Document:

Exhibit
10.26

 

ASSET PURCHASE
AGREEMENT

 

THIS ASSET PURCHASE AGREEMENT (this
“Agreement”) is entered into as of January 4, 2016, by and among (i) AmpliPhi Biosciences Corporation,
a Washington corporation (the “Purchaser”) and (ii) Novolytics Limited, a company organized under the laws
of England and Wales (the “Company”). The Purchaser and the Company may be referred to herein individually as
a “Party” and collectively as the “Parties.”

 

WHEREAS, the Company has been engaged
in the business of developing products that use or incorporate phages for human therapeutics use (the “Business”),
and now is proposed to be wound up (the “Wind Up”); and

 

WHEREAS, upon the terms and subject
to the conditions set forth herein, prior to the Wind Up, the Purchaser desires to purchase from the Company, and the Company desires
to sell to the Purchaser, certain assets of the Company in exchange for the consideration set forth herein (the “Asset
Purchase”).

 

NOW, THEREFORE, in consideration
of the premises and the mutual promises herein made, and in consideration of the representations, warranties, covenants and agreements
herein contained, the Parties agree as follows:

 

ARTICLE
I

PURCHASE AND SALE OF PURCHASED ASSETS

 

1.1           Purchased
Assets. On the terms and subject to the conditions of this Agreement, and on the basis of the representations, warranties,
covenants and agreements herein contained, the Company hereby agrees to sell, convey, assign, transfer and deliver to the Purchaser,
and the Purchaser hereby agrees to purchase, accept and take from the Company, all of the rights title and interest in and to the
following assets, properties, interests and other rights (collectively, the “Purchased Assets”):

 

(a)          all
of the Company’s S. aureus phage-related tangible and intangible assets as generally set forth on Schedule 1.1(a);
and

 

(b)          all
of the Intellectual Property Rights as generally set forth in Schedule 1.1(b).

 

1.2           Excluded
Assets. The Purchased Assets shall exclude any assets, properties, interests or other rights of the Company not set forth in
Section 1.1 (such excluded assets, the “Excluded Assets”).

 

1.3           No
Assumption of Liabilities. Notwithstanding any other provision of this Agreement, the Purchaser will not assume, whether as
a transferee or successor, by contract or otherwise, any liabilities or obligations of Seller of any kind, whether known or unknown,
contingent, matured or otherwise, whether currently existing or hereinafter created.

 

1.4           Asset
Transfer; Purchase Price. At the Closing, the Company shall transfer and convey to the Purchaser good and marketable title
to the Purchased Assets, free and clear of any Encumbrances. In consideration for the sale, conveyance, assignment, transfer and
delivery to the Purchaser of the Purchased Assets, and subject to all of the terms and conditions of this Agreement, the Purchaser
shall pay, for the benefit of the Company to its designees, a purchase consideration of up to ninety-six Thousand eight Hundred
Pounds Sterling (£96,800) in cash to cover actual expenses reasonably incurred by the Company in connection with the Wind
Up (the “Cash Consideration”), which such expenses as are set forth on the reasonably detailed statement of
affairs delineating how such funds will be used by the Company, attached hereto as Schedule 1.4 (the “Wind Up Statement”),
and provided that Company shall provide to Purchaser an accounting of such payments incurred in accordance with such Wind
Up Statement.

 

    	 	 	 

     

    

 

1.5           Issue
of Warrants. Within thirty (30) days after the date on which the Company appoints a liquidator and in consideration for the
Release, and Non-Solicitation Agreements, Purchaser shall issue to the Company shareholders (the “Shareholders”)
in proportion to their ownership, or according to another methodology approved by the Company’s shareholders or required
by applicable law, warrants (with half of such warrants to be exercisable on the date that is the earlier of (i) 30 days after
expiration of the Lock-Up Period (as defined in such warrant) or (ii) December 31, 2016, and the other half to be exercisable 60
days later), for an aggregate of 170,000 shares of Purchaser common stock. The warrants, in the form attached hereto as Exhibit
E, will become exercisable in accordance with this Section 1.5 and shall remain exercisable through the Expiration Date
(as defined in such warrant).

 

ARTICLE
II

CLOSING

 

2.1           Time
and Place of the Closing. The Closing shall take place at the offices of the Purchaser at 3579 Valley Centre Dr. Suite 100,
San Diego, California, United States or by electronic means, simultaneously with the execution of this Agreement or as soon as
the conditions to closing set forth herein have been satisfied or waived.

 

2.2           Closing
Deliveries. At the Closing, (i) the Company shall deliver to the Purchaser the various certificates, instruments and documents
referred to in Section 6.1, (ii) the Purchaser shall deliver to the Company the various certificates, instruments
and documents referred to in Section 6.2, and (iii) the Purchaser shall deliver the Cash Consideration to the Company.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

As a material inducement to the Purchaser
to enter into this Agreement and the other agreements contemplated hereby to which the Purchaser is a party and to consummate the
transactions contemplated hereby and thereby, the Company represents and warrants to the Purchaser, as of the date hereof, as follows:

 

3.1           Authority
for Agreement. The Company has full power, authority and legal right to enter into and perform its obligations under this Agreement
and the other agreements contemplated hereby to which it is a party and to consummate the transactions contemplated hereby and
thereby. The board of directors of the Company has unanimously approved, and the shareholders of the Company have approved to the
extent required by law, this Agreement and the other agreements contemplated hereby to which the Company is a party and the transactions
contemplated hereby and thereby, and have authorized the execution, delivery and performance of this Agreement and the other agreements
contemplated hereby to which the Company is a party and the consummation of the transactions contemplated hereby and thereby. No
other corporate proceedings on the part of the Company or its shareholders are necessary to approve and authorize the execution,
delivery and performance by the Company of this Agreement and the other agreements contemplated hereby to which the Company is
a party and the consummation by the Company of the transactions contemplated hereby and thereby. This Agreement and the other agreements
contemplated hereby to which the Company is a party have been duly executed and delivered by the Company and are legal, valid and
binding obligations of the Company, enforceable against the Company in accordance with their respective terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement
of creditors’ rights in general or by general principles of equity (whether considered in a proceeding in equity or at law).

 

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3.2           No
Violation to Result. The execution, delivery and performance by the Company of this Agreement and the other agreements contemplated
hereby to which the Company is a party, the consummation by the Company of the transactions contemplated hereby and thereby, and
the fulfillment by the Company of the terms hereof and thereof, do not and will not, directly or indirectly (with or without notice
or lapse of time or both): (i) violate, breach, conflict with, constitute a default under, or accelerate or permit the acceleration
of the performance required by (x) any note, debt instrument, security agreement, mortgage or any other Contract to which
the Company is a party or by which the Company or its assets or properties is bound, including any Purchased Contract, (y) any
law, judgment, decree, order, rule, regulation, permit, license or other legal requirement of any Government Authority applicable
to the Company, or (z) any of the terms of the organizational or constitutional documents of the Company (in each case, as
amended from time to time) or any resolution adopted by the board of directors or shareholders of the Company; (ii) give any
Person the right to exercise any remedy under any Contract or to cancel, terminate or modify any Contract; (iii) give any
Government Authority or other Person the right to challenge any of the transactions contemplated by this Agreement; (iv) give
any Government Authority the right to revoke, withdraw, suspend, cancel, terminate or modify any permit, franchise or license held
by the Company; or (v) result in the creation or imposition of any Encumbrance in favor of any Person upon any of the properties
or assets of the Company. No notice to, filing with or consent of any Person is necessary in connection with the execution, delivery
or performance by the Company of this Agreement and the other agreements contemplated hereby or the consummation by the Company
of the transactions contemplated hereby or thereby.

 

3.3           Organization
and Corporate Power.

 

(a)          The
Company is a corporation duly organized, validly existing and in good standing under the laws of England and Wales and is qualified
to do business and in good standing in each jurisdiction where the character or location of its assets or properties owned, leased
or operated by it, or the nature of its activities, makes such qualification necessary. The Company has full power and authority
and all material licenses, permits and authorizations necessary to own and operate its properties and to perform its obligations
under any Contracts to which it is a party. The copies of the organizational and constitutional documents (in each case, as amended
from time to time) of the Company that have been furnished to the Purchaser reflect all amendments made thereto and are true, correct
and complete. The copies of minute books containing the records of meetings of the shareholders and board of directors of the Company
and the record books of the Company that have been furnished to the Purchaser are true, correct and complete. There have been no
meetings or other proceedings or actions of the board of directors or shareholders of the Company that are not reflected in such
minute books. The Company is not in default under or in violation of any provision of its organizational or constitutional documents
(in each case, as amended from time to time) or any resolution adopted by the members or managers of the Company.

 

3.4           Taxes.
The Company has filed all Tax Returns that it is required to have filed. All such Tax Returns are true, correct and complete in
all respects. There are no Encumbrances on any of the Purchased Assets that arose in connection with any failure (or alleged failure)
to timely pay any Tax. No audit or other proceeding concerning any Tax Return or Tax Liability relating to the Company is currently
pending or threatened. There are no existing circumstances which reasonably may be expected to result in the assertion of any claim
for Taxes against the Company by any Government Authority with respect to any period for which Tax Returns are required to have
been filed or Tax is required to have been paid. No claim has ever been made by any Government Authority in a jurisdiction where
Company does not file Tax Returns that the Company is or may be subject to taxation (including obligations to withhold amounts
in respect of Tax) in a taxable year for which the Company did not file a Tax Return in that jurisdiction in connection with the
activities of the Company. The Company has not conducted activities in any jurisdiction that will require it to pay Taxes or file
Tax Returns in a jurisdiction of a type that it had not paid or filed in the most recently ended preceding taxable period for which
Tax or a Tax Return of such type would be due. No Tax withholding is required with respect to any of the payments required to be
made under this Agreement.

 

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3.5           Title
to Purchased Assets. The Company has, and will convey to the Purchaser, good and marketable title to the Purchased Assets,
free and clear of any and all Encumbrances and defects in title. There are no facts or conditions affecting the Purchased Assets
which could, individually or in the aggregate, interfere in any material respect with the use or operation of the Purchased Assets
as currently used, occupied or operated, or their adequacy for such use.

 

3.6           Litigation.
Except as set forth on Schedule 3.6, there is no litigation, suit, proceeding, action, claim, demand or investigation, at law or
in equity, pending or threatened against or affecting the Company before any court, agency, Government Authority or arbitration
tribunal, in each case related to the Purchased Assets or the Business. The Company has not received any opinion or legal advice
in writing to the effect that it is exposed from a legal standpoint to any Liability related to the Purchased Assets or the Business.
To the knowledge of the Company, there are no facts that would reasonably be expected to result in any such litigation, suit, proceeding,
action, claim or investigation. The Company is not subject to or in default with respect to any notice, order, writ, injunction
or decree of any court, agency, Government Authority or arbitration tribunal, in each case related to the Purchased Assets or the
Business.

 

3.7           Compliance
with Laws. The Company has complied and is currently in compliance in all material respects with all laws, regulations, rules,
orders, permits, judgments, decrees and other requirements and policies imposed by any Government Authority that are applicable
to the Company, the Purchased Assets or the Business.

 

3.8           Transfer
of Employment. The TUPE Regulations will not apply to either the execution of this Agreement or any transaction or arrangement
contemplated by it.

 

3.9           Intellectual
Property.

 

(a)          Schedule
3.9(a) lists all material items of Company Intellectual Property Rights. The Company has delivered to the Purchaser true, correct
and complete copies of all registrations and applications and all licenses, sublicenses and agreements related to the Company Intellectual
Property Rights, each as amended to date. The Company is not a party to any oral license, sublicense or other agreement which,
if reduced to written form, would be required to be listed in Schedule 3.9(a) under the terms of this Section 3.9(a).

 

(b)          Except
as set forth in Schedule 3.9(b), the Company holds all right, title and interest in and to, and is the exclusive owner
of, all Company Intellectual Property Rights, free and clear of any Encumbrances and any other rights or claims of any other Person,
and the Company has not misappropriated, is not in conflict with, and is not infringing upon, the Intellectual Property Rights
of any Person. To the knowledge of the Company, none of the Company Intellectual Property Rights is being infringed by activities,
products or services of, or is being misappropriated by, any Person.

 

(c)          Except
as set forth in Schedule 3.9(c), the Company is not obligated to make any royalty, commission or other executory payment
related to any Intellectual Property Rights of any Person.

 

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(d)          The
Company has used its best efforts to protect and enforce any trade secrets and otherwise to safeguard and maintain the secrecy
and confidentiality of all Company Intellectual Property Rights. All Employees and Contractors who have had access to trade secrets
or proprietary information of the Company or any customer of the Company have executed and delivered to the Company agreements
(copies of which have been delivered to the Purchaser) to maintain the confidentiality of such trade secrets and proprietary information
and to assign to the Company all Intellectual Property Rights arising from the services performed for the Company by such Employee
or Contractor. No current or prior Employees or Contractors have claimed any ownership interest in any Company Intellectual Property
Rights or any work product delivered to any customer of the Company as a result of having been involved in the development of such
property or work product while providing services to the Company or otherwise. To the knowledge of the Company, there has been
no violation of any confidentiality or nondisclosure agreement related to any such trade secrets or proprietary information or
to the Company Intellectual Property Rights. Except as set forth in Schedule 3.9(d), all Company Intellectual Property
Rights have been developed by the Company or its Employees.

 

(e)          No
funding from any Government Authority or university or college facilities were used in the authorship, creation or development
of any Company Intellectual Property Rights.

 

3.10         Solvency.
The Company is not entering into the Asset Purchase with the intent to hinder, delay or defraud any Person to which the Company
is, or may become, indebted. The Purchase Price is not less than the reasonably equivalent value of the Purchased Assets. The Company’s
assets, at a fair valuation, exceed the Company’s liabilities, and after the Closing and after giving effect to the Asset
Purchase and the other transactions contemplated hereby, the Company will not be insolvent (either because its financial condition
is such that the sum of its debts is greater than the fair value of its assets or because the present fair salable value of its
assets will be less than the amount required to pay its probable Liability on debts as they become absolute and matured).

 

3.11         Brokers.
No Person has or will have, as a result of the transactions contemplated by this Agreement, any right, interest or claim against
or upon the Purchaser or the Company for any commission, fee or other compensation payable as a finder or broker.

 

3.12         Disclosure.
To the knowledge of the Company, no representation or warranty by the Company contained in this Agreement, and no representation,
warranty or statement contained in any list, certificate, schedule or other instrument, document, agreement or writing furnished
or to be furnished to, or made with, the Purchaser by the Company pursuant to this Agreement or any other document contemplated
hereby, contains or will contain any untrue statement of a fact or omits or will omit to state any material fact necessary to make
any statement herein or therein not misleading.

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

As a material inducement to the Company
to enter into this Agreement and the other agreements contemplated hereby to which the Company is a party and to consummate the
transactions contemplated hereby and thereby, the Purchaser represents and warrants to the Company, as of the date hereof, as follows:

 

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4.1           Authority
for Agreement. The Purchaser has full power, authority and legal right to enter into and perform its obligations under this
Agreement and the other agreements contemplated hereby to which it is a party and to consummate the transactions contemplated hereby
and thereby. The board of directors of the Purchaser has duly approved this Agreement and the other agreements contemplated hereby
and the transactions contemplated hereby and thereby, and have authorized the execution, delivery and performance of this Agreement
and the other agreements contemplated hereby to which the Purchaser is a party and the consummation of the transactions contemplated
hereby and thereby. No other corporate proceedings on the part of the Purchaser are necessary to approve and authorize the execution,
delivery and performance by the Purchaser of this Agreement and the other agreements contemplated hereby to which the Purchaser
is a party and the consummation by the Purchaser of the transactions contemplated hereby and thereby. This Agreement and the other
agreements contemplated hereby to which the Purchaser is a party have been duly executed and delivered by the Purchaser and are
legal, valid and binding obligations of the Purchaser, enforceable against the Purchaser in accordance with their respective terms,
except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights in general or by general principles of equity (whether considered in a proceeding
in equity or at law).

 

4.2           No
Violation to Result. The execution, delivery and performance by the Purchaser of this Agreement and the other agreements contemplated
hereby to which the Purchaser is a party, the consummation by the Purchaser of the transactions contemplated hereby and thereby,
and the fulfillment by the Purchaser of the terms hereof and thereof, do not and will not, directly or indirectly (with or without
notice or lapse of time or both): (i) violate, breach, conflict with, constitute a default under, or accelerate or permit
the acceleration of the performance required by (x) any note, debt instrument, security agreement, mortgage or any other contract
to which the Purchaser is a party or by which the Purchaser or its assets or properties is bound, (y) any law, judgment, decree,
order, rule, regulation, permit, license or other legal requirement of any Government Authority applicable to the Purchaser, or
(z) any of the terms of the certificate of incorporation, bylaws or other governing documents of the Purchaser (in each case,
as amended from time to time) or any resolution adopted by the shareholders or directors of the Purchaser; or (ii) give any
Government Authority or other Person the right to challenge any of the transactions contemplated by this Agreement. No notice to,
filing with or consent of any Person is necessary in connection with the execution, delivery or performance by the Purchaser of
this Agreement and the other agreements contemplated hereby or the consummation by the Purchaser of the transactions contemplated
hereby or thereby.

 

ARTICLE
V

ADDITIONAL AGREEMENTS

 

5.1           Access
to Properties and Records. After the date hereof, the Company shall provide the Purchaser and its Representatives with access,
at reasonable times, on reasonable notice and during ordinary business hours, to such information related to the Purchased Assets
in the Company’s possession as is reasonably necessary for financial reporting and accounting matters, the preparation and
filing of any Tax Returns, reports or forms, or the defense of any Tax claim or assessment, and the Purchaser and its Representatives
shall be permitted to make extracts from, or take copies of, any books, records or other documentation related to the Purchased
Assets as may be reasonably necessary for such purposes.

 

5.2           Publicity
and Disclosure. The Company shall not make any disclosure of this Agreement or the existence, terms and conditions hereof (whether
or not in response to an inquiry related to the existence or subject matter of this Agreement) unless such disclosure has been
approved by the Purchaser, except to the extent required by or advisable under applicable law, regulation or court order and except
to its attorneys, accountants and other financial advisors.

 

5.3           Intentionally
omitted.

 

5.4           Solvent
Liquidation. As soon as practicable after the Closing, and in any event no later than seven business days of the Closing, the
Company shall enter into, and thereafter pursue diligently, a solvent liquidation process to effect and complete the Wind Up.

 

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5.5           Further
Assurances. The Company shall execute such further documents, deeds, bills of sale, assignments and assurances and take such
further actions as may reasonably be required by the Purchaser to consummate the transactions contemplated by this Agreement and
the other agreements contemplated hereby, to vest the Purchaser with full title to all of the Purchased Assets, free and clear
of all Encumbrances, or to effect any of the other purposes of this Agreement or the other agreements contemplated hereby. The
Company shall notify Purchaser immediately of any claims made against the Company in the liquidation process.

 

5.6           Transfer
of Records. Within ninety (90) days of the execution of this Agreement, the Company shall deliver to Purchaser, at Purchaser’s
expense, all documents and records related to the Purchased Assets, including without limitation all documents and records related
to the ownership, creation or development of the Company Intellectual Property.

 

5.7           Bulk
Transfer Provisions. The Company and the Purchaser hereby waive compliance with the provisions of any applicable bulk transfer
law, if any.

 

5.8           TUPE
Releases. The Company shall enter into release agreements with each of its employees, which agreements shall be signed by the
legal advisors of such employees, releasing the Company from all claims and obligations under TUPE Regulations, in form reasonably
acceptable to Purchaser. If requested by Purchaser, Purchaser shall be a party to such releases.

 

5.9           Registration
Rights. If, at any time after the earlier of (i) the consummation of the Purchaser’s first underwritten public offering,
or (ii) December 31, 2016, if a registration statement covering the resale of all shares underlying the warrants contemplated in
Section 1.5 hereof has not been filed as of such date, the Purchaser proposes and initiates formal actions to prepare and
file a registration statement under the Securities Act or any other rule or regulation applying to the registration of the Purchaser’s
securities for its own account or the account of a security holder or holders, other than a registration relating solely to employee
benefit plans or Rule 145 transactions or a registration statement that does not permit secondary sales (a “Registration
Statement”), then each such time, the Purchaser shall give written notice of such intention to file a Registration Statement
(a “Piggyback Notice”) to each holder of Warrants hereunder (each, a “Shareholder”) at least
five (5) days before the anticipated filing date. The Piggyback Notice shall describe the number of shares to be registered and
the intended method of distribution and offer each Shareholder the opportunity to register pursuant to such Registration Statement
such shares of Common Stock issued upon exercise of the Warrant held by such Shareholder (the “Registrable Shares”)
as such Shareholder may request in writing to the Purchaser within five (5) days after the date such Shareholder first received
the Piggyback Notice (a “Piggyback Registration”). The foregoing Piggyback Registration rights shall be subject
ratably (amongst the Shareholders) to potential underwriter’s limitations or cutbacks set forth herein. The Purchaser shall
take reasonable steps to include in the Registration Statement the Registrable Shares which the Purchaser has been so requested
to register by the Shareholders. The Purchaser shall be entitled to suspend or withdraw a Registration Statement prior to its becoming
effective, whether or not any Shareholders have elected to include Registrable Shares in such Registration Statement. If the Registration
Statement is being filed in connection with an underwritten offering and the managing underwriter with respect to such an offering
advises the Purchaser in writing that the inclusion of all or any portion of the Registrable Shares which the Shareholders have
requested to be included in the Registration Statement would materially jeopardize the success of the offering, then the Purchaser
shall be required to include in the underwriting only that number of Registrable Shares which the underwriter advises the Purchaser
in writing may be sold without materially jeopardizing the offering. Any cut back of shares included in the Registration Statement
will apply, first, to the Shareholders and will be pro rata among Shareholders who have elected to have shares included in the
Registration Statement according to the number of Registrable Shares held by each; second, to the shareholders of the Purchaser
entitled to registration rights prior to the date hereof and who have elected to have shares included in the Registration Statement;
and third, to any shares to be offered by the Purchaser therein. Any shares so excluded or withdrawn from such underwriting shall
be excluded and withdrawn from the registration. In any underwritten offering, each Shareholder participating in such offering
shall, as a condition to the inclusion of such Shareholder’s Registrable Shares in the offering, enter into an underwriting
agreement in customary form with the representative of the underwriter or underwriters selected by the Purchaser. If the any Shareholder
disapproves of the terms of any such underwriting, it may elect to withdraw its Registrable Shares from such offering by written
notice to the Purchaser and the underwriter, delivered at least five (5) days prior to the effective date of the Registration Statement.
Each Shareholder also agrees to be subject to any lock-up agreements reasonably requested by a managing underwriter and to any
other limitations on the resale of securities or use of the Registration Statement agreed by the participants in the offering who
are not Shareholders. All costs of Purchaser of the registrations referenced herein shall be at the Purchaser’s sole expense
(the holders of Warrants, or Common Stock issued upon exercise thereof, shall be responsible for any costs and expenses they may
incur in participating in any such registration).

 

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ARTICLE
VI

CLOSING DELIVERIES

 

6.1           Closing
Deliveries of the Company. At the Closing, the Company shall deliver the following documents to the Purchaser, subject to waiver,
in part or in full, by the Purchaser:

 

(a)          the
Company shall execute and deliver a Bill of Sale in the form attached hereto as Exhibit A;

 

(b)          the
Company shall execute and deliver a Patent Assignment in the form attached hereto as Exhibit B;

 

(c)          the
Company shall deliver the Wind Up Statement in a form reasonably acceptable to Purchaser, attached hereto as Schedule 1.4;

 

(d)          the
Company shall deliver a certificate of its secretary setting forth the resolutions of its board of directors and shareholders (or
other evidence reasonably satisfactory to the Purchaser) authorizing the execution, delivery and performance of this Agreement
and the other agreements contemplated hereby to which the Company is a party and the consummation of the transactions contemplated
hereby and thereby, and certifying that such resolutions have not been amended or rescinded and are in full force and effect; and

 

(e)          the
Company, each employee and Purchaser, if applicable, shall have executed and delivered the TUPE Releases described in Section
5.8.

 

(f)          each
Company shareholder shall execute and deliver an agreement (i) releasing of all claims for the benefit of the Company, the Purchaser
and their Affiliates and (ii) containing non-solicitation and non-competition covenants in form attached as Exhibit D (collectively,
the “Release and Non-Solicitation Agreements”).

 

6.2           Closing
Deliveries of the Purchaser. At the Closing, the Purchaser shall execute and deliver the following documents to the Company,
subject to waiver, in part or in full, by the applicable Company:

 

(a)          the
Purchaser will deliver the Cash Consideration.

 

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ARTICLE
VII

INDEMNITY

 

7.1           General
Indemnification. The Company covenants and agrees to indemnify, defend, protect and hold harmless the Indemnified Parties from,
against and in respect of all Losses that may be suffered, sustained, incurred or paid by any Indemnified Party, whether or not
involving a third party claim, in each case in connection with, resulting from or arising out of, directly or indirectly: (i) the
inaccuracy or breach of any representation or warranty made by the Company in this Agreement or in any other agreement or other
document delivered in connection with this Agreement or the consummation of the transactions contemplated hereby; (ii) the non-fulfillment
or breach of any covenant or agreement on the part of the Company in this Agreement or in any other agreement or other document
delivered in connection with this Agreement or the consummation of the transactions contemplated hereby; (iii) the existence of,
or the failure of the Company to pay, perform or discharge when due, any Liability; (iv) any Excluded Asset; (v) any act or omission
of the Company or any Representative of the Company on or prior to the Closing Date; (vi) any and all Liabilities resulting from
any litigation, suit, proceeding, action, claim, demand or investigation pending or threatened related to the ownership or use
of the Purchased Assets by the Company or the conduct of the Business by the Company; (vii) the bulk transfer or bulk sales provisions
of any applicable law; (viii) any and all Liabilities for Taxes in connection with or arising out of the ownership of the Purchased
Assets on or prior to the Closing Date or the operation of the Business on or prior to the Closing Date; (ix) any and all Liabilities
in connection with or arising out of the employment or engagement, or termination of employment or engagement, of any person employed
or engaged by the Company at any time, any act or omission of the Company prior to the Closing Date which by virtue of the TUPE
Regulations is deemed to be an act or omission of the Purchaser or in relation to which liability transfers to the Purchaser, and
any claim relating to either Party’s failure to comply with its obligations to inform and/or consult under the TUPE Regulations;
and (x) enforcing the Indemnified Party’s rights hereunder. The indemnification provided hereunder will terminate twenty
one (21) days after publication of the liquidator’s notice to creditors published in the London Gazette so long as the Company
has complied with Section 5.4, provided that indemnification shall survive with respect to any claims arising prior to such
date to the extent such claim is made on or before such date.

 

7.2           Indemnification
Procedures. In the event of the assertion or commencement by any Person of any claim or legal proceeding (whether against the
Purchaser or against any other Person) with respect to which any Indemnified Party may be entitled to indemnification pursuant
to this ARTICLE VII, the Purchaser shall have the right, at its election, to proceed with the defense (including settlement
or compromise) of such claim or legal proceeding on its own; provided, however, that if the Purchaser settles or compromises any
such claim or legal proceeding without the consent of the Company, such settlement or compromise shall not be conclusive evidence
of the amount of Losses incurred by the Indemnified Party in connection with such claim or legal proceeding (it being understood
that if the Purchaser requests that the Company consent to a settlement or compromise, the Company shall act reasonably in determining
whether to provide such consent). The Purchaser shall give the Company prompt notice after it becomes aware of the commencement
of any such claim or legal proceeding; provided, however, that any failure on the part of the Purchaser to so notify the Company
shall not limit any of the obligations of the Company, or any of the rights of any Indemnified Party, under this ARTICLE VII
(except to the extent that such failure materially adversely prejudices the defense of such claim or legal proceeding). If the
Purchaser does not elect to proceed with the defense of any such claim or legal proceeding, the Company may proceed with the defense
of such claim or legal proceeding with counsel reasonably satisfactory to the Purchaser; provided, however, that the Company may
not settle or compromise any such claim or legal proceeding without the prior written consent of the Purchaser (which consent may
not be unreasonably withheld). No Indemnified Party (other than the Purchaser or any successor thereto or assign thereof) shall
be permitted to assert any indemnification claim or exercise any other remedy under this Agreement unless the Purchaser (or any
successor thereto or assign thereof) shall have consented to the assertion of such indemnification claim or the exercise of such
other remedy. Nothing herein shall be deemed to prevent an Indemnified Party from making a claim hereunder, and an Indemnified
Party may make a claim hereunder, for potential or contingent claims or demands, provided, however, that the notice of such claim
shall set forth the basis for any such potential or contingent claim or demand to the extent then reasonably feasible.

 

     -9-

     

    

 

7.3           Survival
of Representations, Warranties and Covenants. Each representation, warranty, covenant and agreement contained in this Agreement
or in any other agreement or document delivered in connection with this Agreement shall survive the Closing and be enforceable
until such covenant or agreement has been fully performed. All representations and warranties contained in this Agreement or in
any other agreement or document delivered in connection with this Agreement shall survive the Closing until the fifth anniversary
of the Closing Date and shall thereafter expire, except that any representation or warranty with respect to which a claim has been
made for a breach thereof prior to such date shall survive until such claim is resolved.

 

7.4           Limitations
on Indemnification. The indemnification obligations of the Company for breaches of representations and warranties set forth
in ARTICLE III and ARTICLE IV of this Agreement shall be limited to an amount equal to the Purchase Price and the
value of the Warrants (or the Common Stock issued upon exercise of the Warrants); provided that the foregoing limitation shall
not apply to any claim based on fraud, intentional misrepresentation or willful misconduct, which claims shall not be limited in
amount and with respect to which no Losses shall count in determining whether the foregoing limitation has been met or exceeded.

 

ARTICLE
VIII

DEFINED
TERMS

 

(1)         “Affiliate”
means (i) as to any Party that is an entity, any Person which, directly or indirectly, is in control of, is controlled by,
or is under common control with, such Party, and (ii) as to any Party who is a natural person, the spouse, parents, siblings
and lineal descendants of such Party. For purposes of this definition, an entity will be deemed to be “controlled by”
a Person if the Person possesses, directly or indirectly, power either to (A) vote twenty percent (20%) or more of the securities
(including convertible securities) having ordinary voting power or (B) direct or cause the direction of the management or
policies of such entity, whether by contract or otherwise.

 

(2)         “Closing
Date” means the date on which the Closing occurs.

 

(3)         “Code”
shall mean the Internal Revenue Code of 1986, as amended.

 

(4)         “Company”
has the meaning given to such term in the preamble to the Agreement.

 

(5)         “Company
Intellectual Property Rights” means the Intellectual Property Rights used in the conduct of the Business, including Intellectual
Property Rights owned by, and licensed from third parties by, the Company.

 

(6)         “Encumbrance”
means any claim, lien, pledge, assignment, option, charge, easement, security interest, right-of-way, encumbrance, mortgage or
other right (including any right of first refusal, put, call or other restriction on transfer).

 

(7)         “Government
Authority” means any nation or government, any state or other instrumentality or political subdivision thereof (including
any county or city), and any entity exercising executive, legislative, judicial, military, regulatory or administrative functions
of or pertaining to government.

 

     -10-

     

    

 

(8)         
“Indemnified Parties” means the Purchaser and its officers, directors, employees, shareholders, assigns, successors
and Affiliates, and “Indemnified Party” means any of the foregoing Persons.

 

(9)         “Intellectual
Property Rights” means all (i) patents, patent applications and patent disclosures, (ii) trademarks, service
marks, trade dress, trade names, logos and corporate names and registrations and applications for registration thereof, together
with all of the goodwill associated therewith, (iii) copyrights (registered or unregistered) and copyrightable works and registrations
and applications for registration thereof, together with all authors’ and moral rights, (iv) mask works and registrations
and applications for registration thereof, (v) computer software (including source code, object code, macros, scripts, objects,
routines, modules and other components), data, databases and documentation thereof, (vi) the Confidential Information and
other trade secrets and confidential or proprietary information (including ideas, formulas, compositions, inventions (whether patentable
or unpatentable and whether or not reduced to practice), know-how, formulations, products, processes, techniques, methods, research
and development information and results, drawings, specifications, designs, plans, proposals, technical data, marketing plans and
customer, prospect and supplier lists and information), (vii) any other intellectual property rights, and (viii) copies
and tangible embodiments of any of the foregoing set forth in clauses (i) to (vii) (in whatever form or medium).

 

(10)        “Liability”
means any direct or indirect liability, indebtedness, guaranty, endorsement, claim, loss, damage, deficiency, cost, expense, obligation
or responsibility, either accrued, absolute, contingent or otherwise and whether known or unknown, fixed or unfixed, choate or
inchoate, liquidated or unliquidated, mature or unmature, secured or unsecured.

 

(11)        “Losses”
means all Liabilities, losses, claims, damages, punitive damages, causes of action, lawsuits, administrative proceedings (including
informal proceedings), investigations, audits, demands, assessments, adjustments, judgments, settlement payments, deficiencies,
penalties, fines, Taxes, interest (including interest from the date of such damages) and costs and expenses (including reasonable
attorneys’ fees and disbursements of every kind, nature and description).

 

(12)        “Person”
means any natural person, limited liability company, corporation, partnership, trust, unincorporated organization, association,
joint stock company, business, group, Government Authority or other entity.

 

(13)        “Representatives”
means, with respect to a Party, the officers, directors, employees, consultants, advisors, accountants, agents, attorneys and other
authorized representatives of such Party.

 

(14)        “Tax”
means any federal, state, local or foreign tax, duty or similar governmental fee, levy, assessment or charge of any kind whatsoever,
including all income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits,
environmental, capital gains, ad valorem, value added, inventory, franchise, profits, withholding, social security (or similar),
unemployment, disability, real property, personal property, unclaimed property, escheat, sales, use, transfer, registration, alternative
or add-on minimum or estimated taxes and customs duties, and including any interest, penalty or additional amounts arising with
respect to the foregoing or the obligation to file Tax Returns, whether disputed or not.

 

     -11-

     

    

 

(15)        “Tax
Return” means any report, return, statement, claim for refund, election, declaration or other information with respect
to any Tax required to be filed, or actually filed, with a taxing authority, including any schedule or attachment thereto, and
including any amendment thereof.

 

(16)        “TUPE
Regulations” means the United Kingdom Transfer of Undertakings (Protection of Employment) Regulations 2006, as amended,
or any other national law which implements the Acquired Rights Directive 2001/23/EC.

 

ARTICLE
IX

MISCELLANEOUS

 

9.1           Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and
assigns.

 

9.2           Governing
Law. This Agreement shall in all respects be interpreted, construed and governed by and in accordance with the laws of the
State of California, without regard to its conflicts of laws principles. Any legal suit, action or proceeding arising out of or
based upon this Agreement or the transactions contemplated hereby may be instituted in the federal courts of the United States
of America or the courts of the State of California in each case located in the City of San Diego, and each party irrevocably submits
to the exclusive jurisdiction of such courts in any such suit, action or proceeding. Each party acknowledges and agrees that any
controversy which may arise under this Agreement is likely to involve complicated and difficult issues and, therefore, each such
party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any legal action arising out
of or relating to this Agreement or the transactions contemplated hereby.

 

9.3           Specific
Performance; Remedies Not Exclusive. Each Party acknowledges that the other Parties shall be irreparably harmed and that there
shall be no adequate remedy at law for any violation by any of them of any of the covenants or agreements contained in this Agreement.
It is accordingly agreed that, in addition to, but not in lieu of, any other remedies which may be available upon the breach or
threatened breach of any such covenant or agreement, each Party shall have the right to obtain injunctive relief to restrain a
breach or threatened breach of, or otherwise to obtain specific performance of, such covenant or agreement. All rights and remedies
of the Parties under this Agreement shall be cumulative, and the exercise of one or more rights or remedies shall not preclude
the exercise of any other right or remedy available under this Agreement or applicable law.

 

9.4           Severability.
Each article, section, subsection, paragraph or clause of this Agreement constitutes a separate and distinct undertaking, covenant
or provision hereof. If any provision of this Agreement shall finally be determined to be unlawful, such provision shall be deemed
severed from this Agreement, but every other provision of this Agreement shall remain in full force and effect.

 

9.5           Amendment.
This Agreement may be amended, supplemented or modified only by execution of an instrument in writing signed by all of the Parties.

 

9.6           Waiver.
Any Party may, to the extent permitted by applicable law, (i) extend the time for the performance of any of the obligations
or other acts of any other Party, (ii) waive any inaccuracies in the representations and warranties of any other Party contained
in this Agreement or any other document contemplated hereby, or (iii) waive compliance with any of the agreements of any other
Party contained in this Agreement or any other document contemplated hereby. No such extension or waiver shall be effective unless
set forth in a written instrument duly executed by or on behalf of the Party extending the time of performance or waiving any such
inaccuracy or non-compliance. No waiver by any Party of any provision of this Agreement, in any one or more instances, shall be
deemed to be or construed as a waiver of the same or any other provision of this Agreement on any future occasion.

 

     -12-

     

    

 

9.7           Notices.
All notices, requests, consents, waivers and other communications required or permitted to be given hereunder shall be in writing
and shall be deemed to have been duly given (i) if personally delivered, upon delivery or refusal of delivery, (ii) if
mailed by registered or certified United States mail, return receipt requested, postage prepaid, upon delivery or refusal of delivery,
(iii) if sent by facsimile with proof of successful transmission, on receipt by the recipient, or (iv) if sent by a nationally
recognized overnight delivery service, upon delivery or refusal of delivery. All notices, requests, consents, waivers and other
communications required or permitted to be given hereunder shall be addressed as follows:

 

	
        

        If to the Purchaser:

         

        AmpliPhi Biosciences Corporation

        3579 Valley Centre Drive, Suite 100

        San Diego, California 92130

        Attention: Michael Scott Salka

        Facsimile: (858) 800-4869
	
        If to the Company:

         

        Novolytics Limited

        c/o RSM, Bluebell House

        Brian Johnson Way, Preston

        PR2 5PE, United Kingdom

        Facsimile: +44 (0) 1772-216001

	 	 
	
        with a copy, which shall not constitute notice,
        to:

         

        Cooley LLP

        4401 Eastgate Mall,

        San Diego, CA 92121

        Attention: Tom Coll

        Facsimile: (858) 550-6420
	 

 

or at such other address or addresses or facsimile
number or numbers as the Party addressed may from time to time designate in writing pursuant to notice given in accordance with
this Section 9.7.

 

9.8           Expenses.
Except as otherwise provided in Schedule 1.4, all costs and expenses incurred by the Company (including, without limitation,
financial advisory fees, legal fees and expenses, broker and finder fees, and fees and expenses of accountants) in connection with
the transactions contemplated hereby shall be borne by the Company, and all costs and expenses incurred by the Purchaser (including,
without limitation, financial advisory fees, legal fees and expenses, broker and finder fees, and fees and expenses of accountants)
in connection with the transactions contemplated hereby shall be borne by the Purchaser.

 

9.9           Consent
to Jurisdiction. Each of the Parties hereby irrevocably and unconditionally submits to the jurisdiction of any state court
of the State of California and any federal court sitting in the State of California and irrevocably agrees that all actions, suits
or other proceedings arising out of or related to this Agreement or the other documents contemplated hereby, the transactions contemplated
hereby and thereby, or the enforcement of any provision hereof or thereof, shall be litigated exclusively in such courts. Each
of the Parties agrees not to commence any such actions, suits or other proceedings except in such courts. Each of the Parties irrevocably
waives any objection which such Party may now or hereafter have to the laying of the venue of any such action, suit or proceeding
in any such court and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court
that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. Notwithstanding anything
to the contrary set forth herein, it is expressly understood that this Section 9.9 may not be construed as a consent to
the matters contained herein with respect to any shareholder, officer, director or employee of the Company.

 

     -13-

     

    

 

9.10         Attorneys’
Fees. If any action, suit or other proceeding related to this Agreement or the other documents contemplated hereby, the transactions
contemplated hereby and thereby, or the enforcement of any provision hereof or thereof, is brought by any Party against any other
Party, the Indemnified Party or the non-breaching Party in such action, suit or other proceeding shall be entitled to recover its
reasonable attorneys’ fees, costs and disbursements incurred in the course of such proceeding from the Indemnifying Party
or the breaching Party, in addition to any other relief to which the Indemnified Party or the non-breaching Party may be entitled.
Notwithstanding anything to the contrary set forth in this Agreement, it is expressly understood that this Section 9.10
may not be construed as to hold any shareholders, directors, officers or employees of the Company liable for any attorneys’
fees hereunder.

 

9.11         Complete
Agreement. This Agreement, those documents expressly referred to herein, including all exhibits and schedules hereto, and the
other documents contemplated by this Agreement embody the complete agreement and understanding among the Parties with respect to
the subject matter hereof and thereof, and supersede and preempt any prior understandings, agreements or representations by or
among the Parties, written or oral, which may have related to the subject matter hereof and thereof.

 

9.12         Absence
of Third Party Beneficiary Rights. No provision of this Agreement is intended, nor shall any such provision be interpreted,
to provide or create any third party beneficiary rights or any other rights of any kind in any creditor, client, customer, Affiliate,
stockholder, member, manager or employee of any Party hereto or any other Person other than (i) the successors and assigns
of a Party, and (ii) the Indemnified Parties.

 

9.13         Mutual
Drafting. This Agreement and the other documents contemplated hereby are the mutual product of the Parties, and each provision
hereof and thereof has been subject to the mutual consultation, negotiation and agreement of each of the Parties, and shall not
be construed for or against any Party by virtue of the authorship of this Agreement or such other documents.

 

9.14         Further
Representations. Each Party acknowledges and represents that it has been represented by its own legal counsel in connection
with the transactions contemplated by this Agreement, with the opportunity to seek advice as to his or its legal rights from such
counsel. Each Party further represents that he or it is being independently advised as to the Tax consequences of the transactions
contemplated by this Agreement and is not relying on any representations or statements made by any other Party as to such Tax consequences.

 

9.15         Interpretation.
Unless the context clearly indicates otherwise, (i) where appropriate the singular shall include the plural and the masculine
shall include the feminine or neuter, and vice versa, to the extent necessary to give the terms defined herein or the terms otherwise
used in this Agreement the proper meanings, and (ii) occurrences of the words “include,” “includes”
and “including” shall be deemed to be followed by the words “without limitation.” The Company shall be
deemed to have knowledge of any action, omission, fact, condition, occurrence or event if any director or officer of the Company
has knowledge of such action, omission, fact, condition, occurrence or event.

 

9.16         Headings.
The headings in this Agreement are intended solely for convenience of reference and shall be given no effect in the construction
or interpretation of this Agreement.

 

9.17         Counterparts.
This Agreement may be executed in two or more counterparts, each of which when executed and delivered shall be deemed an original,
and all of which, taken together, shall constitute the same agreement. This Agreement and any document, exhibit or schedule contemplated
hereby may be executed by facsimile signature, which shall be considered legally binding for all purposes.

 

     -14-

     

    

 

IN WITNESS WHEREOF, the Parties have
executed this Asset Purchase Agreement as of the day and year first above written.

 

	 	PURCHASER:
	 	 
	 	AMPLIPHI BIOSCIENCES CORPORATION,
	 	a Washington corporation
	 	 
	 	By:	/s/ M. Scott Salka
	 	 	 
	 	Name:	M. Scott Salka
	 	 	 
	 	Title:	Chief Executive Officer
	 	 
	 	COMPANY:
	 	 
	 	NOVOLYTICS LIMITED,
	 	a company organized under the laws of England and Wales
	 	 
	 	By:	/s/ Geoffrey M. Orme
	 	 	 
	 	Name:	Geoffrey M. Orme
	 	 	 
	 	Title:	Director

 

    	 	 	 

     

    

 

EXHIBIT INDEX

 

	Exhibit A	Bill of Sale
	 	 
	Exhibit B	Patent Assignment
	 	 
	Exhibit C	[Reserved]
	 	 
	Exhibit D	Release, Confidentiality and Non-Solicitation Agreement
	 	 
	Exhibit E	Warrantex33.htm

 

Exhibit 10.7

 

 

 

 

Manufacturing and Distribution Rights Agreement

 

This Agreement (“Agreement”) is made as of January 07, 2016, by and between Advice Electronics Ltd., an Israeli company (“Advice”), and Digital Power Corporation, a California corporation (“DPC”). For purposes of this Agreement, the “Parties” or “Party” shall mean Advice, on the one hand, and DPC, on the other hand. 

 

WHEREAS, DPC has signed a contract with an Israeli company Telkoor Telecom Ltd. ("Telkoor") granting DPC the right to directly order and purchase certain products of Telkoor from a manufacturer in China: SHENZHEN WATT ELECTRONICS CO. Ltd. ("Watt") and the right to market, sell and distribute such products in agreed upon markets and territories, subject to the payment by DPC of royalties to Telkoor; and 

 

WHEREAS, on January 07, 2016 Advice has or intend to purchase the commercial civil operation and all rights, including, but not only, Intellectual Property and copyright rights, Production files and Know How regarding to products of Telkoor, and including all the rights with regards to DPC with additional warranty given by Telkoor that DPC will sign this agreement with Advice; and

 

WHEREAS, Telkoor has given its full irrevocable consent to this agreement; and 

 

WHEREAS, in connection therewith the Parties wish to establish the commercial relationship between them hereby enter into this Agreement pursuant to the terms and conditions hereunder. 

 

NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS: 

 

	
1.
	
Subject to the terms and conditions of this Agreement, Advice hereby grants DPC the non-exclusive right to directly place purchase orders for the purchase of the products listed on Schedule A attached hereto, as may be amended from time to time by mutual consent of the Parties (the “Products”) with the manufacturer Watt (the “Manufacturer”), for the sole purpose of distributing the Products in all territories except: in Israel, except: to Advice's clients and customers all over the world and except: to the company "Harmonics" and affiliate companies under it all over the world (the “Manufacturing Rights”). It is emphasized that every right attributed to the Products is the property solely of Advice.

	
2.
	
The Manufacturing Rights are granted to DPC until 31 August 2017. It is agreed that from 1 September 2017 DPC will have no rights to place orders directly to Watt under this agreement, and all manufacturing orders and procedure as to the Products will be via Advice. As to distribution of the Products after 31 August 2017, DPC will be allowed to distribute the Products under DPC branding until 31 December 2020, subject to Advice's consent. DPC will issue manufacturing order to Advice for any Products listed in Schedule A after 31 August 2017, and subject of issuing purchase orders only via Advice and payment of royalties as specified in Schedule A.

	
3.
	
In consideration of the grant of the Manufacturing Rights and distributing the Products, DPC shall pay Advice royalties in the amounts listed in Schedule A of the price paid by DPC to Watt for each Product purchased from Watt (the “Royalties”). DPC shall pay the Royalties to Advice within thirty (30) days of receipt of invoice by Advice following Watt acknowledgement of products shipped to DPC. DPC will notify Advice of each order within 3 days of placing every purchase order of the Products with Watt.

	
4.
	
DPC shall pay for all costs and expenses associated with obtaining the necessary regulatory certifications and approvals required for DPC to sell the Products in all territories. At Advice's request, DPC shall provide services to facilitate the receipt by Advice of the regulatory certifications and approvals required for Advice to sell the Products at a reasonable price to Advice.

	
5.
	
In addition, DPC grants Advice the right to distribute the products of DPC specified in Schedule B for the duration of this Agreement. In case DPC wishes to distribute other products of Advice, subject to Advice's consent and approval the parties will negotiate another distribution Agreement between them. In case Advice wishes to distribute other products of DPC, subject to DPC's consent and approval, the parties will negotiate another distribution Agreement between them.

	
6.
	
For a period of this agreement, DPC shall not, directly or indirectly, participate or engage, or assist any other person in engaging or preparing to engage the customers of Advice and their affiliates worldwide in connection with the sale or distribution of any of the Products. Similarly, DPC is hereby committed and obliged not to sell the Products in Israel and/or to any Israeli company or its affiliates worldwide, and additionally not to sell the Products to the company "Harmonics" and its affiliates worldwide, without Advice's prior written approval. For a period of this agreement, Advice shall not, directly or indirectly, participate or engage, or assist any other person in engaging or preparing to engage the customers of DPC, in connection with the sale or distribution of any of the Products.

	
7.
	
This Agreement shall commence on the date hereof and shall remain in full force and effect until 31 August 2017 (the “Term”). Notwithstanding the aforesaid or any applicable law, either Party may terminate this Agreement with a prior notice of 30 days ahead, with no cause required. If such termination occurs DPC will immediately refrain from placing Purchase orders to Watt of the Products, and refrain from distributing it anywhere.

	
8.
	
DPC shall provide Advice or its legal successor with (i) any purchase order submitted by DPC to Watt (“Purchase Orders”), within 3 days after such Purchase Order has been submitted by DPC, and (ii) accurate monthly reports, detailing the actual number of Products which were purchased during each calendar month, the price paid for such Products and any other material information, terms and conditions with respect thereto (each, a “Usage Report”). Usage Reports must be delivered to Advice or its legal successor no later than thirty (30) days after the last day of each calendar quarter. Within thirty (30) business days of a written request from Advice or its legal successor, but no more than once every calendar year, Advice or its legal successor shall have the right to audit or have audited said Usage Reports, and DPC shall have the obligation to make available any requested Usage Reports and relevant books and records, during normal business hours and at the principal offices of it, to confirm the undertakings under this Agreement. The quantities in each Usage Report are binding upon DPC, and if required by Advice will be authenticated by the accountant of DPC.

	
9.
	
In no event shall Advice be liable for any liabilities, losses, claims, demands, obligations, judgments, causes of action, assessments, fines, damages, costs and expenses of DPC of any kind or nature that arise out of or in connection with this Agreement. Notwithstanding the aforesaid, during the Term, Advice shall be responsible for providing ECNs and ECOs Product design updates as a result of materials/components obsolesces or Product manufacturability. Advice shall also be responsible, and correct or repair, only defect in design in the Products, but shall not be responsible for, or be obligated to correct or repair, any defect in the manufacture of the Products.

 

 

 

 

 

	
10.
	
DPC will compensate Advice for any claim or damage which will be suffered by Advice due to DPC breach of this Agreement or any negligence conducted with the Products.

	
11.
	
Either Party of acknowledges and agrees that “Confidential Information” means any materials, data, and/or information of any type whatsoever, in whatever form or media, whether or not marked as “confidential” and/or “proprietary,” that is disclosed to or becomes known by either Party, and which is not generally known to the public, or which could reasonably be expected to be valuable to Advice or its affiliates or a competitor of Advice or its affiliates are created, accessed, viewed, learned, obtained, disclosed to or become known by either Party pursuant to this Agreement. Either Party shall: (a) hold such Confidential Information in strict confidence; (b) not disclose such Confidential Information to any third party except as expressly permitted by this Agreement. DPC will use Confidential Information only as necessary for DPC’s performance of its obligations under this Agreement.

	
12.
	
DPC will have no right of any kind and no copyright or intellectual property rights in the Products or the Production Files of the Products or any rights attributed to the Products, except as specified in this Agreement.

	
13.
	
DPC may not assign or delegate this Agreement, or any part thereof, to a third party by operation of law or otherwise without the prior written consent of Advice.

	
14.
	
No failure or delay on the part of either Party in the exercise of any power or right under the Agreement shall operate as a waiver thereof. No single or partial exercise of any right or power under the Agreement shall operate as a waiver of such right or of any other right or power. The waiver by either Party of a breach of any provision of the Agreement shall not operate or be construed as a waiver of any other or subsequent breach under the Agreement. No amendment or modification of or supplement to the terms of this Agreement or the schedules attached hereto shall be binding on either Party unless reduced to writing and signed by both Parties. This Agreement sets forth the entire final agreement between the parties as to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, between the parties.

	
15.
	
This Agreement shall be construed, interpreted and the rights of the Parties determined in accordance with the laws of the State of Israel (without reference to the choice of law provisions of Israeli law that would require the application of law of any other jurisdiction), except with respect to matters of law concerning the internal corporate affairs of any corporate entity which is a Party, and as to those matters the law of the jurisdiction under which the respective entity derives its powers shall govern. In any action between the Parties, each of the Parties irrevocably consents to the jurisdiction and venue of the Tel Aviv-Yafo courts located in the State of Israel. 

 

IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on its behalf by their respective officers thereunto duly authorized all as of the date first written above. 

 

 

 

Advice Electronics Ltd. 

 

By: /s/ Eli Nahum 

 

Name: Eli Nachum

 

Title: President

 

 

 

DIGITAL POWER CORPORATION 

 

By: /s/ Amos Kohn 

 

Name: Amos Kohn 

 

Title: President & CEO

 

 

 

 

 

Schedule A

Manufacturing Rights - Product List and Royalty

 

	
Family
	
Telkoor P/N
	
P/N
	
Royalty 

Rate %

	 	 	 	 
	
CPCI-AC-3U-200
	
900-3002-xx
	
CPCI 200W
	
10

	
CPCI-DC-3U-200/48
	
900-3003-xx
	
CPCI 200W
	
10

	
CPCI-DC-3U-200/24
	
900-3011-xx
	
CPCI 200WDC
	
10

	
CPCI-AC-3U-300/48
	
900-4002-xx
	
CPCI 300W
	
10

	
CPCI-DC-3U-300/48
	
900-4003-xx
	
CPCI 300W
	
10

	
CPCI-DC-3U-300/24
	
900-4011-xx
	
CPCI 300WDC
	
10

	
CPCI-AC-6U-400
	
900-6002-xx
	
CPCI 400W
	
10

	
CPCI-DC-6U-400
	
900-6003-xx
	
CPCI 400WDC
	
10

	
CPCI-AC-6U-500
	
900-7002-xx
	
CPCI 500W
	
10

	
CPCI-AC-6U-500-38
	
900-6212-xx
	
CPCI 500W
	
10

	
CPCI-AC-6U-500-38
	
900-7038-xx
	
CPCI 500W
	
10

	
eF175-131
	
900-0431-0000
	
EF200W
	
10

	
eF175-215
	
900-0215-0000
	
EF200W
	
10

	
eF175-215
	
900-0215-00
	
EF200W
	
10

	
eF200-225
	
900-0225-0000
	
EF200W
	
10

	
eFA175-112
	
900-1436-20
	
EF200W
	
10

	
eFA175-112
	
900-1437-0000
	
EF200W
	
10

	
DPO306-112
	
900-3436-0000
	
EF350W
	
10

	
DPO306-124
	
900-3456-0000
	
EF350W
	
10

	
DPOS306-112
	
900-3463-0000
	
EF350W
	
10

	
eF306-154
	
900-3054-0000
	
EF350W
	
10

	
eFO306-105
	
900-3151-0000
	
EF350W
	
10

	
eFO306-128
	
900-3028-0000
	
EF350W
	
10

	
eFO306-148
	
900-3046-0000
	
EF350W
	
10

	
eFOA306-148
	
900-3146-0000
	
EF350W
	
10

	
eFO306-148-54
	
900-3046-54
	
EF350W
	
10

	
eFO306-248
	
900-3248-0000
	
EF350W
	
10

	
eFO306-112
	
900-3036-0000
	
EF350W
	
10

	
eFO306-148
	
900-3056-0000
	
EF350W
	
10

	
ePO306-112
	
900-3036-0000
	
EF350W
	
10

	
eFO306-148
	
900-3356-0000
	
EF350W
	
10

	
eFOS306-112
	
900-4236-0000
	
EF300W
	
10

	
eF400-112
	
900-4036-0000
	
EF400W
	
10

	
eF400-124
	
900-4056-0000
	
EF400W
	
10

	
eF400-148
	
900-4046-0000
	
EF400W
	
10

	
eFO400-112
	
900-4136-0000
	
EF400W
	
10

	
eFO500-124
	
900-5124-0000
	
EF500W
	
10

	
1500W
	
900-1548-0000
	
Front-End
	
10

	
1600W
	
900-1648-0000
	
Front-End
	
10

	
800W
	
900-2180-0000
	
Front-End
	
10

	
Chassis 1500-1600W
	
900-1200-0000
	
Front-End
	
10

	
Chassis 800-800W
	
900-1200-0000
	
Front-End
	
10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]