Document:

Exhibit 10.3

 

	INFLARX -
    BDB contract - confidential information	page 1 of 30

 

CONFIDENTIAL TREATMENT REQUESTED UNDER
RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

 

[*****] INDICATES OMITTED MATERIAL
THAT IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST FILED SEPARATELY WITH THE COMMISSION. THE OMITTED MATERIAL HAS BEEN FILED
SEPERATELY WITH THE COMMISSION.

 

Co-Development Agreement

 

effective as of December 28th
2015 

(hereinafter referred to as “Agreement”)

between

lnflaRx GmbH

a corporation established under the law of Germany

Winzerlaer Strasse 2, 07745 Jena/Germany

(hereinafter referred to as “INFLARX”)

and

Beijing Defengrei Biotechnology Co.Ltd  

 

a corporation established under the law of P.R. China

36 Jinghai Er Road. BDA

Beijing 100176

P.R. China

(hereinafter referred to as “BDB”)

 

(INFLARX or BDB hereinafter also referred
to as “Party” and together as “Parties”)

 

PREAMBLE

 

		A.	INFLARX possesses certain intellectual property rights, whether patented or not, know how, material,
cell lines, drug substance, drug product, development know-how, data, etc. all related to monoclonal anti-human complement C5a
antibodies referred to as IFX-1 (as further defined within this Agreement) and further humanized versions thereof (collectively
"IFX-2" as further defined within this Agreement).

 

		B.	BDB wishes to utilize said intellectual property of INFLARX in order to manufacture, research and
develop a drug candidate (referred to and defined within this Agreement as BDB-1 and/or BDB-2) and later sell and commercialize
this inside the territory of the P.R. China.

 

		C.	INFLARX is prepared to grant to BDB appropriate rights under said intellectual property of INFLARX
to the extent necessary and under certain monetary and development requirements and other conditions set forth in this Agreement.

 

		D.	BDB on the other hand possesses intellectual property rights, know-how, technology, access to research
models etc. which may be useful for the further development of IFX-1 and/or IFX-2 by INFLARX and may, by developing INFLARX Intellectual
Property (including but not being limited to IFX-1, IFX-2 and corresponding cell lines) lead to the generation of new know-how,
data, material in any form, intellectual property, insights for use and application of IFX-1 and/or IFX-2, whether patentable or
not, and which INFLARX seeks to use, make use of, patent, pursue, commercialize, sell, license or sublicense or otherwise exploit
in any form worldwide unless otherwise specified in this Agreement.

 

		E.	BDB is prepared to grant to INFLARX appropriate rights under said intellectual property of BDB
under conditions set forth in this Agreement.

 

		F.	The Parties intend to enable by this Agreement the defined R&D collaborative and/or co-development
efforts as well as future drug development and commercialization

 

     

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efforts of
the Parties and set the rules and conditions for such co-development as in principle set forth above (hereinafter also referred
to as the “Purpose” of this Agreement).

 

		G.	The Parties further acknowledge that they have entered into an earlier agreement covering some
aspects which are related to the Purpose dated February 12th, 2014 (the “Base Agreement”) and that
by executing this Agreement the Parties wish to terminate and fully coordinate the provisions of said Base Agreement from the time
point of execution of this Agreement onwards.

 

Now, therefore, the Parties agree as
follows:

 

ARTICLE 1 —
DEFINITIONS

 

In
this Agreement, unless otherwise expressly provided, the following terms shall have meanings ascribed to them below.

 

		1.1	“Affiliates” means: (i) any person, corporation, firm, joint venture, entity
or other organization, which directly or indirectly controls either Party; or (ii) any person, corporation, firm, joint venture,
entity or other organization which is directly or indirectly controlled by either Party; or (iii) any person, corporation, firm,
joint venture, entity or other organization, which is controlled, directly or indirectly, by the ultimate parent company of either
Party. The term “control” as used herein means the possession of the power to direct or cause the direction of the
management and the policies of an entity, whether through the ownership of a majority of the outstanding voting security or by
contract or otherwise.

 

		1.2	“Applicable Laws” means all national, state and local laws and the rules, regulations,
guidances, guidelines and requirements of all competent Governmental Authorities and pharmacopoeias in effect from time to time
applicable to the activities intended under the Frame of Co-Development (as defined below), including without limitation the handling,
manufacturing, processing, packaging and quality control of any Product.

 

		1.3	“Approved Third Parties” means those Third Parties being approved by INFLARX
for secondary transfer of IFX-1 and/or the IFX-1 Cell Line within the territory of the P.R. China in accordance with Section ‎4.8ii.

 

		1.4	“Base Agreement” means the agreement between the Parties dated February 12th,
2014.

 

		1.5	“BDB-1” means a monoclonal antibody directed against the human complement factor
C5a which is being developed in full responsibility by BDB under granted rights from INFLARX inside the BDB Territory and
which is manufactured and produced using the IFX-1 Cell Line under BDB's full responsibility and which is covered in part or in
whole by the same INFLARX Intellectual Property as IFX-1.

 

		1.6	“BDB Intellectual Property” means all Intellectual Property Controlled by BDB
as of the Effective Date and during the term of this Agreement that is useful and/or necessary for the activities intended under
the Frame of Co-Development (as defined below) and/or for the further development of Products and the corresponding cell lines
by or on behalf of INFLARX. For the avoidance of doubt, any INFLARX Intellectual Property, any Intellectual Property generated
under the Base Agreement and any Intellectual Property relating to Co-Development Findings shall not be considered BDB Intellectual
Property.

 

     

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		1.7	“BDB Territory” means the territory of the P.R. China.

 

		1.8	“Business Day” means any day that is not a Saturday, a Sunday or other day on
which banks are required or authorized by Applicable Laws to be closed in Jena (Germany) or Beijing (P.R. China).

 

		1.9	“Calendar Year” means a period of 12 calendar months commencing on January 1.

 

		1.10	[*****]

 

		1.11	“Co-Development” means any development effort undertaken by either Party in
order to fulfill the Purpose of this Agreement and as set forth in the Frame of Co-Development (as defined below).

 

		1.12	“Co-Development Finding(s)”means any Know-How, scientific knowledge, data or
material in any format or form including but not being limited to development insights about potential use, manufacturing changes
and improvements, effects and side effects of use and any other Know-How, whether patentable or not, resulting from BDB's use of
the INFLARX Intellectual Property in accordance with this Agreement and from the Parties' activities within the Frame of Co-Development
and the Purpose.

 

		1.13	“Commercialization” and “Commercialize” shall refer to all
activities undertaken relating to the manufacture for commercial sale, pre-marketing, marketing, distribution and sale of a product,
and the process of Commercialization, respectively.

 

		1.14	“Confidential Information” means all secret technical and non-technical information
of any kind relating to INFLARX Intellectual Property, as well as to the BDB Intellectual Property furnished to or obtained by
a Party (hereinafter the “Receiving Party”) from the other Party (hereinafter the “Disclosing Party”)
under this Agreement or under the Base Agreement. Confidential Information shall include but not being limited to:

 

		i.	research knowledge, materials (especially antibodies), experimental work, data, amino acid or nucleic
acid sequences, cDNA libraries, plasmids, cells, cell lines, antibodies and fragments thereof, other biological substances, apparatus,
equipment, technical or animal models, proposals, specifications, manufacturing details, the Manufacturing Process, purchasing
requirements, business forecasts, business plans or financial, operational, and marketing plans, sales, agreements etc;

 

		ii.	all inventions, improvements, modifications or discoveries, whether patentable or not, unpublished
patent applications, copyrights, trade secrets;

 

		iii.	any and all Co-Development Findings which may arise out of the Co-Development, it being understood
that all Co-Development Findings are Confidential Information of INFLARX; and

 

		iv.	any textual, numerical, graphical drawing or image fixed on paper, any electronic medium, any like
media or any storage device containing such media, containing or embodying Confidential Information.

 

Any information disclosed or transferred
by the Disclosing Party will be considered Confidential Information of the Disclosing Party by the Receiving Party if such information
is marked as “Confidential” or “Proprietary”, or if the Receiving Party should know by virtue of the circumstances
in which the Receiving Party learned the information, including through visual or other inspections, audits or other inspections,

 

     

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that such information is not generally
known to the public or to anyone who is not bound to the Disclosing Party by obligations of confidentiality.

 

		1.15	“Control” or “Controlled” means with respect to any item
of information, Know-How, Patent Right or other Intellectual Property, possession of the right, whether directly or indirectly,
and whether by ownership, license or otherwise, to assign, or to grant a license or sublicense as provided for herein without violating
the terms of any agreement or other arrangement with a Third Party.

 

		1.16	“cPoC” means clinical Proof of Concept, the stage in the drug development process
where the clinical efficacy of a novel drug candidate has been verified and proven for the first time in a clinical trial in man.

 

		1.17	“Drug Approval Application” means an application for Regulatory Approval required
before commercial sale or use of a Product as a drug in a regulatory jurisdiction.

 

		1.18	“Effective Date” shall mean the date of this Agreement as set forth on the front
page.

 

		1.19	“EMA” means the European Medicines Agency or any successor Governmental Authority
with responsibility for regulating the development, manufacture and sale of human pharmaceutical products.

 

		1.20	“Exploit” or “Exploiting” means to research or have researched,
develop or have developed, register or have registered in its own name, patent or have patented in its own name, modify or have
modified, enhance or have enhanced, improve or have improved, manufacture or have manufactured, hold or keep or have held and kept
(whether for disposal or otherwise), formulate or have formulated, optimize or have optimized, import or have imported, export
or have exported, transport or have transported, distribute or have distributed, offer for sale or have offered for sale, promote
or have promoted, market or have marketed, sell or have sold or otherwise commercialize or have commercialized a product or process.
“Exploitation” means the act of Exploiting a product or process.

 

		1.21	“FDA” means the United States Food and Drug Administration of the Department
of Health and Human Services, or any successor Governmental Authority with responsibility for regulating the development, manufacture
and sale of human pharmaceutical products.

 

		1.22	“First Commercial Sale” means the initial transfer of a Product by or on behalf
of either Party or its Affiliates, or Sub-Licensees to a Third Party distributor or end user customer in exchange for cash or some
equivalent to which value can be assigned in any country pursuant to a Regulatory Approval and after all other applicable approvals
required to market and sell Product, including pricing and reimbursement approvals, have been granted, or otherwise permitted,
by the Governmental Authorities of such country.

 

		1.23	“GCP” shall mean all current laws and regulations established for Good Clinical
Practice i.e. those established within the International Conference on Harmonization of Technical Requirements for Registration
of Pharmaceuticals for Human Use (CPMP/ICH/135/95) Harmonized Tripartite Guideline for Good Clinical Practice as amended from time
to time and the principles set out in the Declaration of Helsinki as revised from time to time and any equivalent or relating regulatory
requirements inside the territory of the P.R. China.

 

		1.24	“GMP” shall mean all current laws and regulations related to Good Manufacturing
Practices as specified in Directive 2003/94/EEC, the Guidelines to Good Manufacturing

 

     

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Practice of
Medicinal Products for Human and Veterinary Use of the European Union and the US Code of Federal Regulations, Title 21, Chapter
I, Parts 210 and 211 as well as the ICH Q7 Guideline, as well as any respective Chinese regulations pertaining to the matter.

 

		1.25	“Governmental Authority” means any court, agency authority, department, regulatory
body or other instrumentality of any government or country or of any national, federal, state, provincial, regional, county, city
or other political subdivision of any such government or any supranational organization of which any such country is a member.

 

		1.26	[*****]

 

		1.27	“IFX-1” means a specific monoclonal antibody directed against the human complement
factor C5a which is being developed and manufactured by INFLARX or on behalf of INFLARX and which is produced in the IFX-1 Cell
Line and which is defined by a related antibody sequence (the “IFX-1 Sequence” as detailed within the Attachment
I).

 

		1.28	“IFX-1 Cell Line” means the Chinese Hamster Ovarian (CHO) Cell Line producing
lFX-1 which has been generated on behalf of INFLARX by [*****] and which is owned by INFLARX (after initiation of a contractually
defined sale process) and which may contain or require for use Intellectual Property, whether patented or not, owned by [*****]
and appropriately granted to INFLARX. Within this Agreement, the term IFX-1 Cell Line shall also be used and understood as relevant
cell line for manufacturing BDB-1.

 

		1.29	“IFX-2 and BDB-2” means any monoclonal antibody directed against the human complement
factor C5a which is being derived from the underlying gene sequence of IFX-1 by any type of humanization effort and which is not
developed or manufactured by use of the IFX-1 Cell Line. Such antibody may be generated by the underlying gene sequences as detailed
in Attachment II or other gene sequences which are substantially similar to the gene sequence of lFX-1 [*****], whereas
the term IFX-2 shall be reserved for any development and use of such antibody by or on behalf and under responsibility of INFLARX
and the term BDB-2 shall be reserved for any development and use of such antibody by and under responsibility of BDB.

 

		1.30	“IFX-2 Cell Line and BDB-2 Cell Line” shall be defined as any corresponding
cell line developed by the respective Party to manufacture lFX-2 or BDB-2.

 

		1.31	“Indication” means any disease or condition for which a Product can be used
to treat or prevent, which use is the subject of a separate Drug Approval Application and/or of a separate Regulatory Approval
process. For the avoidance of doubt, all sub-classes of a main-class of disease shall be treated only as one and the same Indication.

 

		1.32	“INFLARX Inspection Rights” has the meaning as defined in Section ‎4.7.

 

		1.33	“INFLARX Intellectual Property” means the INFLARX Patent Rights and all other
Intellectual Property that is Controlled by INFLARX at the Effective Date or during the term of this Agreement and that relates
to the IFX-1 Cell Line and/or IFX-1 and/or IFX-2 and/or any IFX-2 Cell Line as well as BDB-1, BDB-2 and/or any BDB-2 Cell Line.
For the avoidance of doubt, all Intellectual Property generated under the Base Agreement

 

     

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and all Intellectual
Property with respect to Co-Development Findings is INFLARX Intellectual Property.

 

		1.34	“INFLARX Patent Rights” means all Patent Rights Controlled by INFLARX at the
Effective Date or during the term of this Agreement and relating to IFX-1, IFX-2, IFX-1 Cell Line and/or IFX-2 Cell Line and/or
BDB-1, BDB-2 and/or BDB-2 Cell Line, including without limitation the international patent application with the title [*****]

 

		1.35	“INFLARX Territory” means all countries of the world except the territory of
the P.R. China.

 

		1.36	“Intellectual Property” or “IP” means any and all legally
established rights in and to ideas, inventions, discoveries, Know-How, data, databases, documentation, reports, materials, writings,
designs, computer software, processes, principles, methods, techniques and other information, including Patent Rights, trade secrets,
trademarks, service marks, trade names, registered designs, design rights, copyrights (including rights in computer software and
database rights), domain names and any rights or property similar to any of the foregoing in any part of the world arising under
statutory or common law, whether or not perfected and whether registered or not, together with the right to apply for the registration
of any such rights.

 

		1.37	“Know-How” means any information, records, chemical structure information, methods,
techniques, processes, discoveries, inventions, innovations, unpatentable processes, specifications, recipes, formulae, designs,
plans, documentation, drawings, data and other technical information and data which is secret and not in the public domain, particularly
not disclosed in a Patent Right, and identified or identifiable in a tangible form, including, without limitation of the foregoing,
biological, chemical, pharmacological, toxicological, preclinical and clinical information, materials and data as well as information,
data and specifications regarding manufacturing processes, formulation, quality control, sourcing and testing, and related know-how
and trade secrets.

 

		1.38	“Manufacturing Process” means the entire process necessary for manufacturing
of IFX-1 and/or BDB-1 with the underlying cell line, including materials and media used, data and development reports, batch production
records and CMC documents of any kind, up-stream and downstream processes, viral clearance procedures, formulation, filling, packaging,
handling of drug substance and drug product and other processes as maybe involved and necessary to manufacture drug substance and
final drug product (filled, packaged and labeled and ready to use) and release the same for any application

 

		1.39	“Net Sales” means the gross amount invoiced by the relevant Party, its Affiliates
or Sub-Licensees for sales of a Product to unaffiliated Third Parties less the following deductions:

 

		i.	[*****] of gross amount for transportation, freight insurance, distribution, packing and handling;

 

		ii.	sales and excise taxes or customs duties paid by the relevant Party, its Affiliates or Sub-Licensees
or any other governmental charges imposed upon the sale of a Product and paid by the relevant Party, its Affiliates or Sub-Licensees;

 

     

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		iii.	rebates and premiums granted or allowed by the relevant Party, its Affiliates or Sub Licensees
in connection with the sale of a Product;

 

		iv.	allowances or credits granted by the relevant Party, its Affiliates or Sub-Licensees to customers
on account of governmental requirements, rejection, outdating, returns, billing errors or recalls of a Product; and

 

		v.	trade, cash and quantity discounts, bonuses or chargebacks granted by the relevant Party, its Affiliates
or Sub-Licensees in connection with the sale of a Product.

 

For the purpose of calculating
Net Sales, the Parties recognize that: (a) customers may include persons in the chain of commerce who enter into agreements with
the relevant Party, its Affiliates or Sub-Licensees as to price even though title to the Product does not pass directly from the
relevant Party, its Affiliates or Sub-Licensees to such customers and even though payment for such Product is not made by such
customers directly to the relevant Party, its Affiliates or Sub-Licensees; and (b) in such cases, chargebacks paid by the relevant
Party, its Affiliates or Sub-Licensees to or through a Third Party (such as a wholesaler) can be deducted by the relevant Party,
its Affiliates or Sub-Licensees from gross revenue in order to calculate Net Sales. Furthermore, for the purpose of calculating
Net Sales the deductions referred to under iii. and v. shall not exceed the upper threshold common in the relevant market of competitive
Products; in the case of dispute the Party obliged to royalty payments shall prove that the amount of the relevant deductions are
common in the relevant market.

 

		1.40	“Patent Rights” means (a) all national, regional
and international patents and patent applications, including provisional patent applications, (b) all patent applications filed
either from such patents, patent applications or provisional applications or from an application claiming priority from either
of these, including divisionals, continuations, continuations-in-part, provisionals, converted provisionals, and continued prosecution
applications, (c) any and all patents that have issued or in the future issue from the foregoing patent applications ((a) and (b)),
including utility models, petty patents and design patents and certificates of invention, (d) any and all extensions or restorations
by existing or future extension or restoration mechanisms, including revalidations, reissues, re-examinations and extensions (including
any supplementary protection certificates and the like) of the foregoing patents or patent applications ((a), (b) and (c)), and
(e) any similar rights, including so-called pipeline protection, or any importation, revalidation, confirmation or introduction
patent or registration patent or patent of additions to any such foregoing patent applications and patents.

 

		1.41	“Phase II Clinical Trials” shall mean a clinical
trial in human patient population to explore the therapeutic efficacy and to determine the safe and effective dose range in the
proposed therapeutic Indication as more fully described in the ICH Harmonized Tripartite Guideline entitled “General Considerations
for Clinical Trials E-8”, as amended .

 

		1.42	“Product” means any medicinal product containing
IFX-1 or IFX-2 or BDB-1 or BDB-2 as at least one (1) active pharmaceutical ingredient.

 

		1.43	“Regulatory Approval” means with respect to a
regulatory jurisdiction, any and all approvals, product and/or establishment licenses, registrations or authorizations of any Governmental
Authority, including without limitation the SFDA, the EMA and the FDA, necessary for the use (including in a clinical trial), storage,
import, export, transport and Commercialization of a Product in such regulatory jurisdiction, including, where applicable, (a)
pricing and reimbursement approval in such regulatory jurisdiction, (b) pre- and post-approval marketing authorizations (including
any prerequisite 

 

     

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manufacturing
approval or authorization related thereto), (c) labeling approval and (d) technical, medical and scientific licenses.

 

		1.44	“SFDA” means the Chinese State Food and Drug Administration, or any successor
Governmental Authority with responsibility for regulating the development, manufacture and sale of human pharmaceutical products.

 

		1.45	“Sub-Licensee” means a Third Party to whom INFLARX granted a license or respectively
sub-license under its rights reserved under Section ‎6.5 and Section ‎6.7 after execution of said reserved
rights.

 

		1.46	“Third Party” means any entity other than the Parties or any Affiliate of either
Party.

 

ARTICLE 2 —
Scope of this Agreement/ Frame of Co-Development

 

		2.1	Scope of this Agreement / Further agreements. The Parties understand that this Agreement
sets the frame and principle understanding between the Parties in order to fulfill the Purpose but it may not fully cover all aspects
of such future development. The Parties understand that additional future contractual work and agreements may be necessary to fully
cover aspects of future development, including but not limited to aspects of clinical development, manufacturing or Commercialization
or others. The Parties therefore agree that they will jointly work together in good faith on such future contractual agreements
as may be deemed appropriate or wished for by either Party, it being understood that the principle frame and conditions set forth
in this Agreement are binding and shall be fully reflected in any such future agreements unless agreed differently in writing by
both Parties.

 

		2.2	Frame of Co-Development. The Parties hereto agree that in order to serve and fulfill the
Purpose of this Agreement, the Parties shall engage in the following Co-Development steps and conditions, of which some or all
are further specified and conditional to defined terms as set forth in detail elsewhere in this Agreement:

 

		i.	[*****]

 

		ii.	BDB shall appropriately handle and store the IFX-1 Cell Line under its strict oversight, create
a master- or working cell bank and develop and build the Manufacturing Process according to GMP standards either by itself or together
with Approved Third Parties inside the BDB Territory in order to manufacture GMP standard drug product BDB-1 solely to be used
for defined development and later Commercialization inside the BDB Territory in accordance with further detailed obligations as
set forth in this Agreement and under its sole and full responsibility.

 

		iii.	BDB may develop and generate under its sole and full responsibility a BDB-2 Cell Line only inside
the BDB Territory, create a master- or working cell bank and develop and build the Manufacturing Process according to GMP standards
and manufacture GMP standard drug product BDB-2 solely for the purpose to develop and Commercialize BDB-2 solely within and for
the BDB Territory. INFLARX shall have the right to Exploit such BDB-2 Cell Line under its own responsibility to develop, manufacture
and Commercialize IFX-2 anywhere in

 

     

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the INFLARX
Territory and BDB shall assist and transfer appropriate amounts of material (i.e. vials of the BDB-2 Cell Line etc.) to INFLARX
to enable such Exploitation.

 

		iv.	BDB shall conduct pre-clinical animal and in vitro studies inside the BDB Territory using IFX-1
(to be transferred separately to BDB by INFLARX under the terms of this Agreement) and/or BDB-1 and/or IFX-2 and/or BDB-2, and
BDB shall promptly share all related Co-Development Findings and ensure data sharing with INFLARX and put in place reporting tools
for all development areas.

 

		v.	BDB shall conduct clinical trials using BDB-1 and/or BDB-2 in compliance with all Applicable Laws,
including GCP and with the provisions of this Agreement inside the BDB Territory and ensure data sharing with INFLARX and put in
place reporting tools and potentially necessary data exchange agreements with INFLARX as may be deemed appropriate by INFLARX.

 

		vi.	BDB shall be granted appropriate usage rights under lNFLARX Intellectual Property to the extent
necessary for development, manufacture and Commercialization of BDB-1 and BDB-2 solely inside the BDB Territory and pay in return
royalties to INFLARX as set forth in this Agreement.

 

		vii.	INFLARX shall be granted and/or transferred exclusive Exploitation rights and ownership in all
Co-Development Findings by BDB and shall be granted usage rights under BDB Intellectual Property to the extent necessary or useful
to Exploit the rights set forth in this Agreement.

 

		viii.	The Parties shall cooperate and help in putting in place appropriate more detailed agreements if
needed from either side or if useful for successful development and Commercialization of BDB-1 and/or BDB-2 by BDB within the BDB
Territory and of IFX-1 and/or IFX-2 by lNFLARX.

 

		ix.	Unless agreed differently between the Parties in writing, each Party shall fully cover its own
costs and expenses and have sole and full responsibility for any of its own Co-Development effort and activity agreed in this Agreement.

 

		x.	BDB shall in no event make or engage any Third Party in making additional changes, alterations
or any humanization efforts of any kind to IFX-1, BDB-1 and/or IFX-2 and/or BDB-2 and/or the IFX-1 Cell Line and/or IFX-2 Cell
Line and/or the BDB-2 Cell Line unless agreed expressly differently between the Parties in writing.

 

These Co-Development steps and
conditions shall collectively be understood as the “Frame of Co-Development” which will be conditional to the
terms and provisions set forth in this Agreement and shall solely serve the Purpose of this Agreement. The Parties agree that the
development of any combination therapy involving IFX-1, IFX-2, BDB-1 or BDB-2 as active pharmaceutical ingredient is not part of
the Frame of Co-Development and shall be excluded from the grant of any rights to BDB under this Agreement; the Parties may agree
on development of such combination therapies in a separate agreement or addendum to this Agreement.

 

		2.3	Coordination of Co-Development. The Parties understand that for the time being the Co-Development
can be reasonably coordinated through the reporting in accordance with Article 5. If either Party at a certain stage of Co-Development
deems it useful or necessary for coordination of the Parties development activities to install a Joint Development Committee, the
Parties shall establish such Joint Development

 

     

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Committee with
members having the necessary scientific and regulatory skills with respect to the relevant stage of development and shall agree
on competence and governance rules of such Joint Development Committee.

 

		2.4	Coordination with Base Agreement. The Parties agree that the Base Agreement shall terminate
at the Effective Date. Articles 5, 8, 9 and 10.5 of the Base Agreement shall survive its termination. The Parties further agree
that any materials provided by INFLARX to BDB under the Base Agreement shall be further handled in accordance with the relevant
provisions regarding such material transfer under this Agreement. The Parties understand and agree that all “Research Findings”
as this term is defined in the Base Agreement shall be Confidential Information of INFLARX under this Agreement and all “Confidential
Information” as this term is defined under the Base Agreement and which were exchanged by the Parties under the Base Agreement
shall be and treated as Confidential Information under this Agreement. For the avoidance of doubt, all rights in the “Research
Findings” as this term is defined in the Base Agreement shall be INFLARX Intellectual Property under this Agreement.

 

ARTICLE 3 —
Transfer of Cell Line

 

		3.1	Transfer. Under the conditions and terms set forth within this Agreement and conditional
to the receipt of the [*****] (as defined below) by [*****] from BDB and receipt of the [*****] by INFLARX from [*****], INFLARX
shall request that [*****] makes 22 vials containing aliquots from the master cell bank of the IFX-1 Cell Line which is currently
stored at [*****], available to INFLARX for further shipment to BDB (hereinafter referred to as the “Transfer”).
The Transfer shall take place under the following conditions and terms:

 

		i.	upon [*****] (as defined below) from BDB and [*****] by INFLARX from [*****], INFLARX shall in
due course furnish a written transfer request to [*****] and obtain approval for the Transfer ;

 

		ii.	upon receipt of approval from [*****] by INFLARX, BDB shall provide the vendor and shipment details,
as well as process details and all necessary documents to INFLARX for the Transfer;

 

		iii.	BDB understands and agrees that it will cover all costs for shipment to BDB as well as any associated
risk for the Transfer once shipment has left [*****] premises and that it may seek insurance coverage for the Transfer if deemed
appropriate; for the avoidance of doubt, neither INFLARX nor [*****] is obliged to furnish any replacement if any or all of the
22 vials containing aliquots from the master cell bank of the IFX-1 Cell Line are destroyed during the shipment or are not viable
upon receipt by BDB.

 

		3.2	[*****]

 

     

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[*****]

 

If and to the extent that INFLARX
is held liable for payment of any taxes, duties or other amounts by any Governmental Authority of any country with respect to the
[*****] and/or in connection with this indemnification and reimbursement obligation of BDB, BDB shall indemnify and hold INFLARX
harmless from and reimburse to INFLARX any such amount assessed against INFLARX (and/or paid by INFLARX).

 

		3.3	Transfer of IFX-1. INFLARX may, from time to time as may be agreed between the Parties,
transfer IFX-1, which may or may not have been manufactured according to GMP standards or GMP equivalent standards under INFLARX'
responsibility and oversight. Any quantity of IFX-1 transferred by INFLARX to BDB may be used by BDB solely to serve the Purpose
of this Agreement, in the BDB Territory and to foster the development of BDB-1 within the BDB Territory. BDB shall under no circumstances
use IFX-1 for any application in humans and treat IFX-1 strictly confidential and not transfer IFX-1 to any Third Party without
the express prior written consent from INFLARX.

 

ARTICLE 4 —
BDB Use of the IFX-1 Cell Line, IFX-1, BDB-1, BDB-2 Cell Line, BDB-2 and IFX-2 and IFX-2 Cell Line

 

		4.1	BDB's Right to Use the IFX-1-Cell Line. INFLARX hereby grants to BDB an exclusive right
to use the IFX-1 Cell Line solely within the BDB Territory and solely for the Purpose and the Co-Development under this Agreement
and subject to compliance of BDB with all terms and conditions set forth in this Agreement. BDB hereby accepts this grant. INFLARX
reserves the right to develop and/or manufacture IFX-1 and Products containing IFX-1 inside the BDB Territory with a Third Party
solely for the purpose of Exploitation and Commercialization of such IFX-1 or such Product containing IFX-1 in the INFLARX Territory,
and reserves the right to use the IFX-1 Cell Line within the BDB Territory for other non-commercial purposes.

 

		4.2	INFLARX and [*****] Intellectual Property. BDB acknowledges and understands that
the IFX-1 Cell Line represents INFLARX Intellectual Property which was manufactured by [*****] based on at least in part [*****]
proprietary technology and Intellectual Property, including but not limited to the [*****], and that nothing in this Agreement
is meant to transfer to BDB any [*****] or any rights in the [*****] nor any INFLARX Intellectual Property unless expressly provided
differently within this Agreement.

 

		4.3	Use of the IFX-1 Cell Line. BDB shall use the IFX-1 Cell Line solely within the Frame of
Co-Development and in order to fulfill the Purpose: Such use shall solely include and be limited to the development and implementation
of a Manufacturing Process for the manufacturing of BDB-1 for developing (pre-clinical and clinical), testing, seeking Regulatory
Approval for Commercialization of BDB-1 within the BDB Territory, all being conditional to any relevant term and obligation set
forth in this Agreement. BDB expressly agrees and acknowledges that the Transfer to BDB shall not be construed as a license or
as permission to (A) independently make, utilize or copy the [*****] or (B) modify or derive portions of the IFX-1 Cell Line for
the development of any other cell line or product.

 

		4.4	Monitoring by INFLARX and [*****]. BDB hereby grants to INFLARX and to [*****] the
right to monitor BDB and any of its Approved Third Parties for compliance with the Sections ‎4.3(A)
and ‎4.3(B). This right to monitor includes any reasonable measure

 

     

    	INFLARX - BDB contract - confidential information	page 12 of 30

 

    

considered necessary
by INFLARX and/or [*****], including without limitation the right to request and receive documents and the right to inspect the
premises of BDB and any of its Approved Third Parties. Any involvement of an Approved Third Party by BDB shall be conditioned on
the prior assurance that such Approved Third Party will respect and comply with INFLARX' and [*****] monitoring right. [*****]

 

		4.5	Quality Adherence and BDB Oversight. BDB undertakes and warrants to INFLARX that it will
strictly adhere to any applicable GMP, GCP or other Applicable Laws when storing, handling, manufacturing, developing, Commercializing
or otherwise using the IFX-1 Cell Line, IFX-1 or BDB-1, any IFX-2 Cell Line, IFX-2, any BDB-2 Cell Line and BDB-2 and that it will
ensure any of its Approved Third Parties to strictly comply with such Applicable Laws as well. BDB shall have the sole responsibility
to establish and ensure strict oversight of any and all use and quality adherence of the IFX-1 Cell Line or parts thereof as well
as IFX-1, BDB-1 or parts thereof, as well as any future BDB-2 Cell Line and BDB-2 or any parts thereof as well as any IFX-2 Cell
Line and IFX-2 or parts thereof within the BDB Territory and shall keep complete and up-to-date records about such oversight. Such
oversight records shall establish for each of the above mentioned components the exact storage place, storage conditions, amount
and handling responsibility, reasons for transfer and all other information reasonably required for proving compliance as set forth
herein and shall also include any audit and inspections reports and certificates of any Approved Third Party. A copy of such oversight
records shall be furnished in copy to INFLARX within [*****] upon request at any time.

 

		4.6	Quality Agreements. BDB undertakes to execute with INFLARX, upon the latter request, appropriate
quality assurance agreements including but not limited to aspects of oversight, clarification of responsibilities, handling, storage
and manufacturing conditions, clinical trial aspects, reporting of incidences and adverse events/reactions etc., safety data exchange
agreements or pharmacovigilance agreements as may be deemed appropriate or useful by INFLARX in order to assure adherence to applicable
external or internal quality regulations or guidelines and to Applicable Laws which may be applicable to INFLARX.

 

		4.7	lNFLARX Inspection Rights. BDB acknowledges that INFLARX may need to keep global oversight
over any and all manufacturing and developing efforts regarding the IFX-1 Cell Line and that lNFLARX may be liable or otherwise
bound by regulatory requirements under any Applicable Laws or any order or decision of a competent Governmental Authority to ensure
such global oversight and adherence to quality regulations or guidelines and Applicable Laws (including without limitation GMP
and GCP). Therefore, BDB shall cooperate with and assist INFLARX in any reasonable way to ensure such oversight and to ensure that
lNFLARX is able to fulfill its legal and/or regulatory responsibilities. BDB hereto agrees that INFLARX and any of its successors
with respect to the rights granted under this Agreement to BDB, as well as any competent Governmental Authority, including but
not limited to the FDA and the EMA, the German or other European Governmental Authorities or other Governmental Authorities that
are in charge of inspections of INFLARX manufacturing or development programs or Regulatory Approvals of any form with respect
to IFX-1 and/or IFX-2 shall have the right to audit and inspect BDB, its facilities, its documentation and its adherence to quality
regulations or guidelines and any other Applicable Laws (collectively understood as “INFLARX Inspection Rights”).
BDB shall contractually ensure that any Approved Third Party as defined under Section ‎4.8
of this Agreement shall be obligated to grant the INFLARX Inspection Rights to the same extent.

 

     

    	INFLARX - BDB contract - confidential information	page 13 of 30

 

    

		4.8	Secondary Transfer of the IFX-1 Cell Line, IFX-1, IFX-2 Cell Line, IFX-2. BDB-1, BDB-2 Cell
Line and BDB-2. The following rules shall apply for any transfer of the IFX-1 Cell Line, IFX-1 and BDB-1 as well as the IFX-2
Cell Line and IFX-2 and the BDB-2 Cell Line and BDB-2 outside the primary direct control and the premises of BDB:

 

		i.	BDB shall under no circumstances transfer the IFX-1 Cell Line, IFX-1 and BDB-1 or any part thereof
or the IFX-2 Cell Line or IFX-2 or any part thereof or the BDB-2 Cell Line or BDB-2 or any parts thereof outside the BDB Territory
unless expressly authorized previously by INFLARX in writing.

 

		ii.	Inside the BDB Territory, BDB shall not transfer, store, develop or otherwise use the IFX-1 Cell
Line and IFX-1 or any part thereof or the IFX-2 Cell Line or IFX-2 or any part thereof to any facility, manufacturer, company,
entity, person or institution of any kind or any other Third Party without the express prior written consent from INFLARX. If BDB
wishes to transfer the IFX-1 Cell Line or IFX-1 or any parts thereof or the IFX-2 Cell Line or IFX-2 or any part thereof to any
Third Party inside the BDB Territory, BDB shall request consent from INFLARX for such transfer in writing and inform INFLARX within
this request in detail about (a) the exact place of business of such Third Party, (b) the exact location of storage and location
of use and manufacture, (c) the exact purpose and conditions for such transfer and amount transferred, (d) confirmation of such
Third Party that it will adhere to GMP, GCP or any other Applicable Laws and that it will protect the INFLARX Intellectual Property
and any parts thereof from any unauthorized access and to grant INFLARX and [*****] monitoring rights at least to the extent as
set forth in Section 4.4 and to grant the INFLARX Inspection Rights. INFLARX shall, upon review of completeness of such request,
issue consent for such secondary transfer (the entire procedure shall be collectively understood as “Transfer Consent”
and any Third Party consented to gain access as “Approved Third Party”). Such Transfer Consent shall be granted
in writing by an INFLARX authorized representative within 7 Business Days upon receipt of INFLARX of a complete request for a Transfer
Consent and shall not be unreasonably withheld. INFLARX shall not be obliged to issue any Transfer Consent if the request of BDB
is not complete, or if the purpose for any collaboration stated within the request falls outside the Purpose and the Frame of Co-Development
as set forth in this Agreement.

 

		iii.	Inside the BDB Territory, BDB may transfer BDB-1 and or BDB-2 and or the BDB-2 Cell Line to designated
Third Parties solely to fulfill the Purpose of this Agreement and within the Frame of Co-Development. BDB shall strictly document
any such transfer, including the purpose, the amount and detailed description of transferred material and furnish to INFLARX a
copy of such documentation within 10 Business Days thereafter. BDB shall also notify INFLARX about any such transfer within the
quarterly reports. BDB shall only arrange for any such transfer if strict rules for confidentiality and safe handling and prohibition
of further transfer and granting access to other Third Parties are in place substantially similar to the ones set forth in this
Agreement.

 

		4.9	Manufacturing of BDB-1 and BDB-2. BDB and its Approved Third Parties shall manufacture BDB-1
and or BDB-2 using the IFX-1 Cell Line or any BDB-2 Cell Line under their sole and full responsibility and under strict compliance
with GMP, GCP and other Applicable Laws as may be applicable for the BDB Territory and shall ensure that INFLARX is informed in
detail about the Manufacturing Process.

 

		4.10	Use in Humans. The following rules and conditions shall apply for any use of IFX-1 or BDB-1
or BDB-2 or parts thereof in humans:

 

     

    	INFLARX - BDB contract - confidential information	page 14 of 30

 

    

		i.	BDB warrants that it will not use any transferred IFX-1 for any application in humans.

 

		ii.	BDB warrants that it will not and will assure that any Approved Third Party will not use, apply
or administer BDB-1 or BDB-2 or any part thereof in/to humans unless all required Regulatory Approvals and consents of any competent
Governmental Authority, including without limitation of the SFDA, and of any ethics committee have been obtained previously and
that it will conduct any clinical application using BDB-1 or BDB-2 under strict GCP compliance and compliance with other Applicable
Laws.

 

		iii.	Before BDB engages in any first clinical application of BDB-1 or BDB-2 in humans it shall consult
with INFLARX at least [*****] before submission of the respective Regulatory Approval application whether INFLARX needs any quality
assurance agreement, safety data exchange agreements and/or pharmacovigilance agreements to be put in place and INFLARX shall furnish
a written decision about this question within [*****] upon receipt of the request. If no decision has been made and communicated
by INFLARX to BDB whether any of such agreements should be concluded on [*****] after receipt of such notice from BDB, then BDB
may proceed with submission of its application for the relevant Regulatory Approval. If INFLARX establishes the need for such agreements
upon receipt of such notice from BDB or before, then BDB shall fully cooperate to execute such additional agreements and put in
place related documents and procedures.

 

		iv.	Before any application of BDB-1 and BDB-2 in humans in any form, BDB shall notify INFLARX at the
earliest possible time point but in any case at least [*****] before any document submission for application for a respective Regulatory
Approval to the respective Chinese authorities, including without limitation the SFDA and the competent ethic committee about the
purpose of such use and the intended frame (i.e. clinical trial phase X) in English language: including a complete outline of the
study detailing the Indication, the inclusion and exclusion criteria as well as the intended primary and secondary or other endpoints
as well as the regulatory status (collectively the “Use In Human Announcement”). INFLARX shall acknowledge receipt
of such Use in Human Announcement via email within [*****] upon receipt and be granted a [*****] time frame ·upon receipt
to consult with BDB and comment on such development effort also with respect to its own development efforts in similar or substantially
same areas of Indication it being understood that “substantially same areas of Indications” are concerned if there
is an overlap in targeted sub-groups of patients in the Indications pursued in development of the Parties.

 

		4.11	Use in Animals. The following rules and conditions shall apply for any use of IFX-1 or IFX-2
or BDB-1 or BDB-2 or parts thereof in animals:

 

		i.	BDB shall not apply IFX-1 or BDB-1 or BDB-2 or any parts thereof to animals unless all required
Regulatory Approvals and consents of any competent Governmental Authority and of any ethics committee have been obtained previously.

 

		ii.	Within a reasonable time frame before any and each use of IFX-1 or IFX-2 or BDB-1 or BDB-2 in primates
or other monkeys, BDB shall deliver to INFLARX a written report about the purpose of such use and the intended frame including
a study synopsis. INFLARX shall acknowledge receipt of such notice or report

 

     

    	INFLARX - BDB contract - confidential information	page 15 of 30

 

    

ARTICLE 5 —
BDB Reporting Obligations

 

		5.1	BDB Reporting. BDB shall establish a regular reporting in English language to be delivered
to INFLARX quarterly by email (within [*****] after each quarter passed - i.e. until [*****] for Q1, until [*****] for Q2 and until
[*****] for Q3 of the same year and until [*****] for Q4 of the preceding Calendar Year) and which shall summarize its development
progress and efforts according to the different areas of development: manufacturing (including any progress and change in the Manufacturing
Process, and its results in terms of protein yield and quality), pre-clinical development (any data pertaining to in vitro, in
vivo experimental analysis of BDB-1, IFX-1 and BDB-2), clinical development (any planned and conducted clinical trial, reports,
analysis etc. related to BDB-1 and or BDB-2), regulatory (any regulatory consultation and its results with respect to any and all
aspects of the BDB-1 and or BDB-2 development in the BDB Territory), strategic (any strategic considerations, plans and conduct
pertaining to the use of BDB-1 within the BDB Territory within pre-clinical and clinical studies and other development), commercial
and sales (any relevant sale and commercial plans, figures, considerations, pricing issues etc.), other areas (other development
aspects not captured within any of the above mentioned areas). In addition, BDB shall report and furnish to INFLARX in English
language the up to date version of the lnvestigational Medicinal Product Dossier (“IMPD”) or parts thereof and
study synopsis within [*****] upon written request (email sufficient).

 

		5.2	Reporting of Clinical Trial Data. Before document submission for Regulatory Approval of
any application of BDB-1 and or BDB-2 in humans in any clinical trial, BDB shall make a Use in Humans Announcement to INFLARX as
set forth in Section ‎4.10. BDB shall be responsible for informing INFLARX without undue delay about any of the following
events within any active clinical trial:

 

		·	Any regulatory decision regarding a trial (approval, stop, change etc.)

		·	FPFV = First Patient First Visit

		·	Any results from a planned interim analysis

		·	Any results from a planned and unplanned interim safety review

		·	Any substantial change in the study protocol / substantial amendment

		·	IDMC — Recommendations = Independent data monitoring committee recommendations

		·	LPLV = Last Patient Last Visit

		·	Data availability upon un-blinding

 

BDB agrees hereby that INFLARX
shall be granted access to any and all data recorded within the clinical trial, including but not being limited to raw data, for
calculation of any endpoints without undue delay upon closure of the data base and un-blinding of any clinical trial and that INFLARX
shall be furnished copies of such data upon request. BDB shall furnish to INFLARX without undue delay and without further request
the final study report including all appendices and line listings and any other attached or referenced data in English language.
INFLARX shall be entitled to use such report and raw data for its own development programs and benefit and, if applicable, also
for discussions with competent Governmental Authorities and for application for Regulatory Approvals. Without prejudice to the
aforementioned usage rights, INFLARX shall handle any and all such data under strict confidentiality and in accordance with Applicable
Laws.

 

BDB shall ensure
that such use of clinical trial data by INFLARX shall be openly declared to patients participating in any clinical trial and to
the respective Governmental Authorities and ethics committees in charge of approving the respective clinical trial. As such, data
use and handling by INFLARX shall expressly be addressed within and be

 

     

    	INFLARX - BDB contract - confidential information	page 16 of 30

 

    

part of the informed consent sheet,
the approval documents, the data safety handling sheet or any other applicable or equivalent sheet.

 

ARTICLE 6 —
Intellectual Property/ Handling of Co-Development Findings

 

		6.1	Ownership. Nothing in this Agreement is meant and shall be construed to transfer ownership
of or title to any INFLARX Intellectual Property to BDB or any existing BDB Intellectual Property to INFLARX unless explicitly
stated differently in this Agreement

 

		6.2	BDB-1 and BDB-2 Development and Commercialization Rights. INFLARX grants to BDB the exclusive,
non-transferrable right under the INFLARX Intellectual Property to develop, to manufacture for development and to Commercialize
BDB-1 and BDB-2 solely within and for the BDB Territory. BDB hereby accepts this grant. For the avoidance of doubts, this exclusive
right of BDB is subject to INFLARX' rights set forth in Sections ‎6.6 and ‎6.7. BDB's right granted under
this Section ‎6.2 shall be conditional to performance of any and all obligations BDB and subject to terms and conditions
set forth in this Agreement. BDB shall bear all related costs and risks for such development and manufacture for development and
Commercialization of BDB-1 and BDB-2 within the BDB Territory. BDB is not entitled to grant sub-licenses to any Third Party.

 

BDB shall not use the term IFX-1
or IFX-2 for its own development programs. The term IFX-1 and IFX-2 shall be reserved for the INFLARX development only. Furthermore,
BDB shall not use the same or confusingly similar product names as INFLARX uses for its Products containing IFX-1 or IFX-2 for
Commercialization of Products containing BDB-1 or BDB-2.

 

		6.3	Non-exclusive License under BDB Intellectual Property to INFLARX. BDB hereby grants to INFLARX
a non-exclusive, transferable and sublicenseable right of use under all BDB Intellectual Property to the extent necessary to Exploit
and Commercialize IFX-1 and/or IFX-2 within the INFLARX Territory. INFLARX hereby accepts this license grant._lf and to the extent
INFLARX exercises its reserved right to Exploit and Commercialize BDB-1 or BDB-2 within the INFLARX Territory pursuant to Section
‎6.5, this non-exclusive license under BDB Intellectual Property shall automatically also cover such Exploitation and
Commercialization of BDB-1 and BDB-2 by INFLARX. If and to the extent INFLARX exercises its optional development right to Exploit
and Commercialize IFX-1 or IFX-2 in any Indication pursuant to Section ‎6.7, this nonexclusive license under BDB Intellectual
Property shall automatically also cover such Exploitation and Commercialization of IFX-1 and IFX-2 in the relevant Indication by
INFLARX within the BDB Territory.

 

		6.4	Handling of and Ownership in Co-Development Findings. BDB agrees that INFLARX shall have
all title to and all rights in any and all Co-Development Findings and that any Intellectual Property with respect to Co-Development
Findings shall be regarded as INFLARX Intellectual Property and INFLARX shall be entitled to its free choice to fully Exploit such
Co-Development Findings and the respective INFLARX Intellectual Property worldwide, it being understood that the rights granted
to BDB under INFLARX Intellectual Property according to this Agreement within the BDB Territory shall stay in place. In order to
facilitate this sole and exclusive ownership of INFLARX in the Co-Development Findings the following provisions shall apply:

 

		i.	BDB shall document all Co-Development Findings in accordance with good scientific practice and
shall promptly inform INFLARX of and make available to INFLARX all scientific information being Co-Development Findings in form
of data, tables and calculations as well as full reports. Outside any regular BDB reporting as set forth under Section ‎5.1,
this rule especially pertains to receipt of

 

     

    	INFLARX - BDB contract - confidential information	page 17 of 30

 

    

Co-Development
Findings related to any manufacturing, pre-clinical in vitro and animal studies and any clinical trial or clinical application.
INFLARX shall notify BDB of the receipt of such Co-Development Findings reporting/information immediately.

 

		ii.	BDB hereby assigns to INFLARX its entire worldwide right, title and interest in and to all such
Co-Development Findings in advance and INFLARX accepts such assignment. If and to the extent such transfer of ownership to INFLARX
is not legally enforceable for any reason (e.g. in case of copyrights), BDB hereby grants to INFLARX the exclusive, royalty-free
and timely and territorially unlimited right to use and/or utilize such Co-Development Findings, which is unlimited with regard
to the scope of use and particularly covers all known as well as currently unknown kinds of use, and INFLARX hereby accepts such
grant of rights. BDB shall undertake all precautionary measures in relation to its employees and Approved Third Parties to secure
effective transfer right, title and interest in or respectively grant of exclusive Exploitation rights with respect to all Co-Development
Findings to INFLARX in accordance with Applicable Laws. The transfer or respectively grant of exclusive Exploitation rights to
INFLARX [*****] for by the delivery of the IFX-1 Cell Line and the granting of the developing rights for BDB-1 and BDB-2 to BDB
as set forth in Section ‎6.2.

 

		iii.	INFLARX shall bear [*****] for the Exploitation of the Co-Development Findings and the respective
Intellectual Property in the INFLARX Territory.

 

		iv.	In case of inventions within the Co-Development Findings, INFLARX shall declare whether it wishes
to file a Patent Right application or expand existing Patent Rights with the Co-Development Findings within [*****] after receipt
of the relevant information. BDB will cooperate with INFLARX and execute and shall secure that its employees and Approved Third
Parties will execute all documents necessary to enable INFLARX to apply for Patent Right protection for such Inventions in INFLARX'
name and at INFLARX' expense with an employee of BDB being named as inventor or co-inventor as the case may be, BDB will, at INFLARX'
request, provide all necessary declarations and cooperate with INFLARX, as reasonably required, to enable Patent Rights to be issued.
Particularly, all employee inventions of BDB's employees and of BDB's Approved Third Parties being Co-Development Findings must
be reported to INFLARX promptly, completely and in writing. BDB shall undertake all precautionary measures to secure effective
transfer of such inventions to INFLARX in accordance with Applicable Laws. BDB is solely responsible for any compensation or respectively
remuneration owed to its employees according to the Applicable Laws with regard to any service inventions being Co-Development
Findings transferred to INFLARX hereunder .and INFLARX does not assume any liability or obligation vis-a-vis BDB and/or any BDB
employee in this regard.

 

		v.	Should INFLARX in case of an invention within the Co-Development Findings decline from pursuing
Patent Right protection for such Co-Development Finding within the BDB Territory, then INFLARX shall inform BDB within reasonable
time after making such decision. Any such decline of INFLARX shall be only valid when provided in writing by INFLARX to BDB (dated
and signed by an authorized representative). Upon BDB's request INFLARX shall grant BDB the right to pursue such protection within
the BDB Territory on its own cost and risk unless INFLARX has any reasonable interest that the relevant Co-Development Finding
remains secret. If BDB applies for a Patent Right for any Co-Development Finding in accordance with the aforementioned provisions,
INFLARX shall retain

 

     

    	INFLARX - BDB contract - confidential information	page 18 of 30

 

    

a non-exclusive
right to Exploit such Co-Development Finding and the respective Patent Right in the BDB Territory subject to the rights granted
to BDB under Section ‎6.2 and shall retain the exclusive right to Exploit such
Co-Development Finding in the INFLARX Territory.

 

		6.5	INFLARX Reserved Rights to BDB-1 and BDB-2. INFLARX reserves the right to decide —
in sole discretion — to Exploit and Commercialize BDB-1 and/or BDB-2 in the INFLARX Territory particularly in the event that
INFLARX determines that, for whatever reasons, any Indication cannot be or will not be developed in the INFLARX Territory using
IFX-1 or IFX-2. In such an event, INFLARX shall pay royalties to BDB as set forth under Section ‎7.2
and INFLARX and BDB shall execute an appropriate transfer agreement or supply agreement in case INFLARX chooses to get BDB-1 and/or
BDB-2 supply directly from BDB or its Approved Third Party. In addition, BDB shall grant to INFLARX access to any relevant documents
(such as the IMPD, clinical trial data and reports, manufacturing data and reports etc.) as may be necessary for use of BDB-1 and/or
BDB-2 within the INFLARX Territory. Any costs arising out of such information and document transfer and BDB-1 or BDB-2 supply shall
be [*****] unless agreed upon differently by the Parties.

 

		6.6	Retained INFLARX rights with respect to certain development of IFX-1 and IFX-2 inside the BDB
Territory. INFLARX reserves the right to include patients in clinical trials inside the BDB Territory for its global development
efforts for IFX-1 and or IFX-2 solely for the purpose to gain Regulatory Approval for Commercialization of a Product containing
IFX-1 and or IFX-2 within the INFLARX Territory

 

		6.7	Optional Development. In the event that INFLARX is being granted any Regulatory Approval
for Commercialization of a Product containing IFX-1 or IFX-2 anywhere in the INFLARX Territory for an Indication and if the same
or a substantially similar Indication at that time is not pursued by BDB inside the BDB Territory, as evidenced by any initiated
(FPFV) Phase II Clinical Trial for cPoC sponsored by BDB, with respect to BDB-1 or BDB-2, then INFLARX — upon INFLARX request
in writing — shall be granted the right to pursue Regulatory Approval for and to Exploit and Commercialize such Product containing
IFX-1 and or IFX-2 in that respective Indication inside the BDB Territory. In such event, BDB shall be entitled to royalty payments
as set forth in Section ‎7.2. For the purpose of this provision, it is understood that a “substantially similar
Indication” is concerned if there is an overlap in targeted sub-groups of patients in the Indications pursued in development
of the Parties.

 

ARTICLE 7 —
Royalty, Royalty Reporting and other Payments

 

		7.1	Royalties to be paid to INFLARX. For the granting of the exclusive license under lNFLARX
Intellectual Property with respect to development and Commercialization of BDB-1 and BDB-2 inside the BDB Territory as set forth
in Section ‎6.2, BDB shall pay to INFLARX royalties amounting to [*****]

 

		7.2	Conditional Royalties to be paid to BDB. INFLARX may pay royalties to BDB under this Agreement
conditional to defined circumstances outlined as following:

 

		i.	Only in the event that INFLARX chooses to exercise its reserved right to Exploit and Commercialize
BDB-1 and/or BDB-2, and not IFX-1 and/or IFX-2, anywhere in the INFLARX Territory pursuant to Section ‎6.5,
then INFLARX shall pay to BDB royalties amounting to [*****] arising from such Commercialization of a Product containing BDB-1
or BDB-2. For the avoidance of doubt INFLARX [*****] to BDB for any INFLARX' Exploitation

 

     

    	INFLARX - BDB contract - confidential information	page 19 of 30

 

    

and Commercialization
of Products containing IFX-1 and/or IFX-2 in the INFLARX Territory.

 

		ii.	Only in the event that INFLARX Exploits and Commercializes any Product containing IFX-1 and/or
IFX-2 for any Indication inside the BDB Territory pursuant to Section ‎6.7, then
BDB shall be entitled to [*****] arising out of such Commercialization of Products containing IFX-1 or IFX-2 inside the BDB Territory.

 

		7.3	Payment of Royalties. The Parties agree that royalty payments shall be made [*****] and
shall be due upon the [*****]. All royalty payments made under this Agreement will be payable in United States Dollar (USD) regardless
of the countries in which sales are made. Net Sales made in currencies other than in USD will be converted into USD using the average
exchange rate for the applicable calendar quarter sourced from the Federal Reserve Bank of the United States. The royalty payments
will be made to the bank account last notified by the other Party to the Party being obliged to make payment.

 

		7.4	Royalty Reports. After the First Commercial Sale of a Product for which either Party owes
royalties according to this Agreement, such Party shall submit in writing to the other Party quarterly royalty reports on or before
the [*****] following the [*****] Each quarterly royalty report shall cover the reporting Party's (and each Affiliate's and Sub-Licensee's)
most recently [*****] and shall show for the relevant Products

 

		i.	the gross sales of Products and Net Sales during the most recently completed calendar quarter and
the royalties payable with respect thereto;

 

		ii.	the number of each type of Product sold;

 

		iii.	the method used to calculate the royalties; and

 

		iv.	the exchange rates used.

 

If no sales of Products have been
made by the relevant Party, its Affiliates and/or SubLicensees during any reporting period, that Party shall so report. The quarterly
royalty report shall be certified as correct by an authorized representative of the relevant Party.

 

		7.5	Late Payments. Failure to conduct outstanding payments shall be regarded as breach of this
Agreement and the Party entitled to such payments shall have the right to charge an additional interest rate on such outstanding
payments of [*****] or, if lower, to the extent as then being minimally permitted by law at the place of jurisdiction of the charging
Party.

 

		7.6	Taxes. Unless explicitly provided differently in this Agreement (such as, but without limitation
to, in Sections ‎3.2 and ‎7.8), the following shall apply with respect to taxes applicable with respect to
any payment to be made under this Agreement:

 

Any Party required to make a payment
under this Agreement (“Paying Party”) shall be entitled to deduct and withhold from the amount payable the tax
which the Paying Party is liable under any provisions of applicable tax law. If the withholding tax rate is reduced according to
the regulations in the Double Tax Treaty, no deduction shall be made or a reduced amount shall be deducted only if Paying Party
is timely furnished with necessary documents by the Party receiving such payment (“Payee”) issued by the competent
tax authority, certifying that the payment is exempt from tax or subject

 

     

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to a reduced tax rate. Any withheld
tax shall be treated as having been paid by Paying Party to Payee for all purposes of this Agreement. Paying Party shall timely
forward the tax receipts certifying the payments of withholding tax on behalf of Payee. In case Paying Party cannot deduct the
withholding tax due to fulfillment of payment obligation by settlement or set-off, Payee will pay the withholding tax to Paying
Party separately. If Paying Party missed to deduct withholding tax but is still required by tax law to pay withholding tax on account
of Payee to the tax authorities, Payee shall assist Paying Party with regard to all procedures required in order to obtain reimbursement
by tax authorities or, in case tax authorities will not reimburse withholding tax to Paying Party, Payee will immediately refund
the tax amount.

 

		7.7	Record & Audits. The Party obliged to make royalty payments under this Agreement shall
keep, and shall require its Affiliates and Sub-Licensees to keep, accurate and complete records of all Products manufactured, used,
and sold under this Agreement in accordance with the International Financial Reporting Standards (IFRS). Such records shall be
retained by that Party for [*****] following a given reporting period.

 

All records shall be available
during normal business hours for inspection at the expense of the other Party by a public accountant bound by professional secrecy
selected by the other Party and reasonably acceptable to record keeping Party and in compliance with the other terms of this Agreement
for the sole purpose of verifying reports and payments. The other Party shall provide written notice that it is requesting an audit
not less than [*****] prior to such audit is planned. In an exceptional case, the record keeping Party may request a reasonable
adjournment of the audit in written form explaining the reason why the audit on the planned date would be mistimed, but in case
of such request the audit shall not take place later than [*****] after provision of the other Party's notice. Such inspection
shall not take place more often than [*****] every Calendar Year, and shall cover the Calendar Year in which the inspection is
made and the preceding [*****] Calendar Years only. Such inspector shall not disclose any information other than information relating
to the accuracy of quarterly royalty reports and payments made under this Agreement. In the event that any such inspection shows
an underpayment for any [*****], then the Party owing the royalty payments, within [*****] of receiving the final audit report,
shall pay any additional sum that would have been payable if reported correctly plus an interest calculated according to Section
‎7.5 on the amount due from the day the payment becomes overdue. In the event that any such inspection shows an underpayment
for any [*****] period in excess of [*****], then the record keeping Party shall, in addition to the amount payable under the preceding
sentence, pay the costs of the audit. In the event that any such inspection shows an overpayment for any [*****] period, then the
relevant Party may deduct, commencing with the next royalty report due after receipt of the final audit report, from future royalties
the amount of such overpayment without interest charges.

 

		7.8	Conditional Milestone Payment. In any event of [*****] for Commercialization of any Product
containing BDB-1 within the BDB Territory by the SFDA, BDB shall notify INFLARX within [*****]. Solely in the event that BDB shall
be granted such Regulatory Approval inside the BDB Territory before any such equivalent Regulatory Approval for any Indication
shall have been granted to INFLARX for Commercialization of a Product containing IFX-1 in any country of the INFLARX Territory,
then BDB shall pay to INFLARX a milestone of [*****] plus any taxes (including without limitation withholding tax as the case may
be), duties and other amounts (but excluding income and franchise tax) assessed by any Governmental Authority of any country with
respect to or in connection with the payment of the aforementioned sum and/or indemnification from or reimbursement of any such
tax, duties or other amount assess by any Governmental

 

     

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Authority for
the purpose that INFLARX shall fulfill its milestone payment obligations vis-á-vis [*****] for any [*****] for Commercialization
of a Product

 

anywhere in
the world based on the use of the IFX-1 Cell Line. The aforementioned payment shall be due within [*****] after receipt of such
Regulatory Approval for Commercialization of a Product containing BDB-1. The Parties may agree that alternatively BDB assumes from
INFLARX said milestone payment obligation vis-à-vis [*****] and any resulting tax, duty or other payment obligation in connection
with said payment. The Parties understand that such milestone payment by BDB, irrespective whether it is made through INFLARX or
directly to [*****], shall be seen as loan to INFLARX not bearing any interest and INFLARX shall pay back to BDB such amount actually
paid by BDB with respect to the aforementioned event upon receipt of its [*****] containing IFX-1 in any country of the INFLARX
Territory, due within the same time span.

 

ARTICLE 8 —
Confidentiality/ Publications/ Press Releases

 

		8.1	Mutual Confidentiality Obligation. Each Party agrees to treat the Confidential Information
of or obtained from the other Party as strictly confidential and not to disclose it to any Third Party for any purpose whatsoever
without obtaining the prior written consent of the other Party and not make use of the Confidential Information of or obtained
from the other Party or any part thereof other than as permitted under this Agreement and solely for the stated Purpose and within
the Frame of Co-Development of this Agreement and to treat it with at least the same care and in the same manner as its own secret
and valuable information but not less than according to the common standards in the pharmaceutical industry. Each Party may disclose
all or any part of the Confidential Information of or obtained from the other Party to its Affiliates, provided, however, that
such Party ensures that such Affiliates comply with the provisions of this this Article 8 This requirement of non-use, confidentiality
and non-disclosure shall not apply, however, to Confidential Information which:

 

		i.	the Receiving Party already knew without any confidentiality obligation being in place, the prior
knowledge of which it can document by prior written records;

 

		ii.	is or becomes public knowledge other than through the Receiving Party's breach of its confidentiality
obligations herein;

 

		iii.	the Receiving Party independently develops, discovers or arrives at without use of or reference
to the Confidential Information of or obtained from the Disclosing Party; or

 

		iv.	is obtained by the Receiving Party from a Third Party who is lawfully in possession of such information
and is not subject to an obligation of confidentiality or non-use owed to the Disclosing Party.

 

The Receiving Party bears the
burden of proof in case it relies on one of the above mentioned exemptions under numbers i) to iv). Specific aspects or details
of Confidential Information shall not be deemed to be within the public domain or in the possession of the Receiving Party merely
because the Confidential Information is embraced by more general information in the public domain or in the possession of the Receiving
Party. Further, any combination of Confidential Information shall not be considered in the public domain or in the possession of
the Receiving Party merely because individual elements of such Confidential Information are in the public domain or in the possession
of the Receiving Party unless the combination and its principles are in the public domain or in the possession of the Receiving
Party.

 

     

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		8.2	Legally Required Disclosure. If the Receiving Party becomes legally required to disclose
any Confidential Information of or obtained from the Disclosing Party, the Receiving Party will give, to the extent reasonably
possible, the Disclosing Party prompt notice of such fact so that the Disclosing Party may obtain a protective order or other appropriate
remedy concerning such disclosure and/or waive compliance with the non-disclosure provision of this Agreement The Receiving Party
will reasonably cooperate with the Disclosing Party in connection with the Disclosing Party's efforts to obtain any such order
or other remedy. If any such order or other remedy does not fully preclude disclosure of Confidential Information or the Disclosing
Party waives such compliance, the Receiving Party will make such disclosure of Confidential Information only to the extent that
such disclosure is legally required and will use its reasonable efforts to have confidential treatment accorded to the disclosed
information.

 

		8.3	Handling of Confidential Information. The Parties agree that Confidential Information (including
handling of any transferred material or technology) is only handled and used by such officers and employees who need to know such
Information or need to handle any material in order to fulfill the Purpose within the Frame of Co-Development of this Agreement.
The Receiving Party will make best efforts to ensure that any employee or officer to whom it discloses Confidential Information
of or obtained from the Disclosing Party will retain such information in strict confidence and is held under strict confidentiality
rules as set forth in this Agreement. The Receiving Party further undertakes that it will make best efforts to keep Confidential
Information of or obtained from the Disclosing Party and especially also any transferred material or technology of or obtained
from the other Party safe and to restrict access of non-authorized personnel to it wherever reasonably possible (e.g. keep materials
locked or guarded etc.).

 

		8.4	Return of Confidential Information. Upon termination of this Agreement, or upon ending of
any Co-Development established under this Agreement or subsequent agreements between the Parties, the Receiving Party shall upon
the other Party's written request, either return any material and Confidential Information of or obtained from the other Party
within [*****] back to the other Party, or destroy such material and/or Confidential Information entirely and certify to the other
Party the complete destruction, or in case no such request has been made, store the material and Confidential Information at a
secure place without access of Third Parties at its own expenses and risks.

 

		8.5	Breach of Confidentiality Obligation. In case any Party breaches the confidentiality obligation
arising from the provisions of this Article 8 and causes through misconduct trade secrets, material or Confidential Information
to be disclosed to Third Parties, it shall be obligated to cover any damages resulting from this breach. Furthermore, the Receiving
Party acknowledges that unauthorized disclosure or use of Confidential Information of or obtained from the Disclosing Party could
cause great and/or irreparable injury to the Disclosing Party and that pecuniary compensation would not afford adequate relief
or it would be extremely difficult to ascertain the amount of compensation which would afford adequate relief. Therefore, the Receiving
Party agrees that, in the event of such unauthorized disclosure or use of Confidential Information, the Disclosing Party will have
the right to seek and obtain injunctive relief in addition to any other rights and remedies it may have.

 

The Parties agree the confidentiality
obligation of BDB under this Article 8 shall extend also to the IFX-1 Cell Line and the [*****] and any information related thereto
and obtained from INFLARX and that [*****]

 

		8.6	Publications. BDB is not entitled to make any publication in oral or written form (including
but not limited to articles, abstracts, posters, presentations at any symposia,

 

     

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national, international
or regional professional meeting or in any journal, thesis, dissertation, newspaper or press releases or otherwise of its own choosing)
(hereinafter referred to as “Publication(s)”) covering or relating to the INFLARX Intellectual Property, Co-Development
Findings or other Confidential Information of or obtained from INFLARX. If and to the extent that any Publication planned by BDB
is related to BDB-1 and/or BDB-2, BDB shall request INFLARX prior written approval at least [*****] before planned submission of
the manuscript of such publication. INFLARX shall not unreasonably withhold its approval but is entitled to request from BDB delay
and/or amendments to the planned Publication in order to ensure patentability and/or protection of high-sensitive Confidential
Information. For the avoidance of doubt, any planned Publication shall not be deemed approved by INFLARX simply by expiry of any
deadline for response set by BDB.

 

		8.7	Press Release. Neither Party shall issue any press release relating to this Agreement without
obtaining the prior written consent of the other Party. Prior to being released or made, a copy of all press releases which a Party
intends to issue or make regarding this Agreement shall be provided to the other Party for approval, which approval shall not be
unreasonably withheld.

 

ARTICLE 9 —
WARRANTIES and LIABILITY

 

		9.1	Mutual Warranties. Each Party hereby warrants and represents that as of the Effective Date:

 

		i.	it is duly organized, validly existing and in good standing under the laws of the jurisdiction
of its incorporation and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof;

 

		ii.	execution of this Agreement and the performance of its obligations hereunder have been duly authorized;

 

		iii.	this Agreement has been duly executed and delivered on behalf of it, and constitutes a legal, valid,
binding obligation, enforceable against it in accordance with the terms hereof;·

 

		iv.	the execution, delivery and performance of this Agreement by it does not conflict with and does
not create a breach or default of any agreement, instrument or understanding, oral or written, to which it is a party or by which
it is bound, nor violate any laws or regulations of any court or Governmental Authority having jurisdiction over it which may result
in the invalidity of this Agreement.

 

		9.2	BDB Warranties and Limitation of Liability. BDB warrants to INFLARX that

 

		i.	it will strictly adhere to all obligations established within this Agreement, including but not
being limited to those under Article 4 and Article 5;

 

		ii.	it will adhere to and ensure that its Approved Third Parties will adhere to all necessary regulatory,
ethical and legal guidelines and Applicable Laws applicable to manufacturing, developing, testing and Commercializing BDB-1 and
or BDB-2 inside the BDB Territory.

 

BDB makes no further representations
or warranties including but not being limited to implied warranties of patentability, merchantability, fitness for a particular
purpose of

 

     

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any Co-Development Findings and
assumes no responsibility with respect to any Exploitation of such Co-Development Findings by INFLARX. Save for death or personal
injuries caused by negligence or for cases of gross negligence or willful misconduct or a case of Third Party claim indemnification
set forth in this Agreement, in no event shall BDB, including its officers and employees and agents, be responsible or liable for
any direct, indirect, special, incidental, or consequential damages or lost profits or other economic loss or damage resulting
out of INFLARX' Exploitation of Co-Development Findings.

 

		9.3	INFLARX Warranties and Limitation of Liability. INFLARX warrants that it has all rights,
or where applicable, the right to use and sublicense, for transferring the IFX-1 Cell Line to BDB and granting the development
rights inside the BDB Territory as set forth under Section ‎6.2. INFLARX makes no further representations or warranties
that any INFLARX Intellectual Property, including but not being limited to the IFX-1 Cell Line or IFX-1, nor derived products such
as BDB-1 or BDB-2 will not infringe any Patent Right or other Intellectual Property of any Third Party. In addition INFLARX makes
no warranties of any kind, including but not being limited to the implied warranties of merchantability, or fitness for a particular
purpose and assumes no responsibility with respect to design, development, manufacture, use, sale or other disposition arising
out of the use of the IFX-1 Cell Line transferred hereunder, or BDB-1 or BDB-2 or rights granted hereunder. Save for death or personal
injuries caused by negligence or for cases of gross negligence or willful misconduct or a case of Third Party claim indemnification
set forth in this Agreement, in no event shall INFLARX, including its officers and employees and agents, be responsible or liable
for any direct, indirect, special, incidental, or consequential damages or lost profits or other economic loss or damage in relation
to any rights granted to BDB or to INFLARX Intellectual Property and materials transferred to BDB within the Frame of Co-Development
of this Agreement.

 

ARTICLE 10 —
Third Party Claim Indemnification

 

		10.1	Indemnification Obligation of BDB. BDB shall defend, indemnify and hold INFLARX and/or [*****]
including their directors, officers, employees, and agents (hereinafter the “INFLARX lndemnitees”) harmless
and shall require any Approved Third Party to defend, indemnify and hold the INFLARX Indemnities harmless from and against any
and all claims, demands, damages, losses, and costs or expenses of any nature (including reasonable attorneys' fees and other reasonable
litigation expenses) (hereinafter the “Losses”), resulting from any Third Party claim arising from or in connection
with any use by BDB of the IFX-1 Cell Line, IFX-1, IFX-2 Cell Line, IFX-2, BDB-1 and/or BDB-2 or BDB-2 Cell Line or any INFLARX
Intellectual Property, except to the extent that any such Losses and/or Third Party claims arise out of the gross negligence, willful
misconduct or bad faith of any INFLARX lndemnitees and except to the extent INFLARX must indemnify BDB from such Losses pursuant
to Section ‎10.2. This indemnification shall include, but not be limited to, any product liability. [*****]

 

		10.2	Indemnification Obligation of INFLARX. INFLARX shall defend, indemnify and hold BDB including
its directors, officers, employees and agents (hereinafter the “BDB lndemnitees”) harmless from and against
any and all Losses resulting from any Third Party claim arising from or in connection with, any Exploitation of Co-Development
Findings or, as the case may be, of BDB-1 or BDB-2 by INFLARX, except to the extent that any such Losses and/or Third Party claims
arise out of the gross negligence, willful misconduct or bad faith of any BDB lndemnitees and except to the extent BDB must indemnify
INFLARX from such Losses pursuant to Section ‎10.1. This indemnification shall include, but not be limited to, any product
liability.

 

     

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		10.3	Indemnification Procedure. In the event that a Party (or [*****]) seeks indemnification
hereunder or under any provision in this Agreement with respect to a Third Party claim, the Party (or [*****]) seeking indemnification
(the “Indemnified Party”) shall promptly notify the other Party (the “Indemnifying Party”)
in writing of any Third Party claim in respect of which it intends to claim indemnification under this Article 10, provided, however,
that any failure to provide the Indemnifying Party with any such notice will not relieve the Indemnifying Party from any liability
that it may have to the Indemnified Party under this Article 10, except to the extent that the ability of the Indemnifying Party
to defend such claim is materially prejudiced by the Indemnified Party's failure to give such notice. If the Indemnifying Party
assumes such defense, the Indemnified Party will have the right to participate in the defense thereof and to employ counsel, at
its own expense, separate from the counsel employed by the Indemnifying Party. If the Indemnified Party has been advised by its
counsel that (i) there are one or more legal defenses available to it that are different from or additional to those available
to the Indemnifying Party or (ii) that there is otherwise a potential conflict between the interests of the Indemnified Party and
the Indemnifying Party, the reasonable fees and expenses of such separate counsel will be paid by the Indemnifying Party. If the
Indemnifying Party does not assume control of the defense of a Third Party claim within [*****] after the receipt by the Indemnifying
Party · of the notice required pursuant to this Section ‎10.3, the Indemnified Party will have the right to defend
such claim in such manner as it may deem appropriate at the reasonable cost and expense of the Indemnifying Party, but - for the
avoidance of doubt - the Indemnifying Party is not released from its indemnification obligation hereunder. The Indemnified Party
shall cooperate as may be reasonably requested in order to ensure the proper and adequate defense of any action, claim or liability
covered by this indemnification. The Indemnifying Party may not settle or otherwise dispose of any Third Party claim without the
prior written consent of the Indemnified Party unless such settlement (i) includes only the payment of monetary damages (which
are fully paid by the Indemnifying Party); (ii) does not impose any injunctive or equitable relief upon the Indemnified Party;
(iii) does not require any admission or acknowledgment of liability or fault of the Indemnified Party and (iv) contains an unconditional
release of the Indemnified Party in respect of such Third Party claim. The Indemnified Party may not settle or otherwise dispose
of any Third Party claim for which the Indemnifying Party may be liable for damages or indemnification under this Agreement without
the prior written consent of the Indemnifying Party.

 

ARTICLE 11 —
TERM AND TERMINATION

 

		11.1	Term. This Agreement will become effective and binding to the Parties as of the Effective
Date and will continue in effect unless termination occurs according to the terms set forth within this Article 11

 

		11.2	Termination upon Agreement of the Parties. This Agreement shall stay in effect unless the
Parties agree on terminating or amending this Agreement in writing, dated and signed by both Parties.

 

		11.3	Termination for Good Cause. Either Party may terminate this Agreement based on “good
cause”. A termination shall be considered based on good cause if the terminating Party establishes any of the following faults
caused by the other Party:

 

		i.	breach of any term or obligation established within this Agreement and failure to cure such breach
within a given time frame as set forth in Section ‎11.5;

 

     

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		ii.	contesting or challenging the ownership of the other Party in the other Party's Intellectual Property
for which the contesting Party is granted any usage right under this Agreement or the validity of any Patent Right within the other
Party's Intellectual Property for which the contesting Party is granted any usage right under this Agreement;

 

		iii.	breach of any obligation under the confidentiality provision set forth under Article 8;

 

		iv.	willful misconduct;

 

		v.	filing for bankruptcy or insolvency or any comparable circumstance including but not being limited
to the case in which a Party fails to pay its creditors;

 

		vi.	[*****]

 

		11.4	Consequences of Termination. In the event that this Agreement is terminated for good cause,
the following rules shall apply:

 

		i.	the rights granted to BDB by INFLARX under this Agreement as outlined within Section ‎6.2
shall cease immediately and BDB shall immediately cease any development, manufacture and Commercialization of BDB-1 and/or BDB-2;

 

		ii.	BDB shall return to INFLARX or destroy any material received from INFLARX including but not limited
to the IFX-1 Cell Line and IFX-1 upon written request by INFLARX;

 

		iii.	BDB shall, upon INFLARX' written request, destroy any and all amounts of BDB-1, BDB-2 and the corresponding
BDB-2 Cell Line;

 

		iv.	any ownership rights of INFLARX with respect to Co-Development Findings generated until the day
of termination shall remain fully intact and Section ‎6.4 shall further apply to
any Co-Development Findings made until the day of such termination;

 

		v.	INFLARX shall retain the non-exclusive license under BDB Intellectual Property that shall extend
worldwide from the date of termination;

 

		vi.	only in the case that INFLARX files for bankruptcy or insolvency then the foregoing rules under
Section ‎11.4 ‎i - ‎iii
shall not apply and BDB shall be entitled to keep its rights as granted under Section ‎6.2
also for the case that the underlying INFLARX Intellectual Property related to the IFX-1 Cell Line and/or BDB-1 and/or IFX-2 and/or
BDB-2 and/or BDB-2 Cell Line shall be bought or acquired by or transferred in some way to any Third Party within this insolvency
process. In case no such transfer occurs in such insolvency case relating to INFLARX, then BDB shall have the right to acquire
the ownership in INFLARX Intellectual Property existing in the BDB Territory and related to the !FX-1 Cell Line and use of BDB-1
and/or BDB-2 at no additional costs, other than actual or accumulated patent or other maintenance costs;

 

     

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		vii.	only for the event that BDB terminates the Agreement for a breach of INFLARX responsibility to
pay royalties as set forth in this Agreement after INFLARX has started Exploitation and Commercialization of BDB-1 and/or BDB-2
in the INFLARX Territory pursuant to Section ‎6.5, then INFLARX shall cease any
such Exploitation and Commercialization of BDB-1 and or BDB-2 in the INFLARX Territory and shall owe no further royalty payments
from the time of receipt of such termination while INFLARX shall remain obliged to make any outstanding royalty payments until
the day of termination; INFLARX shall be granted a sell-off right with respect to all Products containing BDB-1 or BDB-2 on stock
at the time of termination subject to the royalty payment obligation as set forth in this Agreement; if and to the extent any Governmental
Authority requires from lNFLARX the further supply of the Products containing BDB-1 or BDB-2 into the relevant market, the Parties
will negotiate in good faith on measures in order to fulfill such requirements;

 

		viii.	for the avoidance of doubt, any payment or royalty payment received by either Party under this
Agreement before receipt of any termination from the other Party shall then not be refunded;

 

		ix.	for further avoidance of doubt, termination of this Agreement shall be without prejudice to any
rights and/or claims (including for payment of royalties) either Party may have against the other arising prior to expiry or termination.

 

		11.5	Breach. Unless expressly stated otherwise within this Agreement any breach detected by a
Party shall be communicated as soon as reasonably possible to the breaching Party in writing (email with confirmation of receipt
shall be deemed appropriate) and the breaching Party shall have [*****] from the day of receipt of such notice onwards to cure
such breach and confirm such cure in detail back to the notifying Party. If no cure can be established within these [*****] and
unless the Parties have agreed on a prolongation of the cure period, then any such breach shall be deemed permanent and the Parties
agree that this establishes a cause for an immediate termination of this Agreement.

 

		11.6	Survival. The following provisions shall survive any termination of this Agreement: Article
1, Section ‎2.4, Section ‎6.1,
Section ‎6.3, Section ‎6.4 (without
v. but maintaining all retained rights already existing at termination under v.), Section ‎7.4
(for any royalty payment outstanding at termination), Sections ‎7.5 through ‎7.7,
Articles 8 through 10, Section ‎11.4, this Section ‎11.6,
Section ‎12.2, Section ‎12.3 and
Section ‎12.6. To extent the aforementioned provisions refer to another provision
of this Agreement such referred provision shall continue in full force and in accordance with their terms, notwithstanding the
expiration or termination of this Agreement for any reason.

 

ARTICLE 12 —
MISCELLANEOUS PROVISIONS

 

		12.1	Transfer of Agreement. This Agreement shall automatically stay intact if BDB or INFLARX
will undergo any name changes or if either Party becomes partially or completely part of another company or entity and therefore
be binding for such entities. The rights granted under this Agreement to BDB as set forth under Section ‎6.2
shall not be transferrable, sold or granted further by BDB to any Third Party without the prior written consent and approval hereto
from INFLARX, dated and signed by a duly authorized representative of INFLARX. In case INFLARX decides to sell or exclusively license
IFX-1 and or IFX-2 and/or its related INFLARX Intellectual Property to any Third Party, than INFLARX shall bind such Third Party
to accept this Agreement to its full extent and assume any resulting INFLARX responsibilities under this Agreement.

 

     

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		12.2	Governing Law. This Agreement shall be construed, governed, interpreted and applied according
to the German law, excluding its conflict of laws provisions.

 

		12.3	Dispute Resolution. The Parties agree to attempt to settle any dispute arising out of or
in relation to this Agreement through consultation and negotiation in good faith and spirit of mutual cooperation. If and to the
extent such out of court settlement could not be reached by the Parties within [*****] after receipt of either Party of a respective
notice in writing from the other Party, any unresolved dispute will be finally settled by binding arbitration without recourse
to the ordinary courts of law according to the Rules of the German Institute of Arbitration (DIS) (“DIS Rules”)
as modified hereunder by a panel of 3 arbitrators, who shall also have knowledge of the pharmaceutical business. Within [*****]
after receipt of an arbitration notice from a Party, each Party shall appoint one independent arbitrator, the both Party appointed
arbitrators then shall jointly appoint a third arbitrator, who shall act as chairman. If the both Party appointed arbitrators are
unable to appoint the third arbitrator within [*****] after the appointment of the last of the both Party appointed arbitrators,
the third arbitrator shall be appointed by the DIS in accordance with the DIS Rules. The panel of 3 arbitrators shall conduct the
arbitration in accordance with the DIS Rules. All arbitrators shall be required to speak write and read fluently in English. The
language of the arbitration shall be in English. Arbitration shall take place in Cologne, Germany. The International Bar Association
Rules on the Taking of Evidence in International Commercial Arbitration shall govern the taking of evidence in any such proceeding.
The Parties hereto agree mutually that any arbitral award will be binding, final and enforceable. The prevailing Party shall be
entitled to reimbursement of its expenses including reasonable attorney fees.

 

		12.4	Severability. If a court of competent jurisdiction or any competent Governmental Authority
in charge for either Parties development programs, finds any term of this Agreement invalid, illegal or unenforceable, that term
will be curtailed, limited or deleted, or changed but only to the extent necessary to remove the invalidity, illegality or unenforceability
by keeping the terms as close as possible to the originally intended term and without in any way affecting or impairing the validity
and enforceability of the remaining terms of this Agreement.

 

		12.5	No waiver. No waiver by either Party of any breach of this Agreement, no matter how long
continuing or how often repeated, is a waiver of any subsequent breach thereof, nor is any delay or omission on the part of either
Party to exercise or insist on any right, power, or privilege hereunder a waiver of such right, power or privilege. In no event
shall any waiver be deemed valid unless it is in writing and signed by an authorized representative of each Party.

 

		12.6	Confidential Agreement. Both Parties agree that this Agreement shall be deemed confidential
and handled as outlined hereunder within this Agreement. However, either Party shall be entitled to disclose this agreement to
a public accountant bound by professional secrecy in case of an audit as well as to any of its shareholders if this is required
under the internal corporate guidelines. [*****] Furthermore, either Party may disclose the existence and the content of this Agreement
in the course of any sale of or investment into its business subject to prior conclusion of an appropriate confidentiality agreement
with the relevant Third Party as well as the existence and key figures of this Agreement may be disclosed in any investment brochure
or prospect to the extent required by Applicable Laws.

 

		12.7	Independent Collaborators: The relationship between the Parties is that of independent collaborators.
Neither Party shall act as an agent of the other Party, especially not

 

     

    	INFLARX - BDB contract - confidential information	page 29 of 30

 

    

when in connection
with the exercise of any rights hereunder, and neither has any right or authority to assume or create any obligation or responsibility
on behalf of the other.

 

ARTICLE 13 —
NOTICES

 

Unless explicitly provided differently,
any notice, request, or report required or permitted to be given or made under this contract by either Party is effective when
mailed if sent by recognized overnight carrier, certified or registered mail, or electronic mail electronic proof of delivery,
to the address set forth below or such other address as such Party specifies by written notice given in conformity herewith. Any
notice, request, or report not so given is not effective until actually received by the other Party. if under this Agreement any
notice is required to be given in writing, such notice shall be deemed received by the other Party upon the date and time of electronic
receipt acknowledgment notice if an electronic copy of the relevant written notice is send by email (dated and signed by an duly
authorized representative) and mailed by certified mail carrier with undue delay thereafter (receipt within [*****] required —
or, if exceeding [*****], the day of the actual receipt of the signed and dated notice shall be considered the official date of
receipt).

 

	TO INFLARX:	To BDB:
	 	 
	lnflaRx GmbH 

Winzerlaer Str. 2

07745 Jena 

Germany	Beijing Defengrei Biotechnology Co.Ltd 

36 Jinghai Er Road. BDA

Beijing 100176 

P.R.China
	 	 
	Tel.:49-3641-508180	Tel: 86-13522096085
	 	 
	[*****]	[*****]
	 	 
	 	 
	 	 

Signature page follows:

 

     

    	INFLARX - BDB contract - confidential information	page 30 of 30

 

    

IN WITNESS WHEREOF, the Parties hereto have
executed this contract in duplicate originals by their duly authorized officers or representatives.

 

	FOR INFLARX:	 	FOR BDB:
	 	 	 
	 	 	 
	By:	/s/ Niels C. Riedemann	 	By:	/s/ Shusheng Geng
	 	(Prof. Dr. Niels C. Riedemann, CEO)	 	 	(Dr. Shusheng Geng, CEO)
	 	 	 	 	 

	Date:	 Dec 28th 2015	 	Date:	 12/01/ 2015

	 	 	 	 	 

	 	 	 

	By:	/s/ Renfeng Guo	 	By:	/s/ Lina Ma
	 	(Prof. Dr. Renfeng Guo, CSO)	 	 	(..............................)
	 	 	 	 	 
	 	 	 	 	 

	Date:	11/30/2015	 	 	 

     

    	INFLARX - BDB contract Addendum I - confidential information	page 1 of 8

 

    

   

Addendum I to the

Co-Development Agreement

 

effective as of December 28th
2015 

(hereinafter referred to as “Addendum”)

between

lnflaRx GmbH

a corporation established under the law of Germany

Winzerlaer Strasse 2, 07745 Jena/Germany

(hereinafter referred to as “INFLARX”)

and

Beijing Defengrei Biotechnology Co.Ltd

 

a corporation established under the law of P.R. China

36 Jinghai Er Road. BDA

Beijing 100176

P.R. China

(hereinafter referred to as “BDB”)

 

(INFLARX or BDB hereinafter also referred
to as “Party” and together as “Parties”)

 

PREAMBLE

 

		A.	The Parties have executed a Co-Development Agreement effective as of December

28th 2015 with respect to monoclonal anti-human complement C5a antibodies (the

“Co-Development Agreement”).

 

		B.	The Parties envisage additional collaborative work for the creation and development of additional
molecules (hereinafter referred to as IFX-x and BDB-x and defined below) on the basis of the INFLARX Intellectual Property and
the BDB Intellectual Property (as defined in the Co-Development Agreement) and wish to include the creation testing and potential
further development of such additional molecules into the Purpose of the Co-Development Agreement by expanding the Frame of Co-Development
(as both defined in the Co-Development Agreement) as outlined in this Addendum.

 

		C.	The Parties wish to provide for a timely limited option right of BDB in order to choose to further
develop, manufacture and commercialize any specific Established IFX-x (as defined below) solely inside of the BDB Territory (as
defined in the Co-Development Agreement) subject to the terms of the Co-Development Agreement and this Addendum.

 

		D.	The development work described in B above and the grant of the option right described in C above
requires supplementing some of the provisions of the Co-Development Agreement.

 

Now, therefore, the Parties conclude
this Addendum:

 

     

    	INFLARX - BDB contract Addendum I - confidential information	page 2 of 8

 

    

ARTICLE 1 —
DEFINITIONS

 

		1.1	All defined terms used in this Addendum shall have the same meaning as defined in the Co-Development
Agreement unless expressively altered, broadened or changed within this Addendum

 

		1.2	“Development Phase” means the period of time during which INFLARX and BDB will
execute development activities as described in Article 2 below, having a duration of [*****] from the Effective Date which may
be prolonged upon both Parties' written agreement.

 

		1.3	“Established IFX-x” has the meaning as defined in Section ‎2.3.

 

		1.4	"IFX-x" means one or more bi- or multiple specific molecule(s) (i) which is/are
developed on the basis of the INFLARX Intellectual Property and the BDB Intellectual Property and which is developed and derived
in part or in whole from the antibody sequence of IFX-1 or from IFX-2 and which is binding to the complement component C5a, and
(ii) contain in addition at least one other molecular entity bound or linked to the part described in (i), which binds or interacts
with any molecular target or targets other than the complement component C5a, and (iii) which bi- or multiple specific molecule(s)
is/ are developed under the full responsibility of INFLARX. It is understood that IFX-x is not manufactured/ generated in the IFX-1
Cell Line.

 

		1.5	“BDB-x” means any specific Established IFX-x (as defined below) which is being
developed under the full responsibility of BDB in accordance with the provisions of the Co-Development Agreement as altered by
this Addendum after BDB has exercised its option right with respect to such specific Established IFX-x as set forth under Article
3.

 

ARTICLE 2 —
Creation and Establishing of IFX-x molecules

during the Development Phase

 

		2.1	BDB shall, during the Development Phase, create and generate one or more IFX-x molecule(s) (numbered
in order of the creation starting with IFX-3, IFX-4 and so forth) on the basis of the INFLARX Intellectual Property and any applicable
BDB Intellectual Property. These IFX-x molecules shall, besides interacting with C5a, bind and/or interact with one or more of
the following targets: [*****]. Additional targets may be added upon approval by both Parties in writing. INFLARX will assist this
creation and generation of the IFX-x molecules reasonably. BDB shall not create or engage in the creation of any IFX-x with respect
to any target other than the targets set forth herein without the prior written approval of INFLARX. The Parties shall use their
best reasonable efforts to create or generate such IFX-x molecules free of any Third Party Intellectual Property.

 

		2.2	BDB shall then test and establish the binding, inhibition or other interaction of such molecule
to any established target other than C5a in-house and deliver to INFLARX without undue delay any results of such testing. BDB shall
deliver to INFLARX together with said test results such IFX-x in order for INFLARX to test and establish the binding to C5a and/or
the inhibition of C5a-induced biological effects by such IFX x and INFLARX shall furnish the results of such testing without undue
delay to BDB.

 

		2.3	If, according to the test results, any IFX-x molecule is established by INFLARX and by BDB to bind
to or interact with the additional target(s) as described in Section ‎2.1

 

     

    	INFLARX - BDB contract Addendum I - confidential information	page 3 of 8

 

    

above and C5a
in a satisfactory manner to both Parties, this IFX-x molecule will be recognized as established by both Parties by written notice
dated and signed by both Parties (such established IFX-x molecule hereinafter the “Established IFX-x”). The
Parties understand that weak or partial binding or blocking activity below [*****] of a suitable reference standard, i.e. IFX-1
performance for C5a binding, shall generally be deemed as not suitable. Such written notice determining an Established IFX-x shall
become effective upon the date of the last signature. However, neither Party shall withhold unreasonably its signature of such
notice for longer than [*****] after receipt of the dated and signed notice by the other Party if the test results show that the
respective IFX-x is suitable as described before.

 

		2.4	[*****]

 

		2.5	The Parties agree that all activities as set forth in this Article 2 during the Development Phase
shall be part of the Frame of Co-Development and all provisions of the Co-Development Agreement (as supplemented by this Addendum)
shall apply to such activities unless specifically and explicitly provided differently in this Addendum. For the avoidance of doubt,
INFLARX, at its sole discretion, cost coverage and its sole responsibility shall have the exclusive right to fully Exploit any
IFX-x and shall, wherever applicable, be granted and/or transferred exclusive Exploitation rights to and ownership in IFX-x and
all Co-Development Findings by BDB and shall be granted and transferred usage rights under BDB Intellectual Property to the extent
necessary or useful to Exploit such rights in any IFX-x and any Co-Development Findings subject to the option right of BDB as set
forth under Article 3.

 

ARTICLE 3 —
BDB Option Right

 

		3.1	Within [*****] of receipt of the notice of INFLARX according to Section ‎2.3 above for any
Established IFX-x (the “Option Period”), BDB has an option right for such Established IFX-x in order to further
pursue it solely and exclusively in the BDB Territory as BDB-x in accordance with and subject to all provisions of the Co-Development
Agreement as altered in this Addendum. The option right is exercised if INFLARX receives written notice to this effect from BDB
for the relevant Established IFX-x during the Option Period.

 

		3.2	If BDB exercises its option right for a specific Established IFX-x in accordance with Section ‎3.1
above, all provisions of the Co-Development Agreement (as altered or supplemented in this Addendum) will fully apply to this specific
Established IFX-x and the respective BDB-x and any product containing this specific BDB-x (and the respective Established IFX-x),
it being understood that such products shall be covered by the "Product"-definition. For the avoidance of doubt, the
Frame of Co-Development will be supplemented with respect to any Established IFX-x and the respective BDB-x for which BDB has exercised
its option right in accordance with Section ‎3.1 as follows:

 

     

    	INFLARX - BDB contract Addendum I - confidential information	page 4 of 8

 

    

		i.	BDB may, at its sole discretion, cost coverage and its sole responsibility establish any BDB-x
Cell Line, GMP Manufacturing Process for the relevant BDB-x and conduct pre-clinical animal and in vitro studies inside the BDB
Territory using the relevant BDB-x as well as later clinical trials and studies inside the BDB Territory in compliance with all
Applicable Laws including GCP and with the provisions of the Co-Development Agreement. BDB shall promptly share all related Co-Development
Findings and ensure data sharing with INFLARX and put in place reporting tools for all development areas equivalent to those required
for BDB-1 and BDB-2 under the Co-Development Agreement. INFLARX shall grant appropriate rights to BDB for such manufacturing, development
and Commercialization exclusively and solely within the BDB Territory equivalent to the rights granted for development of BDB-2
and the corresponding cell line within the Co-Development Agreement. INFLARX shall be limited with respect to Commercialization
of any molecule binding to the same targets of the Established IFX-x and the respective BDB-x inside the BDB Territory as set forth
in Section ‎5.2.

 

		ii.	INFLARX, at its sole discretion, cost coverage and its sole responsibility shall retain and have
the exclusive right to fully Exploit the relevant Established IFX x and shall, wherever applicable, be granted and/or transferred
exclusive Exploitation rights to and ownership in the relevant IFX-x and all Co-Development Findings by BDB and shall be granted
and transferred usage rights under BDB Intellectual Property to the extent necessary or useful to Exploit such rights equivalent
to those established within the Co-Development Agreement for IFX-2 and any Co-Development Findings subject to the rights granted
to BDB with respect to the BDB Territory under the Co-Development Agreement.

 

		3.3	If BDB does not exercise its option right in accordance with Section ‎3.1 with respect to any
Established IFX-x, INFLARX will have all exclusive rights to develop, manufacture, Exploit and Commercialize the relevant Established
IFX-x through itself or through a Third Party also within the BDB Territory. BDB shall grant, and INFLARX hereby accepts such grant,
all usage rights under BDB Intellectual Property to the extent necessary or useful to Exploit such Established IFX-x, the relevant
INFLARX Intellectual Property and any relevant Co-Development Findings also within the BDB Territory.

 

ARTICLE 4 —
BDB Use of Cell Lines and IFX-x and BDB-x

 

		4.1	All terms and conditions established within Sections ‎4.1 through ‎4.11 of the Co-Development
Agreement regarding IFX-2 and the IFX-2 Cell Line shall be fully applicable to IFX-x and its corresponding cell line/ manufacturing
process and all terms and conditions established therein for BDB-2 and the corresponding BDB-2 Cell Line as well as IFX-2 and the
IFX-2 Cell Line shall be fully applicable to BDB-x and the corresponding cell line/ manufacturing process. For the avoidance of
doubt, any right to use IFX-2 and the IFX-2 Cell Line as set forth in Sections ‎4.1 through ‎4.11 of the Co-Development
Agreement shall be limited to the use necessary for the development works as described under Article 2 above during the Development
Phase, and use of IFX-2 and the IFX-2 Cell Line for further development, manufacture and Commercialization of any IFX-x and BDB-x
and the corresponding cell lines and/or manufacturing process as set forth in the Co-Development Agreement is subject to the exercise
of the option right in accordance with Section ‎3.1 above for the respective Established IFX-x.

 

     

    	INFLARX - BDB contract Addendum I - confidential information	page 5 of 8

 

    

		4.2	BDB shall in no event make or engage any Third Party in making additional changes, alterations
or any humanization efforts of any kind to any IFX-x and/or BDB-x and any corresponding cell line unless agreed upon differently
between the Parties in writing.

 

ARTICLE 5 —
Intellectual Property / Handling of Co-Development Findings

 

		5.1	During the Development Phase, INFLARX grants to BDB the non-exclusive, non transferrable right
under the INFLARX Intellectual Property to research and develop IFX-x only as set forth under Article 2 and solely within the BDB
Territory. BDB hereby accepts this grant. BDB's rights granted under this Section ‎5.1 shall be conditional to performance
of any and all its obligations by BDB and subject to the terms and conditions set forth in this Addendum.

 

		5.2	Subject to Section ‎5.1 above and subject to the provisions in Sections ‎3.2 and ‎3.3
above, all terms and conditions established within Sections ‎6.1 through ‎6.7 of the Co-Development Agreement with respect
to BDB-2/IFX-2 and the corresponding BDB-2/IFX-2 Cell Line shall be fully applicable to BDB-x/IFX-x and its corresponding cell
line/ manufacturing process. The Parties agree that the usage rights granted to BDB under Section ‎6.2 of the Co-Development
Agreement and BDB’s right to be offered to pursue patent protection within the BDB Territory for any invention within the
Co-Development Findings relating to the relevant Established IFX-x (and the respective BDB-x) as set forth on Section ‎6.4
‎v. of the Co-Development Agreement shall be granted only and from the date of exercise of the option right by BDB with respect
to the relevant Established IFX-x in accordance with Section ‎3.1 above. If and to the extent that BDB exercises its option
right for any Established IFX-x, INFLARX shall from the date of execution of the option right by BDB in accordance with Section
‎3.1 not engage in any Commercialization either alone or together with or through a Third Party of any product containing any
other independently developed molecule targeting the human complement factor C5a and the respective other target(s) to which the
Established IFX-x and the respective BDB-x, for which BDB has exercised its option right, is binding within the BDB Territory.
For the avoidance of doubt, INFLARX retains the right to develop and/or manufacture any other independently developed molecule
targeting the human complement factor C5a and the respective other target(s) to which the Established IFX-x and the respective
BDB-x, for which BDB has exercised its option right, is binding and any product containing such molecule inside the BDB Territory
alone or together with or through a Third Party solely for the purpose of Exploitation and Commercialization of a product containing
such molecule in the INFLARX Territory, and to Exploit such molecule within the BDB Territory for non-commercial purposes.

 

		5.3	For the avoidance of doubt, IFX-x and BDB-x and including the respective cell lines and manufacturing
processes and all Know-How generated by the Parties with respect thereto shall be considered Co-Development Findings and shall
be handled as such in accordance with the relevant provisions set forth in the Co-Development Agreement.

 

ARTICLE 6 —
Royalty, Royalty Reporting and other Payments

 

For any Established IFX-x and
respective BDB-x the following royalty scheme should apply instead of the royalty scheme set forth in Sections ‎7.1 and ‎7.2
of the Co-Development Agreement:

 

		6.1	Royalties to be paid to INFLARX for the development of BDB-x: For the granting of the exclusive
license under INFLARX Intellectual Property with respect to

 

     

    	INFLARX - BDB contract Addendum I - confidential information	page 6 of 8

 

    

development
and Commercialization of any BDB-x, for which (or respectively for the respective Established IFX-x) BDB has exercised its option
right in accordance with Section ‎3.1 above, inside the BDB Territory in accordance to Section ‎6.2 of the Co-Development
Agreement, BDB shall pay to INFLARX royalties amounting to [*****]

 

		6.2	Royalties to be paid to BDB for the development of Established IFX-x: In the event that
INFLARX chooses to develop and to Exploit and Commercialize any Established IFX-x within the INFLARX Territory, then INFLARX shall
pay to BDB royalties amounting to [*****] arising from such Commercialization of a Product containing the relevant Established
IFX-x.

 

		6.3	Conditional Royalties for IFX-x and BDB-x development:

 

		i.	Only in the event that INFLARX chooses to exercise its reserved right to Exploit and Commercialize
any BDB-x, for which (or respectively for the respective Established IFX-x) BDB has exercised its option right in accordance with
Section ‎3.1 above, and not the respective Established IFX-x anywhere in the INFLARX Territory pursuant to Section ‎6.5
of the Co-Development Agreement, then INFLARX shall pay to BDB royalties amounting to [*****] arising from such Commercialization
of a Product containing the relevant BDB-x.

 

		ii.	Only in the event that INFLARX Exploits and Commercializes any Product containing any Established
IFX-x, for which BDB has exercised its option right in accordance with Section ‎3.1 above, for any Indication inside the BDB
Territory pursuant to Section ‎6.7 of the Co-Development Agreement, then BDB shall be entitled to [*****] arising out of such
Commercialization of Products containing the relevant IFX-x inside the BDB Territory.

 

		6.4	Conditions for Royalty payments for IFX-x and BDB-x: For the avoidance of doubt, all terms
and conditions established within the Sections ‎7.3 through ‎7.7 of the Co-Development Agreement shall be fully applicable
in connection with royalty payments established regarding relevant Established IFX-x and respective BDB-x.

 

ARTICLE 7 —
WARRANTIES and LIABILITY

 

In addition to the warranties
made by BDB under Section ‎9.2 of the Co-Development Agreement, BDB hereby warrants to the best of its knowledge that it has
all right and title to apply the necessary Know-How or technology for the generation of any IFX-x and any BDB-x including but not
being limited to necessary manufacturing steps and that it does not violate or infringe existing Third Party Intellectual Property
by the creation of any IFX-x and/or the respective BDB-x. For the avoidance of doubt, this supplementing warranty shall apply already
with respect to the Development Phase and the activities conducted in the Development Phase.

 

ARTICLE 8 —
TERM AND TERMINATION

 

		8.1	This Addendum will become effective and binding to the Parties as of the Effective Date and will
continue in effect unless the Co-Development Agreement is terminated pursuant to Article 11 of the Co-Development Agreement.

 

     

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		8.2	Notwithstanding Section ‎8.1 above, this Addendum may also be terminated by either Party at
any time during the Development Phase without termination of the Co-Development Agreement by [*****] prior written notice to the
other Party. Upon such termination, BDB shall immediately stop any development works then conducted in accordance with Article
2 and shall provide and transfer to INFLARX all results of the development works conducted under Article 2. All rights and obligations
of the Parties accrued under this Addendum prior to such termination shall be maintained. Any option right of BDB already accrued
with respect to any Established IFX-x at the time of such termination shall be maintained and BDB may still exercise such option
right after such termination becomes effective unless and until the Co-Development Agreement is terminated. If and to the extent
BDB has already exercised its option right with respect to any Established IFX-x at the time of such termination by INFLARX, BDB
will retain all rights granted under this Addendum and the Co-Development Agreement with respect to such Established IFX-x, for
which BDB has already exercised its option right, for the further development, manufacture and Commercialization of the respective
BDB-x solely within the BDB Territory, unless and until the Co-Development Agreement is terminated.

 

		8.3	The following provisions of this Addendum shall survive its termination: Article 1, Section ‎2.5,
Sections ‎3.1 and ‎3.2 to the extent required under Section ‎8.2, Section ‎3.3, Sections ‎5.2 and ‎5.3,
Article 6 to the extent required under Section ‎8.2, Article 7, Section ‎8.2 and Article 9. To the extent the aforementioned
provisions refer to another provision of this Addendum and of the Co-Development Agreement, such referred provision shall continue
in full force and in accordance with their terms, notwithstanding the expiration or termination of this Addendum for any reason.

 

ARTICLE 9 —
MISCELLANEOUS PROVISIONS

 

The Parties agree that nothing
in this Addendum is meant to alter, invalidate, change or dismiss any term or condition of the Co-Development Agreement unless
expressively stated so differently within this Addendum. The Parties conclude that this Addendum and the Co-Development Agreement
shall constitute the entire contractual understanding between the Parties with respect to their subject matters as of the Effective
Date. The Co-Development Agreement shall fully apply to all activities of the Parties under this Addendum unless specifically und
explicitly provided differently in this Addendum.

 

Signature page follows:

 

     

    	INFLARX - BDB contract Addendum I - confidential information	page 8 of 8

 

    

IN WITNESS WHEREOF, the Parties hereto have
executed this Addendum in duplicate originals by their duly authorized officers or representatives.

 

	FOR INFLARX:	 	FOR BDB:
	 	 	 
	 	 	 
	By:	/s/ Niels C. Riedemann	 	By:	/s/ Shusheng Geng
	 	(Prof. Dr. Niels C. Riedemann, CEO)	 	 	(Dr. Shusheng Geng, CEO)
	 	 	 	 	 

	Date:	 Dec 28th 2015	 	Date:	 12/01/ 2015

 

	By:	/s/ Renfeng Guo	 	By:	/s/ Lina Ma
	 	(Prof. Dr. Renfeng Guo, CSO)	 	 	(..............................)
	 	 	 	 	 
	 	 	 	 	 

	Date:	11/30/2015inqd_ex101.htm

EXHIBIT 10.1
  
 INVESTMENT AGREEMENT
  
 This INVESTMENT AGREEMENT (the “Agreement”), dated as of October 12, 2017 (the “Execution Date”), is entered into by and between Indoor Harvest Corp. (the “Company”), a Texas corporation, with its principal executive offices at 5300 East Freeway Suite A, Houston, TX 77020, and Tangiers Global, LLC (the “Investor”), a Wyoming limited liability company, with its principal executive offices at Caribe Plaza Office Building 6th Floor, Palmeras St. #53, San Juan, PR 00901.
  
 RECITALS:
  
 WHEREAS, the parties desire that, upon the terms and subject to the conditions contained herein, the Investor shall invest up to Two Million Dollars ($2,000,000) (the “Commitment Amount”) to purchase the Company’s common stock, par value of $.001 per share (the “Common Stock”); 
  
 WHEREAS, such investments will be made in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), Rule 506 of Regulation D promulgated by the SEC under the 1933 Act, and/or upon such other exemption from the registration requirements of the 1933 Act as may be available with respect to any or all of the investments in Common Stock to be made hereunder; and 
  
 WHEREAS, contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration Rights Agreement substantially in the form attached hereto as Exhibit A (the “Registration Rights Agreement”) pursuant to which the Company has agreed to provide certain registration rights under the 1933 Act, and the rules and regulations promulgated thereunder, and applicable state securities laws. 
  
 NOW THEREFORE, in consideration of the foregoing recitals, which shall be considered an integral part of this Agreement, the covenants and agreements set forth hereafter, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Investor hereby agree as follows: 
  
 SECTION I.
 DEFINITIONS
  
 For all purposes of and under this Agreement, the following terms shall have the respective meanings below, and such meanings shall be equally applicable to the singular and plural forms of such defined terms.
  
 “1933 Act” shall have the meaning set forth in the recitals.
  
 “1934 Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and regulations of the SEC thereunder, all as the same will then be in effect.
  
 “Affiliate” shall mean any individual or entity that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with another individual or entity as such terms are used in and construed under Rule 405 under the 1933 Act.
  
 “Agreement” shall have the meaning set forth in the preamble.
  
 “Articles of Incorporation” shall have the meaning set forth in Section 4.3 .
  
  	 
	- 1 -
	 
 
	 

  
 “By-laws” shall have the meaning set forth in Section 4.3 .
  
 “Certificate” shall have the meaning set forth in Section 2.5 .
  
 “Closing” shall have the meaning set forth in Section 2.5 .
  
 “Closing Date” shall have the meaning set forth in Section 2.5 .
  
 “Commitment Fee Note” shall have the meaning set forth in Section 10.17
  
 “Commitment Amount” shall have the meaning set forth in the recitals.
  
 “Common Stock” shall have the meaning set forth in the recitals.
  
 “Company” shall have the meaning set forth in the preamble.
  
 “DTC” shall have the meaning set forth in Section 2.5 .
  
 “DWAC” shall mean Deposit and Withdrawal at Custodian service provided by the Depository Trust Company. 
  
 “Effective Date” shall mean the date the SEC declares effective under the 1933 Act the Registration Statement covering the Securities.
  
 “Environmental Laws” shall have the meaning set forth in Section 4.13 .
  
 “Execution Date” shall have the meaning set forth in the preamble.
  
 “FAST” shall have the meaning set forth in Section 2.5 .
  
 “Investor” shall have the meaning set forth in the preamble.
  
 “Material Adverse Effect” shall have the meaning set forth in Section 4.1 .
  
 “Maximum Common Stock Issuance” shall have the meaning set forth in Section 2.6 .
  
 “Open Period” shall mean the period beginning on and including the Trading Day immediately following the Effective Date and ending on the earlier to occur of (i) the date which is thirty-six (36) months from the Effective Date; or (ii) termination of the Agreement in accordance with Section 8.
  
 “PCAOB” shall have the meaning set forth in Section 4.6 .
  
 “Pricing Period” shall mean, with respect to a particular Put Notice, the five (5) consecutive Trading Days including and immediately following the applicable Put Notice Date. 
  
 “Principal Market” shall mean the New York Stock Exchange, the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the OTC Bulletin Board or the OTC Markets Group, whichever is the principal market on which the Common Stock is traded.
  
  	 
	- 2 -
	 
 
	 

  
 “Purchase Amount” shall mean the total amount being paid by the Investor on a particular Closing Date to purchase the Securities, calculated by multiplying the Purchase Price by the Put Amount.
  
 “Purchase Price” shall mean the 80% of the average of the two lowest closing bid prices of the Common Stock during the Pricing Period applicable to the Put Notice, provided, however, an additional 10% will be added to the discount of each Put if (i) the Company is not DWAC eligible and (ii) an additional 15% will be added to the discount of each Put if the Company is under DTC “chill” status on the applicable Put Notice Date. 
  
 “Put” shall have the meaning set forth in Section 2.2 . 
  
 “Put Amount” shall have the meaning set forth in Section 2.3 . 
  
 “Put Notice” shall mean a written notice sent to the Investor by the Company stating the Put Amount in U.S. dollars that the Company intends to sell to the Investor pursuant to the terms of the Agreement and stating the current number of Shares issued and outstanding on such date.
  
 “Put Notice Date” shall mean the Trading Day on which the Investor receives a Put Notice, determined as follows: a Put Notice shall be deemed delivered on (a) the Trading Day it is received by electronic mail or otherwise by the Investor if such notice is received prior to 9:30 a.m. (Pacific time), or (b) the immediately succeeding Trading Day if it is received by electronic mail or otherwise after 9:30 a.m. (Pacific time) on a Trading Day. No Put Notice may be deemed delivered on a day that is not a Trading Day. 
  
 “Put Settlement Sheet” shall mean a written letter to the Company by the Investor, evidencing acceptance of the Put and providing instructions for delivery of the Securities to the Investor.
  
 “Put Shares Due” shall mean the Shares to be sold to the Investor pursuant to the Put.
  
 “Registered Offering Transaction Documents” shall mean this Agreement and the Registration Rights Agreement between the Company and the Investor as of the date herewith.
  
 “Registration Rights Agreement” shall have the meaning set forth in the recitals.
  
 “Registration Statement” means the registration statement of the Company filed under the 1933 Act covering the resale of the Securities issuable hereunder by the Investor, in the manner described in such Registration Statement.
  
 “Resolutions” shall have the meaning set forth in Section 7.5 .
  
 “SEC” shall mean the U.S. Securities and Exchange Commission.
  
 “SEC Documents” shall have the meaning set forth in Section 4.6 .
  
 “Securities” shall mean the shares of Common Stock issued pursuant to the terms of the Agreement.
  
 “Shares” shall mean the shares of the Company’s Common Stock.
  
  	 
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 “Subsidiaries” shall have the meaning set forth in Section 4.1 .
  
 “Trading Day” shall mean any day on which the Principal Market for the Common Stock is open for trading, from the hours of 9:30 am until 4:00 pm.
  
 “VWAP” shall mean, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted for trading as reported by (i) Bloomberg Financial L.P. or (ii) Stock Charts/Quote Media if the Investor does not promptly provide the Company the Bloomberg quote/pricing charts for the days involved upon the Company’s request (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) and (b) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Investor and to the Company.
  
 “Waiting Period” shall have the meaning set forth in Section 2.3 .
  
 SECTION II
 PURCHASE AND SALE OF COMMON STOCK
  
 2.1 PURCHASE AND SALE OF COMMON STOCK. Subject to the terms and conditions set forth herein, the Company shall issue and sell to the Investor, and the Investor shall purchase from the Company, up to that number of Shares having an aggregate Purchase Price of Two Million Dollars ($2,000,000).
  
 2.2 DELIVERY OF PUT NOTICES. Subject to the terms and conditions of the Registered Offering Transaction Documents, and from time to time during the Open Period, the Company may, in its sole discretion, deliver a Put Notice to the Investor which states the share amount (designated in whole shares of the Company’s Common Stock), which the Company intends to sell to the Investor on a Closing Date (the “Put”). The Put Notice shall be in the form attached hereto as Exhibit B and incorporated herein by reference. Upon receipt of the Put Notice, the Investor shall deliver to the Company a Put Settlement Sheet on the Put Notice Date. The Put Settlement Sheet shall be in the form attached hereto as Exhibit C and incorporated herein by reference.
  
 2.3 PUT FORMULA. The maximum amount of shares of Common Stock that the Company shall be entitled to Put to the Investor per any applicable Put Notice shall be an amount of shares up to or equal to two hundred percent (200%) of the average of the daily trading volume (U.S. market only) of the Common Stock for the ten (10) consecutive Trading Days immediately prior to the applicable Put Notice Date (the “Put Amount”) so long as such amount is at least Five Thousand Dollars ($5,000) and does not exceed Four Hundred Thousand Dollars ($400,000), as calculated by multiplying the Put Amount by the average daily VWAP for the eight (8) consecutive Trading Days immediately prior to the applicable Put Notice Date. During the Open Period, the Company shall not be entitled to submit a Put Notice until after the previous Closing has been completed. Notwithstanding the foregoing, the Company may not deliver a Put Notice on or earlier of the eighth (8th) Trading Day immediately following the preceding Put Notice Date (the “Waiting Period”). 
  
  	 
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 2.4 CONDITIONS TO INVESTOR’S OBLIGATION TO PURCHASE SHARES. Notwithstanding anything to the contrary in this Agreement, the Company shall not be entitled to deliver a Put Notice and the Investor shall not be obligated to purchase any Shares at a Closing unless each of the following conditions are satisfied: 
  
  	  
	i.	a Registration Statement shall have been declared effective and shall remain effective and usable and available for the resale of all the Put Shares Due at all times until the Closing with respect to the applicable Put Notice;
	  
	  
	  

	  
	ii.	at all times during the period beginning on the related Put Notice Date and ending on and including the related Closing Date, the Common Stock shall have been listed or quoted for trading on the Principal Market and shall not have been suspended from trading thereon during the Pricing Period;
	  
	  
	  

	  
	iii.	the Company has complied with its obligations and is otherwise not in material breach of or in material default under, this Agreement, the Registration Rights Agreement or any other agreement executed in connection herewith which has not been cured prior to delivery to the Investor of the applicable Put Notice;
	  
	  
	  

	  
	iv.	no injunction shall have been issued and remain in force, or action commenced by a governmental authority which has not been stayed or abandoned, prohibiting the purchase or the issuance of the Securities; and
	  
	  
	  

	  
	v.	the issuance of the Securities will not violate any shareholder approval requirements of the Principal Market.

  
 If any of the events described in clauses (i) through (v) above occurs during a Pricing Period, then the Investor shall have no obligation to purchase the Put Amount of Common Stock set forth in the applicable Put Notice. 
  
 2.5 MECHANICS OF PURCHASE OF SHARES BY INVESTOR. Subject to the satisfaction of the conditions set forth in Sections 2.6 and 7 of this Agreement, the closing of the purchase by the Investor of Securities (a “Closing”) shall occur on the date which is no earlier than five (5) Trading Days following and no later than seven (7) Trading Days following the applicable Put Notice Date (each a “Closing Date”). On each such Closing Date, if the Company’s transfer agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program and that the Securities are eligible for inclusion in the FAST program, the Company shall use all commercially reasonable efforts to cause its transfer agent to electronically transmit the Securities to be issued to the Investor on such date by crediting the account of the Investor’s prime broker (as specified by the Investor in a Put Settlement Sheet) with DTC through its DWAC service. If the Company is not DWAC eligible or the Company is under DTC “chill” on such Closing Date, the Company shall deliver to the Investor pursuant to this Agreement, certificates representing the Securities to be issued to the Investor on such date and registered in the name of the Investor (the “Certificate”). On such Closing Date, after receipt of confirmation of delivery of such Securities to the Investor, the Investor shall disburse the funds constituting the Purchase Amount to the Company’s designated account by wire transfer of (i) immediately available funds if the Investor receives the Securities by 9:30 a.m. (Pacific time) or (ii) next day available funds if the Investor receives the Securities thereafter.
  
  	 
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 2.6 OVERALL LIMIT ON COMMON STOCK ISSUABLE. Notwithstanding anything contained herein to the contrary, if during the Open Period the Company becomes listed on an exchange that limits the number of shares of Common Stock that may be issued without shareholder approval, then the number of Shares issuable by the Company and purchasable by the Investor, shall not exceed that number of the shares of Common Stock that may be issuable without shareholder approval (the “Maximum Common Stock Issuance”). If such issuance of shares of Common Stock could cause a delisting on the Principal Market, then the Maximum Common Stock Issuance shall first be approved by the Company’s shareholders in accordance with applicable law and the By-laws and the Articles of Incorporation of the Company, if such issuance of shares of Common Stock could cause a delisting on the Principal Market. The parties understand and agree that the Company’s failure to seek or obtain such shareholder approval shall in no way adversely affect the validity and due authorization of the issuance and sale of Securities or the Investor’s obligation in accordance with the terms and conditions hereof to purchase a number of Shares in the aggregate up to the Maximum Common Stock Issuance limitation, and that such approval pertains only to the applicability of the Maximum Common Stock Issuance limitation provided in this Section 2.6 .
  
 2.7 LIMITATION ON AMOUNT OF OWNERSHIP. Notwithstanding anything to the contrary in this Agreement, in no event shall the Investor be entitled to purchase that number of Shares, which when added to the sum of the number of shares of Common Stock beneficially owned (as such term is defined under Section 13(d) and Rule 13d-3 of the 1934 Act), by the Investor, would exceed 9.99% of the number of shares of Common Stock outstanding on the Closing Date, as determined in accordance with Rule 13d-1(j) of the 1934 Act. 
  
 SECTION III
 INVESTOR’S REPRESENTATIONS, WARRANTIES AND COVENANTS
 The Investor represents and warrants to the Company, and covenants, that: 
  
 3.1 SOPHISTICATED INVESTOR. The Investor has, by reason of its business and financial experience, such knowledge, sophistication and experience in financial and business matters and in making investment decisions of this type that it is capable of (i) evaluating the merits and risks of an investment in the Securities and making an informed investment decision; (ii) protecting its own interest; and (iii) bearing the economic risk of such investment for an indefinite period of time. 
  
 3.2 AUTHORIZATION; ENFORCEMENT. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor and is a valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms, subject as to enforceability to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 
  
 3.3 SECTION 9 OF THE 1934 ACT. During the term of this Agreement, the Investor will comply with the provisions of Section 9 of the 1934 Act, and the rules promulgated thereunder, with respect to transactions involving the Common Stock. The Investor agrees not to short sell the Company’s stock either directly or indirectly through its affiliates, principals or advisors, the Common Stock during the term of this Agreement. The Investor will only sell Company stock that it has in its possession. 
  
 3.4 ACCREDITED INVESTOR. The Investor is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D of the 1933 Act. 
  
 3.5 NO CONFLICTS. The execution, delivery and performance of the Registered Offering Transaction Documents by the Investor and the consummation by the Investor of the transactions contemplated hereby and thereby will not result in a violation of limited liability company agreement or other organizational documents of the Investor. 
  
  	 
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 3.6 OPPORTUNITY TO DISCUSS. The Investor has received all materials relating to the Company’s business, finance and operations which it has requested. The Investor has had an opportunity to discuss the business, management and financial affairs of the Company with the Company’s management. 
  
 3.7 INVESTMENT PURPOSES. The Investor is purchasing the Securities for its own account for investment purposes and not with a view towards distribution and agrees to resell or otherwise dispose of the Securities solely in accordance with the registration provisions of the 1933 Act (or pursuant to an exemption from such registration provisions). 
  
 3.8 NO REGISTRATION AS A DEALER. The Investor is not and will not be required to be registered as a “dealer” under the 1934 Act, either as a result of its execution and performance of its obligations under this Agreement or otherwise. 
  
 3.9 GOOD STANDING. The Investor is a limited liability company, duly organized, validly existing and in good standing in the State of Wyoming.
  
 3.10 TAX LIABILITIES. The Investor understands that it is liable for its own tax liabilities.
  
 3.11 REGULATION M. The Investor will comply with Regulation M under the 1934 Act, if applicable. 
  
 3.12 GENERAL SOLICITATION. The Investor is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement.
  
 3.13 TRANSFER RESTRICTIONS. The Securities may only be disposed of in compliance with federal and state securities laws. In connection with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, to the Company or to an affiliate of the Investor, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under the 1933 Act; provided, however, that in connection with any transfer of Securities pursuant to Rule 144, the Company may require the transferor to provide a customary Rule 144 sellers representation letter. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights of the Investor under this Agreement and the Registration Rights Agreement, as to issued Securities only.
  
  	 
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 SECTION IV
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
  
 Except as set forth in the Schedules attached hereto, or as disclosed on the Company’s SEC Documents, the Company represents and warrants to the Investor that: 
  
 4.1 ORGANIZATION AND QUALIFICATION. The Company is a corporation duly organized and validly existing in good standing under the laws of the State of Texas, and has the requisite corporate power and authorization to own its properties and to carry on its business as now being conducted. Both the Company and the companies it owns or controls (“Subsidiaries”) are duly qualified to do business and are in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means a change, event, circumstance, effect or state of facts that has had or is reasonably likely to have, a material adverse effect on the business, properties, assets, operations, results of operations, financial condition or prospects of the Company and its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements and instruments to be entered into in connection herewith, or on the authority or ability of the Company to perform its obligations under the Registered Offering Transaction Documents. 
  
 4.2 AUTHORIZATION; ENFORCEMENT; COMPLIANCE WITH OTHER INSTRUMENTS. 
  
  	  
	 i.
  
	 The Company has the requisite corporate power and authority to enter into and perform the Registered Offering Transaction Documents, and to issue the Securities in accordance with the terms hereof and thereof.

			
	  
	 ii.
  
	 The execution and delivery of the Registered Offering Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby, including without limitation the issuance of the Securities pursuant to this Agreement, have been duly and validly authorized by the Company’s board of directors and no further consent or authorization is required by the Company, its board of directors, or its shareholders.

			
	  
	 iii.
  
	 The Registered Offering Transaction Documents have been duly and validly executed and delivered by the Company.

			
	  
	 iv.
  
	 The Registered Offering Transaction Documents constitute the valid and binding obligations of the Company enforceable against the Company in accordance with their terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies.

			

  
  	 
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 4.3 CAPITALIZATION. As of the date hereof, the authorized capital stock of the Company consists of, 50,000,000 shares of the Common Stock, par value $.001 per share, of which 24,657,360 were issued and outstanding as of October 12, 2017. All of such outstanding shares have been, or upon issuance will be, validly issued and are fully paid and non-assessable. 
  
 Except as disclosed in the Company’s publicly available filings with the SEC or as otherwise set forth on Schedule 4.3:
  
  	  
	i.	no shares of the Company’s capital stock are subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company;
	  
	  
	  

	  
	ii.	there are no outstanding debt securities;
	  
	  
	  

	  
	iii.	there are no outstanding shares of capital stock, options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries;

  
  	  
	iv.	there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act (except the Registration Rights Agreement);
	  
	  
	  

	  
	v.	there are no outstanding securities of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries;
	  
	  
	  

	  
	vi.	there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities as described in this Agreement;
	  
	  
	  

	  
	vii.	the Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; and
	  
	  
	  

	  
	viii.	there is no dispute as to the classification of any shares of the Company’s capital stock.

  
 The Company has furnished to the Investor, or the Investor has had access through EDGAR to, true and correct copies of the Company’s Articles of Incorporation, as in effect on the date hereof (the “Articles of Incorporation”), and the Company’s By-laws, as in effect on the date hereof (the “By-laws”), and the terms of all securities convertible into or exercisable for Common Stock and the material rights of the holders thereof in respect thereto. 
  
 4.4 ISSUANCE OF SHARES. As of the Effective Date, the Company will have reserved the amount of Shares included in the Registration Statement for issuance pursuant to the Registered Offering Transaction Documents, which will have been duly authorized and reserved (subject to adjustment pursuant to the Company’s covenant set forth in Section 5.5 below) pursuant to this Agreement. Upon issuance in accordance with this Agreement, the Securities will be validly issued, fully paid for and non-assessable and free from all taxes, liens and charges with respect to the issuance thereof. In the event the Company cannot reserve a sufficient number of Shares for issuance pursuant to this Agreement, the Company will use its best efforts to authorize and reserve for issuance the number of Shares required for the Company to perform its obligations hereunder as soon as reasonably practicable.
  
  	 
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 4.5 NO CONFLICTS. The execution, delivery and performance of the Registered Offering Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby will not (i) result in a violation of the Articles of Incorporation or the By-laws; or (ii) conflict with, or constitute a material default (or an event which with notice or lapse of time or both would become a material default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any material agreement, contract, indenture mortgage, indebtedness or instrument to which the Company or any of its Subsidiaries is a party, or to the Company’s knowledge result in a violation of any law, rule, regulation, order, judgment or decree (including United States federal and state securities laws and regulations and the rules and regulations of the Principal Market or principal securities exchange or trading market on which the Common Stock is traded or listed) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected. Neither the Company nor its Subsidiaries is in violation of any term of, or in default under, the Articles of Incorporation or the By-laws or their organizational charter or by-laws, respectively, or any contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule or regulation applicable to the Company or its Subsidiaries, except for possible conflicts, defaults, terminations, amendments, accelerations, cancellations and violations that would not individually or in the aggregate have or constitute a Material Adverse Effect. The business of the Company and its Subsidiaries is not being conducted, and shall not be conducted, in violation of any law, statute, ordinance, rule, order or regulation of any governmental authority or agency, regulatory or self-regulatory agency, or court, except for possible violations the sanctions for which either individually or in the aggregate would not have a Material Adverse Effect. Except as specifically contemplated by this Agreement and as required under the 1933 Act or any securities laws of any states, to the Company’s knowledge, the Company is not required to obtain any consent, authorization, permit or order of, or make any filing or registration (except the filing of a registration statement as outlined in the Registration Rights Agreement between the parties) with, any court, governmental authority or agency, regulatory or self-regulatory agency or other third party in order for it to execute, deliver or perform any of its obligations under, or contemplated by, the Registered Offering Transaction Documents in accordance with the terms hereof or thereof. All consents, authorizations, permits, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof and are in full force and effect as of the date hereof. The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing. The Company is not, and will not be, in violation of the listing requirements of the Principal Market as in effect on the date hereof and on each of the Closing Dates and is not aware of any facts which would reasonably lead to delisting of the Common Stock by the Principal Market in the foreseeable future.
  
 4.6 SEC DOCUMENTS; FINANCIAL STATEMENTS. As of the date hereof, the Company has filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents incorporated by reference therein, and amendments thereto, being hereinafter referred to as the “SEC Documents”). The Company has delivered to the Investor or its representatives, or they have had access through EDGAR to, true and complete copies of the SEC Documents. As of their respective filing dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC or the time they were amended, if amended, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. As of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles, by a firm that is a member of the Public Companies Accounting Oversight Board (“PCAOB”) consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). No other written information provided by or on behalf of the Company to the Investor which is not included in the SEC Documents, including, without limitation, information referred to in Section 4.3 of this Agreement, contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstance under which they are or were made, not misleading. The Company’s knowledge, neither the Company nor any of its Subsidiaries or any of their officers, directors, employees or agents have provided the Investor with any material, nonpublic information which was not publicly disclosed prior to the date hereof and any material, nonpublic information provided to the Investor by the Company or its Subsidiaries or any of their officers, directors, employees or agents prior to any Closing Date shall be publicly disclosed by the Company prior to such Closing Date. 
  
  	 
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 4.7 ABSENCE OF CERTAIN CHANGES. Except as otherwise set forth in the SEC Documents, the Company does not intend to change the business operations of the Company in any material way. The Company has not taken any steps, and does not currently expect to take any steps, to seek protection pursuant to any bankruptcy law nor does the Company or its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings.
  
 4.8 ABSENCE OF LITIGATION AND/OR REGULATORY PROCEEDINGS. Except as set forth in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of Company or any of its Subsidiaries, threatened against or affecting the Company, the Common Stock or any of the Company’s Subsidiaries or any of the Company’s or the Company’s Subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a Material Adverse Effect.
  
 4.9 ACKNOWLEDGMENT REGARDING INVESTOR’S PURCHASE OF SHARES. The Company acknowledges and agrees that the Investor is acting solely in the capacity of an arm’s length purchaser with respect to the Registered Offering Transaction Documents and the transactions contemplated hereby and thereby. The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Registered Offering Transaction Documents and the transactions contemplated hereby and thereby and any advice given by the Investor or any of its respective representatives or agents in connection with the Registered Offering Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to the Investor’s purchase of the Securities, and is not being relied on by the Company. The Company further represents to the Investor that the Company’s decision to enter into the Registered Offering Transaction Documents has been based solely on the independent evaluation by the Company and its representatives. 
  
 4.10 NO UNDISCLOSED EVENTS, LIABILITIES, DEVELOPMENTS OR CIRCUMSTANCES. Except as set forth in the SEC Documents or required with respect to the Registered Offering Transaction Documents, as of the date hereof, no event, liability, development or circumstance has occurred or exists, or to the Company’s knowledge is contemplated to occur, with respect to the Company or its Subsidiaries or their respective business, properties, assets, prospects, operations or financial condition, that would be required to be disclosed by the Company under applicable securities laws on a registration statement filed with the SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly announced. 
  
 4.11 EMPLOYEE RELATIONS. Neither the Company nor any of its Subsidiaries is involved in any union labor dispute nor, to the knowledge of the Company or any of its Subsidiaries, is any such dispute threatened. Neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that relations with their employees are good. No executive officer (as defined in Rule 501(f) of the 1933 Act) has notified the Company that such officer intends to leave the Company’s employ or otherwise terminate such officer’s employment with the Company. 
  
  	 
	- 11 -
	 
 
	 

  
 4.12 INTELLECTUAL PROPERTY RIGHTS. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted. Except as set forth in the SEC Documents, none of the Company’s trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets or other intellectual property rights necessary to conduct its business as now or as proposed to be conducted have expired or terminated, or are expected to expire or terminate within two (2) years from the date of this Agreement. The Company and its Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries of trademark, trade name rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, trade secret or other similar rights of others, or of any such development of similar or identical trade secrets or technical information by others and, except as set forth in the SEC Documents, there is no claim, action or proceeding being made or brought against, or to the Company’s knowledge, being threatened against, the Company or its Subsidiaries regarding trademark, trade name, patents, patent rights, invention, copyright, license, service names, service marks, service mark registrations, trade secret or other infringement; and the Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing. The Company and its Subsidiaries have taken commercially reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties. 
  
 4.13 ENVIRONMENTAL LAWS. The Company and its Subsidiaries (i) are, to the knowledge of the management and directors of the Company and its Subsidiaries, in compliance with any and all applicable foreign, federal, state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”); (ii) have, to the knowledge of the management and directors of the Company, received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses as currently conducted; and (iii) are in compliance, to the knowledge of the management and directors of the Company, with all terms and conditions of any such permit, license or approval where, in each of the three (3) foregoing cases, the failure to so comply would have, individually or in the aggregate, a Material Adverse Effect. 
  
 4.14 TITLE. The Company and its Subsidiaries have good and marketable title to all personal property owned by them which is material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects except such as are described in the SEC Documents or such as do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company or any of its Subsidiaries. Any real property and facilities held under lease by the Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company and its Subsidiaries. 
  
 4.15 INSURANCE. Each of the Company’s Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company reasonably believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any of its Subsidiaries has been refused any insurance coverage sought or applied for and neither the Company nor its Subsidiaries has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect. 
  
  	 
	- 12 -
	 
 
	 

  
 4.16 REGULATORY PERMITS. The Company and its Subsidiaries have in full force and effect all certificates, approvals, authorizations and permits from the appropriate federal, state, local or foreign regulatory authorities and comparable foreign regulatory agencies, necessary to own, lease or operate their respective properties and assets and conduct their respective businesses in the manner currently being conducted, and neither the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, approval, authorization or permit, except for such certificates, approvals, authorizations or permits which if not obtained, or such revocations or modifications which, would not have a Material Adverse Effect. 
  
 4.17 INTERNAL ACCOUNTING CONTROLS. Except as otherwise set forth in the SEC Documents, the Company and each of its Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles by a firm with membership to the PCAOB and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company’s management has determined that the Company’s internal accounting controls were not effective as of the date of this Agreement as further described in the SEC Documents.
  
 4.18 NO MATERIALLY ADVERSE CONTRACTS, ETC. Neither the Company nor any of its Subsidiaries is subject to any charter, corporate or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s officers has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party to any contract or agreement which in the judgment of the Company’s officers has or is expected to have a Material Adverse Effect. 
  
 4.19 TAX STATUS. The Company and each of its Subsidiaries has made or filed all United States federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim. 
  
 4.20 CERTAIN TRANSACTIONS. Except as set forth in the SEC Documents and except for transactions pursuant to which the Company makes payments in the ordinary course of business upon terms no less favorable than the Company could obtain from disinterested third parties and other than the grant of stock options disclosed in the SEC Documents, none of the officers, directors, or employees of the Company is presently a party to any transaction with the Company or any of its Subsidiaries (other than for services as employees, consultants, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any corporation, partnership, trust or other entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, such that disclosure would be required in the SEC Documents.. 
  
  	 
	- 13 -
	 
 
	 

  
 4.21 DILUTIVE EFFECT. The Company understands and acknowledges that the number of shares of Common Stock issuable upon purchases pursuant to this Agreement will increase in certain circumstances including, but not necessarily limited to, the circumstance wherein the trading price of the Common Stock declines during the period between the Effective Date and the end of the Open Period. The Company’s executive officers and directors have studied and fully understand the nature of the transactions contemplated by this Agreement and recognize that they have a potential dilutive effect on the shareholders of the Company. The board of directors of the Company has concluded, in its good faith business judgment, and with full understanding of the implications, that such issuance is in the best interests of the Company. The Company specifically acknowledges that, subject to such limitations as are expressly set forth in the Registered Offering Transaction Documents, its obligation to issue shares of Common Stock upon purchases pursuant to this Agreement is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.
  
 4.22 LOCK-UP. The Company shall cause its officers, insiders, directors, and affiliates or other related parties under control of the Company, to refrain from selling Common Stock during each Pricing Period. 
  
 4.23 NO GENERAL SOLICITATION. Neither the Company, nor any of its affiliates, nor any person acting on its behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Common Stock to be offered as set forth in this Agreement. 
  
 4.24 NO BROKERS, FINDERS OR FINANCIAL ADVISORY FEES OR COMMISSIONS. No brokers, finders or financial advisory fees or commissions will be payable by the Company, its agents or Subsidiaries, with respect to the transactions contemplated by this Agreement.
  
 SECTION V
 COVENANTS OF THE COMPANY
  
 5.1 BEST EFFORTS. The Company shall use all commercially reasonable efforts to timely satisfy each of the conditions set forth in Section 7 of this Agreement. 
  
 5.2 REPORTING STATUS. During the Open Period and until one of the following occurs, the Company shall file all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status, or take an action or fail to take any action, which would terminate its status as a reporting company under the 1934 Act: (i) this Agreement terminates pursuant to Section 8 and the Investor has the right to sell all of the Securities without volume restrictions pursuant to Rule 144 promulgated under the 1933 Act, or such other exemption, or (ii) the date on which the Investor has sold all the Securities and this Agreement has been terminated pursuant to Section 8.
  
 5.3 USE OF PROCEEDS. The Company will use the proceeds from the sale of the Securities (excluding amounts paid or to be paid by the Company for fees as set forth in the Registered Offering Transaction Documents, if any) for general corporate and working capital purposes and acquisitions or assets, businesses or operations or for other purposes that the board of directors of the Company, in its good faith deem to be in the best interest of the Company. 
  
  	 
	- 14 -
	 
 
	 

  
 5.4 FINANCIAL INFORMATION. During the Open Period, the Company agrees to make available to the Investor via EDGAR or other electronic means the following documents and information on the forms set forth: (i) within five (5) Trading Days after the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, any Current Reports on Form 8-K and any Registration Statements or amendments filed pursuant to the 1933 Act; (ii) copies of any notices and other information made available or given to the shareholders of the Company generally, contemporaneously with the making available or giving thereof to the shareholders; and (iii) within two (2) calendar days of filing or delivery thereof, copies of all documents filed with, and all correspondence sent to, the Principal Market, any securities exchange or market, or the Financial Industry Regulatory Association, unless such information is material nonpublic information. 
  
 5.5 RESERVATION OF SHARES. The Company shall take all action necessary to at all times have authorized, and reserved the amount of Shares included in the Registration Statement for issuance pursuant to the Registered Offering Transaction Documents. In the event that the Company determines that it does not have a sufficient number of authorized shares of Common Stock to reserve and keep available for issuance as described in this Section 5.5 , the Company shall use all commercially reasonable efforts to increase the number of authorized shares of Common Stock by seeking shareholder approval for the authorization of such additional shares. 
  
 5.6 LISTING. The Company shall use all commercially reasonable efforts to promptly secure and maintain the listing of all of the Registrable Securities (as defined in the Registration Rights Agreement) on the Principal Market and each other national securities exchange and automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and shall maintain, such listing of all Registrable Securities from time to time issuable under the terms of the Registered Offering Transaction Documents. Neither the Company nor any of its Subsidiaries shall take any action which would be reasonably expected to result in the delisting or suspension of the Common Stock on the Principal Market (excluding suspensions of not more than one (1) Trading Day resulting from business announcements by the Company). The Company shall promptly provide to the Investor copies of any notices it receives from the Principal Market regarding the continued eligibility of the Common Stock for listing on such automated quotation system or securities exchange. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 5.6 . 
  
 5.7 FILING OF FORM 8-K. On or before the date which is four (4) Trading Days after the Execution Date, the Company shall file a Current Report on Form 8-K with the SEC describing the terms of the transaction contemplated by the Registered Offering Transaction Documents in the form required by the 1934 Act, if such filing is required. 
  
 5.8 CORPORATE EXISTENCE. The Company shall use all commercially reasonable efforts to preserve and continue the corporate existence of the Company. 
  
 5.9 NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION OF RIGHT TO MAKE A PUT. The Company shall promptly notify the Investor upon the occurrence of any of the following events in respect of a Registration Statement or related prospectus in respect of an offering of the Securities: (i) receipt of any request for additional information by the SEC or any other federal or state governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements to the Registration Statement or related prospectus; (ii) the issuance by the SEC or any other federal or state governmental authority of any stop order suspending the effectiveness of any Registration Statement or the initiation of any proceedings for that purpose; (iii) receipt of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Securities for sale in any jurisdiction or the initiation or notice of any proceeding for such purpose; (iv) the happening of any event that makes any statement made in such Registration Statement or related prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in the Registration Statement, related prospectus or documents so that, in the case of a Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and that in the case of the related prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (v) the Company’s reasonable determination that a post-effective amendment or supplement to the Registration Statement would be appropriate, and the Company shall promptly make available to Investor any such supplement or amendment to the related prospectus. The Company shall not deliver to Investor any Put Notice during the continuation of any of the foregoing events in this Section 5. 9.
  
  	 
	- 15 -
	 
 
	 

  
 5.10 TRANSFER AGENT. Upon effectiveness of the Registration Statement, and for so long as the Registration Statement is effective, following delivery of a Put Notice, the Company shall deliver instructions to its transfer agent to issue Shares to the Investor that are covered for resale by the Registration Statement free of restrictive legends. 
  
 5.11 ACKNOWLEDGEMENT OF TERMS. The Company hereby represents and warrants to the Investor that: (i) it is voluntarily entering into this Agreement of its own freewill, (ii) it is not entering this Agreement under economic duress, (iii) the terms of this Agreement are reasonable and fair to the Company, and (iv) the Company has had independent legal counsel of its own choosing review this Agreement, advise the Company with respect to this Agreement, and represent the Company in connection with this Agreement.
  
 SECTION VI
 CONDITIONS OF THE COMPANY’S ELECTION TO SELL
  
 There is no obligation hereunder of the Company to issue and sell the Securities to the Investor. However, an election by the Company to issue and sell the Securities hereunder, from time to time as permitted hereunder, is further subject to the satisfaction, at or before each Closing Date, of each of the following conditions set forth below. These conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion. 
  
 6.1 The Investor shall have executed this Agreement and the Registration Rights Agreement and delivered the same to the Company. 
  
 6.2 The Investor shall have delivered to the Company a Put Settlement Sheet in the form attached here to as Exhibit C on the Put Notice Date. 
  
 6.3 No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this Agreement. 
  
 SECTION VII
 FURTHER CONDITIONS OF THE INVESTOR’S OBLIGATION TO PURCHASE
  
 The obligation of the Investor hereunder to purchase Securities is subject to the satisfaction, on or before each Closing Date, of each of the following conditions set forth below. 
  
  	 
	- 16 -
	 
 
	 

  
 7.1 The Company shall have executed the Registered Offering Transaction Documents and delivered the same to the Investor.
  
 7.2 The Common Stock shall be authorized for quotation on the Principal Market and trading in the Common Stock shall not have been suspended by the Principal Market or the SEC, at any time beginning on the date hereof and through and including the respective Closing Date (excluding suspensions of not more than one (1) Trading Day resulting from business announcements by the Company, provided that such suspensions occur prior to the Company’s delivery of the Put Notice related to such Closing). 
  
 7.3 The representations and warranties of the Company shall be true and correct in all material respects as of the date when made and as of the applicable Closing Date as though made at that time and the Company shall have materially performed, satisfied and complied with the covenants, agreements and conditions required by the Registered Offering Transaction Documents to be performed, satisfied or complied with by the Company on or before such Closing Date. The Investor may request an update as of such Closing Date regarding the representation contained in Section 4.3 . 
  
 7.4 The Company shall have executed and delivered to the Investor the certificates representing, or have executed electronic book-entry transfer of, the Securities (in such denominations as the Investor shall request) being purchased by the Investor at such Closing. 
  
 7.5 The board of directors of the Company shall have adopted resolutions consistent with Section 4.2(ii) (the “Resolutions”) and such Resolutions shall not have been materially amended or rescinded prior to such Closing Date. 
  
 7.6 No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this Agreement. 
  
 7.7 The Registration Statement shall be effective on each Closing Date and no stop order suspending the effectiveness of the Registration statement shall be in effect or to the Company’s knowledge shall be pending or threatened. Furthermore, on each Closing Date (i) neither the Company nor the Investor shall have received notice that the SEC has issued or intends to issue a stop order with respect to such Registration Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of such Registration Statement, either temporarily or permanently, or intends or has threatened to do so (unless the SEC’s concerns have been addressed), and (ii) no other suspension of the use or withdrawal of the effectiveness of such Registration Statement or related prospectus shall exist. 
  
 7.8 At the time of each Closing, the Registration Statement (including information or documents incorporated by reference therein) and any amendments or supplements thereto shall not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading or which would require public disclosure or an update supplement to the prospectus. 
  
 7.9 If applicable, the shareholders of the Company shall have approved the issuance of any Shares in excess of the Maximum Common Stock Issuance in accordance with Section 2.6 or the Company shall have obtained appropriate approval pursuant to the requirements of Texas law and the Company’s Articles of Incorporation and By-laws.
  
  	 
	- 17 -
	 
 
	 

  
 7.10 The conditions to such Closing set forth in Section 2.4 shall have been satisfied on or before such Closing Date.
  
 7.11 The Company shall have certified to the Investor the number of Shares of Common Stock outstanding when a Put Notice is given to the Investor. The Company’s delivery of a Put Notice to the Investor constitutes the Company’s certification of the existence of the necessary number of shares of Common Stock reserved for issuance.
  
 SECTION VIII
 TERMINATION
 This Agreement shall terminate upon any of the following events: 
  
  	  
	 i.
	 when the Investor has purchased an aggregate of Two Million Dollars ($2,000,000) in the Common Stock of the Company pursuant to this Agreement;

			
	  
	 ii.
	 on the date which is thirty-six (36) months after the Effective Date; or

			
	  
	 iii.
	 at such time that the Registration Statement is no longer in effect; or

			
	  
	 iv.
	 at any time at the election of the Company upon 15 days written notice.

  
 Any and all shares, or penalties, if any, due under this Agreement shall be immediately payable and due upon termination of this Agreement. 
  
 SECTION IX
 SUSPENSION
  
 This Agreement shall be suspended upon any of the following events, and shall remain suspended until such event is rectified:
  
  	  
	i.	The trading of the Common Stock is suspended by the SEC, the Principal Market or FINRA for a period of two (2) consecutive Trading Days during the Open Period; or,
	  
	  
	  

	  
	ii.	During the Open Period the Common Stock ceases to be registered under the 1934 Act or listed or traded on the Principal Market or the Registration Statement is no longer effective (except as permitted hereunder).

  
 Immediately upon the occurrence of one of the above-described events, the Company shall send written notice of such event to the Investor.
  
  	 
	- 18 -
	 
 
	 

  
 SECTION X
 MISCELLANEOUS
  
 10.1 LAW GOVERNING THIS AGREEMENT. This Agreement shall be governed by, and construed and interpreted in accordance with, the substantive laws of the Commonwealth of Puerto Rico without giving effect to any conflict of laws rule or principle that might require the application of the laws of another jurisdiction. Any dispute, claim, suit, action or other legal proceeding arising out of the transactions contemplated by this Agreement or the rights and obligations of each of the parties shall be brought only in a competent court in San Juan, Puerto Rico or in the federal courts of the United States of America located in San Juan, Puerto Rico. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The parties executing this Agreement and other agreements referred to herein or delivered in connection herewith agree to submit to the in personam jurisdiction of such courts. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Documents by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.
  
 10.2 LEGAL FEES; AND MISCELLANEOUS FEES. EXCEPT AS OTHERWISE SET FORTH IN THE Registered Offering Transaction Documents (including but not limited to Section 5 of the Registration Rights Agreement), each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. Any attorneys’ fees and expenses incurred by either the Company or the Investor in connection with the preparation, negotiation, execution and delivery of any amendments to this Agreement or relating to the enforcement of the rights of any party, after the occurrence of any breach of the terms of this Agreement by another party or any default by another party in respect of the transactions contemplated hereunder, shall be paid on demand by the party which breached the Agreement and/or defaulted, as the case may be. The Company shall pay all stamp and other taxes and duties levied in connection with the issuance of any Securities.
  
 10.3 COUNTERPARTS. This Agreement may be executed in any number of counterparts and by the different signatories hereto on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument. This Agreement may be executed by facsimile transmission, PDF, electronic signature or other similar electronic means with the same force and effect as if such signature page were an original thereof.
  
 10.4 HEADINGS; SINGULAR/PLURAL. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement. Whenever required by the context of this Agreement, the singular shall include the plural and masculine shall include the feminine. 
  
 10.5 SEVERABILITY. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. 
  
  	 
	- 19 -
	 
 
	 

  
 10.6 ENTIRE AGREEMENT; AMENDMENTS. This Agreement is the FINAL AGREEMENT between the Company and the Investor with respect to the terms and conditions set forth herein, and, the terms of this Agreement may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the Parties. 
  
 10.7 NOTICES. Any notices or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by electronic mail (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and email addresses for such communications shall be: 
  
  	 If to the Company:
	  
	 Indoor Harvest Corp.
 5300 East Freeway Suite A, Houston, TX 77020
 Attn: Annette Knebel, CAO
 Email: aknebel@indoorharvest.com

			  

	 If to the Investor:
	  
	 Tangiers Global, LLC
 Caribe Plaza Office Building 6th Floor, Palmeras St. #53
 San Juan, PR 00901 Email: admin@tangierscapital.com

  
 Each party shall provide five (5) business days prior written notice to the other party of any change in address or email address. 
  
 10.8 NO ASSIGNMENT. This Agreement may not be assigned.
  
 10.9 NO THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the parties hereto and is not for the benefit of, nor may any provision hereof be enforced by, any other person. 
  
 10.10 SURVIVAL. The representations and warranties of the Company and the Investor contained in Sections 3 and 4, the agreements and covenants set forth in Section 5 and this Section 11, shall survive each of the Closings and the termination of this Agreement. 
  
 10.11 PUBLICITY. The Company and the Investor shall consult with each other in issuing any press releases or otherwise making public statements with respect to the transactions contemplated hereby and no party shall issue any such press release or otherwise make any such public statement without the prior consent of the other party, which consent shall not be unreasonably withheld or delayed, except that no prior consent shall be required if such disclosure is required by law, as determined solely by the Company in consultation with its counsel. The Investor acknowledges that this Agreement and all or part of the Registered Offering Transaction Documents may be deemed to be “material contracts” as that term is defined by Item 601(b)(10) of Regulation S-K, and that the Company may therefore be required to file such documents as exhibits to reports or registration statements filed under the 1933 Act or the 1934 Act. The Investor further agrees that the status of such documents and materials as material contracts shall be determined solely by the Company, in consultation with its counsel. 
  
  	 
	- 20 -
	 
 
	 

  
 10.12 EXCLUSIVITY. The Company shall not pursue an equity line transaction similar to the transactions contemplated in this Agreement with any other person or entity until the earlier of (i) the Effective Date and (ii) termination of this Agreement in accordance with Section 8. 
  
 10.13 FURTHER ASSURANCES. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby. 
  
 10.14 NO STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party, as the parties mutually agree that each has had a full and fair opportunity to review this Agreement and seek the advice of counsel on it. 
  
 10.15 REMEDIES. The Investor shall have all rights and remedies set forth in this Agreement and the Registration Rights Agreement and all rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights which the Investor has by law. Any person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any default or breach of any provision of this Agreement, including the recovery of reasonable attorney’s fees and costs, and to exercise all other rights granted by law. 
  
 10.16 PAYMENT SET ASIDE. To the extent that the Company makes a payment or payments to the Investor hereunder or under the Registration Rights Agreement or the Investor enforces or exercises its rights hereunder or thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred. 
  
 10.17 COMMITMENT FEE. Upon the Execution Date of this Agreement, the Company shall be required to issue to the Purchaser a 10% $50,000 promissory note as a commitment fee (the “Commitment Fee Note”). The Commitment Fee Note will have a 7 month maturity. In the event that the S-1 is declared effective within 90 days following document execution, $15,000 will be automatically deducted from the balance of the Commitment Fee Note. In the event that the S-1 is declared effective within 135 days (but more than 90 days) following document execution, $7,500 will be automatically deducted from the balance of the Commitment Fee Note. The Company agrees that the issuance of the Commitment Fee Note is a material obligation and that the Commitment Fee Note is considered fully earned as of the Execution Date of this Agreement, regardless of whether or not the Company files the S-1 or is successful in having it deemed effective by the SEC.
  
  	 
	- 21 -
	 
 
	 

  
 SECTION XI
 NON-DISCLOSURE OF NON-PUBLIC INFORMATION
  
 The Company shall not disclose non-public information to the Investor, its advisors, or its representatives.
  
 Nothing in the Registered Offering Transaction Documents shall require or be deemed to require the Company to disclose non-public information to the Investor or its advisors or representatives, and the Company represents that it does not disseminate non-public information to any investors who purchase stock in the Company in a public offering, to money Managing Members or to securities analysts, provided, however, that notwithstanding anything herein to the contrary, the Company will, as hereinabove provided, immediately notify the advisors and representatives of the Investor and, if any, underwriters, of any event or the existence of any circumstance (without any obligation to disclose the specific event or circumstance) of which it becomes aware, constituting non-public information (whether or not requested of the Company specifically or generally during the course of due diligence by such persons or entities), which, if not disclosed in the prospectus included in the Registration Statement would cause such prospectus to include a material misstatement or to omit a material fact required to be stated therein in order to make the statements, therein, in light of the circumstances in which they were made, not misleading. Nothing contained in this Section 12 shall be construed to mean that such persons or entities other than the Investor (without the written consent of the Investor prior to disclosure of such information) may not obtain non-public information in the course of conducting due diligence in accordance with the terms of this Agreement and nothing herein shall prevent any such persons or entities from notifying the Company of their opinion that based on such due diligence by such persons or entities, that the Registration Statement contains an untrue statement of material fact or omits a material fact required to be stated in the Registration Statement or necessary to make the statements contained therein, in light of the circumstances in which they were made, not misleading. 
  
 SECTION XII
 ACKNOWLEDGEMENTS OF THE PARTIES
  
 Notwithstanding anything in this Agreement to the contrary, the parties hereto hereby acknowledge and agree to the following: (i) the Investor makes no representations or covenants that it will not engage in trading in the securities of the Company, other than the Investor will not short or pre-sell, either directly or indirectly through its affiliates, principals or advisors, the Common Stock at any time during the Open Period; (ii) the Company shall comply with its obligations under Section 5.8 in a timely manner; (iii) the Company has not and shall not provide material non-public information to the Investor unless prior thereto the Investor shall have executed a written agreement regarding the confidentiality and use of such information; and (iv) the Company understands and confirms that the Investor will be relying on the acknowledgements set forth in clauses (i) through (iii) above if the Investor effects any transactions in the securities of the Company. 
  
 [Signature Page to Follow.]
  
  	 
	- 22 -
	 
 
	

  
 Your signature on this Signature Page evidences your agreement to be bound by the terms and conditions of the Investment Agreement as of the date first written above. The undersigned signatory hereby certifies that he has read and understands the Investment Agreement, and the representations made by the undersigned in this Investment Agreement are true and accurate, and agrees to be bound by its terms. 
  
  	 	 TANGIERS GLOBAL, LLC
	
	 	 	 	 
		By:		
	  
	 Name: 
		 
	 	Title: 	 Managing Member
	 
	 	 	 	 
	  
	 INDOOR HARVEST CORP.
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ Annette Knebel
	  

	  
	 Name:
	 Annette Knebel
	  

	  
	 Title:
	 Chief Accounting Officer
	  

  
 [SIGNATURE PAGE OF INVESTMENT AGREEMENT]
  
  	 
	 
	 
 
	 

  
 LIST OF EXHIBITS
  
  	EXHIBIT A	Registration Rights Agreement
	  
	  

	EXHIBIT B 	Put Notice
	  
	  

	EXHIBIT C 	Put Settlement Sheet

  
  	 
	 
	 
 
	 

   
EXHIBIT A 
 
 REGISTRATION RIGHTS AGREEMENT
  
 See attached. 
  
  	 
	 
	 
 
	 

  
 EXHIBIT B
  
 FORM OF PUT NOTICE
  
 Date: 
  
 RE: Put Notice Number __ 
  
 Dear Mr.__________, 
  
 This is to inform you that as of today, Indoor Harvest Corp., a Texas corporation (the “Company”), hereby elects to exercise its right pursuant to the Investment Agreement to require Tangiers Global, LLC to purchase shares of its common stock. The Company hereby certifies that: 
  
 Put Amount in Shares__________. 
  
 The Pricing Period runs from _______________ until _______________. 
  
 The current number of shares of common stock issued and outstanding is: _________________.
  
 The number of shares currently available for resale on the S-1 is: ________________________.
  
 Regards, 
  
  	Indoor Harvest Corp.	
	 	 	 
	By:		
	  
	  
	  

	 Name: 
		 
	  
	  
	  

	Title: 		 

  
  	 
	 
	 
 
	 

  
 EXHIBIT C
  
 PUT SETTLEMENT SHEET
  
 Date: ________________
  
 Dear ________, 
  
 Pursuant to the Put given by Indoor Harvest Corp., a Texas corporation (the “Company”), to Tangiers Global, LLC (the “Investor”) on _________________, 201_, we are now submitting the purchase price for the shares of common stock.
  
 Purchase Price per Share _________________.
  
 Shares Being Purchased ___________________. 
  
 Total Purchase Price _____________________.
  
 Please have a certificate bearing no restrictive legend issued to the Investor immediately and sent via DWAC to the following account: 
  
 [INSERT]
  
 If not DWAC eligible, please send FedEx Priority Overnight to: 
  
 [INSERT ADDRESS]
  
 Once these shares are received by us, we will have the funds wired to the Company. 
  
 Regards, 
  
  	TANGIERS GLOBAL, LLC	
	 	 	 
	By:		
	  
	  
	  

	 Name: 
		 
	 		 
	Title: 	Managing Member	 

  
  	 
	 
	 
 
	 

  
  
 SCHEDULE 4.3
  
 See attached.

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