Document:

Exhibit 10.45

 

XENETIC
BIOSCIENCES INC.

 

AMENDED AND RESTATED EMPLOYMENT
AGREEMENT

 

This
Amended and Restated Employment Agreement (“Agreement”) is entered into as of
this 26th day of October, 2017 by and between Xenetic Biosciences,
Inc., a Nevada corporation with a principal place of business in Lexington, Massachusetts (the “Company”), and Jeffrey
Eisenberg, an individual (the “Executive”).

 

WHEREAS, the Company
and Executive previously entered into an employment agreement on December 1, 2016 to employ Executive as the Chief Operating Officer
of the Company (the “Prior Agreement”);

 

WHEREAS, the Company
and Executive desire to amend and restate the Prior Agreement in its entirety to employ Executive as the Chief Executive Officer
of the Company on the terms and conditions contained in this Agreement.

 

WHEREAS, the Company
and the Executive wish to set forth the terms and conditions for the employment of the Executive by the Company;

 

NOW
THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration
the receipt of which is hereby acknowledged, the Company and the Executive hereby agree to amend and restate the Prior Agreement
and the parties mutually agree as follows:

 

Section
1. Term of Employment.

 

(a)            
General. The Company will employ Executive, and Executive will be employed by the Company, for the period set forth
in Section 1(b), in the positions set forth in Section 2, and upon the other terms and conditions herein provided commencing on
October 26, 2017 (the “Effective Date”).

 

(b)            
Term. The initial term of employment under this Agreement (the “Initial Term”) shall be for the period
beginning on the Effective Date and ending on the first anniversary thereof, unless earlier terminated as provided in Section 7.
The Initial Term shall automatically be extended for successive one year periods (each, an “Extension Term” and, collectively
with the Initial Term, the “Term”), unless either party hereto gives notice of non-extension to the other no later
than 90 days prior to the expiration of the then-applicable Term. The Executive’s employment with the Company shall be “at
will,” meaning that the Executive’s employment may be terminated by the Company or the Executive at any time and for
any reason.

 

(c)            
Location. During the Term, the Executive’s principal place of employment shall be in Miami, Florida or Lexington,
MA, at the discretion of the Executive. The Executive acknowledges that Executive’s duties and responsibilities shall require
the Executive to travel on business to the extent reasonably necessary to fully perform Executive’s duties and responsibilities
hereunder.

 

Section
2. Duties and Exclusivity.

 

(a)            
During the Term, the Executive (i) shall serve as Chief Executive Officer of the Company, with responsibilities, duties
and authority customary for such position, subject to direction by the Board of Directors of the Company (the “Board”),
(ii) shall report directly to the Board; (iii) shall devote substantially all the Executive’s working time and efforts to
the business and affairs of the Company and its subsidiaries; and (iv) agrees to observe and comply with the Company’s rules
and policies as adopted by the Company from time to time. The Executive’s duties, responsibilities and authority may include
services for one or more subsidiaries of the Company.

 

(b)            
Notwithstanding anything to the contrary in Section 2(a) above, the Executive may (i) serve as a director, trustee or officer
or otherwise participate in not-for-profit educational, welfare, social, religious and civic organizations; and (ii) with the advanced
consent of the Board, serve on the board of directors of other companies, to the extent that such other activities, either individually
or in the aggregate, do not inhibit or interfere with the performance of the Executive’s duties under this Agreement. By
approving this Agreement, the Board consents to the Executive’s service as a director at Mabvax Therapeutics, Inc.

 

(c)            
Board Membership. Executive shall serve as a member of the Board until the term of his directorship expires and he
is not re-elected or his earlier resignation or removal from the Board. During the Term, the Nominating and Corporate Governance
Committee will recommend the Executive for reelection to the Board. Executive’s service as a Board member shall be without
further cash compensation. At the request of the Board, Executive shall resign from the Board and any committees thereof effective
immediately upon the termination of Executive’s employment with the Company for any reason and, in the absence of any other
written resignation proffered to the Board, this Agreement shall constitute such a written resignation.

 

 

 

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(d)            
Exclusivity. The Executive hereby represents to the Company that: (i) the execution and delivery of this Agreement
by the Executive and the Company and the performance by the Executive of the Executive’s duties hereunder do not and shall
not constitute a breach of, conflict with, or otherwise contravene or cause a default under, the terms of any other agreement or
policy to which the Executive is a party or otherwise bound or any judgment, order or decree to which the Executive is subject;
(ii) that the Executive has no information (including, without limitation, confidential information and trade secrets) relating
to any other Person which would prevent, or be violated by, the Executive entering into this Agreement or carrying out his duties
hereunder; (iii) the Executive is not bound by any agreement with any previous employer or other party to refrain from (A) competing
with the business of, or (B) soliciting the customers of, that employer or party, in each case, which would be violated by your
employment with the Company; and (iv) the Executive understands the Company will rely upon the accuracy and truth of the representations
and warranties of the Executive set forth herein and the Executive consents to such reliance.

 

(e)            
Deemed Resignation. Upon termination of Executive’s employment for any reason, Executive shall be deemed to
have resigned from all offices, if any, then held with the Company or any of its subsidiaries, and, at the Company’s request,
Executive shall execute such documents as are necessary or desirable to effectuate such resignations.

 

Section
3. Compensation.

 

(a)            
Salary. In consideration of all of the services rendered by the Executive under the terms of this Agreement, the
Company shall pay to the Executive a base salary at the annualized rate of Three Hundred Thousand Dollars United States ($300,000.00)
per annum, less payroll deductions and all required withholdings. Executive’s Base Salary shall be subject to annual review
and upward adjustment only by the Board or a committee thereof, beginning in fiscal 2018. The Base Salary shall be paid in accordance
with the customary payroll practices of the Company in effect from time to time. The Executive’s salary, as adjusted from
time to time under this Section 3(a), is referred to as (“Base Salary”).

 

(b)            
Annual Bonus. With respect to each Company fiscal year that ends during the Term, commencing with fiscal year 2017,
the Executive shall be eligible to receive an annual performance-based cash bonus (the “Annual Bonus”) which shall
be payable based upon the attainment of individual and/or Company performance goals established by the Board or a committee thereof.
The target amount of such Annual Bonus shall equal 50% of Executive’s Base Salary in the year to which the Annual Bonus relates,
provided that the actual amount of the Annual Bonus may be greater or less than such target amount (the “Target Bonus”).
Each Annual Bonus, if any, for a fiscal year shall be payable, less payroll deductions and all required withholdings, not later
than the fifteenth day of the third month following the end of such year. Except as provided in Section 7, notwithstanding any
other provision of this Section 3(b), no bonus shall be payable with respect to a Company fiscal year unless the Executive remains
continuously employed with the Company until the last day of such year.

 

(c)            
Reimbursement of Expenses. The Company will promptly reimburse Executive for all reasonable out-of-pocket business
expenses that are incurred by Executive in furtherance of the Company’s business in accordance with the Company’s policies
with respect thereto as in effect from time to time. Without limiting the foregoing, the Company shall reimburse the Executive
for the Executive’s reasonable travel and lodging expenses in connection with the Executive’s travel for business purposes
between his primary residence in Miami-Dade County, Florida and Lexington, Massachusetts or other business locations of the Company
and its subsidiaries and the Company shall withhold from such payment all amounts required to be deducted or withheld under applicable
law. The Executive shall be reimbursed by the Company for the reasonable attorneys’ fees and costs incurred by him in connection
with the negotiation and preparation of this Agreement (and related equity award documentation), up to a maximum of $5,000 provided
that the Executive shall submit invoices to the Company within ninety (90) days of incurrence of the expense, and the Company shall
reimburse Executive within sixty (60) days thereafter.

 

(d)            
Fringe Benefits. In addition to any benefits provided by this Agreement, Executive shall be entitled to participate
generally in all employee benefit, welfare and other plans, practices, policies and programs and fringe benefits maintained by
the Company from time to time on a basis no less favorable than those provided to other similarly-situated executives of the Company.
The Executive understands that, except when prohibited by applicable law, the Company’s benefit plans and fringe benefits
may be amended, enlarged, diminished or terminated prospectively by the Company from time to time, in its sole discretion, and
that such shall not be deemed to be a breach of this Agreement. Regardless of where the Executive is based, the Company shall procure
and pay for a comprehensive health check for the Executive once per year during the Term, until the termination of the Executive’s
employment, to be carried out by a medical professional agreeable to the Executive (acting reasonably).

 

(e)            
Vacation. Executive shall be entitled to accrue four (4) weeks of paid vacation days per year in accordance with
and subject to the terms of the Company’s vacation policy applicable to other executive officers of the Company, as it may
be amended prospectively from time to time.

 

 

 

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Section
4. Insurance; Indemnification.

 

During Executive’s
employment with the Company, the Company shall maintain the insurance it currently has with respect to (i) directors’ and
officers’ liability, (ii) errors and omissions and (iii) general liability insurance providing coverage to Executive to the
same extent as other senior executives and directors of the Company. Executive’s coverage under such insurance shall terminate
upon Executive’s leaving of the Company’s employ for any reason. The Executive will be entitled to indemnification
with respect to Executive’s services provided hereunder pursuant to Nevada law, the terms and conditions of Company’s
articles of incorporation and/or bylaws, Company’s directors and officers (“D&O”) liability insurance policy,
and Company’s standard indemnification agreement for directors and officers as executed by Company and Executive.

 

Section
5. Equity Awards.

 

(a)            
Restricted Stock Unit Grant. The Company shall grant to the Executive on the Effective Date restricted stock units (the
“RSUs”) under the Company’s Amended and Restated Xenetic Biosciences, Inc. Equity Incentive Plan, adopted by
the Board of Directors on October 11, 2017, as amended from time to time (the “Plan”) for 50,000 shares of the Company’s
common stock. The RSUs shall vest one-third upon the first anniversary of the Effective Date, one-third upon the second anniversary
of the Effective Date and one-third upon the third anniversary of the Effective Date, provided the Executive remains employed with
the Company on the applicable vesting date and further provided that, in the event of (i) a Change in Control, as defined in the
Plan, while Executive is employed by the Company, any unvested portion of the RSUs shall vest immediately upon the Change in Control,
or (ii) a termination of this Agreement by the Company under Section 7(b) or the Executive under Section 7(c), any unvested portion
of the RSUs shall vest immediately upon such termination. The RSUs (including the distribution of any shares of the Company’s
common stock issuable pursuant thereto) shall be subject to the terms of the Plan, and a Restricted Stock Unit Agreement in a form
acceptable to the Committee, which shall include the terms provided herein. The Company represents and warrants to the Executive
that (i) this Agreement and the RSUs have been duly authorized by the Company’s Compensation Committee of the Company’s
Board of Directors (the “Compensation Committee”) and are the valid and binding obligations of the Company, enforceable
in accordance with their respective terms; and (ii) the grant of the RSUs does not violate applicable law or Nasdaq listing requirements.

 

(b)            
Delivery of Shares. The Restricted Stock Unit Agreement described in Section 5(a) shall require the Company to deliver shares
of Company’s Common Stock (as defined in the Plan) in satisfaction of the vested RSUs granted under such Agreement to the
Participant or direct its transfer agent to register such shares in book entry form, upon, but in no event later than thirty (30)
days following, the earlier of: (i) Participant’s “separation from service” as defined for purposes of Code Section
409A (as defined below), or (ii) a Change in Control that constitues a change in the ownership of, effective control of, or a change
in the ownership of a substantial portion of the assets of, the Company within the meaning of Code Section 409A (collectively,
the “Delivery Event”); provided, however, that the delivery of shares shall be delayed until the earlier of (A) six
months following separation from service, or (B) the Participant’s death, if necessary to comply with the requirements of
Code Section 409A. All shares underlying vested Restricted Stock Units shall be delivered to Participant upon a Delivery Event
regardless as to the reason triggering such Delivery Event (including the reason the Participant’s service is terminated).

 

(c)            
Stock Option Grant. The Company shall grant to Executive on the Effective Date a stock option to purchase 250,000 shares
of common stock of the Company (the “Option”) under the Plan at an exercise price equal to the fair market value of
the Company’s common stock on the grant date. Fifty percent of the Option shall vest one-third upon the first anniversary
of the Effective Date, one-third upon the second anniversary of the Effective Date and one-third upon the third anniversary of
the Effective Date, a portion of the Option to purchase 100,000 shares of common stock of the Company shall vest upon the achievement
of key clinical milestones for XBIO-101 as further described in the Option award agreements, and a portion of the Option to purchase
25,000 shares of common stock of the Company shall vest upon the achievement of key development milestones related to PSA as further
described in the Option award agreements, provided the Executive remains employed with the Company on the applicable vesting date
and further provided that, in the event of (i) a Change in Control, as defined in the Plan, while Executive is employed by the
Company, any unvested portion of the Option shall vest immediately upon the Change in Control, or (ii) a termination of this Agreement
by the Company under Section 7(b) or the Executive under Section 7(c), any unvested portion of the Option shall vest immediately
upon such termination. Notwithstanding the foregoing in no event may (i) Executive exercise the Option prior to the Company receiving
shareholder approval of an increase in the number of shares of common stock authorized under the Plan which amendment to the Plan
shall include provision for the issuance of shares of common stock underlying the Option; and (ii) if shareholder approval is not
obtained for any reason on or prior to October 11, 2018, the Option shall be cancelled and of no further force and effect. A cancellation
of the Option shall in no event be deemed a breach of this Agreement. The Option shall be evidenced in writing by, and subject
to the terms and conditions of, the Plan or such new plan covering the Option with terms that are the same as or materially similar
to the terms of the Plan and, except as otherwise set forth herein, the Company’s standard form of stock option agreement,
which agreement shall expire ten (10) years from the date of grant except as otherwise provided herein, in the stock option agreement
or the Plan. The Executive shall be eligible to receive from time to time additional equity awards under the Plan. The Company
represents and warrants to the Executive that (i) this Agreement and the Option have been duly authorized by the Company’s
Board of Directors or a committee thereof and are the valid and binding obligations of the Company, enforceable in accordance with
their respective terms, including the Company’s right to terminate the Option if no stockholder consent is obtained in a
timely manner; and (ii) the grant of the Option does not violate applicable law or Nasdaq listing requirements.

 

 

 

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(d)            
Extension of Exercise Period.
Except with respect to the Incentive Stock Option granted to the Executive on December 2, 2016, all options previously granted
to Executive are hereby amended to, and all options granted in the future shall allow Executive upon termination of employment
for any reason other than Cause to exercise the vested stock options for a period of the lesser of twelve months following termination
or the 10 year expiration date set forth in the option agreement.

 

(e)            
Sale of Shares. Executive agrees
that he will not loan or pledge any securities of the Company owned by him or which he may accrue in the future through Options
or other equity awards as collateral for any indebtedness except with the Committee’s approval.

 

Section
6. Compliance with Company Policy.

 

During the Term, the
Executive shall observe all Company rules, regulations, policies, procedures and practices in effect from time to time, including,
without limitation, such policies and procedures as are contained in the Company policy and procedures manual, as may be amended
or superseded from time to time.

 

Section
7. Termination of Employment.

 

Executive’s
employment with the Company may be terminated during Term of this Agreement for any of the following reasons:

 

(a)            
By The Company For Cause. At any time during the Term, the Company may terminate Executive’s employment hereunder
for Cause. For purposes of this Agreement, “Cause” shall mean the occurrence of any of the following events: (i) conduct
by Executive constituting a material act of willful misconduct in connection with the performance of his duties, including, without
limitation, misappropriation of funds or property of the Company or any of its affiliates other than the occasional, customary
and de minimis use of Company property for personal purposes; (ii) the commission by Executive of a felony or any misdemeanor
involving moral turpitude, deceit, dishonesty or fraud, or conduct by Executive that would reasonably be expected to result in
material injury to the Company if he were retained in his position; (iii) continued, willful and deliberate non-performance by
Executive of his duties hereunder (other than by reason of Executive’s physical or mental illness, incapacity or disability)
which has continued for more than thirty (30) days following written notice of such non-performance from the Company; (iv) a material
breach by Executive of any of the provisions contained in Section 9 of this Agreement; (v) a material violation by Executive of
the Company’s employment policies which has continued for more than thirty (30) days following written notice of such violation
from the Company; or (vi) willful failure to cooperate with a bona fide internal investigation or an investigation by regulatory
or law enforcement authorities, after being instructed by the Company to cooperate, or the willful destruction or failure to preserve
documents or other materials known to be relevant to such investigation or the willful inducement of others to fail to cooperate
or to produce documents or other materials. In the case of any termination for Cause, the Company shall provide written notice
to the Executive setting forth the acts, circumstances and bases that constitute Cause for termination.

 

(b)            
By The Company Without Cause.

 

At any time during
the Term, the Company may terminate Executive’s employment hereunder without Cause. For purposes of this Agreement, non-renewal
of the Term by the Company other than due to Cause shall be treated as a termination of the Executive’s employment without
Cause.

 

(c)            
By The Executive.

 

At any time during
the Term, Executive may terminate his employment hereunder for any reason, including but not limited to Good Reason. For purposes
of this Agreement, “Good Reason” shall mean that Executive has complied with the “Good Reason Process”
(hereinafter defined) following the occurrence of any of the following events: (i) a substantial diminution or other substantive
adverse change, not consented to by Executive, in the nature or scope of Executive’s responsibilities, authorities, powers,
functions or duties; (ii) a breach by the Company of any of its other material obligations under this Agreement, including but
not limited to failure of the Company to make any material payment or provide any material benefit under this Agreement, (iii)
the cancellation of the Option due to the failure of the Company to receive shareholder approval of an increase in the number of
shares of common stock authorized under the Plan which amendment to the Plan shall include provision for the issuance of shares
of common stock underlying the Option, on or prior to October 11, 2018; or (iv) a change in the geographic location at which Executive
must perform his services as provided under this Agreement to a location more than thirty miles from the locations selected by
the Executive for providing his services from time to time as provided under Section 1(c). A change in the employment of Executive
to another affiliate of Company does not in and of itself constitute “Good Reason” (i.e., absent any of the acts, circumstances
or bases set forth in (i) through (iv) of this Section 7(c)). “Good Reason Process” shall mean that (A) Executive reasonably
determines in good faith that a “Good Reason” event has occurred; (B) Executive notifies the Company in writing of
the occurrence of the Good Reason event within ninety (90) days of the occurrence of such event; (C) Executive cooperates in good
faith with the Company’s efforts, for a period not less than sixty (60) days following such notice, to modify Executive’s
employment situation in a manner acceptable to Executive and Company; (D) notwithstanding such efforts, one or more of the Good
Reason events continues to exist and has not been modified in a manner acceptable to Executive; and (E) Executive terminates his
employment no later than sixty (60) days after the end of the sixty (60) day cure period. If the Company cures the Good Reason
event in a manner acceptable to Executive during the sixty (60) day period, Good Reason shall be deemed not to have occurred.

 

 

 

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(d)            
Right to Severance.

 

In the event the Company
terminates Executive’s employment Without Cause or the Executive terminates employment for Good Reason as provided in Section
7(c) and if Executive executes and does not revoke during any applicable revocation period a general release of all claims against
the Company and its affiliates in a form acceptable to the Company (a “Release of Claims”) within a reasonable
period of time specified by the Company and in compliance with applicable law, following such termination, then in addition to
any accrued obligations payable under Section 7(e)(i) below, the Company shall:

 

(i)             
Pay to the Executive, within thirty (30) days following the date of termination, an amount equal to one times Executive’s
Base Salary (determined after disregarding any reduction in Base Salary that constitutes Good Reason), less payroll deductions
and all required withholdings;

 

(ii)           
Pay to the Executive an amount equal to the product of (A) the amount of the Annual Bonus that would have been payable to
the Executive pursuant to Section 3(b) if the Executive was still employed as of December 31st of the then current fiscal year
in respect of the fiscal year in which employment termination occurs based on the Company’s achievement against the performance
goals applicable to such year (after deeming any individual goals to be met at the target level), and (B) the ratio of (x) the
number of days elapsed during the fiscal year during which such termination of employment occurs on or prior to the date of such
termination to (y) 365, payable as of the same time as annual bonuses are paid to other senior executives; and

 

(iii)         
Notify Executive of any right to continue group health plan coverage sponsored by the Company immediately prior to Executive’s
date of termination pursuant to the provisions of applicable law including, but not limited to, the provisions of the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”). If Executive elects to receive such continued
healthcare coverage, the Company shall directly pay, or reimburse Executive for, the premium for Executive and Executive’s
covered dependents, less the amount of Executive’s monthly premium contributions for such coverage prior to termination,
for the period commencing on the first day of the first full calendar month following such employment termination through the earlier
of (i) the last day of the month during the first twelve months following the date of termination, following the date the Release
of Claims becomes effective and irrevocable and (ii) the date Executive and Executive’s covered dependents, if any, become
eligible for healthcare coverage under another employer’s plan(s). Executive shall notify the Company immediately if Executive
becomes covered by a group health plan of a subsequent employer. After the Company ceases to pay premiums pursuant to this subsection,
Executive may, if eligible, elect to continue healthcare coverage at Executive’s expense in accordance the provisions of
COBRA or other applicable law.

 

For purposes of this Section 7(d), Executive’s
termination of employment at the end of the Term following an earlier notice of nonrenewal by the Company shall be treated as a
termination of the Executive’s employment by the Company without Cause as of the last day of the Term.

 

(e)            
Upon a termination of the Executive’s employment for any reason, (i) the Executive shall be entitled to receive: (A)
any portion of the Executive’s Base Salary through the date of employment termination not theretofore paid, (B) the Annual
Bonus owed to the Executive under Section 3(b) if it remains unpaid as of the date of such termination, (C) any expenses owed to
the Executive under Section 3(c) above, (D) any accrued but unused vacation pay owed to the Executive pursuant to Section 3(e)
above, and (E) any amount arising from the Executive’s participation in, or benefits under, any employee benefit plans, programs
or arrangements under Section 3(e), which amounts shall be payable in accordance with the terms and conditions of such employee
benefit plans, programs or arrangements.

 

(f)             
The payments and benefits described in this Section 7 shall be the only payments and benefits payable in the event of the
Executive’s termination of employment for any reason.

 

Section
8. Survival of Obligations.

 

The obligations of
the Executive as set forth in Section 4, Section 7 and Sections 9 through 17 below shall survive the term of this Agreement and
the termination of Executive’s employment hereunder regardless of the reason(s) therefor.

 

 

 

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Section
9. Non-Competition and Conflicting Employment.

 

(a)            
During the Term, the Executive shall not, directly or indirectly, either as an Executive, employer, employee, consultant,
agent, principal, partner, officer, director, shareholder, member, investor or in any other individual or representative capacity,
engage or participate in any business or business related activity of any kind that is in competition in any manner whatever with
the business of the Company or any business activity related to the business in which the Company is now involved or becomes involved
during the Executive’s employment. For these purposes, the current business of the Company is described in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2016. The Executive also agrees that, during his employment with the
Company, he will not engage in any other activities that materially conflict with his obligations to the Company, it being understood
that activities approved by the Board under Section 2(b) or otherwise in writing shall not be considered to violate this Section
9(a).

 

(b)            
As a material inducement to the Company to continue the employment of the Executive, and in order to protect the Company’s
Confidential Information and good will, the Executive agrees that:

 

(i)             
For a period of twelve (12) months following termination of the Executive’s employment with the Company or its affiliates
for any reason, Executive will not directly or indirectly solicit or divert or accept business relating in any manner to Competing
Products or to products, processes or services of the Company, from any of the customers or accounts of the Company with which
the Executive had any contact as a result of Executive’s employment with the Company; and

 

(c)            
For a period of twelve (12) months after termination of Executive’s employment with the Company or its affiliates
for any reason, Executive will not (A) render services directly or indirectly, as an Executive, consultant or otherwise, to any
Competing Organization in connection with research on or the acquisition, development, production, distribution, marketing or providing
of any Competing Product, or (B) own any interest in any Competing Organization except as an investor or stockholder of more than
2% of the equity securities of any entity:

 

(i)             
“Competing Products” means any product, process, or service of any person or organization other than the Company,
in existence or under development (a) which is identical to, substantially the same as, or an adequate substitute for any product,
process or service of the Company in existence or under development, based on any patent or patent application (provisional or
otherwise), or other intellectual property of the Company about which the Executive acquires Confidential Information, and (b)
which is (or could reasonably be anticipated to be) marketed or distributed in such a manner and in such a geographic area as to
actually compete with such product, process or service of the Company; and

 

(ii)           
“Competing Organization” means any person or organization, including the Executive, engaged in, or about to
become engaged in, research on or the acquisition, development, production, distribution, marketing or providing of a Competing
Product.

 

(d)            
The parties agree that the Company is entitled to protection of its interests in these areas. The parties further agree
that the limitations as to time, geographical area, and scope of activity to be restrained do not impose a greater restraint upon
Executive than is necessary to protect the goodwill or other business interest of the Company. The parties further agree that in
the event of a violation of this Covenant Not To Compete, that the Company shall be entitled to the recovery of damages from Executive
and injunctive relief against Executive for the breach or violation or continued breach or violation of this Covenant. The Executive
agrees that if a court of competent jurisdiction determines that the length of time or any other restriction, or portion thereof,
set forth in this Section 9 is overly restrictive and unenforceable, the court may reduce or modify such restrictions to those
which it deems reasonable and enforceable under the circumstances, and as so reduced or modified, the parties hereto agree that
the restrictions of this Section 9 shall remain in full force and effect. The Executive further agrees that if a court of competent
jurisdiction determines that any provision of this Section 9 is invalid or against public policy, the remaining provisions of this
Section 9 and the remainder of this Agreement shall not be affected thereby, and shall remain in full force and effect.

 

Section
10. Confidentiality.

 

(a)            
(a) Executive recognizes and acknowledges that he will have access to certain information of members of the Company and
that such information is confidential and constitutes valuable, special and unique property of such members of the Company. The
parties agree that the Company has a legitimate interest in protecting the Confidential Information , as defined below. The parties
agree that the Company is entitled to protection of its interests in the Confidential Information. The Executive shall not at any
time, either during his employment and for seven (7) years after the termination of his employment with the Company for any reason,
or indefinitely to the extent the Confidential Information constitutes a trade secret under applicable law, disclose to others,
use, copy or permit to be copied, except in pursuance of his duties for and on behalf of the Company, its successors, assigns or
nominees, any Confidential Information of any member of the Company (regardless of whether developed by the Executive) without
the prior written consent of the Company. Executive acknowledges that the use or disclosure of the Confidential Information to
anyone or any third party could cause monetary loss and damages to the Company as well as irreparable harm. The parties further
agree that in the event of a violation of this covenant against non-use and non-disclosure of Confidential Information, that the
Company shall be entitled to a recovery of damages from Executive and/or to obtain an injunction against Executive for the breach
or violation, continued breach, threatened breach or violation of this covenant.

 

 

 

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(b)            
As used herein, the term “Confidential Information” with respect to any person means any secret or confidential
information or know-how and shall include, but shall not be limited to, plans, financial and operating information, customers,
supplier arrangements, contracts, costs, prices, uses, and applications of products and services, results of investigations, studies
or experiments owned or used by such person, and all apparatus, products, processes, compositions, samples, formulas, computer
programs, computer hardware designs, computer firmware designs, and servicing, marketing or manufacturing methods and techniques
at any time used, developed, investigated, made or sold by such person, before or during the term of this Agreement, that are not
readily available to the public or that are maintained as confidential by such person. The Executive shall maintain in confidence
any Confidential Information of third parties received as a result of his employment with the Company in accordance with the Company’s
obligations to such third parties and the policies established by the Company.

 

(c)            
As used herein, “Confidential Information” with respect to the Company means any Company proprietary information,
technical data, trade secrets, know-how or other business information disclosed to the Executive by the Company either directly
or indirectly in writing, orally or by drawings or inspection or unintended view of parts, equipment, data, documents or the like,
including, without limitation:

 

(i)             
Medical and drug research and testing results and information, research and development techniques, processes, methods,
formulas, trade secrets, patents, patent applications, computer programs, software, electronic codes, mask works, inventions, machines,
improvements, data, formats, projects and research projects;

 

(ii)           
Information about costs, profits, markets, sales, pricing, contracts and lists of customers, distributors and/or vendors
and business, marketing and/or strategic plans;

 

(iii)         
Forecasts, unpublished financial information, budgets, projections, and customer identities, characteristics and agreements
as well as all business opportunities, conceived, designed, devised, developed, perfected or made by the Executive whether alone
or in conjunction with others, and related in any manner to the actual or anticipated business of the Company or to actual or anticipated
areas of research and development; and

 

(iv)          
Executive personnel files and compensation information.

 

(d)            
Notwithstanding the foregoing, Confidential Information as defined in Sections 10(b) and (c) does not include any of the
foregoing items which (i) has become publicly known or made generally available to the public through no wrongful act of Executive;
(ii) has been disclosed to Executive by a third party having no duty to keep Company matter confidential; (iii) has been developed
by Executive independently of employment with the company; (iv) has been disclosed by the Company to a third party without restriction
on disclosure; (v) has been disclosed with the Company’s written consent, or (vi) the Company’s investors, shareholders
and other capital sources.

 

(e)            
Executive hereby acknowledges and agrees that all Confidential Information shall at all times remain the property of the
Company.

 

(f)             
Executive agrees that Executive will not improperly use or disclose any Confidential Information, proprietary information
or trade secrets of any former employer or other person or entity with which Executive has an agreement or duty to keep in confidence
information acquired by Executive and that Executive will not bring onto Company premises any unpublished document or proprietary
information belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity.

 

(g)            
Executive recognizes that the Company has received and in the future will receive from third parties their confidential
or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such information and
to use it only for certain limited purposes. Executive agrees to hold all such confidential or proprietary information in the strictest
of confidence and not to disclose it to any person, firm or entity or to use it except as necessary in carrying out Executive’s
work for the Company consistent with Company’s agreement with such third party.

 

(h)            
Executive represents and warrants that from the time of the Executive’s first contact with the Company, Executive
has held in strict confidence all Confidential Information and has not disclosed any Confidential Information directly or indirectly
to anyone outside the Company, or used, copied, published or summarized any Confidential Information, except to the extent otherwise
permitted under the terms of this Agreement.

 

 

 

    	 	7	 

     

    

 

(i)             
Executive will not disclose to the Company or use on its behalf any confidential information belonging to others and Executive
will not bring onto the premises of the Company any confidential information belonging to any such party unless consented to in
writing by such party.

 

Section
11. Inventions.

 

(a)            
Attached hereto as Exhibit A is a list describing all ideas, processes, trademarks, service marks, inventions, designs,
technologies, computer hardware or software, original works of authorship, formulas, discoveries, patents, copyrights, copyrightable
works, products, marketing and business ideas, and all improvements, know-how, data rights, and claims related to the foregoing,
whether or not patentable, registrable or copyrightable, which were conceived, developed or created by Executive prior to Executive’s
employment or first contact with Company (collectively referred to herein as “Prior Inventions”), (A) which belong
to Executive, (B) which relate to the Company’s current or contemplated business, products or research and development, and
(C) which are not assigned to the Company hereunder. If there is no Exhibit A or no items thereon, the Executive represents that
there are no such Prior Inventions. If in the course of Executive’s employment with the Company, the Executive incorporates
or embodies into a Company product, service or process a Prior Invention owned by the Executive or in which the Executive has an
interest, the Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, world-wide license
to make, have made, modify, use and sell such Prior Invention as part of or in connection with such product, service or process.

 

(b)            
Executive agrees that Executive will promptly make full, written disclosure to the Company and will hold in trust for the
sole right and benefit of the Company, and the Executive hereby assigns to the Company, or its designee, all of the Executive’s
right, title and interest in and to any and all ideas, process, trademarks, service marks, inventions, designs, technologies, computer
hardware or software, original works of authorship, formulas, discoveries, patents, copyrights, copyrightable works, products,
marketing and business ideas, and all improvements, know-how, data, rights and claims related to the foregoing, whether or not
patentable, registrable or copyrightable, which Executive may, on or after the Effective Date of this Agreement, solely or jointly
with others conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during the
period of time the Executive is in the employ of the Company (collectively referred to herein as “Intellectual Property Items”);
and the Executive further agrees that the foregoing shall also apply to Intellectual Property Items which relate to the business
of the Company or to the Company’s anticipated business as of the end of the Executive’s employment and which are conceived,
developed or reduced to practice during a period of one year after the end of such employment. Without limiting the foregoing,
the Executive further acknowledges that all original works of authorship which are made by Executive (solely or jointly with others)
within the scope of Executive’ employment and which are protectable by copyright are works made for hire as that term is
defined in the United States Copyright Act.

 

(c)            
Executive agrees to keep and maintain adequate and current written records of all Intellectual Property Items made by Executive
(solely or jointly with others) during the term of Executive’s employment with the Company. The records will be in the form
of notes, sketches, drawings and any other format that may be specified by the Company. The records will be available to, and remain
the sole property of, the Company at all times.

 

Section
12. Return of Company Property.

 

Executive agrees that,
at any time upon request of the Company, and, in any event, at the time of leaving the Company’s employ, Executive will deliver
to the Company (and will not keep originals or copies in Executive’s possession or deliver them to anyone else) any and all
devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, material,
equipment or other documents or property, or reproduction of any of the aforementioned items, containing Confidential Information
or otherwise belonging to the Company, its successors or assigns, whether prepared by the Executive or supplied to the Executive
by the Company. Notwithstanding the foregoing, it is understood that names and contacts in the Executive’s address book acquired
both prior to and during employment, including shareholders of the Company, will remain property of the Executive who will not
be restricted from doing business with them subject to the limitations Sections 10 and 14 hereof and applicable law.

 

Section
13. Non-Solicitation.

 

Executive agrees that
Executive shall not, during Executive’s employment or other involvement with the Company and for a period of twelve (12)
months immediately following the termination of the Executive’s employment with the Company, for any reason, whether with
or without cause, (i) either directly or indirectly solicit or take away, or attempt to solicit or take away executives of the
Company, either for the Executive’s own business or for any other person or entity and/or (ii) either directly or indirectly
recruit, solicit or otherwise induce or influence any investor, lessor, supplier, customer, agent, representative or any other
person which has a business relationship with the Company to discontinue, reduce or modify such employment, agency or business
relationship with the Company .

 

 

 

    	 	8	 

     

    

 

Section
14. Publications.

 

Executive agrees that
Executive will, in advance of publication, provide the Company with copies of all writings and materials which Executive proposes
to publish during the term of Executive’s employment and for twenty-four (24) months thereafter. Executive also agrees that
Executive will, at the Company’s request and sole discretion, cause to be deleted from such writings and materials any information
the Company believes discloses or will disclose Confidential Information. The Company’s good faith judgment in these matters
will be final. The Executive will also, at the Company’ request and in its sole discretion, cause to be deleted any reference
whatsoever to the Company from such writings and materials.

 

Section
15. Equitable Remedies.

 

Executive agrees that
any damages awarded the Company for any breach of Sections 9 through 14 of this Agreement by Executive would be inadequate. Accordingly,
in addition to any damages and other rights or remedies available to the Company, the Company shall be entitled to obtain injunctive
relief from a court of competent jurisdiction temporarily, preliminarily and permanently restraining and enjoining any such breach
or threatened breach and to specific performance of any such provision of this Agreement. In the event that either party commences
litigation against the other under this Agreement the prevailing party in said litigation shall be entitled to recover from the
other all costs and expenses incurred to enforce the terms of this Agreement and/or recover damages for any breaches thereof, including
without limitation reasonable attorneys’ fees.

 

Section
16. Representations and Warranties.

 

(a)            
Executive represents and warrants as follows that: (i) Executive has no obligations, legal or otherwise, inconsistent with
the terms of this Agreement or with the Executive’s undertaking a relationship with the Company; and (ii) Executive has not
entered into, nor will Executive enter into, any agreement (whether oral or written) in conflict with this Agreement.

 

(b)            
The Company represents and warrants to the Executive that this Agreement and the RSUs and Options grant have been duly authorized
by the Company’s Board of Directors and are the valid and binding obligations of the Company, enforceable in accordance with
their respective terms.

 

Section
17. Miscellaneous.

 

(a)            
Entire Agreement. This Agreement, the exhibits attached hereto, and the RSUs and Option granted concurrently herewith
under Section 5(a) hereof, contain the entire understanding of the parties and supersede all previous contracts, arrangements or
understandings, express or implied, between the Executive and the Company with respect to the subject matter hereof or his engagement
by the Company as Chief Executive Officer. No agreements or representations, oral or otherwise, express or implied, with respect
to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement or in the attached
exhibits.

 

(b)            
Section Headings. The section headings herein are for the purpose of convenience only and are not intended to define
or limit the contents of any section.

 

(c)            
Severability. If any provision of this Agreement shall be declared to be invalid or unenforceable, in whole or in
part, the remainder of this Agreement shall be amended to provide the parties with the equivalent of the same rights and obligations
as provided in the original provisions of this Agreement.

 

(d)            
No Oral Modification; Waiver or Discharge. No provisions of this Agreement may be modified, waived or discharged
orally, but only by a waiver, modification or discharge in writing signed by the Executive and such officer as may be designated
by the Board of Directors of the Company to execute such a waiver, modification or discharge. No waiver by either party hereto
at any time of any breach by the other party hereto of, or failure to be in compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the
time or at any prior or subsequent time.

 

(e)            
Invalid Provisions. Should any portion of this Agreement be adjudged or held to be invalid, unenforceable or void,
such holding shall not have the effect of invalidating or voiding the remainder of this Agreement and the parties hereby agree
that the portion so held invalid, unenforceable or void shall, if possible, be deemed amended or reduced in scope, or otherwise
be stricken from this Agreement to the extent required for the purposes of validity and enforcement

 

 

 

    	 	9	 

     

    

 

(f)             
Execution In Counterparts. The parties may sign this Agreement in counterparts, all of which shall be considered
one and the same instrument. Facsimile transmissions, or electronic transmissions in .pdf format, of any executed original document
and/or retransmission of any executed facsimile or .pdf transmission shall be deemed to be the same as the delivery of an executed
original of this Agreement.

 

(g)            
Governing Law And Performance. This Agreement shall be governed, construed, interpreted and enforced in accordance
with the substantive laws of the Commonwealth of Massachusetts, without giving effect to any choice of law or conflict of law provision
or rule (whether of the Commonwealth of Massachusetts or any other jurisdiction) that would cause the application of the law of
any jurisdiction other than the Commonwealth of Massachusetts. Any legal action or proceeding with respect to this Agreement shall
be brought in the courts of the Commonwealth of Massachusetts or of the United States of America for the District of Massachusetts.
By execution and delivery of this Agreement, each of the parties hereto accepts for itself and in respect of its property, generally
and unconditionally, the exclusive jurisdiction of the aforesaid courts. ANY ACTION, DEMAND, CLAIM, OR COUNTERCLAIM ARISING UNDER
OR RELATING TO THIS AGREEMENT SHALL BE RESOLVED BY A JUDGE ALONE AND EACH OF COMPANY AND EXECUTIVE WAIVES ANY RIGHT TO A JURY TRIAL
THEREOF.

 

(h)            
Successor and Assigns. This Agreement shall be binding on and inure to the benefit of the successors in interest
of the parties, including, in the case of the Executive, the Executive’s heirs, executors and estate. The Executive may not
assign Executive’s obligations under this Agreement. Any successor to the Company (whether direct or indirect and whether
by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or
assets shall assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in
the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession.
For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business
and/or assets which executes and delivers the assumption agreement described in this Section 17(h) or which becomes bound by the
terms of this Agreement by operation of law.

 

(i)             
Notices. Any notices or other communications provided for hereunder may be made by hand, by certified or registered
mail, postage prepaid, return receipt requested, or by nationally recognized express courier services provided that the same are
addressed to the party required to be notified at its address first written above, or such other address as may hereafter be established
by a party by written notice to the other party. Notice shall be considered accomplished on the date delivered, three days after
being mailed or one day after deposit with the express courier, as applicable.

 

Section
18. Section 409A.

 

(a)            
It is intended that any compensation or benefits under this Agreement satisfy, to the greatest extent possible, the exemptions
from the application of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) provided under
Treasury Regulations Sections 1.409A-1(b), and this Agreement will be construed to the greatest extent possible as consistent with
those provisions, and to the extent not so exempt, this Agreement (and any definitions hereunder) will be construed in a manner
that complies with Section 409A. For purposes of Section 409A, the Executive’s right to receive any installment payments
under this Agreement shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment
hereunder shall at all times be considered a separate and distinct payment. Severance benefits under Section 7(d) shall not commence
until the Executive has a “separation from service” for purposes of Section 409A.

 

(b)            
To the extent that any reimbursement of expenses or in-kind benefits constitutes deferred compensation under Section 409A,
such reimbursement or benefit shall be provided no later than December 31 of the year following the year in which the expense was
incurred. The amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent
year. The amount of any in-kind benefits provided in one year shall not affect the amount of in-kind benefits provided in any other
year.

 

(c)            
If the Executive is deemed at the time of his separation from service to be a specified employee for purposes of Section
409A(a)(2)(B)(i) of the Code, to the extent delayed commencement of any portion of the compensation and benefits to which the Executive
is entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the
Code, such portion of the Executive’s termination benefits shall be provided to the Executive immediately after the earlier
of (A) the expiration of the six-month period measured from the date of the Executive’s separation from service with the
Company (as such term is defined in the Treasury Regulations issued under Section 409A of the Code) or (B) the date of the Executive’s
death in a lump sum, and any remaining payments due under the Agreement shall be paid as otherwise provided herein.

 

 

 

    	 	10	 

     

    

 

Section
19. Limitation of Payments upon Certain Events.

 

(a)            
Limitation on Payments. Notwithstanding anything in this Agreement to the contrary, if any payment or distribution
Executive would receive pursuant to this Agreement or otherwise (“Payment”) would (a) constitute a “parachute
payment” within the meaning of Section 280G of the Code), and (b) but for this sentence, be subject to the excise tax imposed
by Section 4999 of the Code (the “Excise Tax”), then the Company shall cause to be determined, before any amounts
of the Payment are paid to Executive, which of the following alternative forms of payment would maximize Executive’s after-tax
proceeds: (i) payment in full of the entire amount of the Payment (a “Full Payment”), or (ii) payment of only
a part of the Payment so that Executive receives that largest Payment possible without being subject to the Excise Tax (a “Reduced
Payment”), whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes
and the Excise Tax (all computed at the highest marginal rate, net of the maximum reduction in federal income taxes which could
be obtained from a deduction of such state and local taxes), results in Executive’s receipt, on an after-tax basis, of the
greater amount of the Payment, notwithstanding that all or some portion the Payment may be subject to the Excise Tax.

 

(b)            
The independent registered public accounting firm engaged by the Company for general audit purposes as of the day prior
to the date the first Payment is due shall make all determinations required to be made under this Section 19. If the independent
registered public accounting firm so engaged by the Company is serving as accountant or auditor for the individual, group or entity
effecting the transaction, the Company shall appoint a nationally recognized independent registered public accounting firm to make
the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such independent
registered public accounting firm required to be made hereunder.

 

(c)            
The independent registered public accounting firm engaged to make the determinations hereunder shall provide its calculations,
together with detailed supporting documentation, to the Company and Executive at such time as requested by the Company or Executive.
If the independent registered public accounting firm determines that no Excise Tax is payable with respect to a Payment, either
before or after the application of the Reduced Payment, it shall furnish the Company and Executive with an opinion reasonably acceptable
to Executive that no Excise Tax will be imposed with respect to such Payment. Any good faith determinations of the accounting firm
made hereunder shall be final, binding and conclusive upon the Company and Executive.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Amended and Restated Employment Agreement under seal as of the date and year first above
written.

  

	
        Company:

         

        Xenetic Biosciences Inc.,

         

        /s/ James Parslow

        By: James Parslow

        Chief Financial Officer
	
        Executive:

         

         

         

        /s/ Jeffrey Eisenberg

        By: Jeffrey Eisenberg

         

 

 

 

 

    	 	11Exhibit 10.46

 

[***] Indicates
portions of this exhibit that have been omitted and filed separately with the Securities and

Exchange Commission pursuant to a
request for confidential treatment.

 

EXECUTION VERSION

 

RIGHT TO SUBLICENSE AGREEMENT

 

This Right to Sublicense Agreement (“Agreement”)
is made and entered into as of October 27, 2017 by and between Baxalta Incorporated, Baxalta US Inc., and Baxalta GmbH (collectively,
with their Affiliates, “Baxalta”) and Xenetic Biosciences, Inc. (with its Affiliates, “Xenetic”) (with
Baxalta and Xenetic being the “Parties” and each individually, a “Party”).

 

WITNESSETH

 

WHEREAS, the Parties acknowledge the existence
of an Exclusive Research, Development, and License Agreement (“Original Agreement”) entered into between Baxter Healthcare
SA and Baxter Healthcare Corporation and Lipoxen Technologies Limited on August 15, 2005 and subsequently amended as follows: Amendment
No. 1 of August 15, 2005; Letter Amendment of December 13, 2005 (“Amendment No. 2”); Amendment No. 3 of May 2009; Amendment
No. 4 of August 10, 2010; Amendment No. 5 of September 15, 2010; and Amendment No. 6 of January 29, 2014 (collectively, the “Amendments,”
the Original Agreement as amended by the Amendments is referred to as the “Exclusive Agreement”);

 

WHEREAS, effective July 1, 2015, Baxter
International Inc. separated into two publicly-traded companies, one of which became Baxalta Incorporated;

 

WHEREAS, Baxalta Incorporated, Baxalta
US Inc., and Baxalta GmbH retained Baxter International Inc.’s hemophilia treatment projects and products, including the
Exclusive Agreement;

 

WHEREAS, U.K.-based Lipoxen PLC changed
its name to Xenetic Biosciences PLC in 2011, and in 2014 Xenetic Biosciences PLC became U.S.-based Xenetic Biosciences, Inc.;

 

WHEREAS, Xenetic has certain rights in
Patents listed in Exhibit A (“Xenetic Patents”) that may cover the composition, manufacture, sale, or import of
Licensed Products, or are necessary to develop, make, have made, use, sell, have sold, and import Licensed Products;

 

WHEREAS, notwithstanding any limitations
or conditions set forth in the Exclusive Agreement, Baxalta wishes to sublicense the Xenetic Patents [***]; and

 

WHEREAS, notwithstanding any limitations
or conditions set forth in the Exclusive Agreement, and subject to the limitations and conditions of this Agreement, Xenetic wishes
to grant Baxalta the right to sublicense the Xenetic Patents [***].

 

NOW, THEREFORE, in consideration of the
above promises and mutual covenants hereinafter contained, the Parties agree as follows:

 

SECTION
I — DEFINITIONS

 

“Affiliate” means, with respect
to a Party, any Person that directly or indirectly, through one or more intermediates, Controls, is Controlled by, or is under
common Control with such Party. For purposes of this Agreement, “Control” means (a) direct or indirect legal or beneficial
ownership of fifty percent (50%) or more of (i) the voting equity of such entity or (ii), in the case of a non-corporate entity,
equivalent interests, or (b) the power to otherwise direct the business activities of a Person.

 

 

 

    	 	1	 

     

    

 

[***] Indicates
portions of this exhibit that have been omitted and filed separately with the Securities and

Exchange Commission pursuant to a
request for confidential treatment.

 

EXECUTION VERSION

 

“Business Day” means any day
other than a Saturday, a Sunday, or a day on which commercial banks located in New York, New York are authorized or required by
applicable law to remain closed.

 

“Calendar Day” means all days
in a month, including weekends and holidays.

 

“Effective Date” is the date
on which all Parties have signed this Agreement.

 

“EU” means the European Union,
including the United Kingdom.

 

“Factor VIII” means a recombinantly
produced Factor VIII molecule, including the full-length human Factor VIII protein and any equivalents thereof, including any variants
containing any derivatives, mutations, deletions, insertions, or substitutions.

 

“Licensed Patents” means (a)
the Xenetic Patents; (b) any and all Patents existing or subsequently issuing from applications (i) from which any of the Xenetic
Patents claim direct or indirect priority, (ii) which claim direct or indirect priority from any of the Xenetic Patents, or (iii)
which share common priority with any of the Xenetic Patents; (c) any and all Patents existing or subsequently issuing from continuations,
divisionals, continuations-in-part, reexaminations, substitutes, requests for continued examination, reissues, extensions, supplementary
protection certificates, and renewals of any Patents or applications described in subsection (a) or (b) above; (d) any foreign
counterparts, foreign related applications, or foreign related Patents of any of the foregoing; and (e) no others. Licensed Patents
does not include any Patents owned or controlled by Baxalta or Xenetic not expressly set forth in this definition.

 

“Licensed Product” means [***].

 

“Manufacture” means to develop,
make, have made, manufacture, or have manufactured a biologic or pharmaceutical product, including any ingredient thereof, and
“Manufactured” shall have a corresponding meaning.

 

“Market” means to offer, have
offered, sell, have sold, offer to sell, or have offered for sale a biologic or pharmaceutical product or to use, commercially-launch
or distribute, have commercially-launched or distributed such product for such purposes, and “Marketing” shall have
a corresponding meaning.

 

“Net Sales” shall have the
same meaning as set forth in the [***] Agreement. The definition of Net Sales upon entering into the [***] Agreement is as set
forth in Exhibit B.

 

“[***] Agreement” means the
agreement, or series of agreements, relating to Licensed Products to be entered into by and between Baxalta and [***], which includes
a sublicense to the Licensed Patents, and includes obligations for [***] to (a) make an up-front payment to Baxalta within five
(5) Business Days of the parties thereto executing such agreement (the “Up Front Payment”), (b) make quarterly royalty
payments to Baxalta which are a function of Net Sales (“[***] Royalties”), and (c) make a quarterly report in connection
with such royalty payments (“[***] Report”).

 

“Patent(s)” means (a) all classes
or types of patents throughout the world, including utility patents, utility models, design patents, invention certificates, reexamination
certificates, reissues and renewals as well as foreign equivalents thereof; and (b) all applications (including provisional and
non-provisional applications), continuations, divisionals, continuations-in-part, reissues, extensions, supplementary protection
certificates, renewals, re-examinations, as well as foreign equivalents thereof. The term “Patents” does not include
any copyrights, trademarks, mask work rights, or trade secret rights.

 

 

 

    	 	2	 

     

    

 

[***] Indicates
portions of this exhibit that have been omitted and filed separately with the Securities and

Exchange Commission pursuant to a
request for confidential treatment.

 

EXECUTION VERSION

 

“Person” means any individual,
trust, corporation, partnership, joint venture, limited liability company, association, unincorporated organization, or other legal
entity.

 

“Third Party” means any Person
other than a Party to this Agreement or an Affiliate of a Party to this Agreement.

 

“U.S.” or “US”
means the United States of America and its territories.

 

“U.S. Launch Date” means [***].

 

“Value Added Tax” or “VAT”
means (a) in relation to any jurisdiction within the EU, the tax imposed by the EC Council Directive on the common system of value
added tax (2006/112/EC) and any successor or equivalent legislation and any national legislation implementing that directive together
with legislation supplemental thereto and the equivalent tax (if any) in that jurisdiction; and (b) in any other jurisdiction,
any other value added, goods and services, consumption or similar tax chargeable on the supply or deemed supply of goods or services
under applicable legislation or regulation; but, in each event, excluding any U.S. sales tax.

 

“Xenetic Patents” means the
Patents as set forth in Exhibit A.

 

SECTION
II — LICENSE

 

2.1           
Right to Sublicense. Notwithstanding any limitations or conditions set forth in the Exclusive Agreement, Xenetic
hereby grants to Baxalta and its Affiliates the right to grant a nonexclusive sublicense under the Licensed Patents to [***]:

 

		(a)	Manufacture the Licensed Product anywhere in the world on or after the Effective Date;

 

		(b)	Market the Licensed Product anywhere in the world other than the U.S. on or after the Effective
Date; and

 

		(c)	Market the Licensed Product in the U.S. on or after the U.S. Launch Date.

 

(individually and collectively, the “Sublicense”).

 

2.2       Survival
of Sublicense. For the avoidance of doubt, any Sublicense of the Licensed Patents granted to [***] shall survive termination
of the Exclusive Agreement or this Agreement for any reason.

 

 

 

    	 	3	 

     

    

 

[***] Indicates
portions of this exhibit that have been omitted and filed separately with the Securities and

Exchange Commission pursuant to a
request for confidential treatment.

 

EXECUTION VERSION

 

SECTION
III CONSIDERATION

 

3.1           
Payment. Provided that Baxalta receives the Up Front Payment, Baxalta US Inc. shall pay Xenetic within fifteen (15)
Business Days after receiving the Up Front Payment a lump-sum, non-refundable payment of Seven Million Five Hundred Thousand U.S.
Dollars ($7,500,000)(“Milestone Payment”).

 

3.2           
Royalties. Provided that Baxalta receives the [***] Royalties Baxalta US Inc. shall pay Xenetic a [***] percent ([***]%)
royalty in U.S. Dollars based on the [***] Royalties within fifteen (15) Business Days after receiving the [***] Royalties throughout
the Term.

 

3.3           
No Other Consideration. No other payments shall be due or payable to Xenetic under this Agreement or the Exclusive
Agreement in connection with the Sublicense.

 

3.4           
Contingency. For the avoidance of doubt, Baxalta shall not have any obligation (a) to make the payment contemplated
in Section 3.1 if Baxalta does not receive the Up Front Payment, nor (b) to make any royalty payment(s) contemplated in Section
3.2 if Baxalta does not receive payment of the corresponding [***] Royalty. Baxalta agrees to use reasonable efforts to promptly
collect any amounts owed to it under the [***] Agreement and will keep Xenetic informed in reasonable detail.

 

3.5           
Method of Payment. All payments from Baxalta US Inc. to Xenetic under this Section III shall be made by wire transfer
in U.S. Dollars of immediately-available funds to a bank account designated by Xenetic in writing.

 

3.6           
Reporting Obligations. Baxalta shall prepare and provide to Xenetic written reports, which shall be subject to the
confidentiality obligations in Section V (the “Royalty Report”). Such Royalty Report shall be provided within ten (10)
Business Days after Baxalta receives the [***] Reports. Each Royalty Report shall report Net Sales, as reported in the [***] Report,
and the Royalties owed to Xenetic. If Baxalta needs additional time to reconcile [***] written report(s) to ensure accurate reporting,
Baxalta shall immediately notify Xenetic of the need for additional time and the parties will mutually agree on a reasonable extension
for providing the written reports.

 

3.7           
Currency and currency conversion. Currency and currency conversion calculations shall be the same as applied to Baxalta
under the [***] Agreement.

 

3.8           
Records. Baxalta will maintain the [***] Reports for at least three (3) years after submission of the applicable
Royalty Report.

 

3.9           
Audit Rights. Upon reasonable prior written notice to Baxalta, Baxalta will provide access to the [***] Reports to
a third party accounting firm selected by Xenetic and reasonably acceptable to Baxalta. Baxalta will require any such accounting
firm to enter into a confidentiality agreement and will not permit the disclosure of the [***] Reports to any third party including
Xenetic. The review will occur: (a) during normal business hours; (b) in a manner reasonably designed to facilitate Xenetic’s
review or audit without unreasonable disruption to Baxalta’s business; and (c) no more than once each calendar year during
the Term and for a period of three (3) years thereafter. Baxalta will promptly pay to Xenetic the amount of any uncontested underpayment
determined by the review or audit, and accrued interest. If the review or audit determines that Baxalta has underpaid any payment
by five percent (5%) or more, then Baxalta will also promptly pay the costs and expenses of Xenetic and its accountants in connection
with the review or audit.

 

3.10        
Interest. All amounts that are not paid by Baxalta when due will accrue interest from the date due until paid at
a rate equal to one and one half percent (1.5%) per year (or the maximum allowed by law, if less).

 

3.11        
Value Added Tax. All payments or amounts due under this Agreement, whether monetary or non-monetary, are exclusive
of VAT/Sales Tax and their equivalents.

 

3.12        
Withholding Tax. The withholding of taxes shall be governed by Section 9.5 of the Exclusive Agreement.

 

 

 

    	 	4	 

     

    

 

[***] Indicates
portions of this exhibit that have been omitted and filed separately with the Securities and

Exchange Commission pursuant to a
request for confidential treatment.

 

EXECUTION VERSION

 

SECTION
IV — WAIVER

 

To the extent the Exclusive
Agreement contains or imposes any restrictions, limitations or conditions on either (i) Baxalta’s ability to grant a sublicense
under the Licensed Patents, or (ii) the terms and conditions of any sublicense of the Licensed Patents, Xenetic hereby waives all
such restrictions, limitations, and conditions in connection with the Sublicense.

 

SECTION
V — CONFIDENTIALITY

 

The Parties agree that
(1) this Agreement and (2) any information that is shared regarding the [***] Agreement or [***] performance thereof is confidential
and no Party will disclose any of its contents, including in any press release, unless (a) required by applicable laws, in which
case the Party compelled to disclose will provide prior notice to the other Party in order to afford such other Party the opportunity
to prevent or seek confidential treatment of such disclosure, or (b) required by stock exchange rules. Notwithstanding the foregoing,
either Party may disclose this Agreement to its attorneys, advisors, consultants, agents, and representatives who are subject to
obligations of confidentiality consistent with this Agreement.

 

SECTION
VI — GOVERNING LAW

 

This Agreement shall be construed, and
the relationship between the Parties determined, under the laws of Delaware, notwithstanding any choice-of-law principle that might
dictate a different governing law. Baxalta and Xenetic agree (a) that all disputes and litigation regarding this Agreement, its
construction and matters connected with its performance be subject to the exclusive jurisdiction of the state and federal courts
located in Wilmington, Delaware (the “Court”); and (b) to submit any disputes, matters of interpretation, controversies,
or enforcement actions arising with respect to the subject matter of this Agreement exclusively to the Court. The Parties hereby
waive any challenge to the jurisdiction or venue of the Court over these matters.

 

SECTION
VII — TERM

 

7.1           
Term. The term of this Agreement shall commence upon the Effective Date and shall continue on a country by country
basis, until the expiration of the last-to-expire Licensed Patents or upon certification from Baxalta that it is not receiving
compensation for sales of Licensed Products in a country whichever is later (“Term”) regardless of the termination
or expiration of the Exclusive Agreement.

 

7.2           
Termination for Failure to Receive Up Front Payment. In the event that Baxalta does not receive the Up Front Payment
under the [***] Agreement within such fifteen (15) Business Day period, Baxalta shall promptly advise Xenetic and the parties will
meet and confer within ten (10) Business Days to discuss and agree on a reasonable cure plan. In the event that the [***] Agreement
is terminated as a result of failure to make the Up Front Payment, this Agreement and any Sublicenses granted pursuant to this
Agreement, shall be terminated.

 

 

 

    	 	5	 

     

    

 

 

[***] Indicates
portions of this exhibit that have been omitted and filed separately with the Securities and

Exchange Commission pursuant to a
request for confidential treatment.

 

EXECUTION VERSION

 

SECTION
VIII — OTHER TERMS

 

8.1           
Construction/Interpretation. The headings and captions used in this Agreement are solely for the convenience of reference
and shall not affect its interpretation. The term “including” means “including, without limitation,” and
“herein,” “hereof,” and “hereunder” refer to this Agreement. The word “will” shall
be construed to have the same meaning and effect as the word “shall.” The Parties agree and acknowledge that this Agreement
is the product of both Parties and shall not be construed against either Party.

 

8.2           
Objections. If any administrative, governmental, or judicial body finds that this Agreement is invalid, unenforceable,
or illegal under the antitrust, competition or trade regulation laws of the United States, the Parties agree to confer promptly
and in good faith in order to modify this Agreement to overcome such finding; provided that nothing contained therein shall be
deemed to require a Party to agree to any modification that materially affects the economic value of the transactions contemplated
hereby.

 

8.3           
No Agency. Nothing in this Agreement is intended or shall be deemed to constitute a partnership, agency, employer-employee,
or joint venture relationship between the Parties. No Party shall incur any debts or make any commitments for any other. There
is no fiduciary duty or special relationship of any kind between the Parties to this Agreement. Each Party expressly disclaims
any reliance on any act, word, or deed of any other Party in entering into this Agreement.

 

8.4           
No Further License; No Third-Party Rights. Nothing contained in this Agreement shall be construed as conferring any
right to a license or to otherwise use any patent, trademark, service name, service mark, trade dress, trade secret, or other intellectual
property belonging to any Party, except as expressly provided in this Agreement. Nothing in this Agreement is intended to confer
upon any Person, other than the Parties, any rights, remedies, obligations or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

 

8.5           
Sophisticated Parties Represented by Counsel. The Parties each acknowledge, accept, warrant and represent that (a)
they are sophisticated parties represented at all relevant times during the negotiation and execution of this Agreement by counsel
of their choice, and that they have executed this Agreement with the consent and on the advice of such independent legal counsel;
and (b) they and their counsel have determined through independent investigation and robust, arm’s-length negotiation that
the terms of this Agreement shall exclusively embody and govern the subject matter of this Agreement.

 

8.6           
Severability. If any provision of this Agreement is held to be illegal or unenforceable, such provision shall be
limited or eliminated to the minimum extent necessary so that the remainder of this Agreement will continue in full force and effect
and be enforceable. The Parties agree to negotiate in good faith an enforceable substitute provision for any invalid or unenforceable
provision that most nearly achieves the intent of such provision.

 

8.7           
Entire Agreement. The Parties acknowledge, accept, warrant and represent that (a) this is an enforceable agreement;
(b) this Agreement embodies the entire and only understanding of each Party with respect to the Sublicense, and merges, supersedes
and cancels all previous representations, warranties, assurances, communications, conditions, definitions, understandings or any
other statement, express, implied, or arising by operation of law, whether oral or written, whether by omission or commission between
and among them with respect to the foregoing subject matter of this Agreement; (c) no oral explanation or oral information by either
Party hereto shall alter the meaning or interpretation of this Agreement; (d) the terms and conditions of this Agreement may be
altered, modified, changed or amended only by a written agreement executed by duly-authorized representatives of the parties and
specifically referencing this Section 8.8; and (f) none of them (nor their respective counsel) shall be deemed to be the draftsman
of this Agreement in any action which may hereafter arise with respect to this Agreement.

 

 

 

    	 	6	 

     

    

 

[***] Indicates
portions of this exhibit that have been omitted and filed separately with the Securities and

Exchange Commission pursuant to a
request for confidential treatment.

 

EXECUTION VERSION

 

8.8           
Representations and Warranties. Each Party represents and warrants that it has the full right and authority to enter
into this Agreement on behalf of itself and all of its Affiliates and to comply with all of the terms and conditions and fulfill
all of its obligations set forth in this Agreement. Each Party shall cause all of its successors, assigns, transferees, Affiliates
and successors, assigns and transferees of its Affiliates, to comply with all of the terms and conditions of this Agreement and
to fulfill all of its obligations set forth in this Agreement, including the granting of all rights, licenses, covenants and releases
set forth in this Agreement, and each Party shall be directly liable to the other Party for any breach of this Agreement by any
of its successors, assigns, transferees or Affiliates or any successors, assigns or transferees of its Affiliates, including any
failure by any such Person to grant any right, license, covenant or release set forth in this Agreement. Except for the changes
necessary to effectuate this Agreement, the Parties acknowledge and agree that the Exclusive Agreement remains in force on its
terms.

 

8.9           
Modification: Waiver. No modification or amendment to this Agreement, nor any waiver of any rights, will be effective
unless assented to in writing by the Party to be charged, and the waiver of any breach or default will not constitute a waiver
of any other right hereunder or any subsequent breach or default.

 

8.10        
Counterparts. This Agreement may be executed in counterparts or duplicate originals, all of which shall be regarded
as one and the same instrument, and which shall be the official and governing version in the interpretation of this Agreement.
This Agreement may be executed by facsimile signatures or other electronic means and such signatures shall be deemed to bind each
Party as if they were original signatures.

 

8.11        
Notices. All notices and other communications required by this Agreement shall be in writing in the English language
and shall be deemed given if delivered personally or by facsimile transmission (receipt verified), mailed by registered or certified
mail (return receipt requested), postage prepaid, or sent by express courier service, to the Parties at the following addresses
(or at such other addresses that a Party specifies by like notice; provided, however, that notices of a change of address shall
be effective only upon written receipt thereof):

 

If to Baxalta, addressed to:

 

Shire Pharmaceuticals

300 Shire Way

Lexington, MA 02421

Attn: General Counsel

 

If to Xenetic, addressed to:

 

Xenetic Biosciences, Inc.

99 Hayden Ave

Suite 230

Lexington, MA 02421

Attn: Chief Executive Officer

 

[Signature Page Follows]

 

 

 

    	 	7	 

     

    

 

[***] Indicates
portions of this exhibit that have been omitted and filed separately with the Securities and

Exchange Commission pursuant to a
request for confidential treatment.

 

EXECUTION VERSION

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement
to be signed below by their respective duly authorized officers.

 

 

	On behalf of Xenetic Biosciences, Inc.	 	 
	 	By: 	/s/ Jeffrey F. Eisenberg
	 	 	Name: Jeffrey F. Eisenberg
	 	 	Title: Chief Executive Officer
	 	 	Date: October 27, 2017
	 	 	 
	On behalf of Baxalta Incorporated	 	 
	 	By: 	/s/ Patrick S. Eagleman
	 	 	Name: Patrick S. Eagleman
	 	 	Title: Sr. Patent Counsel
	 	 	Date: October 27, 2017
	 	 	 
	On behalf of Baxalta US Inc.	 	 
	 	By:	/s/ Patrick S. Eagleman
	 	 	Name: Patrick S. Eagleman
	 	 	Title: Sr. Patent Counsel
	 	 	Date: October 27, 2017
	 	 	 
	On behalf of Baxalta GmbH	 	 
	 	By: 	/s/ Patrick S. Eagleman
	 	 	Name: Patrick S. Eagleman
	 	 	Title: Sr. Patent Counsel
	 	 	Date: October 27, 2017

 

 

 

    	 	8	 

     

    

 

 

[***] Indicates
portions of this exhibit that have been omitted and filed separately with the Securities and

Exchange Commission pursuant to a
request for confidential treatment.

 

EXECUTION VERSION

 

Exhibit A

 

Xenetic Patents

 

[***]

 

 

 

 

 

 

 

 

 

    	 	9	 

     

    

 

 

[***] Indicates
portions of this exhibit that have been omitted and filed separately with the Securities and

Exchange Commission pursuant to a
request for confidential treatment.

 

EXECUTION VERSION

 

Exhibit B

 

“Net
Sales” shall be calculated in the same manner as [***] calculates Net Sales reported
to its shareholders and means all gross revenues, recognized in accordance with the International Financial Reporting Standards
from the sale of Licensed Product to Third Parties in the Territory, less the following deductions relating to such sales, to the
extent actually incurred, allowed, or paid:

 

		(i)	cash discounts;

 

		(ii)	reasonable estimates for chargebacks, rebates, administrative fee arrangement and similar price
concessions offered to wholesalers and other distributors, buying groups, health care insurance carriers, pharmacy benefit management
companies, health maintenance organizations, other institutions or health care organizations, or other customers directly related
to the sale of Licensed Product;

 

		(iii)	reasonable estimates for rebates or other price reductions provided, based on sales of Licensed
Product to any governmental or regulatory authority in respect of state or federal Medicare, Medicaid or similar programs; and

 

		(iv)	two percent (2.0%) of gross revenues of Licensed Product to cover operating expenses such as warehousing,
shipping, distribution, bad debt, record keeping, report preparation, insurance, freight, packing, and transportation.

 

 

 

 

 

 

 

 

 

    	 	10

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