Document:

Exhibit 10.13

 

LICENSE AGREEMENT

 

THIS LICENSE AGREEMENT
(this “Agreement”) dated as of October 24, 2014 (the “Effective Date”), is entered into between URIGEN
PHARMACEUTICALS, INC., a Delaware corporation (“Urigen”), with a place of business at 501 Silverside Road PMB#
95, Wilmington, Delaware 19809 and IMPRIMIS PHARMACEUTICALS, INC., a Delaware corporation (“Imprimis”), with a place
of business at 12264 El Camino Real, Suite 350, San Diego, California 92130. The parties hereby agree as follows:

 

1. Definitions.
For the purposes of this Agreement, the following terms shall have the respective meanings set forth below and grammatical variations
of such terms shall have corresponding meanings:

 

1.1 “Affiliate”
shall mean, with respect to any Person, any other Person which directly or indirectly controls, is controlled by, or is under common
control with, such Person. A Person shall be regarded as in control of another Person if it owns, or directly or indirectly controls,
more than fifty percent (50%) of the voting stock or other ownership interest of the other Person, or if it directly or indirectly
possesses the power to direct or cause the direction of the management and policies of the other Person by any means whatsoever.

 

1.2 “Bad Debt”
shall mean an estimate of accounts receivable deemed uncollectible in each calendar quarter, in accordance with GAAP.

 

1.3 “Conversion
Date” shall mean the date on which the license granted by Urigen to Imprimis under Section 3.1.1 converts from nonexclusive
to exclusive as set forth in Section 3.1.4.

 

1.4 “Diligence
Plan” shall mean the diligence plan for the development and commercialization of Products set forth on Exhibit A, as amended
pursuant to the terms of this Agreement.

 

1.5 “Existing Sublicensees”
shall mean the Third Party sublicensees that are parties to the Existing Sublicenses. Existing Sublicensees exclude UCSD Pharmacy.

 

1.6 “Existing Sublicenses”
shall mean the agreements listed on Exhibit B. Existing Sublicenses exclude the UCSD Pharmacy Sublicense as amended pursuant to
Sections 3.5.2 and 3.5.3 below.

 

1.7 “FDA”
shall mean the Food and Drug Administration of the United States, or the successor thereto.

 

1.8 “FD&C Act”
shall mean the United States Federal Food, Drug, and Cosmetic Act, as amended (including, without limitation, by the Drug Quality
and Security Act), and the rules and regulations promulgated thereunder.

 

1.9 “Field of Use”
shall mean the prevention or treatment of disorders of the lower urinary tract, defined as the bladder, prostate, urethra, and
related conditions.

 

1.10 “First Commercial
Sale” shall mean, with respect to any Product, the first sale of such Product to a Third Party.

 

1.11 “Fulfillment
Scope” shall have the meaning set forth in Section 3.5.3.

 

1.12 “GAAP”
shall mean United States generally accepted accounting principles.

 

1.13 “Gross Sales”
shall mean, with respect to any Product, the gross sales price of such Product invoiced, including any applicable sales, use, value-added
and other sales-related direct taxes, in a calendar quarter during the term of this Agreement by Imprimis, its Affiliates or its
or their respective sublicensees to customers who are not Affiliates (or are Affiliates but are the end users of such Product)
prior to any deductions.

 

    	 

    	 

    

  

1.14 “Initial Product”
shall mean a Product containing fifty thousand international units (50,000 iu) of heparin sodium and two hundred milligrams (200
mg) of alkalinized lidocaine HCl in a final dosage form of twenty milliliters (20 ml).

 

1.15 “Inventions”
shall mean, collectively, the inventions disclosed in UCSD Case Docket Nos. SD2003-049 and SD2004-134 and titled “Novel Intravesical
Therapy For Immediate Symptom Relief And Chronic Therapy In Interstitial Cystitis Patients”.

 

1.16 “Joint Committee”
shall mean the joint committee, comprising representatives of Urigen and Imprimis, described in Section 5.

 

1.17 “Licensed
IP Rights” shall mean, collectively, the Licensed Patent Rights and the Licensed Know-How Rights.

 

1.18 “Licensed
Know-How Rights” shall mean all trade secret and other know-how rights in and to all data, information, compositions and
other technology (including, but not limited to, formulae, procedures, processes, methods, protocols, techniques and results of
experimentation and testing) which are necessary or useful for Imprimis to make, use, develop, sell or market a composition, or
to practice any method or process, at any time claimed or disclosed in any issued patent or pending patent application within the
Licensed Patent Rights or which otherwise relates to the Inventions or derivatives, enhancements, improvements and other modifications
thereof, or methods of manufacture or uses of any of the foregoing that are subject to patents or patent applications that share
common priority date with the patents and patent applications listed on Exhibit C.

 

1.19 “Licensed
Patent Rights” shall mean (a) the patents and patent applications listed on Exhibit C, (b) all patents and patent applications
in the Territory that claim or cover the Inventions, the Products, or derivatives, enhancements, improvements and other modifications
thereof, or methods of manufacture or uses of any of the foregoing, that share common priority date with the patents and patent
applications listed on Exhibit C, in each case, in which Urigen heretofore or hereafter has an ownership or (sub)licensable interest,
(c) all divisions, continuations, continuations-in-part, that claim priority to, or common priority with, the patent applications
described in clauses (a) and (b) above or the patent applications that resulted in the patents described in clauses (a) and (b)
above, (d) all patents that have issued or in the future issue from any of the foregoing described patent applications, including
utility model, and (e) all extensions, supplemental protection certificates, registrations, confirmations, reissues, reexaminations,
inter partes reviews, post-grant reviews, restorations, additions and renewals of or to any of the foregoing described patents.

 

1.20 “Net Sales”
shall mean, with respect to any Product, the Gross Sales for such Product invoiced in a calendar quarter during the term of this
Agreement by Imprimis, its Affiliates or its or their respective sublicensees to customers who are not Affiliates (or are Affiliates
but are the end users of such Product), less (a) credits, allowances, discounts and rebates to, and chargebacks from the account
of, such customers including those granted to government agencies (i.e. payments made under the “Medicare Part D Coverage
Gap Discount Program” which shall be trued up and reconciled in the ordinary course of business); (b) sales, use, value-added
and other sales-related direct taxes; and (c) an allowance for uncollectible or Bad Debt not to exceed 3% of Gross Sales for such
calendar quarter.

 

1.21 “Person”
shall mean any individual, partnership, firm, corporation, association, trust, unincorporated organization or other entity, as
well as any syndicate or group of any of the foregoing.

 

1.22 “Product”
shall mean services, compositions, products, dosages and formulations comprising both (a) alkalinized lidocaine (or such other
(i) anesthetics, and/or (ii) other active pharmaceutical ingredients that are not claimed or covered by the Licensed Patent Rights,
in each case, that are agreed to by unanimous agreement of all members of the Joint Committee) and (b) heparin, in each case that
are licensed to or dispensed by compounding pharmacies or outsourcing facilities under Section 503A and/or Section 503B of the
FD&C Act.

 

    	 

    	 

    

  

1.23 “Royalty Period”
shall mean, on a Product-by-Product basis, the period of time beginning on the date of the First Commercial Sale of such Product
and continuing during the term for which a Valid Claim remains in effect and would be infringed but for rights under the Licensed
Patent Rights by the make, use, offer for sale, sale or import of such Product.

 

1.24 “Territory”
shall mean the United States of America, its territories and possessions.

 

1.25 “Third Party”
shall mean any Person other than Imprimis, Urigen or their respective Affiliates.

 

1.26 “UCSD”
shall mean The Regents of The University of California, a California corporation having its statewide administrative offices at
1111 Franklin Street, Oakland, California 94607-5200, represented by its San Diego campus.

 

1.27 “UCSD Pharmacy”
shall mean The Regents of the University of California on behalf of the UC San Diego Health System, a compounding pharmacy having
its principal office at 200 West Arbor Avenue, San Diego, California 92103.

 

1.28 “UCSD License”
shall mean the License Agreement, effective as of June 6, 2004, between EGB Advisors, LLC (a predecessor of Urigen) and UCSD, including
the License Agreement entered into on January 18, 2006 between Urigen and UCSD terminating and restating the aforementioned agreement
and any amendments or restatements thereto as of the Effective Date.

 

1.29 “UCSD Pharmacy
Sublicense” shall mean the formulation and use agreement, made and entered into as of August 4, 2014, between Urigen and
UCSD Pharmacy, a copy of which has been provided by Urigen to Imprimis prior to the Effective Date and as amended pursuant to Section
3.5.3 below.

 

1.30 “Urigen In-Licenses”
shall mean all agreements (as modified, amended or restated as of the Effective Date), pursuant to which Urigen or its Affiliates
derive any right, title or interest in or to the Licensed IP Rights, including, without limitation, the UCSD License.

 

1.31 “Urigen Product”
shall mean services, compositions, products and formulations containing alkalinized anesthetic and heparinoid that are claimed
or covered by the Licensed Patent Rights or use the Licensed Know-How Rights.

 

1.32 “Urigen Product
Launch” shall mean First Commercial Sale of a Urigen Product by Urigen, its Affiliates, or a Third Party after the FDA grants
Urigen approval to market such Urigen Product in the Territory for use in the Field.

 

1.33 “Valid Claim”
shall mean either (a) a claim of an issued and unexpired patent included within the Licensed Patent Rights, which has not been
held permanently revoked, unenforceable or invalid by a decision of a court or other governmental agency of competent jurisdiction,
unappealable or unappealed within the time allowed for appeal, and which has not been admitted to be invalid or unenforceable through
reissue or disclaimer or otherwise or (b) a claim of a pending patent application included within the Licensed Patent Rights, which
claim was filed in good faith, has not been pending for more than five (5) years and has not been abandoned or finally disallowed
without the possibility of appeal or refiling of such application.

 

2. Representations
and Warranties

 

2.1 Mutual Representations
and Warranties. Each party hereby represents and warrants to the other party as follows:

 

2.1.1 Such party is
a corporation duly organized, validly existing and in good standing under the laws of the state in which it is incorporated.

 

2.1.2 Such party (a)
has the corporate power and authority and the legal right to enter into this Agreement and to perform its obligations hereunder,
and (b) has taken all necessary corporate action on its part to authorize the execution and delivery of this Agreement and the
performance of its obligations hereunder. This Agreement has been duly executed and delivered on behalf of such party, and constitutes
a legal, valid, binding obligation, enforceable against such party in accordance with its terms.

 

    	 

    	 

    

 

2.1.3 All necessary
consents, approvals and authorizations of all governmental authorities and other Persons required to be obtained by such party
in connection with this Agreement have been obtained.

 

2.1.4 The execution
and delivery of this Agreement and the performance of such party’s obligations hereunder (a) do not conflict with or violate
any requirement of applicable laws or regulations, and (b) do not conflict with, or constitute a default under, any contractual
obligation of it.

 

2.2 Urigen Representations
and Warranties. Urigen hereby represents and warrants to Imprimis as follows:

 

2.2.1 Urigen (a) is
the sole owner or exclusive licensee of the Licensed IP Rights, (b) except for the Existing Sublicenses and the UCSD Pharmacy Sublicense,
has not granted to any Third Party any license or other interest in the Licensed IP Rights, (c) is not aware of any Third Party
patent, patent application or other intellectual property rights that would be infringed (i) by practicing any process or method
or by making, using or selling any composition which is claimed or disclosed in the Licensed Patent Rights or which constitutes
Licensed Know-How Rights, or (ii) by making, using or selling Products, and (d) other than several individual physicians’
in-office compounding (on a one-off basis), is not aware of any widespread or commercial scale infringement or misappropriation
by a Third Party of the Licensed IP Rights.

 

2.2.2 Urigen has provided
Imprimis with complete and correct copies of all Urigen In-Licenses, and there have been no modifications, amendments or restatements
other than as provided to Imprimis prior to the Effective Date. The Urigen In-Licenses are in full force and effect in accordance
with their terms. After giving effect to this Agreement, there exist no breaches, defaults or events which would (with the giving
of notice, the passage of time or both) give rise to a breach, default or other right to terminate or modify any Urigen In-License.

 

2.2.3 Urigen has provided
Imprimis with complete and correct copies of all Existing Sublicenses and UCSD Pharmacy Sublicense, and there have been no modifications,
amendments or restatements other than as provided to Imprimis prior to the Effective Date

 

2.3 Imprimis
Representations and Warranties. Imprimis hereby represents and warrants to Urigen as follows:

 

2.3.1 All Products
to be supplied or sold pursuant to this Agreement shall comply with all applicable Federal, State and local regulations, requirements
and/or laws.

 

2.3.2 Imprimis has
full power and authority to execute this Agreement and to perform its obligations hereunder.

 

3. License
Grant.

 

3.1 Licensed
IP Rights.

 

3.1.1 Urigen hereby
grants to Imprimis and its Affiliates a nonexclusive license under the Licensed IP Rights to conduct research and to develop, make,
have made, use, offer for sale, sell and import Products in the Territory for use in the Field. Imprimis or its affiliates or sublicensee’s
shall not sponsor or conduct any clinical work without the prior written approval of Urigen.

 

3.1.2 If any patent
owned by Imprimis, either directly or through one of its Affiliates, issues from a patent application that has a priority date
after the Effective Date, claims a Urigen Product and is supported by the results of the work performed by Imprimis or its Affiliates
under this Agreement, then Imprimis hereby grants to Urigen, or will cause to be granted by its Affiliates a worldwide, non-exclusive,
irrevocable, royalty-free, freely transferable license under the claims of such issued patent, solely to the extent they claim
a Urigen Product, to develop, make, have made, use, offer for sale, sell and import Urigen Products for use in the Field.

 

    	 

    	 

    

  

3.1.3 Within the Territory,
Imprimis shall have the right to grant sublicenses under this Agreement consistent with the terms of this Agreement, subject to
Urigen’s prior written consent which shall not be unreasonably withheld, delayed or conditioned. Imprimis shall provide Urigen
with a copy of each executed sublicense agreement and any modifications thereof, along with written certification that the sublicense
is in compliance with the License Agreement. Any authorized sublicenses shall not diminish Imprimis’ obligations under the
License Agreement, and Imprimis shall remain primarily liable for such obligations and for any breach of any provision of this
Agreement by its Affiliates or sublicensees. Promptly after the Urigen Product Launch, Imprimis shall terminate all authorized
sublicenses granted under this Agreement.

 

3.1.4 For a period
commencing on the six (6) month anniversary of the Effective Date, and terminating on the twelve (12) month anniversary of the
Effective Date, Imprimis shall have the right to convert the nonexclusive license granted under Section 3.1.1 to an exclusive license
(with the right to grant sublicenses through multiple tiers) by providing Urigen with written notice to that effect, provided that
such right shall remain nonexclusive solely with respect to the rights granted to UCSD Pharmacy under the UCSD Pharmacy Sublicense.
Subject to Section 3.5, such conversion shall become effective as of the date of such written notice.

 

3.1.5 During the term
of this Agreement, Urigen shall not grant to a Third Party any licenses within the Territory, that would become effective during
the term of this Agreement, related to products that may reasonably be considered competitive to the Products in the Territory
for use in the Field, except as provided in Section 8.2.1(b).

 

3.2 Urigen In-Licenses.
Within the Territory, except for the Existing Sublicenses, Urigen has not transferred or granted, and Urigen shall not transfer
or grant, to any Third Party any license or other interest in the Urigen In-Licenses. Urigen shall timely pay in full all amounts
required to be paid by Urigen, and timely perform in full all obligations required to be performed by Urigen, under all Urigen
In-Licenses. Urigen promptly shall provide Imprimis with copies of all notices and other deliveries received under the Urigen In-Licenses.
Without the prior express written consent of Imprimis (which consent shall not be unreasonably withheld, delayed or conditioned),
Urigen shall not (and shall take no action or make no omission to) modify or waive any provision of any Urigen In-License that
could impair the value of the licenses to Imprimis herein, or to terminate or have terminated any Urigen In-License. If any Urigen
In-License is terminated for any reason, Urigen shall use all commercially reasonable efforts to reinstate such Urigen In-License.
If Urigen is unable to reinstate such license, Urigen shall assist Imprimis using all commercially reasonable efforts to cause
the applicable licensor to grant a direct license under the Licensed IP Rights to Imprimis containing payment terms and conditions
no less favorable to Imprimis than the payment terms and conditions of such Urigen In-License.

 

3.3 Availability
of the Licensed IP Rights. Urigen shall provide Imprimis with a copy of all information available to Urigen relating to the
Licensed IP Rights and/or Inventions.

 

3.4 Technical
Assistance. For a period of one (1) year following the date of this Agreement, Urigen shall provide such technical assistance
to Imprimis as Imprimis reasonably requests regarding the Licensed IP Rights and/or Inventions. Imprimis shall pay to Urigen its
documented reasonable out-of-pocket costs of providing such technical assistance.

 

3.5 Existing
Sublicenses; UCSD Pharmacy Sublicense.

 

3.5.1 Imprimis acknowledges
the existence of the (a) Existing Sublicenses, and (b) the UCSD Pharmacy Sublicense.

 

3.5.2 Within the Territory,
Urigen shall not (i) grant any rights under the Licensed IP Rights to any Third Parties or amend the Existing Sublicenses or UCSD
Pharmacy Sublicense (except as otherwise expressly set forth in this Agreement), or (ii) consent to a sublicense under the UCSD
Pharmacy Sublicense, in each case, without the prior written consent of Imprimis. Urigen shall assign the Existing Sublicenses
to Imprimis immediately after the Conversion Date, provided, however, that (A) Urigen hereby agrees to be solely and fully responsible
for all liabilities, duties and obligations of Urigen relating to acts, omissions or facts arising prior to such assignment, in,
to and under the Existing Sublicenses, and (B) Urigen promptly shall execute and deliver all such instruments of transfer and assignment
(in such form and substance as reasonably requested by Imprimis) and shall take all such other actions as reasonably requested
by Imprimis to effectuate such assignment.

 

    	 

    	 

    

  

3.5.3 Urigen shall
use commercially reasonable efforts to amend the UCSD Pharmacy Sublicense to limit the scope of rights granted to UCSD Pharmacy
thereunder to the fulfillment of prescriptions from UCSD physicians serving patients at a facility owned or operated by UCSD (“Fulfillment
Scope”), and to effectuate such amendment prior to the six (6) month anniversary of the Effective Date. Urigen shall (a)
use commercially reasonable efforts to ensure that during the term of the UCSD Pharmacy Sublicense UCSD Pharmacy provides Urigen
with an annual certificate of compliance with Sections 503A and 503B of the FD&C Act, and (b) provide Imprimis with copies
of all such certificates within ten (10) days after receipt thereof.

 

4. Royalties
and Milestones.

 

4.1 Royalties.

 

4.1.1 Royalties.
Subject to the terms and conditions of this Agreement, Imprimis shall pay to Urigen royalties for sale of Products during the applicable
Royalty Period equal to (a) the greater of (i) fifty cents ($0.50) per milliliter of such Products, and (ii) twenty percent (20%)
of Net Sales of such Products for said Royalty Period, in each case sold by Imprimis, its Affiliates and its and their respective
sublicensees, until the aggregate Gross Sales price of all Products invoiced by Imprimis, its Affiliates or its or their respective
sublicensees to customers who are not Affiliates (or are Affiliates but are the end users of Products) equals to fifteen million
dollars ($15,000,000), or (b) after Imprimis achieves the fifteen million dollars ($15,000,000) aggregate Gross Sales price of
all Products invoiced by Imprimis as above then Imprimis shall pay for said Royalty Period the greater of (i) fifty cents ($0.50)
per milliliter of such Products, and (ii) fifteen percent (15%) of Net Sales of such Product sold by Imprimis, its Affiliates and
its and their respective sublicensees thereafter. Only one royalty shall be owing for a Product regardless of how many Valid Claims
cover such Product. Imprimis, its Affiliates or its or their respective sublicensees shall have the right to provide Third Parties
with Products as samples free of charge (and therefore, not subject to royalties under this Agreement), provided, however, that
the milliliters of such Products provided as samples shall not exceed ten percent (10%) of the milliliters of Products sold and
invoiced by Imprimis, its Affiliates or its or their respective sublicensees under this Agreement in the applicable Royalty Period.

 

4.1.2 Third
Party Royalties. If Imprimis, its Affiliates or its or their respective sublicensees are required to pay royalties to any Third
Party in order to make, have made, use, sell, offer to sale or import Products, then Imprimis shall have the right to credit fifty
percent (50%) of such Third Party royalty payments against the royalties owing to Urigen under Section 4.1.1 with respect to sales
of such Products; provided, however, that Imprimis shall not reduce the amount of the royalties paid to Urigen under Section 4.1.1
by reason of this Section 4.1.2, with respect to sales of such Products to less than fifty cents ($0.50) per milliliter of such
Products.

 

4.1.3 Combination
Products. In the event that Imprimis, its Affiliates or its or their respective sublicensees sell a Product in the form of
a combination product containing any such Product and other ingredients, such as buffers, diluents, adjuvants (collectively, “Inactive
Ingredients”) and/or containers and delivery devices such as vials, syringes, vented needles and Lofric® catheters (collectively,
“Containers and Devices”) (a “Combination Product”), Net Sales of such Combination Product shall be adjusted
by subtracting from the invoiced sales price of such Combination Product the average sales price for the Inactive Ingredients and
Containers and Devices determined in good faith by Imprimis. Imprimis shall not reduce the amount of the royalties paid to Urigen
under Section 4.1.1 by reason of this Section 4.1.3, with respect to sales of such Products to less than fifty cents ($0.50) per
milliliter of such Products. In the event that Imprimis, its Affiliates or its or their respective sublicensees sell a Product
in the form of a combination product containing any such Product and one or more active pharmaceutical ingredients that are not
claimed or covered by the Licensed Patent Rights (whether combined in a single formulation or package, as applicable, or formulated
or packaged separately but sold together for a single price) as agreed to by unanimous agreement of all members of the Joint Committee,
Net Sales of such Combination Product shall be adjusted to account for such active pharmaceutical ingredients as mutually agreed
in writing by the parties.

 

    	 

    	 

    

 

4.1.4 UCSD
Pharmacy Credit. Imprimis shall have the right to credit the aggregate gross sales price of products invoiced in connection
with the UCSD Pharmacy Sublicense sold after the Conversion Date for use outside of the Fulfillment Scope against royalties owing
by Imprimis to Urigen under Section 4.1.1 and minimum annual royalties owing by Imprimis to Urigen under Section 4.2. Urigen shall
timely provide such information (including, without limitation, royalty report information) and take such further actions as reasonably
necessary to effectuate the foregoing.

 

4.1.5 True-Up
for Collected Bad Debt. If during a calendar year during the term of this Agreement Imprimis, its Affiliates and its and their
respective sublicenees collect any amount for Bad Debts deducted in calculating royalties for sale of Products during such calendar
year in accordance with Section 4.1.1 and such amount, if collected during the applicable calendar quarter of such calendar year
in which the applicable sales of Products occurred would have reduced the deduction for Bad Debts for such calendar quarter below
three percent (3%), within forty (40) days after the end of such calendar year, Imprimis shall (a) provide to Urigen a “true-up”
calculation to reconcile the Net Sales for such calendar quarter after giving effect to such collection, and (b) if applicable,
pay to Urigen any unpaid royalties owing on the basis of such reconciled Net Sales in accordance with Section 4.1.1.

 

4.2 Minimum Annual
Royalty. Within forty (40) days after the end of each calendar year commencing with the calendar year during which the Conversion
Date occurs and each anniversary thereafter, during the applicable Royalty Period, Imprimis shall pay to Urigen the following amounts:

 

4.2.1 For the calendar
year during which the Conversion Date occurs, an amount equal to the greater of: (a) one hundred and ten percent (110%) of the
sum of royalties paid by each Existing Sublicensee during the most current twelve (12) months properly reported by Urigen to Imprimis
under Section 4.3 prior to the Conversion Date multiplied by C/12 where C is the number of full calendar months from the Conversion
Date through the end of such calendar year, less royalties already paid by Imprimis to Urigen pursuant to Section 4.1 for such
calendar year; and (b) eight hundred thousand dollars ($800,000) less (i) royalties already paid by Imprimis to Urigen pursuant
to Section 4.1 for such calendar year and (ii) and the sum of royalties paid by each Existing Sublicensee during such calendar
year.

 

4.2.2 For each calendar
year thereafter one hundred and ten percent (110%) of the amount owing during the prior calendar year less royalties paid by Imprimis
to Urigen pursuant to Section 4.1 for such calendar year.

 

4.3 Minimum Royalty
Reports. Within ten (10) business days after the end of each calendar month until the Conversion Date, Urigen shall use commercially
reasonable efforts to deliver to Imprimis a report setting forth the number of prescriptions fulfilled and the amount of royalties
paid by each Existing Sublicensee during such month and the eleven (11) preceding months. Upon written request by Imprimis, Urigen
shall provide Imprimis with such data, information and other materials as reasonably necessary to verify such amounts.

 

4.4 Royalty Reports.
Within forty (40) days after the end of each calendar quarter during the applicable Royalty Period, Imprimis shall deliver to Urigen
a report setting forth for such calendar quarter (a) the calculation of the applicable royalties due under this Agreement for the
sale of each Product; and (b) the volume of all Product(s) provided to Third Parties. Imprimis shall remit the total payments due
for the sale of Products during such calendar quarter at the time such report is made. No such reports or payments will be due
for any Product before the First Commercial Sale of such Product.

 

4.5 Payment Provisions.

 

4.5.1 Payment
Terms. The royalties shown to have accrued by each report provided for under this Section 4 shall be due on the date such report
is due. Payment of royalties in whole or in part may be made in advance of such due date.

 

    	 

    	 

    

  

4.5.2 Withholding
Taxes. Imprimis shall be entitled to deduct the amount of any withholding taxes, value-added taxes or other taxes, levies or
charges with respect to such amounts, other than United States taxes, payable by Imprimis, its Affiliates or its or their respective
sublicensees, or any taxes required to be withheld by Imprimis, its Affiliates or its or their respective sublicensees, to the
extent Imprimis, its Affiliates or its or their respective sublicensees pay to the appropriate governmental authority on behalf
of Urigen such taxes, levies or charges. Imprimis shall use reasonable efforts to minimize any such taxes, levies or charges required
to be withheld on behalf of Urigen by Imprimis, its Affiliates or its or their respective sublicensees. Imprimis promptly shall
deliver to Urigen proof of payment of all such taxes, levies and other charges, together with copies of all communications from
or with such governmental authority with respect thereto.

 

4.6 Audits.

 

4.6.1 Financial
Audits. Upon the written request of Urigen and not more than once in each calendar year, Imprimis shall permit an independent
certified public accounting firm of nationally recognized standing selected by Urigen and reasonably acceptable to Imprimis, at
Urigen’s expense, to have access during normal business hours to such of the financial records of Imprimis or its Affiliates
as may be reasonably necessary to verify the accuracy of the royalty reports hereunder for the eight (8) calendar quarters immediately
prior to the date of such request (other than records for which Urigen has already conducted an audit under this Section. If such
accounting firm concludes that additional amounts were owed during the audited period, Imprimis shall pay such additional amounts
within thirty (30) days after the date Urigen delivers to Imprimis such accounting firm’s written report so concluding. The
fees charged by such accounting firm shall be paid by Urigen; provided, however, if the audit discloses that the royalties payable
by Imprimis for such period are more than one hundred ten percent (110%) of the royalties actually paid for such period, then Imprimis
shall pay the reasonable fees and expenses charged by such accounting firm. Urigen shall cause its accounting firm to retain all
financial information subject to review under this Section 4.6 in strict confidence; provided, however, that Imprimis shall have
the right to require that such accounting firm, prior to conducting such audit, enter into an appropriate non-disclosure agreement
with Imprimis or its Affiliates regarding such financial information. The accounting firm shall disclose to Urigen only whether
the reports are correct or not and the amount of any discrepancy. No other information shall be shared. Urigen shall treat all
such financial information as Imprimis’ confidential information, and shall not disclose such financial information to any
Third Party or use it for any purpose other than as specified in this Section 4.6.

 

4.6.2 Quality
Audits. Imprimis shall permit Urigen or its authorized representative, to conduct inspections and test audits of Imprimis’
and its Affiliate’s facilities, operations and procedures at reasonable time intervals, to the extent necessary to verify
that the quality and performance of the Products produced by Imprimis are in compliance with this Agreement, in each case as mutually
agreed in advance in writing by the parties and subject to standard confidentiality obligations provided by Imprimis.

 

5. Joint
Committee.

 

5.1 Composition.
The Joint Committee shall comprise two (2) named representatives of Urigen and two (2) named representatives of Imprimis. Each
party shall appoint its representatives to the Joint Committee from time to time, and may substitute one or more of its representatives,
in its sole discretion, effective upon written notice to the other party of such change.

 

5.2 Chairperson.
Imprimis shall designate one of its representatives at the Joint Committee as a chairperson (the “Chairperson”). The
Chairperson shall be responsible for organizing the meetings of the Joint Committee by determining the time, date and place therefor.

 

5.3 Purpose.
The Joint Committee shall be responsible for (a) exchanging information between the parties regarding the Diligence Plan and the
activities conducted by Imprimis thereunder, and (b) except for any Product that is the same as the Initial Product, or any Product
that is substantially similar to the Initial Product (provided that the final dosage of such substantially similar Product is equal
to or greater than twenty milliliters (20ml)), determining the Product as set forth in Section 1.22.

 

5.4 Meetings.
Any member of the Joint Committee may request a meeting of the Joint Committee, provided that, unless otherwise mutually agreed
by the parties, such member shall not have the right to request more than one (1) meeting per calendar quarter. The specific times,
dates and places of such meetings will be determined by the Chairperson. Each party may permit such visitors to a meeting of the
Joint Committee as mutually agreed by the parties prior to such meeting. Each party shall be responsible for its own costs in connection
with the meetings of the Joint Committee.

 

    	 

    	 

    

 

5.5 Joint Committee
Dispute Resolution. Any disagreement arising in the Joint Committee shall be presented to the officer (who shall be a Vice
President or more senior officer) of each party that has primarily oversight responsibility for such party’s activities under
the Collaboration, and such officers shall use good faith efforts to resolve such disagreement. If any such disagreement is not
resolved by such officers within thirty (30) days after first presentation in writing to each of such disagreement, then such disagreement
then shall be presented to the Chief Executive Officers of the parties who shall use good faith efforts to resolve such disagreement.

 

6. Diligence.
Imprimis shall use commercially reasonable efforts to diligently make, have made, use, have used, provide, have provided and sell
Products in accordance with the terms of the Diligence Plan (attached hereto as Exhibit A), to make the investment into the promotional
efforts relating to the Products as set forth on the Diligence Plan, and to comply with any regulation, including Sections 503A
and 503B of the FD&C Act, to permit sales of the Product in accordance with the terms and conditions of this Agreement. The
parties acknowledge and agree that performance of any activities and achievement of any objectives described in the Diligence Plan
within timelines set forth therein depend on circumstances beyond Imprimis’ control. Therefore, if Imprimis is unable to
achieve such objectives within the applicable timelines, Imprimis shall have the right to, in good faith, modify such timelines
and otherwise account for circumstances beyond Imprimis’ reasonable control. Any other modifications and amendments to the
Diligence Plan shall be subject to the parties’ mutual written agreement.

 

7. Indemnification.

 

7.1 Indemnification.
Each party (the “Indemnifying Party”) shall defend, indemnify and hold the other party (the “Indemnified Party”)
harmless from all losses, liabilities, damages and expenses (including reasonable attorneys’ fees and costs) incurred as
a result of any Third Party claim, demand, action or proceeding to the extent arising out of any breach by the Indemnifying Party
of any representation, warranty or covenant set forth in this Agreement, or the gross negligence or willful misconduct of the Indemnifying
Party in the performance of its obligations under this Agreement.

 

7.2 Procedure.
The Indemnified Party promptly shall notify the Indemnifying Party of any liability or action in respect of which the Indemnified
Party intends to claim such indemnification, and the Indemnifying Party shall have the right to assume the defense thereof with
counsel selected by the Indemnifying Party. The indemnity agreement in this Section 7 shall not apply to amounts paid in settlement
of any loss, claim, damage, liability or action if such settlement is effected without the consent of the Indemnifying Party, which
consent shall not be unreasonably withheld, delayed or conditioned. The failure to deliver notice to the Indemnifying Party within
a reasonable time after the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve
the Indemnifying Party of any liability to the Indemnified Party under this Section 7, but the omission so to deliver notice to
the Indemnifying Party will not relieve it of any liability that it may have to the Indemnified Party otherwise than under this
Section 7. The Indemnified Party under this Section 7, its employees and agents, shall cooperate fully with the Indemnifying Party
and its legal representatives in the investigation and defense of any action, claim or liability covered by this indemnification.

 

8. Term
and Termination.

 

8.1 Term.
This Agreement shall commence on the Effective Date and, unless terminated earlier pursuant to this Section 7, shall continue in
effect until the first to occur of (a) the Urigen Product Launch, and (b) expiration of Imprimis’ obligation to pay royalties
to Urigen under Section 4. The license grant under Section 3.1 shall be effective at all times prior to termination or expiration
of this Agreement. If this Agreement expires pursuant to this Section 8.1(b), Imprimis shall have a fully paid-up, non-exclusive
license under the Licensed Know-How Rights to conduct research and to develop, make, have made, use, sell, offer for sale and import
Products in the Territory for use in the Field.

 

8.2 Termination.

 

8.2.1 Termination by Imprimis.

 

    	 

    	 

    

 

(a) Except as otherwise
provided in Section 9.4, Imprimis may terminate this Agreement upon or after the breach of any material provision of this Agreement
by Urigen if Urigen has not cured such breach within ninety (90) days after receipt of express written notice thereof by Imprimis;
provided, however, if any default is not capable of being cured within such ninety (90) day period and Urigen is diligently undertaking
to cure such default as soon as commercially feasible thereafter under the circumstances, Imprimis shall have no right to terminate
this Agreement for cause.

 

(b) In addition to the
rights set forth in Section 8.2.1(a) above, Imprimis shall have the right to terminate this Agreement at its option in its sole
discretion upon one hundred eighty (180) days written notice to Urigen. From the time of receipt of written notice of termination,
during the one hundred eighty (180) days prior to termination and thereafter, Urigen shall have the right to enter into agreements
with any Affiliates and/or sublicensees to develop, make, have made, use, sell, offer for sale and import Products after the expiration
of such one hundred eighty (180)-days period on terms and conditions no less favorable than the terms and conditions set forth
in this Agreement.

 

8.2.2 Termination
for Cause by Urigen. Except as otherwise provided in Section 9.4, Urigen may terminate this Agreement upon or after the breach
of any material provision of this Agreement by Imprimis if Imprimis has not cured such breach within ninety (90) days after receipt
of express written notice thereof by Urigen; provided, however, if any default is not capable of being cured within such ninety
(90) day period and Imprimis is diligently undertaking to cure such default as soon as commercially feasible thereafter under the
circumstances, Urigen shall have no right to terminate this Agreement.

 

8.2.3 Termination
caused by Regulatory Mandate. If any state or federal regulatory body, including the FDA, interprets an existing or promulgates
a new rule, law or regulation that prohibits or otherwise materially adversely affects the exercise of rights licensed to Imprimis
under this Agreement, the parties shall use commercially reasonable efforts to take actions and/or amend this Agreement to promptly
and adequately address and account for such rules, laws or regulations. If such actions do not adequately address and account for
such rules, laws or regulations and/or the parties do not mutually agree on terms and conditions of an amendment to this Agreement
that addresses and accounts for such rules, laws or regulations, then either party may terminate this Agreement upon written notice
to the other party.

 

8.3 Effect of
Termination.

 

8.3.1 Effect
of Urigen Product Launch. If the Conversion Date occurs prior to the Urigen Product Launch, Imprimis shall have the option
exercisable on written notice within ninety (90) days after the effective date of termination of this Agreement to become a non-exclusive
distributor of the Urigen Product in the Territory on commercially reasonable and customary terms and conditions for agreements
of this type. After Imprimis exercises such option, the parties shall enter in a mutually acceptable written distribution agreement
consistent with such terms and conditions.

 

8.3.2 Survival.
Sections 4 (solely with respect to outstanding payment obligations as set forth therein), 8 and 9 shall survive termination or
expiration of this Agreement.

 

9. Miscellaneous.

 

9.1 Public Announcements.
Neither party nor its Affiliates shall make any public announcements concerning matters regarding this Agreement or the negotiation
thereof without the prior written consent of the other party unless such disclosure is required by law, in which case the announcing
party shall provide the other party with reasonable notice of such disclosure sufficient to make written comments concerning such
disclosure.

 

9.2 Assignment.
Neither party shall assign its rights or obligations under this Agreement without the prior written consent of the other party;
provided, however, that a party may, without such consent, assign this Agreement and its rights and obligations hereunder (a) to
any Affiliate, or (b) in connection with the transfer or sale of all or substantially all of its business to which this Agreement
relates, or in the event of its merger, consolidation, change in control or similar transaction. Any permitted assignee shall assume
all obligations of its assignor under this Agreement. Any purported assignment in violation of this Section 9.2 shall be void.

 

    	 

    	 

    

  

9.3 Confidentiality.
Each party hereby agrees, and agrees to cause its Affiliates, stockholders, members, and representatives, to keep (a) the terms
of this Agreement and (b) any non-public, confidential or proprietary information of the other party confidential (collectively,
the “Confidential Information”) and, without limiting its other obligations hereunder, will treat and safeguard such
Confidential Information with the same degree of care with which it treats its own confidential information (but in no less a reasonable
degree of care) and to limit access to such terms to such employees, consultants, representatives and professional advisors of
such party who reasonably require such access in connection with the activities contemplated by this Agreement or otherwise to
administer the terms of this Agreement. To the extent practicable, in the event that a party is required to disclose the Confidential
Information pursuant to any law, regulation, or judicial or administrative directive, such party will promptly notify the other
party in order to allow the other party a reasonable period of time to obtain protective or confidential treatment of such terms
before they are disclosed. Either party may disclose the terms of this Agreement (i) to the extent required, in the reasonable
opinion of such party’s legal counsel, to comply with applicable laws, including, without limitation, the rules and regulations
promulgated by the United States Securities and Exchange Commission; and (ii) in connection with a prospective acquisition, merger,
financing, or license for such party, to prospective acquirers or merger candidates or to existing or potential investors or licensees, provided
that prior to such disclosure each such candidate or investor will agree to be bound by obligations of confidentiality
and non-use at least equivalent in scope to those set forth in this Section 9.3. Each party acknowledges that it will be impossible
to measure in money the damage to the other party if such party fails to comply with the obligations imposed by this Section 9.3,
and that, in the event of any such failure, the non-disclosing party may not have an adequate remedy at law or in damages. Accordingly,
each party agrees that injunctive relief or other equitable remedy, in addition to remedies at law or damages, is an appropriate
remedy for any such failure and will not oppose the granting of such relief on the basis that the disclosing party has an adequate
remedy at law. Each party agrees that it will not seek, and agrees to waive any requirement for, the securing or posting of a bond
in connection with the non-disclosing party seeking or obtaining such equitable relief.

 

9.4 Force Majeure.
Neither party shall be held liable or responsible to the other party nor be deemed to have defaulted under or breached this Agreement
for failure or delay in fulfilling or performing any term of this Agreement to the extent, and for so long as, such failure or
delay is caused by or results from causes beyond the reasonable control of the affected party including but not limited to fire,
floods, embargoes, war, acts of war (whether war be declared or not), acts of terrorism, insurrections, riots, civil commotions,
strikes, lockouts or other labor disturbances, acts of God or acts, omissions or delays in acting by any governmental authority
or the other party.

 

9.5 Severability.
Any provision of this Agreement which is illegal, invalid or unenforceable shall be ineffective to the extent of such illegality,
invalidity or unenforceability, without affecting in any way the remaining provisions hereof.

 

9.6 Governing
Law; Exclusive Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of
California, without regard to the conflicts of law principles thereof.

 

9.7 Entire Agreement;
Amendment. This Agreement and each additional agreement and document to be executed and delivered pursuant hereto constitute
all of the agreements of the parties with respect to, and supersede all prior agreements and understandings relating to the subject
matter of, this Agreement or the transactions contemplated by this Agreement. This Agreement may not be modified or amended except
by a written instrument specifically referring to this Agreement signed by the parties hereto.

 

9.8 Waiver.
No waiver by one party of the other party’s obligations, or of any breach or default hereunder by any other party, shall
be valid or effective, unless such waiver is set forth in writing and is signed by the party giving such waiver; and no such waiver
shall be deemed a waiver of any subsequent breach or default of the same or similar nature or any other breach or default by such
other party.

 

    	 

    	 

    

 

9.9 Notices.
Any consent, notice or report required or permitted to be given or made under this Agreement by a party to the other party shall
be in writing, delivered by any lawful means to such other party at its address indicated below, or to such other address as the
addressee shall have last furnished in writing to the addressor and (except as otherwise provided in this Agreement) shall be effective
upon receipt by the addressee.

 

	 	If to Urigen:	Urigen Pharmaceuticals, Inc.
	 	 	501 Silverside Road PMB# 95
	 	 	Wilmington, Delaware 19809
	 	 	Attention: Dan Vickery
	 	 	 
	 	If to Imprimis:	Imprimis Pharmaceuticals, Inc.
	 	 	12264 El Camino Real, Suite 350
	 	 	San Diego, California 92130
	 	 	Attention: Chief Executive Officer

 

9.10 Counterparts.
This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

 

[Remainder of Page Intentionally Left Blank]

 

    	 

    	 

    

  

IN WITNESS WHEREOF,
each of Imprimis and Urigen has caused a duly authorized representative to execute this Agreement on the Effective Date.

 

	URIGEN PHARMACEUTICALS, INC.	 
	 	 	 
	By:	/s/ Dan Vickery	 
	Name: 	Dan Vickery	 
	Title:	C.E.O	 
	 	 	 
	IMPRIMIS PHARMACEUTICALS, INC.	 
	 	 	 
	By:	/s/ Mark L. Baum	 
	Name:	Mark L. Baum	 
	Title:	C.E.O	 

 

	By:	/s/ Gary W. Seelhorst	 
	Name: 	Gary W. Seelhorst	 
	Title:	VP, Corporate Development	 

 

[Signature Page to License Agreement]

 

    	 

    	 

    

  

EXHIBIT A

 

DILIGENCE PLAN

 

    	 

    	 

    

  

EXHIBIT B

 

EXISTING SUBLICENSES

 

    	 

    	 

    

 

EXHIBIT C

 

LICENSED PATENT RIGHTSExhibit 10.16

 

FORMULATION AND USE AGREEMENT

 

 

This Formulation and Use Agreement
(the “Agreement”) is made and entered into as of [                        ] (the “Effective Date”), by and between
Urigen Pharmaceuticals, Inc., a Delaware corporation, having its principal office at 1700 North Broadway, Suite 330, Walnut Creek,
CA 94596 (“URIGEN”), and [                        ],
a compounding pharmacy having its principal office at [                        ] (“PHARMACY”). URIGEN
and PHARMACY are sometimes each hereinafter referred to as a "Party" or collectively as "Parties" to this
Agreement.

 

Whereas,
URIGEN is the owner of certain patent technology and know how relating to an alkalinized lidocaine and heparin formulation
(the “Formulation”), its preparation and use (hereinafter further defined as the “Technology”);

 

Whereas,
physicians often desire to obtain defined dosages of the Formulation for compassionate use with their patients suffering from
disorders of the lower urinary tract and related conditions (the “Use”);

 

Whereas,
PHARMACY wishes to obtain a non-exclusive right to prepare the defined dosages of the Formulation so that it may provide
the same to physicians desiring to obtain the same for compassionate use with their patients; and

 

Whereas,
URIGEN is willing to grant a non-exclusive right to the Technology to PHARMACY, subject to the terms set forth below.

  

Now, Therefore,
in consideration of the above premises and the mutual covenants contained herein, the parties hereby agree as follows:

  

    	 

    	 

    

 

1Definitions.

 

When used in this Agreement, the following
terms shall have the meanings set out in this Article 1. Except as otherwise explicitly provided, all references to Articles and
Sections shall refer to the Articles and Sections of this Agreement, and all references to Schedules shall refer to the Schedules
appended to this Agreement, all of which are incorporated herein by reference.

 

1.1 The term “Affiliate”
shall mean any entity which controls, is controlled by or is under common control with PHARMACY, where “control”
means beneficial ownership of fifty percent (50%) or more of the outstanding shares or securities or the ability otherwise to elect
a majority of the board of directors or other managing authority.

 

1.2 The term “Patented
Technology” shall mean United States Patent Number 7,414,039 titled “Novel Interstitial Therapy for Immediate
Symptom Relief and Chronic Therapy in Interstitial Cystitis” (the “Patent”), and all patent applications and
patents basing priority off the Patent or its predecessor applications, including any continuations, continuations-in-part, divisions,
extensions, renewals, reissues, revivals, re-examinations and foreign counterparts thereof.

 

1.3 The term “Know-How”
shall mean and be defined as technical data, formulae, standards, technical information, specifications, processes,
methods, as well as all information, knowledge, assistance, trade practices and secrets, and improvements thereto related to the
Technology, Formulation and Use, that is divulged, disclosed, or in any way communicated by or for URIGEN to the PHARMACY under
this Agreement, unless such information was, at the time of disclosure, or thereafter becomes part of the general knowledge or
literature which is generally available for public use from other lawful sources. The burden of proving that any information disclosed
hereunder is not confidential Know-How shall rest on the PHARMACY. 

 

    	- 2 -

    	 

    

 

1.4 The term “Technology”
shall mean the Technology and the Know-How provided hereunder.

 

1.5 The term “Formulation”
shall mean alkalinized lidocaine and heparin formulated and prepared through use or incorporation of the Technology.

 

1.6 The term “Field”
shall mean the compassionate use of the Formulation by physicians in patients with disorders of the lower urinary tract,
being defined as the bladder, prostate and urethra.

 

 1.7 The term “Term” shall have the meaning set forth in Section 10.1.

  

1.8 The term “Territory”
shall mean the United States of America and its Territories.

  

2Formulation
and Use Grant.

  

2.1 Use Grant. Subject to the terms
and conditions hereof, URIGEN hereby grants to PHARMACY and its Affiliates during the Term, as defined below, a nonexclusive
right under the Technology and Patented Technology within the Field and Territory to make, have made, use, have used, provide,
have provided, sell, offer for sale and have sold the Formulation.

 

2.2 Sublicenses. PHARMACY shall
not have the right to grant sublicenses, except with the prior written consent of URIGEN. Any authorized sublicenses granted
by PHARMACY shall provide that relevant obligations to URIGEN contained in this Agreement shall be binding upon the SUBPHARMACYS
and shall provide for payments acceptable to URIGEN in its sole discretion.

 

    	- 3 -

    	 

    

 

3Payments.

 

3.1 Payments. PHARMACY shall
pay URIGEN earned royalties throughout the Term of [                        ] per ml for each dose of the Formulation. Payments
shall be made as provided in Article 8 herein.

  

4Ownership
of Intellectual Property.

 

PHARMACY (for
itself, its Affiliates and authorized SUBPHARMACYS) acknowledges and agrees that URIGEN is and shall remain (as to PHARMACY) the
sole owner of the Technology and Formulation, and that PHARMACY (including its Affiliates and authorized SUBPHARMACYS) have no
rights in or to the Technology and Formulation other than the rights specifically granted herein.

 

5Representations
And Disclaimers.

 

5.1 PHARMACY Representations.
PHARMACY hereby represents, warrants and agrees that it:

 

		5.1.1	shall not modify, improve or create derivatives of the
Formulation or Technology without requesting permission from URIGEN in writing and obtaining the prior written approval of URIGEN;

 

		5.1.2	shall make a good faith effort to provide the Formulation
to physicians for the Use within the Territory, but in any case no less than a commercially reasonable effort;

 

		5.1.3	is a corporation duly organized and validly existing
and in good standing under the laws of the State of California, and is duly qualified to conduct its business as presently conducted;

 

    	- 4 -

    	 

    

 

		5.1.4	has full power and authority to execute and deliver this
Agreement and to perform its obligations hereunder;

 

		5.1.5	has taken all necessary legal action to authorize the
execution and delivery of this Agreement, and this Agreement constitutes the legal, valid and binding obligation of PHARMACY enforceable
against PHARMACY in accordance with its terms; and

 

		5.1.6	is not subject to any pending or threatened (i) voluntary
or involuntary bankruptcy, liquidation or similar proceeding or order, (ii) litigation, regulatory, judicial or arbitral proceeding
or order, or (iii) non-competition, license, exclusivity or confidential agreement, any of which would likely affect its ability
to enter into and/or perform its obligations under this Agreement.

 

		5.2	URIGEN Representations. URIGEN hereby represents,
warrants and agrees that it:

 

		5.2.1	has sufficient rights to grant the rights granted herein
to PHARMACY, and that to the best of its knowledge such grant of rights hereunder are free and clear of any known claims of third
parties;

 

		5.2.2	is a corporation duly organized and validly existing
and in good standing under the laws of the state of Delaware, and is duly qualified to conduct its business as presently conducted;

 

		5.2.3	has full power and authority to execute and deliver this
Agreement and to perform its obligations hereunder;

 

		5.2.4	has taken all necessary legal action to authorize the
execution and delivery of this Agreement, and this Agreement constitutes the legal, valid and binding obligation of URIGEN enforceable
against URIGEN in accordance with its terms;

 

    	- 5 -

    	 

    

 

		5.2.5	is not subject to any pending or threatened (i) voluntary
or involuntary bankruptcy, liquidation or similar proceeding or order, (ii) litigation, regulatory, judicial or arbitral proceeding
or order, or (iii) non-competition, license, exclusivity or confidential agreement, any of which would likely affect its ability
to enter into and/or perform its obligations under this Agreement; and

 

		5.2.6	to the best of URIGEN’S knowledge and belief, the
Patent is valid and enforceable.

  

		5.3	Warranty Disclaimer. Nothing in this Agreement
is or shall be construed as:

 

		5.3.1	a warranty or representation by URIGEN as to the validity
or scope of any Patent rights or Know-How, except as provided in Section 5.2 above;

 

 

		5.3.2	a warranty or representation that anything made, used,
practiced, sold or otherwise disposed of under any license granted in this Agreement is or will be free from infringement of patents,
copyrights and other rights of third parties except as provided in Section 5.2 above;

 

		5.3.3	an obligation to bring or prosecute actions or suits
against third parties for infringement, except as provided in Section 5.2 above and to the extent and in the circumstances described
in Section 7;

 

    	- 6 -

    	 

    

 

		5.3.4	a grant by implication, estoppel, or otherwise of any
licenses under patent applications, patents, know-how, trade secrets or other technology of URIGEN other than as provided in Section
2 hereof; or

 

		5.3.5	any other warranty or representation, except as expressly
provided herein.

 

5.4 No Warranty. EXCEPT AS EXPRESSLY
SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED,
INCLUDING WARRANTIES AS TO TITLE, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

5.5 Disclaimer of
Liability. In no event will either Party be liable for any incidental, special, consequential or punitive damages
resulting from this Agreement including, without limitation, the exercise of PHARMACY’S rights under the license
granted pursuant to this Agreement or the use of the Formulation or Technology.

 

6Indemnification
and Insurance.

 

6.1 Indemnification by PHARMACY. PHARMACY
agrees to indemnify, hold harmless and defend URIGEN, its officers, directors, employees, attorneys and agents (each, a
“URIGEN Indemnitee”), against any and all loss, damage or expense (including reasonable attorney’s fees) (collectively,
“Damages”) incurred or sustained by any URIGEN Indemnitee as a result of (a) any breach by PHARMACY of any material
term, provision, or covenant of this Agreement, (b) any inaccuracy in any representation or warranty made by PHARMACY in this
Agreement, (c) any claim by an Affiliate or authorized SUBPHARMACY of PHARMACY arising under this Agreement, (d) any claims for
injury or death related to the preparation, sale, use or administration of the Formulation, (e) any claims related to the preparation
of the Formulation outside of the specifications, Patented Technology, Technology and Know-How
provided by URIGEN, including lack of sterility and (f) any other claims or Damages. Notwithstanding anything to the contrary herein,
PHARMACY shall have no liability to any URIGEN Indemnitee under this Section 6.1 to the extent said Damages arise, in whole or
in part, from the grossly negligent, reckless, intentional or willful acts or omissions of a URIGEN Indemnitee or a breach of the
material terms of this Agreement by URIGEN or a URIGEN Indemnitee. URIGEN shall give written notice to PHARMACY stating specifically
the basis for the claim for Damages, the amount thereof and, in the event of a third party claim, shall tender defense thereof
to PHARMACY as provided in Section 6.3. Amounts due shall be paid within thirty (30) days after demand.

 

    	- 7 -

    	 

    

 

6.2 Indemnification by URIGEN.
URIGEN agrees to indemnify, hold harmless and defend PHARMACY, its officers, directors, employees, and agents (each, a
“PHARMACY Indemnitee”) against any Damages incurred or sustained by any PHARMACY Indemnitee as a result of (a) any
breach by URIGEN of any material term, provision or covenant of this Agreement and (b) any inaccuracy in any representation or
warranty made by URIGEN in this Agreement, (c) any claims related to URIGEN's Formulation, Patented Technology, Technology and
Know-How, and (c) any claims arising under the Patent Laws of the United States and related to URIGEN's Formulation, Patented
Technology and Know-How provided to PHARMACY under this agreement, including without limitation claims for false marking or infringement
by third parties. Notwithstanding anything to the contrary herein, URIGEN shall have no liability to any PHARMACY Indemnitee under
this Section 6.2 for Damages to the extent said Damages arise in whole or in part, from the grossly negligent, reckless, intentional
or willful acts or omissions of a PHARMACY Indemnitee. PHARMACY shall give written notice to URIGEN stating specifically the basis
for the claim for Damages, the amount thereof , and in the event of a third party claim, shall tender defense thereof to URIGEN
as provided in Section 6.3. Amounts due shall be paid within thirty (30) days after demand.

 

6.3Tender of Defense for
Damages. Promptly upon receipt by either Party of a notice of a claim by a third party which may give rise to a claim for
Damages under Section 6.1 or 6.2 of this Agreement, the indemnified Party shall give written notice thereof to the
indemnifying Party. Upon tender of defense, (i) the indemnifying Party shall undertake the defense against such claim and may
contest or settle such claim on such terms, at such time and in such manner as the indemnifying Party, in its sole
discretion, shall elect, (ii) the indemnified Party shall cooperate as reasonably requested (with reasonable out of pocket
expenses, but not soft costs, being reimbursed by the indemnifying Party) in the defense of the claim, provided, however,
that the indemnifying Party may not agree to any settlement which would invalidate any claim of the Patent or which would
impose any ongoing obligation on the indemnified Party without the indemnified Party’s prior written consent, which
shall not be unreasonably withheld. Notwithstanding the foregoing, the indemnified Party shall have the right to participate
in the defense or prosecution of any claim, including hiring their own counsel at the indemnified Party’s own expense,
and the indemnifying Party shall cooperate with the indemnified Party if the indemnified Party does so participate. If the
indemnifying Party fails or refuses to defend any tendered third party claim for Damages, the indemnifying Party may
nevertheless, at its own expense, participate in the defense of such claim by the indemnified Party and in any and all
settlement negotiations relating thereto. In any and all events, the indemnifying Party shall have such access to the records
and files of the indemnified Party relating to any claim for Damages as may be reasonably necessary to effectively defend or
participate in the defense thereof.

 

    	- 8 -

    	 

    

  

6.4 Limitation of Liability.
For purposes of this Article 6 and elsewhere in this Agreement, “Damages” shall not include consequential, exemplary
or punitive damages or diminution in value or loss of bargain type damages which multiply or increase direct or out-of-pocket damages
and shall be determined net of applicable insurance recoveries (but adding back deductible and copay amounts).

 

6.5 Insurance. In
addition to the foregoing, PHARMACY shall use reasonable commercial efforts to obtain and maintain, during the Term
(as defined below), comprehensive general liability insurance, including products liability insurance, with reputable and
financially secure insurance carriers to cover the activities of PHARMACY, and their Affiliates and authorized SUBPHARMACYs,
if any, contemplated by this Agreement.

 

    	- 9 -

    	 

    

 

7Patented
Technology.

 

7.1 Potential Infringement. In
the event PHARMACY or URIGEN becomes aware of any actual or threatened infringement of any of the Patented Technology or
other rights granted hereunder, that Party shall promptly notify the other and the Parties shall discuss the most appropriate
action to take.

 

7.2 Marking. PHARMACY agrees to mark
and to cause any Affiliate or authorized SUBPHARMACY to appropriately mark, as reasonably possible, and in accordance with
URIGEN’s instructions, any Formulation (or its labels) prepared, sold, or otherwise disposed of by it or them with any notice
of patent rights necessary or desirable under applicable law to enable the Patented Technology to be enforced to their fullest
extent. Furthermore, all confidential materials and documentation shall be marked as such prior to providing them to any employee,
agent or representative of PHARMACY.

 

8Reporting,
Verification and Payment.

 

8.1 Books and Records. PHARMACY
agrees to keep proper records and books of account in accordance with good accounting practices, showing the
preparation and sale of the Formulation by dosage form and size in milliliters of Formulation per dosage upon which the
royalty payments of PHARMACY are based, and all other information necessary for the accurate determination of payment to be
made hereunder. PHARMACY agrees to deliver to URIGEN, within ten (10) days after each of the following reporting periods;
February 28th, April 30th, June 30th, August 31st, October 31st and
December 31st, a report showing the information on which the payments herein provided are calculated. URIGEN will
then invoice PHARMACY and shall include this agreement’s identifying number. Invoice shall be submitted to the UC San
Diego Health System, Accounts Payable, PO Box 33268, San Diego, CA 92163. Payments may be made by check made payable to
Urigen Pharmaceuticals, Inc. and sent via express mail to the Addresses listed in Section 13.

 

    	- 10 -

    	 

    

 

8.2 Audit. On reasonable written
notice, URIGEN, at its own expense, shall have the right to have an independent certified public accountant, reasonably
satisfactory to PHARMACY, inspect and audit the books and records of PHARMACY, its Affiliates and its authorized SUBPHARMACY during
usual business hours for the sole purpose of, and only to the extent necessary for, determining the correctness of payments due
under this Agreement. Such examination with respect to any fiscal year shall not take place later than one (1) year following the
expiration of such period and such inspection and audit shall not occur more frequently than once per year.

 

9Improvements

 

9.1Improvements. Any Improvements
in the Formulation or Technology, whether made by URIGEN, PHARMACY, its Affiliates, authorized sublicensees, agents or representatives
shall be promptly disclosed to URIGEN and shall belong solely to URIGEN. PHARMACY shall take all reasonable steps requested by
URIGEN, at URIGEN’S expense, to vest title in said Improvements in URIGEN. As used herein, “Improvements”
shall mean any improvements, modifications, enhancements, new systems, new methods, new treatments or new products or the like
made or derived from the Formulation or Technology.

 

10Term
and Termination.

  

10.1 Term. Unless earlier terminated under
this Section 10, this Agreement shall enter into force on the Effective Date, and shall expire 3 years from Effective Date or
on the earlier to occur of the following (the "Term"):

 

10.1.1 the approval of the
Formulation by the United States Food and Drug Administration for the Use; or

 

    	- 11 -

    	 

    

 

10.1.2 the date of expiration of the last to expire of any patent included in the Patent Technology.

 

10.2 Termination by Either Party.
This Agreement may be terminated by either Party, if the other Party substantially fails to perform or otherwise materially
breaches any of the material terms, covenants or provisions of this Agreement, such termination to be effected by giving written
notice of intent to terminate to the breaching Party stating the grounds therefore. The Party receiving the notice shall have sixty
(60) days thereafter to correct such breach. If such breach is not corrected within said sixty (60) days after notice as aforesaid,
then this Agreement shall automatically terminate. This agreement further may be terminated by any party for any reason upon ninety
(90) days written notice of intent to terminate to the other party.

 

10.3 Termination for Non-Payment.
URIGEN may immediately terminate this Agreement upon thirty (30) days written notice if PHARMACY fails to timely make
any of the payments required under Article 3 and Section 8.1 hereunder.

 

10.4 Consequences of Termination.

  

10.4.1 In the event of expiration of this Agreement
or termination of the Agreement for any reason whatsoever:

  

		10.4.1.1	PHARMACY shall not thereby be discharged from any liability or obligation to
URIGEN which became due or payable prior to the effective date of such expiration or termination; and

 

		10.4.1.2	The rights and obligations of the Parties under Articles and Sections 2.3, 4, 5.1, 5.3, 5.4, 5.5, 6, 9, 10.4,
11 and 12, and any other right or obligation that has accrued prior to termination, shall survive any termination of this Agreement.

  

    	- 12 -

    	 

    

 

10.4.2 In the event of
termination of the Agreement pursuant to Section 10.2.

 

		10.4.2.1	If PHARMACY, its Affiliates or its authorized SUBPHARMACYs have accepted orders for, PHARMACY, its
Affiliates or its authorized SUBPHARMACYS shall have the right to sell and fulfill such accepted orders, subject to the obligation
of PHARMACY to pay URIGEN the royalty payments therefore as provided in Section 3 of this Agreement;

 

		10.4.2.2	Subject to Section 10.3.2.1, PHARMACY shall discontinue, and shall cause its Affiliates to discontinue, the use, marketing
and sale of Formulations and shall assign any authorized sublicenses granted hereunder to URIGEN in accordance with Section 2.2;
and

 

		10.4.2.3	All rights licensed, sold, assigned or transferred by URIGEN to PHARMACY hereunder shall revert to URIGEN, and
PHARMACY agrees to promptly execute all instruments reasonably necessary to re-vest said rights in URIGEN.

  

 

11 Confidential
Information.

  

11.1 Confidentiality. All
confidential business and technical information, including, but not limited to all information related to the Formulation,
Technology, business plans and strategies, technical information of either Party, business contracts, and financial, accounting
and income information (the “Information”), communicated by each Party to the other, including, without limitation,
Information contained in patent applications, business plans and the like, shall be received in strict confidence by the other
Party, its Affiliates and authorized sublicensees, used only for the purposes of this Agreement and not disclosed by the recipient
Party, its Affiliates and SUBPHARMACYS or their respective agents or employees without the prior written consent of the disclosing
Party, unless such Information (i) was in the public domain at the time of disclosure, (ii) later became part of the public domain
through no act or omission of the recipient Party, its employees agents, successors, or assigns, (iii) was lawfully disclosed
to the recipient Party by a third party having the right to disclose it, (iv) was already known by the recipient Party at the
time of disclosure and recipient can so demonstrate by competent written proof or (v) is required to be disclosed to a governmental
agency pursuant to such agency’s rule and regulations in order to secure regulatory approval, provided that the recipient
Party shall first give notice to the disclosing Party of such disclosure and shall have made a reasonable effort to maintain the
confidentiality of such Information. All information provided hereunder whether to PHARMACY, URIGEN, a SUBPHARMACY or authorized
third party, shall be considered confidential information and in the case of Information related to the Patented Technology, shall
be marked according to URIGEN’s instructions with the patent numbers of said issued patents. Nothing contained herein shall
prevent URIGEN, PHARMACY or their Affiliates from disclosing information to their employees, representative, agents and SUBPHARMACYs
(the “Authorized Parties”) so long as such Authorized Parties have signed an agreement binding them to terms and conditions
at least as restrictive as those provided in this Section 11.1 prior to them being provided with said Information.

 

    	- 13 -

    	 

    

 

12Choice
of Law; Dispute Resolution.

 

12.1 Governing Law. This Agreement
is made in accordance with and shall be governed and construed in accordance with the laws of the State of California, as
applied to contracts executed and performed entirely within the State of California, without regard to conflicts of laws rules.

 

12.2 Arbitration. If a
dispute arises between the Parties relating to the interpretation or performance of this Agreement or the grounds for
the termination thereof, the Parties agree to hold a meeting, attended by individuals with decision-making authority
regarding the dispute, to attempt in good faith to negotiate a resolution of the dispute prior to pursuing other available
remedies. If, within thirty (30) days after such meeting, the Parties have not succeeded in negotiating a resolution of the
dispute, such dispute shall be submitted to final and binding arbitration under the then current Licensing Agreement
Arbitration Rules of the American Arbitration Association (“AAA”), with a panel of three (3) arbitrators in San
Francisco, CA; provided, however, that California Code of Civil Procedure § 1283.05 shall apply to any such proceeding.
Such arbitrators shall be selected by the mutual agreement of the Parties or, failing such agreement, shall be selected
according to the aforesaid AAA rules. The Parties shall bear the costs of arbitration equally unless the arbitrators,
pursuant to their right, but not their obligation, require the non-prevailing Party to bear all or any unequal portion of the
prevailing Party’s costs. The decision of the arbitrator shall be final and may be sued on or enforced by the Party in
whose favor it runs in any court of competent jurisdiction at the option of the successful Party. The arbitrators will be
instructed to prepare and deliver a written, reasoned opinion conferring their decision. The rights and obligations of the
Parties to arbitrate any dispute relating to the interpretation or performance of this Agreement or the grounds for the
termination thereof shall survive the expiration or termination of this Agreement for any reason.

 

    	- 14 -

    	 

    

 

13Addresses.

 

Notices provided for herein shall
effectively be given by mailing the same by certified or registered mail or by delivery by commercial courier, in each case properly
addressed with charges prepaid. For the purposes of making payments and giving notices, the addresses of the Parties hereto are
as follows:

 

Urigen Pharmaceuticals, Inc.

 

___________________________

 

___________________________

 

___________________________

 

Attn: Dan Vickery, Board Chair

 

 

PHARMACY

 

___________________________

 

___________________________

 

___________________________

 

Attn: 

 

 or to such subsequent addresses as either Party may furnish
the other by giving notice thereof as provided in this Section 13.

 

    	- 15 -

    	 

    

 

14Miscellaneous.

 

14.1 Assignment. This Agreement
shall be assignable by URIGEN only with the prior written consent of PHARMACY, which consent may be withheld at the sole
discretion of PHARMACY. This Agreement shall be assignable by PHARMACY to an Affiliate or non-Affiliated third party only with
the prior written consent of URIGEN, which consent may be withheld at the sole discretion of URIGEN. Any assignment (other than
to an Affiliate) without the prior written consent of URIGEN shall be void. This Agreement shall be binding upon and inure to
the benefit of URIGEN, PHARMACY and their respective permitted assigns and successors in interest.

 

14.2 Headings. The headings
used in this Agreement are for convenience of reference only and are not intended to be a part of or to affect the meaning
or interpretation of this Agreement.

 

14.3 Amendment. No amendment
or modification hereof shall be valid or binding upon the Parties unless made in writing and signed by both Parties.

 

14.4 Force Majeure. Any delays in performance
by any Party under this Agreement (other than the payment of monies due) shall not be considered a breach of this Agreement
if and to the extent caused by occurrences beyond the reasonable control of the Party affected, including but not limited to, acts
of God, embargoes, governmental restrictions, strikes or other concerted acts of workers, fire, flood, explosion, riots, wars,
civil disorder, rebellion or sabotage. The Party suffering such occurrence shall immediately notify the other Party and any time
for performance hereunder shall be extended by the actual time of delay caused by the occurrence.

 

    	- 16 -

    	 

    

 

14.5 Independent Contractors. In
making and performing this Agreement, URIGEN and PHARMACY act and shall act at all times as independent contractors and
nothing contained in this Agreement shall be construed or implied to create an agency, partnership or employer and employee relationship
between URIGEN and PHARMACY. At no time shall one party make commitments or incur any charges or expenses for or in the name of
the other Party except as specifically provided herein.

 

14.6 Severability.
If any term, condition or provision of this Agreement is held to be unenforceable for any reason, it shall, if possible,
be interpreted or revised rather than voided, in order to achieve the intent of the Parties to this Agreement to the extent possible.
In any event, all other terms, conditions and provisions of this Agreement shall be deemed valid and enforceable to the full extent.

  

14.7 Waiver. None of the terms,
covenants, and conditions of this Agreement can be waived except by the written consent of the Party waiving compliance.

 

14.8 Entire Agreement. This
Agreement contains the entire agreement and understanding between the Parties with respect to the subject matter hereof,
and merges all prior discussions, representations and negotiations with respect to the subject matter of this Agreement.

 

14.9 Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be an original but all of which taken
together shall constitute but one and the same instrument.

 

    	- 17 -

    	 

    

 

In Witness
Whereof, the parties hereto have executed this Agreement by their duly authorized officers or representatives.

  

	PHARMACY:	 	Urigen Pharmaceutical, Inc.
		 	(URIGEN)
	 	 	 	 	 
	 	 	 	 	 
	By:	 	 	By:	 
	Name: 	 	 	 	Dan Vickery
	Title:	 	 	Title:	 
	Date:	 	 	Date: 	 

  

    	- 18 -

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