filed against any party
indemnified hereunder with respect to the subject of indemnity contained herein, whether or not such actions are rightfully brought

 

9.3           If
any such action is commenced or claim made or threatened against a DFCI Indemnitee or CTI Indemnitee (collectively, “Indemnitees”)
as to which the other Party (the “Indemnifying Party”) is obligated to indemnify it (them) or hold it (them) harmless,
the Indemnitee shall promptly notify Indemnifying Party of such event. Indemnifying Party shall assume the defense of, and may
settle, that part of any such claim or action commenced or made against an Indemnitee which relates to the Indemnifying Party’s
indemnification and CTI may take such other steps as may be necessary to protect it. Indemnifying Party will not be liable to Indemnitees
on account of any settlement of any such claim or litigation affected without Indemnifying Party’s consent. The right of
Indemnifying Party to assume the defense of any action is limited to that part of the action commenced against Indemnitees that
relates to Indemnifying Party’s obligation of indemnification and holding harmless.

 

9.4           TGTX
shall require any Affiliates or Sublicensee(s) to indemnify, hold harmless and defend DFCI and CTI under the same terms set forth
in Sections 9.1 – 9.4.

 

9.5           Insurance.
At such time as any product, process or service relating to, or developed pursuant to, this Agreement is being commercially distributed
or sold (other than for the purpose of obtaining regulatory approvals) by TGTX or by a Sublicensee, Affiliate or agent of TGTX,
TGTX shall, at its sole cost and expense, procure and maintain policies of commercial general liability insurance in amounts not
less than $2,000,000 per incident and $2,000,000 annual aggregate and naming the Indemnitees as additional insureds. Such commercial
general liability insurance must provide (a) product liability coverage and (b) contractual liability coverage for TGTX's indemnification
under Sections 9.1 through 9.5 of this Agreement. If TGTX elects to self-insure all or part of the limits described above (including
deductibles or retentions which are in excess of $250,000 annual aggregate), such self-insurance program must be acceptable to
the CTI, DFCI and the DFCI's associated Risk Management Foundation. The minimum amounts of insurance coverage required under these
provisions may not be construed to create a limit of TGTX's liability with respect to its indemnification obligation under Sections
9.1 through 9.5 of this Agreement.

 

    	 	30	 

     

    

 

9.6           TGTX
shall provide CTI with written evidence of such insurance upon request of CTI. TGTX shall provide CTI with written notice at least
fifteen (15) days prior to the cancellation, non-renewal or material change in such insurance; if TGTX does not obtain replacement
insurance providing comparable coverage within such fifteen (15) day period, CTI has the right to terminate this Agreement effective
at the end of such fifteen (15) day period without any notice or additional waiting periods.

 

9.7           TGTX
shall maintain such comprehensive general liability insurance beyond the expiration or termination of this Agreement during (a)
the period that any product, process, or service, relating to, or developed pursuant to, this Agreement is being commercially distributed
or sold (other than for the purpose of obtaining regulatory approvals) by TGTX or by a Sublicensee, Affiliate or agent of TGTX
and (b) a reasonable period after the period referred to in 9.8 (a) above which in no event shall be less than fifteen (15) years.

 

9.8           TGTX
shall require any of its Affiliates or Sublicensee(s) to, maintain insurance in favor of CTI, DFCI and the Indemnitees under the
same terms set forth in Sections 9.5 – 9.7 of this Agreement.

 

 

ARTICLE
X

TERM AND TERMINATION

 

10.1         Term.
The term of this Agreement shall commence on the Effective Date and, unless earlier terminated as provided in this Article X, shall
continue in full force and effect, on a country-by-country and Licensed Product-by-Licensed Product basis until the Royalty Term
in such country with respect to such Licensed Product expires, at which time this Agreement shall expire in its entirety with respect
to such Licensed Product in such country. (The “Term” shall mean the period from the Effective Date until the
earlier of termination of this Agreement as provided in this Article X or expiration of this Agreement upon the expiration of the
last-to-expire Royalty Term.) The Parties confirm that subject to the foregoing sentence, this Agreement shall not be terminated
or invalidated by any future determination that any or all of the Licensed Patents have expired or been invalidated.

 

10.2         Termination
by CTI. CTI has the right to immediately terminate this Agreement, the extension of rights
(if such termination occurs while TGTX is an Affiliate of CTI), and all licenses granted hereunder (if such failure occurs after
the time TGTX ceases to be an Affiliate of CTI), or at CTI’s option to convert the exclusive license granted in Article 2.1
to a non-exclusive license (if such failure occurs after the time TGTX ceases to be an Affiliate of CTI) in accordance with Section
3.6, by providing TGTX with written notice of such, upon the occurrence of any of the following events.

 

    	 	31	 

     

    

 

(a)          TGTX’s
Board of Director’s has agreed that TGTX will cease to carry on its business with respect to Licensed Products.

 

(b)          TGTX
fails to pay when due any undisputed royalty or other undisputed payment that has become due and is payable under Article V of
this Agreement and has not cured the default by making the required payment, together with interest due, within ninety days of
receiving a written notice of default from CTI requesting such payment.

 

(c)          An
officer of TGTX is convicted of a felony relating to the manufacture, use, sale or importation of Licensed Products.

 

(d)          TGTX
materially breaches any other provision of this Agreement (including but not limited to due diligence obligations under Article
III and insurance obligations under Section 9.7 – Section 9.10), unless TGTX has cured the breach within ninety days of receiving
written notice from CTI specifying the nature of the breach; provided, however, that the due diligence obligations shall be determined
on a Licensed Product by Licensed Product basis. 

 

10.3         Termination
for insolvency. TGTX or CTI may terminate this Agreement immediately upon written notice,
with no further notice obligation or opportunity to cure, if TGTX or CTI shall become insolvent, shall make an assignment for the
benefit of creditors, or shall have a petition in bankruptcy filed for or against it (which is not dismissed within 60 days of
such filing).

 

10.4         Notwithstanding
Sections 10.2 and 10.3, in the event of a good-faith dispute as to whether any alleged breach, default, failure or any other act
or omission gives rise to a right of termination under this Agreement, is in fact a breach, default, failure or other act or omission
that gives rise to a right of termination under this Agreement, termination of this Agreement in respect of such alleged breach,
default, failure or other act or omission shall not take effect unless and until (y) such dispute is resolved in accordance with
Section 10.7 below in favor of the Party alleging such breach, default, failure or other act or omission or (z) the non-terminating
Party’s denial that the alleged breach, default, failure or other act or omissions is in fact a breach, default, failure
or other act or omission giving rise to a right of termination hereunder ceases to be in good faith.

 

10.5         Termination
by TGTX. TGTX has the right to terminate this Agreement without cause by giving CTI one
hundred and eighty days prior written notice in whole or on a Licensed Product by Licensed Product basis. Any milestones achieved
by TGTX during this one hundred and eighty-day period will be due and payable to CTI.

 

10.6         Effect
of Termination

 

(a)          No
release. Upon termination of this Agreement for any reason, nothing in this Agreement may be construed to release either party
from any obligation that matured prior to the effective date of the termination.

 

(b)          Survival.
The provisions of Section 6.1(a) (patent expenses) Article V (Financial Provisions), Section 3.1.2 (Publicity –paragraph
10.6(c) (Inventory), Article IX (Indemnification), Sections 9.7 – 9.10 (Insurance), Article VIII (Representations and Warranties)
and Section 10.7 (Dispute Resolution) survive termination or expiration of this Agreement.

 

    	 	32	 

     

    

 

(c)          Inventory.
TGTX, any Affiliate(s) and any Sublicensees whose sublicenses are not converted as provided in paragraph 10.6(d) below, may, after
the effective date of termination, sell all Licensed Products that are in inventory as of the date of written notice of termination,
and complete and sell Licensed Products which the licensed entity(ies) can reasonably demonstrate were in the process of manufacture
as of the date of written notice of termination, provided that TGTX shall pay to CTI the royalties thereon as required by Article
V and shall submit the reports required by Section 5.10 on the sales of Licensed Products.

 

(d)          Sublicenses.
Any Sublicenses will terminate contemporaneously with this Agreement; provided, however, that any Sublicenses that are not in default
under the sublicense agreement shall, upon DFCI’s and CTI’s written approval, survive and remain in full force and
effect so long as the Sublicensee agrees to be bound by all of the provisions of this Agreement, if not otherwise already provided
for in the sublicense agreement. Such approval by DFCI and CTI shall not be unreasonably withheld and shall not require the payment
of additional consideration.

 

(e)          If
(i) this Agreement is in effect at the time of the termination of the License Agreement and (ii) TGTX is not an Affiliate of CTI
at such time then, upon the written approval by DFCI, this Agreement survive and remain in full force and TGTX hereby agrees to
be bound by the terms of the License Agreement pursuant to Section 10.6(d) of the License Agreement. If DFCI does not approve such
survival, then this Agreement shall terminate upon termination of the License Agreement. Such approval by DFCI shall not be unreasonably
withheld and shall not require the payment of additional consideration.

 

(f)          Pursuant
to the License Agreement, TGTX is deemed an Affiliate of CTI, and thus at the time the License Agreement is terminated, this Agreement
shall automatically terminate at such time; provided, that pursuant to Section 2.5, TGTX shall have the right to cure any breach
and that CTI will not voluntarily terminate the License Agreement with TGTX’s prior written consent. 

 

10.7         Dispute
Resolution.

 

(a)          Negotiation
between the Parties. The parties shall first attempt to resolve any controversy that arises from this Agreement, or claim for
breach of the Agreement, by good faith negotiations, first between their respective business development representatives and then,
if necessary, between senior representatives for the Parties.

 

(b)          Non-Binding
Mediation. If the controversy or claim cannot be settled through good faith negotiation between the parties, the parties agree
first to try in good faith to settle their dispute by non-binding mediation under the Mediation Rules of the American Arbitration
Association, before resorting to arbitration, litigation or other dispute resolution procedure.

 

    	 	33	 

     

    

 

ARTICLE
XI

MISCELLANEOUS PROVISIONS

 

11.1         Relationship
of the Parties. Nothing in this Agreement is intended or shall be deemed to constitute
a partnership, agency, joint venture or employer-employee relationship between the Parties. No Party shall have any right or authority
to commit or legally bind any other Party in any way whatsoever including, without limitation, the making of any agreement, representation
or warranty and each Party agrees to not purport to do so.

 

11.2         Assignment.

 

(a)          Any
assignment not in accordance with this Section 11.2 shall be void.

 

(b)          No
assignment shall relieve the assigning Party of any of its responsibilities or obligations hereunder.

 

(c)          TGTX
may not transfer or assign its rights or licenses or delegate its obligations under this Agreement, in whole or in part, by operation
of law or otherwise, to any Third Party without the prior written consent of CTI, which consent shall not be unreasonably withheld,
conditioned or delayed; provided that, notwithstanding the foregoing, TGTX may, without such consent, assign its rights
or licenses and/or delegate its obligations under this Agreement to (i) an Affiliate or (ii) a Third Party in connection with a
Sale Event (and for the avoidance of doubt, at such time the extension of rights set forth in Section 2.5 shall terminate and the
licenses granted to TGTX in Section 2 shall become effective). As a condition to any permitted assignment hereunder, the assignee
must expressly assume, in a writing delivered to CTI and signed by a duly authorized officer of the assignee (and in a form reasonably
acceptable to CTI) all of TGTX’s obligations under this Agreement, whether arising before, at or after the assignment. 

 

11.3         Further
Actions. Each Party agrees to execute, acknowledge and deliver such further instruments
and to do all such other acts as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 

11.4         Force
Majeure. No Party shall be liable to any other Party or be deemed to have breached or
defaulted under this Agreement for failure or delay in the performance of any of its obligations under this Agreement (other than
obligations for the payment of money) for the time and to the extent such failure or delay is caused by or results from acts of
God, earthquake, riot, civil commotion, terrorism, war, strikes or other labor disputes, fire, flood, failure or delay of transportation,
omissions or delays in acting by a governmental authority, acts of a government or an agency thereof or judicial orders or decrees
or restrictions or any other like reason which is beyond the control of the respective Party. The Party affected by force majeure
shall provide the other Party with full particulars thereof as soon as it becomes aware of the same (including its best estimate
of the likely extent and duration of the interference with its activities), and shall use Commercially Reasonable Efforts to overcome
the difficulties created thereby and to resume performance of its obligations hereunder as soon as practicable, and the time for
performance shall be extended for a number of days equal to the duration of the force majeure.

 

    	 	34	 

     

    

 

11.5         Entire
Agreement of the Parties; Amendments. This Agreement and the Schedules hereto constitute
and contain the entire understanding and agreement of the Parties respecting the subject matter hereof and cancel and supersede
any and all prior or contemporaneous negotiations, correspondence, understandings and agreements between the Parties, whether oral
or written, regarding such subject matter (provided, that any and all previous nondisclosure/nonuse obligations are not superseded
and remain in full force and effect in addition to the nondisclosure/nonuse provisions hereof). Each Party acknowledges that it
has not relied, in deciding whether to enter into this Agreement on this Agreement’s expressly stated terms and conditions,
on any representations, warranties, agreements, commitments or promises which are not expressly set forth within this Agreement.
No modification or amendment of any provision of this Agreement shall be valid or effective unless made in a writing referencing
this Agreement and signed by a duly authorized officer of each Party.

 

11.6         Governing
Law. This Agreement shall be governed by and interpreted in accordance with the laws of
the State of New York, excluding application of any conflict of laws principles.

 

11.7         Notices
and Deliveries. Any notice, request, approval or consent required or permitted to be given
under this Agreement shall be in writing and shall be deemed to have been sufficiently given if and only if delivered in person,
by email or by express courier service to the Party to which it is directed at its physical or email address shown below or such
other physical or email address as such Party shall have last given by such written notice to the other Party.

 

If to CTI, addressed to:

 

Checkpoint Therapeutics, Inc.

2 Gansevoort Street, 9th Floor

New York, NY 10014

Attention: James F. Oliviero, CEO

Email: jfo@checkpointtx.com

 

If to TGTX, addressed to:

 

TG Therapeutics,
Inc.

2 Gansevoort Street, 9th Floor

New York, NY 10014

Attention: Sean Power, CFO

Email: sp@tgtxinc.com

 

11.8         Waiver.
No waiver of any provision of this Agreement shall be valid or effective unless made in a writing referencing this Agreement and
signed by a duly authorized officer of the waiving Party. A waiver by a Party of any of the terms and conditions of this Agreement
in any instance shall not be deemed or construed to be a waiver of such term or condition for the future, or of any other term
or condition hereof.

 

    	 	35	 

     

    

 

11.9         Rights
and Remedies are Cumulative. Except to the extent expressly set forth herein, all rights,
remedies, undertakings, obligations and agreements contained in or available upon violation of this Agreement shall be cumulative
and none of them shall be in limitation of any other remedy or right authorized in law or in equity, or any undertaking, obligation
or agreement of the applicable Party.

 

11.10         Severability.
This Agreement is severable. When possible, each provision of this Agreement will be interpreted in such manner as to be effective
and valid under applicable Law, but if any provision of this Agreement is held to be to any extent prohibited by or invalid under
applicable Law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of this Agreement (or of such provision). The Parties shall make a good faith effort to replace the invalid or unenforceable
provision with a valid one which in its economic effect is most consistent with the invalid or unenforceable provision.

 

11.11         Third
Party Beneficiaries. Except for the rights of Indemnified Parties pursuant to Article
IX hereof and the rights of Sublicensees set forth in Sections 2.3 and 10.6(d), the terms and provisions of this Agreement are
intended solely for the benefit of each Party hereto and their respective successors or permitted assigns and it is not the intention
of the Parties to confer third-party beneficiary rights upon any other person, including without limitation Sublicensees. The enforcement
of any obligation of CTI under this Agreement shall only be pursued by TGTX or such Indemnified Party, and not Sublicensees (except
as set forth in Sections 2.3 and 10.6(d)).

 

11.12         No
Implied License. No right or license is granted to TGTX hereunder by implication, estoppel,
or otherwise to any know-how, patent or other intellectual property right owned or controlled by CTI or its Affiliates, except
by an express license granted hereunder. No right or license is granted to CTI hereunder by implication, estoppel, or otherwise
to any know-how, patent or other intellectual property right owned or controlled by TGTX or its Affiliates, except by an express
license granted hereunder.

 

11.13         No
Right of Set-Off. Except as expressly provided in Article 5 of this Agreement, TGTX shall
not have a right to set-off any royalties, milestones or other amount due to CTI under this Agreement against any damages incurred
by TGTX for a breach by CTI of this Agreement.

 

11.14         Equitable
Relief. Each Party recognizes that the covenants and agreements herein and their continued
performance as set forth in this Agreement are necessary and critical to protect the legitimate interests of the other Party, that
the other Party would not have entered into this Agreement in the absence of such covenants and agreements and the assurance of
continued performance as set forth in this Agreement, and that a Party’s breach or threatened breach of such covenants and
agreements may cause the opposed Party irreparable harm and significant injury, the amount of which will be extremely difficult
to estimate and ascertain, thus potentially making any remedy at law or in damages inadequate. Therefore, each Party agrees that
an opposed Party shall be entitled to seek specific performance, an order restraining any breach or threatened breach of Article
VII and all other provisions of this Agreement, and any other equitable relief (including but not limited to temporary, preliminary
and/or permanent injunctive relief). This right shall be in addition to and not exclusive of any other remedy available to such
other Party at law or in equity.

 

    	 	36	 

     

    

 

11.15         Interpretation.
The language used in this Agreement is the language chosen by the Parties to express their mutual intent, and no provision of this
Agreement shall be interpreted for or against a Party because that Party or its attorney drafted the provision.

 

11.16         Construction.
The words “include,” “includes” and “including” shall be deemed to be followed by the phrase
“without limitation.” All references herein to Articles, Sections and Schedules shall be deemed references to Articles
and Sections of, and Schedules to, this Agreement unless the context shall otherwise require. 

 

11.17         Counterparts.
This Agreement may be executed in counterparts, each of which will be deemed an original, and all of which together will be deemed
to be one and the same instrument. A facsimile or a portable document format (.pdf) copy of this Agreement, including the signature
pages, will be deemed an original.

 

[the remainder of this page
has been left blank intentionally]

 

    	 	37	 

     

    

 

IN WITNESS WHEREOF,
the Parties have caused this Amended and Restated Collaboration Agreement to be executed and delivered by their respective duly
authorized officers as of the day and year first above written.

 

	CHECKPOINT THERAPEUTICS, INC.	 
	 	 
	By:	/s/ James Oliviero	 
	 	 
	Name:	 James Oliviero	 
	 	 
	Title:	CEO	 
	 	 
	TG THERAPEUTICS, INC.	 
	 	 
	By:	/s/ Michael S. Weiss	 
	 	 
	Name:	 Michael S. Weiss	 
	 	 
	Title:	CEO	 

 

    	 	38Document

Exhibit 10.1

NEWLINK GENETICS CORPORATION
2009 EQUITY INCENTIVE PLAN
ADOPTED BY THE BOARD OF DIRECTORS: MAY 13, 2009
APPROVED BY THE STOCKHOLDERS:  JULY 15, 2009
AMENDED BY THE BOARD: DECEMBER 4, 2009 AND MARCH 3, 2010
APPROVED BY THE STOCKHOLDERS: MAY 15, 2010
AMENDED BY THE BOARD: OCTOBER 29, 2010
APPROVED BY THE STOCKHOLDERS: JANUARY 7, 2011
AMENDED BY THE BOARD OF DIRECTORS: MARCH 22, 2019
APPROVED BY THE STOCKHOLDERS: MAY 9, 2019
1.GENERAL.
(a) Successor to and Continuation of Prior Plan.  The Plan is intended as the successor to and continuation of the NewLink Genetics Corporation 2000 Equity Incentive Plan (the “Prior Plan”).  Following the Effective Date, no additional stock awards shall be granted under the Prior Plan.  Any shares remaining available for issuance pursuant to the exercise of options or issuance or settlement of stock awards under the Prior Plan as of the Effective Date (the “Prior Plan’s Available Reserve”) shall become available for issuance pursuant to Stock Awards granted hereunder.  From and after the Effective Date, all outstanding stock awards granted under the Prior Plan shall remain subject to the terms of the Prior Plan; provided, however, any shares subject to outstanding stock awards granted under the Prior Plan that expire or terminate for any reason prior to exercise or settlement or are forfeited because of the failure to meet a contingency or condition required to vest such shares, which shares would otherwise return to the Prior Plan (the “Returning Shares”) shall become available for issuance pursuant to Awards granted hereunder.  All Awards granted on or after the Effective Date of this Plan shall be subject to the terms of this Plan; provided that Awards granted pursuant to the terms of the Plan prior to its amendment in March 2019 shall continue to be governed by the terms of the Plan prior to such amendment.
(b) Eligible Award Recipients.  The persons eligible to receive Awards are Employees, Directors and Consultants.
(c) Available Awards.  The Plan provides for the grant of the following Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) Stock Appreciation Rights (iv) Restricted Stock Awards, (v) Restricted Stock Unit Awards, (vi) Performance Stock Awards, and (vii) Other Stock Awards.
(d) Purpose.  The Company, by means of the Plan, seeks to secure and retain the services of the group of persons eligible to receive Awards as set forth in Section 1(b), to provide incentives for such persons to exert maximum efforts for the success of the Company and any Affiliate and to provide a means by which such eligible recipients may be given an opportunity to benefit from increases in value of the Common Stock through the granting of Awards.

 

2. ADMINISTRATION.
(a) Administration by Board.  The Board shall administer the Plan unless and until the Board delegates administration of the Plan to a Committee or Committees, as provided in Section 2(c).
(b) Powers of Board.  The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan:
(i) To determine from time to time (A) which of the persons eligible under the Plan shall be granted Awards; (B) when and how each Award shall be granted; (C) what type or combination of types of Award shall be granted; (D) the provisions of each Award granted (which need not be identical), including the time or times when a person shall be permitted to receive cash or Common Stock pursuant to a Stock Award; (E) the number of shares of Common Stock with respect to which a Stock Award shall be granted to each such person; and (F) the Fair Market Value applicable to a Stock Award.
(ii) To construe and interpret the Plan and Awards granted under it, and to establish, amend and revoke rules and regulations for its administration.  The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan or Award fully effective.
(iii) To settle all controversies regarding the Plan and Awards granted under it.
(iv) To accelerate the time at which an Award may first be exercised or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Award stating the time at which it may first be exercised or the time during which it will vest.
(v) To suspend or terminate the Plan at any time.  Suspension or termination of the Plan shall not impair rights and obligations under any Award granted while the Plan is in effect except with the written consent of the affected Participant.
(vi) To amend the Plan in any respect the Board deems necessary or advisable, including, without limitation, by adopting amendments relating to Incentive Stock Options and certain nonqualified deferred compensation under Section 409A of the Code and/or to bring the Plan or Awards granted under the Plan into compliance therewith, subject to the limitations, if any of applicable law.  However, except as provided in Section 10(a) relating to Capitalization Adjustments, to the extent required by applicable law or listing requirements, stockholder approval shall be required for any amendment of the Plan that either (A) materially increases the number of shares of Common Stock available for issuance under the Plan, (B) materially expands the class of individuals eligible to receive Awards under the Plan, (C) materially increases the benefits accruing to Participants under the Plan or materially reduces the price at which shares of Common Stock may be issued or purchased under the Plan, (D) materially extends the term of the Plan, or (E) expands the types of Awards available for issuance under the Plan. Except as provided above, rights under any Award granted before amendment of the Plan 
 

shall not be impaired by any amendment of the Plan unless (1) the Company requests the consent of the affected Participant, and (2) such Participant consents in writing.
(vii) To submit any amendment to the Plan for stockholder approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of (A) Section 422 of the Code regarding “incentive stock options” or (B) Rule 16b-3.
(viii) To approve forms of Award Agreements for use under the Plan and to amend the terms of any one or more Awards, including, but not limited to, amendments to provide terms more favorable to the Participant than previously provided in the Award Agreement, subject to any specified limits in the Plan that are not subject to Board discretion; provided however, that except with respect to amendments that disqualify or impair the status of an Incentive Stock Option, a Participant’s rights under any Award shall not be impaired by any such amendment unless (A) the Company requests the consent of the affected Participant, and (B) such Participant consents in writing.  Notwithstanding the foregoing, subject to the limitations of applicable law, if any, the Board may amend the terms of any one or more Awards without the affected Participant’s consent if necessary to maintain the qualified status of the Award as an Incentive Stock Option or to bring the Award into compliance with Section 409A of the Code.
(ix) Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company and that are not in conflict with the provisions of the Plan or Awards.
(x) To adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Employees, Directors or Consultants who are foreign nationals or employed outside the United States.
(c) Delegation to Committee.
(i) General.  The Board may delegate some or all of the administration of the Plan to a Committee or Committees.  If administration of the Plan is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board that have been delegated to the Committee, including the power to delegate to a subcommittee of the Committee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board.  The Committee may, at any time, abolish the subcommittee and/or revest in the Committee any powers delegated to the subcommittee.  The Board may retain the authority to concurrently administer the Plan with the Committee and may, at any time, revest in the Board some or all of the powers previously delegated.
(ii) Rule 16b-3 Compliance.  The Committee may consist solely of two or more Non-Employee Directors, in accordance with Rule 16b-3.

 

(d) Delegation to an Officer.  The Board may delegate to one (1) or more Officers the authority to do one or both of the following (i) designate Employees who are providing Continuous Service to the Company or any of its Subsidiaries who are not Officers to be recipients of Options and Stock Appreciation Rights (and, to the extent permitted by applicable law, other Stock Awards) and the terms thereof, and (ii) determine the number of shares of Common Stock to be subject to such Stock Awards granted to such Employees; provided, however, that the Board resolutions regarding such delegation shall specify the total number of shares of Common Stock that may be subject to the Stock Awards granted by such Officer and that such Officer may not grant a Stock Award to himself or herself.  Notwithstanding the foregoing, the Board may not delegate authority to an Officer to determine the Fair Market Value pursuant to Section 14(v)(iii) below.
(e) Effect of Board’s Decision. All determinations, interpretations and constructions made by the Board in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons.
(f) Repricing; Cancellation and Re-Grant of Stock Awards.  Neither the Board nor any Committee will have the authority to (i) reduce the exercise, purchase or strike price of any outstanding Option or SAR under the Plan, or (ii) cancel any outstanding Option or SAR that has an exercise price or strike price greater than the then-current Fair Market Value of the Common Stock in exchange for cash or other Stock Awards under the Plan, unless the stockholders of the Company have approved such an action within 12 months prior to such an event.
(g) Dividends and Dividend Equivalents. Dividends or dividend equivalents may be paid or credited, as applicable, with respect to any shares of Common Stock subject to a Stock Award (other than an Option or SAR), as determined by the Board and contained in the applicable Stock Award Agreement; provided, however, that (i) no dividends or dividend equivalents may be paid with respect to any such shares before the date such shares have vested under the terms of such Stock Award Agreement, (ii) any dividends or dividend equivalents that are credited with respect to any such shares will be subject to all of the terms and conditions applicable to such shares under the terms of such Stock Award Agreement (including, but not limited to, any vesting conditions), and (iii) any dividends or dividend equivalents that are credited with respect to any such shares will be forfeited to the Company on the date, if any, such shares are forfeited to or repurchased by the Company due to a failure to meet any vesting conditions under the terms of such Stock Award Agreement.
3. SHARES SUBJECT TO THE PLAN.
(a) Share Reserve.  Subject to Section 10(a) relating to Capitalization Adjustments, the aggregate number of shares of Common Stock that may be issued pursuant to Stock Awards from and after the Effective Date shall not exceed 12,400,653 shares (the “Share Reserve”), which number is the sum of (i) 1,309,523 shares approved by the stockholders on July 15, 2009, (ii) 1,238,095 shares approved by the stockholders on May 15, 2010, (iii) 714,285 shares approved by the stockholders on January 7, 2011, and (iv) an aggregate of 9,138,750 shares automatically added to the share reserve on January 1 of each year during the period beginning 
 

January 1, 2012 through and including January 1, 2019, plus the Returning Shares, if any, as such shares become available from time to time.  In addition, the number of shares of Common Stock available for issuance under the Plan shall automatically increase on January 1st of each year commencing on January 1, 2020 and ending on (and including) January 1, 2029, in an amount equal to three percent (3%) of the total number of shares of Common Stock outstanding on December 31st of the preceding calendar year.  Notwithstanding the foregoing, the Board may act prior to the first day of any calendar year, to provide that there shall be no increase in the share reserve for such calendar year or that the increase in the share reserve for such calendar year shall be a lesser number of shares of Common Stock than would otherwise occur pursuant to the preceding sentence.  For clarity, the Share Reserve in this Section 3(a) is a limitation on the number of shares of Common Stock that may be issued pursuant to the Plan and does not limit the granting of Stock Awards except as provided in Section 8(a).  Shares may be issued in connection with a merger or acquisition as permitted by, as applicable, NASDAQ Listing Rule 5635(c) or, if applicable, NYSE Listed Company Manual Section 303A.08, AMEX Company Guide Section 711 or other applicable rule, and such issuance shall not reduce the number of shares available for issuance under the Plan.  Furthermore, if a Stock Award or any portion thereof (i) expires or otherwise terminates without all of the shares covered by such Stock Award having been issued or (ii) is settled in cash (i.e., the Participant receives cash rather than stock), such expiration, termination or settlement shall not reduce (or otherwise offset) the number of shares of Common Stock that may be available for issuance under the Plan.
(b) Reversion of Shares to the Share Reserve.  
(i) Shares Available For Subsequent Issuance.  If (A) any shares of Common Stock subject to a Stock Award are not issued because such Stock Award or any portion thereof expires or otherwise terminates without all of the shares covered by such Stock Award having been issued or is settled in cash (i.e., the Participant receives cash rather than stock), (B) any shares of Common Stock issued pursuant to a Stock Award are forfeited back to or repurchased by the Company because of the failure to meet a contingency or condition required for the vesting of such shares, or (C) with respect to a Full Value Award, any shares of Common Stock are reacquired or withheld (or not issued) by the Company to satisfy a tax withholding obligation in connection with such Full Value Award, such shares will again become available for issuance under the Plan (collectively, the “2009 Plan Returning Shares”).
(ii) Shares Not Available For Subsequent Issuance.  Any shares of Common Stock reacquired or withheld (or not issued) by the Company to satisfy the exercise or purchase price of a Stock Award will no longer be available for issuance under the Plan, including any shares subject to a Stock Award that are not delivered to a Participant because such Stock Award is exercised through a reduction of shares subject to such Stock Award (i.e., “net exercised”).  In addition, any shares reacquired or withheld (or not issued) by the Company to satisfy a tax withholding obligation in connection with an Option or Stock Appreciation Right, or any shares repurchased by the Company on the open market with the proceeds of the exercise or strike price of an Option or Stock Appreciation Right will no longer be available for issuance under the Plan.

 

(c) Incentive Stock Option Limit.  Notwithstanding anything to the contrary in this Section 2(f) and, subject to the provisions of Section 10(a) relating to Capitalization Adjustments, the aggregate maximum number of shares of Common Stock that may be issued pursuant to the exercise of Incentive Stock Options shall be fifty million (50,000,000) shares of Common Stock.
(d) Source of Shares.  The stock issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock, including shares repurchased by the Company on the open market or otherwise.
4. ELIGIBILITY.
(a) Eligibility for Specific Stock Awards.  Incentive Stock Options may be granted only to employees of the Company or a “parent corporation” or “subsidiary corporation” thereof (as such terms are defined in Sections 424(e) and (f) of the Code).  Stock Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants; provided, however, Nonstatutory Stock Options and SARs may not be granted to Employees, Directors and Consultants who are providing Continuous Service only to any “parent” of the Company, as such term is defined in Rule 405 promulgated under the Securities Act, unless the stock underlying such Stock Awards is treated as “service recipient stock” under Section 409A of the Code because the Stock Awards are granted pursuant to a corporate transaction (such as a spin off transaction) or unless such Stock Awards comply with the distribution requirements of Section 409A of the Code.
(b) Ten Percent Stockholders.  A Ten Percent Stockholder shall not be granted an Incentive Stock Option unless the exercise price of such Option is at least one hundred ten percent (110%) of the Fair Market Value on the date of grant and the Option is not exercisable after the expiration of five (5) years from the date of grant.
5. NON‐DISCRETIONARY GRANTS TO NON‐EMPLOYEE DIRECTORS 
(a) Initial Grants.  Without any further action of the Board, each person who is elected or appointed for the first time to be a Non‐Employee Director automatically shall, upon the date of his or her initial election or appointment to be a Non‐Employee Director by the Board or stockholders of the Company, be granted an Initial Grant as an Option to purchase a number of shares equal to the lesser of (i) $250,000 divided by the per share grant date fair value that will be used for reporting the compensation under applicable accounting guidance, and (ii) 125,000 shares (subject to Section 10(a) relating to Capitalization Adjustments).  Thirty-three percent (33%) of the shares shall vest on the first anniversary of the date of such Initial Grant recipient’s election as a Non-Employee Director and the remaining sixty-seven percent (67%) of the shares shall vest in a series of twenty-four (24) successive equal monthly installments over the two (2)-year period following the first anniversary of the date of election, subject to Participant’s Continuous Service as of each such date. 
(b) Annual Grants.  Without any further action of the Board, a Non‐Employee Director shall be granted an Annual Grant as follows: On the day following each Annual Meeting commencing with the Annual Meeting in 2018, each person who is then a 
 

Non‐Employee Director automatically shall be granted an Annual Grant as an Option to purchase a number of shares equal to the lesser of (i) $150,000 divided by the per share grant date fair value that will be used for reporting the compensation under applicable accounting guidance, and (ii) 50,000 shares (subject to Section 10(a) relating to Capitalization Adjustments).  One hundred percent (100%) of the shares shall vest on the earlier of (i) the first anniversary of the date of grant and (ii) the date of the first Annual Meeting following the date of grant, in each case subject to Participant’s Continuous Service as of such date. 
6. PROVISIONS RELATING TO OPTIONS AND STOCK APPRECIATION RIGHTS.
Each Option or SAR shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate.  All Options shall be separately designated Incentive Stock Options or Nonstatutory Stock Options at the time of grant, and, if certificates are issued, a separate certificate or certificates shall be issued for shares of Common Stock purchased on exercise of each type of Option. If an Option is not specifically designated as an Incentive Stock Option, then the Option shall be a Nonstatutory Stock Option. The provisions of separate Options or SARs need not be identical; provided, however, that each Option Agreement or Stock Appreciation Right Agreement shall conform to (through incorporation of provisions hereof by reference in the applicable Award Agreement or otherwise) the substance of each of the following provisions:
(a) Term.  Subject to the provisions of Section 4(b) regarding Ten Percent Stockholders, no Option or SAR shall be exercisable after the expiration of ten (10) years from the date of its grant or such shorter period specified in the Award Agreement.
(b) Exercise Price.  Subject to the provisions of Section 4(b) regarding Ten Percent Stockholders, the exercise price (or strike price) of each Option or SAR shall be not less than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option or SAR on the date the Option or SAR is granted.  Notwithstanding the foregoing, an Option or SAR may be granted with an exercise price (or strike price) lower than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option or SAR if such Option or SAR is granted pursuant to an assumption of or substitution for another option or stock appreciation right pursuant to a Corporate Transaction and in a manner consistent with the provisions of Sections 409A and, if applicable, 424(a) of the Code.  Each SAR will be denominated in shares of Common Stock equivalents.
(c) Purchase Price for Options.  The purchase price of Common Stock acquired pursuant to the exercise of an Option shall be paid, to the extent permitted by applicable law and as determined by the Board in its sole discretion, by any combination of the methods of payment set forth below.  The Board shall have the authority to grant Options that do not permit all of the following methods of payment (or otherwise restrict the ability to use certain methods) and to grant Options that require the consent of the Company to utilize a particular method of payment.  The permitted methods of payment are as follows:
(i) by cash, check, bank draft or money order payable to the Company;

 

(ii) pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of the stock subject to the Option, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds;
(iii) by delivery to the Company (either by actual delivery or attestation) of shares of Common Stock;
(iv) if the option is a Nonstatutory Stock Option, by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Common Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; provided, however, that the Company shall accept a cash or other payment from the Participant to the extent of any remaining balance of the aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued; provided, further, that shares of Common Stock will no longer be subject to an Option and will not be exercisable thereafter to the extent that (A) shares issuable upon exercise are reduced to pay the exercise price pursuant to the “net exercise,” (B) shares are delivered to the Participant as a result of such exercise, and (C) shares are withheld to satisfy tax withholding obligations;  or
(v) in any other form of legal consideration that may be acceptable to the Board.
(d) Exercise and Payment of a SAR.  To exercise any outstanding Stock Appreciation Right, the Participant must provide written notice of exercise to the Company in compliance with the provisions of the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right.  The appreciation distribution payable on the exercise of a Stock Appreciation Right will be not greater than an amount equal to the excess of (A) the aggregate Fair Market Value (on the date of the exercise of the Stock Appreciation Right) of a number of shares of Common Stock equal to the number of Common Stock equivalents in which the Participant is vested under such Stock Appreciation Right, and with respect to which the Participant is exercising the Stock Appreciation Right on such date, over (B) the strike price that will be determined by the Board at the time of grant of the Stock Appreciation Right.  The appreciation distribution in respect to a Stock Appreciation Right may be paid in Common Stock, in cash, in any combination of the two or in any other form of consideration, as determined by the Board and contained in the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right.
(e) Transferability of Options and SARs.  The Board may, in its sole discretion, impose such limitations on the transferability of Options and SARs as the Board shall determine.  In the absence of such a determination by the Board to the contrary, the following restrictions on the transferability of Options and SARs shall apply:
(i) Restrictions on Transfer.  An Option or SAR shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the Participant; provided, however, that the Board may, in its sole discretion, permit transfer of the Option or SAR in a manner that is not prohibited by 
 

applicable tax and securities laws upon the Participant’s request.  Except as explicitly provided herein, neither an Option nor a SAR may be transferred for consideration.
(ii) Domestic Relations Orders.  Notwithstanding the foregoing, an Option or SAR may be transferred pursuant to a domestic relations order; provided, however, that if an Option is an Incentive Stock Option, such Option may be deemed to be a Nonstatutory Stock Option as a result of such transfer.
(iii) Beneficiary Designation.  Notwithstanding the foregoing, the Participant may, by delivering written notice to the Company, in a form provided by or otherwise satisfactory to the Company and any broker designated by the Company to effect Option exercises, designate a third party who, in the event of the death of the Participant, shall thereafter be entitled to exercise the Option or SAR and receive the Common Stock or other consideration resulting from such exercise.  In the absence of such a designation, the executor or administrator of the Participant’s estate shall be entitled to exercise the Option or SAR and receive the Common Stock or other consideration resulting from such exercise.
(f) Vesting Generally.  The total number of shares of Common Stock subject to an Option or SAR may vest and therefore become exercisable in periodic installments that may or may not be equal.  The Option or SAR may be subject to such other terms and conditions on the time or times when it may or may not be exercised (which may be based on the satisfaction of Performance Goals or other criteria) as the Board may deem appropriate.  The vesting provisions of individual Options or SARs may vary.  
(g) Termination of Continuous Service.  Except as otherwise provided in the applicable Award Agreement or other agreement between the Participant and the Company, if a Participant’s Continuous Service terminates (other than for Cause or upon the Participant’s death or Disability), the Participant may exercise his or her Option or SAR (to the extent that the Participant was entitled to exercise such Award as of the date of termination of Continuous Service) but only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the Participant’s Continuous Service (or such longer or shorter period specified in the applicable Award Agreement), or (ii) the expiration of the term of the Option or SAR as set forth in the Award Agreement.  If, after termination of Continuous Service, the Participant does not exercise his or her Option or SAR within the time specified herein or in the Award Agreement (as applicable), the Option or SAR shall terminate.
(h) Extension of Termination Date.  If the exercise of an Option or SAR following the termination of the Participant’s Continuous Service (other than for Cause or upon the Participant’s death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the Option or SAR shall terminate on the earlier of (i) the expiration of a total period of three (3) months (that need not be consecutive) after the termination of the Participant’s Continuous Service during which the exercise of the Option or SAR would not be in violation of such registration requirements, or (ii) the expiration of the term of the Option or SAR as set forth in the applicable Award Agreement.  In addition, unless otherwise provided in a Participant’s Award Agreement, if the sale of any Common Stock received upon exercise of an Option or 
 

SAR following the termination of the Participant’s Continuous Service (other than for Cause) would violate the Company’s insider trading policy, then the Option or SAR shall terminate on the earlier of (i) the expiration of a period equal to the applicable post-termination exercise period after the termination of the Participant’s Continuous Service during which the sale of the Common Stock received upon exercise of the Option or SAR would not be in violation of the Company’s insider trading policy, or (ii) the expiration of the term of the Option or SAR as set forth in the applicable Award Agreement.
(i) Disability of Participant.  Except as otherwise provided in the applicable Award Agreement or other agreement between the Participant and the Company, if a Participant’s Continuous Service terminates as a result of the Participant’s Disability, the Participant may exercise his or her Option or SAR (to the extent that the Participant was entitled to exercise such Option or SAR as of the date of termination of Continuous Service), but only within such period of time ending on the earlier of (i) the date twelve (12) months following such termination of Continuous Service (or such longer or shorter period specified in the Award Agreement), or (ii) the expiration of the term of the Option or SAR as set forth in the Award Agreement.  If, after termination of Continuous Service, the Participant does not exercise his or her Option or SAR within the time specified herein or in the Award Agreement (as applicable), the Option or SAR (as applicable) shall terminate.
(j) Death of Participant.  Except as otherwise provided in the applicable Award Agreement or other agreement between the Participant and the Company, if (i) a Participant’s Continuous Service terminates as a result of the Participant’s death, or (ii) the Participant dies within the period (if any) specified in the Award Agreement for exercisability after the termination of the Participant’s Continuous Service (for a reason other than death), then the Option or SAR may be exercised (to the extent the Participant was entitled to exercise such Option or SAR as of the date of death) by the Participant’s estate, by a person who acquired the right to exercise the Option or SAR by bequest or inheritance or by a person designated to exercise the Option or SAR upon the Participant’s death, but only within the period ending on the earlier of (i) the date eighteen (18) months following the date of death (or such longer or shorter period specified in the Award Agreement), or (ii) the expiration of the term of such Option or SAR as set forth in the Award Agreement.  If, after the Participant’s death, the Option or SAR is not exercised within the time specified herein or in the Award Agreement (as applicable), the Option or SAR shall terminate.
(k) Termination for Cause.  Except as explicitly provided otherwise in a Participant’s Award Agreement or other individual written agreement between the Company or any Affiliate and the Participant, if a Participant’s Continuous Service is terminated for Cause, the Option or SAR shall terminate immediately upon such Participant’s termination of Continuous Service , and the Participant shall be prohibited from exercising his or her Option or SAR from and after the time of such termination of Continuous Service.
(l) Non-Exempt Employees.  No Option or SAR, whether or not vested, granted to an Employee who is a non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, shall be first exercisable for any shares of Common Stock until at least six (6) months following the date of grant of the Option or SAR. Notwithstanding the foregoing, 
 

consistent with the provisions of the Worker Economic Opportunity Act, (i) in the event of the Participant’s death or Disability, (ii) upon a Corporate Transaction in which such Option or SAR is not assumed, continued, or substituted, (iii) upon a Change in Control, or (iv) upon the Participant’s retirement (as such term may be defined in the Participant’s Award Agreement or in another applicable agreement or in accordance with the Company’s then current employment policies and guidelines), any such vested Options and SARs may be exercised earlier than six months following the date of grant.  The foregoing provision is intended to operate so that any income derived by a non-exempt employee in connection with the exercise or vesting of an Option or SAR will be exempt from his or her regular rate of pay.
7. PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS AND SARS.
(a) Restricted Stock Awards.  Each Restricted Stock Award Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate.  To the extent consistent with the Company’s Bylaws, at the Board’s election, shares of Common Stock may be (i) held in book entry form subject to the Company’s instructions until any restrictions relating to the Restricted Stock Award lapse; or (ii) evidenced by a certificate, which certificate shall be held in such form and manner as determined by the Board.  The terms and conditions of Restricted Stock Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Award Agreements need not be identical; provided, however, that each Restricted Stock Award Agreement shall conform to (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions:
(i) Consideration.  A Restricted Stock Award may be awarded in consideration for (A) cash, check, bank draft or money order payable to the Company, (B) past services to the Company or an Affiliate, or (C) any other form of legal consideration (including future services) that may be acceptable to the Board, in its sole discretion, and permissible under applicable law.
(ii) Vesting.  Shares of Common Stock awarded under the Restricted Stock Award Agreement may be subject to forfeiture to the Company in accordance with a vesting schedule to be determined by the Board.
(iii) Termination of Participant’s Continuous Service.  If a Participant’s Continuous Service terminates, the Company may receive through a forfeiture condition or a repurchase right any or all of the shares of Common Stock held by the Participant that have not vested as of the date of termination of Continuous Service under the terms of the Restricted Stock Award Agreement.
(iv) Transferability.  Rights to acquire shares of Common Stock under the Restricted Stock Award Agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the Restricted Stock Award Agreement, as the Board shall determine in its sole discretion, so long as Common Stock awarded under the Restricted Stock Award Agreement remains subject to the terms of the Restricted Stock Award Agreement.

 

(v) Dividends.  A Restricted Stock Award Agreement may provide that any dividends paid on Restricted Stock will be subject to the same vesting and forfeiture restrictions as apply to the shares subject to the Restricted Stock Award to which they relate.
(b) Restricted Stock Unit Awards.  Each Restricted Stock Unit Award Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate.  The terms and conditions of Restricted Stock Unit Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Unit Award Agreements need not be identical; provided, however, that each Restricted Stock Unit Award Agreement shall conform to (through incorporation of the provisions hereof by reference in the Agreement or otherwise) the substance of each of the following provisions:
(i) Consideration.  At the time of grant of a Restricted Stock Unit Award, the Board will determine the consideration, if any, to be paid by the Participant upon delivery of each share of Common Stock subject to the Restricted Stock Unit Award. The consideration to be paid (if any) by the Participant for each share of Common Stock subject to a Restricted Stock Unit Award may be paid in any form of legal consideration that may be acceptable to the Board, in its sole discretion, and permissible under applicable law.
(ii) Vesting.  At the time of the grant of a Restricted Stock Unit Award, the Board may impose such restrictions on or conditions to the vesting of the Restricted Stock Unit Award as it, in its sole discretion, deems appropriate.
(iii) Payment.  A Restricted Stock Unit Award may be settled by the delivery of shares of Common Stock, their cash equivalent, any combination thereof or in any other form of consideration, as determined by the Board and contained in the Restricted Stock Unit Award Agreement.
(iv) Additional Restrictions.  At the time of the grant of a Restricted Stock Unit Award, the Board, as it deems appropriate, may impose such restrictions or conditions that delay the delivery of the shares of Common Stock (or their cash equivalent) subject to a Restricted Stock Unit Award to a time after the vesting of such Restricted Stock Unit Award.
(v) Dividend Equivalents.  Dividend equivalents may be credited in respect of shares of Common Stock covered by a Restricted Stock Unit Award, as determined by the Board and contained in the Restricted Stock Unit Award Agreement.  At the sole discretion of the Board, such dividend equivalents may be converted into additional shares of Common Stock covered by the Restricted Stock Unit Award in such manner as determined by the Board.  Any additional shares covered by the Restricted Stock Unit Award credited by reason of such dividend equivalents will be subject to all of the same terms and conditions of the underlying Restricted Stock Unit Award Agreement to which they relate.
(vi) Termination of Participant’s Continuous Service.  Except as otherwise provided in the applicable Restricted Stock Unit Award Agreement, such portion of the Restricted Stock Unit Award that has not vested will be forfeited upon the Participant’s termination of Continuous Service.

 

(c) Performance Stock Awards.
(i) Performance Stock Awards.  A Performance Stock Award is a Stock Award that may vest or may be exercised contingent upon the attainment during a Performance Period of certain Performance Goals.  A Performance Stock Award may, but need not, require the completion of a specified period of Continuous Service. The length of any Performance Period, the Performance Goals to be achieved during the Performance Period, and the measure of whether and to what degree such Performance Goals have been attained shall be conclusively determined by the Committee, in its sole discretion.  The Board may provide for or, subject to such terms and conditions as the Board may specify, may permit a Participant to elect for, the payment of any Performance Stock Award to be deferred to a specified date or event.  In addition, to the extent permitted by applicable law and the applicable Award Agreement, the Board may determine that cash may be used in payment of Performance Stock Awards.
(ii) Board Discretion.  The Board retains the discretion to reduce or eliminate the compensation or economic benefit due upon attainment of Performance Goals and to define the manner of calculating the Performance Criteria it selects to use for a Performance Period.  
(d) Other Stock Awards.  Other forms of Stock Awards valued in whole or in part by reference to, or otherwise based on, Common Stock, including the appreciation in value thereof (e.g., options or stock rights with an exercise price or strike price less than 100% of the Fair Market Value of the Common Stock at the time of grant) may be granted either alone or in addition to Stock Awards provided for under Section 5, Section 6 and the preceding provisions of this Section 7.  Subject to the provisions of the Plan, the Board shall have sole and complete authority to determine the persons to whom and the time or times at which such Other Stock Awards will be granted, the number of shares of Common Stock (or the cash equivalent thereof) to be granted pursuant to such Other Stock Awards and all other terms and conditions of such Other Stock Awards.
8. COVENANTS OF THE COMPANY.
(a) Availability of Shares.  During the terms of the Stock Awards, the Company shall keep available at all times the number of shares of Common Stock reasonably required to satisfy such Stock Awards.
(b) Securities Law Compliance.  The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any such Stock Award.  If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority that counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell Common Stock upon exercise of such Stock Awards unless and until such authority is obtained. A Participant shall not be eligible for the grant of a Stock Award or the subsequent issuance of Common Stock pursuant 
 

to the Stock Award if such grant or issuance would be in violation of any applicable securities law.
(c) No Obligation to Notify or Minimize Taxes.  The Company shall have no duty or obligation to any Participant to advise such holder as to the time or manner of exercising such Stock Award.  Furthermore, the Company shall have no duty or obligation to warn or otherwise advise such holder of a pending termination or expiration of a Stock Award or a possible period in which the Stock Award may not be exercised.  The Company has no duty or obligation to minimize the tax consequences of a Stock Award to the holder of such Stock Award.
9. MISCELLANEOUS.
(a) Use of Proceeds from Sales of Common Stock.  Proceeds from the sale of shares of Common Stock pursuant to Stock Awards shall constitute general funds of the Company.
(b) Corporate Action Constituting Grant of Stock Awards.  Corporate action constituting a grant by the Company of a Stock Award to any Participant shall be deemed completed as of the date of such corporate action, unless otherwise determined by the Board, regardless of when the instrument, certificate, or letter evidencing the Stock Award is communicated to, or actually received or accepted by, the Participant.
(c) Stockholder Rights.  No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to such Stock Award unless and until (i) such Participant has satisfied all requirements for exercise of the Stock Award pursuant to its terms, if applicable, and (ii) the issuance of the Common Stock subject to such Stock Award has been entered into the books and records of the Company.
(d) No Employment or Other Service Rights.  Nothing in the Plan, any Stock Award Agreement or any other instrument executed thereunder or in connection with any Award granted pursuant thereto shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or shall affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate, or (iii) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.
(e) Incentive Stock Option $100,000 Limitation.  To the extent that the aggregate Fair Market Value (determined at the time of grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and any Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or portions thereof that exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory Stock Options, notwithstanding any contrary provision of the applicable Option Agreement(s).

 

(f) Investment Assurances.  The Company may require a Participant, as a condition of exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring Common Stock subject to the Stock Award for the Participant’s own account and not with any present intention of selling or otherwise distributing the Common Stock.  The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (A) the issuance of the shares upon the exercise or acquisition of Common Stock under the Stock Award has been registered under a then currently effective registration statement under the Securities Act, or (B) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws.  The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Common Stock.
(g) Withholding Obligations.  Unless prohibited by the terms of a Stock Award Agreement, the Company may, in its sole discretion, satisfy any federal, state or local tax withholding obligation relating to an Award by any of the following means or by a combination of such means: (i) causing the Participant to tender a cash payment; (ii)  withholding shares of Common Stock from the shares of Common Stock issued or otherwise issuable to the Participant in connection with the Award; provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law (or such lesser amount as may be necessary to avoid classification of the Stock Award as a liability for financial accounting purposes); (iii) withholding cash from an Award settled in cash; (iv) withholding payment from any amounts otherwise payable to the Participant; or (v) by such other method as may be set forth in the Award Agreement.
(h) Electronic Delivery.  Any reference herein to a “written” agreement or document shall include any agreement or document delivered electronically, filed publicly at www.sec.gov (or any successor website thereto) or posted on the Company’s intranet.
(i) Deferrals.  To the extent permitted by applicable law, the Board, in its sole discretion, may determine that the delivery of Common Stock or the payment of cash, upon the exercise, vesting or settlement of all or a portion of any Award may be deferred and may establish programs and procedures for deferral elections to be made by Participants.  Deferrals by Participants will be made in accordance with Section 409A of the Code. Consistent with Section 409A of the Code, the Board may provide for distributions while a Participant is still an employee or otherwise providing services to the Company.  The Board is authorized to make deferrals of Awards and determine when, and in what annual percentages, Participants may receive payments, including lump sum payments, following the Participant’s termination of Continuous Service, and implement such other terms and conditions consistent with the provisions of the Plan and in accordance with applicable law.

 

(j) Compliance with Section 409A.  To the extent that the Board determines that any Award granted hereunder is subject to Section 409A of the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions necessary to avoid the consequences specified in Section 409A(a)(1) of the Code.  To the extent applicable, the Plan and Award Agreements shall be interpreted in accordance with Section 409A of the Code.  Notwithstanding anything to the contrary in this Plan (and unless the Award Agreement specifically provides otherwise), if the shares of Common Stock are publicly traded and a Participant holding an Award that constitutes “deferred compensation” under Section 409A of the Code is a “specified employee” for purposes of Section 409A of the Code, no distribution or payment of any amount shall be made upon a “separation from service” before a date that is six (6) months following the date of such Participant’s “separation from service” (as defined in Section 409A of the Code without regard to alternative definitions thereunder) or, if earlier, the date of the Participant’s death, unless such distribution or payment can be made in a manner that complies with Section 409A of the Code.
(k) Clawback/Recovery.  All Stock Awards granted under the Plan will be subject to recoupment in accordance with any clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law.  In addition, the Board may impose such other clawback, recovery or recoupment provisions in a Stock Award Agreement as the Board determines necessary or appropriate, including but not limited to a reacquisition right in respect of previously acquired shares of Common Stock or other cash or property upon the occurrence of Cause.  No recovery of compensation under such a clawback policy will be an event giving rise to a right to resign for “good reason” or “constructive termination” (or similar term) under any agreement with the Company or an Affiliate.
10. ADJUSTMENTS UPON CHANGES IN COMMON STOCK; OTHER CORPORATE EVENTS.
(a) Capitalization Adjustments.  In the event of a Capitalization Adjustment, the Board shall appropriately and proportionately adjust: (i) the class(es) and maximum number of securities subject to the Plan pursuant to Section 3(a), (ii) the class(es) and maximum number of securities that may be issued pursuant to the exercise of Incentive Stock Options pursuant to Section 3(b)(ii), (iii) the class(es) and maximum number of securities to be granted as an Initial Grant or as an Annual Grant pursuant to Section 5(a) and 5(b), respectively, and (iv) the class(es) and number of securities and price per share of stock subject to outstanding Stock Awards.  The Board shall make such adjustments, and its determination shall be final, binding and conclusive.
(b) Dissolution or Liquidation.  Except as otherwise provided in the Stock Award Agreement, in the event of a dissolution or liquidation of the Company, all outstanding Stock Awards (other than Stock Awards consisting of vested and outstanding shares of Common Stock not subject to a forfeiture condition or the Company’s right of repurchase) shall terminate immediately prior to the completion of such dissolution or liquidation, and the shares of Common Stock subject to the Company’s repurchase rights or subject to a forfeiture condition may be repurchased or reacquired by the Company notwithstanding the fact that the holder of 
 

such Stock Award is providing Continuous Service, provided, however, that the Board may, in its sole discretion, cause some or all Stock Awards to become fully vested, exercisable and/or no longer subject to repurchase or forfeiture (to the extent such Stock Awards have not previously expired or terminated) before the dissolution or liquidation is completed but contingent on its completion.
(c) Corporate Transaction.  The following provisions shall apply to Stock Awards in the event of a Corporate Transaction unless otherwise provided in the instrument evidencing the Stock Award or any other written agreement between the Company or any Affiliate and the Participant or unless otherwise expressly provided by the Board at the time of grant of a Stock Award.
(i) Stock Awards May Be Assumed.  In the event of a Corporate Transaction, any surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) may assume or continue any or all Stock Awards outstanding under the Plan or may substitute similar stock awards for Stock Awards outstanding under the Plan (including but not limited to, awards to acquire the same consideration paid to the stockholders of the Company pursuant to the Corporate Transaction), and any reacquisition or repurchase rights held by the Company in respect of Common Stock issued pursuant to Stock Awards may be assigned by the Company to the successor of the Company (or the successor’s parent company, if any), in connection with such Corporate Transaction.  A surviving corporation or acquiring corporation (or its parent) may choose to assume or continue only a portion of a Stock Award or substitute a similar stock award for only a portion of a Stock Award, or may choose to assume or continue the Stock Awards held by some, but not all Participants.  The terms of any assumption, continuation or substitution shall be set by the Board.
(ii) Stock Awards Held by Current Participants.  In the event of a Corporate Transaction in which the surviving corporation or acquiring corporation (or its parent company) does not assume or continue such outstanding Stock Awards or substitute similar stock awards for such outstanding Stock Awards, then with respect to Stock Awards that have not been assumed, continued or substituted and that are held by Participants whose Continuous Service has not terminated prior to the effective time of the Corporate Transaction (referred to as the “Current Participants”), the vesting of any such time-based Stock Awards (and, with respect to Options and Stock Appreciation Rights, the time when such Stock Awards may be exercised) shall be accelerated in full (and with respect to performance-based Stock Awards, vesting shall be deemed to be satisfied at the target level) to a date prior to the effective time of such Corporate Transaction (contingent upon the effectiveness of the Corporate Transaction) as the Board shall determine (or, if the Board shall not determine such a date, to the date that is five (5) days prior to the effective time of the Corporate Transaction), and such Stock Awards shall terminate if not exercised (if applicable) at or prior to the effective time of the Corporate Transaction, and any reacquisition or repurchase rights held by the Company with respect to such Stock Awards shall lapse (contingent upon the effectiveness of the Corporate Transaction).
(iii) Stock Awards Held by Persons other than Current Participants.  In the event of a Corporate Transaction in which the surviving corporation or acquiring corporation (or its parent company) does not assume or continue such outstanding Stock Awards or substitute 
 

similar stock awards for such outstanding Stock Awards, then with respect to Stock Awards that have not been assumed, continued or substituted and that are held by persons other than Current Participants, such Stock Awards shall terminate if not exercised (if applicable) prior to the effective time of the Corporate Transaction; provided, however, that any reacquisition or repurchase rights held by the Company with respect to such Stock Awards shall not terminate and may continue to be exercised notwithstanding the Corporate Transaction.
(iv) Payment for Stock Awards in Lieu of Exercise.  Notwithstanding the foregoing, in the event a Stock Award will terminate if not exercised prior to the effective time of a Corporate Transaction, the Board may provide, in its sole discretion, that the holder of such Stock Award may not exercise such Stock Award but will receive a payment, in such form as may be determined by the Board, equal in value, at the effective time, to the excess, if any, of (A) the value of the property the Participant would have received upon the exercise of the Stock Award (including, at the discretion of the Board, any unvested portion of such Stock Award), over (B) any exercise price payable by such holder in connection with such exercise.
(d) Change in Control.  A Stock Award may be subject to additional acceleration of vesting and exercisability upon or after a Change in Control as may be provided in the Stock Award Agreement for such Stock Award or as may be provided in any other written agreement between the Company or any Affiliate and the Participant, but in the absence of such provision, no such acceleration shall occur.
11. TERMINATION OR SUSPENSION OF THE PLAN.
(a) Plan Term.  The Board may suspend or terminate the Plan at any time.  No Incentive Stock Option will be granted after the tenth anniversary of the earlier of (i) the date the Plan is most recently adopted by the Board, or (ii) the date the Plan is most recently approved by the stockholders of the Company.  No Awards may be granted under the Plan while the Plan is suspended or after it is terminated.
(b) No Impairment of Rights.  Suspension or termination of the Plan shall not impair rights and obligations under any Award granted while the Plan is in effect except with the written consent of the affected Participant.
12. EFFECTIVE DATE OF PLAN.
This Plan shall become effective on the Effective Date.
13. CHOICE OF LAW.  The laws of the State of Iowa shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to that state’s conflict of laws rules.
14. DEFINITIONS.  As used in the Plan, the following definitions shall apply to the capitalized terms indicated below:
(a) “Affiliate” means, at the time of determination, any “parent” or “subsidiary” of the Company as such terms are defined in Rule 405 of the Securities Act.  The Board shall have 
 

the authority to determine the time or times at which “parent” or “subsidiary” status is determined within the foregoing definition.
(b) “Award” means a Stock Award.
(c) “Award Agreement” means a written agreement between the Company and a Participant evidencing the terms and conditions of an Award.
(d) “Board” means the Board of Directors of the Company.
(e) “Capitalization Adjustment” means any change that is made in, or other events that occur with respect to, the Common Stock subject to the Plan or subject to any Stock Award after the Effective Date without the receipt of consideration by the Company through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, large nonrecurring cash dividend, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or any similar equity restructuring transaction, as that term is used in Statement of Financial Accounting Standards No. 123 (revised).  Notwithstanding the foregoing, the conversion of any convertible securities of the Company shall not be treated as a Capitalization Adjustment.
(f) “Cause” shall have the meaning ascribed to such term in any written agreement between the Participant and the Company defining such term and, in the absence of such agreement, such term shall mean, with respect to a Participant, the occurrence of any of the following events that has a material negative impact on the business or reputation of the Company:  (i) such Participant’s attempted commission of, or participation in, a fraud or act of dishonesty against the Company; (ii) such Participant’s intentional, material violation of any contract or agreement between the Participant and the Company or of any statutory duty owed to the Company; (iii)  such Participant’s unauthorized use or disclosure of the Company’s confidential information or trade secrets; or (iv) such Participant’s gross misconduct. The determination that a termination of the Participant’s Continuous Service is either for Cause or without Cause shall be made by the Company, in its sole discretion.  Any determination by the Company that the Continuous Service of a Participant was terminated with or without Cause for the purposes of outstanding Awards held by such Participant shall have no effect upon any determination of the rights or obligations of the Company or such Participant for any other purpose.
(g) “Change in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:
(i) any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction.  Notwithstanding the foregoing, a Change in Control shall not be deemed to occur (A) on account of the acquisition of securities of the Company directly from the Company, (B) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person that acquires the Company’s securities in a transaction or series of related transactions the primary purpose of which is to 
 

obtain financing for the Company through the issuance of equity securities, or (C) solely because the level of Ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the Owner of any additional voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities Owned by the Subject Person over the designated percentage threshold, then a Change in Control shall be deemed to occur;
(ii) there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or (B) more than fifty percent (50%) of the combined outstanding voting power of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such transaction;
(iii) the stockholders of the Company approve or the Board approves a plan of complete dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company shall otherwise occur, except for a liquidation into a parent corporation;
(iv) there is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries to an Entity, more than fifty percent (50%) of the combined voting power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition; or
(v) individuals who, on the date the Plan is adopted by the Board, are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board; provided, however, that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes of this Plan, be considered as a member of the Incumbent Board.
Notwithstanding the foregoing or any other provision of this Plan, (A) the term Change in Control shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company, and (B) the definition of Change in Control (or any analogous term) in an individual written agreement between the Company or any Affiliate and the Participant shall supersede the foregoing definition with respect to Awards subject to such agreement; provided, however, 
 

that if no definition of Change in Control or any analogous term is set forth in such an individual written agreement, the foregoing definition shall apply.
(h) “Code” means the Internal Revenue Code of 1986, as amended, including any applicable regulations and guidance thereunder.
(i) “Committee” means a committee of one (1) or more Directors to whom authority has been delegated by the Board in accordance with Section 2(c).
(j) “Common Stock” means the common stock of the Company.
(k) “Company” means NewLink Genetics Corporation, a Delaware corporation.
(l) “Consultant” means any person, including an advisor, who is (i) engaged by the Company or an Affiliate to render consulting or advisory services and is compensated for such services, or (ii) serving as a member of the board of directors of an Affiliate and is compensated for such services.  However, service solely as a Director, or payment of a fee for such service, shall not cause a Director to be considered a “Consultant” for purposes of the Plan. Notwithstanding the foregoing, a person is treated as a Consultant under this Plan only if a Form S-8 Registration Statement under the Securities Act is available to register either the offer or the sale of the Company’s securities to such person.
(m) “Continuous Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated.  A change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s service with the Company or an Affiliate, shall not terminate a Participant’s Continuous Service; provided, however, if the Entity for which a Participant is rendering services ceases to qualify as an Affiliate, as determined by the Board, in its sole discretion, such Participant’s Continuous Service shall be considered to have terminated on the date such Entity ceases to qualify as an Affiliate.  To the extent permitted by law, the Board or the chief executive officer of the Company, in that party’s sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of (i) any leave of absence approved by the Board or chief executive officer, including sick leave, military leave or any other personal leave, or (ii) transfers between the Company, an Affiliate, or their successors.  Notwithstanding the foregoing, a leave of absence shall be treated as Continuous Service for purposes of vesting in an Award only to such extent as may be provided in the Company’s leave of absence policy, in the written terms of any leave of absence agreement or policy applicable to the Participant, or as otherwise required by law.
(n) “Corporate Transaction” means the consummation, in a single transaction or in a series of related transactions, of any one or more of the following events:
(i) a sale or other disposition of all or substantially all, as determined by the Board, in its sole discretion, of the consolidated assets of the Company and its Subsidiaries;

 

(ii) a sale or other disposition of at least ninety percent (90%) of the outstanding securities of the Company;
(iii) a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or
(iv) a merger, consolidation or similar transaction following which the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other property, whether in the form of securities, cash or otherwise.
(o) “Director” means a member of the Board.
(p) “Disability” means, with respect to a Participant,  the inability of such Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months, as provided in Sections 22(e)(3) and 409A(a)(2)(c)(i) of the Code, and shall be determined by the Board on the basis of such medical evidence as the Board deems warranted under the circumstances.
(q) “Effective Date” means the effective date of this Plan, which is the earlier of (i) the date that this Plan is first approved by the Company’s stockholders, or (ii) the date this Plan is adopted by the Board.
(r) “Employee” means any person employed by the Company or an Affiliate.  However, service solely as a Director, or payment of a fee for such services, shall not cause a Director to be considered an “Employee” for purposes of the Plan.
(s) “Entity” means a corporation, partnership, limited liability company or other entity.
(t) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
(u) “Exchange Act Person” means any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” shall not include (i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of the Company or any Subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company, (iii) an underwriter temporarily holding securities pursuant to a registered public offering of such securities, (iv) an Entity Owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their Ownership of stock of the Company; or (v) any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the Effective Date, is the Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities.

 

(v) “Fair Market Value” means, as of any date, the value of the Common Stock determined as follows:
(i) If the Common Stock is listed on any established stock exchange or traded on any established market, the Fair Market Value of a share of Common Stock shall be the closing sales price for such stock as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the date of determination, as reported in a source the Board deems reliable.
(ii) Unless otherwise provided by the Board, if there is no closing sales price for the Common Stock on the date of determination, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.
(iii) In the absence of such markets for the Common Stock, the Fair Market Value shall be determined by the Board in good faith and in a manner that complies with Sections 409A and 422 of the Code.
(w) “Full Value Award” means a Stock Award that is not an Option or SAR with respect to which the exercise or strike price is at least 100% of the Fair Market Value of the Common Stock subject to the Option or SAR on the date of grant.
(x) “Incentive Stock Option” means an option granted pursuant to Section 6 of the Plan that is intended to be, and qualifies as, an “incentive stock option” within the meaning of Section 422 of the Code.
(y) “Non-Employee Director” means a Director who either (i) is not a current employee or officer of the Company or an Affiliate, does not receive compensation, either directly or indirectly, from the Company or an Affiliate for services rendered as a consultant or in any capacity other than as a Director (except for an amount as to which disclosure would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act (“Regulation S-K”)), does not possess an interest in any other transaction for which disclosure would be required under Item 404(a) of Regulation S-K, and is not engaged in a business relationship for which disclosure would be required pursuant to Item 404(b) of Regulation S-K; or (ii) is otherwise considered a “non-employee director” for purposes of Rule 16b-3.
(z) “Nonstatutory Stock Option” means any option granted pursuant to Section 6 of the Plan that does not qualify as an Incentive Stock Option.
(aa) “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act.
(bb) “Option” means an Incentive Stock Option or a Nonstatutory Stock Option to purchase shares of Common Stock granted pursuant to the Plan.
(cc) “Option Agreement” means a written agreement between the Company and an Optionholder evidencing the terms and conditions of an Option grant.  Each Option Agreement shall be subject to the terms and conditions of the Plan.

 

(dd) “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option.
(ee) “Other Stock Award” means an award based in whole or in part by reference to the Common Stock which is granted pursuant to the terms and conditions of Section 7(d).
(ff) “Other Stock Award Agreement” means a written agreement between the Company and a holder of an Other Stock Award evidencing the terms and conditions of an Other Stock Award grant.  Each Other Stock Award Agreement shall be subject to the terms and conditions of the Plan.
(gg) “Own,” “Owned,” “Owner,” “Ownership”  A person or Entity shall be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities.
(hh) “Participant” means a person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award.
(ii) “Performance Criteria” means the one or more criteria that the Board shall select for purposes of establishing the Performance Goals for a Performance Period.  The Performance Criteria that shall be used to establish such Performance Goals may be based on any one of, or combination of, the following as determined by the Board: (i) earnings (including earnings per share and net earnings); (ii) earnings before interest, taxes and depreciation; (iii) earnings before interest, taxes, depreciation and amortization; (iv) total stockholder return; (v) return on equity or average stockholder’s equity; (vi) return on assets, investment, or capital employed; (vii) stock price; (viii) margin (including gross margin); (ix) income (before or after taxes); (x) operating income; (xi) operating income after taxes; (xii) pre-tax profit; (xiii) operating cash flow; (xiv) sales or revenue targets; (xv) increases in revenue or product revenue; (xvi) expenses and cost reduction goals; (xvii) improvement in or attainment of working capital levels; (xiii) economic value added (or an equivalent metric); (xix) market share; (xx) cash flow; (xxi) cash flow per share; (xxii) share price performance; (xxiii) debt reduction; (xxiv) commencement of, progress in, or completion of clinical trials or other development projects; (xxv) receipt of government contracts, grants or awards; (xxvi) stockholders’ equity; (xxvii) capital expenditures; (xxiii) debt levels; (xxix) operating profit or net operating profit; (xxx) workforce diversity; (xxxi) growth of net income or operating income; (xxxii) completion of financing transactions; (xxxiii) completion of, progress under, or receipt of upfront, milestone, royalty or other payments under, licensing or strategic transactions; and (xxxiv) other measures of performance selected by the Board.
(jj) “Performance Goals” means, for a Performance Period, the one or more goals established by the Board for the Performance Period based upon the Performance Criteria.  Performance Goals may be based on a Company-wide basis, with respect to one or more business units, divisions, Affiliates, or business segments, and in either absolute terms or relative to the performance of one or more comparable companies or the performance of one or more relevant indices.  Unless specified otherwise by the Board (i) in the Award Agreement at the time 
 

the Award is granted or (ii) in such other document setting forth the Performance Goals at the time the Performance Goals are established, the Board shall appropriately make adjustments in the method of calculating the attainment of Performance Goals for a Performance Period as follows: (1) to exclude restructuring and/or other nonrecurring charges; (2) to exclude exchange rate effects, as applicable, for non-U.S. dollar denominated Performance Goals; (3) to exclude the effects of changes to generally accepted accounting principles; (4) to exclude the effects of any statutory adjustments to corporate tax rates; and (5) to exclude the effects of any “extraordinary items” as determined under generally accepted accounting principles.  
(kk) “Performance Period” means the period of time selected by the Board over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant’s right to and the payment of a Stock Award.  Performance Periods may be of varying and overlapping duration, at the sole discretion of the Board.
(ll) “Performance Stock Award” means a Stock Award granted under the terms and conditions of Section 7(c)(i).
(mm) “Plan” means this NewLink Genetics Corporation 2009 Equity Incentive Plan.
(nn) “Restricted Stock Award” means an award of shares of Common Stock which is granted pursuant to the terms and conditions of Section 7(a).
(oo) “Restricted Stock Award Agreement” means a written agreement between the Company and a holder of a Restricted Stock Award evidencing the terms and conditions of a Restricted Stock Award grant.  Each Restricted Stock Award Agreement shall be subject to the terms and conditions of the Plan.
(pp) “Restricted Stock Unit Award” means a right to receive shares of Common Stock which is granted pursuant to the terms and conditions of Section 7(b).
(qq) “Restricted Stock Unit Award Agreement” means a written agreement between the Company and a holder of a Restricted Stock Unit Award evidencing the terms and conditions of a Restricted Stock Unit Award grant.  Each Restricted Stock Unit Award Agreement shall be subject to the terms and conditions of the Plan.
(rr) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time.
(ss) “Securities Act” means the Securities Act of 1933, as amended.
(tt) “Stock Appreciation Right” or “SAR” means a right to receive the appreciation on Common Stock that is granted pursuant to the terms and conditions of Section 6.
(uu) “Stock Appreciation Right Agreement” means a written agreement between the Company and a holder of a Stock Appreciation Right evidencing the terms and conditions of a Stock Appreciation Right grant.  Each Stock Appreciation Right Agreement shall be subject to the terms and conditions of the Plan.

 

(vv) “Stock Award” means any right to receive Common Stock granted under the Plan, including an Incentive Stock Option, a Nonstatutory Stock Option, a Restricted Stock Award, a Restricted Stock Unit Award, a Stock Appreciation Right, a Performance Stock Award or any Other Stock Award.
(ww) “Stock Award Agreement” means a written agreement between the Company and a Participant evidencing the terms and conditions of a Stock Award grant.  Each Stock Award Agreement shall be subject to the terms and conditions of the Plan.
(xx) “Subsidiary” means, with respect to the Company, (i) any corporation of which more than fifty percent (50%) of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, limited liability company or other entity in which the Company has a direct or indirect interest (whether in the form of voting or participation in profits or capital contribution) of more than fifty percent (50%).
(yy) “Ten Percent Stockholder” means a person who Owns (or is deemed to Own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Affiliate.

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